LIPI Keynote Address Damian Hine final (NXPowerLite)
Experience in the Implementation of
Innovation and Commercialisation
LIPI Technopreneurship and Technology Transfer National Seminar
12th November 2015.
Associate Professor Damian Hine
UQ Business School
Ideas?
These are all patented, but this is NOT what we do.
UQ Successes
Over 30 years of technology transfer at UQ.
Up to 500 invention disclosures a year.
Some Successes:
Gardasil
- sales over $10Bn
Spinifex Pharmaceuticals
- Investment of $1Bn
Triple P (Positive Parenting Program)
TetraQ
Impedimed
Leximancer
- in over 30 countries
- servicing mostly US and Japanese clients
- Market capitalization $254M
- global leader in text analytics
We don’t just do it – we teach it
• Many universities undertake technology
transfer and research commercialisation.
• Few have been successful in integrating it
in to their programs.
• We have integrated commercialisation in
to undergraduate, postgraduate
coursework, and PhD programs
Where have we taken our success?
• Lean LaunchPad – National program for CSIRO
• International programs – Vietnam, Chile,
Panama, Ecuador, Brazil
• Embedded in our teaching programs – Graduate
Certificate in Research Commercialisation; Master
of Technology Innovation Management – you can
only run these programs successfully if you are
already research intensive.
We must remember –
Researchers are not Entrepreneurs
Private
Entrepreneurs
Funding source
Inventors
Innovators
Researchers
Public
Technology
Push
Market Pull
Innovation driver
Researchers are usually doing problem solving science. They will rarely ever meet a final
customer/user/patient.
Innovators can combine the elements of each of the others – but are VERY RARE.
Whe resear hers do dis o er so ethi g…
What do I
do with it?
Who will
use it?
It is commercially
viable?
I discover
something
What’s next?
How do I get
out of it?
Does viability
matter?
Helping
researchers by
lighting a pathway
Do I expand it?
How do I
protect it?
Do I develop
it?
How do I
fund it?
How much will
development cost?
Do I protect it?
How do I
develop it?
How long will
it take?
Who will
help me?
CRICOS Provider Number 00025B
The Twelve Steps
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Public/private good discussion – decision on mix
Commercial viability or non-commercial value – societal, spiritual, justice, QoL value
Types of IP – it would be very rare that it is unique – fit for purpose
IPRs and Protection types or not - Level of disclosure, cost and complexity, what
requirements of each type of IP does it meet
Who owns the IP – where do you sit, what contractual arrangements are or should be in
place?
Advice and support – pate t attor eys, la yers, te h i al support, fi a ial…
Market/audience $ and or size, growth, penetration. Not just macro-market, but your actual
market.
Competitors and/or collaborators – know the cauldron are you entering.
Pathways – compare possible alternatives and decide – start-up, license, JV, SA, spin-off…
Development cycle – how long, how much, how hard, how complex
Horizons – one to three - looking in to the future for disruptions
Supporting financials – including valuation, funding, cost of protection, market revenues.
Public/private
good –
decision on
mix
Where does your idea/technology sit?
One of the best ways to define the
commercial (or non-commercial) viability of
a technology is to assess its excludability
and its rivalry.
FOUR TYPES OF GOODS
Rival?
Low
High
Private Goods
High
Excludable?
Low
Collective Good
Full cost
vaccines
in to US,
Europe
Free
vaccines
in to
Myanmar
Common Goods
?
Low cost
vaccines
in to
Myanmar
Public Goods
Rivalry - Does o e perso ’s use of the good di i ish a other perso ’s a ility to use it?
Excludability - Can people be prevented from using the good?
Demand side and supply side can see things differently.
You can indicate single or multiple
sites and sizes.
Rival?
Low
High
Collective Good
High
Private Goods
Time
3
Excludable?
Common Goods
Low
Time
1
Time
2
Public Goods
Commercial
viability or
noncommercial
value
Societal
Value
Public Good
Viability - What type of value dominates?
Commercial
Value
Private Good
Low excludability
High excludability
Low rivalry
High rivalry
De-risking the venture is essential,
but needs time and progress.
