Enabling R&D collaborations from an SME perspective

Pierre MelocheFederal Partners in Technology Transfer

June 17 2009

Highlight

• What are the company`s primary business drivers?• What are the company`s technology transfer alternatives?• What does a company really want from an R&D lab or

university?• As a CEO, with whom do I want to tango?• What does a CEO look for in a R&D collaboration

agreement / license?

What are the company`s primary business drivers?

• maintain high ROI: be profitable or perish!– increase sales revenue, increase market share, reduce

costs, higher contribution margins and higher profits• maintain firm`s competitive edge in global markets by:

– streamlining existing processes products– finding new business opportunities i.e. large market, double

digit growth, scaleable, 35%-40% ROI • maintain investor confidence by:

– addressing shareholder expectations through higher EPS and higher company valuation

– finding affordable capital to finance growth

What are the company`s primary business drivers? (cont’d)

• maintain client satisfaction through improved products and services by:– addressing the clients’ pain – reducing selling price– adding more functionality– ensuring on-going client support and product

maintenance• satisfy industry needs with innovative, evolutionary and/or

disruptive products

What are the company`s technology transfer alternatives?

• develop technology in-house • acquire technology by either merging with or acquiring

another organization • collaborate with R&D lab or university • a few key considerations:

– need first mover advantage– window of opportunity is limited– time is of the essence, – too few $ for development / too long to get to market /

too late to market!

What does a company really want from an R&D lab or university?

• innovative technologies that create complementarity and synergy with existing company products and services

• finding the WOW factor! • finding a technology prototype that is bug-free, allows for

rapid development with few surprises and has little draw on working capital

• access to unique scientific / technical expertise and facilities

• unfettered access to the technology • find a collaborator with the right solution at the right price

that will generate profits!

As a CEO, with whom do I want to tango?

• find a BDO / RO willing to listen to my needs and be understood

• look for builders (champions) as opposed to process enablers

• seek out interesting people and people interested in their work – the go getter!

• expect transparency• want someone who exudes trust, respect and commitment

What does a CEO look for in a R&D collaboration agreement / license?

• wants the good, the bad and the ugly up front! • wants a fair deal and avoid getting fleeced for lack of

experience and knowledge• the devil is in the details! • seeks creative, royalty-offset solutions that satisfy both

parties

What does a CEO look for in a R&D collaboration agreement / license? (cont’d)

• its all about Tech Push’n Pull! – engagement from the Lab • seeks on-going partner cooperation and presence at

product trials and a willingness to speak to potential investors

• explore creation of a joint technology improvement fund• receptive to bundling of technologies – the all inclusive

deal!• flexibility to parachuting firm`s technology champion into

federal lab / university

What does a CEO look for in a R&D collaboration / license? (cont’d)

• favors regular, proactive two-way communication• seeks opportunities for joint presentations / joint

publications• Is the firm getting its value for the money, i.e. the royalty

cheque?• Is IRAP present?