Global Technology Entrepreneurship and Commercialization

Summer 2014

Course Program & Syllabus

August 17 – August 30, 2014 Hosted by: University Network for Innovation and Technology Transfer (UNITT), Japan

and Osaka University Office for University-Industry Collaboration

Sponsored by: Bridgebook Global, LLC

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TABLE OF CONTENTS

2-4

5-11

12-13

14-32

33-37

Instructor and Mentor’s Profile and About Instructor

Instructor’s Message to G-TEC2014 Applicants Mentors

Course Syllabus Course Description Objectives Materials Back Ground Readings Team Work and Team Participation Assignments

1. First Look Technology Assessment Project 2. First Look Venture Assessment Project 3. Written Assignments 4. Elevator Pitch

Sources of Technology Case Studies Participation Written Work Evaluations Grading

Schedule at a Glance Course Schedule Access Map

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INSTRUCTOR AND MENTOR’S PROFILE AND MESSAGE TO G-TEC 2014 APPLICANTS

Instructor: Professor Ashley J. Stevens +1 (617) 251-6088 astevens@bu.edu About Instructor For 15 years, Dr. Stevens led Boston University’s Office of Technology Transfer. He then became Special Assistant to the Vice President for Research for two years before retiring from full time employment at Boston University. He remains a Lecturer in the Strategy and Innovation Department in Boston University. School of Management, where teaches two graduate-level, inter-disciplinary courses on Technology Commercialization. From 1995 to 2009, while Director of Technology Transfer at Bos ton University, he launched over 50 spin-out companies, including InfoLibria, Inc. and Symphogen A/S, both of which raised over $100 million of venture capital. Companies have been launched as a result of his Technology Commercialization Courses. Before joining Boston University he was Director of the Office of Technology Transfer at the Dana-Farber Institute, teaching affiliate of the Harvard Medical School. He was the recipient of the Bayh-Dole Award at Association of University Technology Managers (AUTM) 2007 Annual Meeting and became President of AUTM in March 2010. He is the President of Focus IP Group, LLC. Dr. Stevens holds a Doctor of Philosophy in Physical Chemistry from Oxford University. Instructor’s Message to G-TEC 2014 Applicants I am looking forward to teaching G-TEC 2014 and building on the success of G-TEC 2011-2013. Previous G-TEC had short term, medium term and long term impacts.

• The short term impact was that two of the students started a relationship. They were very cute together and I wonder whether they are still together?

• The medium term impact was that one of the venture capitalists who read the

student team reports was so impressed with one of them that he committed to promote the project.

• The long term impact was that one of the students told us that, after taking the

course, he had changed his career objective – originally he was planning to go into R&D. After taking the course, he was going to go into business development.

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You will probably work harder in these two weeks than you have ever worked in your life. You will bond with your team in a way you’ve probably never bonded with colleagues in your life – one of the teams had had several reunions after the course is over. And you will prepare yourself for the new way of life in Japan – the era of entrepreneurship and change. I look forward to seeing you at the Senri-Hankyu hotel at 6:00pm on Sunday, August 17 for the kick-off reception and dinner. About Mentors: Three of the lectures will be taught by the following mentors (see also pp. 17 and pp. 25). The mentors will also support the class discussion and team assignments. Megumi Takata, ME, RTTP Professor of QBS(Kyushu University Business School) and QREC(Kyushu University Robert T. Huang/Entrepreneurship Center) in the area of technology commercialization and entrepreneurship. After several-year experiences as an engineer at Japanese steel making company and as a consultant of regional planning, Mr. Takata joined CASTI (Center for Advanced Science and Technology Incubation, Ltd.), Technology Licensing Organization of the University of Tokyo as an executive vice president and COO in 1999. After four-year experiences of university technology management, he moved to Kyushu University as an Associate Professor of QBS, newly founded in 2003. Also he was one of the founding members of IMAQ (Intellectual Property Management Center of Kyushu University, established in 2003), and was a Director of Technology Transfer Department of IMAQ till 2010. He was also Special Adviser to the President of Kyushu University from 2005 to 2010. Mr. Takata spent several months at Sloan School of Management and Entrepreneurship Center of MIT as a visiting scholar in 2009-2010. After returned to Kyushu, he contributed to establish QREC. Toshihiko Matsuhashi, MBA, RTTP Mr. Toshihiko Matsuhashi is a professor for University-Industry Collaboration at Osaka University. He worked for SANYO Electronic Co., LTD for about twenty years as a researcher, planner and manager, being engaged specifically in technology management, strategic planning and new business creation. After then, he worked for Healthcare Partners Co., Ltd. He was involved in several hospitals due diligence and also made a business planning and operation for turnaround as a senior consultant. He has specifically an expertise about healthcare and medical device business. In 2008, he moved to Osaka University, and has been in charge of a business development. He is making and supporting specifically strategic collaborations for innovation between Industries and Academia, with committing as a negotiator, and a facilitator. And also he helps principle investigators to obtain big translational research grants related to those collaborations. He also gives a lecture to students, about technology commercialization.

