What is Innovation?

Knowledge Transfer and Innovation: How to make it effective, with examples based on Nano-CommercializationProfessor Peter DobsonAcademic Director, Begbroke Science Parkpeter.dobson@begbroke.ox.ac.uk

What is Innovation? • Invention happens and IP is created, Patents filed etc… • The IP has to be converted into a business or a product: this is the innovative step. • Managing innovation is a new and poorly understood topic. • We introduced Enterprise Fellowships to do this in Oxford, and in 3 years out of 17: 7 started companies, and 7 are now full-time Technology Transfer specialists

The Innovation chain Research Inventive step Patents Spin-out company Innovation occurs here! Partnership(s) Company Expands (sales/marketing) Products A Products B Products purchased

Assignment of intellectual property rights Inside the University Outside the University Researchfundingsource Spin-outs Government Research Services 40 Staff 85% Graduates 33% Post grad degrees IP Due Diligence Team Isis Innovation 56 staff 75% Graduates 50% Science doctorates Consulting Charities Licences Industry New sponsored research Transfer of Intellectual Property in Oxford University

Innovation at Oxford“Innovation is what happens between invention and revenue generation” Said Business School, MBA etc…. Device or materials supplier Departments Licence Deal End-user Invention by academic Isis Innovation Continuing Professional Development KTN and KTP activities Begbroke Science Park: space and industrial links Flotation or acquisition Spin-off Company OxSec and Venturefest raise awareness Enterprise Fellowships were created to help start the innovation activity. INVENTION REVENUE

How do we encourage innovation? • Enterprise Fellowships (Begbroke) • Oxford Science Enterprise Centre (Business school) • Courses introduced in the undergraduate curriculum • Creating a new ethos for invention and innovation

Enterprise Fellowships • Industrial Research Fellow exploit recent research by post-grads/docs • Business Development Fellow assist Isis Innovation team with the above, with help from Business School • Knowledge Transfer Fellow work with Continuing Professional Development to develop new modular courses in topical key areas. All of these were given training and mentoring by a team of experts

2003/4/5 Enterprise Fellowsexamples of the industrial fellow activities • Terry Sachlos: Formed TEOX Ltd, Synthetic bone structures • Tiancun Xiao: Formed Oxford Catalysts plc, novel low Temp catalysts • John Topping: Formed MFN, thermal control layers • Cathy Hua Ye: Artificial tissue plans still in progress • Stephen Bell: Artificial flavours & fragrances, license deal • Jamie Patterson: Novel imaging techniques, formed Eykona Ltd • Tim Rayment: several patents then joined a company • Wolfgang Denzer: formed Oxford Medical Diagnostics Ltd • Chris Padbury: filed patents, now works for TTP,Cambridge • John Laczik: formed a diffractive optical element company.

2003/4/5 Enterprise Fellows Business development • Terry Pollard: assisted several industrial fellows, moved to Oxford Catalysts now back with Isis Innovation. • Liz Kirby:based in Isis and developed courses on IP, now at Reading KT office • Andrea Mica: worked with Isis now with IP Group plc • Giles Dudley: Business development with Isis, now at Edinburgh Univ Innovation • Knowledge Transfer: • Stuart Wilkinson: NanoBasics and NanoCert courses, now at Isis Innovation • Jenny Knapp: ClimateBasics and other courses, now at Bristol Univ tech transfer. • Simon Nee: GRID-service course, now in banking..

During the Innovation Process: Can we shrink the timescale? This is a complex subject but one key to this is to establish the market needs and aim for early revenue generation Form partnerships with other companies Use toll manufacturing Use other sales/marketing

Science Parks in Europe • Some are pure “real estate” with provision of space and minimal management • Some are embedded in University buildings • A trend is for them to be incorporated within a University campus setting but fully independent, with help provided to companies regarding facilities and guidance. At Oxford (Begbroke) the latter is our model and we are learning more about the optimal solution

Purchased 1998 with 7500m2 lab/office space. Initially mainly Materials Dept. and spin-off activities Has a incubator for spin-off and spin-in Companies Investment ~£35M (2005) from University, JIF, SRIF, Industry sources Prof Peter Dobson Academic Director (2002) 6 miles north of Oxford city centre Begbroke Science Park Initial Focus on Advanced Materials, Nanotechnology and Environmental Technology Another 9000m2 of laboratory and office space will be built in the next 3 years

