committee of vice rectors of polish universities, lodz - june 2012 commercial opportunities from...
TRANSCRIPT
Committee of Vice Rectors of Polish Universities, Lodz - June 2012
Commercial Opportunities from University Research
Experience from Oxford
Tim CookUniversity of Oxford
Director - Isis Innovation, (Managing Director 1997 – 2007)Associate Fellow - Saïd Business School, (Visiting Professor of Science Entrepreneurship 2006 -2009)
Summary
Knowledge Transfer (KT) is important • for Universities, business and society
It’s all about people• Vision and interpersonal skills are crucial
Modest investment in KT can give large returns• Because universities have a lot of unexploited potential
Some supporting evidence• From fifteen years in an ancient university
What are the opportunities?
“University” covers a wide range of institutions• They all teach• Some train• Most research
Opportunities from a particular institution depend on:• Resources available
Financial, personal and intellectual• Abilities & attitudes of staff
both academic and administrative
How big is the opportunity?
If we add together the amount of money spent on research in Universities we will get a huge sum• You will know better than I do what it is in Poland• In the UK it is £1.5bn (zl 8bn) of taxpayers’ money
What can the taxpayer expect for this?• Educated students • and perhaps some economic impact
I am not disregarding the economic impact of education• but teaching is funded from a different budget• This talk is about the commercial impact from the Research Budget
What is the function of university research?
The creation, recording and dissemination of new knowledge
Is it irresponsible to divert clever people from this to create commercial opportunities?
Of course it would be irresponsible but• It is possible to manage commercialisation• Without disrupting academic activity
IT SHOULD BE EASY
Potential recipient of the idea
Originator of the idea
Potential recipient of
the idea
Potential recipient of
the idea
Transferring ideas
Intermediary
Boss(es)
Resources
Originator of the idea
Originator of the idea
So why is it difficult?
Transferring an idea (invention, procedure, service) from one environment to another is a cross-cultural activity
KT is not the main priority of academics or industrialists
Academics are fully employed doing what they do • In the case of a researcher – research• In the case of a teacher – teaching
Potential recipients are busy doing what they do• Running the company, dealing with their bosses / shareholders etc. • And probably don’t see a need for outside ideas anyway
Why is it difficult 2?
Not only are the sources & recipients busy
There is a shortage of cross-cultural intermediaries
The intermediaries are under-resourced
Those allocating resources aren’t sure they want to do it anyway!
Barriers to commercialisation
Everybody is busy • And feels under-resourced
Single track careers• Few move back and forth between industry or academia
Different value systems• Between industry and academia
Different value systems
Commercial World
Corporate activities must be integrated
Much commercial confidentiality
Investors expect financial returns
Academia
Actions are necessarily independent
Quality & quantity of Publications
Funders fund activity not returns
Action plan
Plan A (not successful!) Tell universities to be more “business-like”
• “Any competent industrial manager could soon sort them out”
Tell industrial companies to support universities• “Why don’t companies just give us more funding?”
Plan B Understand the value and values of both cultures
Support interfaces that use their unique strengths
Develop the interface
To set up a collaboration between a non-German speaking Frenchman and a non-French speaking German needs more than just a translator
We need someone who can explain French attitudes to life in German to the German and vice versa
My first choice would be someone who had • lived for some years in each country and • understood how their different societies work
Isis Project managers have PhDs & commercial experience
It is not all new
There have always been commercially adept academics• 1959 Martin Wood spun Oxford Instruments out of Oxford University • 53 years later: Market capital £600m (zl3bn), 1,500 employees
There are many other examples from different universities but
Considering the research spend there are not many
A more effective support system can achieve a better return on this investment
WHAT CAN WE DO?
Where do you put the support?
