1. INTERREG IVA REGION
Northern Ireland (Excluding Greater Belfast) and the Six Border Counties of Republic of Ireland
June 2015
Matching validated ideas and
technologies with experienced
entrepreneurs and SMEs
A Case Study Book
3. IDEAS CONNECTED TO BUSINESS 3
Disclaimer ..........................................................................................................................................................ii
List of boxes, figures and tables.....................................................................................................................5
Appendices .........................................................................................................................................................5
Foreword .............................................................................................................................................................6
Acknowledgements...........................................................................................................................................7
Abbreviations.....................................................................................................................................................8
Executive Summary ..........................................................................................................................................9
1. Introduction.................................................................................................................................................12
1.1 Background to theVITAL Project..............................................................................................................................12
1.2 Need for theVITAL Project .........................................................................................................................................13
1.3 Objectives and targets of theVITAL Project.........................................................................................................14
1.4 Impacts of theVITAL Project......................................................................................................................................14
1.5 Key actions at end ofVITAL Project ......................................................................................................................16
2.VITAL Project model ...................................................................................................................................17
3. Strand 1 - Identifying and validating a bank of ideas for commercialisation................................18
3.1 Idea generation process..............................................................................................................................................18
3.2 Initial screening process..............................................................................................................................................18
3.3Validation and feasibility process ...........................................................................................................................19
3.4 Repository of validated ideas....................................................................................................................................20
3.5 Business case development.......................................................................................................................................22
4. Strand 2 - Identifying SMEs and Entrepreneurs with the skills and knowledge
to commercially exploit validated ideas....................................................................................................24
4.1 Screening of implementers........................................................................................................................................25
4.2 Repository of implementers......................................................................................................................................25
5. Strand 3 - Matchmaking............................................................................................................................26
6.Technology scouting and transfer...........................................................................................................27
7. Strand 4 - Fast tracking route to market through in-company customised support ...................31
7.1 Tailored support, fast tracking to market and development and
agreement of commercialisation model.....................................................................................................................31
7.2 New venture priming capital ...................................................................................................................................35
7.3 Case examples ofVITAL Project model implementation...............................................................................36
8. EazyIce:The formation of a new venture...............................................................................................38
8.1 Introduction....................................................................................................................................................................38
8.2 The idea generator .......................................................................................................................................................38
8.3 Business case development......................................................................................................................................40
8.4 The idea implementer.................................................................................................................................................44
8.5 Matching the idea generator to the idea implementer .................................................................................44
8.6 The formation of a new company..........................................................................................................................44
8.7 Fast track to market ....................................................................................................................................................45
8.7.1 Background .............................................................................................................................................................45
contents
4. 4 VItal
8.7.2 Defining the fast track to market requirements .......................................................................................45
8.8 Priming capital................................................................................................................................................................47
8.9 Challenges encountered and lessons learned .....................................................................................................49
9. Shnuggle: Fast tracking a new product concept to market................................................................51
9.1 Introduction....................................................................................................................................................................51
9.2 The product ideas .........................................................................................................................................................51
9.2.1 Portable nappy changing station idea ..........................................................................................................51
9.2.2 Infant monitoring technology idea.................................................................................................................52
9.3 Business case development ......................................................................................................................................52
9.3.1 Portable nappy changing station idea...........................................................................................................53
9.3.2 Infant monitoring technology idea.................................................................................................................53
9.4 The idea implementer.................................................................................................................................................54
9.5 Matching the idea generator and implementing SME....................................................................................54
9.5.1 Confidentiality agreement .................................................................................................................................54
9.5.2 Evaluation licence agreement...........................................................................................................................56
9.6 Fast track to market ...................................................................................................................................................56
9.7 Priming capital...............................................................................................................................................................57
9.7.1 Compact baby changing kit...............................................................................................................................57
9.7.2 Infant monitoring technology ..........................................................................................................................57
9.8 Benefits of participating in theVITAL Project....................................................................................................58
10.Viltra: From scouting technology to developing own technology ................................................60
10.1 Introduction.................................................................................................................................................................60
10.2 Company background..............................................................................................................................................60
10.3 Reason for participating in theVITAL Project.................................................................................................60
10.4 Technology scouting.................................................................................................................................................61
10.4.1 Defining the primary requirement ..............................................................................................................61
10.4.2 Drafting a specifications requirement........................................................................................................61
10.4.3 Filtering the technology alternatives..........................................................................................................62
10.4.4 Evaluating technology alternatives.............................................................................................................62
10.4.5 Selecting the preferred technology.............................................................................................................62
10.4.6 Technology transfer...........................................................................................................................................63
10.5 Commercialisation of transferred technology................................................................................................63
10.6 Priming capital fromVITAL ....................................................................................................................................63
10.7 Working with other public institutions..............................................................................................................64
10.8 Lessons learned forViltra........................................................................................................................................64
11. Gem Plastics: Improving new products through enhanced technologies.....................................65
11.1 Introduction.................................................................................................................................................................65
11.2 Company background..............................................................................................................................................66
11.3 Reason for participating in theVITAL Project.................................................................................................66
5. IDEAS CONNECTED TO BUSINESS 5
11.4 Brainstorming: identifying next-generation opportunities........................................................................67
11.5 Technology scouting.................................................................................................................................................67
11.6 Aligning with AIT........................................................................................................................................................68
11.7 Putting a Heads of Agreement in place.............................................................................................................69
11.8 Accessing priming capital fromVITAL................................................................................................................69
11.8.1 Market visit............................................................................................................................................................70
11.8.2 Customer identification and engagement.................................................................................................70
11.8.3 Suitability of the product for new markets...............................................................................................70
11.9 Lessons learned .......................................................................................................................................................70
12. Lessons learned onVITAL Project implementation...........................................................................71
12.1 A transferable model of open innovation.........................................................................................................71
12.2 Challenges along the way.......................................................................................................................................71
12.3 Lessons for teams embarking on similar projects.........................................................................................71
12.4 Lessons for potential participants on similar projects.................................................................................72
Appendix...........................................................................................................................................................73
TheVITAL Project Team..................................................................................................................................75
List of boxes, figures and tables
Box 1:The structure of a licensing agreement................................................................................................................30
Figure 1:TheVITAL Project model........................................................................................................................................17
Figure 2:VITAL SME/entrepreneur database....................................................................................................................24
Figure 3:VITAL’s access to technology transfer and licensing opportunities process.......................................29
Figure 4:VITAL’s Fast-track to market process ................................................................................................................32
Figure 5: Commercialisation model.....................................................................................................................................34
Figure 6: Range of available ice machine products........................................................................................................39
Figure 7: Breakdown of global fishing fleet ......................................................................................................................46
Table 1: Impacts of theVITAL Project.................................................................................................................................15
Table 2: Repository of sample validated ideas ................................................................................................................20
Table 3: Contents of a non-disclosure agreement .........................................................................................................55
appendices
Box A1:The stages of aVITAL idea submission to approval for matching............................................................73
Table A1: Factors to consider before technology acquisition....................................................................................74
6. 6 VItal
Foreword
Growing and developing the indigenous SME base
and creating high quality SMEs with export potential
in the border region is a key economic challenge. One
of the main methods to address the low levels of
new knowledge based start-ups is to promote and
encourage new venture creation.
TheVITAL Project approach of successfully matching
a validated knowledge-based idea with a seasoned
entrepreneur or well established SME provides the
most efficient and effective way of commercialising a
business proposition and fast tracking the route to
market.This approach to new business creation
makes theVITAL initiative a novel and innovative
project aimed directly at meeting the economic
challenges and needs of the eligible areas in terms of
knowledge based start-ups, providing new
commercial opportunities for existing SMEs and
creating employment opportunities as well as
reducing the risk associated with new venture start-
ups.
This casebook documents four case studies which
provide insights into how the project implemented
new products, technologies and commercialisation
pathways for the entrepreneurs and companies
involved. It provides a transferable model of best
practice for the development and implementation of
a unique and innovative open innovation model for
new venture creation.
The €2.56 millionVITAL Programme is funded by the
European Union’s Regional Development Fund
through the EU INTERREG IVA Cross-Border
Programme for Northern Ireland, the Border Region
of Ireland and Western Scotland with match funding
provided by the accountable departments in Ireland
and Northern Ireland.The fund is administered by the
Special EU Programmes Body.VITAL is a collaboration
led by the Regional Development Centre at Dundalk
Institute of Technology in partnership with the
Queen’s University of Belfast and INVENT, Dublin
City University.
I would like to take this opportunity to thank our
project partners at Queen’s University Belfast and
Dublin City University and to all the project team
who worked so diligently and relentlessly to
successfully implement such a challenging but
exciting and ground-breaking initiative.
Denis Cummins
President
Dundalk Institute of Technology
7. IDEAS CONNECTED TO BUSINESS 7
Acknowledgements
TheVITAL Project Partnership extends its
appreciation to all idea generators, experienced
entrepreneurs and small and medium-sized
enterprises that participated in the project. In
particular,VITAL would like to acknowledge the
contributions of the managing directors of the four
companies who agreed for their companies to be
used as cases for the benefit of other SMEs.They are:
Maura Burke (Gem Plastics), Colm Gribben (Viltra),
Adam Murphy (Shnuggle), and Dermot Short
(EazyIce).
