Presentation on the cause and effects for innovation and on the potentials of commercialisation.

1. This project has received funding from European
Union’s Horizon 2020 Research and Innovation
Programme under Grant Agreement No 101007990.
Virtual health and Wellbeing Living Lab Infrastructure
Commercialization of
Innovation Pathway

2. Is there a market for this?
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or that?

3. The Geox example
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Mario Moretti Polegato, founder and President of Geox, conceived of the
revolutionary solution of piercing the rubber soles of his shoes to allow his
feet to breathe during a trip under the hot sun of Reno, Nevada.
Source: https://www.geox.biz/en/gruppo/group-profile/history.html

4. The Minoxidil example
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In early 1971, Dr. Chidsey observed hair growth on patients who had taken
the drug for hypertension. After receiving advice for his colleague Dr. Kahn
began examining the patient. Dr Kan and his Dr Gant a medical resident
administered minoxidil to others; hair sprouted on their bodies.
Source https://www.nytimes.com

5. Schumpeter on Innovation
Schumpeter: innovation is created via
combinations adopted by an
entrepreneur, that ultimately lead to:
– a new product
– a new process
– opening of new market
– new way of organizing the business
– new sources of supply
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6. Types of Innovation to market
▪ “Disruptive Innovation” : An innovation offers previously expensive or high-end products or services to new
customers under a more affordable and accessible marketing mix, thus reaching a broader population that
was previously excluded from the market. A newcomer introduces a Disruptive innovation into a market niche
that incumbent firms do not serve. The Disruptive innovation extends the market scope. e.g. IKEA, UBER,
Health Wearables
▪ “Blue Ocean Innovation” : An innovation addresses the simultaneous pursuits of differentiation and low cost to
open a new market space and create new demand by attacking an uncontested market space of an unknown
industry or innovation. A Blue Ocean innovation does not displace an existing product. The Blue Ocean
innovation creates new demand and defines a new market. Eg Cirque du Soleil, Retail Health Clinics
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7. 7
SME’s & StartUps
Looking to large companies
/organizations for POC/Test-Beds and
User/Customer-Base but also for
corporate funding and possible exits
via aquisitions.
Large Companies/Organizations
Depend on small start-ups/SME’s for
R&D and New Product Development
Because they can take early risks and
are more flexible to adopt
SME’s & Corporates
“Love and Marriage”

8. Cause and Effect for Innovation
▪ Need for Knowledge
Triggers Research
▪ Research Fosters
Innovation
▪ Business Opportunity
generates Momentum
for Innovative
Products
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1. Market need Triggers
Research
2. Research Fosters
Innovation
3. Business Opportunity
generates Momentum
for Innovative
Products
1. Random events
triggers Research
2. Research Fosters
Innovation
3. Business Opportunity
generates Momentum
for Innovative
Products

9. Commercialization of Innovation
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Research
Outcome
(Discovery)
Lab Prototype
Lab
Assessments
Prototype
Alpha Beta
Testing of MVP
Launched
Product
Scaled
Product
Pre-commercialization
Commercialization
Proof of concept
Proof of concept (including initial business model)

10. Who has the final say for a successful
commercialization process?
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VC’s or Business Angels
Early Customers
Researchers/Founders
Public Authorities

11. 11
I do

12. Scaling vs Growth
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Revenues grow at higher, exponential rate
compared to Costs
Revenues grow at proportional rate
compared to Costs

13. The pathways
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The Long Road:
The Spin-Off startup
The Faster Road:
Technology Licensing
Entrepreneurship via
startup or Corporate

14. The pathways
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The Long Road:
The Spin-Off startup
The Faster Road:
Technology Licensing
Entrepreneurship via
startup or Corporate
Academic
orientation Inventors
Vision
Ease to
adapt
technology
MVP
readiness
Stand-alone
feature
License to another
Startup
If no Corporate
to license

15. Regional & Regulatory Challenges
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Commerciali
zation
Limitations
Organizational
Technology
Export
Limitations
Different
Regulatory
Frameworks
Absence of
Standardization

