EmergingIssuesinTechnologyManagement:Global Perspectives:Theneedforandunderstandingofatechnology commercializationframework

DrShailendraVyakarnam DirectorCentreforEntrepreneurialLearning CambridgeJudgeBusinessSchool s.vyakarnam@jbs.cam.ac.uk Background Thispaperfocusesononeofthekeyissuesintechnologymanagementthat isthemostproblematicinthetransferoftechnologyfromResearch InstitutionsandUniversities. Thatkeyissueisaboutthetranslationaljourney, whichislittleunderstoodintermsofdynamics,motivations,reward mechanisms,legalandstructuralmechanisms. Thereisgrowingdesirebypolicymakersforinnovationtosolvesocietal problems,whetheritisbigchallengesorcompetitiveeconomicgrowth (Dodgson,2008).Innovationandtoagreaterdegreeentrepreneurshipare seenasenginesthatcanstimulategrowth,andjobsresultinginprosperity, politicalstabilityandincreasedstandardsofliving.Thisview,initself,isnot new Whatisnewisthatpolicymakersareseeingaconnectionbetween researchinUniversitiesandotherinstitutionsassourcesofthatgrowth (LeydesdorffandEtzkowitz,1998). Politicalsupportisalsogrowingconsiderably.Forexample: Startupsareenginesofjobcreation.Entrepreneursintenton growingtheirbusinessescreatethelion'sshareofnewjobs,in everypartofthecountryandineveryindustry.Anditis entrepreneursincleanenergy,medicine,advancedmanufacturing, informationtechnology,andotherinnovativefieldswhowillbuildthe newindustriesofthe21stcentury,andsolvesomeofourtoughest 1 globalchallenges. InJanuary2011,PresidentObamacalledonboththefederalgovernmentand theprivatesectortodramaticallyincreasetheprevalenceandsuccessof
1 Obama(2012)StartUpAmerica,TheWhiteHouse,Washington

http://www.whitehouse.gov/economy/business/startupamerica(accessed20May 2012)

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entrepreneursacrossthecountry.Intheyearsincelaunch,theObama Administrationrolledoutasetofentrepreneurfocusedpolicyinitiativesinfive areas: 1. 2. 3. 4. 5. Unlockingaccesstocapitaltofuelstartupgrowth Connectingmentorsandeducationtoentrepreneurs Reducingbarriersandmakinggovernmentworkforentrepreneurs Acceleratinginnovationfromlabtomarketforbreakthroughtechnologies Unleashingmarketopportunitiesinindustrieslikehealthcare,cleanenergy, andeducation

InJanuary2012PrimeministerDavidCameronlaunchedamajorinitiativein anattempttoboostentrepreneurshipintheUK.PrimeMinisterCameron said, SmallbusinessesandentrepreneursarethelifebloodoftheBritish economyandIamdeterminedthatwe,workingwiththeprivate sector,doeverythingwecantohelpthemtostartupandtogrowin 2 2012. Addressingthe99thIndianScienceCongress,thePrimeMinister,Manmohan Singhemphasisedthat "theoverridingobjectiveofacomprehensiveandwellconsidered policyforscience,technologyandinnovationshouldbetosupport thenationalobjectiveoffaster,sustainableandinclusive development"."Innovationcanfulfilneedswhicharenotmetby conventionalmeans,andthisiscriticalinviewofthenumerous challengesthecountryisfacingindeliveringservicestothepeople, 3 especiallyatthebottomofthenationalpyramid." Althoughthesearerecentcitationsofpoliticalsupportforinnovation,the desireandlinksbetweenresearchoutputsandinnovation/entrepreneurship beganinearnestincertainkeylocationsmuchearlier.SiliconValleyiswell recognizedforitsentrepreneurialcluster,asindeed,increasinglyareother locationssuchasBoston,Cambridge(KirkandCotton,2012),Oxford,Munich andelsewhere.Thesecitieshavebenefitedgreatlyfromthepresenceoftop Universitiesandmanyofthestartupsandspinoutscantracetheirgenetic rootstotheresearchandthepeopleattheirrespectiveresearchinstitutions.

2 SmallBusiness(2012),Cameronlaunchesentrepreneurshipcampaign

(http://www.smallbusiness.co.uk/channels/startabusiness/news/1687118/cameron launchesentrepreneurshipcampaign.thtml,accessed19May2012).
3

TheGuardian(2012)Indiaplanssciencepolicytohelptacklepovertyand development,GardianDevelopmentNetwork,4Jan2012.( http://www.guardian.co.uk/globaldevelopment/2012/jan/04/indiasciencepolicy tacklepovertyAccessed28May2012)

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Withthebackdropofpoliticalwill,policymakershavestartedtoformulate initiativestoassistresearchbasedUniversities,whichareseenasproviders oftalentandintellectualproperty,tocommercializetheiroutputs. Commonstrategies

4 Theprimaryresponsehasbeenthesettingupoftechnologytransferoffices (TTO)whichareprimarilyfocusedonthecommercializationofintellectual propertyrights(IPRs)oftheinstitutionswheretheseIPRsarecreated.And, commercializationtakestwomainformslicensingtoindustryandthe creationofspinoffs.

