Innovation in Sensor Design:

Innovation in Sensor Design: A Market Driven Approach for

HEI Research & Commercialisation

Mohd. Murray HunterSME Unit

University Malaysia Perlis

New Expectations

• Government’s New Bio-Technology Policy• Funding Focus on Applications/Potential

Commercialisation• Universities Becoming Commercially Orientated• Research Institutions Want Commercial Results• New Community Expectations• Focus on Agriculture• Peer Hopes and Expectations

A New Paradigm Required To Meet Changing Expectations

• Emphasis Shifting to Development and Potential Applications

• Possible Commercialisation

• Research Funding Tied to Results/Outcomes

• Institution Questions –

Can it be Commercialised?

This Requires a Change in Research Orientation

• What We Investigate?• How We Investigate?• Change in Outcome Objectives• Use Different Milestones• Use of Multidisciplinary Approach• Need to Consider Wider Issues• Less Projects – Longer Projects• Higher Degree of Collaboration

World Trends

• There will be less funding from Government for R&D• More competition for R&D Funds• Cluster Development (Universities/Research

Institutes/Industry)• Industry Based Research• Move from Basic to applied, collaborative & contract

research• Rapid commercialisation in niche areas• Focus on IDS (Information Delivery systems)• Most International R&D Industry Collaborative

THE EVOLUTION OFBIOSENSORS

Enzyme Cell Micro-organism

Immuno-agent Animal/Plant

Tissue

Chemo-receptor

XXX XX X

Semi-conductor

(ISFET)

XX X

Thermo-metric

(Thermistors)

X X

Photometric

(optical Fibers)

X X

Plezo-electric

(Quartz)

X X

Chemo-mechanic

X

Biosensor

Transducer

ElectroChemical

cell

amperometric

potentiometric XXX XX

XX

X XXX

Classification of Biosensors with Respect of Biorecptor and transducer Employed

Source: Minh Canh. Tran Biosensors 1994

Electrochemical Clinical DiagnosisPrimarily amperometric

Optical Still Based in Clinical Diagnosis

But expand to:•Environmental

•Food•Security

•Basic biological researchProtein Engineering

(Method & Design)

Cheaper through

mass manufacture

The evolution of a number of SMEs in Europe,And the Asia-Pacific

“Revolutionized the management of diabetesAnd other important aspects of clinical diagnosis”

Biosensors have been dominated by oneapplication

Dramatic changes last few years

Requires the need to cross disciplines andutilize new techniques

Molecular Biology

New GenerationOf Sensors

Down to the Molecular LevelMore rugged Construction

ThermallyStable

Cheaper andMore rapid to

Produce

Research & Development

• Traditionally Been Inspired by Individuals in Group or Institutional objectives

• Information Published or Disseminated at Conference/Seminar

• Work is Usually Forgotten

Types of Research

• Pure Basic Research

• Experimental and theoretical work undertaken to acquire new knowledge without looking for long-term benefits other than the advancement of knowledge

Types of Research

• Applied Research

• Original work undertaken primarily to acquire new knowledge with a specific application in mind

Types of Research

• Strategic Basic Research

• Experimental and theoretical work undertaken to acquire new knowledge directed into specified broad areas that are expected to lead to useful discoveries

Types of Research

• Experimental Development • Systematic work, drawing on existing

knowledge gained from research and/or practical experience, that is directed to producing new materials, products or devices, to installing new processes, systems and services, or to improving substantially those already produced or installed.

Types of Research

• Collaborative Research

• research projects jointly developed by the university and the external partner

Types of Research

• Contract Research

• request made by industry or government agency for a specified research project to be carried out with identified aims & objectives

Types of Research

• Sponsored Research

• granting agencies advertise a call for applications and applications are normally peer reviewed. Research projects are normally basic or strategic but not normally concerned with commercial outcomes

Types of Research

• Consultancy

• project involves buying the skills and expertise (background IP) of university staff, as well as infrastructure to work on a specified project

Types of Research

• Demonstrative Research

• Seeks to answer a question or solve a problem from data collected, usually un-replicated, for the purposes of demonstrating a concept or process to a group, or a method, part of skill development or experiential learning

