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RESEARCH COMERCIALIZATION MODEL
Throughout history, scientific breakthroughs have served as the foundation for progress, wealth
generation and economic growth. However, the achievements of science by themselves do not
generate wealthorpusheconomies forward; these are a consequence of the proliferation of products
and services generated as a result of the application of scientific breakthroughs or technological
inventions through research commercialization.
The scientificand researchcapabilitiesof acountry couldbe the engine forknowledge-based economic
growth,providedthatthe culture of the institutions for scientific research is tilted towards responding
to industry demand, incentivising the spirit of commercialization of research outputs and of fostering
technological entrepreneurship among scientists.
Research commercialization – by which is meant the process of transforming cutting edge scientific
conceptsand research outputs into precise specification and marketing requirements for products (or
services) that can be manufactured, replicated and sold -- is conditioned upon the three interlinked
elements: first (and foremost), an interactive dialogue and mission-oriented collaboration between
research and industry; second, a research and innovation conductive intellectual property rights (IPR)
regime thatthat balancesthe rightsof inventor-research teams, these of the scientific institution, and
the rights of the commercial companies participating in collaborative research programs; and lastly,
transparent and appropriate incentives for the commercialization of science and research outputs.
Commercialization programs that do not address and emphasize these three crucial elements cannot
effectively capitalize on available research capabilities.
Other key ingredients of successful research commercialization are an economic environment that
constantlyincentivizesthe knowledge generation sector and the existence of professionally-managed
bodies engaged in the commercialization of research outputs.
A supply-pushapproach to research commercialization, and by this is meant commercialization driven
by researchers (for example through IP licensing), is a model predominant countries with well -
established ties and collaboration between the research and industry worlds. This approach alone
wouldnotisyieldthe desiredresultsinacountrywhere researchinstitutions do not benefit from close
and interactive relationswithindustryenterprises.1 Insuchcasesthe approach could be augmented by
combining the supply-push with the market-pull (or demand-pull) approach i.e., promoting contract
research driven by the industry.
A platform that combines both approaches is needed not only to enhance the revenue inflow to
research institutions, but also to spur the much needed refocusing of research to respond to industry
demand. A model that forges a dialogue between research and industry would also need to enforce
clearuniformandsimple rulesonIPmanagementandIPrevenue sharing;thisisparamount to instilling
a culture of mutually beneficial collaboration between industry enterprises and research institutions.
1 Bulgaria applies thismodel.It was very successful prior to 1989,as scientific institutes were established to serve
the industry and their research outputs were dedicated to the needs of the industrial enterprises.Theinstitutes
were in very closecollaboration with the industrial enterprises asthey were formally attached to the enterprises
and were funded by them. With the elimination of this model of research-industry collaboration,the“supply push”
approach for research commercialization seized to yield the expected results.

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The transition to a knowledge-based economy is essentially intertwined with the development of a
researchcommercializationecosystemasthe processof researchcommercialization includes a number
of steps that depend on the dialogue between researchers and enterprises working towards the
transformationof researchoutputsinto marketable products and services, and the implementation of
an uniform,transparentandpredictableIPR regime. Ina broadersense,the researchcommercialization
process starts with the idea generation and product definition stages; moves through the steps of
concept screening and evaluation of the intellectual property that would be generated; includes a
preliminary marketing and market analysis of the resulting product or services; the key step of
developingaprototype andtestingit;andfinally arrivesatthe actual commercialization - implemented
though IP licensing, product development, or establishing a spin-off enterprise dedicated to
transforming a research output into a marketable product or service.
Review of research outputs andindustrydemand
The first action in establishing the VSTG platform will be to conduct a full review and develop an
inventoryof pastandcurrent researchoutputs(IPassetreview)toidentifywhattechnologies, scientific
expertiseandinventionsexistand which have the greatest prospect for commercial success. Based on
the informationgatheredinthe reviewprocess,the companythatmanagesthe VSTG platform (i.e., the
VSTG manager) will conductpatentanalytics(i.e.,patentlandscaping, patent mapping, patent citations
analysis, patent family cluster analysis) using available modern databases and IP data tools and will
create an IP portfolio.
The reviewwill alsohelpcatalogexistinginventionsandtechnologiesbasedontheirindustryrelevance,
whichinturn will allowidentifyingpotential industry partners. The review will also try to evaluate the
strengths and the shortcomings of the resulting technologies in order to define actions needed to
overcome the notedweaknessesoralternativelywhatisneeded to redesign the technology for a more
lucrative market application.
Additionally, the VSTG manager will also conduct patent filing, marketing and offer IP licensing
recommendationsafterassessingthe patentabilityandcommercial value of disclosed research output.
The VSTG manager will advise scientists and researchers on the complex processes involved in IP
protectionandtechnologycommercializationandwill workcloselywiththemtoencourage disclosureof
research outputs and inventions.
The VSTG manager will also develop and deliver education and training programs to researchers on
technology management and commercialization for researchers to foster spin-offs and start-ups, and
will promote technology transfer awareness amongst researchers.
Simultaneously, the VSTG manager will survey the research initiatives and the in-house research
capabilities of the local industry, including their needs for knowledge-based solutions from scientific
institutions(i.e.,performanentrepreneurial discoverysurveyof local industryenterprises). This review
will alsosurveythe capacityof the industrial enterprises for change and will provide a snap-shot of the
attitudesof the researchmanagerswithinenterprises. Thisprocesswill helpidentifypromising areas of
future collaborative research and the industry champions for such collaboration.
Throughthese tworeviewsthe VSTGmanagerwill gainadeepunderstanding of available IP assets, the
industry dynamics, possible future market trends and most importantly the potential value of the
researchoutputsandtechnologiesderivedfromthem. Thisinformation will help the VSTG manager to
determine the pathof commercializationof eachavailable IP asset, namely: whether there is potential
for licensing the technology resulting from the research and which is the most appropriate industry
partner, or alternatively whether the commercial value of the technology resulting from the research