The following companies provided different services
in the course of implementing theVITAL Project team
and are duly acknowledged.
Business Case Development Services
Team BDS Ltd
Ross Boyd Ltd
Fast Track To Market Support Services
Team BDS Ltd
Technology Scouting and Implementation Support
Services
Team BDS Ltd
Provision of Prior Art Assessment,
Protectionability, Validity and Right to Use Services
Tomkins & Co.
Provision of Procurement Support Services
Achilles Procurement Services
Provision of Technology Innovation Assessment
Services
Helix Innovation Partnership Ltd
Technology From Ideas
Eunomia Research & Consulting Limited
Lynch Technical and Innovation Services Ltd
VITAL Concept Development and Product Design
Services
Bigsmall Design Ltd
Acknowledgements also go to theVITAL Project
Managers, Sinead Cahill and Richard Walker, Queen’s
University Belfast,Tommy Ruane, Invent, Dublin City
University, Frances Quinn,VITAL Market Research
Executive and Bráinín Cox,VITAL Project
Administrator, Regional Development Centre, Dundalk
Institute of Technology. Special thanks go to Kieran
Fegan,VITAL Project Director for his contribution and
support throughout the writing of the casebook.
Final thanks go to the members of theVITAL
Management Committee for providing the leadership
that has successfully steered the programme since its
inception.The members are Irene McCausland
(chairperson), Dundalk Institute of Technology, Paul
Donachy, Queen’s University Belfast, Maria Johnston
and Richard Stokes, Dublin City University.
Funding for theVITAL Casebook has been provided by
the EU INTERREG IVA Programme administered by
the Special EU Programmes Body with match funding
provided by the accountable departments in Ireland
and Northern Ireland.
8. Acknowledgements
8 VItal
Abbreviations
AIT Athlone Institute of Technology
CRM Customer Relationship Management
CE Conformité Européenne
DCU Dublin City University
DkIT Dundalk Institute of Technology
EI Enterprise Ireland
ERDF European Regional Development Fund
EU European Union
EVOH EthyleneVinyl Alcohol
FAO Food and Agriculture Organization of the United Nations
Gem Gem Plastics Ltd
HDPE High Density Polyethylene
HOA Heads of Agreement
INTERREG Inter-regional
IP Intellectual Property
IPP Innovation Partnership Programme
ITC International Trade Centre
LEO Local Enterprise Office
LPG Liquefied Petroleum Gas
MD Managing Director
NDA Non-Disclosure Agreement
PET Polyethylene Terephthalate
QUB Queen’s University Belfast
R&D Research and Development
SEUPB Special EU Programmes Body
SME Small and Medium-sized Enterprise
VITAL Valorisation of Ideas through Accelerated Linkages
WIPO World Intellectual Property Organization
9. IDEAS CONNECTED TO BUSINESS | EXECUTIVE SUMMARY 9
Executive
Summary
Executive Summary
The purpose of the casebook is to outline the contents of theVITAL Project and its implementation in four
participating companies.TheVITAL Project is a unique approach with the aim of promoting regional economic
growth and development within the six border counties of the Republic of Ireland and Northern Ireland
(excluding Greater Belfast).This is achieved by creating new ventures through the matching of validated
knowledge-based ideas with experienced entrepreneurs and Small and Medium-sized Enterprises (SMEs) and
to fast-tracking to market. It distinguishes between the source and implementation of the idea.TheVITAL
Project also involves scouting technology for SMEs. It recognises that not all SMEs qualify for state supported
Research and Development (R&D) schemes and acknowledges that time constraints within SMEs can result in
a lack of focus on developing products or exploiting new markets. Fast-tracking the implementation of the
validated idea or technology to market is made possible through provision of a customised range of supports,
including priming capital where applicable.
The project is implemented in four strands as follows: (1) identifying and validating a bank of ideas for
commercialisation; (2) identifying SMEs and entrepreneurs with the skills and knowledge to commercially
exploit those ideas; (3) matching the right idea (including access to technology transfer and licensing
opportunities) to the right entrepreneur or SME, and (4) fast tracking the route-to-market through
customised support (such as in-company mentoring, consultancy, access-to-market knowledge) and priming
capital.
In identifying and validating a bank of commercialisable ideas, the ideas undergo both coarse and detailed
evaluations followed by the development of business cases to ensure technical, market and financial
feasibility. Some of these ideas are subsequently matched to seasoned entrepreneurs and SMEs. Alternatively,
technology is scouted for SMEs requiring such support.VITAL provides the matched ideas and scouted
technologies with tailored business support and priming capital to agree and execute a commercialisation
model.The rest of the ideas in the repository are made available for future potential matching and
commercialisation.
The technology scouting initiative is undertaken in three stages: (1) an assessment of the SME to uncover a
potential gap that can be filled with the right technology or product solution; (2) utilisingVITAL’s extensive
network of innovation sources to identify the best solution and providing expertise to guide the process of
new technology acquisition or licensing and (3) structuring the SME’s team to develop and deliver the full
technology/ knowledge transfer including assistance with licensing and initial commercialisation process.
10. 10 VItal
FourVITAL Project implementers reported in the casebook are involved in the following two idea matches
(EazyIce - new venture resulting from matching an idea generator and entrepreneur and Shnuggle - a new
product introduction resulting from matching two idea generators to an SME) and two technology scouting
initiatives (Viltra – technology transfer and Gem Plastics - licensing).
EazyIce is a new cross-border venture with a registered location in Drogheda.The company was formed as a
result of the participation of an idea generator called John White based in Kilkeel and an entrepreneur to
manufacture and sell ice making technology to the fishing and fish processing industries.The EazyIce business
plan is to expand sales in the fishing industry to other countries in Europe, especially the UK, and also provide
ice-making machines to other industries where ice is used as part of the manufacturing process, specifically
baking, meat processing and pet food manufacture. EazyIce plans to focus initially on marketing and sales of
the existing ice machines from John but as sales volume increases, it will establish its own manufacturing
capability as the capacity of the existing idea generator’s workshop is exceeded.When the company’s
manufacturing capability is put in place, the existing workshop will be used for research and development on
new equipment designs and other applications for ice manufacture. Customised support to fast track the ice
making technology to market include: determining the market size and appropriate route to market for
appropriate sectors; establishing a service and support model applicable to Ireland and the UK to support
sales development; establishing a process to identify international distributors by establishing a commission
structure; identifying appropriate trade fairs and potential distributors and customers to meet at these events
and developing a process for targeting the fish processing sector and other sectors.
Shnuggle is a family-run company based in Newtownards.The company is involved in the design and
manufacture of clever baby products that make life easier for modern parents.VITAL successfully matched
Shnuggle with two ideas after developing business cases: a portable nappy changing station and a wearable
infant monitoring technology.VITAL is subsequently assisting Shnuggle with business advice and priming
capital to fast track the commercialisation process of the two product ideas.The company has also accessed
priming capital to assist in fast tracking the development of the portable nappy changing station and infant
monitoring technology for market introductions. As part of facilitating the fast track of the emerging products
to market,VITAL is assisting in the areas of market research and access to the USA market for the Shnuggle
brand.
Viltra, a company based in Newry, provides wastewater treatment solutions to both the commercial and
domestic markets and plans on further developments by entering export markets with a revamped product
range as well as certifying a new product specifically for export. France has been identified as the major target
area the company plans to mirror its domestic success through certifying/ developing the new range of
products including non-electric systems and getting them ready for the French holiday homes market.
11. IDEAS CONNECTED TO BUSINESS | EXECUTIVE SUMMARY 11
Therefore the company was aware of a need but lacked the internal resources to investigate all the
technologies out there that could be licensed appropriately.TheVITAL Project was therefore aimed at scouting
non-electric technology and providing assistance in fast-tracking the resulting product to market.
Gem Plastics, a Cavan-based plastic containers manufacturing company, participated in theVITAL Project
without a defined technology requirement and a brainstorming session was undertaken to identify
technology transfer opportunities to create competitive advantage.The requirements included a composite
material to make the overall costs of production cheaper while improving the impact strength of the product.
VITAL undertook technology scouting and research on behalf of Gem Plastics leading to the evaluation of
responses.This included a company that has developed a coating capability that could be suitable for the
Gem products. Another EEN opportunity that emerged was a widely-licensed barrier additive blended with
HDPE for blow moulding applications.This brought the added opportunity for Gem to move into other
product applications such as pharmaceuticals. An additional opportunity from EEN was an innovative
ultraviolet curing of non-metallic LPG containers with distinct advantages as opposed to thermal curing.
However, the outcome of the research undertaken and the reviews of available technologies revealed there
was no off-the-shelf technology that is available for immediate use by Gem with regards to resource
allocation and organisational size.This led to an innovation partnership with AIT researchers to undertake the
following: (1) identifying and sourcing potential nanomaterials, (2) performing polymer compounding trials
and (3) performing cost-benefit analysis. A Heads of Agreement has been signed by both parties providing
the programme results, associated IP, related formulation recipes and know-how to Gem upon successful
completion.
12. 12 VItal
Introduction
1. Introduction
This casebook reports on the implementation of the
EU-funded INTERREG IVAVITAL Project aimed at
promoting regional economic growth and
development by creating new ventures through
matching validated knowledge-based ideas and
technologies with experienced entrepreneurs and
SMEs and fast tracking to market.
