In assessing the market opportunities of a particular technology, it is important to consider whether the technology should be patented or not, and whether the technology should be licensed or put in a spin-off. Commercial Services is a group of three people at Imperial Innovations that investigates the market potential of new incoming projects and idea proposals. They give advice with respect to commercialization based upon thorough market research which they perform in close collaboration with industry. www.FITT-for-Innovation.eu

1. Market Assessment
FITT
– Fostering Interregional Exchange in ICT Technology Transfer –
www.FITT-for-Innovation.eu
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2. Market Assessment
Every idea that comes in the technology transfer office needs to be assessed
from a technological, a legal and a business point of view
TTOs are usually well positioned to do the scientific evaluation
Patent officers check whether the technology is truly unique and whether it
doesn’t infringe with any existing patents
The market assessment is crucial, but can be very complex: a technology
might seem fantastic from a technical perspective with lots of interesting
features and possibilities, but with no market value
Therefore, TTOs need to investigate the market potential of new incoming
project proposals, conduct thorough market research and give advice with
respect to commercialization.
Marketing is ‘an integrated process through which companies create value
for customers and build strong customer relationships in order to capture
value from customers in return’ (<Wikipedia). To make this work, keeping
close links with the industry is crucial.
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3. Marketing_IP Pipeline
Rejection No Go
Technological Analysis 90% of ideas
Idea
Technology Transfer Team
Potential Market Analysis
Go Commercial Services
On Hold 10% of ideas
Licensing Spin-Off
Company Formation Investment Decision
New Ventures Team Investment Team
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4. IP Pipeline
Every idea goes to the Technology Transfer Team
Tech Transfer Team judges technical value & decides:
1. Patent or not?
2. Licensing or Spin-out?
2.1. Licensing?
2.2. Spin-out?
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5. 1. Patent or not?
“The really fantastic ideas stand out as being really fantastic,
the bloody stupid ones as being bloody stupid.
90% is stuck in the middle, in the grey zone.”
“The strategy of what particular form of IP we use
is entirely informed by commercially what we think
we can get away with.”
White versus Black: Clear go/no go decision.
Grey Zone: Market related advice < Commercial Services.
→ ‘First Iteration’
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6. 2. Licensing or Spin-out?
Commercial Services do market research, as well as marketing.
The guys in the first group discuss about the following:
“Does this look like a licence or a spin out?”
Market Research:
Find appropriate potential customers.
Engage with those customers.
‘Catch 22’: Difficult to go and talk to someone to validate a new
technology, because you disclose the information
Identify whether it should be a licence or a spin out.
→ ‘Second Iteration’
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7. Second Iteration
Evaluation criteria
How strong is the IP?
Have similar technologies been patented?
How many similar technologies are on the market?
→ Technology Transfer Team
Competitive advantages?
Fit with the emerging trends?
→ Commercial Services
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8. Example: Electro Wetting Effect (EWF)
Technology: If you apply a voltage to a liquid, the surface meniscus changes.
Applications:
Display technologies
Lenses in mobile phones
Market analysis:
1 competitor in display technologies
1 competitor in lenses for mobile phones
Looks promising – only 2 competitors – BUT they own +/- 50 patents…
Advise:
No head-to-head competition
Licensing!
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9. 2.1. Licensing
If it’s licence,
Commercial Services will find potential ‘customers’ to negotiate with.
Output:
1-page summary of technology with non-confidential descriptions of the
technology:
Introduction to the technology,
Technical advantages;
Value proposition;
Benefits for the end user;
Possible applications;
Stage of development.
Top ten list of potential customers
Find a personal contact into these companies
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10. 2.2. Spin-out
If it looks like being a spin out,
it moves to the new ventures team,
and their role is to work this up into an investable proposition.
File goes to ‘New Ventures Team’
New Ventures Team + Technology Transfer Team write proposal
Interaction with Commercial Services:
Strategy of competitors
Evolutions in competitive landscape
→ ‘Third Iteration’
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11. Marketing_When?
Commercial Services is an integrated part of the technology transfer
process at Imperial Innovations
Input = required on a continuous basis in every stage
Clear feedback loop between Commercial Services and the ideator(s),
via the Technology Transfer Team
Feedback loop = ongoing backwards and forwards conversation
No fixed timing issues
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12. Marketing_Who?
Tech Transfer Team (7 people): Technology transfer team members are assigned
on a departmental basis
Commercial Services (3 people)
New Ventures Team (5 people)
The researchers are crucial stakeholders
Finally, the industry benefits from Commercial Services as well
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13. Marketing_Where?
Commercial Services is located at the premises of Imperial
Innovations
Their work area is not limited to the South Kensington region
As they keep close contacts with companies all over the UK, and even
abroad, they operate worldwide
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14. Marketing_Pros and Cons
Pros
Opens up opportunities for a true market-led approach: Keeping the link
between the ‘artificial’ world of the labs and the real-life industrial
environment
Tackle ‘the not-invented-here’ syndrome
Cons
Problem when personalities of different technology transfer team officers
don’t match, because close integration is crucial for the success of the
initiative
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15. Marketing_Outcome
The crucial success factor for the market integration = close
integration between the technology transfer team and commercial
services on the one hand and commercial services and industrial
partners on the other hand
All the parties involved – researchers, Imperial Innovations, the
industry – seem to be pleased with this method
Facts: Imperial Innovations has established equity holdings in more
than 75 technology businesses and is managing over 130 commercial
agreements
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16. Lessons Learned
It pays off to use a market led approach: If one takes a look at the
output of Imperial Innovations, it is obvious that a close connection
with the industry brings along a large inflow of ideas
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17. Suggested Readings
Link to bibliography
Link to code book
Market assessment
Market-led approach
Market research
Link to related websites
http://www.imperialinnovations.co.uk/
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18. Market assessment by Digiteo
Digiteo runs a programme supporting proof-of-concept and
Call for projects
technology transfer (so-called OMTE programme).
The final goal is to foster the transfer of selected promising
technologies into commercial exploitation via a start-up or
licensing to industrial partners.
For this, Digiteo supports:
technological development targeting a prototype
IPR: analysis of the freedom to operate
marketing analysis to identify potential applications &
markets
Based on their results, they advise the research teams
with respect to commercialization.
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19. Lessons learned
To investigate the potential commercial value of a technology, we strive to follow a
methodology based on 2 steps:
abundance - list all applications possible where the technology can be used
market segmentation - identify and quantify the corresponding markets, and select
applications that are the most promising, based on the market size and facility to
take parts of it.
Identifying potential applications and customers for a technology is a challenge,
given the very early nature of innovations. The objective is more about asking the
right questions and establish good reflexes than stick to a fixed framework. A lot
still relies on the experience of the TT officers and its network of contacts in the
industry.
A way to approach the abundance phase is to organise a brainstorming session at
the beginning of the market study with the researchers, TT officer and engineers
from various scientific fields. Goal: triggering creativity and not limit the listing of
possible applications to the custom or the obvious.
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