© Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Commercialization of Technologies in Germany: Fraunhofer Experiences III ASTANA ECONOMIC FORUM INTERNATIONAL INNOVATIVE CONGRESS Friday 02 July 2010, Astana

© Fraunhofer MOEZ Structure of Presentation Fraunhofer within the German Research System 1 Approaches to Commercialization The Fraunhofer Business Model Commercialization Approaches Fraunhofer Venture Key Messages 2 3

© Fraunhofer MOEZ Fraunhofer operates in a dynamic equilibrium between application-oriented fundamental research and innovative development projects Fraunhofer within the German Research System Research output must be market and customer oriented

© Fraunhofer MOEZ Fraunhofer MOEZ Center for Central and Eastern Europe Fields of Expertise: Instruments of effective Technology and Know-how Transfer Innovation Economics and Innovation Management Strategy Development in the field of R&D and innovation policies; Implementation Support in programmes and projects Evaluation of policies, funding programmes and projects SME support concerning entry to and performance on international markets to foster their competitiveness Design, implementation and management of International Research Projects and Scientific Cooperation

© Fraunhofer MOEZ Structure of Presentation Approaches to Commercialization The Fraunhofer Business Model Commercialization Approaches Fraunhofer Venture Key Messages 2 3 Fraunhofer within the German Research System 1

© Fraunhofer MOEZ The Fraunhofer Business Model Performance-related funding model of Fraunhofer Gesellschaft Due to “applicability” Fraunhofer gains high share of contract funding Institute Funding: 1/3 institutional funding, 2/3 contract research Business Model ensures direct engagement with the private sector

© Fraunhofer MOEZ Commercialization Process Fraunhofer Approaches Initial stage Commercialization stage 1 Fraunhofer Venture 2

© Fraunhofer MOEZ Commercialization of Technologies Fraunhofer Venture - Overview Fraunhofer actively encourages researchers to found their own companies Fraunhofer Venture founded in 1999 More than 120 Fraunhofer spin-offs, 37 successful technology transfers, 70 Fraunhofer investments, know-how with more than patent families Provides professional backing for the spin-off activities by offering consulting services, such as: Development and optimization of business plans Selection of the legal corporate form Drafting of contracts Search for financing, research and industrial partners Fraunhofer might even offer part of the seed investment

© Fraunhofer MOEZ Commercialization of Technologies Fraunhofer Venture - Instruments Operates primarily before actual founding of company Target group: researchers of Fraunhofer institutes who developed innovative and profitable products or services Starting point: innovations stemming from Fraunhofer research Financing: 2 support programs FME: pre-founding funding to write business plan Up to € per project (up to 3 employees for up to 1 year) FMM: pre-founding support through dedicated external managers Chosen jointly by entrepreneurs and FV Duties: demand analysis, production planning, PR, … Possibility to become executive director after founding

© Fraunhofer MOEZ Structure of Presentation Approaches to Commercialization The Fraunhofer Business Model Commercialization Approaches Fraunhofer Venture Key Messages 2 3 Fraunhofer within the German Research System 1

© Fraunhofer MOEZ Key Messages A PRO that conducts applied research needs close links to its customers, favorably close geographical proximity to its clients Thus, a sound industrial basis with actual R&D needs is the most important prerequisite for the demand of R&D services Set incentives that encourage researchers to apply their know-how to the benefit of companies and to focus on market needs Strengthen close links between applied research and top Universities and other centers of excellence, also internationally However, “every supply creates its demand”: economic, science, R&D and innovation policy makers must create favorable framework conditions for PROs and innovative companies

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