Eugene Buff

UsTech TM (устехTM ) Discovery LLC
TECHNOLOGY DISCOVERY & COMMERCIALIZATION COMPANY
Dr. Eugene Buff
Make Deals & Build Up Businesses
2 МОЛГМИ, МБФ, Биохимия
к.б.н., Институт Биологии Гена, РАН
Postdoc, Harvard Medical School
Since 1999 – technology transfer, business development
consultant
Founder & President, Primary Care Innovation Consulting
Co-Founder, UsTech Discovery LLC
Make Deals & Build Up Businesses
Technology – the totality of the means employed to provide
objects necessary for human sustenance and comfort.
Webster’s
… - the application of scientific knowledge to the practical aims
of human life or, as it is sometimes phrased, to the change and
manipulation of the human environment.
Encyclopædia Britannica
Technology Transfer Effectiveness is the degree to which
research-based information is moved successfully from one
Individual or organization to another.
Journal of the AUTM, Volume XII, 2000
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Product Development Timeline
1. Could we be more efficient?
2. Could we move faster?
3. Could we save (spend less!) money?
10+ Years
Up to
$100MM
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UNIVERSITY
Knowledge for
Knowledge’s Sake
INDUSTRY
Management of
Knowledge for
Profit
Teaching
Research
Service
Profits
Commercialization
of New and Useful
Technologies
R&D
Development
Confidentiality
Limited Public Disclosure
Source: Louis P. Berneman, 1999
Marketing. Why it is important?

All inventions/innovations are ‘genius’…
Technical people/ inventors can’t talk about
them objectively.
Я (имя)…, изобретатель, г. N-cк.
У меня есть изобретение «…». Патент RU №1234567. Аналогов в мире нет.
Это лучшее изобретение 21 века в области механики. Моя технология вытеснит с
рынка все ныне используемые технологии, как двигатель внутреннего сгорания
вытеснил с рынка паровой двигатель….
Сейчас в мире нет пионерных изобретателей в области механики. Я один. К тому
же нет настоящих экспертов. Армия дипломированных специалистов,
называемых экспертами, на практике только для отчётности. Помните о роли
личности в истории. Через несколько лет меня признает Америка, а за ней
другие страны лучшим изобретателем 21 века. Мне присвоят разные премии и
награды, но у меня не будет прав на мои изобретения. Премии и награды это
ничто по сравнению с правами на изобретение.
Россия будет внедрять мою технологию самой последней…
Если мне в США предоставят Конструкторское Бюро и Экспериментальную Базу,
то через год я предоставлю для США Эффективную систему ... Я допускаю, что
переоцениваю свои способности. Время покажет.
Make Deals & Build Up Businesses
Marketing. Why it is important? (2)

Great innovations could fail:
◦ microwave oven – first in 1947 (Raytheon)
◦ PDA – first in 1992
(Newton by Apple)
Good, Patentable Science is Not Always Commercially Relevant
Lack of Market is a Deal-killer
Marketing Needs to Communicate Value
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Not Only Marketing.
Who is this man?
Kane Kramer
Not only Marketing. Be on time.
Marketing. Why it is important? (3)
Blind Spot Story
First time played back at the
Lawrence Berkeley National
Laboratory in 2008
Steven Johnson, How We Got to Now.
What’s Needed to “Sell”?
Successful
project
People
• A technology champion
• Prior business analyses from a
business and/or technology team
• Scientists to give industry
presentations
• Technical publications supporting the
concept
Market
• A business proposition that meets a market
need
• Strong technology - market match
• Competitive advantage over alternative
technologies
• Technology in use: “Proven value”
• Large, growing markets for licensable uses
Technology
• Identifiable assets - patents, trade secrets, know how
• Proof of concept - reduction to practice, prototypes
• Identifiable applications within the scope of our rights
Make Deals & Build Up Businesses
Before starting ...
 Commercialization
is a game of
“what does he need” vs of
“what have I got”!
Formula for Success




