Technology Transfer Establishment


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General Awareness about Technology Transfer and establishment of TTU

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Technology Transfer Establishment

  1. 1. Technology Transfer Lorenzo De Michieli
  2. 2. Intro Benchmark Tech Transfer at IIT Technology Transfer
  3. 3. Intro
  4. 4. We are in the Knowledge Society No doubts:
  5. 5. The way to the competitiveness of a Nation: Be efficient in producing goods and services Be clever in producing new successful goods and services + Objective: To optimize the ratio quality / costs Objective: Create new value
  6. 6. TANGIBLES INTANGIBLES The components of a product are:
  7. 7. HIGH VALUE PRODUCTS, DIFFICULT TO IMITATE LOW VALUE PRODUCTS, EASY TO IMITATE HIGH Difficulty of copying LOW Creation of added value LOW HIGH Products to achieve
  8. 8. <ul><li>knowledge factory </li></ul><ul><li>education factory </li></ul><ul><li>technology transfer factory </li></ul><ul><li>territorial development factory </li></ul>The Mission of the Universities is changing
  9. 9. Causes: - General reduction in research funding mechanisms - Gov. pressure to extract value from research - Regional development mission - Immediate commercial value of results in certain fields (eg. chemicals, biotech) Consequences: - A more entrepreneurial orientation (spin-off, patents, regional development, TTOs, etc.) Evolution of University Mission
  10. 10. INNOVATION is “ the successful production, assimilation and exploitation of novelty in the economic and social spheres ” 1 1 Innovation Communication 2003, COM(2003) 112 Research generates NEW KNOWLEDGE BUT Without Technology Transfer, Finance, Industry and Policies Research ≠ Innovation Research and Innovation
  11. 11. The Innovation chain RESEARCH INDUSTRY POLICY SOCIETY FINANCE Enhancing Technology Diffusion Responding to Globalisation Promoting Networking and Clustering Building an Innovation Culture Improving Financial support programmes Innovation Policy Instruments to protect IP Instruments to transfer Technology Instrument to create new Business Training activities Seed Financing Start up financing Venture Capitals for Expansion Financing Favourable taxation level Diffusion of innovation management techniques in SMEs More investment in Research, R&D Enforce links with University/LPRIs Understand the Innovation Accept Innovation Contribute to the Innovation Process “ The EU can only become comprehensively innovative if all actors become involved”
  12. 12. Benchmarks
  13. 13. All institutions rely heavily on public funds, increasingly granted competitively to specific research programs Research funding models Donations/endowments (Scripps) Private backing of research institutions as a social responsibility initiative Private support with an exploitation agreement (option) over possible future results funding sources Funds management approach capacity funding project funding public funding private funding Contract research Strong link with industry; research based on private sponsorships to specific programs (TNO model) Public projects Strong link with Government; research influenced by public competitive funding programs (MIT model) Institutional funds Maximum autonomy –Scientific direction set independently by the institute (Max Planck model) FUNDING Scripps Caltech MIT Fraunhofer TNO LTIs Karolinska Salk VTT MD Anderson Max Planck
  14. 14. All institutions rely heavily on public funds, increasingly granted competitively to specific research programs Funding sources: detail by research organization FUNDING 100% Private contract research, own income and donations Public project funding (rational agencies, EU) Institutional funds (basic funds, revenues from endowment) other 4% 1) Assumptions: net of tuition and students financial aid; return on endowment assumed at the average value of the past years (23%); donations allocated to education and research based on the students to scientific staff ratio 100% 100% 100% 100% 100% 100% other 4% 100% 100% 100% 100% 100% Public vs. private financing Institutional vs. competitive funding EU organizations US organizations EU organizations US organizations Public Private Institutional Competitive BACKUP
  15. 15. Technology transfer has not a significant economic impact and produces returns only in the long term Technology transfer: economics Technology transfer accounts for a minimum share of total budget… 26 (2,8%) 24 (1,4%) 17 (1,4%) Revenues (m EUR and % of total budget;2003) <ul><li>Technology transfer income accounts for a minimum share of total budget </li></ul><ul><li>In most cases it does not even exceed its costs 1) </li></ul><ul><ul><li>2.500 ÷5.500 for provisional application </li></ul></ul><ul><ul><li>3.000÷50.000 of additional costs until grant (depending on number of countries) </li></ul></ul><ul><ul><li>up to 3.000 per year for maintaining patent </li></ul></ul><ul><li>Revenues are highly dependent on few important inventions (e.g. at Fraunhofer 90% comes from the mp3 technology) </li></ul>… and produces significant economic results in the long term Revenues time distribution (% of total revenues) patent lifecycle (year) <ul><li>Revenues generation is a long term process –first revenues are normally generated after 5 ÷ 10 years from invention </li></ul><ul><li>At Max Planck it took 10 years from establishment to become a profitable function </li></ul>1% 45% 31% 22% 1) average costs for patent application at EPO (EUR) TECHNOLOGY TRANSFER
