“Commercialising NanoScience”- value creation for research organisations and regions.

ScienceVentures

‘Nanoscience’ - a definition - and its Commercialisation:
Nano = simply x 10-9 metres. So ‘Nanoscience’ is simply the understanding of andthe manipulation of molecules/atoms that are x 10-9 metres in size, or smaller.
1.

Only $0.9b of the total USA $35b total science funding in 2004 was dedicatedtowards nanoscience i.e. only 2.5% of total (source: Nanodot)

2.

The rest of world dedicated $1.8b to nanoscience funding - within a significantlyhigher concentration of focus than the U.S. (source: OECD.) Approx 7% of total.

3.

EU and Japan enjoy a current lead in nanoscience research advancement.

4.

95% of all scientists in the world never within their career achieve an output that
results in a patent, a licence deal or a new start-up technology company.

5.

Of those that do, 85% of those achieve no commercial success. Only 0.75% do so.

6.

The challenge - can EU and Japan commercialise on the nanoscience advantage?

Billy Harkin Keidanren Hall Tokyo Sept05

ScienceVentures

Use tried and tested IPR-commercialisation strategies:‘Commercialisation’ i.e. attempting to make money from new knowledge orintellectual property owned - is widely practiced.
There are several strategic approaches. Including:
••••
•
•

concentration on maximizing local or national knowledge and technology
transfer
concentration on maximizing Licensing income
concentration on maximizing Capital Gain income (company shares)
attempting to balance both of these type of income
concentration on maximizing Research Consultancy income
concentration on maximizing international transactions

Each has its own strengths, weaknesses and implications - chose carefully
Whichever one chosen each Research Centres or IPR-owner must determine andthen follow a clear IPR-commercialisation strategy. ‘Adhoc’ is the enemy.

Billy Harkin Keidanren Hall Tokyo Sept05

ScienceVentures

‘RESOURCING’ is the key:
Having determined an IPR-commercialisation strategy, execution of operationmust followed- MOST Research Centres in the world fail to do so.
The 7 key factors:
1.

make sure that skilled and experience people are leading.

2.

very seldom will researchers be the best people to do so - they have adifferent skill set, different mentality and are usually too busy on otheractivities in any case.

3.

there are only a tiny number of cases in the world where a creator of IPR has
also successfully led on its commercialisation.

4.

researchers and Research Centres failing to accept this statistical reality
are almost certain to ruin their own valuable IPR opportunities.

5.

hire or engage skilled and experience people to lead.

6.

ensure the provision of adequate funding to do the job.

7.

then (under accountability mechanisms) authorize them lead!

Billy Harkin Keidanren Hall Tokyo Sept05

ScienceVentures

Efficient IPR-commercialisation - some metrics:‘Outreach’‘Outcome’

Outreach Activities

Research &Technology Dev,
Contract Research

Licensing

Venturing

Activity

No. of:• SMEs worked with
• Student placements• Companies created• Networking events

No. of:• Research Awards• Consultancy• CPD• Proof of Concept

No. of:• Disclosures• Patent Applications• Patents Granted• Options Granted

No. of:• Business Plans• Joint Ventures• Companies
leveraging of external
investments

Quality

Income in support ofactivities andfeedback

Income:• Research (Public)• Consultancy (Priv)• Etc.

Income fromlicensing, cash or
equity value upon
realisation

Value of equity
realisation

ImpactLongitudinal anddifficult to track

No. of jobs created inHigher Education Ins

Export income, no. ofjobs created

No of jobs created,turnover andrealisation of equity

Only what gets measured gets done!
Billy Harkin Keidanren Hall Tokyo Sept05

ScienceVentures

Efficient IPR-commercialisation ? - Paediatric ultrasound :World-wide adoption point - here
Profit/Loss(lives?/financial?)

18 years! - why?
The first proven useful
invention point - here

6. By 1976 Japanese, American and Dutch companies
begin to distribute the technology globally

4. Queen Mother's
Hospital
opened in 1964
2. young technician Tom Brown
5. Kelvin Hughes
From Kelvin & Hughes
closed in 1966
Scientific Instrument
Company contacts
the Prof
3. Published in The Lancet of
7 June 1958

1. July 21 1955, Prof Ian Donald
Visits the boilermakers
Babcock & Wilcox
at Renfrew Glasgow to be shownindustrial ultrasonic metal flaw detector

Billy Harkin Keidanren Hall Tokyo Sept05

7. June 191987
Prof Donald
died

No structured Methodology, no Process
and no Project Management!

8. Philips led the 2002
worldwide ultrasound market
with a 27% share of
the $2.9 billion
revenue stream

2005* 48 years! after thefirst invention proof

ScienceVentures

Efficient IPR-commercialisation - a pillar of economic growth
The benefits of proactively commercialising science and technology are an
accepted reality:•

Translating basic research discoveries into products for the public good.

