Going Commercial: Helping Researchers Develop Winning

Commercialization Plans

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NORDP Conference - 5th Annual May 14, 2013 │ Austin, Texas

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1. Source: http://www.med.umich.edu/ummic/resources/assistance.shtml 2. Source: http://energy.gov/science-innovation/innovation/commercialization 3. Source: http://development.ohio.gov/bs_thirdfrontier/comframe.htm

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Commercialization - The Trends • 3 Big Trends

1. The Economy 2. Government looks to Leverage R&D for Jobs, etc.1 3. Universities turn to Industry for Research $$2

• Requiring Commercialization: Rapid Expansion – SBIRS/STTRs, etc. (early adopters) – 2009 ARRA – ARPA-E – NSF I-Corps – EERE (adopts ARPA-E) – And more to come?

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1. e.g., “‘Lab to Market’ Initiatives Transforming New Ideas into New Jobs.” http://www.whitehouse.gov/blog/2011/10/28/lab-market-initiatives-transforming-new-ideas-new-jobs

2. e.g., “Universities Defend Flow of Corporate Research Dollars.” http://www.chron.com/business/energy/article/Universities-defend-flow-of-corporate-research-1718139.php

3. Source: http://money.cnn.com/2011/07/29/news/economy/recession_gdp/index.htm

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• Commercialization Plan – Single technology – The plan, resources, and partners needed to take the technology to market

• Innovation Ecosystem

– Any technology – The institutions, relationships, and processes that make commercialization (a repeatable) success

• (But, are they really exclusive?)

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RFPs - 2 Different Requirements

VS.

Innovation Ecosystems

Jaine Place Director, Proposal Development Unit

North Carolina State University

Innovation Ecosystems

Jaine Place Director, Proposal Development Unit

Office of Research Development North Carolina State University

NORDP Annual Conference

5/14/13

Innovation Ecosystem

The interdependent partner network needed to generate, develop, and deliver a technology-based or business-model innovation.

“A system truly poised to innovate is one in which: • barriers between organizations and individuals are broken down, • collaboration happens across disciplines and sectors, and • diverse, democratized culture supports risk taking, tolerates failure, and

celebrates success.”

“The regions and institutions that embrace the network and culture aspects of their innovation ecosystems gain the competitive advantage.” [Adrienne J. Burke, NC Academy of Sciences, 2011]

Required for Largest NSF Grants

NSF • ERC • STC • EFRI • PFI • CEMRI • NNI • Expeditions in Computing • GOALI • I/UCRC • SBIR/STTR

Other Agencies • NIH • USDOE • USDA • USDOC • USDED

What does it look like?

Each pod: • Necessary • Insufficient • Constraining to overall ecosystem • Dependent upon current status of environment

Some examples

Key Characteristics

• University research explicitly driven by industry needs across full spectrum of sectors and company sizes.

• Faculty involved from fundamental discovery through proof-of-concept.

• Hand-off of technology to industry moving into industrial development must bridge the Valley of Death, resulting in rapid, efficient innovation.

[Valley of Death: the gap between discovery through university research and the design/development work in industry that yields new products. If industry is not willing to invest in the gap, academic discoveries sometimes sit on the shelf and the opportunities are lost.]

Building Your Ecosystem

• Don’t wait till you start writing a proposal.

• Create a culture to encourage scientists/students to think about practical applications of their work

• Equip scientists/students with necessary entrepreneurial resources.

• Inventory: Look at science/technology assets of entire community to understand where your regional/state/university strengths are. Build the innovation ecosystem around those assets. (e.g., human capital, venture capital/angels, industry cluster, technology incubators, industry-academic consortia, etc.)

• If project is international, consider the innovation ecosystem in other country (NGO workers, policymakers, economic development ministry, etc.)

Putting the Elements Together

Expert Communities

Open Innovation

Invention

Patent & Licensing Process

Entrepreneur Support

Academic Programs

Training & Networking

Source: Jaine Place, North Carolina State University

Ecosystem Element Examples

EXPERT COMMUNITIES immersed in environment of: • Open Innovation Industry center members and IABs Industry practitioners in university labs Industry internships and mentoring Sponsored research Translational partners Ideation workshops SBIR/STTR projects Rental space adjacent to university labs in research park

• Invention Proof of concept $ Research facilities and equipment Centers of excellence Garages and studios (game lab, 3D mfg., 3D visualization,

media production) Ideation and mining/networking of ongoing projects

• Patent & Licensing Process IP Protection Technology Evaluation Expedited licensing agreements Option for industry partnership agreements with pre-set

terms

• Support for Entrepreneurs, Spin-Offs and Start-ups Business incubator Business planning SBIR/STTR training Business collaboratories SBIR/STTR Matching $ Venture mentoring Venture capital Executive searches Contract services and facilities