Value
$$
You want
to be are
here
You
are
here
Risk
or
here
Proof of
Principle
Proof of
Concept
Working
prototype
Manufacturing
prototype
Market launch
Moving up through the
Technology Readiness Levels
You
want to
be here
How
long
will it
take?
You
are
here
Questions to ask yourself:
Where are you now
(viability)?
How far do you want to take it
yourself (Exit strategy)?
By when (Devt Cycle)?
With whom (Collaborators)?
With whose help (Advice and
Support)?
What will it cost (Financials)?
What’s next Horizons ?
Who owns the
IP – where do
you sit,
contractual
arrangements in
place?
UQ – Who Owns it?
9. Reward for Staff Contributors
9.1 The University wishes to encourage innovation by rewarding staff,
students and visitors who create valuable IP ("contributors"), regardless of
whether that IP vests in research or teaching materials. The University will
ensure that the Net Proceeds of Commercialisation are distributed with
one-third to the contributors, one-third to the relevant
Faculty/Institute and one-third to central University funds.
"Net Proceeds of Commercialisation" means the total of net cash revenues
received from commercialising the IP (including royalties, license fees,
milestone payments, dividends and proceeds from the sale of shares but
excluding R&D funds, consulting funds, returns from direct investment by
the University or a Commercial Company, and any encumbered revenues
until the encumbrance is lifted). Net Proceeds of Commercialisation are less
all expenses incurred by or on behalf of the University in respect of
commercialising the technology that have not previously been recovered.
Advice and
support –
patent attorneys,
lawyers,
technical,
financial…
Venture Capital
Government Agency
R&D Funding Agency
Discovery
Proof of
Concept
R&d
Scale-up
Manufacturing
Prototype
Research Centre
Research Institute
Research Organisation
R&D Consortium
Research Facility
Commercialisation/Translational Organisation
Commercial Law
Management and Financial Consultancy
Market
Launch
Market/audience
$, size, growth,
penetration. Macro
to micro markets.
Be realistic and know your market
(everyone, everywhere, now and in the future)
Macro Market –
global market in yours and
related fields – “This is a
$10Bn market”.
Meso Market –
National market, or those
in your specific field –
“This is a $590M market”
Micro Market – local
market, or those directly
competing in your chosen field
– “This is a $90M market”
Development
cycle – how
long, how much,
how hard, how
complex
Realistic timelines
Competitors
and/or
collaborators
Compared with the competition?
How do you propose to get there?
How long will it take?
Who else is on the same path?
Are they ahead of you or behind you?
What will kill your value?
Value
Competitor
4
$$
De-risking
Competitor
3
Competitor
1
Competitor
2
Risk
Your
idea/tech
Proof of
Principle
Proof of
Concept
Working
prototype
Manufacturing
prototype
Market launch
Knowing the competitive landscape
Size of firms
License to a
Licence?
Other options
to firm?
mid-tier
consider that are more
relevant to your
industry and technology
JV?
Start-up?
Number of firms
• Large number of smaller players points to a start-up
• Small number of larger players points to a licence
• Also informs exit...
