3. yet2.com – Global leader in intellectual property
(IP) licensing, acquisition and consulting
Formed in ‟99. Advisory Board includes: AGFA, Air
Products, Bayer, DSM, DuPont, Philips, P&G, Takeda
Full range of services to assist clients in licensing and
technology acquisition
Offices in US, UK, Japan
yet2.com internet presence is unique resource to
facilitate deals –
– 120,000+ registered users
– Network of 10,000+ smaller companies ($10-500m)
Completed 100+ deals with clients
4. yet2.com services – Generating value in IP
Technology Acquisition / Open Innovation
Technology Licensing
• Platforms for non-strategic applications
• Leading edge innovations from Small-Medium-sized companies
Patent Trading
• Private sales of non-core patent portfolios
• Anonymous acquisition of strategic patents
Technology and Needs Identification / Prioritization
5. yet2.com….Experts in Bringing all the Pieces
Together
Global
Technology/
Market
IP
Knowledge
Yet2.com
People
& Capital
Experience
6. yet2.com and Open Innovation
We‟ve worked with 8,000+ buyers of technology
– Key success determinants (structure, culture, incentives, etc)
Conducted 300+ proactive searches on behalf of
technology acquirers
– How to maintain anonymity
– How to maximize valuable responses, and filter out non-
valuable ones
Access to the processes of most of the F500
– 2-3 years ago – only 3-5 really serious companies
– Today – most clients are moving to OI models
7. Why use yet2.com – Global network
yet2.com NETWORK:
YOUR NETWORK: -Rolodex / competencies database
borne of 8000+ introductions
-Suppliers between buyers and sellers
-Select university -100,000+ online global, cross-
relationships industry connections
-Conferences/trade -Direct access to 10,000+ SMEs
shows -Broad reach to
-Industry universities/research orgs/VCs
journals/colleagues -Global network of affiliated
brokers
Both networks important, but will yield different responses
9. Connect - Our Marketing Approach
yet2.com employs multiple channels to make connections:
Direct ‘Rolodex’ channels
yet2.com competencies database
SME Network
Relationships borne of over 5000 introductions between
buyers and sellers (including University, Research, VC)
External expert network
Broadcast channels
yet2.com Marketplace, email communications
Syndication partners and Broker relationships
10. yet2.com Government Experience
Department of the Air Force, Air Force Materiel
Command, AFRL: OPEN INNOVATION SUPPORT
SERVICES (March 7, 2007)
Remote cloud-height and visibility sensing for weather and aviation
High-Birefringence Optical Material
Rapid DC Magnetron Sputtering
Reflective Aerosol
NASA/Lyndon B. Johnson Space Center Contract Award:
Innovation Support Services (Sep 29, 2009)
Bone Density Measurement
Real-time Microbiological Monitoring of Water and Biocides
Radioprotectants
Exoterrestrial Life Differentiation
Portable Imaging
Food Protection
Y12 National Security Complex. Open Innovation Support
Services (ongoing)
11. Open Innovation and Technology Scouting…
Background and Concepts
Market Benchmarks
Key Terminology
12. Open Innovation Defined
Old model (closed innovation):
Companies must generate their own ideas, then develop,
manufacture, market, distribute and service those ideas
themselves.
Spectacular successes of central R&D such as Bell Labs.
Open Innovation:
Useful knowledge is widely disseminated, and ideas must be
used with alacrity. If not, they will be lost. Role of R&D extends
far beyond the boundaries of the enterprise.
Companies must now harness outside ideas to advance their
own businesses while leveraging their internal ideas outside their
current operations.
Open Innovation: The New Imperative for Creating and Profiting from Technology, Henry Chesbrough
13. Open Innovation Defined (continued)
CUSTOMERS‟ UNMET NEEDS
Missing feature / performance Improve an existing product
issue / legislation change
Improve price Reduce cost / identify
manufacturing efficiencies
Step function change in Monitor next generation
performance technology curves
Wholly unmet need Expand into new “white space”
14.
