HI-TECH and Business Solutions

HI-TECH and Business Solutions By: Haim V. Levy

The main objectives of the seminar were to introduce and discuss with the participants basic issues related to the formation and management of early-stage technology-based innovation.

Innovation is generally defined as the application of technical, market, or business-model ingenuity to create a new or improved product, process, or service that is successfully introduced into the market. The definition of an innovation in fact requires successful entry to market.

In this seminar, we have referred mainly to technology–based

innovation.

The innovation process generally begins with the identification of a need or requirement.

In addition, new inventions may eventually develop into products through a successful innovation process. The innovation process may be divided into three main stages: generating ideas, the implementation of the viable idea and [production] marketing.

Scientific or technology-based innovations originates from basic research and prototype development, followed by the demonstration, by way of proof of principle or concept, of a technical device or process believed to have a commercial value. This is followed by further R&D and engineering aimed at demonstrating feasibility or the development of a working prototype and pilot application. Eventually, following appropriate testing or clinical trials, as it may be, obtaining the necessary approval to commence production and marketing.

Successful technology-based innovation process depends, among others, on the extent of novelty in the science or technology being used in the product, where technical risk is greater than market risk. Obviously, the most revolutionary technology-based innovations are often accompanied by unique potential for new markets to be created, thus introducing high levels of both market and technical risks.

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Basic research and scientific developments are made at universities and research institutes. The intellectual property (IP) pertaining to any inventions made belongs to the institutions. The development of innovative products based on such inventions requires the transfer of the technology and know-how to the entrepreneurial entity. We are aware that technology transfer activities in Poland are in there embryonic stage. Therefore, we have elaborated on this matter and offered a modus operandi based on the experience in Israel. To this end, it was emphasized that the technology transfer office or company (TTO) should, among others, actively scout new applicable projects in campus, seek intellectual property protection and act to introduce such new projects to relevant commercial entities worldwide.

The most common cooperation with international

commercial entities is through licensing the right to use the inventions in return for royalties. To encourage the collaboration with and as an incentive to the scientists we propose to share with them the royalties received.

In certain cases, when applicable,

inventions may be developed within the framework of a early-stage technology-based venture (spin-off start-up). To this end, it is advisable to establish collaborations with local technological incubators.

We have pointed out that the TTO should seek endorsement and cooperation by the university executive management. In this respect, both parties should seek finance for IP worldwide protection, which is vital for the commercialization of the inventions.

______

We have discussed general aspects of innovation management. In particular, we have related to the early stage of technology-based innovation – The Project� - which does not exist unless it has a strong entrepreneurial team. Technologist would know what is scientifically novel and what is technically feasible in the proposed intention.

The

manager (which, in many cases, is not the technologist) would know about the process of bringing new products to market, but may have to trust the technologist when it comes to technical particulars of the project in question. What the manager is generally putting at Page 2 of 3

risk is other people’s money. The investor is deeply invested in producing a profitable return on investment, independent of the technology or market through which it is realized. The less the technologist and manager trust one another the less they can communicate effectively. ________ Sources of financing: Research funds are available (typically from government agencies) to support the creation of the idea and the initial demonstration that it works. Investment funds are required to turn an idea into a market-ready prototype. In between, there are few sources of funding available to bridge this gap in funding sources. They include angel investors, venture capital firms specialized in early-stage or seed investments and government and EU programs specifically designed for the purpose.

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