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Kosuke Kato, PhD, RTTP For over eight years, Dr. Kosuke Kato has been worked at Osaka University as Assistant Professor at Center for Advanced Science and Innovation (FY2006-2010) and Office for University-Industry Collaboration (FY2011-Prsent). Recently, he had also worked as Team Leader of Gap Fund Team (FY2011) and has worked as Team Leader of Business Development Team (FY2012-Present), at Planning and Promotion, Office for University-Industry Collaboration. As an active member of UNITT, The Association of University Technology Managers (AUTM), and The Alliance of Technology Transfer Professionals (ATTP), he serves as UNITT Committee Member of Committee for International Communication (June 2011 -Present), AUTM Assistant Vice President for Membership, Eastern Hemisphere, Japan, from (February 2012 - Present), and ATTP Committee Member of Marketing Committee from (August 2013 - Present). In November 27th 2013, ATTP recognized him as a Registered Technology Transfer Professional (RTTP). *Registered Technology Transfer Professional (RTTP) as recognized by The Alliance of Technology Transfer Professionals (ATTP): The Alliance of Technology Transfer Professionals (ATTP) is the international body for professionals engaged in technology transfer (TT). The transfer of discoveries and knowledge from academic research into the marketplace is recognized globally as paramount to building and sustaining a robust and innovative world economy. The professionals who work across continents to facilitate this transfer are as diverse as the cultures they represent. They must, however, have a common core skill set to manage the complex set of challenges that technology transfer presents. ATTP was established to recognize and promote individuals with these core competencies and to provide approved training for individuals wishing to acquire these skills and become Registered Technology Transfer Professionals (RTTP). The RTTP program reflects the highest quality expectations defined by the profession and will provide individuals wishing to acquire these skills the opportunity to be recognized as Registered Technology Transfer Professionals. For more detail, please refer the following website: http://www.attp.info/ G-TEC 2014 is pending approval for the official course of ATTP which enables the students to earn the following Continuing Education Credits (CE Points) for applying RTTP. First Look Technology Assessment Course (Lectures): 10 CE Points First Look Venture Assessment Course (Lectures): 10 CE Points

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COURSE SYLLABUS

COURSE DESCRIPTION: The subject of the course is the innovative transformation of knowledge into new commercial products and services. The course provides a rigorous study of intellectual property, licensing, the assessment of promising new technologies and technology-based entrepreneurship. Cross-disciplinary teams of students will be formed which will evaluate real technologies. We will use case studies which will discuss success and failure in technology commercialization, focusing on specific issues early stage ventures face. OBJECTIVES: The course has five objectives:

1. To understand the key concepts and options in technology commercialization.

2. To understand how to assess technologies for their commercialization potential.

3. To understand the steps that a technology goes through in the journey from the laboratory to the marketplace.

4. To explore the roles that intellectual property protection and licensing play in the commercialization process.

5. To understand these points through case studies and hands-on work.

The course is intended for students who are interested in translating their research into the commercial marketplace and for students who are interested (or may already have commenced) a career in intellectual property management, business development, technology transfer or in joining an early stage venture. Law students will see how both intellectual property law and corporate law impact companies and commercialization pathways. Although we explore technology-based entrepreneurship in the setting of a new start-up company, the concepts are equally relevant to technology-based intrapreneurship – starting a new venture within the structure of an existing corporation. Intrapreneurs face all of the same challenges as entrepreneurs – skeptical investors, recruiting team members, reducing technical and market risk in order to attract ever higher levels of investment, etc. Indeed, some of the challenges are greater – corporations are frequently more conservative than venture capitalists (which is why so many radical new technologies are launched through start-up companies in the first place.) MATERIALS:

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• Text Book: “The Art and Science of Technology Transfer” by Phyllis L. Speser, Publisher: Wiley; first edition (April 21, 2006) ISBN-10: 9780471707271. Available from Amazon for $78. OPTIONAL.

• Harvard Business School Case Studies; (Provided by Professor Kato); • Other required readings will be available on Dropbox® or distributed in class

as specified in the Course Schedule. BACKGROUND READING It is important that students develop a habit of reading about innovation as it is occurring in the economy. Good sources in the US are:

• The Wall Street Journal. Both the Marketplace Section and the Personal Business Section routinely have stories on innovation. The Finance Section often has stories about the state of the venture capital market and the state of the IPO and M&A markets by which early stage investors achieve liquidity. The WSJ’s reporting on science and medicine is second to none, and it should be daily reading for business, law, science and healthcare students.

• Business Week is increasingly focusing on innovation and its economic impact.

• The Economist. The Science and Technology section towards the end of The Economist is an eclectic collection of articles that focus on the translational aspects of science.

• A great daily newsletter, full of lists – the Top Ten Mistakes in Pitching Angel Investors, etc., is Innovation Daily. I read it every day. http://news.innovationamerica.us/issues/archive/f13d59125b56016ba5e62061abd346af

TEAMWORK AND TEAM PARTICIPATION One of the core concepts behind the course is the need for different skill sets to come together to successfully commercialize a technology – scientific, marketing, financial and legal. The chemistry of the team must gel, and there must be a mutuality of interest – high technology versus software versus internet etc. Students will be assigned to teams before G-TEC 2014 commences and assigned a technology. They will use this for both their First Look Technology Assessment Project and/or their First Look Venture Assessment. Students only taking the second week of G-TEC 2014 will receive the First Look Technology Assessment report and presentations from the first half of the course through Dropbox® on Saturday, August 23 and must spend Sunday August 24 studying them so that they are totally familiar with the case by Monday morning Team members will rate each other for their participation in team assignments and workload after class on a scale of from 0-5. The ratings from each team member will

