Technology Transfer in the UK The University of Oxford Model

1. Technology Transfer in the UKThe University of Oxford Model Steve Cleverley PhD MBA Managing Consultant Isis Enterprise, Isis Innovation Ltd

2. Overview • Introduction to Isis Innovation & technology transfer at the University of Oxford • Technology Commercialization • Supporting Technology Transfer outside of Oxford • Conclusions

3. Isis Innovation Ltd A profitable company 100% owned by the University of Oxford Oxford Technology TransferIP, Patents, Licences, Spin-outs, Material Sales, Outcome Questionnaires, Seed Funds, Isis Angels Network Oxford ExpertiseConsulting, Services Isis Consulting Business Technology Transfer and Innovation Management

4. Oxford University & Isis Innovation Ltd Oxford University is the oldest university in the English-speaking world (founded c.1188), and a leader in learning, teaching and research Today - Most Powerful UK Research University Research Fortnight, December 2008 Research Assessment Exercise Highest University Research Spend in UK £486 million (2009/2010) Isis Innovation Ltd is a company 100% owned by the University of Oxford, established in 1987 Isis helps researchers who wish to commercialise the results of their research A world-class Technology Innovation business Isis 9th highest British filer of PCT patent applicant (WIPO Data, 2010) Highest European University PCT applicant (WIPO Data, 2010) Christ Church, Oxford Ewert House, Oxford

5. University of Oxford:Research Themes

6. Resources to Support Commercialisation UNIVERSITY CONGREGATION UNIVERSITY COUNCIL Four Academic Divisions Intellectual Property Advisory Group Maths, Physical & Life Sciences Division Social Sciences Division Medical Sciences Division Humanities Division Administration Oxford Entrepreneurs Student Society Centre for Entrepreneurship & Innovation Begbroke Science Park Research Services Isis Innovation Limited

7. Isis Return on Investment to the University • University Investment in Isis for Protecting Oxford IP • Financial Returns • Distributions back to University • Research Funding from spin-outs to University • Spin-outs Cash • Spin-outs Value • Oxford University Challenge Seed Fund • New Patents • Other, non-financial, benefits to the University • Transferring technologies to improve lives • Promoting good news stories from University • Contributing to the ‘Impact’ of the University • University staff recruitment & retention • Managing Oxford Innovation Society

8. Oxford Research Funding 2009-2010 £486million • Highest University Research Spend in UK • 4,700 researchers and 8,700 postgraduate students • R & D Spend by UK Companies, Oxford would be ranked 9th 2009 EU Industrial R&D Investment Scoreboard • Most Powerful UK Research University - 2008 Research Assessment Exercise Research Fortnight UK Govt/NHS £38m – 10% UK Charity £113m – 31% EU Govt £24m – 7% Total £367m+ HEFCE £119m UK & Overseas Industry £39m – 11% Research Councils £113m – 31% Other UK & Overseas Sources £40m – 11%

9. Isis Innovation Staff Oxford University Consulting (6) Head of Group Andrew Goff Project Managers Susan Clark Gurinder Punn Dr Josef Walker Administrators Kerry Antcliffe Katie Bromfield Managing Director Tom Hockaday Administration (13) Business Support Marketing Simon Gray Barney Cullum Renate Krelle Dr Fiona Story Dr Lianne Leith Accounts Gemma Allnutt Legal Paresh Jasani Central Administration Office Manager Jenny Bailey Systems Administrator Nelson Sa HR Alex Allan Viv Parry Facilities Jane Tarry Reception Isabel Lavis Technology Transfer Group (34) Head of Group Linda Naylor Technology Transfer Teams Evert Geurtsen Roy Azoulay Dr Manjari Chandran-Ramesh Chim Chu Dr David Churchman Dr Jamie Ferguson Dr Andy Robertson Brendan Spillane Dr Paul Ashley Dr Angela CalvertDr Matthew Carpenter Dr Sarah Deakin Andy Self Dr Weng Sie Wong Seed Investment Manager Andrea Alunni Operations Manager Dr Mairi Gibbs Administrator Jan Newell Technology Transfer Teams Dr Susan Gale Dr Ruth Barrett Dr Nikolaos Chalkias Dr Alex Marshall Dr Brijesh Roy Dr Natasha Tian Dr Rakesh Roshan Dr Jon Carr Dr Mark Gostock Dr Martin Procter Dr Bharti Ranavaya Dr Christine WhyteDr Carolyn Porter Patent & Licence Admin Manager Steven Bayliss Post-Deal Admin Kate Spanchak Patent Administrator Zuzana Weberova Isis Enterprise (20) Head of Group Dr David Baghurst (Asia) Steve Lee (UK) Consultants Ya-hsin Shen (HK) Terry Pollard Kenji Aiba (Japan) Dr Chris MoodyRobert Swerdlow Dr Costas ChryssouDr Roger Welch Dr Giles KimminauGaurav MisraDr Wenming Ji Dr Steve CleverleyDr Sarah Macnaughton Elena AndonovaDr Viraj Perera Dr Stuart Wilkinson Eva Baltar (Spain) Administrators Shelagh Harrison Kristina Gren Staff: 74 PhD’s: 37 MBA’s: 18