For the purpose of this project, a new venture refers
to any of the following: new business start, licence,
joint venture, new product, process or service within
SMEs.VITAL is implemented through a four- stranded
approach as follows:
Strand 1: Identifying and validating a bank of ideas
for commercialisation. It consists of a collection of
ideas that are capable of generating commercial
opportunities from a range of sources and are
identified as Idea Generators.
Strand 2: Identifying SMEs and entrepreneurs with
the skills and knowledge to commercially exploit
those ideas.This comprises SMEs and
entrepreneurs who are collectively identified as
Idea Implementers.
Strand 3: Matching the right idea (including access
to technology transfer and licensing opportunities)
to the right entrepreneur or SME.
Strand 4:Fast tracking the route-to-market through
customised support (such as in-company
mentoring, consultancy, access-to-market
knowledge) and priming capital.
In addition to the focus on how the four strands are
implemented, the report also contains four successful
VITAL matches. One case is involved in a new
company formation and new product introduction
while the other two cases are involved in technology
transfers.The cases report on opportunity
recognition, engagement withVITAL on pursuing the
sourced idea or scouted technology to
commercialisation and any lessons learned for the
participating case companies. Lessons learned and
legacies from the overallVITAL Project conclude the
casebook.
1.1 Background to theVITAL Project
The European Union’s Cross-border Programme for
Territorial Co-operation for Northern Ireland and the
Border Region of Ireland - INTERREG IVA Programme
is managed by the Special EU Programmes Body
(SEUPB). It is a programme which aims to promote
greater territorial cohesion by encouraging strategic
programme co-operation for a more prosperous and
sustainable region.The Programme’s priorities and
areas of intervention are as follows:
• Priority 1: Co-operation for a more prosperous
border region (focusing on enterprise and tourism),
• Priority 2: Co-operation for a sustainable
programme region (focusing on collaboration and
infrastructure),
• Priority 3:Technical assistance (focusing on
programme information and publicity, and
management, monitoring and evaluation of the
programme).
13. IDEAS CONNECTED TO BUSINESS | Inroduction 13
An operational response to the Enterprise focus of
Cooperation for a more Prosperous Cross-Border
Region (Priority 1) is theVITAL Project.This is a €2.56
million partnership project led by Dundalk Institute of
Technology (DkIT) with Dublin City University (DCU)
and Queen’s University Belfast (QUB) as partners.
1.2 Need for theVITAL Project
The project improves on regional SME
competitiveness and addresses infrastructural gaps in
supporting potential high-growth SMEs by offering
the following key distinguishing elements.
• It is a unique and innovative approach to new
venture creation through the matching of a
validated knowledge-based idea with an SME or
entrepreneur that is best placed to accelerate the
route to market, therefore providing and
safeguarding jobs in the region.
• It distinguishes between the source of the
business idea and the SME or entrepreneur who
will commercialise the idea.
• The entrepreneur who will commercialise the idea
is experienced, significantly improving the chance
of successful commercialisation.
• It offers SMEs and entrepreneurs access to a pool
of validated knowledge-based business ideas to
address identified market opportunities.
• It provides a customised range of supports that
allow SMEs and entrepreneurs to fast-track new
validated ideas to market.
• It introduces a priming capital fund to market and
technically validates ideas early to ensure greater
success rates in matching ideas with SMEs or
entrepreneurs.
• It provides accelerated market traction for new
ventures i.e. providing ideas and idea generators
with optimal routes to market through
complementary routes to market within existing
SMEs or through seasoned entrepreneurs.
• It offers talented technology SMEs or
entrepreneurs a real alternative to the franchising
model.
• It makes available the intellectual property of
inventors (sourced locally or through open
innovation), DCU, DkIT and QUB or other
academic institutes to grow the SME base.
• It leaves a legacy of knowledge and skills for SMEs
and entrepreneurs to effectively repeat the
process following completion of the project.
• It provides business start-up support throughout
the year with multiple entry points thereby
allowing businesses to start in the region at any
time within theVITAL Project cycle.
• It involves multidisciplinary experts with sectoral
and market knowledge.
The approach draws upon the skills and expertise of
the partners and identifies ideas from various sources
to produce an innovative business in the eligible
region. In addition to this, the partners can make use
of their international networks to ensure that the
activities are all informed by global best practice and
to ensure their commercial success.This ensures
more effective geographical coverage than can be
offered by any of the partners in isolation.
14. 14 VItal
1.3 Objectives and targets of theVITAL
Project
The objectives of the project are:
• To develop a best-practice model in indigenous
SME development
• To establish, develop and implement a cross-
border network for the stimulation, development
and commercialisation of strategies for indigenous
SME creation and development
• To source and initially screen 400 business ideas
external to implementing SMEs
• To conduct business cases on 160 qualified
business skills
• To identify up to 200 potential SMEs and
entrepreneurs with skills and knowledge to
potentially exploit the business ideas for
commercialisation
• To build 30 partnerships between the business
idea and SME or entrepreneur through a matching
process to exploit the business idea or technology
• To identify a commercialisation model for each
business proposition and support the concept in
its initial phase of development to include tailored
business supports
• To disseminate the unmatched ideas online
through the project’s website to attract other
potential implementers.
Ideas are matched with the most suitable SME or
entrepreneur to result in a successful venture. These
SMEs and entrepreneurs are based in the area outside
Greater Belfast in Northern Ireland and the six border
counties of Republic of Ireland.The overall aim is to
generate new venture in the EU INTERREG eligible
region.While the assessment of SMEs and
entrepreneurs are those based in the eligible region
only, ideas are sourced outside the region. In the
event that the promoters do not match an idea with
the SME or entrepreneur in the region over the
duration of the project, this is referred but additional
project resources are not used to pursue that idea.
The priority is to match the idea with a SME or
entrepreneur in the eligible region, followed by a large
company in the region, before referral outside of the
region.
1.4 Impacts of theVITAL Project
The impact ofVITAL is wide with a dynamic longer-
term perspective than immediate sales impact.
Participating companies are expected to gain a
knowledge and understanding of the innovation
process.
These SMEs/entrepreneurs’ involvement in
transferring product concepts from the region’s
research base to the market place or taking
internationally developed concepts to market should
benefit their companies and the local economy. As a
result these companies are much more aware and
capable of undertaking future innovation projects to
introduce further product innovations. A range of
further impacts (most not amenable to
quantification in monetary terms) is provided in Table
1. Additionally, a further impact of theVITAL Project
is that its cross-border implementation is anticipated
to develop a new form of enterprise support; with
networks, relationships and experience all in place
and strategically more equipped for future business
and enterprise growth.
15. IDEAS CONNECTED TO BUSINESS | Inroduction 15
Table 1: Impacts of theVITAL Project
Output Result Impact
Sourcing and identification of knowledge based
business ideas from industry, markets, hosting
of sectoral focus groups, database searches,
implementation of marketing campaign
Initial bank of over 400 knowledge based
business ideas
Opportunities for new product/process and
business concepts for exploitation in the
Northern Ireland and the six southern border
counties
Identify and engage with 200 SMEs /
Entrepreneurs with potential to exploit
business opportunities
Initial bank of 200 SMEs/Entrepreneurs Higher ratio of ideas growing to start-ups
Increased Cooperation between business and
research and development centres
Increased cross-border co-operation
Increases in informal mentoring and exchange
of advice on a cross-border basis
Conduct initial screening of 400 ideas Bank of 400 knowledge based business ideas Business opportunities identified for further
assessment and validation
Conduct business cases of 160 ideas Qualified and validated bank of 160 knowledge
based business ideas
Qualified business opportunities for SMEs and
entrepreneurs
Partner business proposition with
SME/Entrepreneur
30 robust knowledge based business ideas
matched to skills of SME/Entrepreneur
30 new products introduced to the market by
newly formed or existing businesses
Implementation of a tailored suite of business
supports for each new venture
30 tailored supports delivered to each new
venture thus fast tracking the route to market
150 jobs created/safeguarded
10% increased sales in supported businesses
Development of a flexible, scalable,
transferable business/idea commercialisation
model
A best practice commercialisation model for
new knowledge based start-ups
Increased numbers of knowledge based start-
ups
Increased employment in the region
Increased turnover within participating SMEs
and Entrepreneurs
Networking events: 7
Information Sessions/ Clinics: 24
360 SMEs/Entrepreneurs attending sessions Increasing the number of cross-border business
network links creating new knowledge
partnerships
16. 16 VItal
1.5 Key actions at end ofVITAL Project
The following positive actions will be undertaken at the end of theVITAL Project with the view to embedding
innovation, knowledge and skills vital to regional economic development.
• Definable best practice transferable model of new venture creation based upon:
• Embedding skills
• Changing culture
• Learning by doing approach.
• Establishing the economic benefit of the project with a view to informing policy and practice.
• Mainstream learning from the project into research and teaching in each institution.
17. No
IDEAS CONNECTED TO BUSINESS 17
VITAL Project model
2.VITAL Project model
The four project strands and their inter-relationships are presented in theVITAL Project model in Figure 1.
