Introduction to technology commercialization
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Introduction to technology commercialization

on

  • 7,098 views

Within universities and research institutions there are no shortage of good ideas; but not all of those ideas make commercial sense. In this lecture, we explore what makes a technology worthwhile ...

Within universities and research institutions there are no shortage of good ideas; but not all of those ideas make commercial sense. In this lecture, we explore what makes a technology worthwhile commercializing. We also touch on some of the lessons we can take from the university setting and apply to any start-up technology.

Speaker: Raphael Ronen, Commercialization Manager, The Innovations Group (TIG)

Part of the CIBC Presents Entrepreneurship 101 MaRS event series.

Read more on this event and catch the session video here: http://www.marsdd.com/Events/Event-Calendar/Ent101/2008/intro-tech-companies-10222008.html

Statistics

Views

Total Views
7,098
Views on SlideShare
7,014
Embed Views
84

Actions

Likes
1
Downloads
331
Comments
0

5 Embeds 84

http://blog.marsdd.com 37
http://www.marsdd.com 31
http://www.slideshare.net 13
http://paper.li 2
http://www.slideee.com 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Introduction to technology commercialization Presentation Transcript

  • 1. Introduction to technology ` commercialization Presented by: Raphael Ronen Commercialization Manager -The Innovations Group University of Toronto raphael.ronen@utoronto.ca 22 October 2008
  • 2. “At TIG, we bring together researchers and businesses to capitalize on the ideas developed at the University of Toronto and the hospitals affiliated with the university, where more than $2 million worth of research is conducted daily. . .” -Tim McTiernan
  • 3. Research or ?? Idea Commercial Potential? Development Development Technology Business Value established -financing -licensing
  • 4. Tech Transfer •  Assess Commercial Potential? •  Protect (patent) Business •  Funding Development •  Business Plan •  Marketing Value established -financing •  License / Start-up -licensing
  • 5. Outline •  Assessment –  Understand your product/company’s strengths/limitations •  Lessons learned from commercializing from an academic armchair –  Start-up versus License –  Funding/Financing –  Ownership
  • 6. Technology Commercialization Evaluation •  Intellectual Property Factors •  Technology Factors •  Market Factors •  Team Factors
  • 7. Intellectual Property Background •  Patents . . . also copyright, trade secrets, trademarks •  Principle: –  Reward to disclose – 20 year monopoly where right to exclude everyone else –  Greater good: Everyone can practice afterwards
  • 8. Why Patent •  Development Costs Competitive –  Pharma: $500M-$1.2B Advantage –  Device: $50M-$160M •  Development Time Invest in R&D –  Therapeutic: 8-15 years –  Device: 3-6 years –  Recoup costs R&D / Approvals Revenue Patent First Sale Patent expiry
  • 9. Patent Factor Evaluation •  Invention has protectable IP –  Novelty (i.e. new and not disclosed) –  Non-obviousness –  Utility •  There is freedom to practice the IP •  IP is defensible and infringement detectable
  • 10. Patent costs and timelines Office $10-12k US Actions $25k $$ PCT 18 months CAN EP Issuance 1 yr JP +$50k Provisional Patent $2-4k Abandon
  • 11. Technology Commercialization Evaluation •  Intellectual Property Factors •  Technology Factors •  Market Factors •  Team Factors
  • 12. Technology Factors •  Scientific basis understood •  Scientific data is thorough •  Technology is well developed •  Team has product development capabilities IS IT REAL – WILL IT WORK? Value in developed technology
  • 13. Micro-CT System •  Scientific basis understood •  Scientific data is thorough •  Technology is well developed •  Team has product development capabilities
  • 14. Technology Commercialization Evaluation •  Intellectual Property Factors •  Technology Factors •  Market Factors •  Team Factors
  • 15. Market Factors •  Need is well defined •  Product addresses the need •  Market is large and growing •  Competition and barriers are low •  Time to market is short •  Profit margin of product is high •  Market receptors can be easily identified •  Investment or funding can be easily obtained
  • 16. Example •  Need is well defined Technology Commercialization •  Product addresses the need Evaluation Market is large and •  growing  •  Intellectual Property Factors •  Competition and barriers  Technology Factors •  are low •  Time to market is short  Market Factors •  •  Profit margin of product •  Team Factors is high •  Market receptors can be easily identified •  Investment or funding can be easily obtained
  • 17.  Need is well defined ? Product addresses the need Technology Commercialization  Market is large and growing Evaluation  Competition and barriers  Intellectual Property Factors •  are low  Technology Factors to market is short •   Time •  Market Factors  high margin of product is  Profit Multi-element Transducer •  Team Factors  Market receptors can be Bladder Urethra easily identified Heating Pattern Thermal Damage  Investment or funding can Boundary be easily obtained Rectal Wall Cooling Balloon