Thus research will stem from

Basic Research

to

Applied, Collaborative, demonstrative &

Contract Research

Idea from Research Institute, University faculty or individual within them

Undertake study with objectives interesting to researchers

Primarily single discipline approach

Objectives based on discipline thinking

Project results and conclusion

Publish

Paper at Conference

Add to CV

Little commercial interest:Private sector unaware

No or limited economic study or little consideration to scale up potentialNB: to bioprocess engineer has this as a fundamental consideration (difference between scientist and engineer)

Traditional Research Paradigm

Competency and Strength of Research Institutes/Universities

Laboratory Results

Pilot Plant/Prototype

Industrial Scale

Technology Transfer

Research

Development

Commercialisation

Strong

Moderate/

Strong

Moderate/Weak

Investors expect complete technology transferR&D Institutes offer to development stage

Tan Sri Dr. Yusof Basiron, Commercialisation of R&D Outputs – MPOB Ex

Typical Research Project Structure

Problem

Potential Applications of Technology

Basic Technologies

Collaborators ResourcesPotential

Product/Process Outcomes

Milestones/Expected Outcomes

Spin-Offs Downstream/Vertical

Market or Other Significance for Developed Application

Industry

Entrepreneurs

Research Institutions

Technology Needs

Solution

A simple Market Driven Research Model

Industry defined problem or issue

Parameters of problem researched with reference to interdisciplinary frames

Theoretical solution thought out, becomes project objectives, with boundaries of industry requirements

Process designLaboratory trialScaling up

Industry implementation

Research will resemble the basic steps in the product development process

Steps in Commercialisation

• Identify problems that need to be solved a) social b) Industry c) existing d) New areas• Seek commercial collaboration from outset a) discuss potential needs b) what problems need to be solved? c) Market opportunities

Steps in Commercialisation (Cont.)

• Adopt Market Driven Research Framework

• View Research in a Product Development Framework

• View Technology as a means to problem solving rather than an end (i.e., what basic technologies can be utilised?)

• Seek to develop a multidisciplinary team with industry representatives

Technology State of the art and emerging technology Re-evaluating existing technology

Product Opportunity

Gap Economic State of the economy Shift in focus on where to spend money Level of disposable income

Social Social and cultural trends and drivers. Reviving historical trends

Cagan, J. and Vogel, C., M., (2002),

Many Factors Change Markets and Give rise to Opportunities

Steps in Commercialisation (Cont)

• Once established technology, identify its benefit to particular applications

• Horizontal diversifications

• Focus on IDS (Information Delivery Systems) for user friendliness

• Protect IP

• Show off Potential applications where potential takers are

Some Problems

• Finding out what the market requires is a skill that needs to be developed

• There may be no companies involved in a particular niche of an industry sector that we are interested in – This is another barrier to commercialisation in Malaysia

• Scientists are used to working in isolation to industry

The Product Development Process

• Ideation

• Developing Product Specifications

• Market and Application Planning

• Concept and Prototype Generation

• Product Registration

• Product Design

• Further System Development

Opportunity is a Construct

Ability to make linkagesAnchoring a source

of innovation

Having the right Skills

Networks

Resources

Product/MarketStrategy

VisionPlatform

Dream, ego, aspiration, greed, survival, education

ExperienceReference & Benchmark

Cognitive, hemispherial & field Perception

Source Explanation Examples

The unexpected success, failure or

external occurrence

Success of a revolutionary product or the application of technology from one industry to another, sudden or unnoticed demographic changes caused by wars, insurgencies, migration, etc.

Apple computerRapid decline of Proton’s market share

An incongruity between reality as it actually is and

what it ought to be

A change that is already occurring or can be made to occur within an industry. It may be visible to those inside the industry, often overlooked or taken for granted.

Sugar free products and sugar replacements due to concern for healthIncreasing demand for travel and holidays due to increasing incomes and leisure time

Inadequacy of an existing

technology or business process

An improvement in process that makes consumers more satisfied based on an improvement or change in technology.

Caffeine free productsMicrowave ovensMobile phones

Changes in industry or market

structure

New ways and means of undertaking business based on identified opportunities or gradual shifting of the nature of the industry.