TherearemixedreviewsabouttheefficacyofTTOs.Itappearstheyhave growninnumberbutareoftenunderresourcedandnotmanagedbypeople withanyparticularcommercializationexpertise.Thisauthorhastravelledto andmetwithmanyinstitutionsinIndia,US,UK,Brazil,Egypt,Germany,Italy, Spain,Finland,Denmark,Australia,Malaysiaasaresultofinvitationsto speakonthetopicofentrepreneurship.Inadditiontopersonalinsightsfrom thesevisitsandconversationsthereisalsoevidencefromliteratureaboutthe challengesfacedbythecommercializationagenda.(Wadman,2008) Themainemergentissues Thereisindeed,supportatapoliticallevelandpolicymakerssetthecontext (Goodwin1996)resultinginlegislativechanges,Governmentbasedgrants arebecomingmoreavailableandindustryisincreasinglyreceptiveto arrangementswithUniversitiesandresearchinstitutions.Butduetothelack ofknowhowandresourcesatTTOsandtheirhostInstitutionsthereare severebottlenecks. Inadditiontothelackofunderstandingofthetranslationaljourney,perhaps becauseofthelackofunderstanding,ithasproveddifficulttounlockprivate capitalintermsofinvestmentsininnovations.Thelackofmoregeneral understandingofthecomplexityofthistranslationaljourneymeansthatwe willcontinuetodevelopinnovationprocessesonanecdotallevels,relyingon adhocsocialnetworksforadvice. AtamacrolevelonemightpointtoInstitutionalstrategynotaligningwiththe operationalmodel,becausewhileanInstitutionmayhavewonderful objectives,theyhavenotadequatelyresourced,hiredortrainedpeopleto deliverontheobjectives. TypicalproblemspolicyandoperationalbottlenecksatTTOs: TTOsareoftenChairedandgovernedbysenioracademicswhohavenever commercializedanyinventions. Theirfocusisthereforeongovernancerather thanonoutcomes.

4 http://www.oecd.org/site/0,3407,en_21571361_47691821_1_1_1_1_1,00.html

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BoardsthataresetuptoreviewdisclosuresandIPfilingareoftenattended bysenioracademicsandtrustedindividualsfromindustryratherthanpeople withdomainexpertiseincommercialization. Theprocessesandrewardmechanismsareoftenunclearandtheverypeople whoaretoimplementthepoliciesalsopoorlyunderstandthem.Theresulting atmosphereisoneofmistrust. Peoplewhodonothavepriorcommercialexpertisestafftheoffices.Thisisa crucialproblemastheyarebeingtaskedwithunderstandinghowtonegotiate withindustryorassistwiththecreationofspinoffswheninfacttheyarenot equippedtoundertakesuchtasks. TheTTOofficeisoftenseenasapolicingagencyratherthanasanenabling organizationastheyareunabletosecuretheheartsandmindsofthe researchcommunityandarenotseenasthefirstportofcallbyindustry. ThepositioningofTTOsistypicallynotamajorstrategicthrustoftheresearch Institutionandmaynotalwayshavethefullbackingoftheleadership.Sothey remainoutsidemainstreamactivitiesanddonotgetintothesocialnetworks andindustrybodiestoassistthemwithcommercialization. TheTTOismostoftendisconnectedwiththeteachingagendaofthe Institutionandthisisamajordisadvantage.Theauthorwilldemonstratethat connectingtheteachingofentrepreneurshipandcreatinglinkswith entrepreneursandindustrycanplayamajorpositiverole. Thelistofbottlenecksisnotextant,buthighlightssomeofthemajorissues thatcanstifletheveryprocesstheyarecreatedtoalleviate. Someinstitutionshavebeenworkingtoovercometheproblemslisted, throughamixoftrainingforstaffofTTOs,hiringpeoplewithbusiness developmentexpertise,outsourcingtheircommercializationagendaand establishingmuchmorerobustrelationshipswithentrepreneursandindustry. TherearegoodexamplesofsuchpracticeatplacessuchasMIT,Stanford, Cambridge,ImperialCollegeLondonandelsewhere. Thecentralcontentionofthispaperisthatuntilwehaveimproved understandingandamoresystematicapproachtothetranslationaljourneyof innovationsfromresearchbasedinstitutionswewillnotseethesignificant changesthatareexpectedbysocietyandthetaxpayers.Therestofthis papersetsoutlessonslearntoverthepast10yearsandofferssuggestions forimprovingtheunderstandingofthetranslationaljourneyofIPRoutofthe laboratory. Freeingupthebottlenecks AtUniversityofCambridge,duetofundingthatwasmadeavailablefrom Governmenttoestablishacultureofenterprise,oneofthemajorinvestments hasbeeninthedevelopmentofeducationFORentrepreneurship.This

