Flinders Technologies Pty Ltd Copyright © 2003 J V Turner Strategic Partnerships : WIPO & IPD Malaysia 2003 Strategic Partnerships for Universities & Research

Flinders Technologies Pty Ltd Copyright © 2003 J V Turner

Strategic Partnerships : WIPO & IPD Malaysia 2003

Strategic PartnershipsStrategic Partnershipsfor Universities & Research Organisationsfor Universities & Research Organisations

Dr John TurnerDr John Turner

Managing DirectorManaging Director

Flinders Technologies Pty LtdFlinders Technologies Pty Ltd

[email protected]@attglobal.net



However, an OECD (1994) study found :However, an OECD (1994) study found :

“ Innovation performance depends not on how specific institutions

perform (firms, R&D organizations, universities etc) but how they

interact with each other……..”

Strategic Partnerships for Universities and R&D Orgs.Strategic Partnerships for Universities and R&D Orgs.Significant at (1) national level & (2) enterprise levelSignificant at (1) national level & (2) enterprise level

First, the ‘national’ view :

We know Universities and R&D Organizations are sources of potentially valuable intellectual property and professional expertise



• University linked organizations University linked organizations (e.g. AUTM in USA, KCA in Australia)(e.g. AUTM in USA, KCA in Australia)

• E.U. Innovation Relay Centers E.U. Innovation Relay Centers

• Business Incubation CentersBusiness Incubation Centers

• Malaysia Tech. Development Corp. (targeted grant schemes)Malaysia Tech. Development Corp. (targeted grant schemes)

• Singapore Tech. Infrastructure & Innovation InvestmentSingapore Tech. Infrastructure & Innovation Investment

• Philippines T.A.P.I.Philippines T.A.P.I.

• Thailand National Science & Tech. Development AgencyThailand National Science & Tech. Development Agency

• China Innovation Center (Founded by CyberCity Holdings Ltd)China Innovation Center (Founded by CyberCity Holdings Ltd)

+ 15 Uni. based Science Parks+ 15 Uni. based Science Parks

• Economic Regions (e.g. Route 128; Silicon Valley) Economic Regions (e.g. Route 128; Silicon Valley) This list is not completeThis list is not complete

Many different models that promote IP Creation, Innovation & Many different models that promote IP Creation, Innovation &

Commercialization : they all bring essential elements togetherCommercialization : they all bring essential elements together



WIPO undertook a study into supporting WIPO undertook a study into supporting

Innovation Promotion Centers Innovation Promotion Centers to assist developing countriesto assist developing countries

• IPC designed to :IPC designed to :

– bring together disconnected innovation componentsbring together disconnected innovation components

– stimulate & promote inventive and innovative activitiesstimulate & promote inventive and innovative activities

– provide information, advice & assistanceprovide information, advice & assistance

– manage seed capital investment fundmanage seed capital investment fund

– add value to IP-based assets and businessadd value to IP-based assets and business

IIPP



Universities, R&D expertiseAttorneys,

Accountants, Business

Consultants, International

business, Management

Training, Industry Assoc’s

SUPPORT THROUGH PROFESSIONAL

LINKAGES

IPC ClientsSMEs,inventors,

‘Projects’

Innovation Promotion

CenterProject & Funds

Manager

Regional Innovati

on Promoti

on Centers

Innovation Investment Funds

(several industry-specific funds possible)

Various investors :Banks, Venture Capital, Pension Funds, Business Angels, Specialist Technology Corporations, etc

Office support for ‘Start-ups’ co-

located with the IPCs

Project AssessmentBusiness

plansBusiness

Plan Implementa

tion

Awareness Raising

FUNCTIONS

Diag. 1



Report on research commercialisation performance of Australian Report on research commercialisation performance of Australian universities & research organisations has been releaseduniversities & research organisations has been released

Published Sept 2002 ISBN 0 95818 000 8Published Sept 2002 ISBN 0 95818 000 8

National Survey of Research Commercialisation, Year 2000National Survey of Research Commercialisation, Year 2000

Australian Research CouncilAustralian Research Council

CSIRO & NHMRCCSIRO & NHMRC

The study looked at performance comparisons (on a national basis) with Canada and the The study looked at performance comparisons (on a national basis) with Canada and the USA (for which data were available). USA (for which data were available).

