1. Technology Transfer Accelerator Meeting with universities in order to kick start inputs to the project European Investment Fund Brussels, June 7 th, 2004

2. TTA-PresUniv-07Jun2004 2 Agenda Presentation of EIF Technology Transfer in Europe Technology Transfer Accelerator project

3. TTA-PresUniv-07Jun2004 3 European institution created in 1994 EU specialised financial instrument for SMEs acting through: Venture capital (fund of funds), guarantees (SME loan portfolios) and Advisory (Complex Financial Structures) SHAREHOLDERS Subscribed capital of EUR 2 billion : - 59.6%European Investment Bank - 30%:European Commission - 10.4%: 31 financial institutions - Rating: AAA/Aaa/AAA (S&P/Moodys/Fitch) OBJECTIVES « Pursue Community objectives » such as growth, employment, research and development, innovation, and regional development… « Generate an appropriate return » Operating uniquely through financial intermediaries (about 190 funds, 130 guarantee transactions) on a commercial basis Across 25 EU Member States + 3 (Candidate) + 3 EFTA countries Presentation of EIF

4. TTA-PresUniv-07Jun2004 4 130 intermediaries which have supported 200 000 SMEs 6.45 billion (2251 million in 2003) GUARANTEES 190 intermediaries which have invested in 1 800 SMEs 2.50 billion (135 million in 2003) VENTURE CAPITAL Number of intermediariesTotal portfolio in EUR EIF portfolio Situation at 31.12.2003

5. TTA-PresUniv-07Jun2004 5 Facilité ERP EUR 250m Venture Capital (EUR 2.48bn) SME Guarantees (EUR 6.35bn) Additional until 2008+ ERP FACILITY EUR 4.5bn EIF mandates and resources: 8.8 billion at end-2003 Situation at 31.12.2003 EUR 2.2bn EUR 2.0bn

6. TTA-PresUniv-07Jun2004 6 Leading EU VC early-stage/high-tech player. EIF accounts for around 15% of early-stage market Key EU provider of SME guarantees (loans, credit enhancement). Reached over 250 000 SMEs Key micro-credit guarantor (EUR 180m) Luxembourg, 70 staff EIF a leading player in the European SME finance market

7. TTA-PresUniv-07Jun2004 7 Agenda Presentation of EIF Technology Transfer in Europe Technology Transfer Accelerator project

8. TTA-PresUniv-07Jun2004 8 Technology Transfer critical link between a bright invention and a business Tech. Transfer office Incubator Business Angels Founders Friends / family / fools Venture CapitalIPO Trade sale R&D / patent Proof-of- Concept / Prototype Seed capital Series ASeries BSeries C Start-up Growth company Spin-off Licensing

9. TTA-PresUniv-07Jun2004 9 Europe falling behind in research EU-US R&D Gap: 130 bn every year & growing –Public funding gap 25 bn –Business funding gap 105 bn US has early-mover advantage in many technologies –US built favourable environment over the years –US reaches scale faster, crowding out smaller players US has advantage of large homogeneous market –E.g. federal / state funding 90 / 10 in US; EU / national funding 10 / 90 in Europe US is an attraction pole –Brain drain –E.g. decision by Novartis to move research operations to Boston –E.g. GlaxoSmithKline relocated research HQ to Philadelphia

10. TTA-PresUniv-07Jun2004 10 (i)VC community typically does not address seed stage –Too small / too risky / too complex (ii)Current European technology transfer mechanisms are insufficiently developed –Lessons to be learnt from multitude of initiatives (iii)EU clusters do not talk to one another –They often relate better to US clusters (Owen/Pammolli study) (iv)Non-European operators best at poaching European ideas Multiple issues in Tech Transfer in Europe

11. TTA-PresUniv-07Jun2004 11 EU clusters do not talk to one another Biotechnology clusters: relationships between main clusters

