EXPLOITATION AND VALORIZATION OF PROJECT RESULTS Training course on Dissemination and Communication Techniques and Tools for European projects Fifth session EXPLOITATION AND VALORIZATION OF PROJECT RESULTS

Table of contents INTRODUCTION - Why EC Projects Exploitation? - Which relation between Dissemination, Exploitation & Valorization? - Business vs Exploitation of EC Projects KEY ASPECTS OF EXPLOITATION IN EC PROJECTS - Description of Project Outcomes - Market Analysis - Intellectual Property Issues - Negotiation Tips - Commercialization Channels - Technological Readiness Level – TRL EC SPECIFIC EXPLOITATION FEATURES - The Exploitation Plan - Supporting Tools CONCLUSIONS 2 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results 2

In Athens in may, we mentioned about exploitation: LET’S SEE WHAT’S GOING ON CONCERNING EXPLOITATION OF PROJECT RESULTS IN H2020 3 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

- Why EC projects exploitation? INTRODUCTION - Why EC projects exploitation? - Relation between Dissemination - Exploitation & Valorization - Business vs Exploitation of EC projects Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

WHY EXPLOITATION IN EC PROJECTS? A CONTRACTUAL OBLIGATION H2020 oblige EC funded projects to exploit and impact the market: “The dissemination and transfer of knowledge is a key added value of European research actions, and measures shall be taken to increase the use of results by the research community, industry, policy makers and society” Basic principles layed out in Title III of Rules for Participation Article 43 - Exploitation and dissemination of results “Each participant that has received Union funding shall use its best efforts to exploit the results it owns, or to have them exploited by another legal entity, in particular through the transfer and licensing of results in accordance with Article 44.” Rules for participation and dissemination in "Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) - TITLE III - RULES GOVERNING THE EXPLOITATION AND DISSEMINATION OF RESULTS AN OBJECTIVE REASON To get return from the knowledge, technology and commercial potential from the intermediate and final outcomes of the project 5 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

DISSEMINATION-EXPLOITATION&VALORIZATION In projects funded under H2020 beneficiaries have the obligation to define the expected results and their strategy for exploitation and dissemination. Key terms: RESULTS: All results which are generated under the project – whether or not protectable Dissemination: Means trough which research results are presented to the public Valorization: Use, for socio-economic purposes, of the results of research financed by public authorities. It represents society's direct and indirect return on the public sector's investment in research and development Exploitation: Utilisation (direct/indirect) of results in research activities, which are not part of the project, as well as utilisation for further development, creation and marketing of a product or process. 6 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

BUSINESS vs EC PROJECTS EXPLOITATION Business Operation: Activities involved in the day to day functions of the business conducted for the purpose of generating profits. Objective for creating a Business: To get profit through the exploitation of the products/services that it creates Exploitation means the utilisation of results in further research activities [..], or in developing, creating and marketing a product, process or service, or in standardisation activities Rules for participation and dissemination in "Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) – Article 2. Definitions (1.9) Objective for participating in an EC project Research, develop or innovate about a technology/product/process. The exploitation of the results of the project may not be the main target 7 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

BUSINESS vs EC PROJECTS EXPLOITATION Priority Level Execution? Future if fails? Main Objective Type Interest of shareholders Expertise Technological Risk Market Knowledge Ownership BUSINESS Leitmotiv!! Always - Obligatory Great Problems ONE: Earning Profits Industrial Common interest High Expertise Low. Companies tend to reliable outputs Well Known The Company EC R&D PROJECTS Secondary Hardly ever- Optional A learning experience Diverse: Further research activities, standardization, … Academic Diversity of interests. Can derive in Conflicts No Expertise in RTOs & Universities High A Mystery! Several partners 8 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

Exploitation Research Results in EC Projects? TAKE A LOOK AT SOME KEY ASPECTS OF EXPLOITATION! 9 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

KEY ASPECTS OF EXPLOITATION IN EC PROJECTS - Description of Project Outcomes - Market Analysis - Intellectual Property Issues - Negotiation Tips - Commercialization Channels - Technological Readiness Level – TRL Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

PROJECT OUTCOMES The first key element in exploitation is to have a clear description of all project outcomes, products, services and knowledge generated within the project, that could potentially be exploited: Products Services Prototypes Guidelines Software Methodology…. 11 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