• Academic Programs Grad/undergrad entrepreneurship/technology commercialization

courses, concentrations, majors Industry-sponsored senior design projects Student entrepreneurship resources, opportunities, competitions Graduate experience in examining commercial potential of

technologies, developing strategic plans Innovation initiatives, activities, clubs, living and learning

communities Garages

Training & Networking Local, state, regional innovation partners (e.g., CED, NCBC, BCNC,

NCBST, COIN, incubators) Seminars and workshops (e.g., ideation, open innovation, market

analysis, commercialization, go/no-go decision-making) Conferences Virtual events (e.g., eBriefings, podcasts, video interviews,

electronic journals, newsletters, social networking)

Source: Jaine Place, North Carolina State University, 2013

NCSU’s Springboard Innovation Hub

One-stop shop for: • researchers who want to find

collaborators or market their inventions, • businesses looking for creative solutions,

and • faculty, staff, and students who want

entrepreneurial support or training.

Co-located: • Office of Technology Transfer

• Industry Concierge

• Proof-of-Concept Center

• New Venture Services

• Center for Innovation Mgmt. Studies

• Accelerating Commercialization of Technology (ACT)

• Corp. and Foundation Relations reps

• Small Business and Technology

Development Center (SBTDC) • Technology Incubator • Centennial Campus Partnership Office • Economic Development Partnership • Blackstone Entrepreneurs Network

(master entrepreneurs) • New Partner Landing Space • Chancellor’s Innovation Fund • Industrial Extension Service

J.ROSARIO et Al Copyright 2013

An Innovation Ecosystem in Practice: Health Science in MD

Joana Rosario, MD, MPH

www.jrosarioetal.com

J.ROSARIO et Al Copyright 2013

The Paradigm

Science

Application Commercial

J.ROSARIO et Al Copyright 2013

BioHealth Innovation, Inc

Why? • To translate market-relevant

research into commercial success

How? • Serving as intermediary • Connecting management,

funding, and markets

J.ROSARIO et Al Copyright 2013

BioHealth innovation, Inc

• Regional priv-pub 501(c)(3) • Mkt-driven, priv sector-led • Commercialization of relevant

innovations • Access to early-stage funding • Development of innovative

workforce

J.ROSARIO et Al Copyright 2013

Entrepreneur-in-Residence

• Evaluates early-stage tech • Advises on opportunities for

new ventures • Helps launch & validate start-

ups • BHI: Builds portfolio of

commercial opportunities

J.ROSARIO et Al Copyright 2013

Commercial Relevance Pr • Support in preparing applications

(e.g., SBIRs, STTRs) • Submit research concept online • Pre-proposal feedback • Grant for further professional

consultants

J.ROSARIO et Al Copyright 2013

Thank You!

Questions? www.jrosarioetal.com

Overview of the Commercialization Lifecycle: Towards a Commercialization Plan

David M. Tralli, Ph.D., MBA

Program Manager for Research Development Office of Corporate Relations

California Institute of Technology Jet Propulsion Laboratory (Affiliate)

Panel: Going Commercial: Helping Researchers Develop Winning Commercialization Plans

National Organization of Research Development Professionals (NORDP) 5th Annual Research Development Conference in Austin, TX May 13-15, 2013

Commercialization Lifecyle: Towards a Commercialization Plan

Definitions and Rationale • Technology transfer consists of efforts and activities intended to result in the

application or commercialization of government-funded innovations by the private sector, State and local governments, and other domestic users.

• The term commercialization is often reserved for licensing of intellectual property leading to introduction of a new product or service into the commercial marketplace.

• The rationale for, and benefits of a successfully implemented technology transfer and commercialization plan include:

– Pooled investments in R&D between sponsor and partners – Joint activities and partnerships with universities and industry (and other Government

agencies) to help identify state-of-the-art capabilities and further R&D options – Enhancement of sponsored project capabilities (incl. cost reductions and risk mitigation,

knowledge of the COTS space) – Capture of intellectual property generated by project activities; a portion of the royalties

from licensing can be re-invested in future R&D and/or provided to the inventors (subject to institutional policy and regulations).

• Commercialization is a process that is an integral and value-added element of project formulation and implementation.

• Planning early in the project lifecycle helps bridge the gap between basic research/early-stage technology and introducing new capabilities into the marketplace.

Commercialization Lifecyle: Towards a Commercialization Plan

A Process View • The Commercialization Plan identifies near-term opportunities for the

transfer and commercialization of technologies, discoveries and processes associated directly or indirectly with the sponsored project (i.e., inherited by and/or advanced by the project ).

• Commercialization spans technology sharing and utilization (between programs and projects), technology advancement and development, and its application and utilization outside the initial research sponsor community through translation/transfer and commercialization.

• Activities are driven by technology life cycle stages (i.e. technology readiness levels) and project life cycle requirements and opportunities, and occur in phases of the project as practical and affordable.

• A lifecycle-based plan addresses the requisite balancing of shorter-term and longer-term horizons for R&D by providing a focused project-driven view and a longer-term strategic horizon (i.e. program view).

