“International Connections for Innovation – Can They Help? Are They Possible?”

Connecting Novosibirsk to the U.S. Innovation Sector.

Business Leaders Investment Forum“Innovation for Business”

Novosibirsk , February 19 – 20, 2010

Presentation of Daniel M. Satinsky, Esq.President, B.E.A. Associates, Inc.

Member, Collaborative Innovation Group Network

Topic of PresentationWhat is the most effective way to use international

connections to nurture and support innovation and accelerate the migration of ideas from the lab to

practical commercial application?

Licensing and sales of intellectual property is the most effect way to utilize foreign connections to support

scientific work and innovation in Novosibirsk.

Market Entry

Russian Entry into Global Tech Markets – Models:

• Russian software companies enter foreign markets– Software service companies – Luxoft, Lanit, Auriga, EPAM– Software products – Kaspersky, Abbyy

• Foreign Development Labs in Russia – Intel, Boeing

• Commercialization of Russian IP – handwriting recognition, sound processing, biotech

Commercialization Benefits

Benefits of Commercialization Model:• Strengthens local science & research - alternative to

brain drain both emigration or work with Russian branch of foreign firm.

• Does not require scientists and researchers to become businessmen.

• Cost-effective alternative to foreign market entry that requires large investment, overcoming cultural & administrative barriers and long-term commitment.

Commercialization is broader than Tech Transfer:

• Ownership of IP - Settled and Protected• Technical and Market Risk • Market Need (rather than idea looking for a market)• Cross Disciplinary Applications• Economic and Social Impact• Commercialization Strategy• Funding Sources• Practical Support: Marketing, Representation, Licensing,

Contracts ….

Considerations in bringing a new idea to market:

Success Factors for Collaboration

• Knowledge – technical and personal factors.• Communication – technical, cultural and

linguistic factors.• Professional skills on both sides.• Trust and honest dealing between the Parties.• Realistic expectations – time frame, expenses

and share of upside to be split.

Model for a Novosibirsk Innovation Center (NIC)

• In-country staff make preliminary survey of available technologies.

• Promising technologies referred to NIC Advisory Board in U.S. for first level evaluation.

• In-country staff make a preliminary representation agreement with Russian technology rights holders for those technologies tagged by the NIC Advisory Board.

• IP due diligence performed and availability of patent protection in the U.S. and Europe confirmed.

• A legal entity to hold the IP rights to the technology formed in the U.S. with ownership participation of the Russian rights holder and NIC.

• NIC will engage in marketing the IP for licensing or sale.

NIC’s Operating Process:

Conclusion

Thank you for your attention. I wish success to the technology community and companies in

Novosibirsk.Please feel free to contact me with questions or

business proposals:Daniel Satinsky, Esq.

satinsky@bea-associates.comwww.bea-associates.com

www.ci-grp.com