Technology Commercialization Class (BA468)

1. Technology Commercialization Class (BA468) John Turner January 4, 2010

2. “Far better it is to dare mighty things, to win glorious triumphs, even though checkered by failure, than to rank with those poor spirits who neither enjoy much nor suffer much. Because they live in the grey twilight that knows neither victory nor defeat.”

3. But aren’t we in a recession? • “Be fearful when others are greedy and greedy when others are fearful” • “When the enemy attacks; retreat and when the enemy retreats; attack.”

4. What are we doing? • A “hands-on” opportunity to develop a commercialization plan for technology from the OSU portfolio and other patents • A cross disciplinary project class in technology commercialization tools and processes • An “experiential” class

5. Class Opportunities • “Real life” experience in managing innovation • Great resume builder- employers value experience • Valuable prizes- • New Enterprise Challenge ($17K prize money) • In class competition ($?) • Experience working in cross functional teams • Connections with local entrepreneurs, investors, and job possibilities

6. HP COB NCIIA Boeing AEP Tech Transfer Office Local Entrepreneurs, SWOT, PBR Inventors

7. Startups based on University IP: Many Good Reasons to Focus on These > 400 university startups created yearlyfrom federally funded R&D (Google, Netscape, Genentech, Lycos, Sun Microsystems, Silicon Graphics, and Cisco Systems) OSU has “extremely high” research activity (~$250M year in grants). Corvallis has abundant talent and new funding sources High survival rates: 68% of university startups are still in business in 2001, regular startups experienced a 10% survival rate during that same time period They are profitable: Early& SEED VCs returns 20.8%, Late stage VCs returns 13.8%, S&P returns 8.2% They “go public” more often: 8% for university startups vs 0.07% for other US enterprises

8. Patent Selection and Commercialization Plan Process Spin Off Based Plan Licensing Based Plan Class Screening and Plan development TTO Provides list and input Advisory Team Screening Other Plan Recommended Technology not viable for commercialization BA468 Class

9. Candidate Intellectual Property for the Class Mobile Computing Sensor Technologies • Geonotes- GPS linked i-phone app (Tim Fiez- Gartrell Group) • Ultra sensitive accelerometer: • (Prof Mike Bailey, OSU-EECS and HP) Video/Imaging Analysis Novel Colorant • Ultra-bright blue pigment: (Prof Mas Subramanian, OSU-Chem) • Sports Film Analysis Software: (Prof Alan Fern, OSU-EECS)

10. Other information • Student background and intros • Formation of teams • Selection of patents • Inventors and access • Mentors- what are they for? • Student contact information • Invited speakers and protocols • Non-disclosure agreement

11. Technology Commercialization (BA468) • Instructor- John Turner, PhD • Class Schedule • MW (12-2 pm), 328 Bexell • Contact Info • Office: 316 Bexell • Office Hours: Mon 2-3, Fri 1-2 • Phone: 737-9219 • E-mail: john.turner@bus.oregonstate.edu • Best way to reach me quickly is by email

13. BA468 Mentors for this Term

14. Recommended Texts Resources • “Technology Ventures: From Idea to Enterprise”, Dorf and Byers • “Academic Entrepreneurship: University Spinoffs and Wealth Creation”, Shane • “Technology Management: Developing and Implementing Effective Licensing Programs”, R.C. Megantz • “Crossing the Chasm”, Geoffrey Moore

15. Grading • BA468 is a 4 credit class • There is no final or midterm • Grade will be determined by a) Attendance, class participation and team dynamics, and balance of contribution (30% total) b) Interim Results: patent screening, market surveys, SWOT analysis, elevator speech, project plan (30% total) c) Final Presentation and Final Report (20% each) • Feedback will be provided on a) halfway through the course and on b) within one week after presentation of results. Peer evaluations are also a part of your grade • Effective team communication, sharing of work load, and conflict resolution are essential to success

16. Interim Assignments • These 5 assignments are each 6%, for a total of 30% of the grade • Patent assessments (due Sat, 1/16); written only • Market evaluation (due Wed, 1/27); written + presentation • SWOT analysis of commercialization options (due Wed 2/3); written + presentation • Elevator speech (present Mon 2/8); presentation only • Financial and project plan (due Wed 2/17); written + presentation • All except the first are team exercises • Written assignments may be e-mailed (preferred) or sent electronically by the specified date/time

17. Commercialization Plan Presentations and Competitions • In class final presentation- Wed, March 3rd • PBR Judging Panel- Wed, March 10th • New Enterprise Challenge- mid April $$$$$$!!!!

19. Technology focus vs Customer focus Technology commercialization is difficult!! The best business plans are built around a compelling customer need- “a problem in search of a solution”. You have the opposite situation- a “technology in search of a problem” This is not a technical exercise! Use business and consumer knowledge, and careful market research to find the best way to extract value from these inventions

20. Small Group Activity • What factors will determine the success of a technical idea in the marketplace? • Think of at least ten- more is better • Identify your top four

21. Parting Question “How much is an idea worth?” Typical valuation methods: -Market based valuation? -Cost based valuation? -Opportunity based valuation? Challenge: An invention has the following characteristics - 25% chance of success= P - Takes 5 years and $5M to bring to market= E - Offers exclusive access to a market of $100M for 5 years=R Estimate the value of this invention