Technology Transfer
from University Research to the Commercial World
Tim Cook
Tim Cook
BA (Physics) 1969, D Phil (Cryogenics), 1972
HNC Mechanical Engineering, Diploma in Accounting & Finance
Managing Director Technology-based companies (1983 – 90)
7 years
Private Investor (1990 – 97)
7 years
Industry
Oxford Analytical Instruments
Microsystem Design Limited
Micrelec plc
Founding Managing Director Oxford Semiconductor
Founding Managing Director Oxford Asymmetry
Investment
University Technology Transfer (1997 – 2007)
10 years
Managing Director Isis Innovation,
Oxford University (1997-07)
Academia
Visiting Professor in Science Entrepreneurship, Oxford University (2006-09)
Advisor Cambridge Enterprise Board (2006 – date)
Commercialisation Panel - Oxford Brookes (2011 - date)
Non Executive Director 2007 – date
Isis Innovation (1997 – 2014)
Lombard Medical Technology (2007 – 2011)
Oxford Gene Technology (2007 - )
7 years
Programme
 Introduction & Message
5
 The Oxford University Model
9
 Technology Transfer Tactics
6
 Spinout Companies
5
 Culture Change
6
What is a University?
 A great University is defined by great academics
• Great researchers
• Great thinkers
• Great teachers
 Not
• Great administrators
• Great technology transferors
• Or even great leaders
 Although list two helps recruit and retain list one
What is a University for?
 Principle products - teaching and research
• There are few alternative sources of either of these
 Valuable by-product - commercial opportunities
• There are many sources of inventions to commercialise
 It is an error to design a production plant to
maximise the output of the by-product
• If this is detrimental to the quality of the principle products
 Tech transfer comes at the end of the research
• Of course the value then extracted must be maximised but not
at the expense of the prime mission
 Ignoring this will turn some great universities into
“not-great” contract research companies
Speaker’s message
 Technology transfer is stimulating communication between
two very different cultures (Academia & Business)
 The two cultures will not in general spontaneously
understand each other
• But there has always been the occasional multi linguist!
 Therefore intermediaries are required
• at least to start with
 It only works if the intermediaries have a real
understanding of both cultures
 There is not a single recipe that always works
• But there are some underlying principles
The Challenge – Different Cultures
Commerce



Driven by external needs
Clear goals with
shareholder commitments
Commercial confidentiality
“Academics never deliver”
Researcher



Self directed
Next step defined by
yesterday’s results
Free exchange of ideas
“Industry is out to cheat us”
So we can expect it will be challenging to
build a mutually trusting relationship
Orthogonal Value Sets
Commercial axis
Research ->
Products
2 Dimensional
Intermediary
Licence
€ ->Research Academic
axis
THE OXFORD MODEL
AN EXAMPLE FROM AN OLD UNIVERSITY
Oxford University

Teaching and Research
•
•
•

Commercialisation of results
•
•

Oxford University has spent centuries optimising methodologies
for Teaching (since 1188)
& Scientific Research (since 1700s)
Direct spending on commercialisation is relatively recent
Isis Innovation (Oxford University’s Technology Transfer Co) established in 1988
So this is a relatively new activity in a well-established University
Oxford Model - Key Ingredients
 Rich portfolio of wholly-owned Intellectual Property Rights
• Strong, world-class research base
• Diverse research sponsorship (700 different funders)
 Clear intellectual property (IP) policy
• Led from the top and widely supported
 Investment in research support & tech transfer
• 150 staff in Research Services and Isis Innovation
 Clear internal demarcation of responsibility
 Effective internal & external communications
Intellectual Property Policy - October 2000
 University claims ownership of all employees’ and
students’ IP rights resulting from University research
activities
 The university assists those researchers who wish to
commercialise their research
•
by patenting, licences, spinout companies & consultancy
 Researchers personally share the benefits
• Royalty shares from licences
• Equity in spinout companies
• Income from personal consultancy
Isis Innovation
 A company (established 1988) owned by the University
 To help researchers commercialise their research results
Current Activities
Year to March 2014
Patenting
92
 Licensing of intellectual property
105
 Consulting and service contracts
398
 Formation of new companies
8
Royalty Sharing on Licence Deals
>Isis Innovation pays all patent costs
>£3.1 (€3.8) million in the year to March 2014
>Isis recovers patent costs from royalties
>Isis retains 30% of royalties
>The net revenue is transferred to the University & distributed:
Total
net revenue
Researchers University General
Personally
Fund
Isis
Department
Innovation
Funds
to £72k (€88k)
60%
10%
0
30%
to £720k (€880k)
31.5%
21%
17.5%
30%
28%
26.25%
30%
over £720k (€880k) 15.75%
Equity Sharing in Spinout Companies

Equity shared between:
•
Academic(s) - Not only names on the patent
•
University
•
Investors
•
Managers