10. Acting as Multi-dimensional Intermediaries Investor axis £ -> £££ 3D – Spin-out Academic axis £ -> Research 2D – Licence, Consulting Commercial axis Research -> £

11. International Intermediaries

12. Intellectual Property Policy (from October 2000) • University claims ownership of all employees’ and students’ IP rights resulting from University research activities • The University assists those researchers who wish to commercialise their research • by patenting, licences, spinout companies & consultancy • Researchers share the benefits • Royalty shares from licences • Equity in spinout companies • Income from personal consultancy

13. Transfer of Intellectual Property Assignment of intellectual property rights Outside the University Inside the University Researchfundingsource Route to market Spin-outs Government Research Services Includes: IP Rights Management Team 70 Staff 85% Graduates 33% Post grad degrees Isis Innovation 70 staff 75% Graduates 50% Science doctorates Consulting Charities Licences Industry

14. Isis Innovation2000-2011

15. The Technology Transfer Process Spinout Post Deal Identify Protect Market License Translate Planning Fundraising The Team Billing Distribution Re-negotiation Valuation Negotiation Legalise Internalmarketing Ownership Evaluation Patenting Patent strategy Protection Proof of concept Development Endorsement Overview Customertargets Promotion • Supports technology transfer from initial invention disclosure through to commercialization and post-deal support • Understanding of both the technology and the commercial market is crucial to success

17. Bridging the Funding Gap Oxford University Challenge Seed Fund Launched with £4m in 1999 University provided £1m; HM Treasury, Wellcome, Gatsby £3m £5.7m invested in 102 projects – development, seed equity Resulting in Equity stakes in 31 spin-outs, 4 completed licensing deals & 33 active technology projects. These 31 spin-outs have attracted £80m seed/venture investment Isis Angels Network Business Angels, Seed/Venture Capital 100 members Events, No Charges Oxford Invention Fund Donations to the University of Oxford as part of Oxford Thinking, the University’s overall fund raising Campaign Invest in development of new technologies and innovation from Oxford

18. From IP to Marketing Strategy • Market Analysis to identify opportunities for technology • Field of use • Exclusivity • Strength and breadth of patent • Geographic limitations • One market or multiple markets? • Single technology or bundle of technologies? What is the best route to market? License (to an established company) Spin out(form a new company)

19. Technology Licensing • Licensing out of University of Oxford Intellectual Property Rights • Isis currently manages 1,320 Patents & Patent Applications; and 330 active licensing deals • Technologies marketed to Oxford Innovation Society Members and then other companies • License partners selected on • Resources and intent to develop technology to market • In healthcare, awareness of access of final products to developing countries • Royalties • Patent budget £2.5m per annum & royalties • Isis pays patent costs & recovers these from royalties Total net Researchers University Department Isis revenue personally General Fund Funds Innovation to £72k 60% 10%* 0% 30% to £720k 31.5% 21% 17.5% 30% over £720k 15.75% 28% 26.25% 30% * pays National Insurance employment tax

20. Oxford Spin-outs(post 2000) Total external investment to date in 62 spin-outs since 2000: £326m £41m 1st round Seed/Business Angels – average amount invested £850k; 1/3rd > £1m invested. £285m follow-on Venture/Institution Capital * stock exchange listing

21. Oxford University Consulting Helping academics identify and manage consulting opportunities. Supporting Departments in arranging external services (including consultancy) work. Providing external organizations with access to University expertise & resources.

