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Research Landscape & Funding

          Gearoid Mooney
   Director ICT Commercialisation
          Enterprise Ireland
  Gearoid.Mooney@Enterprise-Ireland.com
              087 7544955
The Basis For
                           Research Funding

    R & D for Enterprise,
    Innovation and Growth
    State investment in third level research ~
    5Bn by 2013
    Commercialisation




http://www.forfas.ie/media/asc060618_sti_strategy.pdf
The Economic Model
      EU                           Dept. Enterprise
                                                          Dept. Finance
    FP6, FP7                     Trade & Employment

C
A
S     EI                     IDA                    SFI
H                                                               T
                                                                A
               Research Establishments                          X
V                                                               E
A                                                               S
L
U                     Irish Industry
                (EI Clients, IDA Client & Others)
E
Mechanisms by which research
                   is commercialised

Primary Mechanisms

   Transfer of skilled people (Employment)

   Transfer of Knowledge (Licence)

   New companies (Spin-out)
Spinouts Generated per Year

                       30


                       25
     No. of Spinouts




                       20


                       15


                       10


                       5


                       0
                            1990

                                   1991

                                          1992

                                                 1993

                                                        1994

                                                               1995

                                                                      1996

                                                                             1997

                                                                                    1998

                                                                                           1999

                                                                                                  2000

                                                                                                         2001

                                                                                                                2002

                                                                                                                       2003

                                                                                                                              2004

                                                                                                                                     2005

                                                                                                                                            2006

                                                                                                                                                   2007

                                                                                                                                                          2008

                                                                                                                                                                 2009 (e)
                                                                                           Year


Table illustrates the increasing rate of spinout company creation. The 2009 figure is estimated with 14
generated to date.
Spinout Values

             80

             70

             60

             50
  Value €m




                                                                                              Exports (2008) (€m)
             40
                                                                                              Turnover (2008) (€m)
             30

             20

             10

             0
                  < 5 Years Old   5 - 10 Years Old    11 - 15 Years Old   16 - 20 Years Old
                                             Company Age

This table displays the export and turnover values achieved by spinout companies in 2008 by the year
of the companies’ establishment. This graph illustrates the inherent time delays in these high
technology firms achieving financial success.
So what makes a difference?
  More commercial opportunity
  More technology
  More expertise
  More experience
  More people
  Better means to connect them:
    at the right time
    and with the best blend
Two case studies.

   Case 1                              Case 2
      Lacks commercial expertise          30 years commercial
                                          experience
      Relatively strong technology
                                          Relatively weak technology
      Takes two years to license
      technology & get the company        Takes three months to build a
      formed.                             concept, & decide how to
                                          move it to market.
      Relatively poor business plan.
                                          Has business plan suitable for
      Still Looking for funding           investment in 6 months
      Works on this during summer         Gets 1.5M investment
      months
                                          Employs 8 people
      Has issued sub-licenses,
      which generate zero revenue         Customers fly their R&D
                                          teams to Ireland to see his
      Has no employees                    product.
Commercial &
  Technical
                      Commercialisation Fund
 Deliverables
                      1. Proof of Concept
 Research Community




                      2. Technology Development




                                                                      Industry / Market
                      3. Commercialisation +
                      (for colleges only – commercialisation by way
                       of licensing or creating spin-out company)


                             Innovation Vouchers
                            Innovation Partnerships
                                     ILRP
                              Competence Centres
                                   (for Industry only)


        Current Enterprise Ireland commercialisation funding
Industry lead Research and collaboration

Competence Centres
(~€1 million+ per annum over 5 years)


Industry Lead Research projects
(~€1.5 million over 2-3 years)

Innovation Partnerships
(~€200k over 18 months)


Innovation Vouchers
(Once off payment of €5K)               Size of   Number of       Collaboration
                                        budget    Ind. Partners   Complexity
                       What Industry wants
Business Partners Scheme

  Why Business Partners?
      Historical perspective
      Need to have scalable approach for current & future business needs
      Past experience
           Commercial Expertise & Cash
      Joined up thinking
  Primary Objectives.
      Build new companies providing sustainable economic growth from previous state
      investment in academic research, with strong commercial leadership.
      Facilitate access to research
      Support entrepreneurs looking at new opportunities
      Build interaction with the Business Community
      Culminates in a HPSU Application & Business Plan
   http://www.enterprise-ireland.com/StartBusiness/What+is+a+HPSU/BusinessPlan.htm
So where to from here?