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resultedinthecreationoftheCentreforEntrepreneurialLearning(CfEL). 5 Therearefiveflagshipcourses ,(VyakarnamandHartman,2011)oneof whichiscalledEmergingTechnologyEntrepreneurship(ETECHProjects). Thiscourseisrunthreetimesandreliesonsecuringemergingtechnologies fromlaboratoriesandhavingstudentsconductcommercialfeasibilitystudies onthem.Thestudentsononecourseareundergraduatesfromphysical sciencesonanothercoursetheyareexecutiveMBAs(parttimeMBA)and thirdlyfulltimeMBAs.InthelattercourseweembedcollaborativePhDsand postdocstoworkalongsidetheMBAs. Ithastakenaverylongtimeforthiscoursetogetunderway,becauseinthe earlyyearsoftheprojecttheTTOwasreluctanttoengageintheprocess.As thecourseoutcomesbecameknownandunderstoodandasstaffchanges tookplacewithintheTTOtherehavebeengrowinglinksbetweenteaching andtechnologytranslation. ThelackofconnectivitybetweeneducationandtheTTOisnotunusual.The authorhasinteractedwithInstitutionsinseveralcountriesasstatedearlier 6 andtheschismbetweentechnologytransferandeducationisevident. ButwhatisitaboutETECHProjectsthatprovideswiderlessonsforimproved innovationmanagement? TheETECHmodelforInstitutions Thissectionofthepaperpresentsanargumentforsuchacourseandthe linksthatitcanprovide.Italsopresents,briefly,thecurriculumthatwas originallydevelopedandrecentadaptationsthathavebeenabsorbedfromthe worldofpractice.Thereareverysimilarcoursesruninanumberof Institutionssowedonotpretendtobeuniqueinthismatter,onlytopresent anargumentinfavourofsuchcoursesandlinkswithTTOs. WhydoInstitutionsneedacourselikeETECH? Atasocietallevelweneedmorepeoplewhounderstandtheprocessof translation.Tobeabletoprovideexposuretotheprocessearlyinthecareer ofgraduateshelpstobuildhumancapitalinthisfield. Ifwereviewthegeneralmanagementstudiescoursesavailable,suchasthe MBAandotherundergraduatecoursesinbusiness,noneofthemtargetsthis complexjourneyaspartofitssyllabus.Thereforetheonlyroutetogenerating expertiseinthisarenaisthroughlongexperienceinorganizationsandthat
5 Afulllistingoftheflagshipcoursescanbefoundatthewebsite:

www.cfel.jbs.cam.ac.uk 6 TheauthorhasbeenVisitingProfessoratAarhusUniversity,Universityof Reading,IndianInstituteofScienceandtheAmericanUniversityofCairo.In additionhehasconsultedforCONACYTinMexicoonseveraloccasions, interactedwithInnovainBrazilandwiththeInnovationCentresinPerthand MelbourneinAustralia.

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doesnotalwaystranslateintoUniversitytechnologyincubationcontexts.Thus wedonothaveanyformalorsystematicwaysofunderstandingthe translationaljourneyandnordowehaveanymechanismstodevelophuman capitalinthisfield. Studentsseekpracticalexperiencewithrealprojectssothattheycanrelateto theworldofpractice.Suchcoursescanmakestudentsmoreemployableas theybegintounderstandcomplextranslationalprocesses. ThereportstheyproducecanprovidetheTTOandthefacultywithinsights aboutthecommercialprospectsforthetechnologiesandinventions.The reportscanalsoactaseducationforthefaculty. Thesupervisorsforsuchprojectscanbefromindustrythusprovidinghelpful insightsandforwardlinksforcommercializationfromtheinstitution. Thereisastrengthenedpossibilityofactualresults.Studentsmaywell uncovermarketsandcompaniesthatcanbeconduitsforthetechnologies. Suchcoursesprovideamorerobustfrontendtotheinnovationfunnel.They donotreplacetheexperiencedmentorsandentrepreneursthatareneededto dothehardworkofactuallyformingcommercialproposals,businessplans andsoforth,butwhattheydoisprovideinsightsintomarketsand opportunitiesthatarenototherwiseavailabletoTTOsandindustry. WhatshouldacourselikeETECHcontainintermsofcurriculum? AtCambridgethiscoursehasdevelopedthefollowingminimumcriteriainto thecurriculum: 1. Conducting due diligence on the science and technology How to carry out due diligence to validate and verify the underpinning science. Understanding the importance of validating the ownership of intellectual property (who are the inventors) alongside the uniqueness of the proposed invention. 2.Applying Creativity incommercializing novel technologiesLearning to apply principles of creativity to identify potential applications and markets fortheemergingtechnology. 3. Stepping stones for Commercialization How to establish the technology and commercial advantages that will yield core propositions for commercialization. One of the early steps is to understand the proposed inventionindetail,intermsofIPstrategyandpositioningagainstcompeting solutions. 4.Market and industry assessmentAlthoughemergingtechnologiesare farremovedfrommarkets/industriesoftoday,oneneedstobeabletoassess competing solutions, the main companies that operate in the sector and to identifythetrendsanddynamicsofthemarketsandindustrysectors.