Pathways and partnering –
UQ and UniQuest
Pathways –
compare as
many possible
alternatives
before deciding
Research Catchment
Hub
Plan Selection and Strategy
8. Start-up
6. Full Screen
9. Investment
5. 1st Cut
8.Product/
Service
9. Clients
1.Research 7. IP Protection
2. Discovery
3.Disclosure
4.PDD
Exit point – not
commercially viable
Exit Strategy
M&A,
Trade
Sale
StartUp
License
8.License
9. Partnership
Royalty
Annuity
SKILLS
EDUCATION
Technology
Valuation
Business Model
Negotiation
Partnering
Planning
Structures
Governance
IP Management Commercialisation in
Practice
UniQuest Internship
Commercialisation
Workshop
Research Catchment
Hub
Analysis
IP Strategy
Plan Selection and Strategy
9. Investment
5. 1st Cut
MICD, GM,
Researches
8. Start-up
6. Full Screen
CSIRO Internship
Analysts, Lawyer,
Patent Attorney,
Project Team
Experience
required
7. IP Protection
2. Discovery
Comm Mgr
UniQuest
3.Disclosure
1.Research
IP Protection
Project Mgmt
4.PDD
Analysts,
UniQuest
Internships
8.Product/
Service
iLab Internship
AIC Internship
UniSeed, Angels,
iLab Incubator, VCs,
Industry, Enterprize
Legal
Pitching/Sale
Exit Strategy
M&A,
Trade Sale
Start-up
License
9. Clients
C&R,
International
Projects, UQBS
Commercialisation
Royalty
Annuity
9. Partnership
Industry
8.License
Patent Review
Committee, Lawyer,
Patent Attorney,
Researchers
Commercialisation
in Practice
UQ
Comm Manager,
UniQuest,
Exit point
INTERNAL PARTNERS
UQ Business School - Grad School - UniQuest - JK Tech - - UniSeed - iLab
EXTERNAL PARTNERS Angel Network - Enterprise Connect - Accelerating Commercialisation–CSIRO – BTP – Lawyers– Patent Attorneys - Companies
Partners
Successful
ideas
Horizons –
one to three –
the future is
now.
The Three Horizons Model –
planning your technology trajectory
The Alchemy of Growth, Baghai,
Coley & White
Horizon 1:
•
Your current technology position
Horizon 2:
•
Leveraging your current technology
to build your second generation
technology
Horizon 3:
The unexpected future – where will
disruptions come from?
Your technology position may
change across horizons.
Rival?
Low
High
Collective Good
High
Private Goods
Second
tech
Excludable?
Common Goods
Low
Main
technology
Third
tech
Public Goods
Supporting
financials and
exit strategy
Financials
They reflect every other area
They help get finance and investment funding
Bringing it all together
Two stage iteration
1st
1st
1st
2nd
1st
2nd
2nd
1st
2nd
2nd
1st
2nd
1st
2nd
2nd
2nd
1st
1st
2nd
2nd
2nd
1st
1st
1st
CRICOS Provider Number 00025B
Bringing it all together
An Example
Innovation and Commercialisation
LIPI Technopreneurship and Technology Transfer National Seminar
12th November 2015.
Associate Professor Damian Hine
UQ Business School
Ideas?
These are all patented, but this is NOT what we do.
UQ Successes
Over 30 years of technology transfer at UQ.
Up to 500 invention disclosures a year.
Some Successes:
Gardasil
- sales over $10Bn
Spinifex Pharmaceuticals
- Investment of $1Bn
Triple P (Positive Parenting Program)
TetraQ
Impedimed
Leximancer
- in over 30 countries
- servicing mostly US and Japanese clients
- Market capitalization $254M
- global leader in text analytics
We don’t just do it – we teach it
• Many universities undertake technology
transfer and research commercialisation.
• Few have been successful in integrating it
in to their programs.
• We have integrated commercialisation in
to undergraduate, postgraduate
coursework, and PhD programs
Where have we taken our success?
• Lean LaunchPad – National program for CSIRO
• International programs – Vietnam, Chile,
Panama, Ecuador, Brazil
• Embedded in our teaching programs – Graduate
Certificate in Research Commercialisation; Master
of Technology Innovation Management – you can
only run these programs successfully if you are
already research intensive.
We must remember –
Researchers are not Entrepreneurs
Private
Entrepreneurs
Funding source
Inventors
Innovators
Researchers
Public
Technology
Push
Market Pull
Innovation driver
Researchers are usually doing problem solving science. They will rarely ever meet a final
customer/user/patient.
Innovators can combine the elements of each of the others – but are VERY RARE.
Whe resear hers do dis o er so ethi g…
What do I
do with it?
Who will
use it?
It is commercially
viable?
I discover
something
What’s next?
How do I get
out of it?
Does viability
matter?
Helping
researchers by
lighting a pathway
Do I expand it?
How do I
protect it?
Do I develop
it?
How do I
fund it?
How much will
development cost?
Do I protect it?
How do I
develop it?
How long will
it take?
Who will
help me?
