Researchbased innovation Overview Researchbased innovation and Disruptive technologies

Research-based innovation

Overview • • Research-based innovation and Disruptive technologies Commercialization of research-based innovation – – – • • Sales integrated with development R&D funding – – – • • Process Organization Initial funding Patents Sell your prototypes! National innovation capital National R&D capital European research framework programs US-based research funding Venture capital Use-case 1: Birdstep Technology Use-case 2: Nunatak AS and how we work to commercialize researchbased innovation

Research-based innovation should look for Disruptive technologies • Research looks ahead – easier to identify a technology shift • Significant time/technology advantage is needed to establish new markets with new technology • Research-based innovation is not traditional academic research – – – New skills are required (sales, marketing, VC, . . . ) Patenting before publication sometimes with IPR sharing Prototyping Product packaging Companies as the nucleus for innovation and research • Examples of Distruptive technologies in the ICT sector: – – – – Hyper. Text Transfer Protocol (web) Peer-to-peer technology (e. g. Napster. . . ) IP as Telecom core technology WLAN and other unlicenced radio technologies Mobility Security Open Standards (e. g IETF, Java, . . . ) Open Source (e. g. Linux)

Business idea development Classical error 1 – Too high focus on own technology / ideas – forget customer requirements and needs 1. Select area 2. Study the customers 3. How to create value for the customer 4. Constrain the market / get focus 5. Understand competition 6. Business plan

Business idea requirements Start with comparative intellectual and product advantage E. g. Business, market or technology knowledge Spend time understanding the customers and their business Establishment and understanding of comparative advantages Studies Work experience Prototypes => Ideas Meet potential customers Demo Targeted seminars Undersand customer business process ÞUnderstanding of value for customer, your ”Value Proposition” Better performance Lower cost Simpler Own IPR => Good understanding of your position

What is a good business idea? • A new technology is not a business idea • The word “business idea” contains nothing about technology or product. • An idea about a business, a market • Example: – To deliver a better method for securing data to customers that need security, and agrees that the new method gives a substantial improvement to same cost without replacing existing infrastructure is a business idea.

Process for realizing business idea Classical error 2 Spend all resources to raise funding Clasiscal error 3 IPR not protected Classical error 4 – Wait for the breakthrough 1. 2. 3. 4. 5. 6. 7. 8. 9. Business plan Financing Focused development IPR protection Sale of prototype Improvements Sell projects with product Improve product Sell standard product

The startup enterprise as foundation for research based innovation Resources: University education IPR ownership, supporting R&D, Knowledge ”production”, students Financing Supporting Research Competition analysis Idea Patent The startup enterprise as tool for research-based innovation Product packaging First sales Prototype Markedsføring Market studies Patent Improvements National R&D funding National Startup Funding Repeated sales Products and Revenue Projects Commercialization EU R&D funding Partners Customer installation

Startup funding environment National Startup capital SND IFU/OFU, Etablererstipend, oppfinnerstipend, Skatte. FUNN, etc. Startup company Customer e. g. 4 G operator R&D University Partners National Research funding Competitors End users Partners Venture Capital EU Competitors R&D units Dissemination Journals, Conferences

Startup funding environment National Startup capital SND IFU/OFU, Etablererstipend, Skatte. FUNN, etc. Startup company Cost Squeeze + R&D support - Low income potential R&D Customer - IPR sharing e. g. 4 G operator + Capital + International network - Anti-dillution clauses - Venture Options - Controlling position Capital + Supporting research - No income University - IPR sharing National Research + Supporting research funding + International network Comp-etitors Admin R&D overhead units EU - IPR sharing Partners End users Partners Competitors R&D units Dissemination Journals, Conferences

The long run to steady state Startup euphoria Customer see sufficient demand for the solution, places volume order Sales cycle is longer than expected Motivation Solution approved, customer delays purchase First contract Expensive sales Challenge ”Industry Angels” ”Friends&Family” or national startup capital Year 1 Venture Capital Round 1 Year 2 Venture Capital Round 2 Year 3 Time

The entrepreneur should be in focus • Many actors would like control and influence national startup capital – – – • • Critical check: Is the entrepreneur commercially oriented? Protect and support the entrepreneur – – – – • Research parks (Real Estate, FORNY, SIVA) Universities (base funding, NFR, EU) Venture Capitalists (EFFEKT, Argentum, . . . ) Research institutions (NFR, EU, consultant business) Existing industries (Existing cashflow, Skatte. FUNN, . . ) Political goals (e. g. Skatte. FUNN to reach OECD targets) Knowledge (Entrepreneurship as an academic study) Grants (e. g. Commercial post-doc grant) IPR (patents, designs, source code, prototypes, documentation) Startup services (office, administration, legal, etc) Supporting research from University and R&D institutions National startup funding projects National and EU research funding Use people in the network as advisors, but never attach people that also control the national startup funding, to avoid double loyalties Commercial focus from day one: – Sell your own services and products – Sell your prototypes – Commercialization competency within the company, cannot be outsourced!