Agenda

1. Birkeland Innovation ASTechnology Transfer Office at the University of OsloFrom idea to businessKatrine Rese Shadidi SFE, 02.09.08

2. Agenda Lesson 1 • Project development in Birkeland - Evaluation process and IPR • Project development • License or business establishment Lesson 2 * Two projects - from idea to commercialization

3. What is research based innovation? To create a product or a service that covers a market need and makes a profit. To create value from research

4. DOFI-evaluation Novelty search Inventors agreement Rejection ”Dead horse” Rejection 4 mnd No No DOFI Registration Team meeting Team meeting Idea generation meeting DOFI-meeting with resercher Yes Yes DOFI Evaluation Yes Receipt for DOFI Meeting minute with decition Accept 4 mnd

5. Project/Commercialization fase Rejection License agreement Continnuing evaluation of costs and developent No Licensing Project development Team meeting with reports to Birkeland leaders Yes Pressure tank Birkeland Leaders Business establishment Business establishment Stiftelses-dokumenter Busines plan light with finance Decition document mith meeting minutes Project development agreement Business plan Aksjonæravtale

6. The evaluation process and IPR

7. Oppfinneravtale DOFI registrering Teamleder utnevner PL DOFI-møte m/forsker DOFI Vurdering Kvittering for Mottatt DOFI The initial evaluation The scientist deliver a written disclosure of invention (DOFI) Birkeland gives a receipt to the inventor with copy to the leader of the institute. A meeting is set up with the inventor(s) and a project leader in Birkeland to get a full knowledge of the technology. Internal review of the commercial possibilities for the invention (is it possible to patent the technology, is there a market willing to pay?)

8. Forunder- søkelse Avslagsbrev 4 mnd Nei Styringsgruppe møte Idédugnad m/forsker og tverrfaglig gruppe Ja Ja Aksept 4 mnd Project evaluation An idea brainstorming with the inventor and a group at Birkeland can be held to brainstorm on different product and market possibilities for the technology. A market survey is done to confirm market possibilities Decision on whether Birekeland accepts the project is normally reached within 6-10 weeks. With a close dialogue a decision can be reached faster if needed!

9. Criterias for obtaining a patent • Novelty (nyhet) • Inventive step (oppfinnelseshøyde/non-obvious) • Industrial applicable • Reproducible and sufficiently disclosed

10. Novelty- and FTO analysis • Novelty search is done mainly by searching in patent databases for similar technologies and through publication databases. Search engines like google can also be useful. • FTO (freedom to operate) analysis is done to assess whether a technology, although new and patentable, will be dependent on a license from a patented background technology.

11. Market analysis • The market needs to be identified early. • With several possible markets one or a few is chosen as the first market to enter. • The customers must be identified. This is often not the end user. • The market size and the profitability of the market must be assessed. (what is a reasonable market share for your product?) • A strategy to enter the market is crucial.

12. How can we assess a developed market • Business intelligence reports on specific markets often give in depth insights on developed markets. • Interest organizations often give good numbers on prevalence in disease cases, or how widely distributed a technology is. • Interviews of potential users gives you a hunch of how your product will be perceived in the market.

13. Tools for Market assessment • Business intelligence reports are available trough websites like “Frost and Sullivan” and Business Insight”. They come at a prize, but for a business like Birkeland it is a necessary investment. • Every project require that the project leader dives into the market and analyze the internet on interest organizations and the willingness to pay in potential markets. All companies that operate in the field are identified. Google is frequently used.

14. Tools for Market assesment cont. • Companies that do business in the field of interest are analyzed for profitability. In the case of a license technology the business development department in companies of interest are contacted. • The initial contact is often done early on. Even before we decide to take the project in or do a patent application.

15. How can we assess an non-develped marked • In cases where a technology is opening a new market, the market assessment is made much more difficult • You have to make assumptions. • Can your emerging market be compared to an existing market? • Will it take over an existing market? • Will it expand an existing market in a measurable way? * Find out what you can about comparable markets.

16. Project development

17. Continnuing Project development Pressure tank Business plan light with finance Project development agreement Project development Identify necessary technology development to establish proof of concept Develop patent examples Identify industrial partners and understand their needs and strategies Develop the project to meet industrial priorities. Develop a business plan Continnuing evaluation of costs and developent

18. Proof of concept • An invention is very often disclosed to Birkeland when it is still just an idea, before it has been developed into a technology. • To patent a technology you need to have some proof that it works and has the effect you anticipate. You also need to demonstrate the function of the technology in each setting you want to claim its use. • A drug that you want to patent for use in different diseases must be shown to function an all the diseases claimed. • If you want to patent a new class of chemicals you need to show that a big selection of chemicals in this particular class has similar effects in the matter.