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5.RoutestomarketHowtoidentifythebestroutestomarketandbusiness models for commercializing early stage technologies. In other words when andhowwillthetechnologystarttorecovertheinvestmentandstarttomake money? 6. Leadership and management of emerging technologies Understandinghowtoidentifywhowillleadtheprojectforcommercialization, and understanding when and how to introduce business aware team members to lead and manage the emerging technology, how to reward and dealwiththetransferofownershipofthebusinessvisionfromtheinventor totheentrepreneurandthentotheprofessionalmanager. Thesetopicsareprovidedasillustrationsonlyastheywillvaryfrominstitution toinstitution.Butunderneaththisisamoreintriguingissuethathasbecome apparentthroughrunningthecourseoverseveralyears. Methodology ThemethodologyofrunningacourselikeETECHrequiresfivestakeholders tocometogether: Thetechnologytransferofficeholdstheformalremitandmusttherefore engageintheprocessoftranslationalactivity.Theycanalsoprovidelinksto professionalserviceorganizationssuchasIPlawyersandotherswhocan assistwithearlyvettingoftechnologiesatatechnicallevel. PrincipalInvestigatorsandtheirstudents/postdocswhoseworkwillbeused asprojectstimuli.Eachoftheirtechnologiescanprovidemultipleprojectsfor studentswhocandevelopmarketapplicationprojectsforanyonegiven technology. Teachingfacultywhoneedtoteachandtoorchestratelearningbythe students. Entrepreneursandindustrialistswhohavepriorexperienceof commercializingtechnologyandcanaddverypracticalinsightstothe process,especiallytothoseelementsthatcannotbefoundintextbooks.They alsoactasrolemodelstoillustratetostudentsandtoprincipalinvestigators thatitcanbedone.Theyalsobringarealitychecktotheprojectsandif thingslookinterestingtheirnetworkscanbehelpfultomovetothenextlevel. Thestudentsneedtobemotivatedtocarryoutprojects.Oftentheworkload forsuchaventurefaroutweighstheactualnumberofcreditsallocatedto suchactivityandsothestudentsneedtobeinspiredtogetintothedepthsof theinvestigation. Coursesliketheseneedtobehighlyinteractive,demandingoutputsfrom studentsatinterimstages.Thecoreoutputsfromstudentprojectscanbea presentationandawrittenreport.Thefirstoutputfirmsuptheirabilitiesto articulatecomplextranslationalprojectsandthesecondoutputprovidesall theargumentsanddetailedevidencetobackuptheirrecommendations.

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Outcomessofar ETECHhasenabledareviewofsome75technologiesoverthepast7years. Thishasinvolvedaround200studentsand20principalinvestigators.Forthe purposeofthispaperthefocusisonthelessonslearntratherthanthe outputs. Whathavewelearntaboutmaterials,processes,stakeholders,technology suitabilityforcommercializationandtherealityofUniversityresearchbeing usedtostimulatetheeconomyandinnovationecosystem? Materials Oneofthefirstlessonslearntisthatnoneoftheextanttextbooksinthefield oftechnologyinnovationandmanagementprovidethetoolswithwhichto actuallycarryoutthetaskofassistinginthetranslationofresearchinto marketreadiness. Theessentialmodelsinentrepreneurshiptextbookssummarizetheprocess intothreestagesasinFigure1below. 1. Innovationphasetimewhenentrepreneursgenerateandselectideas fornewproductsorservices 2. Implementationphaseatriggeringeventandtheacquisitionofcapital andotherresources 3. Growth phase the success of the new venture and the need to acquirenewmanagerialskills Eachofthesephasesisinfluencedbyanumberoffactorssuchaspersonal characteristics, the environment and the characteristics of the innovation as showninfigure1(Timmons,1999).

Personal Characteristics Creativity Informationseeking behavi our Toleranceof

Personal Characteristics Risktaking Jobdissatisfactionorloss

Innovation Characteristics Productprotection Organizational team Qualityof

Personal Characteristics Educationand experience Managerialability

Organization Characteristics Management practices Otherorganization characteristics

Innovatio n

Implementation

Growth

Environment Sourceofopportunity Supportforcreativity Personalenvironment

Environment IncubatorOrganization OrganizationCulture

Environment Competition Environmentalchange

Figure1:TheentrepreneurialProcess Thismodelhasbeensimplifiedasopportunityrecognitionfollowedby validationandthenexecution.Thesethreestagesaredescribedinnumerous

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journalarticles(ShaneandVenkataraman,2000)andisadaptedinFigure2 below.

Newventure Newproject NewDivision Spinoff Acquisition

Idea

Validate

Implement

Researchgroups Individualacademics Industryresearch

Duediligence Marketresearch Businessplans

Newventure Licence Jointventurewith industry

AdaptedfromShaneandVenketaraman,2000

Figure2:Adaptedschematicofopportunityrecognition Thesestepsarealsoseenincorporatemodelsofinnovationthatdepictthe threestageswithinfunnels,whereideasaredevelopedatthewideopenend, withvalidationintothenarrowingpartandeventuallynewventuresand productsemergingfromthefunnel.Openinnovationmodelsnowdepictthe funnelasporousandarguethatideascancomefromanywhereand commercializationcantakeplaceatanytimealongthefunnel.Theopen Innovationmodelarguesthatlargeinstitutionsneedtorecognizethat expertisecanbeanywhereintheworldastheywillnotpossessallthe brightestpeople.(Chesborough,2003). Theinterestingelementofthesetextsoninnovationprocessesisthatthey completelyignorethetranslationaljourneyandbeginwiththeassumptionthat thetechnologyissomehowreadyforcommercialization.
7 Figure3illustratesthepoint.TTOmaterialsasofferedbyPraxisUnico a leadingedgenotforprofitorganizationinthefieldoftraininghascoursesand contentontopicssuchasbusinessdevelopment,spinouts,fundamentalsof technologytransfer,pitching,researchcontractsandUKrelatedimpact

7 http://www.praxisunico.org.uk/training/

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measures.Otherorganizationsthathavedeepexpertiseintechnology 8 9 commercializationaretheFraunhoferInstitute ,ETHZurich amongothers. Theyprovidehandsonsupportforlicensingandforspinouts.Itisnotevident thattheyleveragetheirstudentbodiestoscalethenumberofpotential technologiesthroughthefunnel.Thereareofcoursemanypreeminent institutionsthathavearemitfortechnologycommercializationandtheycover thetranslationaljourneyquitewell.However,thewiderpictureisthatofa ratherlimitedflowfromdisclosures,throughpatentfilingtocommercialization. Especiallyinrecentyearsthenumbersofspinoutshasreducedalthoughthe numberofTTOorganizationshaveincreased.(PraxisUnico,2012)