University Knowledge Transfer Office• Some universities have an internal office funded by the university• essentially a “service department”
Knowledge Transfer Company, Wholly owned by a University• E.g. Oxford, Cambridge and many others
Knowledge Transfer Company, Partially owned by a University• E.g. Imperial College, London• Raising external investment gives more resource• External investors will expect to have an input (may be positive or negative)
Privately owned Knowledge Transfer Company• By developing close relationships with one or more universities
Entrepreneurial individuals can create value for universities & themselves
Public Sector Organisation• Can provide creative investment of public resources
Advice to KTOs
Always operate in the environment as it is• I don’t understand your individual environments
But I know they are complex• In 1997 I didn’t understand Oxford University
But I knew it was complex
Remember that there are only three participants• The originator of the idea or service• The potential recipient of the idea or service• The intermediary (and those assigning resources)
Our challenge, as promoters of KT, is to help all of the above want to do it enough to change their behaviour
Convincing researchers - so they are prepared to get involved
They need to believe it is worth their time• Internal (and external) marketing
They need to believe you will help them• Demonstration of success
They need to believe the KTO is competent• Employ competent staff!• Demonstrations of previous success (but in their values)
They are trusting you with something they care about• Their ideas and their time
Convincing recipients - so they talk to you
They need to know & remember you exist• External marketing of the institution and the KT portal
They need to trust you• Demonstration of success
They need to believe you are competent• Employ staff who can relate to industrialists• Demonstrations of your success (but in their values)
They are trusting you with something they care about• Their time
Convincing our own University - so it allocates some resources
• This is the hardest one!
Identify potential contribution to the institution’s success• Universities all need to demonstrate “impact”, so focus on it• Regular report to Rector (good news on the front page!)
Recruit influencers in University• Seek their advice • Help them identify with what you are trying to do
Work hard on detractors• If your activity is well run you will eventually convince (most) of them
Raising resources
Sell the vision
Raise resources
Use new resources wisely & so expand expectations
Raise expectations
Raise more resources
IT REALLY CAN WORKOBSERVATIONS FROM OXFORD 1997-2012
Isis Innovation 2000 - 2012
Year Ending March: 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
University Investment £m
1 1 1 1 1 1.2 1.2 1.2 1.2 2.5 2.5 2.5 2.5
Staff 17 21 23 34 36 36 36 37 44 54 62 68 80
Open Projects 319 415 476 629 725 764 784 841 978 1112 1182 1321 1450
Patents filed (pa) 55 63 82 65 52 55 57 49 68 64 73 65 100
Licence Deals (pa) 21 36 42 37 31 38 45 50 74 69 93 107 113
Consultancies (pa) 34 50 48 59 89 102 151 157 185 243
Spin-outs (pa) 6 8 8 7 3 4 6 7 4 4 3 4 5
Annual T/ O £m 0.9 1.2 1.7 2 2.3 2.7 2.9 3.6 4.8 5.6 7.5 8.3 10.1
Isis Innovation 1997 - 2012
0
50
100
150
200
250
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Year to March 31st
Isis Staff
Isis Innovation 1997 - 2012
0
50
100
150
200
250
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Year to March 31st
Isis Staff
Spinouts started in year
Isis Innovation 1997 - 2012
0
50
100
150
200
250
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Year to March 31st
Isis Staff
Spinouts started in year
Licences signed in year
Isis Innovation 1997 - 2012
0
50
100
150
200
250
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Year to March 31st
Isis Staff
Spinouts started in year
Licences signed in year
Consultancies signed in year
Isis Innovation 1997 - 2012
0
400
800
1200
1600
2000
0
50
100
150
200
250
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
£000
Year to March 31st
Isis Staff
Spinouts started in year
Licences signed in year
Consultancies signed in year
Isis Enterprise Sales £000
How it looks from the University
CULTURE CHANGE
Culture Change
All three must proceed together but the University must lead the change because..
1. The ideas are in the University• If the University provides KT resource, change will happen faster
Oxford pre-Isis 1 spin-out every 4 years, post-Isis 4 per year
2. If the University doesn’t lead, the University may not receive its share of the benefits
Entrepreneurial culture of
researchers
University knowledge transfer
resource
Local professional environment
Executive(policies)
Other academics
Gene pool Commercially
active academics
The University
KnowledgeTransfer
Office
StudentsBrokers
Itinerant Managers Consultants
A “sub-culture” in a “barter economy”
Investors Lawyers
Headhunters
PR agent
Realestate
LeasingBanks
Accountants
Specialist suppliers
Otherstart-ups
Who benefits from Knowledge Transfer?
University• Reputation, interactions for students, royalties, spinout shares
Researchers• Technology, royalties from licences/consultancy and spinout shares
Research Funding Sponsorship• From spinouts and licensees
Industry • New technology
Economy• New industries and new technology to existing ones
Investors who engage with Universities• High returns on world class science
Conclusions
Opportunities exist in Universities for:• Economic development• Wealth creation both for the institution and for individuals
To realise these benefits needs competent intermediaries and facilities
The allocation of appropriate expertise & resources is essential for success
And will produce a substantial return for Universities, Researchers and the Economy
Thank you
www.isis-innovation.comwww.isis-enterprise.com