In my view, there are weaknesses in the study, but it provides a starting point for In my view, there are weaknesses in the study, but it provides a starting point for strategic assessments and initiatives at the national level. strategic assessments and initiatives at the national level.

Some results are on the following slidesSome results are on the following slides



The Role of Universities & R&D Organizations

In the Innovation Cycle

Topic 5Topic 5

Biological Science & Biotech.

Physical, Chem. & Earth Sci.

Maths, Information & Coms Sci

Social, Behavioral & Economic Sci.

Humanities & Creative Arts

Engineering & Environmental Sci.

Health & Clinical Sci.

Other.

1%

19%

17%

42%

10%7%2%

2%

Licences – distribution by originating area of researchp35 National Survey of Research Commercialisation 2000

(data removed – file too large to e-mail)



• Relevant and cooperative R&D baseRelevant and cooperative R&D base

• Viable inventions and SME’sViable inventions and SME’s

• Business incubation facilities Business incubation facilities

• Experienced commercial & technical expertiseExperienced commercial & technical expertise

• Financial base of ‘risk’ capital for investmentFinancial base of ‘risk’ capital for investment

• Supportive Government policies, programs & tax structuresSupportive Government policies, programs & tax structures

• Enthusiastic and committed communityEnthusiastic and committed community

• Overall, less fragmentation & greater critical mass of scarce Overall, less fragmentation & greater critical mass of scarce

key resources : easier said than done !key resources : easier said than done !

My conclusion : performance is ‘mixed’ – My conclusion : performance is ‘mixed’ –

better success if we strategically combined key elementsbetter success if we strategically combined key elements



Strategic Partnerships for Universities and R&D Orgs.Strategic Partnerships for Universities and R&D Orgs.Significant Significant at at (1) national level &(1) national level & (2) enterprise level (2) enterprise level

First the ‘national’ view

Second, the enterprise view – our experience :

Prior to the establishment of the company Flinders Technologies, Flinders University had only made $200 in royalty payments in 20 years.

Several attempts at commercializing IP had cost the University money and had not been successful.

The Vice Chancellor at the time (Prof. Keith Hancock) was an economist. Broadly speaking, he reasoned it was better to have a share in something successful than 100% of nothing. Thus, he agreed to a joint venture partnership with a Venture Capital company.



Started as a joint venture company in 1987Started as a joint venture company in 1987

shares

July 1987 50% 50%

FlindersFlinders Technologies Pty LtdTechnologies Pty Ltd

Flinders UniversityFlinders Universityof of

South AustraliaSouth Australia

Enterprise Investments LtdEnterprise Investments Ltd

Venture Capital CompanyVenture Capital Company

Mission: To optimise the promotion and value of IP-based assets and the benefits from commercialization

January 1995 100% 0%



Shareholder ExpectationsShareholder Expectations

Flinders UniversityFlinders University Enterprise Investments LtdEnterprise Investments Ltd

•R&D funds

•Inventor rewards

•‘Untied’ funds (Dividends)

•Cost-savings

•Linkages with ‘industry’

•Support for staff consulting

•Capital gains

•Dividends

•‘Star’ reputation

Managing relationships can at times be difficult



Formal & informal relationships with shareholder Formal & informal relationships with shareholder

Relations with the university are complex

• Shareholder AgreementShareholder Agreement

• Technology Transfer AgreementTechnology Transfer Agreement

• Agreed basis for Inventor rewardsAgreed basis for Inventor rewards

• Policy for IP management in universityPolicy for IP management in university

• ‘‘Assistance’ to universityAssistance’ to university

Flinders Technologies Pty Flinders Technologies Pty LtdLtd



Professional networks help us to achieve our Technology Commercialization goals

Professional networks help us to achieve our Technology Commercialization goals

Alliances & Networks Throughout the WorldAlliances & Networks Throughout the World