Missing Technology readiness IPownershipclarity Prototyping Marketexplora onsatgloballevels Fundingfor betates ngwith clients Codevelopmentofproduct/marketproposi ons Linkageswith thesocalledtriplehelixof business,governmentandresearchins tu ons

TTOmaterials

Entrepreneurship materials

HEBusiness Development Crea ngspinouts Fundamentals of technologytransfer Pitchingskills Researchcontracts Impact

Businessplanning Venturecapital Strategy Marke ng

Figure3:Whatismissingintheunderstandingofthetranslational journeyinInnovationManagement Meanwhilethetypicalmaterialsonecoversinentrepreneurshipareasthat relatetobusiness(asdistinctfrompersonaldevelopment)includebusiness planning,marketing,strategyandventurecapital.Whathasbecomeevident fromseveralyearsofdevelopmentwithETECHisthattherearegaps betweenwhatTTOprofessionalsknow,whatentrepreneursdoandthe translationaljourney. Thegapsaretheresultofthetwoworldsorresearchandenterprisenotbeing connected.Thetranslationaljourneyismissingaframework.

8 http://www.fraunhofer.de/en/rangeofservices/advice.html 9 http://www.ethz.ch/industry/index_EN

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Thequestionsraisedonthemissingcontentinclude: Technologyreadinessatwhatstageofdevelopmenthasthe technologyreached?SeeforexampletheNASATechnology ReadinessLevels(Table1below) WhoactuallyownstheIPandwhenwasitfiled?Havepatentsbeen grantedoristhereanyotherformofprotectionofIPrightsgivingthe TTOortheprincipalinvestigatorstherightstocommercialization? Istheprojectstillatthelevelofpublicationsorarethereworking prototypesorevenproofofconcept?Dotheyworkonlyinthelaboris thereevidencethatthetechnologycanfunctionoutsidethelab? Hastherebeenanykindofstudytodemonstratemarketneed?Often thisislimitedtonarrowconsiderationsbutwithemergingtechnologies itisessentialtosearchforglobalopportunities. Canearlyfundingbesecuredfrompotentialclientstoestablishthat thereisaneedandthatorganizationsarewillingtoengageinthe processofconvertinganinideaintoaproduct? Istherescopeofjointventuresoropeninnovationstyleworkgroupsto codevelopproducts?Oftenadisruptivetechnologywillrequirea completesetofstakeholderstodevelopthestandards,applications andsurroundingregulatorystandards. Aretherecodevelopmentopportunitiesoffundingthatmixes governmentgrantswithindustryinvestments?Thismaybeneededto mitigatecommercialrisk.Governmentsplayacrucialroletomove technologiesforwardtothepointthattheprivatesectorandtakeupthe products.

Thisauthorhasattemptedtocapturethetranslationaljourneyintwoways. Thefirst(Figure4)depictshowascientificdiscoverygoesthroughanumber ofstagestoinclude,inthefirstinstancetheconversionofscientificdiscovery orinventionintoaproductorservice.Theproductorserviceneedstobe turnedinaholisticsetoffeaturesandbenefitsthatclientscanengagewith andthisopensupthequestionofroutestomarkets,segmentationandfinally definitionsofunmetneedsthattheevolvedtechnologycanaddress. Asanexampleifonetakestheinventionofthelightbulb,itwasnotpossible totrulycommercializethisuntilelectricity,thedevelopmentoffittings, switches,trainedelectriciansandthedesignelementsneededtoinstallin homes,officesandonstreetswasmorewidelyavailable.Therehasbeen continuousdevelopmentoflighting,withtubelightsandnowwithLEDs,allof whichareonlypossiblebecauseofthesystemsthatarenowinplace.

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Figure4EvolvingFromtheCoreS.Vyakarnam ThisisasimplifiedFigureandonecanimagineradiatingoutfromthecorea discoverythatmayhavemultipleapplications.Theheadlinedescriptorsneed tobeturnedintotaskliststoenablemanagersofTTOs,entrepreneursand investorstomakedecisionsandchoices. Itisimportanttootounderstandthepossibilitiesthatresultfromthisprocess, forexamplewhentofileforIP,whatexactlyisonefilingandistherelikelyto beamorelucrativepieceofIPthatcomeslater?Therearerisksoffilingtoo earlybecausethosewhotrulyunderstandthemarketplacecanboxinacore pieceofIPlater.Thesekindsofissuescanonlybedealtwithonceadeep divehasbeenconductedintothetechnology/marketinterface. Inreality,researchfromresearchinstitutionsisrarelyreadyforthemarket andalotofworkisneededtogetthetechnology,productandcommercial valuepropositionreadyformarkets. ThetranslationaljourneyinFigure4canbecombinedwiththeentrepreneurial processdescribedbyTimmonsandbyShaneandVenkataramanandresults inthefollowingsevenstageframeworkinFigure5below.