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be averaged and the averaged figure will become the student’s grade. Team Participation will account for 10% of the final grade. ASSIGNMENTS: There are two major assignments in this course, the First Look Technology Assessment and the First Look Venture Assessment. More details are discussed in class and found in the lecture notes as they appear on Dropbox®. 1) First Look Technology Assessment Project Each team will screen and evaluate a very early stage technology, and perform a "First Look Technology Assessment". This technology will be "real", that is, an actual technology that students chose from a short list of translational research projects currently being developed at Osaka University. The assignment will involve both primary and secondary research. Your First Look Technology Assessment Project will be due by Day 5 (see Course Calendar). The goal of a First Look Technology Assessment is to get an early indication of the commercial potential of an invention. The primary benefits of the reports are the potential partners/licensees that can be found along with a basic understanding of the value of the technology. In cases where inventions are not well received by the commercial marketplace, the reports can give early warning signals that the proposed area of research or proposed patent may be a non-starter and further investigation is needed prior to funding either more research or a patent submission. Teams will be provided with a detailed description of the content of a First Look Technology Assessment and guidelines for the team presentations. It is a written report which brings together a number of separate analyses and uses them to come up with an overall rating of the technology and recommendations for how to proceed. Each team will submit a written version of the First Look Technology Assessment Project and make a 20-minute presentation to the class with written reports, no longer than 20 pages plus appendices, due by class time that day. 2) First Look Venture Assessment Project The same teams will perform a "First Look Venture Assessment". This is a much more in depth look at the technology that was the subject of the First Look Technology Assessment designed to answer the question: “Can/should this technology be the focus of a new venture established to develop and commercialize the technology?” Your First Look Venture Assessment Project will be due by Day 12 (see Course Calendar). The goal of a First Look Venture Assessment is to get an early indication of commercial interest in technology to determine whether it is indeed the basis of a fundable company. The financial and human commitments involved in establishing a

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new venture substantially exceed those required for an affirmative decision to commercialize a technology through other means, and a much more in depth investigation is necessary. If the conclusion is indeed a “go”, then the output will be the precursor of the new venture’s first business plan. In other words, a First Look Venture Assessment is a feasibility study for a new venture and its business plan. Teams will be provided with a detailed description of the content of a First Look Venture Assessment and guidelines for the team presentations. Each team will submit a written version of the First Look Technology Assessment Project and make a 20-minute presentation to the class with written reports, no longer than 20 pages plus appendices, due by class time that day. Both the PowerPoint presentation and the written reports will be provided to the Inventor. 3) Written Assignments The progress of Team Written Assignments will be due in your Dropbox® by 6:00pm on every evening. 4) Elevator Pitch There will also be one oral assignment – an Elevator Pitch. An elevator pitch is a one to two minute speech, made from memory, from the heart, about your company. The idea is what you would do if you happened to find yourself alone in an elevator with someone who could be very helpful to your new company. Each team will pick one member to deliver the pitch, which will assume you are raising your Series A round of financing and happen to find yourself alone in an elevator with a very important venture capitalist. The Elevator Pitch will account for 10% of the First Look Venture Assessment grade. SOURCES OF TECHNOLOGY Students will be assigned to a team which will work on an Osaka University technology. These technologies will be drawn from a variety of scientific disciplines. Students will be given access to the faculty inventor in order to gain the benefit of their insights and perspectives as part of their research into the technology. It is possible that the graduate students and post doctoral fellows who are working on the technologies will be taking the class and will be part of the team. All members of the class will be asked to sign an Informed Consent in which they acknowledge that the work they do may create value for Osaka University and agreeing to use the materials only for purposes of classroom discussion, the class assignments and education.

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CASE STUDIES Some of the classes will include a case study which presents unique insights into the stresses and risks of technology entrepreneurship. An example of case studies:

A123Systems Case: A123Systems is an MIT spin-out that applies nanotechnology to batteries. The company was incubated in the Boston University Photonics Center and graduated in 2005. The company has recently raised an $80 million expansion round of financing. The case study examines the strategic decisions a young company has to be face to continue swinging for the fences pursuing the grand vision round which it was founded, or to go for an opportunistic single or double and at least be sure of getting on base. Case Questions: 1. What was the origin of A123 Systems? 2. Is it a “classic” university spin-out? 3. What was the founding vision of its creators? 4. Is this market pull or technology push? 5. Review generations of battery technologies. 6. What was their entrepreneurial track record? Were they credible company

founders? 7. How easy was it to get the company started and raise the money? How long

from incorporation to first funding? PARTICIPATION: Class participation is a key to success in this course. Since we learn more through active involvement, students are expected to prepare all assignments before class and make thoughtful contributions to discussions. The goal of participation is to help the class effectively explore the topics presented through integrating concepts from your experience, from the text, and from outside sources in your discussions. Because much of the work we will do in the class involves teamwork and collaboration, participation is a very important tool to help us accomplish our goal of learning more about the commercialization process. WRITTEN WORK: Ideas must be expressed clearly and concisely. Papers will be graded on content and style, with content providing approximately 50% of the overall grade. Content

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includes the quality of information and conclusions, support for conclusions, and the logic and flow of the information presented. Style includes grammar, spelling, punctuation, and word usage. Presentations must be visually attractive and must bear in mind the old adage that “a picture is worth a thousand words.” EVALUATIONS The First Look Technology Assessments and First Look Venture Assessments will be evaluated by some of the following venture capitalists, technology transfer professionals, and Professor Stevens. Mizuhiko Hashimoto President, Bridgebook Global, LLC

Kenjiro Ikehata Senior Manager, Deloitte Touche Tohmatsu LLC

Hiroyuki Itakura Senior Staff, Deloitte Touche Tohmatsu LLC

Naonori Kurokawa Partner, The University of Tokyo Edge Capital Co., Ltd.