MARKET ANALYSIS THE CONCEPT Market Analysis is an essential aspect on Exploitation. Exploitation needs a market, a buyer of our product/service/technology Market Analysis helps to identify which is our market and which are the most suitable media to reach it. MARKET = CUSTOMERS/END USERS. Target group Who are they? What do they need? How do they make their buying decisions? It’s price a must? How do we reach them with your Marketing and Sales Messages? How is the environ- ment? 12 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

MARKET ANALYSIS Identify potential Market and its size KEY PARAMETERS I WHO ARE THEY? WHAT DO THEY NEED? Identify potential Market and its size We must try to measure and quantify our market. E.g. – elder population in Europe – 92M people 65 years and over. Identify your market growth. Think about percentage change as a market forecast. E.g. Is the number of elderly people growing? By how much per year?   Segment your Market: We must divide it in detailed segments. E.g. Hospitals, homes for the elderly, physical rehabilitation centres,…. Trying to classify them into several attributes – growth rate, annual spending, etc. Identify segment needs and requirements: Why do they need our product/service? What is going to make them buy? Price, Reliability, Quality? Availability?.... 13 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

Select the most suitable Distribution Channel: MARKET ANALYSIS Select the most suitable Distribution Channel: Which are the standard channels of any of these markets? What kind of information will be most effective? Emailing, Medical prescribers,… KEY PARAMETERS II HOW ARE WE GOING TO REACH THEM? HOW IS THE MARKET ENVIRONMENT? Market Trends Are there any trends influencing in your market? Ecology is a fashion? Taking care of old people is cool? … Laws & Regulation Can arise new rules that can stop the evolution or exploitation of the product/service/technology that the project is trying to exploit?  Are there any standards? Check CEN & CENELEC databases Competition Is there a high number of competitors addressing the same challenge? Is there a limited number of prevalent competitors? Which are similar products/services to ourselves? Immutability Is it a conservative market? Or a market wide open to new innovations? E.g. We can consider software market an open mind market while textile it isn’t 14 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

MARKET ANALYSIS KEY PARAMETERS III In summary, a Project Market Analysis should provide information on: Market environment Consumer’s needs /Clients Competitors Standards, legal & environmental issues Some PEST (Political, Economical, Social, Technological) and SWOT (Strength, Weaknesses, Opportunities and Threats) analysis. Benchmarking of our project products/services versus main competitors. 15 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

INTELLECTUAL PROPERTY ISSUES COMMON RISKS There are RISKs that simply concern EC Projects, those related with a Consortium formed by different agents with different interests: 1. Conflict of Interest among the partners: There can arise conflicts related with the ownership of the results of intellectual property rights. IPR rules agreement must be established before the exploitation phase starts. 2. Lack of Support along the project development: The success of a project depends on the collaboration of the whole consortium; if any of the partners doesn’t cooperate enough can cause the failure of the project or at least the failure of the exploitation plans related with the project’s outcome 3. Changes in the final phase of the project: It may happen that at the end of the project some of the partners loose interest in exploitation, change their priorities or decide that part of the outcomes must not be exploited. This may cause prejudice to the rest of partners and to the final exploitation of the results. 16 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

INTELLECTUAL PROPERTY ISSUES Conflict of Interest among the partners: (1) Lack of Support along the project development: (2) Changes in the final phase of the project: (3) The Consoritum Agreement is the best way to prevent these type of Risks. It stablishes conditions concerning IP and way-out rules COMMON RISKS 23 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

INTELLECTUAL PROPERTY ISSUES IP & CONSORTIUM AGREEMENT Intellectual Property Rights are usually included in the Consortium Agreement of the project, which clarifies the relationship among the project partners. In a consortium there are different interests and not everybody is interested in the same type of exploitation. Some are willing to create a spin-off firm that commercially exploits the Project outputs; other will like to publish in scientific journals or magazines the main discoveries; other would like to find industrial firms that would pay for royalties;….. It is always advisable to clarify the ownership of results within the consortium once they have been created, before the partners start setting up exploitation strategies! http://www.eurosfaire.prd.fr/7pc/documents/1313579394_comparison_of_fp7_consortium_agreement_models.pdf 18 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