  16. 16. Technology transfer – benchmarking evidences TECHNOLOGY TRANSFER <ul><li>Technology transfer has not a significant economic impact and produces returns only in the long term </li></ul><ul><li>Nevertheless, technology transfer plays a fundamental role in fulfilling the mission, motivating people, attracting industry and creating the basis for innovation </li></ul><ul><li>Technology transfer is normally managed by few qualified professionals – scale varies with the number of different technologies </li></ul><ul><li>Flexibility in employment policies is a key success factor to encourage spin offs </li></ul>
  17. 17. Nevertheless, technology transfer plays an important role in fulfilling the mission, motivating people and attracting industry <ul><li>Fulfill the mission </li></ul><ul><li>The diffusion of the developed intellectual property and the fostering of new ventures (incubator) is often an explicit mission of a research organization </li></ul><ul><li>Personnel motivation </li></ul><ul><li>A share of the licensing fees is normally given to the inventor (up to 30%) and any left-over after covering costs is added to the institute finances </li></ul><ul><li>Attract private capitals </li></ul><ul><li>Indicators such as the number of patents are often used to evaluate the scientific performance of an institution and to select research partners </li></ul><ul><li>Spin offs cultivate industry networks and provide opportunities for further sponsored research (e.g. 5% of industry sponsorships and 10% of patents licensing fees at Fraunhofer come from its spin offs) </li></ul>Technology transfer: policy and rationale Patent policy: revenue distribution Rationale for technology transfer 23,3 100% 20% 10% 70% 1/3 to the inventor 1/3 to the inventor dept. 1/3 to the institution (data from MIT –policy applies to all institutions) TECHNOLOGY TRANSFER
  18. 18. Technology transfer is normally managed by few qualified profes-sionals – scale varies with the number of different technologies Technology transfer organization Managing Director Patent & Licensing managers (5) Agreements and Finances (2) Start-ups (2) Analyst (1) Patents (2) Administration and Organization (5) External patent attorneys Max Planck <ul><li>Former scientists or industry technical staff </li></ul><ul><li>1 economist and 1 lawyer </li></ul><ul><li>2 economists </li></ul><ul><li>Administrative staff </li></ul><ul><li>Administrative staff and webmaster </li></ul>Key issues Advisory Board Technology transfer: organizational models (e.g. Max Planck Garching Innovation) <ul><li>Technology transfer organization </li></ul><ul><ul><li>typically a centralized function, due to scale effects </li></ul></ul><ul><ul><li>managed either as an internal staff function or as an external independent subsidiary, where legal constraints prohibit trade activities </li></ul></ul><ul><ul><li>alternative solutions are implemented in smaller organizations and include agencies with partners and outsourcing </li></ul></ul><ul><li>Office size </li></ul><ul><ul><li>typically managed by small groups (10 ÷30 people) –a minimum scale is necessary (5 ÷6 persons) </li></ul></ul><ul><ul><li>scale depends on the number of different scientific fields and, to a lower extent, on the organization budget </li></ul></ul><ul><ul><li>scale is hardly affected by the number of patents managed (e.g. MIT: 27 people/240 patent applications; Max Planck: 17 people/80 patent applications) </li></ul></ul><ul><li>Different competences are needed </li></ul><ul><ul><li>technical/industry competences: each case is normally under full responsibility of a competent officer –all relevant technical and industry knowledge is needed </li></ul></ul><ul><ul><li>financial competences for economic evaluations </li></ul></ul><ul><ul><li>legal competences, often complemented by external specialized patent attorneys </li></ul></ul><ul><li>Technology transfer assessment is typically based on the number of technologies commercialized (licenses/ patent) </li></ul>TECHNOLOGY TRANSFER
  19. 19. Technology Transfer at IIT
  20. 20. Initial conditions <ul><li>Departments focused on highly competitive scientific sectors </li></ul><ul><li>Scientists and engineers with industrial background working together </li></ul><ul><li>IIT Mission </li></ul><ul><li>ITT Governing board composition </li></ul><ul><li>Strong link with National Institutions </li></ul><ul><li>High expectations (low resistance to TT) </li></ul>