Screened and validated ideas sourced from various sources and scouted technologies are matched with
entrepreneurs/SMEs from a database. Once matching is achieved, business support is given to the
implementing entrepreneur/SME to fast-track the idea to market resulting in a customised commercialisation
model.
Figure 1:TheVITAL Project model
Inventor
Industry
Markets
Third level
sector
Patent
databases
Employees/
managers
Licensing
opportunities
E-Synergy
International
opportunities
400 ideas
Initial
screening
process
160 ideas
Repository
of
validated
ideas
Includes business
case development
and potential
matching with
project partners
available IP
Project
Board:
match-
making
process
Online
portal
Partnership
agreed
Needs
assessment
Termination
Validation
and
feasibility
Tailored support
Value proposition/
commercialisation
model generated
Commercialisation
model agreed
& executed
Pipeline to
existing
provision by EI
and InvestNI
30 new ventures
created
Strand 4: New venture creation &
commercialisation
Strand 1: Sourcing business ideas through open innovation
>1000 ideas
No
SME
Seasoned
entrepreneur
Employee/
managers
Screening
Process
Repository
of Implementors
400
implementers
Strand 2: Sourcing of entrepreneurs and SMEs
200
implementers
Yes Yes
Strand 3:
Matchmaking
Includes one on
one mentoring,
consultancy,
priming capital,
customer analysis
and routes to
market
18. 18 VItal
Strand 1
3. Strand 1 - Identifying and validating a
bank of ideas for commercialisation
TheVITAL project has generated in excess of 400
ideas over a two and half-year period for validation
and is implemented as a four-stage process: (1) idea
generation, (2) initial screening, (3) validation and
feasibility and (4) repository of validated ideas.VITAL
utilises an online customer relationship management
(CRM) which is crucial to the management of the
process.The CRM is used to register and receive
potential submissions from idea generators and
description of expertise from idea implementers. For
idea implementers, the online application is divided
into entrepreneurs and SMEs. Once registered,
applicants can access their accounts anytime to
complete applications and follow the status of their
applications until approval decision and consequent
matching with implementer. (Box A1 in Appendix
provides the stages from submission of an idea
through screening, approval and matching using the
CRM.)
3.1 Idea generation process
VITAL utilises open innovation to generate ideas and
source activities.1
The idea generation process
includes the use of idea generation methodologies
such as brainstorming and sector/ profession-based
focus and unfocus groups.2
Value Stream Analysis
(such as listening to the voice of the market or
potential customer and suppliers, which can provide
inspiration for new products and services and
indicate how existing products and services can be
improved upon) is also considered.TheVITAL idea
generation process also tracks evolving standards and
regulations that can provide new opportunities.
VITAL not only sources ideas from the IP banks of the
three project partners (i.e. DCU, QUB and DkIT) but
also from other higher education institutions,
individual inventors and organisations. Such
organisations include SMEs and entrepreneurs who
do not have the scale or interest in commercially
developing generated ideas. Ideas are also sourced
through smart patent searches to determine those
that can be developed on licence or the white space
between patent claims.The idea generation process
also tracks trends in large corporations, considered to
be model innovators in conjunction with tracking
overall industry trends.
3.2 Initial screening process
The generated and sourced ideas pass through an
initial assessment to create 400 coarsely evaluated
ideas.This is a pass/fail screening method using a
checklist of market suitability, constraints and
technical possibility.This initial screening determines
a rough order of magnitude of the technical and
commercial assessment and is conducted byVITAL
Project Managers.The basic criteria for progressing
sourced ideas are as follows:
Identifying and validating a bank of ideas for commercialisation
1
One explanation of open innovation focuses on engagement of both the sourcing and internal generation of new ideas and
technologies to reduce risk, increase the speed to market, leverage scarce resources and learn quickly from peers who are ahead in the
developmental path of a product, service or technology. For further reading refer to Chesbrough, H.W. (2003), Open innovation:The
new imperative for creating and profiting from Technology. Boston, MA: Harvard Business School Press.
2
An unfocus group is a qualitative research method where participants being interviewed are from the tails of the normal distribution
curve.The group brings a broad range of opinions and feedback about a product or service.
19. IDEAS CONNECTED TO BUSINESS | STAND 1 19
1. the idea has to be innovative and preferably be for
a knowledge based sector with implementation
capability and expertise available within the
eligible region of Northern Ireland or the six
border counties of Ireland,
2. the idea has to be at pre-prototype stage of
development, at a minimum, and preferably
prototype plus and capable of commercialisation
within a 6 - 12 months period, and
3. the business idea has to be capable of creating
and/or sustaining jobs in the eligible region.
3.3Validation and feasibility process
The initial screening results in 400 ideas which
undergo further rigorous detailed screening and
assessment validating process.This process funnels
the ideas to a repository of 160 commercially
validated ideas.The validation of ideas into a
repository is conducted by external experts.The
consultants utilise proven methodologies to assure
the validation of winning ideas which include:
n a definition of the resultant
product/process/service and potential business
model,
n potential financial investment required,
n use and user profile,
n market characterisation,
n revenue potential,
n export potential,
n scalability,
n sustainable competitive advantage, and
n risk contained within the idea and
commercialisation process.
Originality of idea
As part of the idea validation processing for further
development and commercialisation, due diligence is
carried out on the originality of the
concept/prototype in the following areas:
Prior art assessment through patents, design rights or
copyright: An up-to-date overview of the IP
landscape which pertains in a particular technology
or innovation field with specific search results and
outcome analysis including a clear indication of
previous IP protection activity - whether successful
or expired or otherwise - in the particular fields of
interest.
Validity and right to use in the domains of patents,
design rights, copyright, trademarks and trade dress:
A validity search is used as a risk analysis tool where
there is a concern that a validated idea infringes a
particular patent.The search is used to uncover
issued patents or other prior published art that may
render the idea partially or completely invalid.
Protection or registration or copyright protection as
appropriate: Interpreting search results (including the
assessment of whether or not patent protection is
available, appropriate and beneficial to theVITAL
idea) in cases of: uncertain data or indications that
the IP is already in the market place; likelihood of
protection by secret trade IP, or; prospect of yet
unpublished protection application.
20. 20 VItal
3.4 Repository of validated ideas
A database containing 160 validated ideas is developed from the initial coarsely-screened 400 ideas. Some of
the commercially validatedVITAL product opportunities are showcased in Table 2.
Table 2: Repository of sample validated ideas
1. A product opportunity exists for a novel refrigeration unit based on air cycle technology which will give the most benefits in either
the food processing world where the combination of chilling and heat is required – OR something like refrigerated transport trucks
where you could effectively run the technology off the trucks diesel engine and it can withstand all the knocks and bumps from
the road without breaking down.
2. A product opportunity exists which relates to the design, manufacture and sale of a Man Overboard (MoB) boarding product for
boats (leisure and trawler) which will offer significant advantages over the standard ladder or step offerings currently on the market.
This product can also be used at piers, marinas and harbour side areas.
3. A product opportunity exists which relates to the testing, modification and commercialisation of a portable device to assist anyone,
but particularly older people and those suffering an infirmity, be it temporary or permanent, to start a pull cord engine.
4. A product opportunity exists which relates to an effective 100% natural antibacterial fluid for surfaces. It is a new natural
antimicrobial coating that works specifically to eradicate bacteria and cross infection, using non-aggressive, natural ingredients.
The coatings work in seconds on contact with bacteria to prevent cross infection.
5. A product opportunity exists which relates to a piece of street furniture allowing for ease and regulation of cycle parking preventing
the cycle from falling over and preventing/deterring theft.
6. A product opportunity exists which relates to a product which will help prevent accidental or malicious slurry spills from above-
ground slurry tanks
7. A product opportunity exists which relates to a product which will educate employees at all levels, from the board right through
senior and mid-level managers, to understand risk management as it applies to their own firm. Enterprise Risk Management (ERM)
has arisen as an effective discipline for organisations seeking to achieve satisfactory returns in this era of greater uncertainty.The
idea is to train business executives and employees in ERM via an online business simulation.This helps to embed ERM by breaking
down traditional organisational barriers and silos of operation such that a holistic and systematic approach to risk management
can be effectively deployed throughout the organisation.
8. A product opportunity exists which relates to a product developed as a series of teaching tools to help the “Can’t Cook, Won’t
Cook “ aimed at the US, (over 38% can’t cook more than Bean on Toast) to start, however it will translate very easily to all. It is
based on how we think, learn and explore everything about food in the simplest possible way, no recipe has more than 3 steps. It
focuses especially on cooking and related health issues on a low budget. It is App based,TV friendly and there is also a cook book
with recipes.
21. IDEAS CONNECTED TO BUSINESS | STAND 1 21
9. A product opportunity exists which relates to a hi-margin fermented alcohol beverage product with niche export market channels
focus. Growth potential rising to €2.7 million sales volume at end ofYear 5 based on very conservative targets with low level of
capex at start-up and low levels of ongoing capex as business grows incrementally.
10. A product opportunity exists which relates to the commercialisation of a solar thermal tracking mechanism which will incorporate
a patented safety mechanism to prevent overheating in the event of excess solar radiation from the sun. There are a number of
competitors in the market, many of whom concentrate on the commercial PV sector.The idea owner hopes that the product can
be licensed to a company or entrepreneur operating in the solar thermal area, an area where less competition is evident. A key
reason a customer would choose to buy this offering would be to attain greater efficiencies, in terms of heat generation from their
thermal solar system. Preliminary tests would indicate that efficiencies of the order of 46% can be expected.
