1. Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha Wulff marsha@wulffcapital.com October 2006

2. Traditional Product Commercialization Major co from a G7 country develops intellectual property associated with Products G7 co either synthesizes materials for products or sources raw materials from EM G7 co captures value adds from manufacturing through product commercialization Some finished product is donated/sold to EM, but funding is always an issue Donated &/or Sold to Emerging Market (EM) Product Developed & Refined in G7

3. Traditional Commercialization Value Addition Value AdditionG7EM Discovery, Recognitionx Intellectual Property Rightsx Regulatory Licensesx Product Development/Refinement x Market Research & Planningx Manufacturing/Processingxx Global Sales & Distributionxx Multi-national Operationsxx Corporate Ownershipx

4. Traditional Commercialization Systemic Problems EM does not develop economic strength to buy health products EM health needs are not met because EM cannot pay for G7 health products Neglected diseases prevent EM economic development Cycle of poverty continues, as do social, political & economic unrest EM does not develop economic strength to buy health products EM health needs are not met because EM cannot pay for G7 health products Neglected diseases prevent EM economic development Cycle of poverty continues, as do social, political & economic unrest

5. New Global Dynamics / EM EM Diaspora have earned degrees from top G7 universities EM Diaspora have attained career distinction in leadership roles at major firms EM Diaspora are establishing new firms in their old homelands Case Study of Silicon Valley: The New Argonauts: Regional Advantage in a Global Economy, by Saxenian EM Diaspora have earned degrees from top G7 universities EM Diaspora have attained career distinction in leadership roles at major firms EM Diaspora are establishing new firms in their old homelands Case Study of Silicon Valley: The New Argonauts: Regional Advantage in a Global Economy, by Saxenian Communication Technology Advancements permit efficient global interaction

6. New Global Dynamics / G7 Major corporations now recognize their growth depends upon acquiring rights to innovations from smaller, more entrepreneurial firms. Major corporations now accept a Flat World, and rely on collaborations with entrepreneurial firms in China & India to remain competitive. These collaborations are usually orchestrated by EM Diaspora. Major firms recognize EM citizens as potential customers, Bottom of the Pyramid. Major corporations now recognize their growth depends upon acquiring rights to innovations from smaller, more entrepreneurial firms. Major corporations now accept a Flat World, and rely on collaborations with entrepreneurial firms in China & India to remain competitive. These collaborations are usually orchestrated by EM Diaspora. Major firms recognize EM citizens as potential customers, Bottom of the Pyramid.

7. Collaborative Commercialization Product Development EM Co Collaborates w/ G7 Co for Global Commercialization EM Co Discovers & Develops Product 1.Entrepreneurial EM Co: Establishes branded product, Proves up market demand, and Secures government incentives for new jobs. 2.EM Co collaborates with Major G7 firm to: Refine product for global markets; Market co-branded product; Ramp up manufacturing; and Distribute globally Diaspora Assistance

8. Collaborative Commercialization Value Addition Value AdditionG7EM Discovery, Prospect Identificationx Intellectual Property Rights,x Regulatory Licensesxx Product Development/Refinementxx Market Research & Planningxx Manufacturing/Processingxx Global Sales & Distributionxx Multi-national Operationsxx Corporate Ownershipxx

9. Collaborative Commercialization Resolves Systemic Problems EM develop economic strength to buy own health products Health needs of EM are addressed because they can make and pay for appropriate health products EM SMEs gain access to larger corp growth resources Improved health promotes EM economic development Cycle of poverty is broken through self sufficiency Empowerment leads to social, political & economic stability EM develop economic strength to buy own health products Health needs of EM are addressed because they can make and pay for appropriate health products EM SMEs gain access to larger corp growth resources Improved health promotes EM economic development Cycle of poverty is broken through self sufficiency Empowerment leads to social, political & economic stability

10. The EM Opportunity … Current EM Innovation Pipeline: University Innovation Centers Public Research Centers Business Incubation Centers Private Enterprise Intellectual Property Attorneys Seed Stage Venture Funds Licensing Agents Development Funds Development Agencies NGOs & Civic Organizations Professional Associations Current EM Innovation Pipeline: University Innovation Centers Public Research Centers Business Incubation Centers Private Enterprise Intellectual Property Attorneys Seed Stage Venture Funds Licensing Agents Development Funds Development Agencies NGOs & Civic Organizations Professional Associations Diaspora Assistance

