# Presentation: 717064

## 6th Annual NIH SBIR/STTR ConferenceCommercialization Hurdles& SolutionsOr: Money isn’t the (only) answerJanet Yancey-Wrona, PresidentMaine Technology Institutewww.mainetechnology.org

## Maine Technology Institute (MTI)

**Statute:** Established 1999
-                    MRSA: 5 c407, sections 15301, etc.
**Purpose:** To encourage, promote, stimulate and support *research and development activity* *leading to the commercialization* of new products and services in the State’s seven targeted technology sectors.
- Enhance the competitive position of those sectors
- Increase the likelihood that the sectors will support clusters of industrial activity
- Create new jobs for Maine people

## MTI Accomplishes its Purpose

- _Direct Investments_ in Promising Technologies
- Three Competitive Award Programs cost-share R&D leading to commercialization.
- Over 400 Projects approved for funding
- Over $17,000,000 committed
- Matched by over $25,000,000
- _Commercialization assistance*_ to provide intensive training and mentoring for new product or service commercialization.
- _Technical Assistance and Outreach_ to increase awareness of, and participation in, the federal Small Business Innovation Research (SBIR) Award and other federal grant programs.
- _Commercialization Workshops and One-on-One Business Mentoring_ to help advance products to market.
**Funded, in part, by the US SBA FAST program*

## MTI Resources

**Appropriation:**
- Approximately: $5,500,000 annually
- administrative cap: 7% ($385,000)
- Grants & Contracts:
- $250,000 over two years from US SBA F.A.S.T.
- Collaborations & Contracts: increase outreach and effect through synergism with other’s strengths and resources:

## MTI Partnerships

- Applied Technology Development Centers: Directors serve on MTI review boards and function as Tech Trackers.
- Private Consulting Firms provide one-on-one SBIR/STTR assistance.
- Maine Manufacturing Extension Partnership: financial administration for MTI and one-on-one business consulting.
- Maine Small Business Development Centers: business planning assistance focused on technology-based companies.
- Market Development Center: government procurement.
- Patent Program: coordinate to maximize service for intellectual property protection assistance.
- University of Maine System: Involved with over 50% of MTI Recipients, and nearly all Cluster Enhancement projects.

## Slide 6

## Commercialization Steps:Each step is a multi-layered hurdleEach hurdle has a multi-layered solution

- _HURDLE_
- Technical
- Market
- Business

- _SOLUTION_
- Skills / Personnel
- Facilities / Equipment
- Funding

## MTI

**MTI**

- (From Innovation to Invention: Commercialization of New Technology by Independent and Small Business Inventors, DOE, 1989)

- SBIR

## Technical Hurdles

- Concept
- Model
- Prototype
- Test
- Refine
- Prototype Production
- Scale-Up
- Pilot Production
- Testing
- Modifications
- Full Production

## Technical Solutions

- Skills / Personnel
- Inventor
- Technicians
- Engineers / scientists
- Facilities / Equipment
- Laboratory / garage
- Incubator / pilot production
- Production facilities
- Funding
- Friends and Family
- Boot Strap
- Grants
- Development Agreements

## Market Hurdles

- Market Definition
- Product differentiation
- Market Barriers
- Market Penetration strategy
- Full marketing plan
- Competitive analysis
- Product pricing analysis
- Product positioning
- Customer contacts
- Advertising
- Distribution
- Customer response

## Market Solutions

- Skills / Personnel
- Market Analysis – consultant?
- Marketing – VP or other employee
- Sales Staff
- Facilities / Equipment
- None needed
- Funding
- Boot Strap
- Working Capital?
- Commissions

## Business Hurdles

- Funding strategy
- Working capital
- Development
- Growth capital
- IP protection
- Full Business Plan
- Put it all together – development, market, finances
- Legal business formation
- State and federal regulation compliance
- Insurance
- Personnel growth plan
- Monitor costs, cash-flows

## Business Solutions

- Skills / Personnel
- Business Plan Development – free assistance (SBDC, advisory board)? consultants?
- Attorneys – IP, governance, corp. structure, contracts, employment, regulations
- Management Team – CEO, CFO, VP Mktg
- Facilities / Equipment
- Office Space
- Funding
- Boot strap
- Private investment – equity
- Debt financing

## Success Story – Development

- Concept developed at UMaine - 1997
- Funded through federal grants to UMaine
- Company founded by UMaine faculty – 2000
- Spun-out into incubator = access to business assistance
- Maine Technology Institute (MTI) Seed Grant funding for initial market analysis using Manufacturing Extension Partnership expertise
- IP protection in place using Maine Patent Program
- Product Development funding from MTI matched by UMaine time and materials
- Company founder’s learn business skills - 2002
- Commercialization Workshops attended
- Initial Customer contacts made
- Business Incubation experience
- SBTDC assists in customer and employee negotiations

## Success Story – Capitalization

- Founder’s seek Other People’s Money (and expertise) – 2003
- Presentation at investor’s forum
- Individual investment = $100,000
- Investor = forms interim management team, solidifies business plan
- Customers contacted - 2004
- Team contacts decision-makers
- Team closes deals!
- Additional funding sought - 2004
- Another $50,000 closed
- Development Contract with customer closed for $100,000 + min commitment to purchase
- Significant discussions underway

## Commercialization Hurdles & Solutions – Final Remarks

- This is the hard part!
- Be persistent!
- Work iteratively and multi-dimensionally.
- Do your homework –
- Identify your need appropriate to your industry and stage of development
- Find resources that match your needs
- Think creatively – there is no one right solution.
- Build an overall strategy to best utilize existing resources.