Heriot-Watt University & Technology Transfer

Gillian E McFadzeanDirector

Technology & Research Services

Research Profile

Operates strongly in niche areas:

Science - Engineering - Management - Languages

Major international player in selected areas

Upstream petroleum engineering Applied and actuarial mathematics Photonics science and engineering Microengineering and materials engineering Logistics Underwater systems engineering

415 academic staff; 241 PDRAs; 390 PhD students

From “Blue Sky” to “Applied” research

Increasing Certainty about the Value of the Knowledge

Industry:-Economic Growth

IncreasingCertaintyabout theValidity ofthe Knowledge

Research Councils

Blue Sky Basic Applied

Industry Links

“A series of companies linked by a corridor”

40 % research income from industry

Technology Transfer embedded in teaching & research

Strategic alliances with industry with joint research agenda

Consultancy @£1 million per annum; CPD @ £0.5 million

Excellent links with small companies

Research Survives?

Petroleum Engineering 80% funded by industry World leader in training and consultancy RAE – 5* Twice

Technology Transfer Strategic Backdrop

1.Pre 1995 close organic links with industry - research, consultancy, CPD, students, exchanges

2.1995/6 - Commercialisation Strategy for ScotlandObjective - economic development by creation of new companies from universities

3.Scottish Enterprise targets = spin-outs from universities!

4.2001 - Strategy revised to include licensing to existing Scottish owned companies…………….

Why Transfer Why Transfer Technology

University

Utilise inventions for public good & benefit

Develop Technology

Benefit local & national economy

Reward, Retain & Motivate Academics

Revenue generation (?)

To induce closer ties to Industry

Industry

Revenue Generation

Strategic Advantage

Benefit local economy & UK

Input to student training = future employees

Policy Framework

IP generated by staff is owned by the University

External Policy

Policy Framework

UK & Scottish Executive & Universities

& Scottish Enterprise

&

professional KT groups in UK

Funding

Shefc & University & economic development agencies

Establishing Technology Transfer

• Create order from successful chaos

• Bring 3 independent functions together

• Establish policy framework – and get it accepted!

Technology & Research Services

An integrated unit to support the:

• Delivery of world-class innovative research that meets the needs of business & industry

• Transfer of knowledge

• Commercial realisation of ideas

• Generation of income for the University and for the academic community

• Growth of the local and national economies

Technology & ResearchServices

Working with colleagues TRS : Provides research support and commercialisation services to Heriot-

Watt University staff. Promotes the transfer of knowledge by developing collaborative links

between industry and academia, through collaborative research, technology licensing, the delivery of training and consultancy services

Promotes University expertise and services to industry Develops enterprise skills in staff and students

Works within an agreed strategy

TRS = Integrated Functions

ServiceFunctions

Enterprise Functions

Research funding and information Management information on research & TT Environment scanning -political & market industry connections Project management IP portfolio management & valuation Contract negotiation, drafting, agreement of terms Management of TT process Invention disclosure Identification of exploitation route Patent application & prosecution Agree terms for Licensing/options/business creation Allocation of income/equity Agree staff secondments & access to facilities

Research & TT are Research & TT are integratedintegrated• Research Planning & large initiatives

• Research funding support - eg active EU management

• Identification & negotiation of IP in contracts

• Projects are tracked for IP foreground and back ground

• IP exploitation route is decided as research project ends

• Exploitation route protects the research base

• Strategy for company relationships

• Company needs are identified and matched to HWU expertise

•

Technology & Research Services

IP & Contracts

Legal Manager

EU Funds

Research Funding

Information & P lanning

Head Research & Legal Services

SME Business Developm ent

CPD O fficer

Marketing Assist.

D irectorCPPD

Vice Rector Secretary

Junior Sexcretary

Secretary

O ffice Administrator

Broke r

Broker & Student EnterpriseE

Technology Transfer Manager

G illian McFadzeanD irector

Knowledge Transfer

Information People

Technology Products

Knowledge Transfer

Knowledge Transfer Partnerships

Life Long Learning /Continuing Professional Development

Technology Transfer

Technology Transfer

Consultancy

Consultancy

Internal Decision Making:

Fast and Clear

Policy Framework & budget

Director +Rector’s group

Identification of commercial opportunity

Research/Legal /IP team & TT Team

Exploitation Routes & Valuations

TT team

Director + Internal/external panel

Implementation & Commercial Terms

TRS (me!)

