Report of the MTCP-MTDC Technology Commercialisation

Transcription

Report of the MTCP-MTDC Technology Commercialisation Workshop for Practitioners
from African Countries held from 23rd – 27th June, 2014 in Malaysia
By Prof. D. K. Isutsa and Prof. S. M. Kagwanja
Deputy Vice-Chancellors - ARSA & AFPD
Chuka University, P. O. Box 109-60400, Chuka
Presented to the Council and Senate of Chuka University
P. O. Box 109-60400, Chuka
© Chuka University, 30th June, 2014
Report of the MTCP-MTDC Technology Commercialisation Workshop for
Practitioners from African Countries held from 23rd – 27th June, 2014 in Malaysia
Page 1 of 42
EXECUTIVE SUMMARY
The five-day workshop was organized by the Government of Malaysia through the Malaysian
Technology Corporation Programme (MTCP) and the Governments of the partnering five (5) African
Countries through their respective Ministries of Foreign Affairs. The objective of the workshop was to
promote, enhance and share technology and commercialisation information on intellectual property,
entrepreneurship development and funding of commercialisation activities, as well as marketing and
business validation tools both locally and abroad. A total, of 29 participants from Sudan, Kenya, Uganda,
Tanzania, and South Africa attended.
The Training was conducted by the Malaysian Technology Development Corporation (MTDC). The
MTDC is a company wholly owned by the Government of Malaysia and is in the business of Grant
Management, Advisory and Nurturing Services. The Company was set up by the Government of
Malaysia in 1992 to spearhead the development of technology business in Malaysia. Its role is to promote
the commercialization of local research and invest in technology-based ventures, as well as to groom new
generation of Technopreneurs through comprehensive nurturing services.
Since the 7th Malaysian Plan (MP), MTDC has also been entrusted by the Government to manage grants
specific for Malaysian companies to increase their technology content via commercialization of local
research and development and/or acquisition of foreign technology. The grants are:
1. Technology Acquisition Fund (TAF)
2. Commercial Research and Development Fund (CRDF)
3. Business Start-up Fund (BSF)
4. Business Growth Fund (BGF)
The MTDC also manages Technology Centres, which focus on various industry clusters and are located at
several universities and research institutes. The five Technology Centres/Parks are:
1. UPM-MTDC Technology Centre: Focuses on Biotechnology & ICT
2. UKM-MTDC Technology Centre: Focuses on Biotechnology
3. UTM-MTDC Technology Centre: Focuses on Life Sciences & Advances in Engineering
4. FRIM-MTDC Technology Centre: Focuses on Life Sciences & Herbal Products
5. UiTM-MTDC Technology Centre: Focuses on Industrial Products, Art & Design
These centres enable academia and industry to collaborate and synergise (leverage on each other‟s
strengths), whilst accelerating commercialization activities. The achievements of these Technology
Centres are evidenced by the:
1. Creation of job opportunities for knowledge-based workers
2. Increased penetration of Malaysian-made products to overseas market
3. Facilitation and creation of Intellectual Property and its successful commercialization
The topics in the workshop involved:
1. Presentation of national policies and strategies in the MTDC‟s 20-year experience in
commercialization of local research outputs through start-ups and the development of Small and
Medium Enterprises (SMEs).
2. Sharing of knowledge from the most successful strategies in incubation and incubator
management, developing and nurturing start-ups and spin-off companies.
3. Sharing of knowledge on smart networks between MTDC and collaborating Universities,
Institutes, Agencies responsible for developing technology commercialization and SMEs in
targeted countries.
4. Presentation on opening and extending of bilateral market access of strategic technologies
between MTDC‟s recipient companies and collaborating countries.
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The titles and presenters of the workshop were:
1. Business Modeling and Customer Segmentation (by En Noor Amal)
2. Funding for Tech Commercialisation (by En Mohammad Hazani Hassan)
3. IP Commercialisation from the Universities (by Prof Rohazar Wati Zualcobley)
4. Entrepreneurship Development Locally and Globally (by Pn Norhayati Md Taib)
5. The Process of Market Validation (by En Azmi Said)
6. Technology Commercialisation Process & Leveraging of IP (by Dr Fatimah Amin)
7. Scopes of Investment Due Diligence (by En Noor Amal)
8. MTDC‟s 20 yr Experience in Commercialisation (by Pn Mariamah Hj Daud)
9. Technology Transfer – the FRIM Experience (by En Mohd Shahidan Arshad)
10. Incubation – Experience Sharing by Tenant (by En Ramdan Parman)
11. Symbiosis Graduate Entrepreneurship Programme (by En Mair Nasser Zainal Abidin)
12. Symbiosis Entrepreneur Experience (by Dr Khairul Bahrin)
13. Commercial R&D Fund (CRDF) – (En Imran Ariff Ibrahim)
14. Business Growth Fund (BGF) & Business Startup Fund (BSF)–(En Idjarmizuan Ibrahim)
CONCLUSION
It became evident and apparent from the workshop that the secret behind the success of the Malaysian
technology commercialization and industrialization model is extensive inculcation of this culture,
funding, organizational structure, attention to detail, training, mobilization, collaboration, teamwork,