11. An opportunity exists for the manufacture and sale of a “Car Breakdown Assist”; an electro-mechanical device designed to enable
broken down cars to be moved short distances. The aim is to create a device which can be easily used by one person, but which
gives greater control and improved safety aspects over existing products on the market.To move the vehicle, the mechanic attaches
the device to one wheel of the car, then sits in the vehicle and hits the remote control.The vehicle moves forward or reverses at a
rolling pace while the driver is in full control of the steering.When in its final resting place the remote control is hit again to stop
the car.The overall market for such equipment includes commercial garages, car showrooms, car breakdown assistance organisations
such as AA, vintage car enthusiasts involved in repairing and upgrading cars in home garages etc.
12. A product opportunity exists for a new type of sink waste fitting which is an innovative alternative to the traditional waste outlet
for kitchen sinks. It removes the need to disconnect the waste outlet from the sink and associated plumbing to allow for easy
cleaning, thereby reducing the build-up of residue that can cause unpleasant smells. A working prototype has been developed by
the inventor and has been tested successfully on a limited scale in a domestic environment. Patents have been granted for UK,
Ireland, France, Germany,Turkey, USA and Australia.
13. A product opportunity exists for a design led, attractive, lightweight, retractable barrier with embedded directional LED lights and
a completely reflective front surface.The device is man-portable and can be quickly deployed in any situation where the emergency
services require traffic to be directed away from the scene of an incident.
14. A product opportunity exists for a novel hologram which is sensitive to changes in pressure on its surface. The technology is
currently licensed out for anti-counterfeit products but has other applications in life science, electronics, or tactile pressure sensing,
where changes in the surface can be used to create a sensing reaction.
15. A product opportunity exists for a novel design for a waterproof and shockproof smartphone casing that enables VHF (Very high
frequency) radio functions through a mobile phone.The device is intended to improve the speed of rescue in the case of emergency
on open water, as VHF is an extremely reliable signal which can be easily tracked. It also has application for the offshore oil and
gas industry.
22. 22 VItal
3.5 Business case development
The business case provides a comprehensive and
extensive assessment for each validated idea with the
emphasis on assessing innovation value propositions,
price/cost modelling, market positioning, validation,
market entry, channels, potential blockages, etc.
The assessment is done beyond desk research to
analyse potential market traction, and identify and
detail potential customer profiles.
It identifies the most suitable commercialisation
model for each business proposition. Each business
case includes a selection of inputs under some or all
of the following headings determined on a case by
case basis.
Handover: Interpretation and confirmation of
situation assessment, the problem and proposed
solution and potential value proposition in
consultation withVITAL Project Managers.
Establishment of market size with market segment
considerations:This aim to provide, as best as
practicable, an accurate market size without exclusive
reliance on estimates and extrapolations.
Market attractiveness and competition analysis:This
considers short-term profit, medium and long term
profit potential, growth rate of market, market
openness, cost of entry, etc.The competition analysis
include: an assessment of the strengths and
weaknesses of current and potential competitors;
consideration to offensive strategic context to
market entry, and; competitive reactive preparedness
including associated opportunities and threats.
A consideration is given to scenario modelling for
disruptive and displacement innovation offerings.
Customers pricing levels: Price elasticity is assigned
to each customer market segment underpinned by
product value and cost engineering, for each type of
demand response option, using available information
about how similar customers have responded to
prices afforded by similar demand response options.
Total investment requirements /cost to progress
(minimum viable):This considers (where appropriate),
the need to establish, plan, license, further develop,
create, manufacture, as well as the ability to market,
sell, deliver and support.This is underpinned by
product value and cost engineering considerations.
Product life cycle considerations:This includes life
cycle costing estimates that support a decision
maker in making a return on investment decision.
Business model:The establishment of a model of
product/service development that is disruptive or
driven by any of the following: market, customer,
competitor or value proposition (such as the total
cost of ownership model).
23. IDEAS CONNECTED TO BUSINESS 23
Innovation value propositions:This proposition
considers why a customer in the selected target
market should purchase this particular innovation.
There is a focus on the key benefits that matter most
to buyers in that target market.The propositions
specifically document the worth/superiority of the
offering, relative both to competitors and to
customer needs and effected from the customer’s
perspective.
Market positioning:This concerns how the innovation
should be positioned in the mind of the customer. As
much as practicable, vague adjectives commonly
used by competitors without differentiating offerings
are avoided (such as stylish, innovative, high-quality
or friendly-customer service).
Blockages: Any likely and potential blockages
(including regulatory considerations).
Market entry and channels: A well-executed market
entry and channel strategy focusing on
understanding the opportunities, drivers and
structures of different markets that ensure value
capture is shared equitably across any partners in the
chain.The channel strategies reflect the key
characteristics of complex and varied market
environments, be they mature or emerging. It also
ensures alignment between resources committed to
channel activities, e.g. key partner relationships,
alliances, account management structures and field
support as some of the key components supporting
channel activities.
Price/cost modelling: Establishment of market
demand / revenue potential based on proposed value
and costed solution by bringing it all together to
inform and enable an implementation decision to be
made.
24. 24 VItal
Strand 2
4. Strand 2 - Identifying SMEs and Entrepreneurs with the skills and knowledge to
commercially exploit validated ideas
VITAL Implementers are either high growth SMEs or seasoned entrepreneurs.These implementers are
identified by theVITAL project management team from sources including but not limited to the list in Figure
2.
Figure 2:VITAL SME/entrepreneur database
Identifying SMEs and Entrepreneurs with the skills and
knowledge to commercially exploit validated ideas
Website
Enquiries
Local
Enterprise
Offices/
Agencies
Own
Networks
Trade
Associations
Enterprise
Support
Programmes/
Current & Past
Participants
Promotional
Activities
Project
Partner
Databases
Chambers
of
Commerce
Market
Research
EI/InvestNI
Referrals
Banks &
Credit
Unions
Professional
Advisors &
Mentors
Online
Social
Networks
Business
Club
Networks
SME/Entrepreneur
database
25. IDEAS CONNECTED TO BUSINESS 25
4.1 Screening of implementers
Each potentialVITAL entrepreneur/SME undergoes a
rigorous two-staged evaluation process. Stage one
includes the application made by the
entrepreneur/SME outlining their initial expression of
interest, inclusive of references, previous experience,
skill-set and education, track record, quality of the
team and availability of relevant resources.The
application stage is followed by an interview between
potential programme participants andVITAL Project
Managers.
4.2 Repository of implementers
Upon completion of the interview and subsequent
approval, the SME or entrepreneur joins theVITAL
project Approved Implementers databases for SMEs
or entrepreneurs. Up to 200 potential SMEs and
entrepreneurs with skills and knowledge to
potentially exploit the business ideas for
commercialisation are sourced to implement
matched ideas or scouted technologies.
26. 26 VItal
Strand 3
5. Strand 3 - Matchmaking
NewVenture Evaluation
VITAL matches approved Idea Implementers with
validated ideas, each being taken on a case by case
basis.TheVITAL Project Managers review the
potential match of implementers and validated ideas.
The determination of capability entails analysis of
the level of prospective implementers’ resources
currently available, such as human, financial, selling,
and technical as well as their market presence in
relevant niche markets.The use of an iterative
process ensures an optimal match occurs between
ideas and entrepreneurs/SMEs.
TheVITAL Project Managers reflect on criteria looking
at sector fit, resources match, market channels,
financial stability and demonstrated focus and
commitment to theVITAL objectives as follows:
• Sector fit
• Resources match: idea’s commercial and technical
needs versus implementer capabilities.
• Potential fit (e.g. big idea, small implementer vs.
small idea, big implementer).
• Implementer’s openness to negotiating reasonable
commercial terms with the idea owner.
• Likely cost of implementation and whether the
investment can be accessed.
• Implementer’s availability of appropriate channels
to market in line with the suggested business
model in business case
• Requirement for prototyping, Proof of Concept
• Degree of market validation already undertaken
• Implementer’s receipt of previous innovation
support (from e.g. universities, Institutes of
Technologies, Regional Colleges, Government
agencies and other organisations) and any
commercial successes.
• In the case of agency support, the level of support
already received i.e. de minimus level.
Matchmaking
27. IDEAS CONNECTED TO BUSINESS 27
6.Technology scouting and transfer
TheVITAL Project also involves scouting technology
for SMEs. It recognises that not all SMEs qualify for
state supported Research and Development (R&D)
schemes and acknowledges that time constraints
within SMEs can result in the neglect of developing
products or exploiting new markets. Fast-tracking the
implementation of the validated idea or technology
to market is made possible through provision of a
customised range of supports, including priming
capital where applicable.
The technology scouting initiative is undertaken in
three stages: (1) an assessment of the SME to
uncover a potential gap that can be filled with the
right technology or product solution; (2), utilising
VITAL’s extensive network of innovation sources to
identify the best solution and providing expertise to
guide the process of new technology acquisition and;
(3) structuring the SME’s team to develop and deliver
the full technology/ knowledge transfer including
assistance with licensing and initial
commercialisation process.
