winning the wealth creation war for wales role of its universities engineering professors conference...
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Winning the Wealth Winning the Wealth Creation War for WalesCreation War for Wales
Role of its UniversitiesRole of its Universities
Engineering Professors Conference
April 2004
Wales has traditionally depended upon sunset industries, inward investment and grant aid for its economic well-being.
Is it possible to move away from this ‘dependency culture’ by a greater reliance on indigenous talent?
…………..and if so what should the role be of the Universities?
The Challenge GDP is 75% of EU average
23 listed Welsh Companies (0.8% of UK)
(5% of Population)
2500 new Companies needed per year to reach UK average (VAT Registrations)
Objective One
•£2.4 Billion
•Over the period 2001 to 2007
Universities as a Resource
80,000 Students 4000 Staff Diverse expertise Specialist Technical Services £80M annual Research income Capacity for Training and Consultancy
What can they Contribute?
Support Graduates Training Consultancy Projects Collab. R&D Enabling Grants
Deal Flow Alumni Entrepreneurs Intellectual Property Spin-Out Companies
Alumni Entrepreneurs
Alumni Companies
Osprey Metals Ltd CDR Ltd
The CAD Centre (UK) Ltd Rockfield Software Ltd
TeleDermatology (TDS) Ltd Swansea Tribology Services
Imagitech Computeraid Ltd
Earth Resources Ltd CJ Controls Ltd
Opinion Research Services SLS Ltd
Newbridge Networks A&A Electronics
Eidawn Materials Research Eidawn Software
Race Electronics Ltd
Some more
Fastlane
Starvision
SpaceBridge
Beam
SceneDouble
Coastform
Seden
Ind & Tech Serv. Pty Ltd
Palang Sophon
Breconridge
Crosskeys
Mitel
LTX Corporation
Bridgewater Systems
Cambrian
Elantec
Castleton
Newport Networks
Enfis Ltd
Acorn/Arm
Alumni Entrepreneurs
Some 30 to 40 out of Swansea alone Aggregate value, some $6Bn Mkt. Cap. 10’s of thousands of jobs created All Over the world No direct use of University IP No Women! More than 20 listed Companies!! Often not with the best degrees One in several hundred students
Intellectual Property
Some Views about Patenting Expensive to maintain VC’s often insist on a strong IP portfolio Rarely make large amounts of money Often used defensively (Blocks of IP
traded or cross-licensed) Best Protection of IP is to continue to
innovate
Make your own products obsolete before your Competitors do
Number of Patents Filed
0
5
10
15
20
25
30
35
2000 2001 2002 2003 2004
Year
Nu
mb
er o
f P
aten
ts
University IP
Licensing– Can be lucrative for Licensee and University– Not generally a huge potential for Job
Creation– Doesn’t address the low number of listed
companies
Spin Out Companies
How they are Conceived
Brilliant Research
Profitable
Business
Market Analysis
Profitable
Business
How Businesses Start (Silicon Valley Experience)
Transistor
Integrated Circuit
MicroProcessor
Silicon CompilerNeural Networks
Quantum Computing?
Carver Mead
The best Innovative ideas come from a coalescence of what is possible and what the market requires.
The process can inform and enrich University Research
StructurePreferred Option:
Bring together the following and form University-linked spin-out companies:
• Entrepreneurs Alumni, Staff, Incomers
• University IP (Assigned to Company in selected Sector)
• Finance (VC’s Bus.Angels’s and Grant Aid)
• Premises: Technium Centres
Support through Partnership(TECHNIUM)
Start-Up
BroadBand
R&DIP
Premises
GrantsVenture Capital
StaffBusiness Planning
Sale IPO
Fail Life- Style
Statistics
Year 00/01 01/02 02/03 03/04 04/05 05/06 06/07
Tot
Start
5 14 22 27 31 37 45
Fail 1 2 3 5 6 6 7
Left 4 12 19 22 25 31 38
XX Actual
XX Projected
Technium Programme
Cap. Cost
£M
Units Start Date
Technium 1 3.2 15 April 02
Technium 2 6.2 20 April 04
Digital 10.8 20 Jan 04
Optic 10 24 Nov 03
Sust. Techs 9.1 20 April 05
Auto 8.5 8 ~April 05
TOTALS 47.8 107
Technium 1
Over 18 Months: 17 Companies 75% Graduates 72% R&D Turnover (5M to 7.5M) 300% Increase in Staff
Breakdown of 38 companies in 2007
Life Style/Ongoing 29
Trade Sale 3
IPO 4
All Wales
Breakdown of 96 companies in 2007
Life Style/Ongoing 76 Trade Sale 8 IPO 12
ConclusionsTo meet the Challenge, Universities need to Raise awareness for future Entrepreneurs
to start their companies locally Show a greater understanding of the role of
their Intellectual Property Form Public/Private Partnerships to
provide support networks Recognise Entrepreneurial Success