coordination, synergism, integration, resilience, brilliance, and commitment of staff and government at
each and every level, department, centre and unit to enhance focusing and achievement of expected and
profitable results. Success is also helped by the mix of passion, dedication, knowledge, technology,
innovation, conviction, support, investment and nurturing. Consequently, Malysia has industrialized by
moving from agriculture-led economy through resource-led economy to knowledge-led economy.
RECOMMENDATIONS
Chuka University and the Government of Kenya should seriously borrow lessons and strategies from the
Malaysian model and implement the same to actualize their Visions and Plans.
1.
Drive to technology commercialization has to start with a Government call to action and then
cascade the action to selected universities, research institutes, industrial and economic players
that will receive and have intensive support, funding and management structures.
2.
The Government to:
(1) Prepare a roadmap/policy for implementation of the Science and Technology Training
Strategy in the Vision 2030 and disseminate it to universities and industries in the country.
(2) Establish Kenya Technology Development Corporation (KTDC) and place it under the
Ministry of Foreign Affairs & Trade to emulate the Malaysian Technology Development
Corporation (MTDC); or mandate NACOSTI to do.
(3) Establish or help establish Research & Technology Parks in Public Universities and Institutes
by availing funds.
(4) Assist Chuka University to establish the proposed Research & Technology Park.
(5) Link Research & Technology Parks (sources of technology) to the KTDC that will
manage/source funds & avail expert consultants & advisory services.
3.
KTDC to:
(1) Vigorously link research & technoparks to industries & companies to uptake technology.
(2) Diversify fund types to include:
(a) Science Fund (SF) for basic & applied research;
(b) Technology Fund/Innovation Fund (TF/IF) for prototype development;
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(3)
(4)
(5)
(6)
(7)
(8)
(9)
(c) Technology Acquisition Fund/Commercial Research Fund (TAF/CRF) for
incubation/growth stages;
(d) Business Start-Up Fund (BSF)/Business Growth Fund (BGF) for commercial value
realization;
(e) Business Expansion Fund (BEF) for going International.
Develop policies to govern everything it will be undertaking in support of technology
commercialization.
Inculcate the culture of Technology Commercialisation in Government and Universities.
Train researchers in entrepreneurship and Business Plan making.
Nurture and mentor researchers in universities in technology commercialization.
Recruit young graduates to nurture and mentor them into technology entrepreneurs
(technopreneurs).
Establish graduate symbiosis programmes in Research and Technology Parks.
Assist Chuka University to operationalize the Science & Technology Research Park.
4. The Chuka University Research & Technology Park to establish:
(1) Research Management Centre (for acquisition & maintenance of research facilitiesequipment, laboratories, workshops, garages).
(2) Technology Transfer Office (TTO)/Centre for Collaborative Innovation (CCI).
(3) Technology Transfer Company for commercialization of research outputs/services.
(4) Management of Intellectual Property Rights (IPR) in the TTO.
(5) Technology/Proposal Commercialization:
(a) Evaluation Committee
(b) Technical Committee
(c) Approval Committee
(6) Recruit suitably qualified and synergized/diversified staff for the Research & Technology
Park (artists, scientists, IPR lawyers, strategists, business planners/promoters, marketers).
(7) Develop attractive IPR proceeds sharing Policy.
(8) Customise KTDC policies to operationalise the Research & Technology Park.
(9) Inculcate the culture of Technology Commercialisation in the Universities through
intensive sensitization, awareness creation and provision of incentives.
(10) Identify and select technologies to be conducted in the Research & Technology Park:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Pharmaceuticals
Natural Products/Herbal medicine
Clinical diagnostic kits
Biotechnological products
Environmental monitoring tools
Water and sanitation treatment
Mineralogy and Petrology
Agro-food and agro-feed processing
(9) Building materials/fine art designs
(10) Industrial electronics/instruments/designs
(11) Development of pests management tools
(12) Renewable/clean energy
(13) Information and Communication Technology
(14) Production fabrication of new materials
(15) Telecommunications and mobile technology
(16) Meteorology and weather forecasting
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DESCRIPTIONS
Petronas SkyBridge: Twin Towers built to commemorate the petroleum industry.
Foreign Ministry (Wisma Putra): Host of MTCP & MTDC.
Putrajaya: Administrative City with Government offices & Government workers residences.
Cyberjaya: Technology City/Malaysian Super Corridor (MSC) 50 kmx15 km international companies.
UKM-MTDC Incubation Centre: National University of Malaysia focusing on Biotechnology & ICT.
FRIM-MTDC Incubation Centre: Forest Research Institute of Malaysia for Biotech & Herbal Tech.
Spin-off Company: local Public and Private University/Government Research Institution ownership.
Start-up Company: A newly set up SME specifically for commercialization of a specific project.
Commercialization: Provides return to public investment in research; turns R&D&I into profits.
