Some experience from the United Kingdom

Transcription

1 IC 2 Institute Global Fellows Meeting Global Perspectives on Technology Transfer & Commercialisation Some experience from the United Kingdom Zernike (UK) Limited Austin, Texas May 2009

2 Structure and purpose Structure Place topic in broad policy context With a focus on a university near where I live Draw some lessons for wider application Introduce some current issues

3 Typical Systems Model of Innovation Innovation system Demand Supply Interactions

4 MODELO HEURÍSTICO DE UN SISTEMA NACIONAL DE INNOVACIÓN DEMANDA Consumidores (demanda final) Productores (demanda intermedia) MARCO DE ACCIÓN Ecosistema financiero, impuestos y regulaciones, propensión a la innovación y emprendimiento, movilidad, etc. SISTEMA INDUSTRIAL GRANDES COMPAÑIAS PYME MADURA BROKERS E INTERMEDIARI OS TECNOLÓGICO S SISTEMA DE EDUCACION E INVESTIGACION SISTEMA DE CAPACITACIÓN UNIVERSIDADES SISTEMA POLÍTICO GOBIERNO GOVERNANCE NUEVAS FIRMAS DINÁMICAS alcance potencial de las políticas públicas CENTROS DE INVESTIGACIÓN PÚBLICOS CONECTIVIDAD INFRAESTRUCTURA BANCOS; CAPITAL PARA EL EMPRENDIMIENTO PROPIEDAD INTELECTUAL E INFORMACION SOPORTE INNOVACION Y NEGOCIOS ESTÁNDARES Y NORMAS Source: Arnold and Kuhlman (2001).

5 Interaction between research and innovation! Processes Knowledge based firms Policies R&D performers Vision Culture Infrastructure Active funds Competences Knowledge generators Civil Society SHARING OVERLAPPING INTERACTING INTER-DEPENDENT MULTIDIRECTIONAL COMPOST HEAP

6 National policy environment Emphasis on entrepreneurship in education Third leg funding elective and competitive

7 HEIF Competitive elective funding, UK Competitive funding for university innovations White Rose Consortium partnership of 3 universities early stage funds emphasis on biotech UNIEI tackled the innovation agenda in university built networks across the university extended to other regional universities

8 National policy environment Emphasis on entrepreneurship in education Third leg funding Research quality and concentration Regional diversity International orientation Weaknesses in application and mature industries

9 Technology transfer: main strategies From the science base Strategic partnership joint research IP licensing managing an asset NTBF creation spin out entrepreneurship Knowledge transfer people connections From other sources International search Inventors Applied industrial development agencies Extension services

10 University of Cambridge Ivory Tower? A research based university Excellence in culture Business school Collegiate networks Successful and adaptive yes Slim and agile perhaps not!

11 Example region Cambridge, England Elite research University started in 13 th century in town of 250,000 Lots of engineering and sciences including applied research businesses Alumni remain PhDs Cambridge London Strong resistance to development Business 1,300 firms, creating 35,000 jobs high tech sectors CAD to Bio 80 start-ups per annum businesses creating businesses specialist service periphery CAMBRIDGE SCIENCE PARK CAMBOURNE WEST UNIVERSITY CAMPUS MELBOURN SCIENCE PARK ST JOHN S INNOVATION CENTRE CAMBRIDGE PETERHOUSE THE BABRAHAM INSTITUTE GRANTA PARK

12 Cambridge University roll call Glaxo SmithKline Beecham Marconi

13 IP rights and commercialisation Protecting the Right laws and practice essential but not sufficient publish but protect timing and management Whose is it anyway? legal default owned by employer practical reality shared in academia and with investor Creating the Wealth accidents and scale active commercial management essential licence or new business different demands

14 Differential research intensity Average proportion of turnover devoted to R&D 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% More extensive R&D Biotechnology Telecomms Services Software R&D Consultancy Instrumentation 20% 40% 60% 80% 100% Proportion of firms undertaking R&D More intensive R&D

15 Key lesson WHAT MAKES THE DIFFERENCE? Four crucial ingredients Vision - having a clear shared vision of future Language - being able to talk to each other Incentive - funding to lubricate and rewards History - no substitute for doing it

16 Managing the culture change Academics are normal but need managing Respecting the outliers and moving the mean Providing the environment My door is open why don t they come? Formal protocol Ferrets and guerrillas Research team leadership built into core purpose linked to reward and status sustained into future programmes

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18 Managing the culture change Academics are normal but need managing Respecting the outliers and moving the mean Providing the environment My door is open why don t they come? Formal protocol Ferrets and guerrillas Research team leadership built into core purpose linked to reward and status sustained into future programmes

19 Critical success factors Cultural differences matter Require understanding patience, persistence and long term effort to modify

20 The Commercialisation Cycle Product Development Stage HIGH Risk Of Failure Commercial Value LOW > Market consolidation > Market expansion > Market penetration > Product enhancement > Sales & distribution > Product development > Marketing & research > Prototyping > Market definition > Innovation & R&D R&D Fiscal approaches Angels /3F s Seed VC/IIF Sources Of Funding VC/ Expansion IPO/MBO /Trade Sale Tier 0 Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Business Development Tiers Tiers 0/1 - Pre-incubation Direction Collaboration Guidance Resources etc Pre-Seed funding Tier 2 - Incubation Mentoring Seed funding Contacts Consulting Clients Tier 3 - Post-incubation Funding Structuring Relationships etc Tiers 4/5 - Commercial Maturity

21 Challenges: filling the gap Challenge of venture funding for new tech businesses Information asymmetries and gaps Additional commercial risks Additional technology risks Proportionately higher transaction costs

22 Challenges in commercialisation: hypothesis 1 We have great S&T and ideas for new businesses BUT There is no money to take them forward SO Lets build a venture capital industry

23 Challenges in commercialisation: hypothesis 2 We have lots of money which is prepared to invest in new businesses BUT There are not enough good ideas coming forward from the knowledge base SO Lets change the orientation of the science base

24 Challenges in commercialisation: hypothesis 3 We have great S&T and lots of investment money BUT The two communities have opposite perspectives and cannot talk to each other SO Lets build a shared vision and learn a common language

25 Critical success factors Keep communicating Even when they seem not to listen

26 Some initiatives needing guidance Returning to the three hypotheses Chile build research base and skills in commercialisation Argentina building legitimacy and the deal flow facility Turkey ensuring the wetware alongside the incentives UK challenging satisfaction and building connectivity

27 Critical success factors being super can be the problem and the solution

28 Thank You BOB HODGSON Ltd The Grove High Street Sawston Cambridge UK CB2 4HJ 0(044)