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Transla onal Journey

Novel Patentable Policeable technology Technical a ributes Technical advantage Applica ons Applica ons commercial advantages Viable applica ons

Significant wins

Faster Smaller Cheaper Neweffects

10x 2X 1X

Filter Brainstorm Comparison Withrival technologies Marketdynamics Routestomarket Createand Commercialisation Understand Potentialapplications Segmentation M A R K E T S

Marketsize Potentialbuyers Reasonablereturns

S.Vyakarnam

Figure5:Translationaljourneyfromlabtomarket

1. Theactualdiscoveryorinvention. Hownovelisitwhencomparedtothosethatmightbefromother competinglaboratories?Howleadingedgeisthediscovery?Whatare thepublicationsinthearea?Isitpatentableinitself?Thisfirststagecan berefinedusingtheNASATechnologyReadinessLevels.Ofcoursefor technologiesinfieldsotherthanrocketscience,theTRLmustbeusedas ametaphor. 2. Technicalattributes Doesthediscoveryorinventionactuallycreatemajoradvantagesover rivaltechnologies?Isitbetter,faster,cheaperordoesitcreatecompletely noveleffectsthatmightthenopenupnewmarketsthatwerenototherwise possible? 3. Technicaladvantages Ifthereareadvantagesarethesesufficientlyexcitinginthesensethat customerswouldbewillingtoswitchover?Aretheadvantages10times betterorevenmoreintermsofprice/performance,lifetimecostsorother metricsthatareusedbycustomers? 4. Applications Whatmightbealltheopportunitiesforthediscoveryorinvention?Itisnot sufficienttoaddressonlyonemarket.Theremaybemanyapplicationsfor

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thetechnologyandthisisimportanttomakedecisionsaboutIPfiling, investmentsandcreatingroadmapsthatareattractivetoinvestorsand managementteams.Afullscalecreativeexerciseisrequiredatthisstage ofdevelopmenttoexplorewhereandhowtoentervariousmarket opportunities.Teamsshouldbeencouragedtofindatleast56major opportunitiestogetstartedwithideasofwheretoexplorethosethatare commerciallyviable.Thisisquitehardforthosewithscientifictraining,as theywillstarttoevaluatetheopportunitiestooearlyandbecome judgementalaboutopportunities.Multiskilledteamsshouldundertakethis task. 5. Applicationscommercialadvantages Fromalargelandscape,teamscanundertakesomedetailedanalysesof markets,competitorsanditeratearoundissuesoftechnology development,productdesignandotherdetailtonarrowdownfromabroad setofopportunitiestoamorefocusedsetofmarkets/customers. 6. Viableapplications Itisatthisstagethatoneshouldengageinhighlyexperienced entrepreneurialteamsthathavedomainexpertise,sothatahardnosed assessmentcanbemadeandperhapsdetailedplanscanbesetoutfor commercialisation.Itisatthisstagethatvaluepropositionscanbe developedforclearlydefinedmarketsegmentsanddecisionsabout whethertospinoutaventureordeveloplicenceagreementswithselected companiescanbetaken. 7. Significantwins Finally,iftheworkhasgonewellwithastrongwindfrombehind,the chancesofsuccessareincreasedthroughsuchaprocessoftechnology andcommercialfeasibilitystudies. Stages13ofthetranslationaljourneyinFigure5canbeansweredusing theNASATRLindex(Table1below).ThisTableismosthelpfulasitcanalso assistinsettingtimelinesandbudgetsforunderstandingthecomplexitiesof convertingascientificdiscoveryorinventionintousableproductsand services.Inaerospace,currently,itisassumedtotakeapproximatelyone yearperTRLevel.Hightechandinvestorpatiencewouldrunoutatthose speedsbutthelevelsthemselvesarehighlyusable, ProgressonwardsfromStage34ofthetranslationaljourneycanbe developedwiththehelpoftheTechnologyAdoptionLifeCyclemodelEverett Rogers(1962),butinanupdatedform.Thisisbecausethenearnessto marketsandcustomersstartstocomeintofocusandastrongmarketled strategyisneededforthefurtherdevelopmentoftheinnovation. Technologyadoptionlifecycle TherehasbeenahighlyinfluentialtextbyGeoffreyMooreinhistwobooks: CrossingtheChasm (2002)andInsidetheTornado(2005).Hedrawsonthe technologyadoptionlifecycle.Intermsofgenerallyavailablematerialsthis