Interested SMEs who require sourced technology
submit an application form with the following:
• Contact details,
• Source of learning about theVITAL Project,
• Business information
• year of incorporation, nature of the business,
• number of employees and
• as a minimum, the previous three years of
trading history.
• Reasons for applying for the technology scouting
initiative
• Identifying new technology need within the
company to aid/achieve superior growth
Selection process of companies requiring technology
transfer
Companies are evaluated by the project management
team in three parts as follows:
6. Technology scouting and
transfer
28. 28 VItal
Part 1: Company satisfaction of key requirements of
theVITAL Project:
• knowledge based business
• location within the eligibleVITAL region
• company’s size between 10 and 250 people
• length of time company has been trading
Part 2:The company’s resources, expertise and
technology need:
• Management team description and key decision
makers
• Company’s attitude or appetite for change
• Identification of available resource to champion
project
• Other major ongoing projects that can hinder
progress of aVITAL project
• A well-defined technology need
• A clearly defined company strategy on what to
achieve with the project
• Access to financial resources to invest in
technology transfer
• Previous experience in licensing/ technology
transfer and any attributable commercial success
• Prior receipt of innovation support from higher
education, government agencies and other
organisations
• Level of agency support already received (de
minimus level during the last three years)
Part 3: selection panel assessment:
Eligibility Criteria
Yes No
• Eligible sector
• Eligible region
• Sales turnover greater than €400,000 per annum
• Reasonable financial stability
• Trading in International Markets
5 4 3 2 1 0
• Clearly identified technology/product need
• Reasonable financial stability
• Trading in International Markets
• Demonstrated focus and commitment to theVITAL objectives
• Resources available to commit to the project
Total ___________
29. IDEAS CONNECTED TO BUSINESS 29
The panel makes a recommendation and successful
companies are awarded places which they can then
accept or reject. In total 22 companies initially
engaged.There have been 12 matches to date with
two matches for some companies while scouting is
still ongoing in five companies.
Accessing technology transfer and licensing
opportunities
SMEs selected for technology transfer requirement
on theVITAL Project are assisted to scout the
technology and subsequently implement within each
of the SMEs in five stages: Stage 0, Stage 1, Stage 2,
Stage 3 and Stage 4.
Stage 0 – Identify opportunities in products/services,
markets and customers:This stage is only carried out
when it is deemed necessary byVITAL by working on
the following: overall vision and associated strategy
to create a turnover matrix of new/existing
products/services, and new/existing
markets/customers leading to a gap analysis.This is
followed by brainstorming and idea evaluation
utilising the vision and strategy to establish
appropriate rules of engagement. Figure 3 sequences
the activities from Stage 1 to Stage 4.These are
further elaborated upon in Table A1 in Appendix.
Figure 3:VITAL’s access to technology transfer and licensing opportunities process
STAGE 1
Identify technology
need
Assess company
capability
STAGE 2
Scope technology
requirements
STAGE 3
Scout technology
market
STAGE 4
License & exploit
technology
Technology need &
proposed solution
Delivery
constraints
Required
technology transfer
& contribution
Commercial
outcomes &
available resources
Scope technology
fit
Develop acquisition
budget
Assign ownership role
& success measures
Scope know-how &
support
requirements
Produce timeline
for technology
transfer
Search for appropriate
technology
Develop critical
elements of licence
Support licensing &
commercialisation
process
30. 30 VItal
Stage 1 – Identifying technology need: A capability
assessment is carried out on the technology-seeking
SME in terms of resource capabilities, existing
products/ technology and potential gaps that can be
exploited by using the right technology.This
technology need is then defined within the context
of the business to identify the issues that require
solving and whether a technology transfer will offer a
partial or total solution.The constraints to develop
and deliver the concept such as available resources
and regulatory requirements are then prepared
against the commercial outcomes that the sourced
technology can deliver.
Stage 2 – Scoping the technology requirements:The
next step after examining available in-house
resources and commercial impact of sourcing a
technology is to identify scope where this new
technology fits within the context of the company,
region, sector or market. Once this is established, an
acquisition budget is developed for search and
licensing purposes while the transfer know-how and
support requirements are scoped. It is essential to
define the role and identify an individual who can
champion the technology acquisition and to
determine the appropriate success measures. A
timeline is also produced and agreed for the
technology transfer project.
Stage 3 – Scouting the technology market: After
scoping the required resources and technology fit,
the next step is to search the market for it.The
technology market includes third level academic
institutions (including DCU, DkIT and QUB), research
institutes, technology transfer portals, Enterprise
Europe Network, patent office, and brokers. Also, at
this stage, critical elements of the licence are
developed, the internal champion assigned and
provided with negotiation training if required.
Stage 4 – Licensing and commercialising the
technology:The SME is offered support in IP
agreement and legal costs to acquire the licence and
commercialise the technology. An illustrative outline
of a licensing agreement dealing with what is being
licensed and its price and duration to the licensee for
a particular purpose as well as the conditions for the
licence is detailed in Box 1.
Box 1:The structure of a licensing agreement
3 Title
3 Table of contents
3 Identification of parties
and signature
3 Recitals
3 Definitions; description
3 Grant or terms of use
(Extent of rights;
limitations)
3 Fees, royalties, minimum
annual payments
3 Payment terms
3 Diligence requirements
3 Reporting schedules
3 Records/accounts
3 Life of the agreement
3 Termination
3 Use of trademarks
3 Representations and
warranties (limited);
disclaimers
3 Intellectual property
protection; conduct of
prosecution
3 Marking; export control
3 Applicable law; choice
of jurisdiction;
arbitration/mediation
3 Infringement; right to
sue
3 Indemnity; liability;
insurance
3 Notices
3 Assignment
3 Waiver
3 Failure to perform
3 Confidentiality/secrecy
3 Miscellaneous: force
majeure, maintenance,
survival on termination,
amendments, etc.
3 Closing; signatures, date
and place, date of
effectiveness
Source:WIPO & ITC, 2005:
983
3
WIPO & ITC (2005), Exchanging value - negotiating technology licensing agreements: A training manual. Geneva:WIPO. Available at
www.wipo.int/export/sites/www/sme/en/documents/pdf/technology_licensing.pdf. Last accessed: 24 March 2015.
31. IDEAS CONNECTED TO BUSINESS 31
7. Strand 4 - Fast tracking route to market
through in-company customised support
This involves both fast-tracking matched validated
ideas or transferred-in technology by assisting the
companies with customised commercialisation
models that involves the provision of tailored support
such as mentors and consultants for business
support, enhancing business networks and, in some
cases, making available priming capital to facilitate
the rapid commercial development of the product or
service. Priming capital provided funding for
peripheral activities such as developing prototype,
identifying suitable business models, identifying
customers, engaging in market visits or exploring the
suitability of products for new markets.
7.1 Tailored support, fast tracking to market,
and development and agreement of
commercialisation model
The fast track to market is facilitated by external
expertise through the entrepreneur/SME needs
assessment and subsequent tailored supports that
include one-on-one mentoring, consultancy,
customer analysis and identification and
implementation of fast routes to market.The
customised nature of support leads to different kinds
of commercialisation models (bespoke, flexible,
scalable and multi/parallel-stage capability) for the
30 implementing SMEs/entrepreneurs utilising the
sourced ideas or scouted technologies.The
sequencing of the fast track to market provided in
Figure 4 begins when a business case is reviewed and
the implementing SME/entrepreneur is matched and
engaged.The implementer’s needs are then assessed
to establish the support that can be provided and a
suitable commercialisation model. The
implementation plan is consequently developed.The
assistance ends with identifying and initial
engagement with customers to generate revenue.
Strand 4Fast tracking route to market through in-company customised support
32. 32 VItal
Figure 4:VITAL’s Fast-track to market process
Business case
review
Identification of
commercialisation
model
Development of
implementation
plan
Drive of critical
path with new
product
development
considerations
Market entry &
channel strategy
Engagement with
SME/ entrepreneur
Needs assessment
for required support
Market attractiveness,
competition & pricing
Budgets and product
life cycle
considerations
Business model
Innovation value
proposition
Market entry &
positioning
Product development
finalisation &
production
considerations
Likely & potential
obstacles
Implementation of
sales & marketing
plan
Identification &
engagement with
customers to
generate revenue
Initial sales
Supply chain
considerations
33. IDEAS CONNECTED TO BUSINESS 33
Commercialisation model
The development of a commercialisation model is a
part of the fast track to market for each new venture
supported as part of the tailored supports offered.
The customised commercialisation model is an
important element ofVITAL and has a significant
bearing on the ultimate commercial success or failure
of the individual venture. As a result the need for
flexible and scalable commercialisation tools and
models is paramount. In developingVITAL, extensive
research was conducted to benchmark international
commercialisation models for use in the project (e.g.
the Goldsmith model, Rothwell and Zegfeld Model,
Andrew and Sirkin model and Australian Institute for
Commercialisation (AIC) model).4
The result is a
flexible and scalable model of commercialisation
with seven stages shown in Figure 5. HoweverVITAL
focused on the development phase (processes from
pre-prototype stage until initial sales following
market introduction), as one of three basic criteria for
progressing sourced ideas was for the idea to be at
pre-prototype stage of development, at a minimum,
and preferably prototype plus and capable of
commercialisation within a six to twelve-month
period. The stages in the commercialisation model
can be manipulated to reduce, combine or run stages
in tandem. Each stage is followed by a decision gate
where the terms of the stage (or stages) are fulfilled
before proceeding to the next stage of the model.