Entrepreneurship: turning ideas into wealth.
Innovation = technology + entrepreneurship; Innovation = f (creativity, implementation).
Innovation = successful implementation of creative ideas through addition of highest value.
Creativity = novel and useful ideas production by an individual or small group of individuals teaming up.
Implementation = methods used to put the creative ideas into practice.
Technology commercialization = process of transforming an idea or scientific discovery into new or
improved product, process or service.
Technology = improvements in product, process, marketing or organization.
ACRONYMS
BEF: Business Expansion Fund
CEO: Chief Executive Officer
CSR: Corporate Social Responsibility
CTT: Cell Tissues Technology
FRIM: Forest Research Institute of Malaysia
GITS: Government-Industry Technology Services
GRI: Government Research Institute
IP: Intellectual Property
KLIA: Kuala Lumpur International Airport
MIDA: Malysian Industrial Development Authority
MYIPO: Malysian Intellectual Property Office
NACOSTI: National Commission for Science, Technology & Innovation
PPU: Public & Private University
R&D: Research and Development
RM: Malaysian Ringgit (currency), RM3.2:USD1
SSC: South-South Cooperation
TCDC: Technical Cooperation among Developing Countries
TTC: Technology Transfer Company
TTO: Technology Transfer Office/Centre for Collaborative Innovation
UKM: National University of Malaysian (Universiti Kebangsaan Malaysia)
UPM: Agricultural University of Malaysia
UTM: Technology University of Malaysia
UiTM: Technology University of Mara
VC: Venture Capital
ACKNOWLEDGEMENT:
All the information used to compile this report belongs to the original authors and sources that have been
cited under each chapter and item, as appropriate.
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1. INTRODUCTION
The workshop was organized by the Government of Malaysia through the Malaysian Technology Corporation
Programme and the Governments of the participating five (5) African Countries through their respective Ministries
of Foreign Affairs. The training was conducted by the Malaysian Technology Development Corporation.
1.1. MTCP Overview
The Malaysian Technical Cooperation Programme (MTCP) was first initiated at the First Commonwealth Heads of
Government Meeting (CHOGM) for Asia Pacific Region in Sydney in February 1978. It was officially launched on
7th September 1980 at the Commonwealth Heads of State Meeting in New Delhi to signify Malaysia‟s commitment
to South-South Cooperation, in particular Technical Cooperation among Developing Countries (TCDC).
In line with the spirit of South-South Cooperation (SSC), Malaysia through the MTCP shares its development
experiences and expertise with other developing countries. The MTCP was first formulated based on the belief that
the development of a country depends on the quality of its human resources. The programme forms part of the
commitment of the Malaysian Government towards the promotion of technical cooperation among developing
countries, strengthening bilateral cooperation, & nurturing collective self-reliance, among developing countries.
In a move to further enable MTCP to spread its wings widely, the Malaysian Government decided to place the
MTCP under the jurisdiction of the Ministry of Foreign Affairs from 1 st January, 2010 to provide the synergy and
support it required in line with the Malaysia‟s Foreign Policy. As the focal point for the MTCP, Wisma Putra is
responsible for formulating policies, funding, coordination, monitoring and evaluation of the MTCP Programmes.
The MTCP emphasises the development of human resources through the provision of training in various areas
which are essential for a country‟s development such as public administration, good governance, health services,
education, sustainable development, agriculture, poverty alleviation, investment promotion, ICT and banking. More
than 100 short-term specialized courses are offered by more than 50 MTCP training institutions, many of which are
Centres of Excellence for training. Since its launching, more than 25,000 participants from 140 countries have
benefited from the various programmes offered under the MTCP.
Objectives of MTCP:
 To share development experience with other countries;
 To strengthen bilateral relations between Malaysia and other developing countries;
 To promote South-South Cooperation (SSC);
 To promote Technical Cooperation among Developing Countries (TCDC).
Types of Assistance:
 Short-term specialised courses
-Long-term courses (Scholarships)
 Study visits and attachments
-Services of experts
 Socio-economic development projects
-Supply of equipment and materials
For more details, kindly refer MTCP Official Portal at http://mtcp.kln.gov.my.
1.2. MTDC Overview
The MTDC is a company wholly owned by Malaysia and is in the business of Grant Management, Advisory and
Nurturing Services. MTDC has achieved the ISO 9001:2008 accreditation and is a member of the National Business
Incubation Association (NBIA) since 2007. The company was established in 1992 to promote the adoption of
technologies by local companies via commercialisation activities of local inventions or acquisition of foreign
technologies. MTDC has been the key player in commercialisation and managing of Government funds since the 7th
Malaysia Plan and it also has a well-established reputation as the key player in Malaysia in the promotion of