15. Technology Scouting – the Why (key motivations)
Market Intelligence
Speed to Market
Non-Core Technology Opportunities
– One-off Needs
– Technology Platform partners – a consistent innovation
pipeline
Move into „White spaces‟
Consistent organic growth is rarely achieved yet hugely valued
16. The Why - Best Practices goal setting
From DSM‟s Rob Kirschbaum:
Commit to Innovation!
– DSM set a goal of €1b new revenue in 5 yrs
Plus‟s /Minus‟s of Open Innovation
+ Shorter time to market - Info overflow
+ Higher chance of success - Culture change is slow
+ More funnel output - Many legal contracts
+ Lower innovation costs - IP leakage (China)
+ Mitigated risk (options) - Balance of power
+ Reputation ; recruitment - Upfront Investment
+ Knowledge based economy - Less job rotation
17. The Why – Best Practices goal setting (continued)
P&G (Jeff Weedman, head GlobalBusDev) –
– “We will acquire 50% of our innovations from outside P&G.” A.G.
Lafley, 2000
– External sourced has grown from 10% to 50% in 10 years; R&D
productivity has increased by nearly 60 percent
– 9000 internal R&D people; 2m relevant external people
J&J (Jeff Murphy, Exec Dir) –
– Initial metrics (engagement, participation), pipeline growth (growth in
active projects by stage), early wins, end-goals (successes – counts,
revenues, ROI)
– Getting ahead of yourself can lead to unrealistic expectations; falling
behind can lead to killed initiatives
Sara Lee (Paul Chaudury, VP Innovn) -
– Steady-state goals: Net sales from [sourced] products; pipeline
projected value (yr2 sales, risk adjusted); comparative times to mkt
– As important – reporting is institutionalized, and reported to sr mgt
routinely
Sources: Weedman pres‟n to yet2.com 2009 Executive Briefing Conference; Stefan Lindegaard
Innovation Metrics blog 15inno.com
18. The Why - Economics of technology scouting can be
compelling
Acquiring a significant technology can obviate
significant future cost
– Internal R&D success rates widely reported at 10-20%
Typical acquisition prices thru yet2 are $100K-
$500K (upfront/guaranteed costs)
6 months faster to market = 33% greater after-tax
profit
(Source: McKinsey study cited in “Optimizing ROI of time-to-
market”, Katz, Casey and Aiman-Smith, Research-Technology
Mgt, May 1, 2005)
19. Technology Scouting – the How
How to build the organizational groundwork to enable
success
How to identify „worthy‟ Needs
What are best practices for evaluating and actually
acquiring
How to get started
– pilots (and buy-in and metrics)
20. What is Important for Success –
Organizational Groundwork
Choice of Project
– Conduciveness to search
• Likelihood that solution may emerge from beyond your core network
– Business Impact / Urgency
• Existing product line(s) vs. new business opportunity
• Trigger for need (e.g., regulatory requirement, incremental improvement)
– Readiness to acquire
• Project funding & staffing
• Technical competence to evaluate, and/or budget to employ external evaluators
• Willingness to complete development
Client Role
– Ownership – direct involvement of business leader who can “green light”
– Involvement – team bi-weekly calls (with preparation) to screen candidates
– Engagement w/ external cos. – legal hurdles minimized; sample evaluation
– Momentum – maintaining drive throughout process; willing to “close”
21. Organizing for Success
Build dedicated team, but…
– Ensure project teams include those who would have developed the
solution internally
Create incentives for entrepreneurial behavior
Staff & skills require a careful mix…
– Cooperative competencies
– Ability to work with smaller companies
Use external resources to extend „reach‟
– Go beyond conversations with suppliers, technical conferences,
serendipity
Funding
– Set aside funding in budget both for “searching” and for “acquisition”
22. Deals - Factors For Success
1. Well described &.accurate Technology Needs and Technologies -
upfront advance preparation of content, understanding of strategy
and expectations
2. Access to diverse, cross industry global community – not just the
size of the network but the diversity and relationships
3. Entrepreneurial technology and technology need owners – deal
orientated, flexible about what a deal looks like
4. Personal contact and relationship building is key to closing deals –
a marketplace makes you the connection quicker but be ready to
engage
5. Use experienced facilitators to help create partnerships -
understand the nuances between large companies and smaller
technology innovators, ensure successful partnerships for both
sides.