Academic and University generally get similar amounts

Investors get what they negotiate for

Manager(s) share 5-15% depending
Note: Everyone on the list has an effective veto
So Tech Transferor’s task is to help them all agree
Academic Consultancy
 Academics can consult for up to 30 days per year
 The University must approve the contract
 Isis Innovation provides an optional service to
• Find opportunities
• Negotiate consultancy rates
• Manage the administration
 If researchers choose to use it Isis charges 7½%
Results Year to March 2014
Isis Innovation has 90 staff
Received £3.1m (€3.8m) from University to spend on patents
Returned £6.8m (€8.3m) to the University
Created 8 spinout companies
Invested in 92 patent applications
Helped researchers win £19m (€23m) of translational funding
Growth for years ending March 2000 to 2014
Source: Isis Innovation Annual Report
TECH TRANSFER TACTICS
Isis Philosophy
 Isis supports researchers who wish to transfer technology
• It is vital that Isis helps researchers see that commercial engagement
can enhance their academic work
• by providing additional resources (both physical and intellectual)
 The researcher’s interest is key to successful Tech Transfer
 Tech transferor’s most critical asset is researcher confidence
 Isis generates researcher enthusiasm by
• Internal marketing
• University IP policy & rewards to researchers
• Recognition – Senior University staff are commercially active
 And commercially active staff achieve senior positions!
• Employing high quality staff in TTO experienced in research and industry
Internal University Marketing
 Set up a lighthouse to attract researchers
 Tech transfer office spends a lot of time and effort on
promotion directed inside the university
• Mailshots, newsletters, magazine articles, www, lectures, handouts,
IP training, local radio, local TV, local newspapers, national media
etc.
 Tech transfer staff attend department seminars, college
lunches, etc.
• In other words they live in the same world as researchers
 I believe the sociology of this is the most critical factor
Managing in a Company, “Managing” in a University
 In a company the workers are employed by the manager
• The worker’s role is to perform their part of the plan
• This is essential if the business plan is to be delivered
 In a pop group the manager is employed by the performers
• The manager’s function is to take care of everything so the performers
can perform
 I believe the “management” of academic superstars will be
much more effective if the second model is adopted
• This message is particularly important to technology transferors!
• Be the “Researchers’ Friend” not the “IP Police”
Oxford Innovation Society – Attracting Business
 Established in 1990 to foster University/business links
 Since 1990 over 90 companies have joined
 Companies pay an annual fee of £6,800 for
membership
Membership Benefits





Ready access to the academics and University
Advance notification of all marketed patent applications
Invitations to thrice-yearly meetings and dinners
Customised research presentations and seminars
Regular newsletters and portfolios
Innovation Society
- highly structured networking






Tea & coffee
reception
Academic
presentation
Sponsor
presentation
Champagne
reception
Dinner in College
After dinner
drinks
Begbroke Science & Business Park
Spinout
Companies
Innovation
Centres
Dept. of
Materials
SPINOUT COMPANIES
An additional challenge
 If we are talking about spinouts rather than
consultancy or licensing there is a third axis
 In addition to academia and industry there are
investors
 Investors are not the same as industrialists
The disparate parties involved in a spin-out
Academic
Industrial Manager
Investor
Insider
Insider
Outsider
One major interest
One company
Lots of concurrent
activities
Route is undefined
at the start
Coordinated plan
Coherent activity
If it’s not working
find a workaround
If it’s not working
fix it
Evaluate
Invest
Monitor
If it’s not working
get out
The third axis
2 Dimensional
Intermediary
Commercial axis
Research ->
Products
Licence
Spin
-out
€ ->Research Academic
axis
Investor axis
€ -> €€€
3 Dimensional
Intermediary
Different activities need different skills
Clean IPR
Spinout
Company
Growing
Company
Protagonists
Researchers
Technology
transferors
Active
shareholders
Skills required
Research
Relationship
building
Driving
management
Technology
transfer
Carried interest
Technology
transfer
Wealth
Main motivation Research activity
Main reward
Research results
Conclusions
 Spinouts involve more than one value system
 This is a challenge for managers and advisors
 Significant benefits can be won by understanding this
 Failing to understand it may prove fatal
CULTURE CHANGE
Culture Change
Entrepreneurial
culture of
researchers
University
technology transfer
resource
Local professional
environment
All three must proceed together but the University must
lead the change because….
1. The ideas are in the University

•
If University provides TT resource, change will happen faster
Oxford University pre-Isis 1 spin-out every 4 years, post-Isis 4 per year
2. If the University doesn’t lead, the University may not
receive its share of the benefits
The University
Executive
(policies)
Gene pool
Commercially
active scientists
Other
academics
Tech
transfer
office
University is a “sub-culture” in a “barter economy”
Investors
Lawyers
Head
hunters
Other
start-ups
PR agent
Specialist
suppliers
Real
estate
Accountants
Leasing
Brokers
Itinerant Managers
Consultants
Banks
Students
Management of a University
– or your relationship with one
University
You
Like leading an elephant with a thin rubber band
1. Walk along with the elephant
• In whichever direction it chooses to go
• Until it gets used to you
2. Start to pull gently on your rubber band
3. If you pull too hard or too suddenly
• You will break your rubber band and
• Have no further influence over the elephant
But
 The caption says “OK I’ve got him, now hit him with the rock”
 Don’t think you will ever have complete control over academics!
Cartoon by Stoney, Ravette Publishing +44 1403 711443 Tony Lopez (Copyright)
Conclusions
 Opportunities exist in Universities for:
• Economic development
• Personal wealth creation
 To realise these benefits needs competent intermediaries
 We have begun to understand the process
Thank you
Painting by Jeremy Sutton, San Francisco Airport, 2004
[email protected]
www.isis-innovation.com
www.brookes.ac.uk/research