Converting inventions into innovations using the nexus between Universities and Science

and Technology Parks.

Arcot Desai Narasimhalu

Create and transfer

knowledge

Service Customers

Universities Science and Technology Parks

Valley of Death

Invention commercialization stages

Stages in

commercialization of

inventions

Purpose Source of funding

Proof of Principle Invention, show technology

works

University

Proof of Concept Innovation, develop

commercial solution

???

Proof of Value Validate the solution in the

market

???

Product Development Robust and high performance

solution

Venture Capitalists,

companies

New role for STPs

US Pharma example

Reasons for Universities engaging in Technology Transfer

• Recognition for discoveries made at the institution

• Compliance with federal regulations

• Attraction and retention of talented faculty

• Local economic development

• Attraction of corporate research support

• Licensing revenue to support further research and education

University Tech Transfer Office

• Role – Assessing new technologies

– Protecting technologies through patents and copyrights

– Forming strategies for sale / licensing to private sector companies or creating new startup companies based on the technology

• Challenges – Generally staffed with those who have little experience in

commercialization

– Often hope that companies will line up to buy / license intellectual property

– Little understanding of how companies view University IP

• Key on-looker in the valley of death

Strengthening Science and Technology Park’s role in University

Technology Transfer

STP role in Valley of Death

Science and Technology Parks

Key considerations

• Innovation is the gainful application of an invention.

• Most universities are not equipped to make this translation.

• Do STPs have a role here?

• Should and can STPs be Valley of Death Managers?

Evolution of STPs

Version Main role

1.0 Real estate manager

2.0 Value added service provider

3.0 Inclusive ecosystem

4.0 Valley of Death Manager

Invention commercialization stages

Stages in

commercialization of

inventions

Purpose Source of funding

Proof of Principle Invention, show technology

works

University

Proof of Concept Innovation, develop

commercial solution

Government through STP

Proof of Value Validate the solution in the

market

Angel investors / STP

residents

Product Development Robust and high performance

solution

Venture Capitalists

STP role in Valley of Death

Innovation Labs @ Science and Technology Parks

Contribution to academic programs

• Undergraduate programs related to innovation and entrepreneurship

• Masters program in innovation and entrepreneurship

• Doctoral program in innovation and entrepreneurship

Role of STP innovation Labs

• Interaction with academic programs

• Support to student start-ups

• Commercialization of promising inventions

Interactions with academic programs

Typical entrepreneurship track

Course of Study Objective Outcome

IT and Business Innovation Identify innovation opportunity Business Innovation

opportunity identified

Technopreneurship study

mission

1. Understand

entrepreneurship landscape

2. Explore internship

possibilities

Internship host identified

Technopreneurship Learn how to build a company Initial blueprint for a start-up

designed; Technology sourced /

developed.

Entrepreneurial

Internship

Apprenticeship for building a

business

Steps and challenges in

building a start up learnt from

practice. Start- up blueprint

refined

Final Year Project Build a proof of concept

prototype

Core functions of the

prototype developed

Typical Master of Innovation Course

TERM 1

Strategic Idea and Concept

Development

Module 1:

Innovation-focused

Strategic Leadership

Module 2:

Innovation Strategy

Development

Module 3:

Ideation Management, Creative

Design, Prototyping and testing

of concepts

TERM 2

Development of Innovative

Products, Services,

Processes and Business

Cases

Module 4:

Achieving Innovation

success through People

and Organization

Module 5:

Innovation Development:

Turning Concepts into

Business Cases

Module 6:

Financial Management and New

Venture Financing

International Residency @ Babson College, USA

TERM 3

Market, Launch and

Successful

commercialization

Module 7:

Market Development and

BrandingLeadership

including Launch

Management

Module 8:

Commercializing

Innovations

Module 9:

Supplier and Partnership

(Network) Management

TERM 4

Managing Risk, Sustainable

Growth and Value

Extraction

Module 10:

Business Acceleration and

Growth Strategy

Module 11:

Risk Management in an

unstable World (VUCA)

Module 12:

Business Sustainability and Value

Extraction

Typical Doctor of Innovation Program

Year Term 1 (4 CUs) Term 2 (4 CUs) Term 3

1 Foundation courses Foundation courses Take Qualifying Exam

2 Empirical project Form Dissertation Committee.

Prepare Dissertation Proposal.