23. Key value add of intermediaries
Connectivity
Deep reach into corporate technical staffs
Access to key gatekeepers (tech transfer & tech acquisition)
Relationships with venture capital and SMEs
Confidentiality
Opportunity screening and initial discussions
Protect client name and application
Expertise
Evaluation and communication methods
Market and buy-side knowledge
Business formation and commercialization skills
External perspective
Unbiased evaluation and critical thinking
25. yet2.com Technology Acquisition Process –
Needs Identification
Needs Identification High Value Cases: Target
High Value Cases:
• Gather priority needs - Identification
Marketing
• yet2.com draws on our
from R&D, Marketing, etc • yet2.com website
network and proprietary
• Prioritize • Proactive channels
competencies database
• Build or buy
Deals
• Anonymity / IP shield, Lead Qualification, Call
facilitation, Due diligence, Contract and
negotiation support
26. What is Important for Success – Organizational Groundwork
Choice of Project
– Conduciveness to search
• Narrow vs. broad criteria
• Searching already done within same industry?
• Likelihood that solution may emerge from beyond your core network
– Business Impact / Urgency
• Existing product line(s) vs. new business opportunity
• Trigger for need (e.g., regulatory requirement, incremental
improvement)
• Timeline to market / Technology Readiness (TRL)
– Readiness to acquire
• Project funding & staffing
• Technical competence to evaluate, and/or budget to employ external
evaluators
• Willingness to complete development
27. Need Qualification Learning
broad narrow
Search scope:
Background knowledge High (already searched,
have candidates) No knowledge
about the problem/specs:
Project Trigger (IP situation, competitors, Has to find
a solution
Would like to
have a solution
regulatory change…)/motivation:
Deadlines/product launch in: 6 months 10 years or more
Maturity level of Fully developed
Early stage
preferred solution:
Internal project to Ongoing, funded none
solve the Need:
Willingness to complete Unwilling, unable
High capability,
availability, budgeted
development:
28. TechNeed Title
Search Scope
Background Knowledge
Urgency
- Project Trigger
- Deadlines
Project Status
- Existing / new
- Need Ownership
Solution evaluation
- Technical competence
- Availability
Development status
- Desired technology
readiness
- Willingness to complete
development
ASSESSMENT: Conducive to Search Business Impact / Readiness to Acquire
Urgency
(H/M/L) H/M/L H/M/L H/M/L
29. NASA JSC Open Innovation Pilot Summary
Needs Conducive Business Minimum maturity Search Evaluation
to Search impact/ level of a successful owner process
Urgency solution
Bone Density M H Working prototype yes -
Water and H M/H Proof of principle, yes yes
Biocides testable
Radioprotect M/L M/H Early research n/a – broad No (data
ants project based)
Exoterrestrial L L/M Concept yes n/a
Life
Portable M/H M/H Proof of principle yes Yes
Imaging
Food M/H M/H Fully commercial yes yes
Protection
30. High Value Cases Methodology
• Define strategic • Respond as • Review and • Participate in • Engage in full
objectives questions arise Evaluation initial discussions discussions,
Client
evaluations,
• Define partner • Evaluate • Refine criteria
negotiations
criteria preliminary info
• Confirm next • Confirm yet2.com
• Prioritize steps involvement
Understand Find Filter Engage Partner
• Understand • Promote using • Interview • Engage key • Perform due-
client‟s objectives yet2.com companies and targets with in- diligence on
marketplace, filter results depth discussions management,
• Understand the
TMR, direct e-mail against criteria technology,
market and • Clarify mutual
finances, business
available • Search the • Gather additional contributions and
model,
technologies network (VCs, information per benefits; position
Our Services
competitive
universities, client‟s evaluation relative value-add
• Understand advantage
entrepreneurs, criteria
partnering
innovators) and • Structure
requirements • Update market
public data partnership
and technology
• Document proposals
• Find companies understanding
TechNeed and
and technologies • Participate in
objectives for the • Refine target
fitting initial criteria negotiations
project (for criteria and
external & internal continue search
use)
Months 1-3
31. JSC01 - Bone Density Measurement
Background
– Seeking: Accurate measurement techniques for deep-bone density
and structure
– In order to achieve the goal, NASA JSC would like to find solution
providers with bone imaging technology that is clinically proven and
close to commercialization
Project Objective
– The main objective for yet2.com is to provide an initial assessment of
the solution landscape and introduce potential solution providers to
NASA JSC.