•

Generating additional revenue for education and research missions (e.g.
buildings & equipment.)•Recruiting, retaining and rewarding faculty, staff and students.

•Stimulating private sector collaborations.

•Promoting regional and national economic growth.

•Good IPR-commercialisation unlocks opportunities across sectors.
- example ‘FHD’ in both data-communications and biotechnology applications.

Billy Harkin Keidanren Hall Tokyo Sept05

ScienceVenturesSuccessful IPR-commercialization Model (AUTM)
Publications
Ph.Ds

Universities
GrantsPrivate R&D
Basic Research
Inventions
NEXT GENERATIONPRODUCTS
GENERATE EQUITY,ROYALTIES &LICENSE FEES$$

CREATE NEW
SPINOUTCOMPANIES

TenurePatents

PROOF OF CONCEPT$
ROI:
COMPANIES, JOBSPRODUCTS & PROFITS$PRODUCT DEVELOPMENTRESEARCH$$

PROTOTYPEPRODUCT

MAKE TECHNOLOGY‘INVESTMENT GRADE’

TRANSFER TECHNOLOGYTO INDUSTRY

Billy Harkin Keidanren Hall Tokyo Sept05

ScienceVentures

Strategic Research

Fundamental Science

BasicResearchApplied
ResearchProject

Innovation$Idea
Conceptual Risk

Proof of Concept
Technical Feasibility

Development Risk
Market Risk
Management Risk
Growth Risk

Angel/Pre-Seed(Public funding)Billy Harkin Keidanren Hall Tokyo Sept05‘IPR Commercialization’ Phase

Technology Commercialization Life Cycle:

Local Seed
(Public funding)Start-up
Company

Roll-out
Product

Working
CapitalInfusion

Seed
CapitalVentureCapitalMezzanine
CapitalMarket Risk
Management Risk
Growth Risk

Development Risk
Growth Risk

Growth Risk

BridgeVenture Capital

Mezzanine

Successful
CommercialVenture

DebtScienceVentures

Inseparable activities - where all the players have a role:
Market Proximity

Sales and marketing
Regulatory approvalMarketapproval

Later stage development
Early development
Doing the deal

2

Market evaluation
Seeking industrial partner
Reduction to practiceProtect intellectual property
Monitor intellectual property
1
Research
Information and know-how exchange
Scientific entrepreneur

Time

Technology Transfer Office support
Research councils/Public funding

Business angels and Seedcorn providers
Venture capitalists
SME’s (small and medium enterprises)
Large Corporates
Economic Development Agencies

StakeholderInvolvement
Billy Harkin Keidanren Hall Tokyo Sept05

ScienceVentures

Efficient IPR commercialisation - how it should be:

The integrated and professional Project Management of IPR, with clear processes of:•

IPR development•Market development•Technology development

Having;1.

Clear business objectives

2.

Clear plan of exploitation

3.

Financial resources to achieve all of the above

Billy Harkin Keidanren Hall Tokyo Sept05

ScienceVentures

Efficient IPR commercialisation - the Value:•Reducing the Cost and Risk at early stages in the development of newtechnologies.

•Proving the Market value of technologies and their applications.

•Strengthening the initial Technology application - across industry sectors•

Validating the Commercial potential of Intellectual Property Rights•

Expanding the IP portfolio, with well planned IP management strategies

Billy Harkin Keidanren Hall Tokyo Sept05

ScienceVentures

One approach -the SV Model, Methodology, Process and EIPAMtm :A clear well-defined
IPR-commercialisation
process;

to advance the commercial
outcomes e.g.
•
Licences deals.
•New-start companies.
•Joint Ventures.

Billy Harkin Keidanren Hall Tokyo Sept05

ScienceVenturesSummary of key comments and recommendations:•Set the IPR-commercialisation strategy for the Research Centre.

•Set the Metrics and the Target outcomes.

•Fully Integrate the Research and IPR-commercialisation activities.

•Ensure that IPR-commercialisation is professionally handled.

•Authorize and support those leading it to actually lead it.

•Resource the IPR-commercialisation operation adequately.

•Use a structured Methodology, Process and Project Management.

•Be determined and apply sustained effort - ‘execution’ and ‘delivery’ are key.

Billy Harkin Keidanren Hall Tokyo Sept05

ScienceVentures

“Commercialising NanoScience”- value creation for research organisations and regions.

Contact details:
Billy Harkin

Dr Moe Thuzar

CEOCOO

E: bharkin@scienceventures.com

E: mthuzar@scienceventures.com

Billy Harkin Keidanren Hall Tokyo Sept05

ScienceVentures