Begbroke aerial 2008 Centre for Innovation and Enterprise Advanced Processing Laboratory Institute of Advanced Technology

Centre for Innovation and Enterprise at Begbroke Mixed types of space Flexible terms for rental Close proximity to world-class Materials facilities Further information: barbara.allsworth@begbroke.ox.ac.uk

Institute of Advanced Technology • Business- focused nanotechnology activities • New energy technologies, hydrogen/solar • Sustainable materials technologies, aero/auto • Environmental management and Water research • All are University inter-departmental Focus to be “solution driven” problem- solving utilising interdisciplinary teams

Can we embed industry and business personnel in University? • There is a need to define and match expectations. • The possible benefits for academia are obvious, but are there benefits for business? • Yes, on a collective basis, but remember that managers are more focussed on their unit’s performance and absence of valuable people is not attractive. • Very difficult for SMEs • How can we compensate for this? • What happens next? Some very successful examples of “visiting professors” giving very useful course enrichment and experience to students.

Embedding University personnel in Business and Industry • Gives new insight for academics • Do they contribute or are they a drain on resources? • SMEs are likely to be attracted to the idea • What happens after the attachment? My personal experience was life-changing, I left Imperial College and joined Philips. Others have gone back to academia and undertaken more applied research and engaged in teaching with more of a “business focus”

Outline of Nano-Commercialization • Introduction to nanoscience and nanotechnology • Oxonica, a company based on making and designing nanoparticles: its history and the lessons that were learned • Innovation and the possible routes to commercialisation. • Regulation and safety

New awareness of chemistry, physics and biology especially at the molecular level Optimism of what is possible Concerns for the impact of scientific research Improvements to existing products in terms of performance or value New functionality paradigms Improve our control and understanding of processes and “life”. Nano-sciencevs Nano-technology

Quantum Corrals: works of art but are they useful? They enable us to visualise where electrons are in 2-D structures http://www.almaden.ibm.com/vis/stm/corral.html

Nanotechnology: Fact or Fiction Glass that cleans itself Fact Safe Sunscreens Fact Fact Less polluting fuels Fiction Nanorobots on the loose

Matching expectations of Scientists and Technologists • Scientists view things on a short time scale! Their measure of success is simple: publications in top peer-reviewed journals • Technologists have a longer, more tortuous time scale. Measure of success is to manufacture and sell into a market

How Oxonica started: the original vision • Research on manufacture of luminescent nanoparticles in the late 1990s at Oxford led to belief that we could offer low voltage nanoparticle phosphor materials to the field emission display industry. • This idea was flawed, because industry wanted a complete solution and not a small part of the solution. Note a field emission display needs electron emitters, the phosphors, a screen, fully integrated into a product. • Attention was then given to nanoparticle sunscreens and diesel fuel catalyst additives. The former had strong internal University IP, the latter did not.

Oxonica plc • University of Oxford spin-out formed 1999 after 7 years background research • Focus on Energy, Environment and Healthcare • “Solution Provider” ethos • £2.3M from Angels and DTI awards • £8.2M from Institutional Funding • Revenue generating from 2002 • Tailoring nanoparticles for customer applications, building revenues based on IP generation • Floated on AIM 20-7-05, market cap. £35M • Took over Nanoplex (US) 20-12-05 • Deal with a Turkish oil company broke down in 2007, reduced valuation. • ~40 Employees, strong commercial and industrial experience. • Current shares trade at ~20p (September 2008)

Early Oxonica products Grown by colloidal solution growth Size-tuning of optical properties Quantum dots are still looking for a high value application!

Nanophosphor particles Y2O3:Eu Mild anneal High temperature heating Detail of surface

Field Emission Display This technology did not “take off” largely because the emitters were not reliable. It taught us a lesson: Think about providing the complete solution.

The early lessons • Discard the idea of pushing clever nanotechnology • Try to provide a complete solution to a market need • Quantum dots were “fashionable” but where is the market? (this is true today!)

Oxonica product pipeline Phase 0 Idea Phase 1 Feasibility Phase 2 Proof of Concept Phase 3 Scale-up Phase 4 Pre- commercial Phase 5 Commercial Transparent conducting oxides TCOs for devices Sunscreens Early Revenue Generators Biodiagnostics New product concepts for Healthcare & Environment Fuel Emission Catalyst Printing Inks Biodiagnostics is risky unless you have quantified the market need and supply chain TCOs have become a very important market need

Cleaning up diesel exhaust with “Envirox” • Based on a Cerium Oxide nanoparticles dispersed in hydrocarbon solvent • Fuel-borne additive • Nanoscale particle size ~20-40nm • Extremely high catalyst surface area • Direct addition to diesel fuel: • Fuel-borne catalysis • Approx. 5ppm Cerium Oxide • Low application rate – only 1 litre of Envirox to 4000 litres of fuel • No engine modifications required Examples of diesel exhaust particles These are regular carbon particles bound together by thick unburnt hydrocarbons.