Yoshio Matsumi Advisory Member, ITOCHU Corporation

Satoshi Morikawa Specially Appointed Fellow, Osaka University

Kazuhiko Morita Specially Appointed Fellow, Osaka University

Makiko Narita Technology Seed Incubation Co, Ltd

Hiroshi Sasaki Director, Technology Seed Incubation Co, Ltd

Takafumi Yamamoto

CEO & President, TLO of the University of Tokyo Chairman, Committee for Human Resource Development and Networking, University Network for Innovation and Technology Transfer (UNITT) Expert Member to Prime Minister's IP Strategy Headquarters

GRADING: Each half of the course will be graded separately. First Look Technology Assessment The grade will be based on the following point system:

• Team Presentation 40% • First Look Technology Assessment 50% • Team Participation 10%

First Look Venture Assessment

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The grade will be based on the following point system:

• Team Presentation 35% • First Look Venture Assessment 45% • Elevator Pitch 10% • Team Participation 10%

An "A" represents truly superior work; a "B" reflects good, solid graduate level work. Grades are based on a standard, not on a curve, so that, if earned, everyone can get an A. Point Distribution:

95 – 100 = A 90 – 94 = A- 87 – 89 = B+ 83 – 86 = B 80 – 82 = B- 77 – 79 = C+ 73 – 76 = C 70 – 72 = C- 60 – 69 = D

Below 60 = F

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SCHEDULE AT A GLANCE (Schedule subject to change)

First Look Technology Assessment Course (August 17 – 23, 2014)

Sunday, August 17 Location

6 – 8 p.m. Welcome Party (Optional)* Senri Hankyu Hotel Pool Side Beer Garden

Monday, August 18 Location

9 a.m. – Noon Lectures* Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D

Noon – 1 p.m. Lunch Break Alliance Hall, TechnoAlliance Complex 1 – 6 p.m. Team Work Interaction Salon, TechnoAlliance Complex

Tuesday, August 19 Location

9 a.m.– Noon Lectures* Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D

Noon – 1 p.m. Lunch Break Alliance Hall, TechnoAlliance Complex 1 – 6 p.m. Team Work Interaction Salon, TechnoAlliance Complex

Wednesday, August 20 Location

9 a.m. – Noon Lectures* Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D

Noon – 1 p.m. Lunch Break Alliance Hall, TechnoAlliance Complex 1 – 2 p.m. Case Study Interaction Salon, TechnoAlliance Complex 2 – 6 p.m. Team Work

Thursday, August 21 Location

9 a.m. – Noon Lectures* Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D

Noon – 1 p.m. Lunch Break Alliance Hall, TechnoAlliance Complex 1 – 6 p.m. Team Work Interaction Salon, TechnoAlliance Complex

Friday, August 22 Location

9 – 12 a.m. Lecture* Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D

Noon – 1 p.m. Lunch Break Alliance Hall, TechnoAlliance Complex 1 – 2 p.m. Case Study

Interaction Salon, TechnoAlliance Complex 2 – 6 p.m. Team Work

Saturday, August 23 Location 9 a.m. –12:15 p.m. Group Presentations Conference Room, 2nd Floor, Sanrenhonbu

(UIC) Building D 12:15 p.m. – 12:45 p.m. Class Evaluation

1:00 – 2:30 p.m. Mid-term Ceremony Interaction Salon, TechnoAlliance Complex

* Participants who do not take experiential trainings (“Enshu” in Japanese) but take lectures can participate in these programs.

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First Look Venture Assessment Course (August 24 – August 30, 2014)

Sunday, August 24 Note

Holiday Break Students only taking the second week of G-TEC 2014 must complete an assignment (see pp.8 and pp. 22).

Monday, August 25 Location

9 a.m. – Noon Lectures* Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D

Noon – 1 p.m. Lunch Break Alliance Hall, TechnoAlliance Complex 1 – 6 p.m. Team Work Interaction Salon, TechnoAlliance Complex

Tuesday, August 26 Location

9 a.m.– Noon Lectures* Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D

Noon – 1 p.m. Lunch Break Alliance Hall, TechnoAlliance Complex 1 – 2 p.m. Case Study Interaction Salon, TechnoAlliance Complex 2 – 6 p.m. Team Work

Wednesday, August 27 Location

9 a.m. – Noon Lectures* Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D

Noon – 1 p.m. Lunch Break Alliance Hall, TechnoAlliance Complex 1 – 2 p.m. Case Study Interaction Salon, TechnoAlliance Complex 2 – 6 p.m. Team Work

Thursday, August 28 Location

9 a.m. – Noon Lectures* Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D

Noon – 1 p.m. Lunch Break Alliance Hall, TechnoAlliance Complex 1 – 1:30 p.m. Elevator Pitches Interaction Salon, TechnoAlliance Complex 1:30 – 6 p.m. Team Work

Friday, August 29 Location

9 a.m. – Noon Case Study (Movie)* Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D

Noon – 1 p.m. Lunch Break Alliance Hall, TechnoAlliance Complex 1 – 6 p.m. Team Work Interaction Salon, TechnoAlliance Complex

Saturday, August 30 Location 9 a.m. –12:15 p.m. Group Presentations Conference Room, 2nd Floor, Sanrenhonbu

(UIC) Building D 12:15 p.m. – 12:45 p.m. Class Evaluation

1:00 – 2:30 p.m. Closing Ceremony Interaction Salon, TechnoAlliance Complex

* Participants who do not take experiential trainings (“Enshu” in Japanese) but take lectures can participate in these programs.

