The Art and Science of Technology Transfer

Praise for The Art & Science of Technology Transfer "Phyl Speser's personality comes across in the text-complicated, intrigued, highly rational, insightful, rich in context, and fun. She had me smiling throughout. This work represents the next chapter of the technology transfer profession's development, where it will be all about getting to market with a studied awareness of value. Phyl gives us the tools to get there with a great read, just the focus we are needing in the profession." —Jill A. Tarzian Sorensen, JDExecutive Director, Johns Hopkins Technology Transfer, The Johns Hopkins University "Phyl Speser is one of the pioneers in developing the modern practice of technology transfer and in The Art & Science of Technology Transfer, she shares her experiences and philosophy in a well-written, highly readable book that is packed with case studies of both success and failure." —Ashley Stevens, Director, Office of Technology Transfer, Boston University "This readable book is a must for anyone wanting to look at the technology transfer process from a novel viewpoint. Rather than just recite the nuts and bolts of the process, it illustrates theoretical concepts with real world, practical examples. Any reader will come away with new and useful ways of looking at, and doing, this business." —Kenneth H. Levin, PHD, Deputy DirectorUniversity of Chicago Office of Technology & Intellectual Property (UCTech) "An amazing compendium of philosophy, science, and practical experience that converge to form, literally, the art and science of technology transfer. On any given page, you may find a quote from Plato, a mathematical formula, an intriguing anecdote by the author, or a practical 'how-to' statement. It's written in a very engaging style that keeps you turning from page to page . . . there's enough material in this book to launch a college course on Technology Transfer-nothing is left out!" —David Snyder, Vice President-Technology Commercialization Science Applications International Corporation (SAIC) "This is an excellent introduction to sorting out the complex world of technology transfer, eminently useful to both practitionersand students. The text is thorough, filled with the practical examples, details, and guidelines useful to learn and practice this often-arcane subject, while never losing sight of an overarching paradigm for getting new technology out of the lab and into the market. I am certain that other teachers will find it as valuable as I have." —Lawrence Aronhime, Faculty Associate and Lecturer, The Johns Hopkins University, 2005 recipient Johns Hopkins Alumni Association Excellence in Teaching Award "A clear and entertaining presentation of the complexities of technology transfer and intellectual property, this book provides usable, practical information to students and practitioners on every page. The Art & Science of Technology Transfer provides a well-crafted immersion in the processes and practices of moving ideas into the marketplace." —Phil Weilerstein, Executive Director,National Collegiate Inventors and Innovators Alliance (NCIIA)

Acknowledgments xiii About the Author xv Preface xvii Introduction xxi Part One The Game of Technology Transfer Chapter 1 The Pieces 3 Introduction 3 The Problem with Models about Human Behavior 4 Constructs 6 Portraying Constructs 7 Deals 7 Technologies 15 Practices 23 Players 33 Conclusion 38 Chapter 2 The Board 39 Introduction 39 Arenas 39 Channels and Messages 42 Supply Chains 44 Users and Buyers 48 Competitors 55 Markets 59 Stakeholders 64 Conclusion 67 Chapter 3 Strategies 69 Introduction 69 Technology Niches 70 Nash Equilibriums 72 Making Technology Conducive for Nash Equilibriums 74 Objectives 85 Tactics 96 Competition 99 Windows of Opportunity or Being Just-in-Time 100 Conclusion 102 Part Two Market Research Chapter 4 Finding the Customer 105 Introduction 105 What We Have to Sell 105 Functionality 105 Characteristics 114 Features 117 Product, Process, or Service 118 Finding the Application 121 Finding the Customer 133 The End User 133 Buyers 139 Conclusion 144 Appendix A: Intellectual Property 146 Patents 147 Trade Secrets 149 Trademarks 149 Copyrights and Masks 150 IP Control 150 Chapter 5 Competing Technology 155 Introduction 155 Redundancy 156 Relation to the Dominant Design 159 Who Is Selling? 163 Who Is Emerging? 165 Time 167 Conclusion 171 Chapter 6 Markets 173 Introduction 173 Market Barriers 174 Market Forces 180 Estimating Market Size 189 Estimating Market Share 197 Conclusion 200 Part Three Strategy Chapter 7 Positioning the Technology for the End User 203 Introduction 203 Take-Off 204 Umpf 205 Goals 209 Competitive Advantage 214 Performance 216 Ease of Use 219 Price 223 Time 227 Window of Opportunity 228 Value Propositions 232 Conclusion 235 Appendix A: Technikos 237 Using Web Search to Develop and Test Hypotheses 237 Interviewing to Test Hypotheses 240 Appendix B: Presenting Your Technology 242 Pre-Nondisclosure 242 Post-Nondisclosure (But Pre-Deal) 242 Investor Presentations 243 Post-Deal (Fully Executed Contract) 243 Chapter 8 Launch Tactics 245 Introduction 245 SWOTs 246 1. Pick the Positioning 248 2. Determine the Strengths and Weaknesses 249 3. Determine the Opportunities and Threats 251 4. Look at the Intersection 254 Looking Forward: Launch Tactics and Finding the Target 260 Channels and Messages 262 Rhetoric and Messages 265 Conclusion 267 Part Four Doing Deals Chapter 9 Finding the Target 271 Introduction 271 Market Alignment 272 Technology Alignment 282 Alignment on Capabilities 290 Attitude toward Risk 291 Conclusion 294 Chapter 10 Valuing the Technology 295 The Basics: Discounted Cash Flow 296 Approaches to Valuation 297 Not Stupid Methods 297 Stupid Methods 300 Non-Revenue Value and Its Valuation 301 Revenues 302 Expenses 310 Quick Recap 314 Risk 315 Conclusion 324 Appendix A: Why Real Options Are a Waste of Time 326 Chapter 11 Doing the Deal 329 Planning for Negotiations 332 Relationships 333 Intellectual Asset Package 341 Economics 344 Planning the Game in Extensive Form 349 Negotiating 351 Setting the Stage 351 Pulling It Off 356 Conclusion 360 Chapter 12 The Twelve-Step Program 363 Index 369