Envirox™: Fuel Economy Performance Hong Kong Field Trial – Cummins Engine Pre-trial period Trial period Post-trial period 1.55 1.45 1.35 Fuel Consumption km/litre 1.25 1.15 1.05 Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- 02 02 02 02 02 02 02 02 02 03 03 03 03 Additised Group Unadditised Group

Has Envirox worked? • Yes, it has proved its value in conventional diesel engines (up to 14% improvement in fuel consumption and reduced particle emissions) and turbodiesels. • But, it is not effective in high sulfur content fuels (surely sulphur should be eliminated before point-of-sale?) • It may yet find other applications as an “in situ” combustion catalyst

Optisol TM® • The “driver” for this product was the evidence that most “transparent” sunscreens in the 1990s posed a health hazard. • Nanoparticles of titania are used so that they appear transparent to visible light on the skin, but block UV • The titania is doped in a special way so that it does not behave as a photocatalyst (that would cause skin damage) • The new titania particles prevent the formation of “free radicals” and hence the formulation lasts much longer in sunlight and protects the skin.

Other thoughts to improve sunscreens (1999-2000) • Could we convert uv light to visible? ZnO could be used as a “convertor” • Was the idea of using TiO2 doped to make it p-type a general solution? • Could this be used to make other uv protective layers in the paint and plastics industries?

e- UV light Schematic band structure 3+ E h+ Conduction Band Mn2+ Mn3+ level 150nm Valence Band k Surface Mn2+ free radical scavenging Mn2+ Mn3+ + e- Mn2+ + OH  Mn3+ + OH- Mn3+ + O2  Mn2+ + O2 Rutile P42/mnm Titanium Oxide lattice Titania sunscreen nanoparticles

New doped titania products • Enhanced performance for many other cosmetic foundation formulations • Possible use as a uv protective agent in coatings and polymers: “Solacor”®

Doped Titania for UV protection Sunscreen/cosmetics Paints/coatings Polymer additive Establish materials supplier, probably different for each application Formulate and sell direct Partner with established company Retains control and value, but requires investment in sales/distribution Saves investment, makes use of sales/distribution, but could lose “value”

Oxonica, new lessons! • Make use of core technology to provide solutions • Provide solutions where there is a market need • Early revenue generation is essential • Balance the team, remember sales/marketing, but keep a strong technical base • Collaborate with universities • Form strategic alliances to speed time-to-market and reduce costs

Overall ConclusionsHow can we speed up Innovation? • Never “push technology” but look for market-led solution provision • Develop a balanced team, especially help with sales/marketing, but do not neglect the technical team • Try to shorten the time from invention to revenue generation by partnerships • Treat investors’ money as your own and respect their risk and confidence

So how do we decide on the optimum route? • License deal? This has advantages for a swift form of revenue generation, but it needs careful choice and decisions about exclusivity • Spin-off company? Probably the best option for very novel and disruptive technology. • Form partnerships? Need to have good reasons: access to markets could be quicker; access to scaled-up manufacturing…..

Regulation and Safety • There are concerns about safety of nanoparticles “the new asbestos?” • There are responsible programmes to investigate these issues, eg: NANOSAFE2, DEFRA, ….. • Funding is probably inadequate, and SMEs have substantial burden if they mount a programme. (Oxonica has done a lot of testing and been involved in most of the safety groups) • There are important implications for founders of companies using “nano”, and in any case, a medical application will have to comply with FDA regulations (used as the “gold standard” by many countries)

Part-time Online • Postgraduate Certificate in Nanotechnology • comprising three modules: • The Wider Context of Nanotechnology • for professionals from any background who wish to understand the issues surrounding the uses of nanotechnology • The Fundamental Science of Nanotechnology • a more in-depth exploration of the science of nanotechnology • Fundamental Nanoscale Characterization • providing a detailed survey of characterization techniques for nanoscale materials • For further details contact: nano@conted.ox.ac.uk

What is Innovation?