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COURSE SCHEDULE

Day 0 Sun. Aug. 17

6PM-8PM: WELCOME PARTY (Optional) Location : Senri Hankyu Hotel Pool Side Beer Garden Fee: 4,500 Japanese Yen A welcome party will be held at Senri-Hankyu Hotel Pool-Side Beer Garden. G-TEC 2014 applicants and G-TEC 2011-2013 alumni are very welcome to this party for the purpose of networking with Professor Stevens and other G-TEC participants/alumni. Please inform Ms. Izumi (gtec [at] uic.osaka-u.ac.jp) before August 7th if you would like to attend this party.

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Day 1 Mon. Aug 18

9AM-NOON: LECTURES Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D Introduction of Instructor and Students Overview of Part 1 of the Course

• Review Syllabus • Objectives • Course assignments.

1. First Look Technology Assessment Project 2. Written assignments

• Team Formation • Grading

What is Technology Commercialization? This lecture discusses the broad concepts involved in technology commercialization. Productization – Translating Science into Products The first step in commercializing a science-driven technology is to work out (1) what are the products or services that it will result from it and (2) what is the technology’s “Value Proposition” – the unique advantages the technology will bring to those products and services that will make someone want to buy those products and why someone would want to invest in developing the technology. NOON-1PM: LUNCH BREAK Location : Alliance Hall, TechnoAlliance Complex 1-6PM: TEAM WORK Location :Interaction Salon, TechnoAlliance Complex 1:00-1:30pm: Team Familiarization Students will have been assigned to a team by Professors Kato, Matsuhashi and Stevens before G-TEC 2014 starts, based on their educational background, skill set and corporate affiliation. 1:30-2:45pm: Team Meetings with Professor Stevens Discuss progress, issues with team assignments. 15 minutes each team 3:00-4:00pm: Meeting with Inventors Discuss:

• New products and services • Value proposition • The true uniqueness of the invention • Competitive advantage • Patent searching terms

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• Proof-of-concept experiments • Organization of research team • List of experts and/or end-users for interview.

4:45-6:00pm: Team Meetings with Professor Stevens

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Day 2 Tue. Aug 19

ASSESSING NEW TECHNOLOGIES This class will focus on two of the three key areas of initial investigation of the commercial potential of a new technology:

How attractive are the markets for these products and services? What are the critical experiments that must be done to show proof-

of-concept? 9AM-NOON: LECTURES Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D First Look Technology Assessment We will review the first major team exercise of the class, the First Look Technology Assessment Market Assessment Methodology and Tools Taught by Toshihiko Matsuhashi, MBA, RTTP

How do we go about confirming or, equally important, disproving the initial ideas about where a technology will find acceptance in the market and how much “breathing room” from competition it can expect the market to give it. The order of the techniques sounds backwards – first we look for secondary sources of information, i.e., what information already exists. Then, armed with this information, we turn to primary sources, contacting potential customers, suppliers and competitors. Technology Development, Business Development, and Proof-of-Concept Taught by Kosuke Kato, PhD, RTTP

Academic technologies are typically embryonic and far from market ready, and one of the chief challenges of technology development offices is to help the researcher secure the resources to show that the technology will actually work in practice. US academic institutions have been developing expertise in this area through state funded centers and more recently through philanthropically funded efforts such as the Deshpande Center at MIT, the von Liebig Center at UC San Diego and the Coulter Translational Research Partnerships in Biomedical Engineering with ten US universities. By referring these US initiatives, Osaka University have launched and managed own university Gap Funding Program since 2011. In this lecture, the results of these initiatives and best practices, including a case study of business development of an innovative technology being developed at Osaka University, are introduced and discussed.

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NOON-1PM: LUNCH BREAK Location : Alliance Hall, TechnoAlliance Complex 1-6PM: TEAM WORK Location :Interaction Salon, TechnoAlliance Complex 1:15-2:30pm: Team Meetings with Professor Stevens 4:45-6:00pm: Team Meetings with Professor Stevens