4
See for example Goldsmith, H. R. (1995), A Model for Technology Commercialization, Mid-Continent Regional Technology Transfer
Centre Affiliate’s Conference, NASA Johnson Space Centre, Houston; Rothwell, R. & Zegfeld W. (1985), Reindustrialization and
Technology, London, Longmans; Andrew, J. & Sirkin A. (2007), Payback: Reaping the Rewards of Innovation, Boston, Harvard Business
School Press; Smith, G. (2002), Commercialisation Progression Model, Brisbane, Australian Institute for Commercialisation.
34. 34 VItal
Figure 5
Commercialisation Model
STAGE 1
INVESTIGATION
STAGE 1
INVESTIGATION
TECHNICAL ANALYSIS
• Define concept
• Confirm critical
assumptions
• Survey state of the art
• Identify critical barriers
• Evaluate applicability
• Determine technology
MARKET ASSESSMENT
Conduct market overview:
• Identify pricing
structure
• Identify market barriers
• Identify risks
• Identify distribution
channels
• Identify trends &
competitors
VENTURE ASSESSMENT
• Estimate profit
potential
• Conduct self, enterprise
& commercialisation
assets
• Identify professional
needs
• Identify capital needs
• NABC
STAGE 2
FEASIBILITY
TECHNICAL FEASIBILITY
• Develop working model
• Test technical features
• Assess preliminary
manufacturability
• Conduct manufacturing
assessment
• Assess safety &
environmental features
• Finalise designs
MARKET STUDY
• Identify and quantify:
• Market size
• Customers
• Volume
• Prices
• Distribution
• Competitors
ECONOMIC FEASIBILITY
• Formulate financial
assumptions
• Develop pro forma
• Identify seed capital
• Form advisory team
• NABC
STAGE 3
DEVELOPMENT
ENGINEERING PROTOTYPE
• Develop prototype
• Identify materials &
processes
• Conduct tests
• Develop manufacturing
methods
STRATEGIC MARKET PLAN
• Identify marketing team
• Define target market
• Select market channels
• Field test
STRATEGIC BUSINESS PLAN
• Decide venture or license
• Finalise intellectual
property
• Identify management
team
• Select organisation
structure
• Write business plan
• NABC
STAGE 4
INTRODUCTION
PRE-INTRODUCTION
PROTOTYPE
• Develop production
prototype
• Determine production
process
• Select manufacturing
process
• Design field support
system
• Demo product
features
MARKETVALIDATION
• Establish market
relationships
• Conduct limited sales
• Analyse sales
• Survey customers
• Refine marketing
BUSINESS START-UP
• Establish business
functions
• Hire staff
• Execute contracts
• Secure 1st stage
financing
• NABC
STAGE 5
GROWTH
PRODUCTION
• Prepare commercial
design
• Establish quality
control
• Construct facilities
• Conduct full-scale
production
• Finalise internal
distribution system
SALES & DISTRIBUTION
• Expand distribution
• Analyse competitor
response
• Assess customer
satisfaction
• Assess distribution
satisfaction
• Refine product
features
BUSINESS GROWTH
• Monitor enterprise
position
• Hire & train personnel
• Execute contracts
• Arrange 2nd and 3rd
stage financing
• Institute vision,
mission &
management policies
• NABC
STAGE 7
MATURITY
PRODUCTION SUPPORT
• Maximise production
• Establish after-market
support, repairs & spares
• Warranty service
• Implement training
programme
MARKET DIVERSIFICATION
• Develop market retention
• Establish market scan
• Identify new markets
• Identify new products
BUSINESS MATURITY
• Establish SWOT
• Invest profits
• Monitor product life
cycle
• Monitor business trends
• Monitor management
technologies
• Implement innovations
• NABC
STAGE 2
FEASIBILITY
STAGE 3
DEVELOPMENT
STAGE 4
INTRODUCTION
STAGE 5
GROWTH
STAGE 6
GO TO
LAUNCH
GATE
1
if no
GATE
2
if no
GATE
3
if no
GATE
4
if no
GATE
5
if no
STAGE 7
MATURITY
STAGE 1 DEVELOPMENT PHASE COMMERCIAL PHASE
VITAL PROJECT
35. IDEAS CONNECTED TO BUSINESS 35
• Stage 1 contains the following Investigation
actions: technical analysis; market assessment;
venture assessment
• Stage 2 contains the following Feasibility actions:
technical feasibility; market study; economic
feasibility
• Stage 3 contains the following Development
actions: engineering prototype; strategic market
plan; strategic business plan
• Stage 4 contains the following Introduction
actions: pre-production prototype; market
validation; business start-up
• Stage 5 contains the following Growth actions:
production; sales and distribution; business growth
• Stage 6 is Go to Launch: pre-launch; launch; post-
launch evaluation
• Stage 7 contains the following Maturity actions:
production support; market diversification;
business maturity.
7.2 New venture priming capital
Priming capital is sometimes needed when a business
venture or product development is still in the early
stage. Such a venture is generally at a pre-revenue
stage and this capital is required to enable research
and development of a product, service or market so
that technical feasibility can be established, the
market further validated to start generating revenue,
and attract the attention of further funding from
banks, business angels and venture capitalists.
Banks and other investors view priming capital as a
risk investment and therefore are usually not
interested in providing financial support at this early
stage.They usually want to wait until a business is a
little more mature before making the larger
investments that typify the early stage financing of
the venture. It is therefore difficult, if not impossible
to progress a conceptual stage venture without
priming capital.
Most entrepreneurs and promoters of conceptual
stage ventures cannot access priming capital and the
business therefore does not progress. Although this
kind of capital is usually considered risky investment,
it is broadly acknowledged that it can reap major
rewards if and when the company becomes a growth
enterprise.TheVITAL Project provides opportunities
for those ideas which have been successfully
matched, and where deemed appropriate, to apply for
priming capital.TheVITAL project NewVenture
Evaluation Committee reviews priming capital
applications and decides to allocate priming capital
to suitable eligible ventures.
Ventures are selected for the priming capital on the
basis of initial written applications by the
SME/entrepreneur, coupled with the outline business
plan developed by the external consultants. Each
application is considered on a case by case basis, with
the potential for iterative improvement and
resubmission for those unsuccessful.The criteria
considered by the project board include:
• Prototype development
• Identifying suitable channels to international
markets through exceptional market visits
• Assessing the suitability of product/service
offerings for new markets
• Identifying suitable business revenue models
• Reaching firm conclusions regarding the viability
36. 36 VItal
of the proposed business e.g. sectoral expertise
input, trade event, etc.
• Customer identification and engagement/visit
• Customer trials / surveys / evaluations.
VITAL complements existing offerings from state
agencies. Looking at the example of Intertrade
Ireland, it can feed into some of its existing offerings
in particular, the Equity Network (All-Island Seedcorn
Investor Ready Competition and Business Angel
Finance and Networks) and the Innova Programme
but also the Fusion Programme in time, particularly
when an existing company is being used as the
implementing agent for theVITAL idea.5
The application and decision making processes
around awarding the capital is open and transparent.
7.3 Case examples ofVITAL Project model
implementation
The rest of the report looks at fourVITAL
implementers that are involved in the following: a
new venture resulting from matching an idea
generator and entrepreneur (EazyIce); new product
introduction resulting from matching an idea
generator to an SME (Shnuggle); complete
technology acquisition (Viltra), and; exclusive
technology licensing (Gem Plastics).
5
www.intertradeireland.com/equity, www.intertradeireland.com/innova and www.intertradeireland.com/fusion.
37. IDEAS CONNECTED TO BUSINESS 37
CONNECTING IDEAS TO
BUSINESS
The cases of EazyIce and
Shnuggle
38. 38 VItal
8.1 Introduction
EazyIce is a new company by John White
of Sea Ice (the idea generator) and Dermot
Short, an experienced entrepreneur (the idea
implementer) to licence, manufacture and sell ice
machines to the fishing and fish processing
industries outside Ireland and Norway. It was formed
as a direct result of their participation in theVITAL
Project. EazyIce will manufacture and sell the
machines under licence from Sea Ice. EazyIce will
focus on establishing a network of distributors
globally and set up a volume manufacturing facility
to service this demand when it arises. It will also
support the distributors by designing solutions
tailored to the needs of their marketplace and
provide training on products, installation, service and
ice-making solutions.
8.2 The idea generator
John White is an experienced marine engineer who
developed a new concept in ice machine technology
and formed an ice-making machine business in 1989,
initially to solve the problem of ice shortage at the
local fishing harbour. It has since expanded to supply
on-board and harbour ice machines to Irish fishing
fleets on both sides of the border and has been
exporting to Norway since 2003.The company does
not actively promote or sell its products and sales
come from word of mouth and a distributor based in
Norway.To date, the ice machines have been built
and sold in small volumes by the machine designer
from his own workshop. John has developed a range
of ice making technologies based on both freshwater
and seawater input.The range covers both land and
on-board vessel use powered by electric and
hydraulic means as indicated in Figure 6.
