GATEWAY TO FINNISH EXPERTISE 1 Commercialization guidelines – NanoCom and ProNano results Dr. Eeva Viinikka, Business Director Programme Director of National Nanotechnology Cluster Programme Culminatum Innovation Ltd Oy

GATEWAY TO FINNISH EXPERTISE Commercialization guidelines o The barriers and best practices in commercializing nanotechnologies o Web-based survey with >250 companies, interviews o Commercializing related coarching for nano start ups o Promotions of nanotech companies along the industrial value chains o Fast growth in nanotech business during the last 3 years

GATEWAY TO FINNISH EXPERTISE The success factors in commercializing nanotech 1.Focus in business point of view Marketing, strategy, team, customer contacts, IPR Market opportunities, scalability, costs, ROI Business model 2.Organized in-house innovation activities R&D project management 3.Utilizing local support Technology support Business support 4.Collaborations; research and companies Other companies in R&D phase 5.Focus in establishing the production –Efficiency, reliability, reproducibility, early planning 6.Taking care of funding issues 7.Getting prepared to tackle the insecurities I dentifying the best practices of commercializing nano

GATEWAY TO FINNISH EXPERTISE Success factor no 1: Focus in business point of view o Business strategy o Market opportunities o Discussion with customers o Marketing: focus on added value, not on nano o Production: scalability, costs, ROI o IPR o The team’s business skills o Consider including services in the business model Success factors focus in business vs statistics on >250 companies Recognized as key success factors by the companies Source of competitive advance Result strongly supported by 30 interviews 4 I dentifying the best practices of commercializing nano

GATEWAY TO FINNISH EXPERTISE Recommendation From “solution looking for a problem” to differentiation and added value to a customer In case of “ a solution looking for a problem” –analyze potential applications –contact potential end users In case of “a solution to many problems” –Identify application that differentiates and provides the highest added value for potential customers –focus on it 5

GATEWAY TO FINNISH EXPERTISE Success factor 2: organize your in-house innovation activities o Key success factor: R&D project management KSF especially for SMEs and companies in R&D phase Also one of the key BARRIERS Success factor In-house innovation activities vs statistics on 278 companies Statistically significant correlation with success Source of competitive advance Recognized as success factors by companies Result supported by interviews 6 I dentifying the best practices of commercializing nano

GATEWAY TO FINNISH EXPERTISE Success factor no 3: Utilize local support Local support provides you competitive advance, once the basic needs have been satisfied. Local support means o tech support: incubators, R&D facilities, technology centers o business support: development agencies, networks, clusters Success factor local support vs statistics on >250 companies Statistically significant correlation with success Sources for competitive advance Recognized as success factors by companies US companies rely on strong local business support in R&D phase. 7 I dentifying the best practices of commercializing nano

GATEWAY TO FINNISH EXPERTISE The current tech transfer is pretty ok the most efficient to identify potential commercialization projects. but… Often public bodies, closely linked with public research institutions; often lacking a clear commercial perspective to make TT even better improve access to commercial and financial advisory services combine local TT offices and innovation consultants for commercialization support process. 8 Recommendation

GATEWAY TO FINNISH EXPERTISE Success factor no 4: Collaborate, utilize open innovation The successful ones appreciate all collaborations! R&D phase success factors: o external knowledge o open innovation o collaborations with especially other companies! Success factor Collaborations vs statistics on >250 companies Statistically significant correlation with success Sources for competitive advance Recognized as success factors by companies 9 I dentifying the best practices of commercializing nano

GATEWAY TO FINNISH EXPERTISE Recommendation From proof of concept to proof of industrial performance Proof of concept is not enough to make business. Industries need to know technical and economic performance in real industrial conditions Need pilot applications at industrial scale: o collaborative demonstration or scaling-up project o Interested industrial licensee Success factors for production: o efficiency, reproducibility, reliability, o early planning of production process 10

GATEWAY TO FINNISH EXPERTISE Recommendation From selling nanotech to VC’s to partnerships with corporate investors o Instead of VC, consider corporate investor from the targeted market Includes the opportunity to learn true client needs o If you still go for VC, focus on market opportunities, not on nano European VC see no nano specific issues in what’s attractive Strong management team Strong business model enabling a suitable exit 50% of VCs: strong IP Interest in very early stage start-ups = strong scientific team 11

GATEWAY TO FINNISH EXPERTISE How to tackle with commercialization barriers already in project building phase? Barrier 1: Acceptability o Create EHS and LCA strategies an communicate it Barrier 2: Competition o Study potential customers and current solutions Barrier 3: reproducibility, reliability, efficiency o Consider production process already in R&D phase o Team with industrial production design skills? Barrier 4: Organized absorption of external knowledge o Networking with the experts and potential customers Barrier 5: R&D project management o There is a difference between university research and industrial R&D management… you can learn it. I dentifying the best practices of commercializing nano

GATEWAY TO FINNISH EXPERTISE Thinking about commercial outcome already in project building phase? Engage Industrial players of the potential value chain VC or end user industries for investments IP experts Industrial production (process) design know-how Business support (yes, already in R&D phase!) Consider the steps after the project Funding for the closer-to-market activities? National? Business model? Licensing, start-ups? Local innovations support networks! 13 I dentifying the best practices of commercializing nano

GATEWAY TO FINNISH EXPERTISE Finnish nanotechnology based business has been growing fast! o The number of nanotech companies has trippled within 3 years o Nanocluster’s role in the growth practical, customer oriented information on the opportunities, added value and implementation to several different industrial sectors and public sector 14

GATEWAY TO FINNISH EXPERTISE The success factors; national point of view? Simultaneous & parallel support of all public players o Infrastructure investments: Ministry of education and science o Basic research: FinNano program of Academy of Finland o Applied research: FinNano & Functional materials of Tekes o Long term funding for the best: Centres of excellence in research o Commercialization: Tekes TULI funding, FinNano, Nanocluster o Skilled labour: Graduate Schools, networked o Industrial R&D: FinNano & Functional materials programs of Tekes o Cohesion within the nano community: FinNano, Nanocluster o Domestic promotions to potential user clusters: Nanocluster o International promotions: Nanotech Finland: Nanocluster & Tekes o Growth: Tekes Young innovative enterprises funding o Industry point of view: private sector participates & advices o External resources: private service providers’ expertise utilized 15

GATEWAY TO FINNISH EXPERTISE Nanocluster is the gateway to Finnish nanotech based business, reaching >90% of Finnish nanotech activities. Offering contacts to o Finnish nanotech business and research o Neutral information o Mission to foster the growth of Finnish nanotechnology based business Welcome to visit our Nanotech Finland ständ! 16 Oulu Mikkeli Joensuu Kokkola Turku Tampere Jyväskylä Helsinki Region & Coordination Thank you for your attention!