32. JSC01 - Description of the Technology Need
Seeking:
A clinically-useful technology with enough sensitivity to
assess the microstructure of "spongy" bone that is found in
the marrow cavities of whole bones. This technology must be
for skeletal sites surrounded by layers of soft tissues, such as
the spine and the hip. Soft tissue interferes with conventional
imaging and using a more accessible area -- for example, the
wrist or the ankle of limbs-- as a proxy for the less accessible
skeletal regions, will not be accurate. A non-radioactive
technology is strongly preferred.
35. JSC01- Results
Online activity overview (as of 09/08/2010)
TechNeed 9964
Seeking: Accurate measurement techniques for deep-bone
density and structure
Logged-in Views 121
Total Views 793
Views per Month 99.1
Screening Results: Total leads: 51
Rejected by yet2.com: 14
Rejected by NASA: 19
Finalists: 18 (5 most interesting)
36. JSC01 - Results: 5 most promising
1. OsteoTronix Ltd - Peter Taylor, BusDev.Manager (TRL 6-7)
Structural Spectroscopy™ is a new technique for characterizing anatomical
structures using magnetic resonance data. contacted
2. University of California, San Francisco – Sharmila Majumdar (TRL 4)
High field and high resolution magnetic resonance imaging for quantitative
characterization of the morphology and function of the musculoskeletal
system will keep in mind
3. Steady State Imaging, LLC - Danny Cunagin, CEO (TRL 7-8)
Imaging of the Ultrastructure of Bone Using SWIFT (Sweep Imaging with
Fourier Transformation) technology. SWIFT advances existing MR
techniques with the ability to image structures and tissues that are invisible
to conventional MRI. contacted
4. ImaTx: Imaging Therapeutics Inc – Daniel Steines, VP R&D (TRL 6-7)
OsDx™ Hip Bone Mineral Density (BMD) system. X-ray based -
5. Mayo Clinic - Richard Ehman, Prof. Radiology (TRL 1-3) too low -
contacted
Magnetic Resonance Elastography in Trabecular Bone - Work demonstrated
the feasibility of using MRE to measure the stiffness of trabecular bone
37. JSC01 – Geo Summary of Data/ Responses
Germany 6
Austria 1
Japan 7
Canada 1
France 6
Israel 1
Australia 3
Belgium 1
UK 5
Switzerland 4
Sweden 1
USA 15
Total 51
Page 37
38. JSC01 - Solution Space
structural spectroscopy
magnetic resonance elastography
SWIFT
image processing System
image analysis software
acoustic emission monitoring
fuzzy logic
high resolution pQCT
MRI
Page 38
39. What is Important for Success – Organizational
Groundwork
Client Role
– Ownership – direct involvement of business leader who can “green
light”
– Involvement – team bi-weekly calls (with preparation) to screen
candidates
– Engagement w/ external cos. – legal hurdles minimized; sample
evaluation
– Momentum – maintaining drive throughout process; willing to “close”
40. Contact
Eugene Buff, MD, PhD
Certified Licensing Professional (CLP)
Registered Technology Transfer Practitioner (RTTP)
Vice President, Consulting ~ yet2.com Inc.
ebuff@yet2.com
+1 781-972-0604