Technology Transfer. from University Research to the Commercial World. Tim Cook

Transcription

1 Technology Transfer from University Research to the Commercial World Tim Cook

2 Tim Cook BA (Physics) 1969, D Phil (Cryogenics), 1972 HNC Mechanical Engineering, Diploma in Accounting & Finance Managing Director Technology-based companies ( ) Oxford Analytical Instruments Industry Microsystem Design Limited Micrelec plc 7 years Private Investor ( ) Founding Managing Director Oxford Semiconductor Founding Managing Director Oxford Asymmetry Investment 7 years University Technology Transfer ( ) Managing Director Isis Innovation, Academia Oxford University ( ) Visiting Professor in Science Entrepreneurship, Oxford University ( ) Advisor Cambridge Enterprise Board (2006 date) Commercialisation Panel - Oxford Brookes ( date) Non Executive Director 2007 date Isis Innovation ( ) Lombard Medical Technology ( ) Oxford Gene Technology ( ) 10 years 7 years

3 Programme Introduction & Message 5 The Oxford University Model 9 Technology Transfer Tactics 6 Spinout Companies 5 Culture Change 6

4 What is a University? A great University is defined by great academics Great researchers Great thinkers Great teachers Not Great administrators Great technology transferors Or even great leaders Although list two helps recruit and retain list one

5 What is a University for? Principle products - teaching and research There are few alternative sources of either of these Valuable by-product - commercial opportunities There are many sources of inventions to commercialise It is an error to design a production plant to maximise the output of the by-product If this is detrimental to the quality of the principle products Tech transfer comes at the end of the research Of course the value then extracted must be maximised but not at the expense of the prime mission Ignoring this will turn some great universities into not-great contract research companies

6 Speaker s message Technology transfer is stimulating communication between two very different cultures (Academia & Business) The two cultures will not in general spontaneously understand each other But there has always been the occasional multi linguist! Therefore intermediaries are required at least to start with It only works if the intermediaries have a real understanding of both cultures There is not a single recipe that always works But there are some underlying principles

7 The Challenge Different Cultures Commerce Driven by external needs Clear goals with shareholder commitments Commercial confidentiality Researcher Self directed Next step defined by yesterday s results Free exchange of ideas Academics never deliver Industry is out to cheat us So we can expect it will be challenging to build a mutually trusting relationship

8 Orthogonal Value Sets Commercial axis Research -> Products Licence 2 Dimensional Intermediary ->Research Academic axis

9 THE OXFORD MODEL AN EXAMPLE FROM AN OLD UNIVERSITY

10 Oxford University Teaching and Research Oxford University has spent centuries optimising methodologies for Teaching (since 1188) & Scientific Research (since 1700s) Commercialisation of results Direct spending on commercialisation is relatively recent Isis Innovation (Oxford University s Technology Transfer Co) established in 1988 So this is a relatively new activity in a well-established University

11 Oxford Model - Key Ingredients Rich portfolio of wholly-owned Intellectual Property Rights Strong, world-class research base Diverse research sponsorship (700 different funders) Clear intellectual property (IP) policy Led from the top and widely supported Investment in research support & tech transfer 150 staff in Research Services and Isis Innovation Clear internal demarcation of responsibility Effective internal & external communications

12 Intellectual Property Policy - October 2000 University claims ownership of all employees and students IP rights resulting from University research activities The university assists those researchers who wish to commercialise their research by patenting, licences, spinout companies & consultancy Researchers personally share the benefits Royalty shares from licences Equity in spinout companies Income from personal consultancy

13 Isis Innovation A company (established 1988) owned by the University To help researchers commercialise their research results Current Activities Year to March 2014 Patenting 92 Licensing of intellectual property 105 Consulting and service contracts 398 Formation of new companies 8

14 Royalty Sharing on Licence Deals >Isis Innovation pays all patent costs > 3.1 ( 3.8) million in the year to March 2014 >Isis recovers patent costs from royalties >Isis retains 30% of royalties >The net revenue is transferred to the University & distributed: Total net revenue Researchers Personally University General Fund Department Funds Isis Innovation to 72k ( 88k) 60% 10% 0 30% to 720k ( 880k) 31.5% 21% 17.5% 30% over 720k ( 880k) 15.75% 28% 26.25% 30%

15 Equity Sharing in Spinout Companies Equity shared between: Academic(s) - Not only names on the patent University Investors Managers Academic and University generally get similar amounts Investors get what they negotiate for Manager(s) share 5-15% depending Note: Everyone on the list has an effective veto So Tech Transferor s task is to help them all agree

16 Academic Consultancy Academics can consult for up to 30 days per year The University must approve the contract Isis Innovation provides an optional service to Find opportunities Negotiate consultancy rates Manage the administration If researchers choose to use it Isis charges 7½%