technology-based companies. Under the 10th Malaysia Plan, the role of MTDC had been expanded to create an
effective ecosystem for commercialisation of homegrown technologies – to groom a new generation of
Technopreneurs through comprehensive nurturing services that support them all the way from laboratory ideas to
full commercialisation. The right mix of dedication, knowledge, technology, innovation, conviction, support,
investments and nurturing makes MTDC THE COMPLETE EQUATION - creating value and accelerating
economic growth for the Nation.
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Vision: To be the leading integrated commercialisation solutions provider building world class Malaysian
technology companies through strategic partnerships.
Mission: To create, nurture and promote technology companies in strategic thrust areas. To promote high
performance culture through employee capacity building maximising stakeholders‟ returns.
1.2.1 MTDC Grant Management
Since the 7th Malaysian Plan, MTDC has also been entrusted by the Government to manage grants specific for
Malaysian companies to increase their technology content via commercialization of local research and development
and/or acquisition of foreign technology. Through the Technology Development Programme established since the
7th Malaysia Plan, the Government had entrusted MTDC with the management of two grants. These grants provide
support to local companies, helping them to enhance technology content, increase capacity, capability and
competitiveness. The grants have increased to five: TAF, CRDF, BSF, BGF, and BEF.
(a) Technology Acquisition Fund (TAF)
This Fund was established to facilitate the acquisition of strategic, proven foreign technology for immediate
implementation into existing business. The Fund provides the right support to Malaysian companies, enabling them
to enhance their technology level and production processes through the acquisition of new technologies. TAF List of
Approved Companies: since 2008, 27 companies have been approved.
(b) Commercial R&D Fund (CRDF)
The CRDF provides added stimuli for the right innovation among Malaysian-owned companies, by providing partial
grants to qualified R&D projects. These grants will enable full commercialization of home-grown R&D, developed
by local universities/research institutions or the private sector. CRDF is for the funding of commercialisation
activities of locally developed technologies undertaken by Malaysian owned company. The technologies can be
those developed by the public sector or they can also be the output of in-house research and development (R&D)
activities by the companies.
CRDF 1 is a grant for the commercialisation of R&D output from public and private University (PPU) / Government
Research Institute (GRI) by a Spin-Off company ("Syarikat Terbitan University, STU"). Project duration is 2 years
(Implementation and Monitoring). Under this fund, the STU is required to operate their business from any
recognised Technology Centers locally. The company is also required to focus their commercialisation activities on
business development while producing their product via out-sourcing mode. A spin off company is defined as a
company with local Public and Private University/Government Research Institution ownership.
CRDF 2 is a grant for the commercialisation of R&D output from Public and Private University (PPU)/Government
Research Institute (GRI) by a Start Up company. Project duration is 2 years (Implementation and Monitoring).
Under this fund, the SME is recommended to operate their business from a recognised Technology Centers. The
Company is also required to focus their commercialisation activities on business development while producing their
product via out-sourcing mode. A Start Up is defined as a newly set up Small & Medium Enterprise (SME)
established specifically as the vehicle for the commercialization activities of the specific project.
CRDF 3(a) is a grant for the commercialisation of any local R&D by SME; and CRDF 3(b) is a grant for the
commercialisation of public sector R&D by a non-SME. Project duration is 2 years (Implementation and
Monitoring). „SME' is defined as company with less thanRM25 million annual turnover or having less than150
employees; „Large company' is defined as company with more than RM25 million annual turnover and engaging
more than 150 employees; Public Listed associated companies is categorised in accordance to the structure of its
shareholders; and State agency's associated companies is categorised based on the structure of its shareholders. To
date CRDF has approved 155 companies.
(c) BSF
Business Start-up Fund (BSF) was established to fund new start-up technology-based companies. The Fund
incorporates elements of loan and equity, offering companies flexible funding via Convertible Notes (CN) and/or
Preference Shares. The objectives of BSF are to support and encourage entrepreneurship; creation of new strategic
businesses that are important and potentially scalable; and funding of supporting companies within a technology
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eco-system. Focus area is industrial technology, biotechnology, sea to space, science &technology core, information
communications & technology. To date BSF has approved 155 companies.
(d) BGF
The Business Growth Fund (BGF) focuses specifically on supporting and providing follow-on funding to successful