  21. 21. <ul><li>Consulting </li></ul><ul><li>Graduating students (“moving heads”) </li></ul><ul><li>Faculty moving on (“moving heads”) </li></ul><ul><li>Collaborative research </li></ul><ul><li>Patenting and licensing </li></ul><ul><li>Sponsored Research </li></ul><ul><li>Outreach </li></ul><ul><li>Spin-off companies </li></ul>Ways ‘Knowledge’ is transferred TTO
  22. 22. TTO: six areas of intervention <ul><li>IPR (Intellectual Property Rights) </li></ul><ul><li>Licensing </li></ul><ul><li>Spin Off </li></ul><ul><li>Communication and Training </li></ul><ul><li>R&D Support Actions </li></ul><ul><li>Research and Networking </li></ul>
  23. 23. 1) IPR – Intellectual Property Rights <ul><li>Monitoring and evaluating research results in their applicable features </li></ul><ul><li>Examining invention disclosures </li></ul><ul><li>Protecting intellectual property in contracts and in the framework of Italian and European projects </li></ul><ul><li>Co-operation with other Institutions and Universities for joint management and promotion of IP </li></ul><ul><li>Management of IIT patent procedure </li></ul><ul><li>Management of IIT patent portfolio </li></ul><ul><li>Patent Search service </li></ul>
  24. 24. 2) Licensing <ul><li>Research contracts (NDA, Option, Licence, Assignment) </li></ul><ul><li>Evaluation of technologies and scouting </li></ul><ul><li>Definition of the exploitation strategy </li></ul><ul><li>Marketing of technologies </li></ul><ul><li>Negotiation with industry </li></ul>
  25. 25. <ul><li>Management of IIT Spin Off programme </li></ul><ul><li>Business planning </li></ul><ul><li>Market analysis </li></ul><ul><li>Management of conflicts of interest </li></ul><ul><li>Networking with VC, BA, private/public investors </li></ul>3) Spin Off
  26. 26. 3) Spin Off, focus on support actions <ul><li>Use of IIT labs and facilities </li></ul><ul><li>Technical and economic training and tutoring </li></ul><ul><li>Exploitation of IIT intellectual property and know-how </li></ul><ul><li>Introduction to market and networking </li></ul>
  27. 27. <ul><li>Publications </li></ul><ul><li>Promotion of Patented Technologies (Congresses, Exhibitions, etc.) </li></ul><ul><li>Seminars and courses within the scientific community </li></ul><ul><li>Reports, Manuals </li></ul><ul><li>Course on Management of Research directed to PhD students </li></ul>4) Communication and Training <ul><li>IIT open day for industries </li></ul>
  28. 28. 5) R&D Support Actions <ul><li>Encouraging the exploitation of technologies </li></ul><ul><li>Allowing the proof of concept </li></ul><ul><li>Give young researcher the chance to manage a small applied project </li></ul><ul><li>Reduce the gap between Industry demand and IIT offer </li></ul><ul><li>Stimulate circulation of expertise and idea with industry </li></ul>Objectives:
  29. 29. <ul><li>Seed Projects </li></ul><ul><li>R&D Projects </li></ul>Aim: characterization, proof of concept, a step forward towards application Outcome: prototype Budget: Small (30-50 Keuro) PI: young scientists (post doc, team leader) Funds: IIT Aim: very applied R&D project together with Industry Outcome: patent, solution of industrial problem, industrial technology Budget: 150 - 400 Keuro PI: team leaders, senior scientists Funds: external funds (fund rising required) <ul><li>Industry Joint Labs </li></ul>5) R&D Support Actions <ul><li>Industrial Liaison Program </li></ul>
  30. 30. 6) Study and Networking Interaction with third parties Industry (R&D co-operations, IP exploitation, joint ventures) Universities/LPRIs (Research, TTOs cooperation, strategic alliances) Financial organisation (Joint ventures, joint programs of activities) Public authorities (regional, national and international level) allows <ul><li>Professional development (training , staff exchange, international collaborations) </li></ul><ul><li>Policy development (definition of effective policies, common policies) </li></ul><ul><li>Lobbying (influencing national and international policies, defining common strategies) </li></ul><ul><li>Common evaluation criteria (monitor and compare the efficiency of the TTO) </li></ul><ul><li>New knowledge (definition of best practices, study of innovation process from </li></ul><ul><li>a privileged point of view) </li></ul>
  31. 31. <ul><li>4 units: </li></ul><ul><li>1 economist (business planning) </li></ul><ul><li>1 IP layer (contracts) </li></ul><ul><li>2 marketing/networking (senior) </li></ul>Organisation Technology Transfer Office, composition and skills (provisional 2011) <ul><li>3 units: </li></ul><ul><li>2 Seniors </li></ul><ul><li>1 junior </li></ul>1 unit: TTO manager + TTO staff
  32. 32. ‘ It’s not about money – money comes and goes. It’s not about rankings among universities or technology transfer offices – rankings go up and down. It’s not about the immediate benefits or short-term gains. Technology transfer is about taking risks and making a difference. It’s about investing in early stage, often unproven, innovations to encourage industry to develop products that will contribute to a brighter future for generations.’ OTL Stanford