Health care industryEducation industry – private education

Perceptual changes

Changes in peoples awareness founded on new knowledge and/or values or growing affluence leading to new fashions and tastes

Leisure and exercise industry aerobics & gyms

Demographic changes

Gradual shift of demographics in population by age, income groups or ethnic groups, etc

Establishment of more retirement homes

New knowledge New knowledge or application of existing theoretical knowledge into an existing industry that can create new products not previously in existence

Video and VCD industryRoboticsBiotechnology

The Ideation Process

Definition: The process of conceptualizing a new

idea for manifestation into a new

product

The Product Development Process

• Ideation

• Developing Product Specifications

• Market and Application Planning

• Concept and Prototype Generation

• Product Registration

• Product Design

• Further System Development

Steps in the Product Development Process (Cont.)

• Manufacturing System Design

• Review Packaging and Product

• Marketing Review

• Test Market (Optional)

• Refining of Product Before Major Launch

• Major Launch

Developing Product Specifications

Market & Product Planning

Product Registration

Concept & Prototype Generation

Packaging Design

Further Formulation Development

Continued

First Part of the Product

Development Process

Further Formulation Development

Manufacturing System Design

Final Packaging & Formulation Review

Marketing Review

Refining of Product Before Major Launch

Major Launch

Optional Today

Test Marketing/ Pilot Production

Cont.

Post Launch Product

Modifications

Common problems associated with successfully

commercialising research & development

Market

• Failure of invention to meet market needs

• Small size of target market

• Lower price than expected

• Unable to gain distribution

• Lack of market research



Technology Takers

• Lack of willingness of companies to take up technology• Disagreements on terms and conditions of technology

transfer• Perceived complexity of technology and risk• Limited human resources on the part of companies to put

time into implementing the new technology or launching the product

• Not familiar with industry• Financially weak• Returns not attractive enough• High capital expenditure not worth the risk• Limited distribution capability



Legal

• Lack of Clear and clean patent ownership

• Government regulations

• Legal costs

• Due diligence and burden of risk

• License exclusivity

• Long period of time for patent grant



Institutional • Too many people to deal with at the university or

research institute• Low priority by university administrators to allocate

resources for patents, contract research, consultancy, technology transfer and education services

• High cost of licensing• Post license technical support offered by university• Researcher leaves institution• Researchers too many projects (time constraint)• Lack of expertise in commercialisation unit



Technology

• Technology not complete

Other

• Unreliable financial estimates

• Rely on Government grant that never comes

• Poor follow up

151413121110987654321

$1 Million$500,000$250,000$125,000$64,000$32,000$16,000$8,000$4,000$2,000$1,000$500$300$200$100

Who Wants to be a Entrepreneur?

A: The Researchers

C: Spin-off company

B: The University

D: Industry

50:50

1413121110987654321

$1 Million$500,000$250,000$125,000$64,000$32,000$16,000$8,000$4,000$2,000$1,000$500$300$200$100

Who should be responsible for

commercialisation?

No Right Answer

15

The Environment

University Verses Desired Cluster Culture

University Cluster

Objectives Short-term routine functions

Long term uncertain outcomes

Product Certain & Produced Everyday

Uncertain & Intangible

Structure Mechanistic Organic

Rules Structured Rules & Procedures

Less Structured, based on informality

Leadership Authoritarian/Structured/Centralised

Leadership based on intellect & Knowledge

Cluster Development is Paramount to Ideation

Factors that Encourage Cluster Development• Strong Science Base Leading research organisations: University departments,

hospitals/medical centres and schools, charities, critical mass of researchers, world leading scientist(s)

• Entrepreneurial Culture Commercial awareness and entrepreneurship in universities and research institutes, role models and recognition of entrepreneurs, second generation entrepreneurs.

• Growing Company Base Thriving spin-out and start up companies, more mature role model companies.

• Ability to Attract Key Staff Critical mass of employment opportunities, image/reputation as biotechnology cluster, attractive place to live.

• Premises and Infrastructure Incubators available close to research institutes, premises with wet labs and flexible leasing arrangements, space to expand, good transport links, motorways, rail, international airport.

• Availability of Finance Venture capitalists, business angels• Business Support Services and Large Companies Specialist business, legal, patent,

recruitment, property advisors, large companies in related sectors (healthcare, agrichemical, chemical, food processing)

• Skilled Workforce Skilled workforce, training courses at all levels.• Effective Networking Shared aspirations to be a cluster: regional trade associations, shared

equipment and infrastructure, frequent collaborations.• Supportive Policy Environment National and sector innovation support policies, proportionate

fiscal and regulatory frameworks, support from RDA’s and other economic development agencies, sympathetic planning authorities.