grant recipient companies. The fund provides hybrid grant-equity funding which acts as a transition and a bridge
from grant to venture capital (VC) financing. The financial assistant is a mix of two components – a grant portion
and an equity portion that is similarly structured but more flexible than a VC financing. The grant portion is to be
disbursed to finance the tail end of the Technology Development Phase; while the equity portion is disbursed only
upon the fulfillment of the grant milestone and upon starting of the initial phase of the business building phase. The
objectives of the fund are as follows: Accelerate the development of local high technology companies by providing
business funding to qualified grant recipient companies. Provides funding for the "last mile" of the R&D&C value
chain. Ensures that qualified grant recipients are adequately capitalised during their crucial formative years to build
a business track record. Build enough "commercial" value in the company to make companies attractive for followon financing by VCs & other financing institutions. To demonstrate that grant recipients, which have received strong
market validation for their products/services, are further supported to become full-fledged commercial enterprises.
BGF is opened to all successful grant recipient companies that can demonstrate a potential for business growth. The
evaluation process of companies is initiated upon receiving the Investor Factsheet from the company. The evaluation
process involves three main phases. Initial Assessment of Investor Factsheet, Processing of Company Presentation
& Business Plan, and Approval of Process by the TC & AC. There are 15 BGF Approved Companies to date.
(e) BEF
The Bumiputera Expansion Fund (BEF) was introduced primarily to help Bumiputera business entities to expand
their operations internationally. The fund provides flexible loans without any collateral. The repayment period is 6
years starting from the second year after the loan has been disbursed. The business sectors eligible for BEF must be
technology-based and are involved in specific technology clusters such as biotechnology, green technology, oil and
gas, electrical and electronics, information and communications technology, nanotechnology and food technology.
Companies applying for BEF should emphasise business expansion in their proposal and the project proposed must
be capable of showing potential profit. Once the BEF application is approved Due-diligence exercise and Signing of
Legal Documents are executed.
For the TAF, CRDF, BSF, BGF and BEF, a company makes an application, which is evaluated and processed. Once
the applicant meets all the requirements, the Evaluation Officer compiles and prepares reports before presenting the
proposal to the fund's Technical Committee (TC) for deliberation and subsequently to the Approval Committee
(AC) for endorsement of recommendations made by the TC. The applicants may also be required to present the
proposal to the respective committees themselves. All successful and unsuccessful applicants are informed officially
after decisions are made by the Approval Committee. Guidelines for Business Plan preparation for all the types of
fundings are also availed and include:
1. Executive Summary
2. Company Profile
3. Capabilities of Company
4. Proposed Activity
5. Details of Technology Transfer
6. Collaborator
7. Description of Technology
8. Market Research and Analysis
9. Marketing Plan
10. Manufacturing and Operational Plan
11. Risk Analysis
12. Historical Financial Summary
13. Financial Projection
14. Other Information
APPENDICES
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1.2.2. MTDC Technology Centres
In addition, MTDC manages Technology Centres which focus on various industry clusters and are located at several
universities and research institutes. The Company was set up by the Government of Malaysia in 1992 to spearhead
the development of technology business in Malaysia. Its role is to promote the commercialization of local research
and invest in technology-based ventures as well as to groom new generation of Technopreneurs through
comprehensive nurturing services. MTDC Technology Centres are the business units in Malaysian Technology
Development Corporation (MTDC), which was the first entity in Malaysia to set up a university/research institutebased technology centres in 1992. MTDC has established five technology centres, namely:
Universiti Putra
Malaysia (UPM)MTDC Technology
Centre
Focuses on
Biotechnology &
ICT
Serdang, Selangor
3-Apr-1997
Technology Garage
Enterprise Data
Centre
Universiti Kebangsaan Malaysia
(UKM)-MTDC
Technology Centre
Focuses on
Biotechnology
Bangi, Selangor
1-Dec-1998
Technology Garage
Enterprise
Universiti Teknologi
Malaysia (UTM)MTDC Technology
Centre
Focuses on Life
Sciences & Advances
in Engineering
Skudai, Johor
1-Dec-2001
Technology Garage
Enterprise
From 540 / sq ft
From RM 2.50
From 105 / sq ft
From RM 2.00
From 520 / sq ft
From RM 1.00
Forest Research
Institute Malaysia
(FRIM)-MTDC
Technology Centre
Focuses on Life
Sciences & Herbal
Products
Kepong, Selangor
1-Dec-2010
Technology Garage
Enterprise
Wet Lab Dry Lab
From 390 / sq ft
From RM 1.80
Universiti
Teknologi Mara
(UiTM)-MTDC
Technology Centre
Focuses on
Industrial Products,
Art & Design
Shah Alam, Selangor
1-Oct-2013
Office Suite
From 600 / sq ft
From RM 2.50
UPM-MTDC TECHNOLOGY CENTRE
UPM-MTDC Technology Centre was established on November 16, 1996 and is a joint-venture project between
