1. Culture Shift! For Active Commercialization Cliff Zintgraff UTEN UT-Austin © 2007 Cliff Zintgraff & UTEN UT-Austin

2. Lots more patents Source: Science and Engineering Indicators 2007

3. Commercialization Gone Bad Patents ≠ Commercialization © 2007 Cliff Zintgraff & UTEN UT-Austin

4. What’s wrong with this picture? © 2007 Cliff Zintgraff & UTEN UT-Austin

5. What do these cases have in common? © 2007 Cliff Zintgraff & UTEN UT-Austin

6. Commercialization is a series of questions looking for an answer. You can’t find these answers if you never ask the questions by engaging the market. Answer Question © 2007 Cliff Zintgraff & UTEN UT-Austin

7. Culture Shift for Active Commercialization Which Happens More Often? Your IP is stolen Other IP crowds yours out Your team steals your idea Your team disappears Your venture idea is stolen The market doesn’t want your product Good, Healthy Fear © 2007 Cliff Zintgraff & UTEN UT-Austin

8. Culture Shift for Active Commercialization Who’s Your Customer? ProductVenture Business people Patients Consumers Scientists Technicians Scientists & developers Thought leaders Manufacturing partners Distribution partners Design houses Investors Give me your money. Give me stuff for free! © 2007 Cliff Zintgraff & UTEN UT-Austin

9. “Open Innovation” Clayton Christensen 1900 – 19701970 – present AggregatedDisaggregated Our time frameMarket’s time frame ProtectionPartnerships Silo of experts“Open innovation” XeroxApple © 2007 Cliff Zintgraff & UTEN UT-Austin

10. The Jolly Model for Technology Commercialization Vijay Jolly “Commercializing New Technology” © 2007 Cliff Zintgraff & UTEN UT-Austin

11. ImagineIncubateDemonstratePromoteSustain Bridges highlight the challenge in transitioning between stages as priorities and stakeholders change. Mobilizing Market Constituents Mobilizing Resources for Demonstration Mobilizing Assets for Delivery Mobilizing Interest and Endorsement The Jolly Model © 2007 Cliff Zintgraff & UTEN UT-Austin

12. Here is a different way to think about the Jolly model. ImagineIncubateDemonstratePromoteSustain The Triangle gives us a visual way to think about the transition period. Mobilizing Market Constituents Mobilizing Resources for Demonstration Mobilizing Assets for Delivery Mobilizing Interest and Endorsement © 2007 Cliff Zintgraff & UTEN UT-Austin

13. To cross strong, you start sooner, spending more time gathering stakeholders and resources for the next stage. ImagineIncubate Mobilizing Interest and Endorsement In this model, the height at which you cross the bridge represents a trade-off. Cross here? To cross “higher” means going into the Triangle stronger, but more effort is needed. Cross stronger Cross weaker No crossing at all © 2007 Cliff Zintgraff & UTEN UT-Austin

14. Imagine Incubate In the Imagine stage, you are building assets to take into the Triangle. The Equity Meter tracks the founder’s stake & control of the company. Prototype Team Knowledge Transfer Engineering Design Collaborator contacts Investor contacts Market Analysis Product Roadmap Founders Staff Prospects Collaborators Investors Legal expenses, office space, trip expenses, cards and collateral, web site, trade shows, software, hardware, & development services can impact equity … Founders and staff build the collection of corporate assets … ASSETSASSETS Cross no higher than here. Who’s Involved? © 2007 Cliff Zintgraff & UTEN UT-Austin

15. We enter the Triangle with our corporate physical and knowledge assets & with our acquired level of strength, ready to seek interest and endorsement. Sales support (time, travel, collaterals), partner equity positions, staff compensation, and investments cost us … Prototype Team Knowledge Transfer Engineering Design Collaborator contacts Investor contacts Market Analysis Product Roadmap Founders Staff Prospects Collaborators Investors Equity Meter Supporting Assets 1 5 3 4 8 6 9 10 7 Enhanced Assets © 2007 Cliff Zintgraff & UTEN UT-Austin

16. Imagine Incubate Founders Staff Customers Collaborators Investors Equity Meter Strength Gap Stage 2 Arrival! Strength Lost Equity Mobilizing Interest and Endorsement © 2007 Cliff Zintgraff & UTEN UT-Austin

17. Interactive ImagineIncubateDemonstratePromoteSustain Mobilizing Market Constituents Mobilizing Resources for Demonstration Mobilizing Assets for Delivery Mobilizing Interest and Endorsement What stage are you at? What can you do to get to next stage? What are the costs and risks in those actions? © 2007 Cliff Zintgraff & UTEN UT-Austin

18. Implications of the Model? For Inventors Recruiting Support? For Technology Transfer Offices Strategies in Managing Their Portfolio? For Intellectual Property Strategies? For Product Development Strategies? For Expanding or Limiting Ownership? For Early Stage Market Research? © 2007 Cliff Zintgraff & UTEN UT-Austin

19. Implications of the Model? Inventors How do you balance IP and idea protection (security) with making your idea and venture happen (action)? Technology Transfer Offices What are the implications for managing your technology portfolio? Entrepreneurs How do you balance recruiting support with maximizing your own equity? © 2007 Cliff Zintgraff & UTEN UT-Austin

20. University Technology Enterprise Network To begin: Network of 15 Portuguese universities Some of their technology transfer offices, research centers, incubators National Innovation Agency IC 2 Institute, UT Austin Entrepreneurial projects and research Accelerate commercialization © 2007 Cliff Zintgraff & UTEN UT-Austin

21. Source: R. Goldsmith

22. Commercialization Gone Good © 2007 Cliff Zintgraff & UTEN UT-Austin

23. RapidLook “Voice of the Market” 8-12 Interviews with Potential Validators, Customers, End Users and Partners Recommendations and Market Strategies © 2007 Cliff Zintgraff & UTEN UT-Austin

24. Culture Shift! For Active Commercialization Cliff Zintgraff UTEN UT-Austin © 2007 Cliff Zintgraff & UTEN UT-Austin