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would likely attract the funding and resources needed to create a start-up company to bring the
technology to the market.
The more common commercialization path will be IP licensing to appropriate industry partners. The
emergence of start-upsthatmarket technologies resulting from research activities will depend on the
value of the IP andits commercial applicability.If the IPvalue andmarketforitjustifysuchdirection,the
VSTG manager will guide the inventor-entrepreneurs through all aspects of the start-up creation,
includingteambuilding,raisingof needed capital, business planning etc. The equity share of the VSTG
manager in the accelerated or escalated start-ups will be based on the internal rules of the research
institution.
Commercialization
The VSTG managerwill identify research outputs and inventions for commercialization and will match
these with industry enterprises locally and internationally that have the expertise, resources, and
business networks to take advantage of the resulting technologies. The VSTG manager will take
ownership of the entire process starting from identifying industry leads, to negotiating IP licenses on
behalf of the research institution, including royalty rates, up-front payments, business terms and
conditions. While identifying the most appropriate licensing partner, the VSTG manager will take into
account the company’s capability to invest in product and technical development, to advance the
technology to make it market and customer ready; the company’s capacity to provide appropriate
managementand todedicate qualified technical personnel to furtherdevelopthe technology,aswell as
the company’scapacityto involve the researchersthatdevelopedthe technologyinthe firstplace inthe
product development process.
Contract research
Another main activity of the VSTG manager will be to connect industry enterprises working on certain
product development direction with scientists and researchers with expertise in this area and will
negotiate contractresearchagreementswithfairandbalancedIPprotection terms. The VSTG manager
Initial review
•Is the research output an invention and can itbe IPRprotected?
• Are there legal barriers to its commercialization?
•Is itworth obtainingIP protection?
• Is there potential market for the invention?
Marketing
•What arethe potential markets for it?
•What is this technology worth?
•What arethe deal structures of the industry that may be interested?
•How to communicate the valueof the invention/ technology to
potential buyers?
Industry
partners
•Is the company a good partner for this technology?
•Is the company stableand capableof extablishinga long-term
relationship with the research institution?
•Is the company able to execute the project and implement the
technology?
•Will thecompany involvethe researchers in the implementation
process?

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will scoutforindustry partnersandwill secure and favorable remuneration for the researchers and the
best possible deal for the research institution.
The VSTG managerwill be activelyengagedinproductdevelopmentactivities:itwill assemble teams of
technical specialists,scientists,engineersandexpertsforindustry-commissioned product development
activities. The VSTG manager will negotiate memorandums of understanding to promote common
research initiatives and will also help raise the necessary funding from industry partners.
Involvingthe Diasporainthe evaluationofresearch proposals
The VSTG managerwill create a networkof Bulgarianscientistsandhighly-qualified professionals living
abroad to leverage theirknowledge,skillsandexperience notonlytoconnectBulgarianresearchers and
innovative companies in Bulgaria to global knowledge networks, but also in crucial activities of the
platform, such as reviewing research project proposals and participating in evaluation committees.
Relatedefforts will not be dedicated to returning members of the Diaspora to Bulgaria, but to involve
them in the activities of the VSTG platform from abroad.
The VSTG manager will use the necessary IT solutions to ensure that these tasks can be implemented
remotely. For example, the screening of research proposals will be submitted online and screened
online by members of the evaluation committee, many of which would be eminent Bulgarian
researchersresiding abroad. The IT solution would allow a “blind” assignment of the proposals to the
members of the evaluation committee, so that evaluators, regardless whether abroad or in Bulgaria
would not know the composition of the research team advancing the proposal, nor will the research
teamknowwhothe evaluatorsare. The online screening of proposals will eliminate opportunities for
capture and undue influence inthe evaluation process, but more importantly would allow broadening
significantly the pool of potential evaluators by involving Bulgarian scientists and managers living
outside of the country.
The VSTG platform also allows involving the Diaspora in designing cutting edge scientific solutions for
the industry, as well as in business development efforts for Bulgarian academic spin-offs and in
mentoringknowledge-intensive start-ups and innovation entrepreneurs. The network could also help
Bulgarianentrepreneursidentifybusinessopportunities abroad, offer advice on how to enter markets,
help negotiate business deals, make strategic business plans, and expand business networks.