Winning the Wealth Winning the Wealth Creation War for WalesCreation War for Wales

Role of its UniversitiesRole of its Universities

Engineering Professors Conference

April 2004

Wales has traditionally depended upon sunset industries, inward investment and grant aid for its economic well-being.

Is it possible to move away from this ‘dependency culture’ by a greater reliance on indigenous talent?

…………..and if so what should the role be of the Universities?

The Challenge GDP is 75% of EU average

23 listed Welsh Companies (0.8% of UK)

(5% of Population)

2500 new Companies needed per year to reach UK average (VAT Registrations)

Objective One

•£2.4 Billion

•Over the period 2001 to 2007

Universities as a Resource

80,000 Students 4000 Staff Diverse expertise Specialist Technical Services £80M annual Research income Capacity for Training and Consultancy

What can they Contribute?

Support Graduates Training Consultancy Projects Collab. R&D Enabling Grants

Deal Flow Alumni Entrepreneurs Intellectual Property Spin-Out Companies

Alumni Entrepreneurs

Alumni Companies

Osprey Metals Ltd CDR Ltd

The CAD Centre (UK) Ltd Rockfield Software Ltd

TeleDermatology (TDS) Ltd Swansea Tribology Services

Imagitech Computeraid Ltd

Earth Resources Ltd CJ Controls Ltd

Opinion Research Services SLS Ltd

Newbridge Networks A&A Electronics

Eidawn Materials Research Eidawn Software

Race Electronics Ltd

Some more

Fastlane

Starvision

SpaceBridge

Beam

SceneDouble

Coastform

Seden

Ind & Tech Serv. Pty Ltd

Palang Sophon

Breconridge

Crosskeys

Mitel

LTX Corporation

Bridgewater Systems

Cambrian

Elantec

Castleton

Newport Networks

Enfis Ltd

Acorn/Arm

Alumni Entrepreneurs

Some 30 to 40 out of Swansea alone Aggregate value, some $6Bn Mkt. Cap. 10’s of thousands of jobs created All Over the world No direct use of University IP No Women! More than 20 listed Companies!! Often not with the best degrees One in several hundred students

Intellectual Property

Some Views about Patenting Expensive to maintain VC’s often insist on a strong IP portfolio Rarely make large amounts of money Often used defensively (Blocks of IP

traded or cross-licensed) Best Protection of IP is to continue to

innovate

Make your own products obsolete before your Competitors do

Number of Patents Filed

0

5

10

15

20

25

30

35

2000 2001 2002 2003 2004

Year

Nu

mb

er o

f P

aten

ts

University IP

Licensing– Can be lucrative for Licensee and University– Not generally a huge potential for Job

Creation– Doesn’t address the low number of listed

companies

Spin Out Companies

How they are Conceived

Brilliant Research

Profitable

Business

Market Analysis

Profitable

Business

How Businesses Start (Silicon Valley Experience)

Transistor

Integrated Circuit

MicroProcessor

Silicon CompilerNeural Networks

Quantum Computing?

Carver Mead

The best Innovative ideas come from a coalescence of what is possible and what the market requires.

The process can inform and enrich University Research

StructurePreferred Option:

Bring together the following and form University-linked spin-out companies:

• Entrepreneurs Alumni, Staff, Incomers

• University IP (Assigned to Company in selected Sector)

• Finance (VC’s Bus.Angels’s and Grant Aid)

• Premises: Technium Centres

Support through Partnership(TECHNIUM)

Start-Up

BroadBand

R&DIP

Premises

GrantsVenture Capital

StaffBusiness Planning

Sale IPO

Fail Life- Style

Statistics

Year 00/01 01/02 02/03 03/04 04/05 05/06 06/07

Tot

Start

5 14 22 27 31 37 45

Fail 1 2 3 5 6 6 7

Left 4 12 19 22 25 31 38

XX Actual

XX Projected

Technium Programme

Cap. Cost

£M

Units Start Date

Technium 1 3.2 15 April 02

Technium 2 6.2 20 April 04

Digital 10.8 20 Jan 04

Optic 10 24 Nov 03

Sust. Techs 9.1 20 April 05

Auto 8.5 8 ~April 05

TOTALS 47.8 107

Technium 1

Over 18 Months: 17 Companies 75% Graduates 72% R&D Turnover (5M to 7.5M) 300% Increase in Staff

Breakdown of 38 companies in 2007

Life Style/Ongoing 29

Trade Sale 3

IPO 4

All Wales

Breakdown of 96 companies in 2007

Life Style/Ongoing 76 Trade Sale 8 IPO 12

ConclusionsTo meet the Challenge, Universities need to Raise awareness for future Entrepreneurs

to start their companies locally Show a greater understanding of the role of

their Intellectual Property Form Public/Private Partnerships to

provide support networks Recognise Entrepreneurial Success