Universiti Putra Malaysia and MTDC. The centre opened officially on April 3, 1997. It is the first of a series of
MTDC technology incubation centres established within a university‟s campus in Malaysia and awarded
Cybercentre status from Multimedia Development Corporation Sdn Bhd (MDeC) in 1998, allowing it to provide
competitive and enabling environment to attract, nurture and retain ICT and ICT-links businesses mainly to the
Multimedia Super Corridor (MSC) status company within the vicinity.
UKM-MTDC TECHNOLOGY CENTRE
UKM-MTDC Technology Centre is a joint venture between Universiti Kebangsaan Malaysia (UKM) and MTDC.
The centre focuses companies that are mainly involved in biotechnology. The Centre is located on a 6-acre piece of
land within the UKM campus in Bangi and can accommodate 12-15 tenants at any one time. The centre has
successfully provided the linkages between tenants and universities, industries and the private sectors within the
Bangi area in particular, and in Kuala Lumpur metropolitan area in general.
UTM-MTDC TECHNOLOGY CENTRE
The UTM-MTDC Technology Centre was established in December 2001 and is a joint venture project between
Universiti Teknologi Malaysia (UTM) and MTDC. The centre focuses on companies that are mainly involved in
advanced engineering and life sciences. The Centre is located on a 4.24 acre piece of land within the Technovation
Park area with a total built up area of 31,200 sq/ft. Among its objectives are in the promotion of technology transfer
and commercialisation. Future plans ahead include expanding this facility soon due to rapid growth.
FRIM-MTDC TECHNOLOGY CENTRE
It is located at the Forest Research Institute of Malaysia (FRIM) in Kepong, Selangor. It is surrounded by the Bukit
Lagong Forest Reserve, which provides endless greeneries and peaceful ambience to its communities. The Centre is
located on a 4 acre-land; offering 47,500 sq feet of rentable space consisting of Technology Garage and Enterprise
space from 600 sq feet and above. Its core focus is on Biotechnology and Herbal Extraction Technology Businesses.
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UITM-MTDC TECHNOLOGY CENTRE
UiTM-MTDC Technopreneur Centre was established in October 2013 at Universiti Teknologi MARA (UiTM) Shah
Alam. It is strategically located in the Klang Valley, adjacent to the Federal Highway, about 4 km and 25 km
respectively from Klang and Kuala Lumpur. The Centre, with a built-up area of 39,000 sq feet and developed on a
2.5-acre land, is a prime business space to house Technology related companies, service providers (Accounting,
Secretarial, Legal) and equipped with shared facilities such as training and seminar rooms, cafeteria and a
gymnasium. The facility is security guarded on a 24/7 hour basis. Being in the heart of UiTM campus itself means
companies will have access to the many faculties and research facilities to pursue networking and research
collaboration, pool of potential human capital for your company and more. The center core focus is on
Industrial/Creative Design and Nano-Technology.
These Centres’ Achivements enable academia and industry to collaborate and leverage on each other‟s strengths,
while accelerating commercialization activities. The achievements include:
(1) Creation of job opportunities for knowledge-based workers
(2) Increase of penetration of Malaysian-made products to overseas markets
(3) Facilitation and creation of Intellectual Property and their successful commercialization
Shared Facilities in these Centres: Office space; Wet lab & dry lab (cold room, chemical store, product store, dry
store, wash area and lab bench); Meeting room; Boardroom; Training room; Seminar hall of various sizes; cafeteria,
free parking space, prayer room, gymnasium, resource centre, recreational area and auditorium.
Services offered by the Centres include: Business Matching Programme; Networking Session; Nurturing
Programme; Fund Raising; Technology Connection; Collaboration
Corporate Social Responsibility activities include: Blood Donation Campaign; Motivational Talks; Public
Awareness Programme; Religious Talks.
MTDC Departments/Divisions
1. Corporate Social Responsibility/International Networking Department
2. Nurturing Department
3. Business Advisory Division
4. Collaboration Advisory Services Department
5. ICT Support
6. Marketing & Client Services Unit
7. Corporate Communications Department
8. Knowledge Management Department
9. Government Fund Management Unit
10. Administration and Procurement
MTDC Technology Centres Admission and Graduation: General Admission Policy
 Company incorporated under the Companies Act 1965
 Minimum paid-up capital of RM20,000.00
 Must be a technology-based Business Company
 Encourages a collaboration with the local university or research institution
 Must be in operation for at least three (3) months
 A subsidiary of a multinational company may be considered
 Credible management team
 Provision of data to MTDC
MSC Status Company (UPM-MTDC Technology Centre) Admission/Entrance Policy
 The company must be incorporated in Malaysia under the Companies Act 1965 within the past two (2) years
 The company cannot be preparing for a corporate exercise or Initial Public Offering within the next 1 or 2 years.
 The company cannot be involved in the following activities:a. Pure manufacturing / assembly activities
b. Trading activities
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





