1. LIFE ERC: Education and Entrepreneurship Professor Gene Fitzgerald Dr. Andreas Wankerl Teaching: Commercialization of Fundamental Technologies Business of Science and Technology Initiative

2. “Open Market” of Research Results  Previous applied science concentration in large corporations shifts universities to very basic science activity  Applied science withdrawal from corporate research (last 10-20 years)  Today, gap appearing in optical innovation space between science sources (universities) and efficient commercial marketplace (companies) UniversityCompany Market Technology Implementation Market University Company Market Technology Implementation

3. Market/Technology Gap creates “Market Pull” and “Technology Push”  Market-side of Gap Pull random sciences that may help market, no command over type of research being performed  Science-side of Gap Push science to technology and market, leaving engineering of science and value to the marketplace  Must iterate between the two Research Market 2 Market 1

4. MIT 3.207/SMA 3.207/Cornell NBA 602 Commercialization of Fundamental Technology/ Technology Development and Evaluation Professor Gene Fitzgerald Dr. Andreas Wankerl Dr. Arne Hessenbruch Cornell Visting Professor of Management, Johnson School of Management Visiting Professor of Engineering, College of Engineering eaf37@cornell.edu MIT Merton C. Flemings-SMA Professor of Materials Engineering eafitz@mit.edu

5. Course Contents Course Flow Linear: An Unrealistic Abbreviation of the Process! Phase I: Research, Development, Technology Phase II: Finding Applications, Competitive Technologies Phase III: Intellectual Property Phase IV: Financing Phase V: Business Models Lectures: Views and Experience in each Phase Project: Practice each Phase This is a class about fundamental observations in ever-changing environments Lectures cover basic observations, some directly from our experience Outside lecturers covering the different phases of the class Student selects embryonic technology to bring through phases of class (only “Technology Push” is possible for teaching)

6. Cornell Business of Science and Technology Initiative Gene Fitzgerald BSTI Faculty Director Visiting Professor Johnson School of Business College of Engineering Cornell University Merton C. Flemings Professor of Materials Engineering MIT Andreas Wankerl BSTI Operations Director Johnson School of Business Cornell University Richard Shafer BSTI Business Director Associate Dean of Corporate Relations Johnson School of Business Cornell University

7. INFORM JUSTIFY Innovation Projects Risk ↓ Return ↑ x10 Sales & Production x10 Univ. R Applied R & D Product Development Time Investment x10 Innovation Project Function

8. Initial Project Definition Continue? 1 Year Innovation / Evaluation Project Option To Abort YES NO Fast Failure Continue in Company Continue as Sponsored Research Continue as Start-Up Switch to Consulting (e.g. Market Research) Innovation Project Outcome

9. Organization  Start-up-like structure Board Company Members, Gene, Andreas CEO, COO (PI’s) Gene, Andreas Advisor, CTO Prof. VP Marketing MBA VP Biz Dev MBA VP Tech PhD VP R&D PhD

10. Progress Mapped on Innovation Progress Education Interdisciplinary Connections Innovation MarketTechnology Implementation Mid-Term Review (Jan) Project Start (Fall Semester)

11. Deliverable Outline Assessment of advantages and disadvantages of current markets Assessment of current research results for suitability Evaluation, Reduction to Promising Technology/Markets Assessment of development state Identification of missing elements (scientific, engineering, production) Quantification of technical risk Assessment of customer valuation and trends Identification of unmet test needs Assessment of market risks Differentiation Assessment of Valuation vs. Realizable Cost/Performance Creative Synthesis: Realistic Interpretation of Market Opportunities Technical and Market Risk, Market Sizing, Financial Projections Phase I Phase II Phase III

12. Innovation Team: Post-Docs, PhDs, MBAs, MEng Selection: Motivation, Experience, Psychological Preference Innovation Faculty Director: Review: monthly Mentor: innovation Expert Innovation Faculty: Review: monthly Mentor: science and industry Innovation Leader: Review: weekly Mentor: innovation Company Project Team: Review: month 4,7,10 Mentor: as required University Environment and Other Faculty Innovation Board Innovation Project Mentorship