INTELLECTUAL PROPERTY ISSUES IP MANAGEMENT I Which knowledge are we exchanging? Under which conditions? Who will be the owner of the results? What happens in cases of joint ownership? Who and how will exploit the results? How are we protecting confidential information? How are we going to share the revenues? IPR TYPE OF OUTCOME Patent New inventions Utility model Trade Marks Distinctive signs Industrial Design Appearance of products Copyright Literary, artistic and scientific works Confidentiality Confidential business information/trade secrets Ramocki, J., “Intellectual Property in Horizon 2020 – overview with a focus on comparison with FP7”, European IPR Helpdesk Bulletin, N°11, October - December 2013: http://www.iprhelpdesk.eu/sites/default/files/newsdocuments/IPR_Bulletin_No11-1.pdf 19 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

INTELLECTUAL PROPERTY ISSUES IP MANAGEMENT II Project partners must identify their background in writing Best practice! do so before the Contract Agreement is signed! Principle = results belong to the beneficiary generating them. If results have been generated by several partners jointly = joint ownership. Best practice! agree on a tailored joint ownership agreement adapted to each jointly owned result. 20 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

INTELLECTUAL PROPERTY ISSUES IP MANAGEMENT III IP issues however, do no end with the signature of the Consortium Agreement. They are relevant at all stages of the project: during the project implementation as well as after project end: During Implementation IP protection and management Granting of access rights Refining and updating of your exploitation strategy After Project End Disseminating and securing generated IP Exploitation of the results Valorisation of intangible values Commercialisation 21 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

INTELLECTUAL PROPERTY ISSUES IP MANAGEMENT IV So, Knowledge management and protection is a must during the whole project lifetime. Good practices: To create and maintain an IP repository/file with data of all knowledge produced within the project; Any other necessary agreement should be agreed upon and signed: Confidentiality agreements Joint ownership agreements Technology transfer agreements…… The Consortium Agreement has been signed before the project starts! Many changes in the project having an impact on exploitation are most likely to happen during the project and have to be discussed and negotiated. 22 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

NEGOTIATION TIPS Be sufficiently prepared to negotiate …acquire information on the other parties …examine the technology Search for a win-win agreement …take into account the other party’s interests …provide objective technical Discuss the agreement as a whole …search for an overall agreement and avoid deadlocks …discuss conditions together with price Time is always important …respect the time constrains of the parties and of the technology …good preparation and discussion, faster agreement 23 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

COMMERCIALIZATION CHANNELS RANGE I There is a great range of different paths to bring research results to the marketplace The IP or ownership is transferred to another firm for a lump sum payment. This firm will exploit the outcomes. The original owner will loss control over the IPR. Assignment Similar to assignment, but in this case the holder of IP (licensor) grants permission to another firm or entity (licensee) in return on payment of a fee or royalty for the exploitation of the outcomes for a limited period of time or for an exclusive market, or within other conditions set in the contract among both parties. The IPR owners will be still the owners of the IP. Licensing Opportunities 24 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

COMMERCIALIZATION CHANNELS RANGE II Some of the partners decide to exploit the results sharing risks, benefits and costs, committing resources and contributing with their intellectual capital to technology research and development, production, marketing and further commercialization. One can be in charge of production, another one of commercialization, another one will look for investors,… It is not necessary to create a new firm Joint-Venture Agreement New company exclusively created with the aim of exploiting specific results of the project. It has its own life. Spin-off Each partner offers to the market a service related with the outcomes to be exploited. 2 Modalities: Contract Research: Research, based in the new technology/product commissioned by a private company to pursue a solution to a problem of interest. The results generated should be owned by the private-sector party Faculty consulting: Encompasses research or advisory services provided by researchers to industry clients Consultancy Service 25 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

COMMERCIALIZATION CHANNELS HISTORY Historically, research exploitation has been dominated by licenses, because the royalties obtained almost always surpass spin-off income. Also, it is less costly to sell knowledge to a company in terms of time and effort than to create a new way to exploit it. Research groups have had difficulties in becoming entrepreneurs due to: opportunity cost academic careers lack of management skills lack of market knowledge Consultancy is one of the most widespread activities in which industry and academics engage. This channel is very important to industry and usually does not compromise university objectives For further information on the topic please also see: Exchanging Value. Negotiating Technology Licencing Agreements http://www.wipo.int/sme/en/documents/guides/technology_licensing.html Knowledge Transfer Study 2010-2012, final report: http://knowledge-transfer-study.eu/norm/home/ OECD (2013), Commercialising Public Research: New Trends and Strategies, OECD Publishing: http://dx.doi.org/10.1787/9789264193321-en 21 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