17 Results Year to March 2014 Isis Innovation has 90 staff Received 3.1m ( 3.8m) from University to spend on patents Returned 6.8m ( 8.3m) to the University Created 8 spinout companies Invested in 92 patent applications Helped researchers win 19m ( 23m) of translational funding

18 Growth for years ending March 2000 to 2014 Source: Isis Innovation Annual Report

19 TECH TRANSFER TACTICS

20 Isis Philosophy Isis supports researchers who wish to transfer technology It is vital that Isis helps researchers see that commercial engagement can enhance their academic work by providing additional resources (both physical and intellectual) The researcher s interest is key to successful Tech Transfer Tech transferor s most critical asset is researcher confidence Isis generates researcher enthusiasm by Internal marketing University IP policy & rewards to researchers Recognition Senior University staff are commercially active And commercially active staff achieve senior positions! Employing high quality staff in TTO experienced in research and industry

21 Internal University Marketing Set up a lighthouse to attract researchers Tech transfer office spends a lot of time and effort on promotion directed inside the university Mailshots, newsletters, magazine articles, www, lectures, handouts, IP training, local radio, local TV, local newspapers, national media etc. Tech transfer staff attend department seminars, college lunches, etc. In other words they live in the same world as researchers I believe the sociology of this is the most critical factor

22 Managing in a Company, Managing in a University In a company the workers are employed by the manager The worker s role is to perform their part of the plan This is essential if the business plan is to be delivered In a pop group the manager is employed by the performers The manager s function is to take care of everything so the performers can perform I believe the management of academic superstars will be much more effective if the second model is adopted This message is particularly important to technology transferors! Be the Researchers Friend not the IP Police

23 Oxford Innovation Society Attracting Business Established in 1990 to foster University/business links Since 1990 over 90 companies have joined Companies pay an annual fee of 6,800 for membership Membership Benefits Ready access to the academics and University Advance notification of all marketed patent applications Invitations to thrice-yearly meetings and dinners Customised research presentations and seminars Regular newsletters and portfolios

24 Innovation Society - highly structured networking Tea & coffee reception Academic presentation Sponsor presentation Champagne reception Dinner in College After dinner drinks

25 Begbroke Science & Business Park Spinout Companies Innovation Centres Dept. of Materials

26 SPINOUT COMPANIES

27 An additional challenge If we are talking about spinouts rather than consultancy or licensing there is a third axis In addition to academia and industry there are investors Investors are not the same as industrialists

28 The disparate parties involved in a spin-out Academic Industrial Manager Investor Insider Insider Outsider One major interest Route is undefined at the start If it s not working find a workaround One company Coordinated plan Coherent activity If it s not working fix it Lots of concurrent activities Evaluate Invest Monitor If it s not working get out

29 The third axis Commercial axis Research -> Products Licence 2 Dimensional Intermediary Spin -out 3 Dimensional Intermediary ->Research Academic axis Investor axis ->

30 Different activities need different skills Clean IPR Spinout Company Growing Company Protagonists Researchers Technology transferors Active shareholders Skills required Research Relationship building Driving management Main motivation Research activity Technology transfer Carried interest Main reward Research results Technology transfer Wealth

31 Conclusions Spinouts involve more than one value system This is a challenge for managers and advisors Significant benefits can be won by understanding this Failing to understand it may prove fatal

32 CULTURE CHANGE

33 Culture Change Entrepreneurial culture of researchers University technology transfer resource Local professional environment All three must proceed together but the University must lead the change because. 1. The ideas are in the University If University provides TT resource, change will happen faster Oxford University pre-isis 1 spin-out every 4 years, post-isis 4 per year 2. If the University doesn t lead, the University may not receive its share of the benefits

34 The University Executive (policies) Tech transfer office Gene pool Commercially active scientists Other academics

35 University is a sub-culture in a barter economy Investors Lawyers Head hunters Other start-ups Real estate PR agent Specialist suppliers Accountants Brokers Itinerant Managers Consultants Leasing Banks Students

36 Management of a University or your relationship with one University You Like leading an elephant with a thin rubber band 1. Walk along with the elephant In whichever direction it chooses to go Until it gets used to you 2. Start to pull gently on your rubber band 3. If you pull too hard or too suddenly You will break your rubber band and Have no further influence over the elephant

37 But The caption says OK I ve got him, now hit him with the rock Don t think you will ever have complete control over academics! Cartoon by Stoney, Ravette Publishing Tony Lopez (Copyright)

38 Conclusions Opportunities exist in Universities for: Economic development Personal wealth creation To realise these benefits needs competent intermediaries We have begun to understand the process

39 Thank you Painting by Jeremy Sutton, San Francisco Airport,