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Day 3 Wed. Aug 20

9AM-NOON: LECTURES Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D Barriers to Entry -- Intellectual Property Every new technology entering the market needs some breathing room from competition, to allow it time to develop and gain acceptance and to allow it to be priced to reflect the value it delivers. Technologies usually rely on intellectual property protection to provide this room to grow. This class will discuss the most important barriers to competitive entry – patents, copyrights, trademarks and trade secrets. Patent Due Diligence Has someone come up with the idea before – what the Patent Office will call “Prior Art”? Or have people got so close to our idea that the Patent Office will determine that our invention is obvious? This lecture will cover how we do this initial determination. NOON-1PM: LUNCH BREAK Location : Alliance Hall, TechnoAlliance Complex 1-2PM: CASE STUDY Location :Interaction Salon, TechnoAlliance Complex The Langer Laboratory: Commercializing Science MIT’s Robert Langer is the ultimate serial academic entrepreneur. He has founded 25 companies and has 238 issued US patents, starting to get him into the Thomas Edison league of US inventors. He has established a spin-out model where one or two post-doctoral fellows develop the scientific base of the company and translate their know-how to the company by joining the company as the CTO. Langer chairs the SAB and guides the company in its initial stages of technical development. Langer has a well established relationship with the Boston VC community and his endorsement usually guarantees that the company will receive venture capital funding. 2-6PM: TEAM WORK Location :Interaction Salon, TechnoAlliance Complex 2:15-3:30pm: Team Meetings with Professor Stevens 4:45-6:00pm Team Meetings with Professor Stevens

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Day 4 Thur. Aug 21

9AM-NOON: LECTURES Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D Licensing In addition to the protection of intellectual assets, the successful management of intellectual property also involves prowess in trading intellectual assets. This lecture examines this topic by reviewing the basic legal and managerial dimensions of licensing intellectual property. Topics covered include: introduction to the legal framework for licensing in the United States and internationally; procedures for licensing out intellectual property; procedures for licensing in intellectual property; cross-licensing, cooperation and competition; linking licensing strategy to intellectual property protection; and, linking licensing strategy to overall corporate strategy. Barriers to Entry -- Intellectual Property, Part II Although patent protection is the most common form of IP protection used by universities, some of the other forms of IP – Copyrights, Trademarks and Trade Secrets – are sometimes important to universities. NOON-1PM: LUNCH BREAK Location : Alliance Hall, TechnoAlliance Complex 1-6PM: TEAM WORK Location :Interaction Salon, TechnoAlliance Complex 1:15-2:30pm: Team Meetings with Professor Stevens 4:45-6:00pm Team Meetings with Professor Stevens (OPTIONAL)

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Day 5 Fri. Aug 22

9-NOON: LECTURES Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D Technology Valuation How do you know how much to ask for a technology? This talk will discuss standard methodologies and will provide students with practical tools for valuing technologies. Developing a Technology With a Large Company Small companies can be highly innovative, entrepreneurial and nimble, but a global roll out often requires financial, manufacturing and marketing resources of a large multinational company. This talk will look at how these partnerships are started, completed and managed. NOON-1PM: LUNCH BREAK Location : Alliance Hall, TechnoAlliance Complex 1-2PM: CASE STUDY Location :Interaction Salon, TechnoAlliance Complex A123 Systems, Inc. A123 Systems is an MIT spin-out that applies nanotechnology to batteries. The company was incubated in the BU Photonics Center and graduated in 2005. The company went public in September 2009. The case study examines the strategic decisions a young company has to face – to continue swinging for the fences pursuing the grand vision round which it was founded, or to go for an opportunistic single or double and at least be sure of getting on base. 2-6PM: TEAM WORK Location :Interaction Salon, TechnoAlliance Complex 2:15-3:30pm: Team Meetings with Professor Stevens 4:45-6:00pm Team Meetings with Professor Stevens (OPTIONAL)

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Day 6 Sat. Aug 23

9AM-12:15PM: GROUP PRESENTATIONS Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D First Look Technology Assessment Presentations

• 20 minute PowerPoint presentation per team. Rehearse it and time it – no overages allowed!

• 10 minutes Q&A • 2 minutes grading • 3 minutes change

Written report and PowerPoint in Drop Box by Class Time Time table 09:00 – 09:05 Guidance 09:05 – 09:40 Team 1 09:40 – 10:15 Team 2 10:15 – 10:50 Team 3 10:50 – 11:05 Break 11:05 – 11:40 Team 4 11:40 – 12:15 Team 5 The First Look Technology Assessments and First Look Venture Assessments will be evaluated by the following venture capitalists, technology transfer professionals, and Professor Stevens.

Mizuhiko Hashimoto President, Bridgebook Global, LLC

Kenjiro Ikehata Senior Manager, Deloitte Touche Tohmatsu LLC

Hiroyuki Itakura Senior Staff, Deloitte Touche Tohmatsu LLC

Yoshio Matsumi Advisory Member, ITOCHU Corporation

Makiko Narita Technology Seed Incubation Co, Ltd

Hiroshi Sasaki Director, Technology Seed Incubation Co, Ltd

Takafumi Yamamoto

CEO & President, TLO of the University of Tokyo Chairman, Committee for Human Resource Development and Networking, University Network for Innovation and Technology Transfer (UNITT) Expert Member to Prime Minister's IP Strategy Headquarters

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12:15-12:45PM: CLASS EVALUATION Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D 1:00-2:30PM: MID TERM CEREMONY Location :Interaction Salon, TechnoAlliance Complex Mid Term Ceremony over Light Meal and Drinks Fee: 2,000 Japanese Yen

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Day 7 Sun. Aug 24

Holiday Break

*Students only taking the second week of G-TEC 2014 will receive the First Look Technology Assessment report and presentations from the first half of the course through Dropbox® on Saturday, August 23 and must spend Sunday August 24 studying them so that they are totally familiar with the case by Monday morning.