12. TTA-PresUniv-07Jun2004 12 Agenda Presentation of EIF R&D in Europe Technology Transfer Accelerator project

13. TTA-PresUniv-07Jun2004 13 While European research is world class, it is not commercialised to its full potential –In particular lagging behind US This does not necessarily mean that solution lies in mimicking US –A model that works in Europe must be developed TTA based on simple ideas Premises: the TTA would: Operate commercially and independently on European basis Target advanced and emerging technology sectors Find, develop and optimise European ideas from research and academic institutions, for sale primarily to the venture capital and corporate community

14. TTA-PresUniv-07Jun2004 14 Possible concept for a TTA in Life Sciences TTA Life Sciences Investors Private funding (financial / strategic / VC investors) Public funding (PPP, EIF) Cancer projects Tissue reg. projects Vaccine projects … … … University A Tech transfer operator B Research foundation C Research Center D … IPR / royalty agreements 50 – 100 million funding European outlook Skill mix: tech / IP / mgt / VC Long enough duration (15 – 20 years?) Sale to VC / Corporate … Tech Transfer Acceleration

15. TTA-PresUniv-07Jun2004 15 TTA Project Planning Benchmarking Mapping of IPR systems Identification of participating centers Legal and tax structure Managing team EIB involvement Key milestones Financing 123456789 Analysis of existing situation Legal & tax structure of TTA Outline of structured vehicle Months Jun Jul/Aug SepOctNov Dec Jan FebMarApr 2004 2005

16. TTA-PresUniv-07Jun2004 16 Not a definitive answer or a recipe but one attempt to optimize investment in R&D/innovation We have much to learn: iterative process Objective: build a pilot to prove concept Ideas and discussion welcome, thank you for listening! Conclusion

17. TTA-PresUniv-07Jun2004 17 EU clusters do not talk to one another (2) ARCH Arch Dev. Corp., Univ. of Chicago (IL) BETHBeth Israel Hospital (MA) BETMBeth Israel Medical Center (MA) BWBrigham and Womens Hospital (MA) CEDSCedars-Sinai Medical Center (CA) CH Childrens Hospital Medical Center (MA) CNRSCentre Nat. de la Recherche Sc. (France) COLColumbia University (NY) COMMCommonwealth Sc. And Ind. Res. Org. (Australia) CORNCornell Research Foundation (NY) CSH Cold Spring Harbour Lab. (NY) DFDana-Farber Cancer Institute (MA) DKGerman Cancer Institute (Germany) DUKEDuke University (NC) EMORYEmory University (GA) FH Fred Hutchinson Cancer Res. Center (WA) FLUUniversity of Florida (FL) GSUGeorgia State University (GA) HARV Harvard University (MA) ICImperial Cancer Research Fund (UK) ILUniversity of Illinois (IL) INSERMInstitut National de la Santé et de la Rech. Médicale (France) IOWAUniversity of Iowa (IA) IPInstitut Pasteur (France) JH Johns Hopkins University (MD) LUDCLudwig Inst. For Cancer Res. (Switzerland) MELUniversity of Melbourne (Australia) MGHMassachusetts General Hospital (MA) MICHUniversity of Michigan (MI) MINNUniversity of Minnesota (MN) MIT Massachusetts Institute of Tech. (MA) MPMax Planck Institut (Germany) MRCMedical Research Council (UK) MSIN Mount Sinai Hospital (Canada) NCUUniversity of North Carolina (NC) NIHNational Institutes of Health (MD) NYUNew York University (NY) OREGUniversity of Oregon (OR) PENNUniversity of Pennsylvania (PA) PITTUniversity of Pittsburgh (PA) PURPurdue University (IN) SCRScripps Research Institute (CA) SFLUUniversity of South Florida (FL) SK Sloan Kettering (NY) STANStanford University (CA) TEMPLETemple University (PA) TEXUniversity of Texas System (TX) TJEFFThomas Jefferson University (PA) TUL Tulane University (LA) UABUniversity of Alabama (AL) UCUniversity of California System (CA) UTAHUniversity of Utah (UT) UWA University of Washington (WA) WAWashington University (MO) WAUWisconsin Alumni Research Found. (WI) WI Wistar Institute (PA) YUYale University (CT)