The company should possess all relevant approvals and licensing requirements from the relevant authorities
accrediting its MSC status
Minimum paid up capital of RM 20,000
Credible management team
Clear and defined business vision
Operates in a legal and ethical manner, complying with all such statutory, regulatory and/or licensing
requirements as may be applicable including company formation and protection of intellectual property rights
Company will be required to provide data to MTDC
Graduation Policy
Company may be graduated from the Technology Centre Programme if MTDC determines that it has met two or
more of the following conditions:
 The business reaches the maximum allowable stay in terms of a specific time limit, as determined by MTDC
 Space requirements of the company exceed incubator capacity
 Company reaches/achieves their tenure/milestone
 Company is listed bought over by another bigger company
 Garage unit/programme to enterprise unit
 Enterprise unit to other places outside incubator
 The business no longer needs or uses incubator business assistance services
Tenant Termination/Exit Policy
Tenants are terminated from the Technology Centre for:
 Non-payment of rent and/or services fees
 Violations of lease and/or services agreements
1.2.3. MTDC Value Added Services
MTDC has created a vibrant entrepreneurial ecosystem by providing infrastructure and nurturing services, to guide
start-up companies from conception of ideas to full commercialisation. This is achieved through its Technology
Development Cluster Programme (TDC), designed to strengthen linkages between universities/research institutions
and industries. The main objective is to activate and promote the acceleration of commercialisation activities of
universities and research institutions, on local and global stages. Rapid changes in technology as a result of stiff
competition and challenges in the global market have left business organizations with no choice but to perform at
their best levels at all times. This means business processes as well as strategic plans must be consistently evaluated
and revised in order to keep up with the pace in the marketplace. MTDC offers value-added services to help
business organizations excel in their respective fields. With more than 14 years of experience in the venture capital
and high-tech industry, MTDC‟s personnel have acquired in-depth skills and vast experiences to offer complete
solutions to clients. MTDC offers three core value-added services pertinent to the development of technology
businesses: nurturing and business advisory, capacity building and market research, and strategic planning.
(a) Nurturing & Business Advisory
MTDC`s winning formula is well-proven. We have strings of start-up successes and our excellent relationship
forged with top-tier investment partners locally and globally. We aim to provide you with value-added services that
go beyond financial support, such as:
 Structuring collaboration programmes with universities/research institutions
 Market Development
 Fund Raising
 Business Development
 R&D & Technology Management
 IPR Management
 Project Management (Operations Plans)
 Government Regulatory
 Financial Planning & Sourcing
 Development of Business Plan
Page 11 of 42
(b) Capacity Building & Market Research
MTDC assistance covers the provision of both the soft-skill and hard-skill tools to help entrepreneurs steer their
companies into growth and profitability. These cover education and knowledge enhancement on entrepreneurship,
leadership, technology transfer and management, IPR, promotion and branding. Besides this, MTDC is also
involved in market research activities. Through the activities, MTDC is able to help entrepreneurs identify
opportunities and structure deals creatively via the following activities:
 Market Research & Technology Evaluation