Research GroupsResearch Groups ShareholderShareholder

FlindersFlinders TechnologiesTechnologies

Scientific & Scientific & Technical Technical consultantsconsultants

Accountants &Accountants &Financial Financial AdvisersAdvisers

LawyersLawyers Patent &Patent &Trade Mark Trade Mark AttorneysAttorneys

Business contacts:Business contacts:Manufacturers,Manufacturers,Marketers, FinanceMarketers, Finance

Professional peer Professional peer groupsgroupseg. LES, KCA, AVCALeg. LES, KCA, AVCAL IPS (ANZ), WIPOIPS (ANZ), WIPO

Circles of Influence



• Rigorous appraisal of commercial viabilityRigorous appraisal of commercial viability

• Add Value to the ProjectAdd Value to the Project- Technical value adding - Technical value adding (eg technical feasibility) (eg technical feasibility) - Commercial value adding ( eg patenting)- Commercial value adding ( eg patenting)

• Reduce Apparent Risk for InvestorsReduce Apparent Risk for Investors - Substantiate technical viability (eg 3rd party verification)- Substantiate technical viability (eg 3rd party verification)

- Show commercial diligence (eg verification of IP, market)- Show commercial diligence (eg verification of IP, market)

• ‘‘Seed capital’ funds are importantSeed capital’ funds are important- Enable value to be added & risk reduced- Enable value to be added & risk reduced- Help avoid premature deal- Help avoid premature deal

• Harmonise Technical and Commercial StrategiesHarmonise Technical and Commercial Strategies- regular meetings with researchers : agreement on goals- regular meetings with researchers : agreement on goals- secure IP- secure IP- beware of compromising IP- beware of compromising IP

Some of our strategies for optimising outcomes from Some of our strategies for optimising outcomes from IP commercializationIP commercialization



Flinders Technologies Pty LtdFlinders Technologies Pty Ltd

Some of our projectsSome of our projects

Ions byIons by EnzymaticEnzymatic MethodsMethodsClinical DiagnosticClinical Diagnostic



• Average Average IRR 7IRR 744% p% per er aannum for over 16 yearsnnum for over 16 years

• $$21+ 21+ mil benefits to shareholder & researchersmil benefits to shareholder & researchers

• Assets : several million $ (& off balance sheet )Assets : several million $ (& off balance sheet )

• SSuccessesuccesses

((eg eg FTA ‘DNA processing’; Ions by enzymes; New sunscreen; FTA ‘DNA processing’; Ions by enzymes; New sunscreen; YourAmigo Pty LtdYourAmigo Pty Ltd ) )

• EmergingEmerging successes successes

((eg eg Flinders Flinders MediTech Pty Ltd & medical training devices; Re-Time Glasses & re-MediTech Pty Ltd & medical training devices; Re-Time Glasses & re-

setting the biol. clock; Disease Profiling & new DNA process; Neugenesis Inc &setting the biol. clock; Disease Profiling & new DNA process; Neugenesis Inc &

recombinant DNA technology; recombinant DNA technology; MediMolecular Pty Ltd & new generation diagnosticsMediMolecular Pty Ltd & new generation diagnostics))

Flinders Technologies Pty Ltd:Flinders Technologies Pty Ltd: Track-recordTrack-record



• National level of innovation & economic performanceNational level of innovation & economic performance is related to level is related to level of interaction between the key organisationsof interaction between the key organisations

• Stimulation of a national innovation system can be achieved through Stimulation of a national innovation system can be achieved through several different models, but a central feature is that strategic several different models, but a central feature is that strategic partnerships are formed as a resultpartnerships are formed as a result

• At the enterprise level it’s difficult, if not impossible, to ‘go it alone’At the enterprise level it’s difficult, if not impossible, to ‘go it alone’

• Better to form strategic partnerships (even if on an ‘as needs’ basis) and Better to form strategic partnerships (even if on an ‘as needs’ basis) and to share in the greater level of success and value createdto share in the greater level of success and value created

Summary : Strategic PartnershipsSummary : Strategic PartnershipsSuccessful IP creation, innovation & commercializationSuccessful IP creation, innovation & commercialization

Thanks forListening Again!

Documents

Flinders Technologies Pty Ltd Copyright © 2003 J V Turner Strategic Partnerships : WIPO & IPD Malaysia 2003 Strategic Partnerships for Universities & Research