October 5, 2004 FPTT 2004 TechExpo 1

Ideas vs Intellectual Property:

The Carleton University Technology Transfer Approach:

“Building True Innovation Capacity Based on Talent, Knowledge and Ideas”

October 5, 2004 FPTT 2004 TechExpo 2

Building Innovation Capacity – What Foundation?

IP-centric Idea-centric

Narrow focus

Closed/proprietary

Red tape/Process driven

Push-oriented

Overvaluation

Flexible

Open for sharing

Nimble/Opportunity driven

Pull/Push

Do a deal!

October 5, 2004 FPTT 2004 TechExpo 3

Presentation Overview:

Current Commercialization Debate

University Approaches to IP

Carleton Approach

A Look At Google

October 5, 2004 FPTT 2004 TechExpo 4

Commercialization Debate

“There is no shortage of opinions and ideas on what should be done … “

October 5, 2004 FPTT 2004 TechExpo 5

Commercialization Debate (2):

Gaps, gaps and more gaps …

Billions invested in research, but …

Role of private and public sectors

Risk financing is necessary but is it sufficient?

What are the best approaches?

October 5, 2004 FPTT 2004 TechExpo 6

Commercialization Debate (3):

2004 Federal Budget

2004 Ontario Budget

NRC network of innovation/commercialization centres

NSERC/CIHR Programs

Regional initiatives (eg. TEC Edmonton, MaRS)

October 5, 2004 FPTT 2004 TechExpo 7

University Approaches:

“In general, Canadian tech transfer functions and practices tend to be IP-centric and less oriented/integrated to broader regional economic development objectives.”

October 5, 2004 FPTT 2004 TechExpo 8

University Approaches (2)

UTI (Calgary), TEC Edmonton, IDC (Victoria), Innovations Foundation (Toronto), Genesis Group (St. John’s);

University Industry Liaison Offices (UBC, Waterloo, Univ of Ottawa, etc.);

Less Successful Attempts: GUARD Inc. (Univ of Guelph, UST Inc, (Univ of Saskatchewan) and CUDC, (Carleton University).

October 5, 2004 FPTT 2004 TechExpo 9

University Approaches – Observations:

Performance metrics (license income, patents, number of spin-offs) unintentionally motivate ILO’s to adopt a “picking winners” approach. Revenue generation will prevail;

VC role in university research commercialization is overrated; and

University role in regional innovation systems not well-understood (i.e., island in the community).

October 5, 2004 FPTT 2004 TechExpo 10

A Case Study - Google

- Could Canada Produce a Google?

“In essence, the research resulted in a family of algorithms that assigned numerical weightings to web pages indexed by a search engine”

I wouldn’t have bet on it!

October 5, 2004 FPTT 2004 TechExpo 11

A Google History – Key Inflection Points

NSF Project – DLI

Backrub developed

Stanford ILO Meeting

Stanford files patent

Licensing fails

Google founded

$1M seed round

$25M A round – Tier 1 VCs

1995 1996 1998 1999

October 5, 2004 FPTT 2004 TechExpo 12

Google in Canada?

Smarts to innovate (we can compete)

How would ILO handle disclosure? (patent/license prospects dim … too competitive … no chance!

Would graduate students be encouraged to start company?

If so … what would be the odds of getting funds from the right people? … without killing the entrepreneurs

Tier 1 VCs make a difference (it’s not just funding!)

October 5, 2004 FPTT 2004 TechExpo 13

“IP is a narrow sub-set of a university’s capacity for innovation”

October 5, 2004 FPTT 2004 TechExpo 14

University Intellectual Property – Different Flavours

Most IP incremental (basis for partnering)

Some IP is product (basis for licensing)

Rare IP is platform (basis for spin-off)

October 5, 2004 FPTT 2004 TechExpo 15

Carleton University Approach

Oriented to regional economic development

Culture of innovation and entrepreneurship more important than IP management

Tech transfer activities aligned with academic goals

Ties to local business/technology networks are critical

ILO is an access point to Carleton community (experts, facilities and programs)

October 5, 2004 FPTT 2004 TechExpo 16

Poster of Technology Companies

October 5, 2004 FPTT 2004 TechExpo 17

Carleton Foundry Program

“Helping to stimulate an innovation and entrepreneurial culture on campus by encouraging faculty, students and staff to act on their ideas”

October 5, 2004 FPTT 2004 TechExpo 18

InnovationDevelopment

Fund

StudentInternships

CommunityLinkages

October 5, 2004 FPTT 2004 TechExpo 19

References:

“Technology Transfer and Commercialization: Their Role in Economic Development, US Department of Commerce, Aug 2003”

“Innovation U: New University Roles in a Knowledge Economy, Southern Growth Policies Board, 2002”

October 5, 2004 FPTT 2004 TechExpo 20

Thank you !

P.S. we will be announcing the creation of a new position at Carleton for an Industry Partnership Officer

P.S. (2) AUTM 2004 Conference in Quebec City, Nov 10-13th, 2004