Submit written Dissertation Proposal

Oral defense of Dissertation Proposal

4 Credit Units (CUs)

Begin Dissertation project.

Conduct Dissertation project

3 Conduct Dissertation

project

Conduct Dissertation project 4 CUs

Conduct Dissertation project

4 Conduct Dissertation

project

Conduct Dissertation project

Submit written report of completed

Dissertation

Oral defense of Dissertation

Revise and re-submit Dissertation report

Submit approved Dissertation report

Role of STP Innovation Labs in new venture creation

STP Role in New Venture Creation University

Programme STP’s role Remarks

Entrepreneurship Track

• Mentors • Study Missions • Entrepreneur speakers • Internships with young companies • Project supervision

House student start ups in STP’s Innovation Labs

Masters in innovation

• Innovation projects offered by STP resident companies

• Recruit as interim CEOs for start-ups

Doctoral programmes

Hire as Innovation managers for STP residents. May be as a Chief Innovation Officer for SME companies

Components of STP Innovation Labs

STP Innovation Labs steering committee

• Steering committee

– Company executives

– Angels and Venture capitalists

– Senior HR executive

– STP management

Role of the Steering committee

• Review student start-ups for admission into the STP innovation labs

• Review IP for commercialization

• Recommend commercialization strategy for commercializable IP

• Build up commercialization partners

Role of investment analysts

• Active sourcing of commercialization deals

– Liaise with university technology transfer office

– Liaise with Professor

– Shortlist commercializable IP

– Prepare market research reports

– Present to the Steering Committee

• Filtering student start-ups admitted to innovation labs

Role of HR representative

• Assess the quality of founding team of student start-ups

• Keep a pipeline of entrepreneurs and other key employees for forming / augmenting start-ups

• Offer CEO coaching to start-up founders

Role of Executives in residence

• Interim CEO for two to four companies

• Help develop a business plan

• Help assemble a team in collaboration with the HR representative in the steering committee

• Generate design, development and manufacturing plans

• Generate test plans

• Keep the team motivated

Role of angel investors

• Business model validation

• Sponsor MVP design and development

• Go to market strategy

• Validating financials

• Early customer acquisition strategy

Invention commercialization reviews Stage Process Validation parameters Successful teams

Idea / Invention Intake panel Viable idea, coachable team that

understands execution

challenges and is willing to stay

the course

Team admitted to incubation

process. Team is offered a

selection of Business Model

Mentors

Business Model

Development

Business Model

Validation Panel

Target customer base, Market

Size, Revenue and cost models

and Supply Chain

Team progresses to Innovation

Development Stage. Team is

offered a technology and

business architect as a mentor

Innovation Design and

Planning

Innovation

Development Panel

Validating the technical and

business architecture

Team progresses to Go to

Market strategy. Team is

offered a mentor for go to

market strategy

Marketing Plans Go to Market Panel Market research, pricing plans,

early customer identification,

marketing plans

Team progresses to Financial

planning. Team is offered a

finance mentor

Financial Planning Finance panel Revenue and cost projections,

cash flow planning, start-up

team definition, hiring plans

Team progresses to investor

prepare investor pitch. Team

is assigned a

Funding Innovation Labs in STP

• Funding the labs

– Local, regional and federal funds

– Angels and Venture Capitalists

– Selected large companies

Summary

• STPs as managers of Valley of Death for the university generated intellectual property.

• Suggest that they actively help new venture creation for university students