Building Linkages & Picking WinnersBuilding Linkages & Picking Winners

A Government Lab Perspective

Mike Walker

Commercialization Branch, NRC

FPTT Annual Meeting

Halifax 2004

A Government Lab Perspective

Mike Walker

Commercialization Branch, NRC

FPTT Annual Meeting

Halifax 2004

TechnologyTechnology MarketMarket

The innovation life cycle focuses on the

development of science and technologies through

research, prototype and production. Innovation does

not necessarily generate a commercial product.

The commercialization life cycle focuses on the

needs of existing and potential customers.

Commercialization identifies target market segments,

value propositions, and functional relevance from the

customer’s point of view.

Innovation is Technology-centric

Innovation is Technology-centric

Commercialization is Market-centric

Commercialization is Market-centric

Relevance RelationshipsFunding

TechnologyTechnology MarketMarket

Collaborations

Market Intelligence

Market Access

Business Skills

Interoperability

Success depends on Market Relevance

Success depends on Market Relevance

Success depends on Technology RelevanceSuccess depends on

Technology Relevance

Funding

TechnologyTechnology

MarketMarket

To transform a “technology” to market success, requires tight integration of the innovation-commercialization functions to overcome the “Functionality Barrier”.

“Technology Commercialization” is a misnomer. The Functionality Barrier is overcome when

>> technologies are transformed into applications,

>> applications into products and services, and

>> product and services to target market segments.

To transform a “technology” to market success, requires tight integration of the innovation-commercialization functions to overcome the “Functionality Barrier”.

“Technology Commercialization” is a misnomer. The Functionality Barrier is overcome when

>> technologies are transformed into applications,

>> applications into products and services, and

>> product and services to target market segments.

The Functionality BarrierThe Functionality Barrier

Integration & Collaboration• To be successful, both the innovation and the commercialization processes need

to be considered and balanced. Supporting one at the expense of the other will minimize the economic return on investment and its overall impact.

• Incremental value will be created when both cycles are integrated and supported.

“Strong innovative companies move beyond the simple dichotomy of ‘market pull’ versus ‘technology push’ to embrace both sides of the equation.”

Conference Board of Canada

“Strong innovative companies move beyond the simple dichotomy of ‘market pull’ versus ‘technology push’ to embrace both sides of the equation.”

Conference Board of Canada

Intellectual Property Management (How Do We Pick the Winners?)

Technology Strength

Market Potential

LOW HIGH

HIGH

LOW

Niche Opportunities

AbandonDonate

Potential stars

or

High impact licenses andnew ventures

Management “flow” of IP

Generate IP

Protect IP

Manage IPPortfolio

Develop IP

Exploit IP “Tech Transfer”

Collaborative Agreements with Canadian Firms

• NRC signed 326 new collaborative agreements with Canadian partners in FY 2002/03

• Currently, NRC has 1,021 active collaborations with Canadian partners

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Industry Partners within NRC Facilities• 95 companies now co-located or

incubating within NRC facilities.

• Internal network developed to facilitate access to:

– IRAP, CISTI– Business intelligence– Research partnering– Administration services

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