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Day 8 Mon. Aug 25

9AM-NOON: LECTURES Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D Introduction of Instructor and Students Overview of Part 2 of the Course

• Review Syllabus • Objectives • Course assignments.

1. First Look Venture Assessment Project 2. Written assignments 3. Elevator Pitch

• Teams • Grading

Technology Based Entrepreneurship We will start to explore the concepts of how to start a company to develop a new technology. We’ll cover the legal aspects and start to explore the underlying issues and principles. Business Models Taught by Megumi Takata, ME, RTTP

How will a start-up company make money – who will pay for the services or products with attractive value proposition– is the most fundamental question a new company must answer. In this lecture, the basics of business model structure will be discussed and applied to modern business opportunities. NOON-1PM: LUNCH BREAK Location : Alliance Hall, TechnoAlliance Complex 1-6PM: TEAM WORK Location :Interaction Salon, TechnoAlliance Complex 1:00-1:30pm: Team Familiarization Students will have been assigned to a team by Professors Kato, Matsuhashi and Stevens before G-TEC 2014 starts, based on their educational background, skill set and corporate affiliation. 1:30-2:45pm: Team Meetings with Professor Stevens Discuss progress, issues with team assignments. 15 minutes each team 3:00-4:00pm: Meeting with Inventors (OPTIONAL) Discuss:

• Business model and business plan

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If further discussion is necessary, discuss:

• New products and services • Value proposition • The true uniqueness of the invention • Competitive advantage • Patent searching terms • Proof-of-concept experiments • Organization of research team • List of experts and/or end-users for interview.

4:45-6:00pm: Team Meetings with Professor Stevens

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Day 9 Tue. Aug 26

9AM-NOON: LECTURES Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D Introduction to a Business Plan The heart and soul of a new venture – either free standing or within an existing company – is its business plan. Written as much to force discipline on its writers as for its intended audience of potential investors, a business plan must identify the opportunity, the risks, the rewards and the resources necessary to achieve success. It must identify the exit – the vehicle by which the investors in the technology will realize their financial return. And above all, it must be a living, breathing document that is continually adapting to the company’s learning and the market’s evolution. Communicating Your Company No matter how exciting an opportunity, the entrepreneur must be able to communicate it succinctly. Three tools are needed:

• Written: An Executive Summary of the Business Plan • Visual: A PowerPoint “Pitch Deck” • Oral: The “Elevator Pitch:

The concept of the “Elevator Pitch” originated with the need to be prepared to capitalize on the captive audience you might have if you found yourself visiting a company to pitch an idea and found yourself riding an elevator to the top of a bank skyscraper with the company’s President.

Entrepreneurial Finance A start-up company isn’t on the path to stability until it is cash flow positive and has eliminated the burden of raising further investment capital. It must not only be at breakeven on its operations, it must be through the phase of heavy investment in production capacity and in inventory build-up. Developing financial projections for a company that hasn’t been created yet is one of the great managerial challenges of technology commercialization. In this class we will cover the core operating statements a company needs – P/(L), balance sheets and cash-flow, and then review approaches and tools to generate them. A key concept is fixed versus variable costs and developing the sales level at which breakeven will be reached. NOON-1PM: LUNCH BREAK Location : Alliance Hall, TechnoAlliance Complex

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1-2PM: CASE STUDY Location :Interaction Salon, TechnoAlliance Complex Vermeer A Vermeer developed the first web authoring tool. We will follow Vermeer through its start-up and development. Part A deals with how the people and ideas for a start-up find each other, coalesce and start to take shape. 2-6PM: TEAM WORK Location :Interaction Salon, TechnoAlliance Complex 2:15-3:30pm: Team Meetings with Professor Stevens 4:45-6:00pm: Team Meetings with Professor Stevens

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Day 10 Wed. Aug 27

9AM-NOON: LECTURES Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D Financial Strategy of Technology Commercialization One of the most important issues in technology commercialization is to carefully develop a strategic plan to follow. This class will focus on one of the most important strategic issues for a new venture – how development of the technology will be financed, and how this impacts the company’s capitalization table, which will ultimately dictate how the fruits of success will be divided between Founders, management and investors. Product Pricing The fundamental concept of a technology-based start-up is that it offers a superior answer to a market felt pain, and that it has a protection strategy that will give it the breathing room needed to establish itself and capture the value of that technical advantage before established ventures move in. But just what is that technical advantage worth? If a solution is 20% better than its competition, should the product be priced 20% higher than the competition? Or could it be priced 100% higher? The answer depends on the value delivered to the customer. The customer will probably not be happy about a value-based price, and the best outcome to be hoped for is customer acceptance that the cost-benefit ratio is in the customer’s favor. NOON-1PM: LUNCH BREAK Location : Alliance Hall, TechnoAlliance Complex 1-2PM: CASE STUDY Location :Interaction Salon, TechnoAlliance Complex Vermeer Technologies A-1 and (B) The second part of the case deals with the hiring of the of the company’s CEO and the development of its first product. 2-6PM: TEAM WORK Location :Interaction Salon, TechnoAlliance Complex 2:15-3:30pm: Team Meetings with Professor Stevens 4:45-6:00pm: Team Meetings with Professor Stevens