11. Research Trials Commercialization Expansion M&A IPO Time Funding Constriction Point Funding SourcesProduct Development Stage Universities R&D Centers NGOs Founder, Friends & Family VC Corporate Contracts Private Equity Banks Public Markets The Problem: Product Commercialization Funding

12. The Answer: Diaspora Bridge Gap to Venture Capital Venture Capital backed successful, Diaspora-led Product Commercializations Case Studies: Financial Systems, Corporate Investment in Innovation and Venture Capital by Bartzokas and Mani, 2004 Ex: India ITC companies Diaspora Assistance

13. The Need: A Hub that Sustainably Links Commercialization Resources EM Innovation Systems Development Agencies Industry Leaders Global Health NGOs Venture Capital Funds Product Commercialization Entity Diaspora Assistance

14. The Sustainable Solution Product Commercialization Portfolios G7 Investor & Industry Resources Foundations Venture Funds Merchant Banks Investment Banks Multilateral Agencies Industry Associations Social Investor Groups Development Agencies EM Innovation & Enterprise Resources Innovation Centers Research Centers Incubation Centers Intellectual Property Attorneys Seed Funds Development Funds Development Agencies NGOs & Civic Organizations Diaspora-Led Product Commercialization Portfolio Program In-Licensing Out-Licensing Manufacturing Sales/Distribution Development Partnering Collaborative Commercialization Entity

15. Collaborative Commercialization Entity; The Bridge to Private Sector Expertise… Administers Product Commercialization Program Business Administration: Fiscal oversight, Metrics, Reports, Communications, Compensation Funding Sources: Initially NGOs & Govt Loan/Grant Funding Then Profit Sharing Revenues Incents Private Sector with Risk Reduction strategies: Supplements Product Development Costs Provides Experts to Launch & Market Products Negotiates Corporate Revenue Sharing Contracts Deploys Private Sector Expertise: Interfaces with Diaspora, Industry and Funding Networks Funds cross-functional Team of Experts to assist Portfolio Cos Conducts EM SME Management Training Boot Camps Administers Product Commercialization Program Business Administration: Fiscal oversight, Metrics, Reports, Communications, Compensation Funding Sources: Initially NGOs & Govt Loan/Grant Funding Then Profit Sharing Revenues Incents Private Sector with Risk Reduction strategies: Supplements Product Development Costs Provides Experts to Launch & Market Products Negotiates Corporate Revenue Sharing Contracts Deploys Private Sector Expertise: Interfaces with Diaspora, Industry and Funding Networks Funds cross-functional Team of Experts to assist Portfolio Cos Conducts EM SME Management Training Boot Camps

16. Product Commercialization Portfolio (PCP) Program Structure Diaspora

17. How to get Started Public Sector & NGOs… These Development Sponsors: Foundations Multilateral Agencies Development Agencies Provide Initial Grants & Loans to Establish Collaborative Commercialization Entity To Establish & Manage Product Commercialization Portfolio Program In-Licensing Out-Licensing Manufacturing Sales/Distribution Development Partnering Diaspora Assistance

18. How to get Started Private Sector… Collaborative Commercialization Entity Taps these Private Sector Resources: Ethnic Professional Associations (TIE) Venture Capital Industry Socially Responsible Corps Industry Biz Dev Depts For Experts in: Intellectual Property Rights Corp Contract Negotiations Product Design Refinement Market Research Industry Networking Product Launch Business management Market Access To Commercialize Indigenous Products: Manufacturing Major Sales Contracts Global Distribution Additional Product Line Extensions Sales Revenues In-Licensing Out-Licensing Manufacturing Sales/Distribution Development Partnering Diaspora Assistance

19. Commercialization Example BioResources International, Inc. BRI Diaspora Management Team, Americans from Ghana, Ivy- league advanced degrees in Science & Business Co adds value to plant-based health products grown in Africa Developing low-cost pediatric anti-Malarial drug Needs $5M loan for an extraction facility & product launch

20. Collaborative Commercialization, The Diaspora-based Solution … Indigenous Innovations + Development Funding + Commercialization Resources = Sustainable Economic Development Indigenous Innovations + Development Funding + Commercialization Resources = Sustainable Economic Development marsha@wulffcapital.com www.wulffcapital.com 214-632-7813