Technology Entrepreneurship: Creating Versus Capturing Value Presentation to “Entrepreneurship 101” MaRS, November 21, 2006 Ajay Agrawal Rotman School of Management

Why NOT raise venture capital?

Why NOT file for patent protection?

Why NOT build and sell your product?

Examples AGI International (Seattle) Underwater, non-destructive testing equipment Motion Metrics (Vancouver) Missing tooth detection system Xerox (Stamford) Photocopiers Google (Mountain View) Online search Ajanta Pharma (Mumbai) Pharmaceutical products YouTube (San Bruno) Share video content online

AGI International (Seattle)

Underwater, non-destructive testing equipment

Motion Metrics (Vancouver)

Missing tooth detection system

Xerox (Stamford)

Photocopiers

Google (Mountain View)

Online search

Ajanta Pharma (Mumbai)

Pharmaceutical products

YouTube (San Bruno)

Share video content online

The Case of D-Wave “D-Wave's mission is to make available the vast power and speed of quantum computers to government and industrial customers”

“D-Wave's mission is to make available the vast power and speed of quantum computers to government and industrial customers”

Company History D-Wave was spun-out of the University of British Columbia (UBC) in 1999. The company's mission since inception has been to commercialize superconductor-based quantum computer processors. Building a commercial scale quantum computer processor is an extremely difficult task. In the early days of the company, the D-Wave strategy was to enter into collaborative partnerships with world-leading researchers with access to significant capital infrastructure, while retaining all intellectual property developed. Each institution in this research network was responsible for delivering some critical part of a future commercial processor. Partners included theoretical physicists, chemists, electrical engineers, cryogenics experts, applied physicists, mathematicians and computer scientists. These partnerships were managed and led by D-Wave. All results were systematically reviewed, catalogued and placed in the context of state-of-the-art developments both internal and external to the company's effort. The objective of this work was to design a quantum computer processor architecture for commercial use. Only designs that could be built with limited resources, in the short term, and where a significant market opportunity could clearly be elucidated, were considered. In November of 2004, a design was proposed that met these constraints. Today, D-Wave is exclusively focused on the development and commercialization of supercomputing systems built around this processor.

D-Wave was spun-out of the University of British Columbia (UBC) in 1999. The company's mission since inception has been to commercialize superconductor-based quantum computer processors. Building a commercial scale quantum computer processor is an extremely difficult task. In the early days of the company, the D-Wave strategy was to enter into collaborative partnerships with world-leading researchers with access to significant capital infrastructure, while retaining all intellectual property developed. Each institution in this research network was responsible for delivering some critical part of a future commercial processor. Partners included theoretical physicists, chemists, electrical engineers, cryogenics experts, applied physicists, mathematicians and computer scientists. These partnerships were managed and led by D-Wave. All results were systematically reviewed, catalogued and placed in the context of state-of-the-art developments both internal and external to the company's effort. The objective of this work was to design a quantum computer processor architecture for commercial use. Only designs that could be built with limited resources, in the short term, and where a significant market opportunity could clearly be elucidated, were considered. In November of 2004, a design was proposed that met these constraints. Today, D-Wave is exclusively focused on the development and commercialization of supercomputing systems built around this processor.

Factors to Consider Revenue model: sell product, license product, sell service using product, other? Intellectual property: patent, secrecy, publicly disseminate? Industry structure: concentration of buyers, concentration of sellers? Competition: existing, future, substitutes? Complementary products/services? Government regulation?

Revenue model: sell product, license product, sell service using product, other?

Intellectual property: patent, secrecy, publicly disseminate?

Industry structure: concentration of buyers, concentration of sellers?

Competition: existing, future, substitutes?

Complementary products/services?

Government regulation?

Wednesday, March 7, Rotman School Founder – Dr. Geordie Rose Chairman – Haig Farris [email_address]

Wednesday, March 7, Rotman School

Founder – Dr. Geordie Rose

Chairman – Haig Farris

[email_address]