Technology Transfer
What can Parliamentarians Do?
CPA, London, United Kingdom
26 July 2011
The commercial challenge

How do you get from technical ‘proof of concept’ to broadscale market penetration?
Technical
‘proof of concept’
Developt &
early market entry
Growth Phase
£300 bn
Publicly
Funded
Research
Venture
Capital
Investment
Round(s)
Acquisition
By
Technology
Company
Commercial
Maturity
Broad-Scale
Market
Adoption
2
The market is inefficient


Established technology companies are conflicted: adopting
better, cheaper technologies simply cannibalises their
existing business.
In developing country market established companies may
not exist
Technical
‘proof of concept’
Developt &
early market entry
Growth Phase
£300 bn
Publicly
Funded
Research
Venture
Capital
Investment
Round(s)
Acquisition
By Tier One
Technology
Company
Commercial
Maturity
Broad-Scale
Market
Operation
To Partners’
Benefit
3
There is a critical resource gap


Technology transfer offices do not have the skills and
resources to develop an investible commercialisation plan.
Traditional VC model is not to rescue good technologies
from bad business plans.
Technical
‘proof of concept’
Developt &
early market entry
Growth Phase
£300 bn
Publicly
Funded
Research
Venture
Capital
Investment
Round(s)
Acquisition
By
Technology
Company
Commercial
Maturity
Broad-Scale
Market
Adoption
4
H2O fills the resource gap

Solution 1: harness H2O scouting process to the strategic
needs of our Partners to identify best available technologies.
Technical
‘proof of concept’
Needs-driven
technology ID
Developt &
early market entry
Growth Phase
£300 bn
Publicly
Funded
Research
Scout Best
Available
Technology
To Meet
Need
Venture
Capital
Investment
Round(s)
Acquisition
By Tier One
Technology
Company
Commercial
Maturity
Broad-Scale
Market
Adoption
5
H2O fills the resource gap

Solution 2: harness H2O’s team of experienced technology
entrepreneurs to our partners’ network to take technologies
through ‘proof of value’ and into the market.
Technical
‘proof of concept’
Needs-driven
technology ID
Commercial
‘proof of value’
Developt &
early market entry
Growth Phase
£300 bn
Publicly
Funded
Research
Scout Best
Available
Technology
To Meet
Need
Commercial
Developt
& Spinout
Creation
Venture
Capital
Investment
Round(s)
Acquisition
By
Technology
Company
Commercial
Maturity
Broad-Scale
Market
Adoption
6
What Can
Parliamentarians
Do?
“Roots
& Shoots” Model
Identify Which Markets to Stimulate
National Level Strategic Thinking
Technology
Scout
Process
Nurture Commercial “Shoots”
Into Local Markets
Public Support to Leverage Private Investment
£300 bn
Publicly
Funded
Research
Technical
‘proof of concept’
Cherry Pick
Best
Technology
To Meet
Need
Establish
NewCo
Around
Best
Technology
Bed Down “Roots” Into
Local Research Base
Translational Research Funding
The opportunity

The world spends iro £300bn on publicly funded research annually; the
technology outputs mostly neglected.

Technology transfer system is hugely inefficient
o Technology Transfer Offices are grossly under-resourced;
o Venture Capital (if available) needs well developed business plans;
o Incumbent tech companies (if they exist) view innovation as a risk.

Key limiting factor: experienced technology entrepreneurship
o Research Institutions lack the skills and resources to develop high quality
commercial propositions from raw technology
o Venture Capital will not invest in undeveloped propositions

Challenge to pull the best available technologies through to market

Opportunity to cherry pick the best of the world’s publicly funded
research output to meet market needs, unlock financial returns and
deliver long-term social impact
8
Dr Paul Coleman
[email protected]