Presentation to
ASQ/INCOSE
Duncan Stewart
President/CEO
January 14, 2009
High Tech
High Growth
High Impact
501(c)3 nonprofit organization with a mission to provide
resources and advice to innovative entrepreneurs, allowing
them to successfully grow their companies. Our clients create
high-wage jobs, commercialize cutting-edge technologies, and
play a vital role in the economic development of the region.
Resources
Furnished Office Space
Printer/Fax/Copier
Phone/Internet
Conference Rooms
Advice
Business Planning
Executive Coaching
Research & Analysis
Investor Relations
Gary Markle
Board of Directors
Vice President
Econ Dev Corp
Executive Chairman
Brian Binn
Alan Steiner
Dr. Dan Dapani
Dr. Venkat Reddy
President, MAC
Chamber of
Commerce
Ex Officio
Retired Executive
Hewlett Packard
Dean
Engineering College
UCCS
Ex Officio
Dean
Business College
UCCS
Ex Officio
Chairman Emeritus
Jeff Cooper
Jan Horsfall
Laura McGuire
Chris Blees
Chris Odell
Managing Director
New Venture
Resources
CEO
Gelazzi
CEO
Qgenisys
CEO
BiggsKofford
Executive Chairman
Fluke Networks
Secretary
Duncan Stewart
Chief Executive
Officer
President/Treasurer
Staff
Mary Fox
Dr. Roger Neeland
Operations Director
Program Director
Heather Brown
Paul Byer
Al Brown
Kris Everett
Business Analyst
Senior Advisor
Senior Advisor
Technical Analyst
Emerging Focus Areas
Biomedical &
Sports
Technologies
(BST)
Security &
Defense
Technologies
(SDT)
Energy &
Environmental
Technologies
(EET)
Information & Communication Technologies
(ICT)
Current Clients
ProAutus
TM
Programs/Initiatives
• Colorado Homeland Defense Alliance
• National Security Innovation Competition
• CU Technology Transfer Office support contract
• Riyadh Technology Incubation Center (Saudi) support contract
• Internships (UCCS, AFA, CSU)
• High Altitude Investors angel club
• Emerging Tech Day at Homeland Defense Symposium
• Technology Development Fund
• New World Class Incubator Facility
Technology Transfer Fundamentals:
Spinouts, Startups, and Licensing
NeoClassical Economics
• Markets move predictably toward equilibrium
where supply = demand
• Assumes many buyers and sellers, rational
decisions, prices set by the market transaction
process, commodity-like products/services, and
transparency (all transactions are known)
• Wealth is created when suppliers hire workers
and this income is used to drive demand
• Large firms dominate due to economies of
scale and scope
• Ignores the origin of new demand
• Depicts the market as static
Entrepreneurial Economics
• Markets are chaotic and largely
unpredictable
• Innovation (use of inventions to
create new products/services) is the
driving force behind new demand
• Entrepreneurs use innovations to
destroy the structure of existing
markets (“creative destruction”)
• In free market economies, job
creation, innovation, and economic
growth are dominated by small
firms
• Depicts the market as dynamic
“Anything genuinely new creates markets that nobody before even imagined.”--Drucker
Innovator’s Dilemma
(Christensen)
• One of the most consistent patterns in business
is the failure of leading companies to stay on top
• This is largely due to the belief in staying close
to current customers (sustaining technologies)
• This focus often prevents organizations from
recognizing and exploiting radically new
opportunities (disruptive technologies)
– They look too small and different and take too long
Corporate Options to Thrive in a FastPaced Knowledge-Based Economy
• Internal “skunkworks”
• “Intrapreneurship”
• Spinouts
• Corporate venture capital (startups)
• Teaming
• Acquisitions
• Sponsored university research
• Licensing (government, university, small biz, inventors)
University Research & Development
Virtuous Life Cycle
Products/Processes
for Consumers/Businesses
Industry
Funding
Development Process
Government
Funding
University
Funding
Research
Proposal
Scientific
Discovery
Technology Transfer
Attract faculty/students
Reputation
Patent
Publication
License
Typical University Research Process
Royalties
Taxes
Income &
Wealth
Commercialization
Jobs for Employees
Profit for Owners
Products/Processes
for Consumers/Businesses
Technology Transfer
Commercializing government/university research
• Benefits to society/economy
– Development of industrial capabilities
– Development of economic base (jobs/taxes)
– Royalties to fund future government
research
• Benefits to universities/government labs
– Royalties to fund research/other activities
– Justification for future government grants
– Improved reputation (attract faculty,
students & donors)
• Benefits to industry partners
Bayh-Dole Act of 1980 gave
universities title to patents gained
from federally-funded research &
allowed exclusive licensing
– Access to world class facilities and talent
– Ability to exploit research without upfront
investment
– Often includes eager customer
700 Federal laboratories employ more than 100,000 scientists & engineers
Cooperative R&D Agreements
(CRADA)
• Contract between R&D
organizations
– University, government, industry
– Cross-border
• Shared objective
• Shared resources
• Shared ownership of intellectual
property
Because the government does not provide funding, acquisition regulations do not apply
Licensing Fundamentals
• Intellectual Property
– Patent required to validate ownership
• Level of Exclusivity
–
–
–
–
–
–
Exclusive: single license
Co-exclusive: multiple but limited number
Term-based: exclusive for first X years
Field-of-use: only some uses/markets
Geographic: limited territory
Nonexclusive: anyone
• Royalties
– Compensate organization for supporting
R&D
– Compensate inventors for effort/initiative
MIT Licensing Office (2007)
-282 Patents Filed
-147 Patents Issued
-117 Licenses Issued
-$68.8 M Gross Income
90% of research funding at U.S. universities is provided by the federal government
Learn More
• Association of University Technology Managers
www.autm.org
• Federal Laboratory Consortium
www.federallabs.org
• National Business Incubator Association
www.nbia.org
www.cstionline.org