1. Heriot-Watt University & Technology Transfer Gillian E McFadzean Director Technology & Research Services

2. Research Profile Operates strongly in niche areas:  Science - Engineering - Management - Languages Major international player in selected areas  Upstream petroleum engineering  Applied and actuarial mathematics  Photonics science and engineering  Microengineering and materials engineering  Logistics  Underwater systems engineering 415 academic staff; 241 PDRAs; 390 PhD students

3. From “Blue Sky” to “Applied” research Increasing Certainty about the Value of the Knowledge Industry:- Economic Growth Increasing Certainty about the Validity of the Knowledge Research Councils Blue Sky Basic Applied

4. Industry Links  “A series of companies linked by a corridor”  40 % research income from industry  Technology Transfer embedded in teaching & research  Strategic alliances with industry with joint research agenda  Consultancy @£1 million per annum; CPD @ £0.5 million  Excellent links with small companies

5. Research Survives?  Petroleum Engineering  80% funded by industry  World leader in training and consultancy  RAE – 5*  Twice

6. Technology Transfer Strategic Backdrop 1.Pre 1995 close organic links with industry - research, consultancy, CPD, students, exchanges 2.1995/6 - Commercialisation Strategy for Scotland Objective - economic development by creation of new companies from universities 3.Scottish Enterprise targets = spin-outs from universities! 4.2001 - Strategy revised to include licensing to existing Scottish owned companies…………….

7. Why Transfer Why Transfer Technology University  Utilise inventions for public good & benefit  Develop Technology  Benefit local & national economy  Reward, Retain & Motivate Academics  Revenue generation (?)  To induce closer ties to Industry Industry  Revenue Generation  Strategic Advantage  Benefit local economy & UK  Input to student training = future employees

8. Policy Framework IP generated by staff is owned by the University

9. External Policy Policy Framework UK & Scottish Executive & Universities & Scottish Enterprise & professional KT groups in UK Funding Shefc & University & economic development agencies

10. Establishing Technology Transfer Create order from successful chaos Bring 3 independent functions together Establish policy framework – and get it accepted!

11. Technology & Research Services An integrated unit to support the: Delivery of world-class innovative research that meets the needs of business & industry Transfer of knowledge Commercial realisation of ideas Generation of income for the University and for the academic community Growth of the local and national economies

12. Technology & Research Services Working with colleagues TRS :  Provides research support and commercialisation services to Heriot-Watt University staff.  Promotes the transfer of knowledge by developing collaborative links between industry and academia, through collaborative research, technology licensing, the delivery of training and consultancy services  Promotes University expertise and services to industry  Develops enterprise skills in staff and students  Works within an agreed strategy

13. TRS = Integrated Functions Service Functions Enterprise Functions  Research funding and information  Management information on research & TT  Environment scanning -political & market  industry connections  Project management  IP portfolio management & valuation  Contract negotiation, drafting, agreement of terms  Management of TT process  Invention disclosure  Identification of exploitation route  Patent application & prosecution  Agree terms for Licensing/options/business creation  Allocation of income/equity  Agree staff secondments & access to facilities

14. Research & TT are integrated Research Planning & large initiatives Research funding support - eg active EU management Identification & negotiation of IP in contracts Projects are tracked for IP foreground and back ground IP exploitation route is decided as research project ends Exploitation route protects the research base Strategy for company relationships Company needs are identified and matched to HWU expertise

15. Technology & Research Services

16. Knowledge Transfer Information People Technology Products Knowledge Transfer Knowledge Transfer Partnerships Life Long Learning / Continuing Professional Development Technology Transfer Technology Transfer Consultancy

17. Internal Decision Making: Fast and Clear Policy Framework & budget Director +Rector’s group Identification of commercial opportunity Research/Legal /IP team & TT Team Exploitation Routes & Valuations TT team Director + Internal/external panel Implementation & Commercial Terms TRS (me!)

18. Collaborative Research with Industry  Developed industrial strategy  Find industry partners & form strategic alliances  Create the legal framework & protect the IP  Negotiate the commercial terms  Project oversight & dispute resolution  Management information to University

19. Knowledge Transfer Providing solutions for industry Matching business needs to HWU expertise Sales of facilities/ services IP advisory service for SMEs Business development advice for SMEs Technology audits Creating funded research & training links

20. Continuing Professional Development (CPD) Identifying market opportunities and shaping strategy Marketing & setting financial targets Advice on pricing, organisation and marketing of CPD courses Hands on assistance Course completion certificates & evaluation questionnaire Management information to University

21. Consultancy Identifying market opportunities and shaping strategy Marketing & agreeing financial targets Establishing consultancy fee charges & other costs All contractual and legal matters Invoicing, cost recovery and fee payment to staff Project oversight and Dispute resolution

22. Heriot-Watt Trading Ltd Oversight on behalf of Board of Directors Recommendations on incorporation of units as companies Establishment of units as precursors to companies - quasi- incubators Recommendations on cessation of trade All contractual and legal matters

23. Legal & Intellectual Property (IP) Support All commercial contracts - legal responsibility, negotiation, drafting, recording Confidentiality / Non-Disclosure Agreements (NDA’s) Intellectual Property Provision of advice on Protecting IP - Patent, Design, Copyright, Know-how Patent Filing, (drafting patents) Design Registration & Prior Art Searches Management of the patent process

24. Transparent & Equitable  Standard processes for;  Cost identification  Management of staff KT activity  Revenue sharing  Equity participation in new companies  Secondment of Staff  Appointment of Directors to spin-outs  Conflicts of interest  Access to University facilities

25. Invention Preliminary Market Research Exploit Prior Art Search Summary of Invention Business Case Market Research Review Board Exploitation Route Identified & Progressed Exploitation Exploit Patent Application Drafted & Filed Updated Business Case Review Board Exploit Discuss with Inventor Yes No Technology Transfer Flow Chart

26. Heriot-Watt Results- Companies 1999-2005 Pre 1996: EdinburghEdinburghEdinburgh Business School Instruments Petroleum Active: 2Ei Anitec CAS Easier Events Helia Photonics Nitech Interactive University MicrostencilsNandi Pavement Technology Seebyte Sistech Scotweave Verbalis IceRobotics PowerPhotonicsSurCH Assisted Student Companies: AquapharmConjunctScotwave Sold: SenstechMedical Laser Technologies Liquidated: MultiverseTerahertzWeb4test

27. Benefits to the Inventor Financial Licensing income Equity in new company Director / Consultant Remuneration Furtherance of Research Financial income Additional resources (researchers, equipment) Contacts/network Reputation Enhanced Satisfaction of Commercialisation of Invention Broader Experience

28. Heriot-Watt Benefits - Maybe? Government policy requires/applauds Greater influence on government policy for R&D Staff better equipped to understand industry needs/ethos Students better equipped for working in industry Lo.o.o.o.ng term equity (and patent) investment Licence income - MIT = 3% of turnover! Industry more likely to listen and to value?

29. Benefits to the University Financial Equity – when we sell! License fees – if we can recover! Staffing Research Associates with new skills Attracts entreprenuerial staff Contacts Government / Funding Organisations / Industry Reputation & Mission As entrepreneurial centre = More attractive to future students & staff

30. Everyone Benefits A win-win situation Greater understanding More influence on government - together Increased skills levels - academic & industry More investment & more success Better quality of life