CRICOS Provider Number 00025B
The Twelve Steps
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Public/private good discussion – decision on mix
Commercial viability or non-commercial value – societal, spiritual, justice, QoL value
Types of IP – it would be very rare that it is unique – fit for purpose
IPRs and Protection types or not - Level of disclosure, cost and complexity, what
requirements of each type of IP does it meet
Who owns the IP – where do you sit, what contractual arrangements are or should be in
place?
Advice and support – pate t attor eys, la yers, te h i al support, fi a ial…
Market/audience $ and or size, growth, penetration. Not just macro-market, but your actual
market.
Competitors and/or collaborators – know the cauldron are you entering.
Pathways – compare possible alternatives and decide – start-up, license, JV, SA, spin-off…
Development cycle – how long, how much, how hard, how complex
Horizons – one to three - looking in to the future for disruptions
Supporting financials – including valuation, funding, cost of protection, market revenues.
Public/private
good –
decision on
mix
Where does your idea/technology sit?
One of the best ways to define the
commercial (or non-commercial) viability of
a technology is to assess its excludability
and its rivalry.
FOUR TYPES OF GOODS
Rival?
Low
High
Private Goods
High
Excludable?
Low
Collective Good
Full cost
vaccines
in to US,
Europe
Free
vaccines
in to
Myanmar
Common Goods
?
Low cost
vaccines
in to
Myanmar
Public Goods
Rivalry - Does o e perso ’s use of the good di i ish a other perso ’s a ility to use it?
Excludability - Can people be prevented from using the good?
Demand side and supply side can see things differently.
You can indicate single or multiple
sites and sizes.
Rival?
Low
High
Collective Good
High
Private Goods
Time
3
Excludable?
Common Goods
Low
Time
1
Time
2
Public Goods
Commercial
viability or
noncommercial
value
Societal
Value
Public Good
Viability - What type of value dominates?
Commercial
Value
Private Good
Low excludability
High excludability
Low rivalry
High rivalry
De-risking the venture is essential,
but needs time and progress.
Value
$$
You want
to be are
here
You
are
here
Risk
or
here
Proof of
Principle
Proof of
Concept
Working
prototype
Manufacturing
prototype
Market launch
Moving up through the
Technology Readiness Levels
You
want to
be here
How
long
will it
take?
You
are
here
Questions to ask yourself:
Where are you now
(viability)?
How far do you want to take it
yourself (Exit strategy)?
By when (Devt Cycle)?
With whom (Collaborators)?
With whose help (Advice and
Support)?
What will it cost (Financials)?
What’s next Horizons ?
Who owns the
IP – where do
you sit,
contractual
arrangements in
place?
UQ – Who Owns it?
9. Reward for Staff Contributors
9.1 The University wishes to encourage innovation by rewarding staff,
students and visitors who create valuable IP ("contributors"), regardless of
whether that IP vests in research or teaching materials. The University will
ensure that the Net Proceeds of Commercialisation are distributed with
one-third to the contributors, one-third to the relevant
Faculty/Institute and one-third to central University funds.
"Net Proceeds of Commercialisation" means the total of net cash revenues
received from commercialising the IP (including royalties, license fees,
milestone payments, dividends and proceeds from the sale of shares but
excluding R&D funds, consulting funds, returns from direct investment by
the University or a Commercial Company, and any encumbered revenues
until the encumbrance is lifted). Net Proceeds of Commercialisation are less
all expenses incurred by or on behalf of the University in respect of
commercialising the technology that have not previously been recovered.
Advice and
support –
patent attorneys,
lawyers,
technical,
financial…
Venture Capital
Government Agency
R&D Funding Agency
Discovery
Proof of
Concept
R&d
Scale-up
Manufacturing
Prototype
Research Centre
Research Institute
Research Organisation
R&D Consortium
Research Facility
Commercialisation/Translational Organisation
Commercial Law
Management and Financial Consultancy
Market
Launch
Market/audience
$, size, growth,
penetration. Macro
to micro markets.
Be realistic and know your market
(everyone, everywhere, now and in the future)
Macro Market –
global market in yours and
related fields – “This is a
$10Bn market”.