It was throughVITAL that I was able to make a connection
with a partner that was right for me and then having done
that it provided a structure in which to develop that
partnership.VITAL not only developed the relationship
with the two parties but is nurturing that relationship and
putting structures and project plans in place to take it
from just a relationship into a company.The priming
capital has given the start-up a shot in the arm to project
it forward quickly, through high speed and performance.
EazyIce wouldn’t happen without that.
Dermot Short, Managing Director, EazyIce
8. EazyIce:The formation of a
new venture
8. EazyIce: The formation of a
new venture
39. IDEAS CONNECTED TO BUSINESS 39
Figure 6: Range of available ice machine products
Highly specialised equipment is not required as a well-equipped engineering workshop with weld, turning and
milling facilities is adequate in addition to special jigs and fixtures.
The target market
This ice technology is currently aimed primarily at the seafood industry, but has application in aquaculture
and other food production areas such as abattoirs and meat processing plants. It also has potential in other
agri-food, clean technology and chemical engineering sectors.The potential market is growing and globally
there are only a small number of major manufacturers mostly concentrating on larger machines or very small
ones.The medium industrial range tends to be smaller versions of the much larger machines. Currently, Ireland
and Norway are John’s two biggest markets but he also serves the UK, French, Belgian and Australian markets
to a lesser degree. Over the years, John has attracted interest from the Southeast Asian, African and South
American markets. Exporting to these regions would have required expanding the scale of operations.The idea
generator joined theVITAL Project to look for a joint venture or to license off some of the business in terms of
(1) certain designs for all geographical areas or (2) entire designs for certain geographic areas.
Land Use
LB25 – 2.5t/d
LB25W – 2.5t/d
LB103 – 1.25t/d
LB101 – 1t/d TE25 – 2.5t/d
TE25T (tropical)
TH25 – 2.5t/d
TH25T (tropical)
TE103 – 1.25t/d
TE25 – 2.5t/d
TE25T (tropical)
Electric Hydraulic
SeawaterSeawaterFreshwater
Electric
Boat Use
40. 40 VItal
Screening
In order to pass the first screening stage, the idea had
to satisfy the following: (1) should be able to be
commercialised within the duration of theVITAL, (2)
the originator had the right to disclose the idea, and
(3) should have potential commercial scale to
interest implementers in the six Republic of Ireland
border counties and the area outside Greater Belfast.
After passing through the initial stage, it was then
subjected to a more detailed screening exercise under
the following:
• Whether it addresses a market need or solves a
problem
• Whether there is likely to be a market demand
• Whether it fits into a new-to-
company/region/sector/market context
• Whether there is potential for competitive
advantage
• Whether the stage of development versus the
time to market is acceptable
• Whether the level of risk involved is acceptable
Once the idea has satisfied all the six concerns, the
idea is progressed by developing a light business case.
8.3 Business case development
In developing the business case for the ice
technology idea, consideration is given to the issues
of establishing a market size, competitive analysis,
pricing levels, required investments, product life cycle,
value proposition, potential and likely blockages,
market entry and suggestions to roll out the product.
Each of these issues is elaborated upon.
Establishment of a market size with market segment
considerations
Global consumption of seafood has doubled over the
last 50 years and with the growing world population
it is estimated an additional 42 million tonnes of
seafood will be required by 2030. China produces the
most fish, followed by Indonesia, the US, India and
Peru. 19 countries each caught over 1 million tonnes
each, accounting for 75% of the global catch.6
According to the FAO, in 2012, there were around 4.7
million fishing vessels (3.2 million vessels were
considered to operate in marine waters and 1.5
million vessels in inland waters). 45% of these vessels
were motorised and less than 12m in length.
Continental and national breakdowns of tonnage and
motorised vessels under 12m suggests a scope to roll
out the idea generator’s product range on a license
basis across key strategic markets but this requires
further assessment on geographical markets to
determine licence territories with some key
considerations being the proximity of the market,
local labour assessment, communications,
competition and service planning.
Market attractiveness and competition analysis
This considers the target market, profitability, market
growth rate, and analysis of the competition in the
target market.
Target market:The primary target is small fishing
trawlers who require ice to properly chill fish while at
sea.This is a vast global market which looks at
developing countries experiencing industrialisation as
well as those experiencing growth as the company’s
6
FAO (2012): FAOYearbook - Fishery and Aquaculture Statistics 2012. Available at
ftp://ftp.fao.org/fi/stat/summary/YB_Overview.pdf. Accessed: 30 March 2015.
41. IDEAS CONNECTED TO BUSINESS 41
two key markets are not within the top 10
geographical markets. Outside this primary market,
there are opportunities in land-based operations to
chill products at remote events or on ongoing
commercial basis.
Profitability: At this early stage of business
assessment, decision is informed by illustrative
modelling considering the cost of development,
projected profit analysis and indicative rate of return;
the values purposely precluded from this report .The
ice machine is already successfully established in the
domestic market and some expenditure is required of
any licensees to modify production facilities and
obtain the license.The indicative projections suggest
the business can be profitable at the onset for the
licensee resulting from such factors as the predicted
volumes being achievable with suggested prices and
the ice machines being manufactured, marketed and
distributed by the licensee.
Growth rates of market: In considering the target
market, it is projected that in the short to medium
term, there is significant scope to grow the market
through exports as the geographical diversity of main
fish producers with 19 countries producing over a
million tonnes per year.The best route to grow the
overseas market lies in licensing the product to
regional operators in due course or through joint
ventures and the use of regional distributors.
Competition analysis:The ice machines can produce
fluid ice which is considered better than both flake
ice and block ice and can be used for stowed fish in
containers.There are a number of competitors in the
industry who tend to concentrate on larger fishing
vessels leaving the idea generator to carve a niche
within the market.The strengths of the ice machine
idea generator are in the technical abilities in making
products that have both freshwater and seawater
capabilities.The core equipment design is
revolutionary in the ice-making industry in that the
machines are physically smaller, lighter and use less
power than competitive machines with the same
output.The opportunities are vast considering the
large range of products across the different ice types
in a geographically diverse market.There is no clear
market leader and no specialism in small trawlers
which all play into the hands of an ambitious and
technically-capable global expansion.The unique
selling proposition in order to develop product sales
across geographically diverse regions implies the
promoter will need to focus on product
differentiation within the chosen market sector of
small trawlers to build brand awareness.This should
be in addition to the present unique selling
proposition of familiarity with customers and around
the clock customer service and support.
Pricing the product for customers
The product has already established prices depending
on the type of machine but a quick rollout across the
diverse geographical areas requires refining the price
model; especially in countries such as China and
wider Asia where cheap substitutes prevail.The local
assembly of these machines to make use of low
labour costs is seen as an imperative.To establish the
price points across geographies, it is necessary to
establish what products are on offer and how they
are priced in order for the machine price to reflect
the local competition.
42. 42 VItal
Minimum cost to progress versus total investments
required
The minimum capital and development cost for idea
implementer to progress the product is calculated
using the following inputs:
• capital expenditure,
• technical specification costs (project management
and product development),
• development costs (training and development,
testing and validation, research),
• legal and professional costs (due diligence, legal
contracts, IP costs, consultancy fees),
• contingency.
As a range of products is already developed and in
commercial use, the bulk of the expenditure relate to
training and development, adaptation of the idea
implementer’s local manufacturing facility, due
diligence and legal costs.Without a full business plan,
a full market/ customer analysis and certainty
relating to the level of available investment, a fully
adequate commercial plan is not feasible at this
juncture in preparation of a light business case before
matching with an idea implementer.
Product life cycle considerations
The fishing industry will be the main market for the
product, however, the broader chilled foods sector is
a potential market as well as remote events.
Developing countries are a market that forms a
significant portion of the global industry and as these
countries develop, a greater requirement for proper
consistency of ice will increase the demand for
quality ice machines. As exotic fish have to be caught
from distant waters, the need for quality ice becomes
a prerogative for fishing trawlers and these ice
machines are anticipated to generate future sales
from such sources.The various types of licensing
arrangements required for rolling out the machines in
international markets coupled with a focused
marketing plan to establish the brand in more
markets should benefit the company in gaining a
foothold to make the business sustainable over the
long period.With an attractive margin for licensees
with a material scope to increase profitability, the
scale of the global fishing industry should serve as a
magnet to attract potential licensees.
Innovation value proposition
The initial market for the product is in fishing
trawlers requiring on-board ice and there is
considerable competition in the sector but by
targeting smaller fishing trawlers, the ice machines
that run electronically or hydraulically producing soft
ice that is the most effective way of chilling fish.The
promise of an ability to stay at sea for a longer
duration because fish is chilled in a uniform manner
for the entire duration using an ice machine that can
operate using the boat’s engine to drive a hydraulic
system to minimise cost provides a value proposition
that is innovative.
Likely and potential blockages
Likely and potential blockages that can be mitigated
through better specification, market analysis,
investment, business planning and technical
arrangement are considered either on the promoter’s
side or the market side.
Promoter side: Concerns from the promoter side that
require assessment stem from the following areas:
• general risk associated with deploying a product
into a new market by way of assessing how the
