IN my previous article titled “Commercialisation of Biotechnology Research Outcome” we spoke about one form of commercialisation which bio-technology researchers can take. In this easy we cover various forms of commercialisation available to bio-technology research.
Advantages of Commercialisation
When commercialisation occurs on research and development, it will develop a great place- Knowledge Centre, where knowledge sharing will be occurred. Commercialisation helps in improving the technologies accordingly where it creates new market as well as develops the needs of the consumer. In long term, commercialisation can help in sustaining economic growth in the future development as well as commercialising new technologies.Thus, commercialisation helps in maximising the unique resources, expertise, technology, facilities etc.[ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”2,3,5″ ihc_mb_template=”1″ ]
Disadvantages of Commercialisation
Controlling the cost from concept to commercialisation is very difficult and is a challenging task. This is due to low access to market capital. Thus, the probability for the industry to fail is very high. Due to new products entering the market, the situation of inconsistent profits is very common and it is also one of the major disadvantages.
A researcher’s commercialisation journey carries the meaning of the methods and ways of how a researcher takes in the process of commercialising their invention i.e. innovation.
There are 2 possible scenarios to consider which are:
1. The product is still being developed and a commercialisation strategy is developed hand in hand with the development of the product.
2. The product has finished being developed and the strategy in now being developed. The strategy is developed separately from the development of the product.
The scenarios are normally dictated by the environment in which the researcher operates.
Transforming Idea into A Commercially Viable Model
Converting an idea into a commercial model is not an easy task. The person who gives birth to the idea has to take ownership as there will be no one else capable of understanding the concepts and depth of the idea as the person who conceptualised the idea. Its equivalent to giving birth to a child, one has to own the responsibility that comes with it. For an idea to be commercially successful it has got to continue growing and evolving because in order to keep the idea alive over time it has to evolve and continuously adapt to its current circumstances. Failure to evolve will result in obsolesce of the idea.
The types of path for University Research commercialising.The following are the path
1. Technology Transfer/ Licensing
2. Contractual Research Projects
3. Start-up Companies
4. Consultancy, Training & Other
Technical Services
5. Joint-Venture – Construction of
Public Private Partnership
6. Agency Run Industry
Technology Transfer/ Licensing
In the previous article, we had covered Technology Transfer/ Licensing in detail so this essay shall cover the other forms in detail.
Contractual Research Projects
• Commissioned
o R&D expenditure
provided by enterprise and R&D is completely authorised for universities. University organises alone the R&D staff. Prior to completion, universities hands over all the achievements to the enterprise
• Combined development
o University and enterprise assign staff to form the R&D team and jointly accomplish the fixed research objective. Expenditure is provided by enterprise.
Contractual Research Establishments
Formed on campus and some within enterprises or even within working units on campus and in enterprises. There are two types of establishments – Independent legal persons or non-independent legal persons. Independent legal person is funded by an enterprise in the form of cash and fixed assets and the University provides invisible assets, independent office space, fixed staff and operational expenditure. Non-independent legal person is located within the university or enterprise.
Start-up Companies
Firstly, for companies’ patent owned is better than just the license rights. Secondly, the number of patents owned makes a difference. Thirdly, it is perceived that a patent owned is much easier to manage and control than a licensed patent. Typically, the individual, university, research institute or government laboratory making its patent available to the start- up company does so, not necessarily for royalties, but instead for shares in the start-up company. Given that the patent is made available for shares, not royalties, and given the desirability of maximising the exit opportunities and exit terms, for all parties it might be considered prudent to assign the patent to the start-up company, and not just to license it.
Implementation of the Law on Corporations led university-run proprietorships subject to limitation. Since the investment of more than two natural or legal persons is required to form a company with limited liabilities, this led to the formation of joint incubation of
• enterprises by universities with production enterprises
• foreign-funded enterprises or risk investment companies
Advantages: Powerful R&D teams and continuous technical achievements
Disadvantages: lack of enterprise management teams with experience of actual combat and market operating ability
Consultancy, Training & Other Technical Services
Substantial factor in industry-university partnership. Application of R&D achievements, product development consultancy, enterprise management consultancy and Test and assessment of product properties.
Joint-Venture – Construction of Public Private Partnership
Public service platform supported by government, sponsored by the university and encloses the university science park, enterprise incubator, technology transfer and productive force promotion center. Regional research institute information station are formed by the university and supported by the government. It plays a bridging and promotional role in information exchange, R&D cooperation, enterprise incubation and other technical services.
Agency Run Industry
These are usually run by a government agency which would commercialise the research done in these agencies.
Conclusion
As it can be seen clearly there are multiple paths to commercial University research. Before starting the research work the researchers should plan which path they would like to take and work accordingly to execute that path early to ensure commercial success
Muthu Singaram is a Consultant, Mentor, Facilitator, Professor Emeritus, a UK Trained Electrical and Electronics Engineer with an MBA, Chartered Electrical Engineer (UK) and European Engineer, PhD Scholar at IIT Madras, India. He has over 25 years of work experience in Engineering, Management and Entrepreneurship. Muthu is currently the Co-Founder AcceleratorU, Ultimate Startups, Founder Muthu Singaram Consulting, VibaZone, Belief and CEO, HTIC, Med-Tech Incubator IIT Madras, India. Muthu is on WIPO and UN panel for technology transfer and SME and visiting faculty and speaker in the areas of innovation and Entrepreneurship around the world. Muthu’s recent major consulting assignment is for the Malaysian Government Agency (Agency Innovasi (Innovation) Malaysia) under the Prime Minister’s Office on industry driven Innovation, helping research and entrepreneurs in accessing technology and business models. This article was co-written with Prathista Jain.
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