19. Proof of concept cont. • To license a technology you need to convince a licensee that this is a technology that can solve certain problems that the licensee is interested in. • To develop a company based on a technology you need to convince the customer that your technology solves a certain problem the customer is interested in better than the competitors

20. How to identify industrial partners and their needs - License • Study the product portfolio of potential partners. • Find their annual review • Find economical data • Find information about their strategy, in what direction do they want to develop their portfolio, what markets are they prioritizing? • Have they been through mergers or acquisitions recently? A lot of data is released in public in such incidences. • Contact the potential partners early, find out if they could be interested in a technology that solves a certain problem. Try to contact the right person in the firm. Black box your technology.

21. How to identify industrial partners and their needs – Business • Is your business goal to become an attractive acquisition candidate or to become a self sustained company? • Find out what you can about potential partners as you do in a licensing case, especially their values, financial situation and strategies. • Develop your business so that it fits a need for your potential partner(s). • How is the market you are entering regulated? In many cases there are bottlenecks where you need strategic partners.

22. Ground philosophy Bring the real actors in the innovation process together; The scientist the entrepeneur and the investor Entrepreneur (Eyde) Science & Technology (Birkeland) Finance Industry (Wallenberg) Market opportunity

23. License or business establishment

24. There are two core types of innovationClayton Christensen, 2000 Disruptive innovations • Redefines value proposition • They under perform established products in mainstream markets • Products based on disruptive technologies are typically cheaper, simpler, smaller and frequently more convenient to use • Entrants nearly always win Sustaining innovation • Incremental improvements • Improve the performance of established products • Existing players • Better products for bigger profits • Incumbents nearly always win

25. There are two core types of innovationClayton Christensen, 2000 Disruptive innovations • Redefines value proposition • They under perform established products in mainstream markets • Products based on disruptive technologies are typically cheaper, simpler, smaller and frequently more convenient to use • Entrants nearly always win Sustaining innovation • Incremental improvements • Improve the performance of established products • Existing players • Better products for bigger profits • Incumbents nearly always win Start-up company strategy Licensing strategy to existing industry

26. Lisensavtale Lisensiering Bedrifts- etablering Etablering Stiftelses-dokumenter Forretningsplan Licensing • Negotiations of a license agreement with a business partner. • Many negotiables can be in focus of the agreement including, but not limited to: • Up front fee • Royalty • Minimum royalty • Know how • Development • Field of use • Exclusivity/non exclusivity • Patent follow up • Length of the agreement • etc

27. Business establishment • The making of a good business plan is the first important thing to be done when starting a business. • Birkeland often arrange a ”pressure tank” which is an intensive meeting lasting 2-4 full days and nights away from the office with different resource people where the frame of the business plan is made. People attending this meeting are people with business, technology and finance background to be able to cover all the issues of a business plan.

28. A business plan usually covers • The business goal - What do you aspire the company to become? • The business model - How will you reach the business goal? • Defining the product of the business - Sometimes the technology makes several products possible. Which one(s) will you seek to develop • Defining critical success factors - What has to be in place in order to reach your business goal in terms of finance, regulatory hurdles, people, other issues that can go wrong?

29. A business plan usually covers cont. • Defining the customers - These are often not the end user of the product. Do you want to sell to other businesses? • Defining the market - Where and in what contexts will your product/technology be used? • Defining how to enter the market - Which type of customers will you go for first? • Identifying competitors and partners - Know the landscape of the market you are entering. Does some of the potential partners have the ability to acquire your company, do you want that? • Sets a financial plan • Defines how the organization shall be built up and what kind of organization shall be raised

30. Business establishment procedure • Founding convention, The following documents must be in place: • Founding documents (from Justice dep.) Sign. founders • register of share holders, share register • articles of association • Share holders‘ agreement • Norwegian registration form for private company (Brønnøysundreg.) Sign. steering members • Account number in the name of the company • Payment of share capital • Approval/signature from accountant

31. An invention is not necessarily an innovation • An invention shall describe a process or a product that has not been describes before and is not obvious • But an invention is not necessarily an innovation • An innovation is an invention with a market that creates revenue.

32. Contact information Katrine Rese Shadidi Tlf. 22840075 - 95831279 E mail: k.r.shadidi@birkeland.uio.no www.birkelandinnovation.no