How to promote entrepreneurship and commercialization of research at an old General University?

Lars Jonsson Head of UU Innovation & UUAB Holding Company

Uppsala UniversitySweden

Old General Universities

• Difficult to grasp

• Even more difficult to manage

• Long processes to achieve living policies

• Strong academic culture– It is not noble to commercialize– Professor's privilege

Uppsala University

• 530 years in business…– Strong academic traditions– Academic research should stand free!

• Heavily decentralized

• Strongly divested– Theology Space Technology

Arts&Social Sciences

Nine faculties, Three disciplinary domains

Arts

Educational Sciences

Languages

Law

Social Sciences

Theology

Medicine

Pharmacy

Science and Technology

~450 M€ Annual turn over

Research 68%

Education 32%

Professor's privilegeA Swedish specialty…

•All results are the researchers private equity– The University has no rights

– Only Sweden; (Italy with some restrictions)

•Can not use University Money for– Patent applications

– Investments in shares

– Investments in developing projects

Tough odds for patents!

Canadian survey» Thomas Asterbot, Univ of

Toronto, 2003

1061 out of 1091 failed….

< 7 % reached the market

0,5 % became profitable

Research is an investment

Return of investment:– Competitive work force– Competitive inventions– Knowledge based economy– Increased welfare

A University Innovation System is mandatory to achieve this !

Commercialize research

We have a mission to make our

research useful to society

through commercialization and

patents.

Anders Hallberg, Vice-Chancellor, Uppsala University, 2006

Patents are instruments

•Patents and Knowledge Transfer should not be the goal for a university institution

•They are tools to establish a relation and enforce the institution!

• The Svedberg – Nobel Laureate 1926– The Ultracentrifuge

• Arne Tiselius – Nobel Laureate 1949– Electrophoresis and Chromatography

– Gel filtration, phase partition etc

Today: GE Health Biosciences

”The Svedberg Group”- the cradle of modern biotechnology industry!

Uppsala Bio

Invention to company turn-over

200019601940

Pharmacia Biotech GE Healthcare

600 MUSD *

Electrophoresis

Dextran

IgE

Phadia204 MUSD

1980

neuropeptides effect

on ocular blood flow

Xalatan™1.300 MUSD

SPR Biosensors

Biacore

67 MUSD

AMO Uppsala114 MUSD

Function of Hyaluronic

acid

Q-Med 78 MUSD

Heparin

Fragmin™

Biotage

Microwavesyntheses

Padlock Probes

Olink

Researchinventions

Commercialization

Turn-over today~2,600 MUSD / year

of which > 1,000 MUSD is based in Uppsala

What have been done - Organizational structure

1985 1990 1995 2000 2005Liasion office

STUNS – Non-profit

university & society foundation

Science Park

UUABHolding

Company

TechnicalBridge

Foundations

Ad hocCollaboarationAnd spin-outs

• Owned by the University• Arm length distance – no part of the Authority• Legal form = private company

• The Government decides the object in

the Articles of Associations

UUAB The Holding Company of Uppsala University

What have been done - Organizational structure

1985 1990 1995 2000 2005Liasion office

STUNS – Non-profit

university & society foundation

Science Park

UUABHolding

Company

CEFEntrepreneurialEducational Programs

Patent Office

ConnectPUB

meetings

UniversityLiasionCompany

VentureCup

UU Innovation

A WallChair

Key ActorsProgram

ÅMAMaterialAcademy

TechnicalBridge

Foundations

Ad hocCollaboarationAnd spin-outs

SHBPatentGrantsFoundation

UICBusinessIncubator

InnoventusLife ScienceVenture

DrivhusetStudentFoundation

What have been done- Processes

•Recruiting right people• Two-cultural

•Identify champions and relate• Researchers

• External network of entrepreneurs

•Traditional spin-out strategy• Start-ups, out licensing

•Collaborative research• Pro active approach

Three main processes

Stimulate entrepreneurship

– Mainly students

– Business idea in a known market

Commercialization of inventions

– Research results, new products & markets

Creation of business opportunities

– Collaborative research platforms

– between disciplines and with companies

Stimulate 1

CEF -Centre for Entrepreneurship

University centre to stimulate entrepreneurship

– The School of Entrepreneurship

• Last year program for science students

• Real industrial project + theory & seminaries

– Project Management for students

– Seminaries for PhD students and researchers

– Seminaries for small knowledge based companies

Stimulate 2

Drivhuset

Student non-profit organization

– Inspire and stimulate students

– Support entrepreneurship vs employed

– Seminaries, lectures and hands on

– 50 student based companies per year

Stimulate 3

Anders Wall's chair

Professor chair in entrepreneurship

– Donation by Anders Wall, famous

local entrepreneur

– Education and research

– Entrepreneurial Day

• Entrepreneurs Academy

• Niklas Zennström, founder of Skype

– Dollar billionair, Uppsala alumni

Top Class International

Research

Find Foster Forward

SecureVerify

Develope

UIC- Business Incubator

Start-Ups

Existing Company

Free Patent Supervisor

~ 150 discl/year

Projects (UUAB)

New CompanyInnoventus

Existing Company

FuelProfessional Project Management

UUAB

$

UUAB

$

UUAB

$$

$ $ VC $$$

Commercialization of research results

Disclosure process

Business Incubator

UIC

•We are business developers, not landlords

•Business coach 1 day / week

– Not for free, but pay when (if) you can

•UIC not an owner!

•Gives 7,9 times return on the tax investment!

UUABthe Holding Company

• > 500 disclosures

• > 50 start-ups

• Invested ~ 8 M€

• High value creation

UUAB value of portfolio (last price value, adjusted for new investments)

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

2000 2001 2002 2003 2004 2005 2006 2007

+ 63 MSEK already realized

UUAB Results (june 2007)

UUAB Invested 7,8 M€

Realized profit UUAB (exits) 6,7 M€

Value of portfolio ~ 7,7 M€

Running costs 3,3 M€

Net profit ~ 3,3 M€

Consequently investments ~ 128 M€

Generated University Incomes ~ 26 M€

Huge leverage for the University and the Society

Commercialization units

Uppsala University

A new entity

UU Innovation

Faculty & DepartmentsFaculty & Departments

Faculty & DepartmentsFaculty & Departments

Faculty & DepartmentsFaculty & Departments

Faculty & DepartmentsFaculty & Departments

UU Innovation

• Strategy• Partnership• IPR management• Business Law• Entrepreneurship• Innovation

Vice-Chancellor(President)

Vice PresidentVice President

Vice President

UUAB(Holding Company)

Forskarpatent(Patent Office)

UppsalaInnovation Centre

business incubator

One Manager

Society - the winner

Not always profitablefor the professor

for the university

for the Holding Company

Very profitable for the society

Gives valuable collaborations

Increases the competitiveness of the university

Never ever give up

“Success is going from failure to failure without a loss of enthusiasm”-

Winston Churchill