Collaborative Research with Industry

Developed industrial strategy

Find industry partners & form strategic alliances

Create the legal framework & protect the IP

Negotiate the commercial terms

Project oversight & dispute resolution

Management information to University

Knowledge Transfer

• Providing solutions for industry

• Matching business needs to HWU expertise

• Sales of facilities/ services

• IP advisory service for SMEs

• Business development advice for SMEs

• Technology audits

• Creating funded research & training links

Continuing Professional Development (CPD)

• Identifying market opportunities and shaping strategy

• Marketing & setting financial targets

• Advice on pricing, organisation and marketing of CPD courses

• Hands on assistance

• Course completion certificates & evaluation questionnaire

• Management information to University

Consultancy

• Identifying market opportunities and shaping strategy

• Marketing & agreeing financial targets

• Establishing consultancy fee charges & other costs

• All contractual and legal matters

• Invoicing, cost recovery and fee payment to staff

• Project oversight and

• Dispute resolution

Heriot-Watt Trading Ltd

• Oversight on behalf of Board of Directors

• Recommendations on incorporation of units as companies

• Establishment of units as precursors to companies - quasi- incubators

• Recommendations on cessation of trade

• All contractual and legal matters

Legal & Intellectual Property (IP) Support

• All commercial contracts - legal responsibility, negotiation, drafting, recording

• Confidentiality / Non-Disclosure Agreements (NDA’s)

Intellectual Property

• Provision of advice on Protecting IP - Patent, Design, Copyright, Know-how

• Patent Filing, (drafting patents) Design Registration & Prior Art Searches

• Management of the patent process

Transparent & Equitable

Standard processes for; Cost identification Management of staff KT activity Revenue sharing Equity participation in new companies Secondment of Staff Appointment of Directors to spin-outs Conflicts of interest Access to University facilities

Invention

Preliminary Market

Research

Exploit

Prior Art

Search

Summary of Invention

Business Case

Market Research

Review Board

Exploitation Route Identified & Progressed

Exploitation

Exploit

Patent Application Drafted & Filed

Updated Business Case

Review Board

Exploit

Discuss with Inventor

Yes

Yes

Yes

No

No

No

Technology Transfer Flow Technology Transfer Flow ChartChart

Heriot-Watt Results-Companies 1999-2005

Pre 1996:Edinburgh Edinburgh Edinburgh Business School Instruments Petroleum

Active:2Ei Anitec CAS Easier Events Helia Photonics Nitech Interactive University Microstencils Nandi Pavement Technology Seebyte Sistech Scotweave Verbalis IceRoboticsPowerPhotonics SurCHAssisted Student Companies: Aquapharm Conjunct Scotwave

Sold: Senstech Medical Laser TechnologiesLiquidated: Multiverse Terahertz Web4test

Benefits to the Inventor

• Financial• Licensing income• Equity in new company• Director / Consultant Remuneration

• Furtherance of Research• Financial income• Additional resources (researchers, equipment)• Contacts/network

• Reputation Enhanced

• Satisfaction of Commercialisation of Invention

• Broader Experience

Heriot-Watt Benefits - Maybe?

• Government policy requires/applauds

• Greater influence on government policy for R&D

• Staff better equipped to understand industry needs/ethos

• Students better equipped for working in industry

• Lo.o.o.o.ng term equity (and patent) investment

• Licence income - MIT = 3% of turnover!

• Industry more likely to listen and to value?

Benefits to the University

Financial • Equity – when we sell!• License fees – if we can recover!

Staffing • Research Associates with new skills• Attracts entreprenuerial staff

Contacts• Government / Funding Organisations / Industry

Reputation & Mission• As entrepreneurial centre = More attractive to future students & staff

Everyone Benefits

A win-win situation

• Greater understanding

• More influence on government - together

• Increased skills levels - academic & industry

• More investment & more success

• Better quality of life