 We know
    Commercialisation of research is paramount without it the
    economic system will cease to function
    There is scope for improvement in exploitation
    Support structures are in place

 We need
    All researchers to have commercialisation high of their agenda
    Work with your TTO offices – they are there to support you
    Interested entrepreneurs
    Call me or my colleagues in EI if you want help to commercialise
    research
Thank you !

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Gearoid Mooney - Ideagen event in WIT

  • 1. Research Landscape & Funding Gearoid Mooney Director ICT Commercialisation Enterprise Ireland Gearoid.Mooney@Enterprise-Ireland.com 087 7544955
  • 2. The Basis For Research Funding R & D for Enterprise, Innovation and Growth State investment in third level research ~ 5Bn by 2013 Commercialisation http://www.forfas.ie/media/asc060618_sti_strategy.pdf
  • 3. The Economic Model EU Dept. Enterprise Dept. Finance FP6, FP7 Trade & Employment C A S EI IDA SFI H T A Research Establishments X V E A S L U Irish Industry (EI Clients, IDA Client & Others) E
  • 4. Mechanisms by which research is commercialised Primary Mechanisms Transfer of skilled people (Employment) Transfer of Knowledge (Licence) New companies (Spin-out)
  • 5. Spinouts Generated per Year 30 25 No. of Spinouts 20 15 10 5 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (e) Year Table illustrates the increasing rate of spinout company creation. The 2009 figure is estimated with 14 generated to date.
  • 6. Spinout Values 80 70 60 50 Value €m Exports (2008) (€m) 40 Turnover (2008) (€m) 30 20 10 0 < 5 Years Old 5 - 10 Years Old 11 - 15 Years Old 16 - 20 Years Old Company Age This table displays the export and turnover values achieved by spinout companies in 2008 by the year of the companies’ establishment. This graph illustrates the inherent time delays in these high technology firms achieving financial success.
  • 7. So what makes a difference? More commercial opportunity More technology More expertise More experience More people Better means to connect them: at the right time and with the best blend
  • 8. Two case studies. Case 1 Case 2 Lacks commercial expertise 30 years commercial experience Relatively strong technology Relatively weak technology Takes two years to license technology & get the company Takes three months to build a formed. concept, & decide how to move it to market. Relatively poor business plan. Has business plan suitable for Still Looking for funding investment in 6 months Works on this during summer Gets 1.5M investment months Employs 8 people Has issued sub-licenses, which generate zero revenue Customers fly their R&D teams to Ireland to see his Has no employees product.
  • 9. Commercial & Technical Commercialisation Fund Deliverables 1. Proof of Concept Research Community 2. Technology Development Industry / Market 3. Commercialisation + (for colleges only – commercialisation by way of licensing or creating spin-out company) Innovation Vouchers Innovation Partnerships ILRP Competence Centres (for Industry only) Current Enterprise Ireland commercialisation funding
  • 10. Industry lead Research and collaboration Competence Centres (~€1 million+ per annum over 5 years) Industry Lead Research projects (~€1.5 million over 2-3 years) Innovation Partnerships (~€200k over 18 months) Innovation Vouchers (Once off payment of €5K) Size of Number of Collaboration budget Ind. Partners Complexity What Industry wants
  • 11. Business Partners Scheme Why Business Partners? Historical perspective Need to have scalable approach for current & future business needs Past experience Commercial Expertise & Cash Joined up thinking Primary Objectives. Build new companies providing sustainable economic growth from previous state investment in academic research, with strong commercial leadership. Facilitate access to research Support entrepreneurs looking at new opportunities Build interaction with the Business Community Culminates in a HPSU Application & Business Plan http://www.enterprise-ireland.com/StartBusiness/What+is+a+HPSU/BusinessPlan.htm
  • 12. So where to from here? We know Commercialisation of research is paramount without it the economic system will cease to function There is scope for improvement in exploitation Support structures are in place We need All researchers to have commercialisation high of their agenda Work with your TTO offices – they are there to support you Interested entrepreneurs Call me or my colleagues in EI if you want help to commercialise research