Technology Transfer.Why and How.

Dr. Eugene Buff

UsTech TM (устехTM ) Discovery LLCTECHNOLOGY DISCOVERY & COMMERCIALIZATION COMPANY

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Introduction

2 МОЛГМИ, МБФ, Биохимияк.б.н., Институт Биологии Гена, РАНPostdoc, Harvard Medical School

Since 1999 – technology transfer, business development consultant

Founder & President, Primary Care Innovation ConsultingCo-Founder, UsTech Discovery LLC

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Definitions

Technology Transfer Effectiveness is the degree to whichresearch-based information is moved successfully from oneIndividual or organization to another.

Journal of the AUTM, Volume XII, 2000

Technology – the totality of the means employed to provide objects necessary for human sustenance and comfort.

Webster’s… - the application of scientific knowledge to the practical aims of human life or, as it is sometimes phrased, to the change and manipulation of the human environment.

Encyclopædia Britannica

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Product Development Timeline

10+ Years Up to

$100MM

1. Could we be more efficient?2. Could we move faster?3. Could we save (spend less!) money?

Starting Point: Addressing Conflicting Values and Common Interest

Source: Louis P. Berneman, 1999

UNIVERSITY INDUSTRY

Commercializationof New and Useful

Technologies

Teaching

Research

Service

Profits

Knowledge for Knowledge’s Sake

Management ofKnowledge for

Profit

ConfidentialityLimited Public

Disclosure

DevelopmentR&D

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Marketing. Why it is important? All inventions/innovations are ‘genius’…

Technical people/ inventors can’t talk about them objectively.

Я (имя)…, изобретатель, г. N-cк.  У меня есть изобретение  «…». Патент RU №1234567. Аналогов в мире нет. Это лучшее изобретение 21 века в области механики. Моя технология вытеснит с рынка все ныне используемые технологии, как двигатель внутреннего сгорания вытеснил с рынка паровой двигатель….

Сейчас в мире нет пионерных изобретателей в области механики. Я один. К тому же нет настоящих экспертов. Армия дипломированных специалистов, называемых экспертами, на практике только для отчётности. Помните о роли личности в истории. Через несколько лет меня признает Америка, а за ней другие страны лучшим изобретателем 21 века. Мне присвоят разные премии и награды, но у меня не будет прав на мои изобретения. Премии и награды это ничто по сравнению с правами на изобретение. Россия будет внедрять мою технологию самой последней…  Если мне в США предоставят Конструкторское Бюро и Экспериментальную Базу, то через год я предоставлю для США Эффективную систему ... Я допускаю, что переоцениваю свои способности. Время покажет.

Marketing. Why it is important? (2) Great innovations could fail:

◦ microwave oven – first in 1947 (Raytheon)

◦ PDA – first in 1992 (Newton by Apple)

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Marketing Needs to Communicate Value

Good, Patentable Science is Not Always Commercially Relevant

Lack of Market is a Deal-killer

Not Only Marketing. Who is this man?

Kane Kramer

Not only Marketing. Be on time.

Marketing. Why it is important? (3)

Steven Johnson, How We Got to Now.

First time played back at the Lawrence Berkeley National Laboratory in 2008

Blind Spot Story

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Successfulproject

Technology• Identifiable assets - patents, trade secrets, know how • Proof of concept - reduction to practice, prototypes• Identifiable applications within the scope of our rights

Market• A business proposition that meets a

market need • Strong technology - market match• Competitive advantage over alternative

technologies• Technology in use: “Proven value”• Large, growing markets for licensable uses

People• A technology champion • Prior business analyses from a

business and/or technology team• Scientists to give industry

presentations• Technical publications supporting the

concept

What’s Needed to “Sell”?

Before starting ...Commercialization is a game of “what does he need” vs of “what have I got”!

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Formula for Success

W – what – understand your technology

W – why – what is the value proposition, why would anybody care…

W – where – “where” are the companies who care are – markets, applications, value chain

H – how – reaching out and delivering the three “W” message

Technology Classification- Product- Process- Systematic (sends, processes,

records, or receives data)

Physical Technology – material objects.Biological – adapts to living things.

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A Technology = A Product

Core Strategic

Time

Enabling

What sells? Three key dimensions:

◦ Value proposition? How does this technology outperforms current best-in-class?? What are the key markets?

◦ Development status / transferability? What was the highest stage of development?? Can you support the transfer with samples? Data? People?

◦ Intellectual Property? How broad, defensible, and detectable are the patent rights?? What are the existing licenses / encumbrances?