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workisprobablythemosthelpfulfortechnologiststofillinthemissingcontent inthetranslationaljourney. Mooresegmentsthemarketsandthenbuildsacaseforhowmanagerscan developproductandentrystrategiesaccordingtothesegments. Themarketissegmentedintonumerousstages: Innovatorsandearlyadopterswillexperimentandexplorenewproducts whentheyarefirstmadeavailable.Theydonotmindifthingsdonotworkas promised.Theyarehappytotinkerwiththeproductandtheservice.There areveryfewpeoplewhofallintothismarketcategory. Thencomesthemainstreammarketplace,whichisverydifferent.Here customerswanttobuythingsthatareproven,haveafullproductofferingthat includesaftersales,augmentedvaluepropositionsandsoforth.Anditisthis marketplacethatprovidestherealscopeforgrowth.Betweenthefirstphase ofearlyadoptersandthemainstreammarketthereisthoughttobeachasm intowhichmanyhightechfirmsfall.Theyareunabletoadapttheirofferings, managementteamsandresourcecapabilitiestomeettheneedsofthemass market.TheuseoftheEverettRogersmodelbyGeoffreyMoorehasbecome legendaryinhightechmarketing.Itisausefultextandisbasedon entrepreneurialstrategiesgivingexecutivesalanguagewithwhichtotake theirplanstoboardsandinvestors. Itisnotusedenoughandthemysteriesoffailurecontinuetohauntinvestors andentrepreneursofearlystageventures.Eveninlargecorporationswith significantinnovationsthismodelhasproveddifficulttoimplement,because theyactuallyoftenlacktheinternalmechanismstogettheirprojectstoearly adopters.Theirsystemsaresetformainstreammarketsandthisinturn makesitattractiveforsmallfirmstoeventuallytargetlargerfirmsforbeing acquired.Smallfirmscanprovethemarketandtheproductthebigcompany canthentakethemintothemainstream.Atleastthatisthetheory. Butthereismorethanonechasmandabetterunderstandingofthelater stagesofthetranslationaljourneyisneeded. Butthereismorethanonechasm The process can be seen in figure 6 below, where the Crossing the chasm modelhastwoprecedingchasmsaddedtoit,inrecognitionofthecomplexity of formulating strategies fordisruptive technologies (Phadke and Muthirulan, 2010). The translation journey reaches its first chasm once it has generated ideas andappliedfilterssuchastheNASATRL.Atthispointthedecisionneedsto be made about developing proof of concepts, demonstrators and creating business plans. Between the two stages there is likely to be need to raise funding,fileforIP,holdconfidentialdiscussionswithpotentialclientsandget marketfeasibilitystudies.Decisionswillneedtobemadeaboutwhattypeof

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demonstratortobuild,inturnraisingquestionsaboutwhotheinnovatorclient organizationswillbe. Assumingthatthefirstchasmiscrossedsuccessfully,thenextstageistoget beyond the innovator clients to those who are early adopters. They need differentbuyingvaluepropositions.Forthemitisnotaboutexplorationofnew technologies,itismoreaboutfindingoutifthetechnologysolvesaparticular problemforthem(thesocalledunmetneed).Theymaybewillingtopaya premiumatthisstageastheyrealizethatthesolutionisnotyetfullyworked up.Theyalsoneedtoseeresultsfromthedemonstrator. Fromhere,thetechnologycanreachthethirdchasm,whichistheonlychasm that Geoffrey Moore talks about in his two books. This is where the venture hasprobablybeenwellestablishedandthekeyobjectiveistogainscale.The customers are now completely different, wanting price/value, needing a completeservicewithaugmentedofferings.Theywillnottolerateexploration orhighpricedexperimentswiththeirproblems.

Chasm1

Chasm2
EarlyAdopters

Classical Moorechasm3
FastFollowers Mainstream

TargetMarket

TypicalBusiness Stage

Startups IdeaDevelopment CorporateVentures Est.Businesses

LikelyBusiness Ideageneration &Filtering Objective

Proofofconcept, Demonstrator& BusinessPlanning

Buildingthe Beachhead, prototype

Reaching massmarkets

Figure6:TripleChasmmodel(Phadke)

Theimplicationsforunderstandingthemultiplechasmsisthatithelpsto positionproposalsforraisingmoney,hiringtherightpeopleintotheteam, creatingappropriatevaluepropositionsandensuringthatoperationalplans arealignedwiththerightsetofobjectives.

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BusinessValue

Discussion Societyisdemandingmorefromitsresearchinstitutionsintermsof convertingblueskyresearchintoapplications.Formanyyearsresearch institutionshavenotbeenanswerabletothetaxpayerandasgovernments becomemoreawareoftheirscareresourcesUniversitiesarebeingexpected tocreateadditionalsourcesofincomefromleveragingtheirresearch. Beyondthefinancialimperative,thereisgrowingrecognitionthatinnovation canprovidesolutionstobigproblemslikeclimatechange,poverty,affordable healthcare,waterpaucityetc.,andresearchdoesexistintheseareas,but howtobringthemoutinfinanciallysustainablewaysremainsthebig challenge. Itisinthiscontextthatmechanismsforscalableapproachesareneededand aworkabletranslationaljourneyneedstobedeveloped.Eachstepofthe journeywillneedadaptingtolocalneedsforexampleattheideavalidation stagethereisaframeworkthatcanbeadaptedfromtheNASAtechnology ReadinessLevelsframework.OverseveralyearsofrunningETECHwehave foundthatmanyprojectshavereachedbetweenTRL2and4. Perhapsbecausewewerenotusingsuchareadinessframeworkorbecause ofthevisionaryeyeoftheprincipalinvestigatorsand/orthehypesurrounding academiccitationscompanieshavebeenformedatprematurestages.This hascausedmanyfailuresandinappropriatefundingandIPstrategieshave beenpursued.So,thesimpleinclusionofaTRLframeworkmayassistatthe earlystagesofdevelopment. Forthelaterstages,whereTTOstaffarenotconnectedtomarketsand customersthereisneedtomanagethechasmsmorecarefully,tocombine creativemarketmakingskillswithriskmitigation.Usingatoolsuchasthe TripleChasmmodelandworkingwithpeoplewithdeepdomainexpertisewill morelikelyprovidepositiveresults. Geoffrey Moore has labeled his book as marketing and selling disruptive products to mainstream customers and so it is no surprise that this book does not recognize the earlier challenges of idea generation and validation. SotheintroductionoftheTripleChasmModelstartstoprovideaframework tothesecondhalfofthetranslationaljourneywhiletheNASATRLframework canbeusedfortheearlierstagesofthejourney.
10 Thereareofcoursemanytools fromtheboxofmanagementliterature,such asfromstrategy,marketingandfinancethatareneededtoaugmentthe processdescribedabove,butthesetoolscanbeeasilydiscoveredwhen usingthetranslationaljourneyapproachtoinnovationmanagement.