TRL – TECHNOLOGY READINESS LEVEL CONCEPT It is a measure to enable assessment of the Maturity of a particular technology and the consistent comparison of maturity between different types of technologies. When a new technology is first invented or conceptualized, it is not suitable for immediate application. New technologies are usually subjected to experimentation, refinement, and increasingly realistic testing. Once the technology is sufficiently proven, it can be incorporated into a system and into the markets. Directly linked to Technology Risk: Untested engineering, technological or manufacturing procedures entail some level technical risk that can result in the loss of time, resources and possibly harm to individuals and facilities. Technical risk is measured as an expected value derived from prior experience that led to undesirable results 27 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

TRL – TECHNOLOGY READINESS LEVEL PROCESS Assessment of the readiness of the individual technologies will allow Risk Reduction in budget and planning exploitation Horizon 2020 uses the TRL scale as a tool for decision making on RDI investments at EU level. 28 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

TRL – TECHNOLOGY READINESS LEVEL TRL IN H2020 Excellence Science Industrial Leadership Societal Challenges 29 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

EUROPEAN COMMISSION IN H2020 PROGRAMME ENHANCES EXPLOITATION - MEASURES: DIRECT MEASURES: EXPLOITATION PLAN INDIRECT MEASURES: SUPPORTING TOOLS 30 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

EC SPECIFIC EXPLOITATION FEATURES - The Exploitation Plan - Supporting Tools Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

THE EXPLOITATION PLAN RESULTS DELIVERABLE The Exploitation Plan is the tool that EC will use to evaluate the IMPACT of the project, complementing the Dissemination Plan: Proposal template technical annex: 2.2. Measures to maximise impact a) Dissemination and exploitation of results: "• Provide a draft ‘plan for the dissemination and exploitation of the project's results’ (unless the work programme topic explicitly states that such a plan is not required). (…) Dissemination and exploitation measures should address the full range of potential users and uses including research, commercial, investment, social, environmental, policy making, setting standards, skills and educational training. (…) • Explain how the proposed measures will help to achieve the expected impact of the project. Include a business plan where relevant.” RESULTS Results to disseminate Dissemination Plan Activities, Social Media, Message,… Results to Exploit The Exploitation Plan TRL, Market,… IPR. Strategy & Management Public, Open Access,.. Confidential, Protection 32 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

THE EXPLOITATION PLAN MAIN OBJECTIVES TO WHOM IS ADDRESSED? identify markets, exploitation channels and third parties; assure project results exploitation by the partners. manage Intellectual/industrial property rights. to communicate the consortium’s strategies on exploitation plans. European Commission: to share each partners’ intentions in order to enable them to build strategic alliances, and exercise their objection right if needed in case their legitimate interest could be impaired. Consortium partners: TO WHOM IS ADDRESSED? WHEN MUST START? It is convenient to start with it soon in order to define aspects that must be present in the Business Plan, to detect exploitation barriers and opportunities, comment with partners,... 33 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

THE EXPLOITATION PLAN WHAT MUST CONTAIN? LIST OF TOPICS EXAMPLES Purpose of Results How results are going to be exploited, when and by whom? Business Plan The IPR exploitable measures taken or intended Further research required, If any! Potential expected Impact Market identification EXAMPLES DAPHNE – Data as a service Platform for Healthy lifestyle and preventive medicine http://www.daphne-fp7.eu/sites/default/file/D8.1_Project_Exploitation_Plan.pdf SRS - Multi-Role Shadow Robotic System for Independent Living http://srs-project.eu/sites/default/files/SRS%20DELIVERABLE%207.3.pdf 34 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

THE EXPLOITATION PLAN The exploitation plan should cover these topics: Description of the Project consortium Description of the Project outputs Market Analysis IPR issues Individual (every partner) as well as jointly exploitation plans, even for non commercial partners (used in further R&D activities, consultancy….) A Business Plan, depending on the type of project and its technological readiness level. If applicable, the business model and financial feasibility with sales and profit and loss forecast during the first operational years, should be included. 35 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