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Complete R&D

Design Product

ProductionEngineer

Produce

Market and Sell

Support

Distribute

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COMPANIES’ UNMET NEEDS

Missing feature / performance issue / legislation change

Improve an existing product

Improve price Reduce cost / identify manufacturing efficiencies

Step function change in performance

Monitor next generation technology curves

Wholly unmet need Expand into new “white space”

Target’s Perspective

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Deal Preferences

How well Application is Defined

How well Technologyis Defined

Option or license (IP)

Collaborative R&D,Strategic Alliance

Application/geographyspecific licensing

Venture

Sales, OEM

Control over Use

Control overKnowledgeand Know -How

Buy all Rights,Acquire Developer

Non- ExclusiveLicense

Joint Venture

VentureCapital Exclusive

General License

Exclusive Limited License. R&D agreement, Strategic Alliance

Formula for Success80% presentation & 20% information

Be prepared.

Rehearse.

Timing.

Clarity.

Energy.

Connection.

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Communication Styles

When Selling a Technology

Keys to success

Choose the right technologies (value proposition!)

Well-constructed target list – multiple buyers

Contact with the right decision makers – don’t get stuck

Well-supported technical evaluation

Market-based (and reasonable!) expectations

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Idea Without a Use

Idea With Intent (Business Plan)

Commercial Product/Service

Timeline of an Idea

Need help with transition

Moving Through Stages of Technology Development

Short History Of Technology Transfer

1960-1980 Some patent licensing in US and UK universities; not widespread

1980: Bayh-Dole Act in US begins acceleration of tech transfer, and competence builds in tech transfer offices

Early 1990’s: Many US universities acquire competence; emphasis on spinouts begin; UK government begins increased emphasis on technology transfer, particularly spinouts

Late 1990’s: Japan and Taiwan pass “Bayh-Dole-like” Acts. Singapore, Hong Kong, Germany, Finland, Brazil, China, South Africa, and many other countries begin or strengthen their systems for technology transfer from their universities and research institutes.

2000-2003: Interest in technology transfer is global. Countries look to technologies developed at their universities for economic development in the “Knowledge Economy”

Only 18 (out of 200) territories are net exporters of license fees and royalties. This means that a few people living in less than a tenth of the territories in the world between them receive the US$30 billion of net export earnings for these services.http://www.sasi.group.shef.ac.uk/worldmapper/display.php?selected=99

How to put other countries on this map?

Royalties And License Fees Exports

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Starting point – stereotypes. Trust.- Actively build cross-cultural

relationships- Get outside their comfort zones- Embrace diversity and explore its

potential- Act ourselves towards relatedness- Persistence

Too many meetings/competitions/’mentors’… with the very same participants. ◦ Low return and low practical value. Very little ‘tangible’ results

for the participants

Too many IT and software projects. ◦ Understand the logic (quicker returns & low budget) but: long

term/high value projects are overlooked, underfunded.

Too focused on money (i.e. investment) versus bigger picture – how to grow the business (partnerships, collaborations, strategic investments, etc.)

Too focused on ‘sell’, not enough ‘buy’

Post Soviet ‘specific’.

View from Boston.

License medical technologies from international companies or developers

Manufacture and sell in RF

To do list:- Raise initial funds for licensing.- Access/prepare manufacturing capabilities- Find & negotiate licenses.

Real Project To Consider

Major Problems

“In theory, there is no difference between theory and practice. In practice there is.” Yogi Berra.

"Organizations, like teenagers, are blind to their choices…” Chip & Dan Heath. Decisive.

“Do not teach me how to live, better help me financially.” I. Ilf & E. Petrov. 12 Chairs.

“The probability does not work in real world; it is pay off that matters.” Nassim Taleb. Antifragility.

Now what? Feel free to connect and ask questions:

LinkedIn, http://www.linkedin.com/in/eugenebuff Facebook, http://www.facebook.com/eugene.buff

Next Presentation/Education/Mentoring:

? deep dive into the topics; ? available to speak at conferences, seminars

Consulting Services:

o mentoring on executive summaries & presentationso market assessmento strategy advisemento commercialization assistanceo open innovation – training and implementationo technology scouting

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Eugene Buff, MD, PhDCertified Licensing Professional (CLPTM)Registered Technology Transfer Professional (RTTP)

Founder & President ~ Primary Care Innovation ConsultingCo-Founder, Principal ~ UsTech Discovery LLC

E-mail: eugene.buff@prcareinnoconsult.comSkype: eugenebuff

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