10 CfELhasseveralreadings,videosand

otherresourcesviaitswebsite

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Table1NASATechnologyReadinessLevels

TRL1Basicprinciplesobservedandreported:Transitionfromscientific researchtoappliedresearch.Essentialcharacteristicsandbehaviorsof systemsand architectures.Descriptivetoolsaremathematical formulationsoralgorithms.

TRL2Technologyconceptand/orapplicationformulated:Appliedresearch. Theoryandscientificprinciplesarefocusedonspecificapplicationareato definetheconcept.Characteristicsoftheapplicationaredescribed. Analyticaltoolsaredevelopedforsimulationoranalysisoftheapplication. TRL3Analyticalandexperimentalcriticalfunctionand/orcharacteristicproof ofconcept:Proofofconceptvalidation.ActiveResearchandDevelopment (R&D)isinitiatedwithanalyticalandlaboratorystudies.Demonstrationof technicalfeasibilityusingbreadboardorbrassboardimplementationsthat areexercisedwithrepresentativedata. TRL4Component/subsystemvalidationinlaboratoryenvironment: Standaloneprototypingimplementationandtest.Integrationoftechnology elements.Experimentswithfullscaleproblemsordatasets. TRL5System/subsystem/componentvalidationinrelevantenvironment: Thoroughtestingofprototypinginrepresentativeenvironment.Basic technologyelementsintegratedwithreasonablyrealisticsupportingelements. Prototypingimplementationsconformtotargetenvironmentandinterfaces. TRL6System/subsystemmodelorprototypingdemonstrationinarelevant endtoendenvironment(groundorspace):Prototypingimplementationson fullscalerealisticproblems. Partiallyintegratedwithexistingsystems.Limiteddocumentationavailable. Engineeringfeasibilityfullydemonstratedinactualsystemapplication. TRL7Systemprototypingdemonstrationinanoperationalenvironment (groundorspace):Systemprototypingdemonstrationinoperational environment.Systemisatornearscaleoftheoperationalsystem,withmost functionsavailablefordemonstrationandtest.Wellintegratedwithcollateral andancillarysystems.Limiteddocumentationavailable. TRL8Actualsystemcompletedand"missionqualified"throughtestand demonstrationinanoperationalenvironment(groundorspace):Endof systemdevelopment.Fullyintegratedwithoperationalhardwareandsoftware systems.Mostuserdocumentation,trainingdocumentation,and maintenancedocumentationcompleted.Allfunctionalitytestedinsimulated andoperationalscenarios.VerificationandValidation(V&V)completed.

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TRL9Actualsystem"missionproven"throughsuccessfulmissionoperations (groundorspace):Fullyintegratedwithoperationalhardware/software systems.Actualsystemhasbeenthoroughlydemonstratedandtestedinits operationalenvironment.Alldocumentationcompleted.Successful operationalexperienceandsustainingengineeringsupportinplace.

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References: ChesboroughH:OpenInnovation:TheNewImperativeforCreatingand ProfitingfromTechnology(HBSPress,2003). DodgsonM(2009)Asiasnationalinnovationsystems:Institutional adaptabilityandrigidityinthefaceofglobalinnovationchallenges.AsiaPac JournalofManagement.Vol26.P589609Firstpublishedonlinein2008. GoodwinD.D.(1996)TechnologytransferatUSUniversities:Seekingpublic benefitfromtheresultsofbasicresearch.TechnologyHealthCare.Sept 4(3).p32330

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KirkKandC.Cotton(2012)TheCambridgePhenomenon:50yearsof innovationandenterprise.ThirdMillenniumPublishingCompany,London. LeydesdorffLandHEtzkowitz(1998)ScienceandPublicPolicyVol25(3)p 195203 MooreGA:(2002)Crossingthechasm:Marketingandsellingdisruptive productstomainstreamcustomers.CollinsBusinessEssentials.NewYork. MooreG.A.(2005)InsidetheTornado.CapstonePublishing,Chichester,UK PhadkeUandAMuthirulan(2010) http://www.acceleratorindia.com/page/resource/triplechasmmodel http://www.praxisunico.org.uk/uploads/Spinouts%20UK%20Quarterly%20Jou rnal%20issue%203.pdf Rogers,E.,DiffusionofInnovation,Barnes&Noble,1962 ShaneSandSVenkataraman,(2000):Thepromiseofentrepreneurshipasa fieldofresearch.AcademyofManagementReview.Vol25,No1,p217226 TimmonsJ(1999)TheEntrepreneurialProcess.InNewVentureCreation: st th Entrepreneurshipforthe21 Century,5 Edition,Irwin/McGrawHill,Boston, MA,p2551 VyakarnamSandNHartman(2011)UnlockingtheEnterpriserInside.Abook ofwhy,whatandHow.WorldScientific.Singapore. WadmanM:Thewindingroadfromideastoincome: http://www.nature.com/news/2008/080611/full/453830a.html

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