THE EXPLOITATION PLAN Contents of a Business Plan: Executive Summary THE BUSINESS PLAN Depending on the type of project and the Technology Level readiness a Business Plan will have to be produced. Contents of a Business Plan: Executive Summary Service/Product Description Market and Competitors Marketing Plan Management Team & Structure SWOT & Risk Analysis Financing Operational Process The BP must be a real compromise among the partners!! 36 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

THE EXPLOITATION PLAN SUMMARY Outcomes Prototype Product Service Software Methodology Documents Technology Readiness Level / Time to Market TRL3 – TRL4 - Applied Research – Long Time to Market TRL5 - TRL6 – TRL7 - Pilot Industrial Scale – Medium time to Market TRL8 – TRL9 – Manufacturing – Short Time to Market IPR Patent Trademark Utility Model Copyright NDA – Non Disclosure Agreement Industrial Design Commercialisation Channels Consultancy Licencing Spin-off Assignment Joint-Venture Agreement Target Groups Associations Hospitals Public Bodies Private Companies End Consumers … 37 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

SUPPORTING TOOLS The EC is implementing several supporting tools to help project’s consortiums bridging the gap between research outcomes and exploitation, among them: For all projects: -IPR Helpdesk: helpline, training modules, webinars, newsletters For specific areas: -NMP projects: IP, business, patenting and standardization assistance -Energy projects: support to exploitation of EU funded projects 38 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

SUPPORTING TOOLS European IPR Helpdesk aims at raising awareness of Intellectual Property (IP) and Intellectual Property Rights (IPR) www.iprhelpdesk.eu assisting SMEs and beneficiaries of EU-funded programs in dealing with IPR matters providing advice and first-line, high-quality support on IP/IPR issues via different services raising awareness of the value of intellectual assets and of the necessity to secure and manage them empowering its target groups to develop capacities of their own to deal with IP/IPR 39 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

SUPPORTING TOOLS The Innovation Platform It provides to NMP projects a series of tailored services: Project Risk Analysis (PRA) and Exploitation Strategy Seminars (ESS) to brainstorm on how a consortium can address the risks and potential obstacles to the exploitation Business plan development service Assistance for patenting Assistance for standardisation http://ec.europa.eu/resear ch/industrial_technologies/ assessment-and- exploitation_en.html 40 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

SUPPORTING TOOLS EC Calls http://ec.europa.eu/research/index.cfm?pg=tenders-open Calls for Tenders related to the Directorate-General for Research & Innovation Tender reference number RTD-K-2013-ENERGY Title Support services for exploitation of research results. Description The aim of this action is to provide the Commission with external assistance for an on-demand service benefiting former and current DG RTD grant beneficiaries of the Energy theme of the FP7 'Cooperation' specific programme and the Horizon 2020 Secure, safe and efficient energy Societal Challenge in view of supporting them in the exploitation of their EU-funded research results. This would involve, inter alia, identification of market potential and opportunities; evaluation of competing technologies; development of business plans; assessment of upscaling costs; and IPR protection. Contract type Services Procedure type Open procedure Status Closed Published on TED Checked 41 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

CONCLUSION Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

CONCLUSION MAIN BENEFITS OF THE EXPLOITATION OF RESEARCH RESULTS Helps to create a more competitive EU market, capable of attracting researchers, scientists and further research funding at the international level. Generates economic and social value and improve the competiveness of national industry Resulting commercialisation may constitute an alternative income source to fund the R&D activity Allows rooting an entrepreneurial culture within consortiums. This is of particular importance for a successful exploitation of publicly funded knowledge. Besides: Generates additional revenues Promotes open innovation Increases access to and sharing of research data and publications Engenders possibilities for collaboration in research and teaching Raises the partners profile and get publicity Broadens the job market for students 43 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

Continuously update your Exploitation Plan ! CONCLUSION HAVE A CLEAR STRATEGY R E S U L T S Product, Service, Documents, Prototype,… D i s s e m i n a t i o n Mass media and other communication Activities E x p l o i t a t i o n Spin-off, Joint-Venture, Licencing,… Valorization €, $, Market Monitor regularly relevant external factors affecting your exploitation potential (other projects, competing technologies,…) Continuously update your Exploitation Plan ! 44 Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results

THANK YOU! Haivisio Training session 5 on Communication: Exploitation and Valorization of Project Results