22. Begbroke Science Park • Spin-outs on site: • Prolysis/Biota Europe • Oxford Gene Technology • Oxonica • Oxford Advanced Surfaces • Oxford Biodynamics • Particle Therapeutics University Departments of Engineering Science & Materials Centre for Innovation & Enterprise • Owned & operated by Oxford University, 5 miles north from the city centre • University research labs; • University Supercomputer operated by e-research centre • Business incubator & premises for new companies • Central meeting room and café

23. Oxford & Entrepreneurship • Oxford Centre for Entrepreneurship & Innovation • Within the Saïd Business School • Development of the Oxford Science Enterprise Centre, est. 2000 • Brings together innovators from across the world, as well as the high-tech companies based around Oxford • Building a Business, • The SBS Venture Fund • Oxford Entrepreneurs – Student Society • ‘Idea Idol’ competition • Ideas to Market • Changemaker speaker series • Enterprising Women speaker series • Emerging Markets speaker series

24. Culture Change & Making Connections University technology transfer resource University entrepreneur culture Business & professional environment • Universities and Businesses are very different; a university is not meant to be like a company, nor a company designed to be like a university; remembering this helps when trying to bring them together • The ideas are in the University; if University provides strong TT resource, the cultures can be connected and ideas transferred • If the University doesn’t lead, the University may not receive its share of the benefits • Technology is a cost; you don’t make money out of technology; you make money out of a business that successfully commercialises technology

25. Layers in the Innovation Ecosystem Innovative companies, investors, entrepreneurs, University People – Researchers, TTO, Administrators Professional advisers – patent attorneys, lawyers, accountants, banks, commercial property managers, pr, head-hunters, consultants, students, journalists Other universities

26. Isis Enterprise We link technology providers with technology seekers Often with support from governments, research funders etc. Maturity ideas products companies TRL 1 2 3 4 5 6 7 8 9 10

27. Technology Transfer Partnerships ...building on client’s existing capabilities …maximising the potential of commercialisation pipelines Aston University Liverpool University Oxford Brookes University Keele University NERC Leadership or Supportive approaches

28. Technology Transfer Training • We deliver practical, bespoke training in all aspects of technology transfer and innovation management • Our technology transfer process: Spinout Post Deal Identify Protect Market License Translate Planning Fundraising The Team Billing Distribution Re-negotiation Valuation Negotiation Legalise Internalmarketing Ownership Evaluation Patenting Patent strategy Protection Proof of concept Development Endorsement Overview Customertargets Promotion Spain Serbia South Africa Mexico Taiwan China

29. International Programmes • Bulgaria • Participating in a national infrastructure programme to help Bulgarian scientists and engineers commercialise their research • In conjunction with the Eurocopter Offset Programme • Russia • Leading a regional international commercialisation programme in the Tomsk region of Siberia • Includes an executive education programme (in Oxford and Tomsk) • Supported by the regional government and Rusnano • Croatia • Supporting an EU programme to review the technology transfer capabilities of several of Croatia’s leading universities Case Study

30. ConclusionsHow Isis Works Universities Technology Transfer is a good thing Part of University purpose; may make money for University and researchers It does not happen on its own You need to invest resources in People, Patent budget, Proof-of-Concept You need a policy framework Who owns the inventions; who shares the rewards It takes a long time So start and do not stop. Business • Access to technologies, resources and expertise • Help understand universities • Help your business innovate Investors • Source of investment opportunities • Home for entrepreneurs Government • Stimulates innovation and enterprise • Improves society

31. www.isis-innovation.com Steve Cleverley PhD MBA Managing Consultant Isis Enterprise Tel: +44 (0) 1865 280849 steve.cleverley@isis.ox.ac.uk www.isis-innovation.com Nov 11