Invention

Less than 2% of filed patents are ever commercialised

Does a new invention have consumer benefits or create any competitive advantage?

Can consumers accept the new invention?

Dispelling the myths about innovation

• Most new products are incremental steps in enhancement, rather than something

completely new (similar to the automobile industry)

• Very few really novel innovations are

ever launched commercially

• Most companies are followers and not

innovators (even the Body Shop)

• Out of 100 new ideas, less than 2 become a commercial reality

•Less than 5% of new products launched

on the market are successful

Table 6.1. Drucker’s Sources of Innovation

Source Explanation Examples

The unexpected success, failure

or external occurrence

Success of a revolutionary product or the application of technology from one industry to another, sudden or unnoticed demographic changes caused by wars, insurgencies, migration, etc.

Apple computerRapid decline of Proton’s market share

An incongruity between reality as it actually is

and what it ought to be

A change that is already occurring or can be made to occur within an industry. It may be visible to those inside the industry, often overlooked or taken for granted.

Sugar free products and sugar replacements due to concern for healthIncreasing demand for travel and holidays due to increasing incomes and leisure time

Inadequacy of an existing

technology or business process

An improvement in process that makes consumers more satisfied based on an improvement or change in technology.

Caffeine free productsMicrowave ovensMobile phones

Changes in industry or

market structure

New ways and means of undertaking business based on identified opportunities or gradual shifting of the nature of the industry.

Health care industryEducation industry – private education

Perceptual changes

Changes in peoples awareness founded on new knowledge and/or values or growing affluence leading to new fashions and tastes

Leisure and exercise industry aerobics & gyms

Demographic changes

Gradual shift of demographics in population by age, income groups or ethnic groups, etc

Establishment of more retirement homes

New knowledge New knowledge or application of existing theoretical knowledge into an existing industry that can create new products not previously in existence

Video and VCD industryRoboticsBiotechnology

New Knowledge Innovation is the most risky

Better to focus on other sources of innovation: ie, applications of existing ideas and technologies as new knowledge technology development is extremely long term.

Bright ideas are the riskiest source of innovation and rarely succeed. Receptability is always the problem (look at patents files but never commercialised)

Products more than 5 years old usually don’t make major

contributions to a company’s revenue

•Technology

•Consumer style change

Companies need Innovation

0 10 20 30

Length of Life Cycle (Years)

Cosmetics

Toys

Tools

Food Items

Pharmaceuticals

Fifty Years Ago

Today

Figure 6.7. The Product Life Cycle Has Shortened Dramatically Over the Last 50 Years

Sensors in Agriculture

• Precision Farming • Soil Management• Crop Management• Propagation Management• Tissue Culture• Nutrient Management• Integrated Pest management• Overall Farm/Estate Management

Sensors in Agriculture (Application view)

• Reduction of crop losses

• Quick analysis to adapt to changes

• Maintain adequate and balanced nutrition

Sensors in Medicine

• In body DNA/Genetic Sensors

• General health sensors

• Disease detection

• Metabolism monitoring & Control

Sensors in Industry

• Industrial & Process Control

• Quality Control

• Process monitoring

• DSS (Decision support systems) in process control

Sensors in Industry (Application view)

• Reduction of losses during processing

• Improved recoveries of extractions

• More efficient recycling procedures

Sensors in the Environment

• Water & Air Pollution

• Identifying sources of pollution

• Monitoring known sources of pollution

• Environmental audits

• Overall environmental monitoring

Sensors in the Environment (Application view)

• Improve water and soil conservation

• Improve general environmental wellbeing

• Eco-system reinforcement

• Waste control

Sensors in the Food Industry

• Process control

• Contaminants

• Toxicity & heavy metals sensing

• Halal & haram sensing

Conclusions

• Require formation of a positive cluster culture (innovative environment)

• Focus on societies needs• Look at new trends and developments• Imperative to enlist commercial collaboration

from the onset of the R&D process• Understand the value of IP and its potential

applications• Focus on applied/collaborative/consulting• Importance of IDS

Thank You