  • 18. Technology Commercialization Evaluation •  Intellectual Property Factors •  Technology Factors •  Market Factors •  Team Factors
  • 19. Team Factors •  Team has product development capabilities •  Team has time and is willing to support •  Team has realistic expectations •  Team has commercialization experience
  • 20. Team Factors •  Team has product development capabilities •  Team has time and is willing to support •  Team has realistic expectations •  Team has commercialization experience •  Team is reasonable, ethical, can work well together and deliver
  • 21. Technology Commercialization Evaluation Idea •  Intellectual Property Factors •  Technology Factors Commercial •  Market Factors Potential? •  Team Factors Understand your strengths, understand your weaknesses and plan accordingly
  • 22. License versus Spin-Off
  • 23. License •  “Sell” technology to an established company •  Return: –  royalty paid based upon sales attributable to IP (a percentage of net sales) –  Repayment of patent costs –  Milestones – if license is exclusive then minimum royalties typically apply as well as development milestones (especially in drug development.)
  • 24. Spin-Off Create a new company •  Build: •  Return: –  Team –  IPO –  Product –  Acquired –  Sales –  Dividends –  Financing
  • 25. Licensing Considerations •  Good Licensee fit: Can Leverage development, sales and marketing capabilities of an established company •  Add-on technology •  Time and risk constrictions •  Willing to pass control (and responsibility) of your technology
  • 26. Spin-Off Considerations •  Lack of suitable receptor capacity (licensee) for IP •  Platform technology with solid IP potential for additional synergistic IP •  Potential to be a multi-million dollar public company •  Committed team with long term perspective •  Funding and management can be attracted (team) •  Potential return
  • 27. Spin-off Company •  Belief that you can advance the technology better than another company •  Spin-Off’s are time consuming, risky, and take up a lot of time that may or may not, be better spent on licensing the IP •  Have potential for big upside under right circumstances. •  Decision to do spin-off needs careful consideration and commitment from all parties involved.
  • 28. Industry Need •  Some companies and sectors not well suited to generating new lines of business and divisions; others have sophisticated in-licensing experience •  Large companies sometimes look to M&A (Mergers and Acquisitions) as an alternative. •  Companies will pay premium for small companies that are synergistic with their business mission.
  • 29. It takes 10 times more time to manage a spin-off than it does a licensing transaction
  • 30. License vs. Start-up Summary License Start-Up Good fit with company Platform technology Add on No good licensee  Less effort  Under your control  In hands of  Higher potential experienced people returns  Chance of success  Lesscontrol  Time consuming  Lower potential returns  Risk of failure
  • 31. Early stage funding •  Government (Check with your TTO) –  NSERC I2I –  CIHR POP –  OCE market readiness –  HTX –  Accelerator Funds –  IRAP –  Next Generation of Jobs (MRI) •  3 F’s (friends, family and fools) •  Angel / VC funds
  • 32. Returns to the financiers •  Government •  Money –  Job creation •  Tax credits GIFT –  Training of HQP –  Return to region •  Angel / VC •  Money –  Multiples of their investment (5-10x) •  Guidance NEGOTIATION –  Tangible exit •  Contacts
  • 33. Ownership and rewards Who owns the intellectual property? •  If you work for a company  Company –  Might get a reward recognition-$1000 per patent •  If you just left a company/university  Be careful –  Developed (or appeared to be developed) from work done while Clear ownership is needed before at the company  ~company owns investors will fund! –  Agreements (confidentiality, non-competition) •  If you work for a university  varied –  You own / University owns / Jointly own (talk to your TTO) –  Reward: 33%-75% of the revenue •  If you work for a university on research funded by a company  company probably has some rights
  • 34. What TTOs do •  Pay to Protect IP – patents, trademarks, copyrights. •  Assist in the developing of Business Plans and commercialization strategy. •  Assist in getting additional grant funding to further develop IP (sometimes mandatory that the technology transfer office is involved NSERC –I2I). •  Create start-up company when appropriate vehicle for commercialization. •  Assist in raising financing for company. •  Negotiate agreements with licensees.
  • 35. Recurring Ptifalls and Themes •  Overestimating the science/technology and one’s capabilities –  Lack of realism regarding the actual stage of development of the science/technology (“the next Google”) –  Someone else is probably developing the same technology in their basement •  Poor understanding of the customer and his/her value chain –  Proactive ignorance of challenges involved in developing and realizing value •  Disconnect between business and the science –  Underweighting of importance of demonstrating progressive commercial achievement
  • 36. Questions