Meso Market –
National market, or those
in your specific field –
“This is a $590M market”
Micro Market – local
market, or those directly
competing in your chosen field
– “This is a $90M market”
Development
cycle – how
long, how much,
how hard, how
complex
Realistic timelines
Competitors
and/or
collaborators
Compared with the competition?
How do you propose to get there?
How long will it take?
Who else is on the same path?
Are they ahead of you or behind you?
What will kill your value?
Value
Competitor
4
$$
De-risking
Competitor
3
Competitor
1
Competitor
2
Risk
Your
idea/tech
Proof of
Principle
Proof of
Concept
Working
prototype
Manufacturing
prototype
Market launch
Knowing the competitive landscape
Size of firms
License to a
Licence?
Other options
to firm?
mid-tier
consider that are more
relevant to your
industry and technology
JV?
Start-up?
Number of firms
• Large number of smaller players points to a start-up
• Small number of larger players points to a licence
• Also informs exit...
Pathways and partnering –
UQ and UniQuest
Pathways –
compare as
many possible
alternatives
before deciding
Research Catchment
Hub
Plan Selection and Strategy
8. Start-up
6. Full Screen
9. Investment
5. 1st Cut
8.Product/
Service
9. Clients
1.Research 7. IP Protection
2. Discovery
3.Disclosure
4.PDD
Exit point – not
commercially viable
Exit Strategy
M&A,
Trade
Sale
StartUp
License
8.License
9. Partnership
Royalty
Annuity
SKILLS
EDUCATION
Technology
Valuation
Business Model
Negotiation
Partnering
Planning
Structures
Governance
IP Management Commercialisation in
Practice
UniQuest Internship
Commercialisation
Workshop
Research Catchment
Hub
Analysis
IP Strategy
Plan Selection and Strategy
9. Investment
5. 1st Cut
MICD, GM,
Researches
8. Start-up
6. Full Screen
CSIRO Internship
Analysts, Lawyer,
Patent Attorney,
Project Team
Experience
required
7. IP Protection
2. Discovery
Comm Mgr
UniQuest
3.Disclosure
1.Research
IP Protection
Project Mgmt
4.PDD
Analysts,
UniQuest
Internships
8.Product/
Service
iLab Internship
AIC Internship
UniSeed, Angels,
iLab Incubator, VCs,
Industry, Enterprize
Legal
Pitching/Sale
Exit Strategy
M&A,
Trade Sale
Start-up
License
9. Clients
C&R,
International
Projects, UQBS
Commercialisation
Royalty
Annuity
9. Partnership
Industry
8.License
Patent Review
Committee, Lawyer,
Patent Attorney,
Researchers
Commercialisation
in Practice
UQ
Comm Manager,
UniQuest,
Exit point
INTERNAL PARTNERS
UQ Business School - Grad School - UniQuest - JK Tech - - UniSeed - iLab
EXTERNAL PARTNERS Angel Network - Enterprise Connect - Accelerating Commercialisation–CSIRO – BTP – Lawyers– Patent Attorneys - Companies
Partners
Successful
ideas
Horizons –
one to three –
the future is
now.
The Three Horizons Model –
planning your technology trajectory
The Alchemy of Growth, Baghai,
Coley & White
Horizon 1:
•
Your current technology position
Horizon 2:
•
Leveraging your current technology
to build your second generation
technology
Horizon 3:
The unexpected future – where will
disruptions come from?
Your technology position may
change across horizons.
Rival?
Low
High
Collective Good
High
Private Goods
Second
tech
Excludable?
Common Goods
Low
Main
technology
Third
tech
Public Goods
Supporting
financials and
exit strategy
Financials
They reflect every other area
They help get finance and investment funding
Bringing it all together
Two stage iteration
1st
1st
1st
2nd
1st
2nd
2nd
1st
2nd
2nd
1st
2nd
1st
2nd
2nd
2nd
1st
1st
2nd
2nd
2nd
1st
1st
1st
CRICOS Provider Number 00025B
Bringing it all together
An Example