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Day 11 Thur. Aug 28

9AM-NOON: LECTURES Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D Manufacturing There are particular challenges for any start-up in manufacturing its first product, but these are especially difficult in the life sciences, where the facility will take a long time to build to meet stringent FDA manufacturing standards. Financing such a facility will be particularly difficult since the company will be investing heavily in conducting clinical trials and there will be no assurance when or if the product will receive FDA approval. Luckily an industry of contract manufacturers has developed to meet this need. Product Costing The next challenge for the start-up is predicting its cost of goods. Hopefully, the cost of making a product will come down as volume builds. In medical devices, components come down in price and production experience translates into manufacturing efficiencies, so that in a really ideal world, costs will come down faster than pricing erodes so that profitability rises and profits rise even faster as volume rises. In pharmaceuticals, prices tend to be stable, so there are not such strong pressures on product cost. Cap Tables We will look at how the raising of capital impacts how the fruits of success will be divided between Founders, management and investors. This is captured in the company’s Capitalization (“Cap”) Table, which constantly changes as the company grows and develops. Case Study Baker Pharmaceutical – Low Molecular Weight Heparin This case requires a value based pricing analysis as we discussed on Day 10. Prepare an analysis ahead of time in a spreadsheet. NOON-1PM: LUNCH BREAK Location : Alliance Hall, TechnoAlliance Complex 1-1:30PM: ELEVATOR PITCHES Location :Interaction Salon, TechnoAlliance Complex 1:30-6PM: TEAM WORK Location :Interaction Salon, TechnoAlliance Complex 1:45-3:00pm: Team Meetings with Professor Stevens 4:45-6:00pm: Team Meetings with Professor Stevens (OPTIONAL)

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Day 12 Fri. Aug 29

9AM-NOON: Case Study: startup.com Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D Established companies can be very resistant to new technologies that threaten to make their existing investment in plant, people and patents irrelevant. History is full of examples of existing companies that were put out of business by new technologies that they had the opportunity to control but rejected. Often the inventor’s only option is to start a new company to develop the technology. Start-ups are exciting and can make a lot of money for the founders, but the road can be fraught with pitfalls. We will watch and then discuss the movie “startup.com”. This is a reality movie about the company GovWorks.com” which had a meteoric rise and equally meteoric fall. NOON-1PM: LUNCH BREAK Location : Alliance Hall, TechnoAlliance Complex 1-6PM: TEAM WORK Location :Interaction Salon, TechnoAlliance Complex 1:15-2:30pm: Team Meetings with Professor Stevens 4:45-6:00pm: Team Meetings with Professor Stevens (OPTIONAL)

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Day 13 Sat. Aug 30

9AM-12:15PM: GROUP PRESENTATIONS Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D First Look Venture Assessment Presentations

• 20 minute PowerPoint presentation per team. Rehearse it and time it – no overages allowed!

• 10 minutes Q&A • 2 minutes grading • 3 minutes changing

Written report and PowerPoint in Drop Box by Class Time Time table 09:00 – 09:05 Guidance 09:05 – 09:40 Team 5 09:40 – 10:15 Team 4 10:15 – 10:50 Team 3 10:50 – 11:05 Break 11:05 – 11:40 Team 2 11:40 – 12:15 Team 1 The First Look Venture Assessments will be evaluated by the following venture capitalists and Professor Stevens.

Mizuhiko Hashimoto President, Bridgebook Global, LLC

Naonori Kurokawa Partner, The University of Tokyo Edge Capital Co., Ltd.

Satoshi Morikawa Specially Appointed Fellow, Osaka University

Kazuhiko Morita Specially Appointed Fellow, Osaka University 12:15-12:45PM: CLASS EVALUATION Location : Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D 1:00-2:30PM: CLOSING CEREMONY Location :Interaction Salon, TechnoAlliance Complex Closing Ceremony over Light Meal and Drinks Fee: 2,000 Japanese Yen

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ACCESS MAP 1. Senri Hankyu Hotel TEL:+81-(0)6-6872-2211 Senri Hankyu Hotel Website: http://www.hankyu-hotel.com/hotel/senrihh/

Private railway *From Osaka International Airport: Take the Osaka Monorail and get off at Senri-chuo Station. The hotel is adjacent to the station. *From Kyoto and Takatsuki: Take the Hankyu Kyoto Line to Minami-ibaraki Station. Transfer to the Osaka Monorail and get off at Senri-chuo Station. The hotel is in front of the station. Subway *From Osaka, Umeda, and Shin-Osaka: Take the subway Midosuji Line and the Kita Osaka Kyuko Line and get off at Senri-chuo Station. The hotel is near the South Exit.

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2. Suita Campus, Osaka University TEL:+81-(0)6-6879-4206

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2-1. Conference Room, 2nd Floor, Sanrenhonbu (UIC) Building D, Suita Campus, Osaka University TEL:+81-(0)6-6879-4206

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2.2. Alliance Hall &Interaction Salon, TechnoAlliance Complex, Suita

Campus, Osaka University TEL:+81-(0)6-6879-4206

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2.3. Kasugaoka House, Osaka University (Accommodation) TEL:+81-(0)726-26-6228 The fee (3,000 JP Yen/night) should be paid by cash (JP yen) when you check-in to Kasugaoka House. Credit-card and Travelers-check will not be accepted. Check-in time is between 3PM and 9 PM. If you fail to check-in before 9PM, you can’t stay Kasugaoka House at the night.