16. Example: The Data Challenge
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USA EU CHINA
Legal Framework Health Insurance Portability and
Accountability Act (HIPAA)
General Data Protection
Regulation (GDPR)
Personal Information
Protection Law (PIPL)
Consent
Requirements
Consent requirements vary based on
specific laws and regulations State
and Federal
Explicit and informed consent
generally required.
Explicit consent required, and
further processing requires
separate consent.
Purpose
Limitation
Use and disclosure of patient data
allowed for treatment, payment, and
healthcare operations without patient
consent.
Data must be processed for
specific, explicit, and legitimate
purposes. Further processing
must be compatible with the
original purpose.
Data controllers must specify
purposes and obtain explicit
consent. Further processing
should be consistent with the
original purpose or authorized
by individuals.
Different Ecosystems may cause problems in exploitation of data

17. Startup = great idea - reality

18. Early Steps
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Pre-commercialization Commercialization
Idea stage Seed stage Early – Late market
stage
+$
time
-$
Angel investment
FFF VC Funding
Positive Cash- Flow
Negative Cash-Flow
Valley of Death
=0

19. Cut after “One on One” meetings
Cut After Diligence
Didn’t make the cut before reaching “One on One” meeting
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No “Crystal Ball”

20. Matching Phase with Raise
for Startups
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Bootstrapping
Angel Investing
Accelerator funding
3F’S Early Stage VC Funds Later Stage VC’s
Pre-seed Funding Seed Funding Series A, B, C,… n
You
Prototype/Validation
Idea Traction - Market Launch Growth - ScaleUp
Time/Progress

21. Startup Failures
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▪ No market need
▪ Ran out of cash
▪ Got outcompeted
▪ Regulatory Legal issues
▪ Flawed Business model
Top 5 Reasons
CB Insights: August 2021

22. Commitment Levels
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Founder's - Inventor's Commitment
Startup licence

23. An Alternate to Startup:
Licensing a service/Technology
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▪ Cost Based (Costs associated to develop IP)
Not the greatest one
▪ Market Value (Comparables)
In the case you make changes in the technology since the signing of the contract
▪ Income Approach
“25% Rule” Royalties should be no more than ¼ of Net profit or
Apply DCF method

24. Tech Licensing Failures
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▪ Absence of Minimum Performance Clause
In the case the Licensee does not do anything with the technology
▪ Unprotected Improvements of Technology
In the case you make changes in the technology since the signing of the contract
▪ Absence of Product Liability
Who’s liable when something goes wrong?
▪ Loss of IP control
Especially in remote areas difficult to check
▪ Creation of a Competitor
What if the Licensee turns to a formidable one?
▪ Sublicence Disagreements
Licensee company may need to cooperate with third parties, therefore ask for sublicence rights

25. Commercialization Needs
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Prototype
Alpha Beta
Testing of MVP
Launched
Product
Scaled
Product
Pre-commercialization Commercialization*
• Preliminary Need Validation
• Access to materials, S/W, H/W
• Complementary Skillsets for Founding Team
• Understanding Competition
• Assessment of Business Opportunity
• IP protection
• Product Validation (alpha/beta testing)
• Pre-Seed Funding
• MVP Validation
• Access to Talent
• Business Model
• Seed Funding
• Access to
Markets
• Networking
• KPI’s Redisign
• Market Fit
• Access to Talent
• Scalability of
Validation of
Business Model
• Growth Funding
• Extended Access
to Markets
*Commercialization Decisions may be taken early

26. Commercialization Strategy may start with abstract thoughts but applying
logic and market parameters early may save the inventors/researchers from a
lot of trouble or waste of time and other resources
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27. Commercialization Ambitions < Reality
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28. …sometimes though…
Dreams > Reality
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29. This project has received funding from European Union’s Horizon 2020 Research and Innovation Programme under Grant Agreement No 101007990.
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Project coordinator:
Dr. Evdokimos Konstantinidis
Scientific coordinator:
Prof. Panos Bamidis
Argyrios Spyridis, Anthology Ventures
as@anthologyventures.com