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1/31/2011

Massachusetts’Medical Device EcosystemMassachusetts’Medical Device Ecosystem

Steven Tello, Ed. D.Assist. Professor, UMass LowellAssoc. Director, M2D2

Steven Tello, Ed. D.Assist. Professor, UMass LowellAssoc. Director, M2D2

• Pharmaceuticals• Biotechnology• Medical Devices• Wholesale Trade• Medical Testing Laboratories• Teaching Hospitals

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Empl. Year• 59,000 2009• 62,500 2008• 58,500 2007• 57,200 2003

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Range of Jobs Created

BASICRESEARCH

BASICRESEARCH

APPLIEDRESEARCH

APPLIEDRESEARCH

PROTOTYPE &DEVELOPMENTPROTOTYPE &DEVELOPMENT COMMERCIALIZATIONCOMMERCIALIZATION

SCIENCE

Ph.D Biology,Chemistry,

BS, MSResearch Assts.

Lab Technicians

SCIENCE

Ph.D Biology,Chemistry,

BS, MSResearch Assts.

Lab Technicians

SCIENCE &ENGINEERING

PhD Researchers

MD, ClinicalResearchers

Research Assts.

Statisticians

Clinical LabTechnicians

SCIENCE &ENGINEERING

PhD Researchers

MD, ClinicalResearchers

Research Assts.

Statisticians

Clinical LabTechnicians

ENGINEERING,REGULATORY &

BUSINESS

Engineers

NPD/ OperationsSpecialist

Regulatory

QA/QC

Technicians

ENGINEERING,REGULATORY &

BUSINESS

Engineers

NPD/ OperationsSpecialist

Regulatory

QA/QC

Technicians

BUSINESS

Marketing

Medical Affairs

Brand Managers

Manufacturing

Sales

BUSINESS

Marketing

Medical Affairs

Brand Managers

Manufacturing

Sales

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• Concentration of World-Premiere Medical& Research Institutions

• Engaged Software, VC, Trade Councils• Established and Startup Life Science

Companies• Business Services to support Company

Establishment and Growth

R&D as Percent of GDPMass. & International

• Leading Technology State in R&D

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Private Investment inLife Sciences (pre-2008)

• MTTC/JAII Index of MA Innovation Economy

Licensing Revenue

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Comparisons

Massachusetts Ireland

Population 6.6 M 4.2 M

Area 21.5 km2 (8.3 miles2) 70.2 km2 (32.6 miles2)

GDP $365 billion(3.2% 2008)

$228 billion(-3.5% 2008)

Med. Device Comp. 250 160

Employment 59,000 24,000

Exports $7.2 B €6.8

Research onMedical Device Entrepreneurs

• Role Confusion among Inventor/Entrepreneurs(M2D2 Experience)– 75% Medical Professionals

May not want to start a business!– 25% “Idea Guy”

May not know market or science

– Limited Knowledge of Commercialization Process

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Research onMedical Device Entrepreneurs

• Networks critical to Venture Development– Help to educate Inventor/Entrepreneur about

Commercialization Process– Participation in Network Activities increases

Legitimacy– Legitimacy through Network Activities contributes

to additional Network Access and accompanyingresources

– Experienced/Serial Entrepreneurs betterunderstand how to leverage networks

Networks in Massachusetts• M2D2

– Concept to Prototype, Resource Network– Business, Clinical, Engineering Assistance– Incubator

• Massachusetts Life Sciences Center– Research Funding, Accelerator Funding– Infrastructure Support, Summer Intern Program

• MassMEDIC– MedTech Ignite

Mentoring by Experienced Med Tech Execs,Education programs

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Networks in Massachusetts• Mass. Technology Transfer Center

– Platform Presentation– Entrepreneur/Inventor Training– Revolving Grants Program

• Massachusetts Technology CollaborativeJohn Adams Innovation Institute– Support Innovation activities across industry sectors

in Mass.– IT/Wireless, Life Sciences, Medical Devices

• MVVF: Merrimack Valley Venture Forum– Promote regular meetings among entrepreneurs,

inventors, funders and related support personnel– Recent launched first business plan competition

Research onTechnology Transfer Officers

• Life Science TTO (21 TTO, 11 Institutions)

– Rank Market Need and Competition in Marketas most important success factors

– Level of Innovation and Degree of Maturityranked as less important success factors

– Medical Need mentioned consistently as an over-riding factor

– Years Experience positively related to value forInventor Involvement and Internal and ExternalCollaborators

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Research onTechnology Transfer Offices

Research onTechnology Transfer Offices

• Offices in 6 Research Hospitals

– Inconsistent in how TTO make decisionsabout technology commercialization

– The beliefs and experiences of individual TTOsignificantly influence decision-making

– Few common practices among institutions inassessing Market Need, Competition inMarket

– 100% Focus on Licensing Arrangements

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Research Implications

• Medical Need may trump Market Need in thepre-license phase.

• Bias toward Licensing may inhibit commercialsuccess by limiting other value options

• Individual experience influences TTO decisionmaking and Institutional Practice

• Opportunity to improve Institutional KnowledgeManagement (and possibly ROI).

Questions

• Steven Tello, Ed. D.University of Massachusetts LowellSteven_Tello@uml.eduhttp://faculty.uml.edu/stello

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Resources• Index of the Massachusetts Innovation Economy

2009, Mass. Technology Collaborativehttp://www.masstech.org/institute2009/the_index_2009.html

• Irish Medical Device Associationhttp://www.imda.ie/

• MassBenchmarkshttp://www.massbenchmarks.org/publications/issues/vol8i1/5.pdf

• Tello, S., Latham S. & Kijewski, V. 2010. “Individual Choiceor Institutional Practice: Which Guides the Technology TransferDecision Making Process?” Management Decision 48, 8, 1261-1281.

Resources

• Tello, S., Latham S. & Kijewski, V. (In Press). “AssessingDifferences between Technology Transfer Officers and Institutions inthe Decision to Commercialize New Technologies," InternationalJournal of Technology Transfer and Commercialisation, AcceptedSeptember 2009 (19 pp).

• Tello S., Yang Y. & Latham S. “How Nascent EntrepreneursLeverage Networks and Resources in a University Incubator”,Academy of Management Annual Meeting1, Montreal, Canada,August 8-11, 2010