Commercialization Lifecyle: Towards a Commercialization Plan

LEVEL 1 Basic principles observed and reported

LEVEL 2 Technology concept and/or application formulated

LEVEL 3 Analytical and experimental critical function and/or characteristic proof-of-concept

LEVEL 4 Component and/or breadboard validation in laboratory environment

LEVEL 5 Component and/or breadboard validation in relevant environment

LEVEL 6 System/subsystem model or prototype demonstration in a relevant environment

LEVEL 7 System prototype demonstration in a space environment

LEVEL 8 Actual system completed and “qualified" through test and demonstration

LEVEL 9 Actual system “proven" through successful mission operations

Basic Technology Research

Research to Prove Feasibility

Technology Development

Technology Demonstration

System/Subsystem Development

System Test, Launch, and Operations

Technology Readiness Levels (TRLs)

Commercialization Lifecyle: Towards a Commercialization Plan

What’s Included in the Commercialization Plan? • Market research and industry trend analyses to identify targets, current and future

• Competitive technology assessments to assist the design of technology development strategies and help to remove capability/cost/application gaps

• Assess teaming and partnering options to achieve various aspects of the project

• Explore how the assets (technology, discoveries, innovations, tools, processes, or software), developed as both end- and by-products of the project execution, can be transferred to industry

• Documented success stories that have resulted from assets or partnerships

• Integrate, where possible, project plans with the technology and commercialization plans of sponsor’s customers and partners. All potential cooperative technology and commercialization opportunities must be explored and, where advantageous, agreements enacted

• Ensure that the planned technology exchange and partnership agreements comply with all laws and regulations regarding the transfer of sensitive and proprietary technologies.

• Management and budgeting for execution of the plan

Commercialization Lifecyle: Towards a Commercialization Plan

Collaborations with Industry • First, some organizations will enhance their competitiveness by receiving hardware

and/or software procurements for elements of the project.

• Second, some companies will work in a cooperative, cost-sharing undertaking designed to contribute to the project and to a specific commercial and/or government market opportunity.

• Third, industry in general will have access to the project’s scientific and engineering data, which they can rework into marketable ideas.

• Augmentation of the contractual relationships in place may be pursued. Examples include formalized partnerships, strategic alliances and collaborative technology development relationships between research institution, industry and other laboratories and R&D centers.

– Partnerships (mutually beneficial arrangements with no exchange of funds – Memoranda of Understanding – Technology Cooperation Agreements, Strategic Alliance Agreements, Collaborative

(Jointly Proposed) Technology Development (for further development and/or technology demonstration and validation in commercial environment)

– Industry-funded (e.g. corporate-sponsored) Technology Co-Development (funds-in to project)

Commercialization Lifecyle: Towards a Commercialization Plan

Plan Execution • The Commercialization “Team” is led by the Principal Investigator and/or

Project Manager. The Team meets regularly/monthly to recommend potential changes to the plan, assess progress overall, and facilitate accomplishments

• Review inherited hardware, software and design elements for possible novel technology disclosures, patentability and commercial potential.

• Review contractual relationships which assess the potential for augmented role under strategic alliances and partnerships on future projects and key technology development interests and needs

• Assess the intellectual property position of the project regularly

• Planning for commercialization early in the project lifecycle is key

Winning Commercialization Plans: Example and Key Messages

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Michael Crifasi

Proposal Manager Great Lakes Energy Institute

Case Western Reserve University

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Writing the Plan: Example

Proposal DUE

RFP Released

6 Mo. Before

Award

• Kick-Off Meeting

• Market Research

• Competitive Technology Assessments

• Assess Teaming and Partnering Options

• Explore Possibilities – Transfer to Industry

• Document Success Stories

• Integrate Partners’ Tech./Commercial Plans

• Ensure Compliance with IP, Policy, Regs.

• Management and Budget Plan

• Program Management – Staff & Plan

• Relationships – Keep Engaged

Researcher Proposal Developer

Researcher Business Student / Comm. Manager

Researcher Corporate Relations Tech Transfer Office

Researcher

Proposal Developer

Tech Transfer Office

Business Student / Comm. Manager

Researcher Project Manager

7 Key Messages for Winning Commercialization Plans

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1. Set the Metric – from a high level, send the message that it is important to win these types of proposals

2. Create the Culture – whether formal or informal, tap the pieces necessary to create an innovation ecosystem around your idea

3. Start Early – identify the market, partners, and competition in anticipation of an RFP; when one comes, you’ll be ready

4. Welcome the Spectrum – build relationships with ALL the sectors and company sizes that will hand your technology across the valley of death

5. Expand Engagement – keep all parties involved during every stage, including researcher involvement from fundamental discovery through proof-of-concept

6. Provide the Resources – from entrepreneurs-in-residence to seed funds for market research and preliminary results, support begins BEFORE the RFP

7. Plan for Success – right now, prepare for the management and budget needed to execute your plan