W – what – understand your technology
W – why – what is the value proposition, why
would anybody care…
W – where – “where” are the companies who
care are – markets, applications, value chain
H – how – reaching out and delivering the
three “W” message
Make Deals & Build Up Businesses
Technology Classification
-
Product
Process
Systematic (sends, processes,
records, or receives data)
Physical Technology – material objects.
Biological – adapts to living things.
Core
Strategic
Enabling
Time
A Technology = A Product
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
Three key dimensions:
◦ Value proposition
? How does this technology outperforms current best-in-class?
? What are the key markets?
◦ Development status / transferability
? What was the highest stage of development?
? Can you support the transfer with samples? Data? People?
Complete
R&D
◦ Intellectual Property
Design
Product
Production
Engineer
Produce
Market
and Sell
Distribute
? How broad, defensible, and detectable are the patent rights?
? What are the existing licenses / encumbrances?
Support
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Target’s Perspective
COMPANIES’ UNMET NEEDS
Missing feature / performance
issue / legislation change
Improve an existing product
Improve price
Reduce cost / identify
manufacturing efficiencies
Step function change in
performance
Monitor next generation
technology curves
Wholly unmet need
Expand into new “white space”
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Deal Preferences
Control over
Knowledge
and
Know-How
Sales, OEM
Application/geography
specific licensing
How well
Technology
is Defined
Buy all Rights,
Venture
Acquire Developer
Capital Exclusive
General License
Joint Venture
Exclusive Limited
License. R&D agreement,
Strategic Alliance
Non-Exclusive
License
Control over Use
Venture
Collaborative R&D,
Strategic Alliance
Option or
license (IP)
How well Application is Defined
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Formula for Success
80% presentation & 20% information
Be prepared.
Energy.
Connection.
Rehearse.
Timing.
Clarity.
When Selling a Technology
Communication Styles
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
Choose the right technologies (value proposition!)

Well-constructed target list – multiple buyers

Contact with the right decision makers – don’t get
stuck

Well-supported technical evaluation

Market-based (and reasonable!) expectations
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Moving Through Stages of
Technology Development
Timeline of an Idea
Idea Without a Use
Need help with transition
Idea With Intent (Business Plan)
Commercial Product/Service
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
1960-1980 Some patent licensing in US and UK universities; not
widespread

1980: Bayh-Dole Act in US begins acceleration of tech transfer, and
competence builds in tech transfer offices



Early 1990’s: Many US universities acquire competence; emphasis
on spinouts begin; UK government begins increased emphasis on
technology transfer, particularly spinouts
Late 1990’s: Japan and Taiwan pass “Bayh-Dole-like” Acts.
Singapore, Hong Kong, Germany, Finland, Brazil, China, South
Africa, and many other countries begin or strengthen their systems
for technology transfer from their universities and research
institutes.
2000-2003: Interest in technology transfer is global. Countries look
to technologies developed at their universities for economic
development in the “Knowledge Economy”
Royalties And License Fees Exports
How to put other countries
on this map?
Only 18 (out of 200) territories are net exporters of license fees and royalties.
This means that a few people living in less than a tenth of the territories in
the world between them receive the US$30 billion of net export earnings for these services.
http://www.sasi.group.shef.ac.uk/worldmapper/display.php?selected=99
Make Deals & Build Up Businesses
- Actively build cross-cultural relationships
- Get outside their comfort zones
- Embrace diversity and explore its
potential
- Act ourselves towards relatedness
- Persistence

Too many meetings/competitions/’mentors’… with
the very same participants.
◦ Low return and low practical value. Very little ‘tangible’
results for the participants



Too many IT and software projects.
◦ Understand the logic (quicker returns & low budget) but:
long term/high value projects are overlooked, underfunded.
Too focused on money (i.e. investment) versus
bigger picture – how to grow the business
(partnerships, collaborations, strategic investments,
etc.)
Too focused on ‘sell’, not enough ‘buy’


License medical technologies from
international companies or developers
Manufacture and sell in RF
To do list:
- Raise initial funds for licensing.
- Access/prepare manufacturing capabilities
- Find & negotiate licenses.




“In theory, there is no difference between theory
and practice. In practice there is.” Yogi Berra.
"Organizations, like teenagers, are blind to their
choices…” Chip & Dan Heath. Decisive.
“Do not teach me how to live, better help me
financially.” I. Ilf & E. Petrov. 12 Chairs.
“The probability does not work in real world; it is
pay off that matters.” Nassim Taleb. Antifragility.
Now what?
 Feel free to connect and ask questions:
 LinkedIn, http://www.linkedin.com/in/eugenebuff
 Facebook, http://www.facebook.com/eugene.buff
 Next Presentation/Education/Mentoring:
? deep dive into the topics;
? available to speak at conferences, seminars
 Consulting Services:
o
o
o
o
o
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mentoring on executive summaries & presentations
market assessment
strategy advisement
commercialization assistance
open innovation – training and implementation
technology scouting
Make Deals & Build Up Businesses
Eugene Buff, MD, PhD
Certified Licensing Professional (CLPTM)
Registered Technology Transfer Professional (RTTP)
Founder & President ~ Primary Care Innovation Consulting
Co-Founder, Principal ~ UsTech Discovery LLC
E-mail: [email protected]
Skype: eugenebuff
Make Deals & Build Up Businesses