 Technology Matching
 Technology Due Diligence
 Technology Strategy
 Industrial Analysis
 Organising seminars/workshops
(c) Strategic Planning & Special Projects
 Business Process Improvement
 Strategic Development
 Strategic Planning Study
 Organisational Transformation
1.2.4. MTDC Symbiosis Programme
MTDC‟s Graduate Entrepreneurship Programme or Symbiosis is aimed at training selected graduates to become
technopreneurs. Symbiosis is a comprehensive programme that covers aspects of commercialisation as well as
entrepreneurship. At the end of the programme, selected candidates lead start-up companies to commercialise
technologies from the Universities/Research Institutes (Uni/RI) that have been carefully chosen by MTDC.
Symbiosis start-up companies then apply for MTDC‟s fund to operate from any of the Technology Centers and
receive nurturing and other value added services just like any other company within MTDC‟s ecosystem.
Objectives
1. To promote commercialisation of R&D output of Uni/RI.
2. To increase the number of technology-based start-ups in the national economic landscape; revenue and job
generators for the Malaysian economy.
3. To increase the pool of young entrepreneurs with excellent business knowledge and skills.
Services
1. Assist universities/research institutes to identify technologies ready for commercialization through
Symbiosis programmes.
2. Assist universities/research institutes to identify potential technopreneurs for commercialization of relevant
technologies through Symbiosis
3. Develop, guide and nurture technopreneurs throughout the 6 phases of the Symbiosis programme i.e. from
the selection of technologies until the formation on companies.
Current MTDC Symbiosis Programmes
1. FMBIOSIS
2. UTM-MTDC SYMBIOSIS
3. UKM-MTDC SYMBIOSIS
4.
5.
6.
UPM-MOHE-MTDC SYMBIOSIS
USM-NCIA-MTDC SYMBIOSIS
UNIMAP-NCIA-MTDC SYMBIOSIS
FMBioSis™ is a joint programme to develop qualified young graduates to become bio-entrepreneurs by
commercializing locally developed research technologies. In this programme, Forest Research Institute Malaysia
(FRIM) is the technology provider while MTDC is the sponsor as well as the business development trainer. The
programme was officially launched on 21st May 2008. All participants have completed the first and second stage of
the programme and 10 best participants have been selected to lead the FMBioSis™ companies. These are spin-off
companies which are primarily involved in commercialisation of FRIM‟s technology. Currently there are 50 active
start-up companies with 83 technopreneurs within the Symbiosis Programme at various stages of commercialisation
activities and 75 jobs have been created since the inception of Symbiosis Programme.
Page 12 of 42
1.2.5. MTDC Knowledge Centre/Linkages/Partnerships

Malaysian Venture Capital and Private Equity

Department of Chemistry Malaysia (DCM)
Association (MVCA)

Department of Meteorological Services (DMS)

Ministry of Agriculture and Agro-Based Industry

Department of Standards Malaysia (DSM)

Ministry of Culture, Arts & Heritage

Inno Biologics Sdn. Bhd.

Ministry of Defence

Malaysian Biotechnology Corporation (MBC)

Ministry of Domestic Trade & Consumer Affairs

Malaysia Design Council (MRM)

Ministry of Education

Malaysian Centre For Remote Sensing (MACRES)

Ministry of Energy, Communications & Multimedia

Malaysian Institute For Nuclear Technology Research

Ministry of Entrepreneurship & Co-Operative

Malaysian Industry-Government Group for High
Development
Technology (MIGHT)

Ministry of Finance

Malaysian Science & Technology Information Centre

Ministry of Foreign Affairs

MIMOS Berhad

Ministry of Health

Multimedia Development Corporation (MDEC)

Ministry of Home Affairs

National Biotechnology Directorate (NBD)

Ministry of Housing And Local Government

National Oceanography Directorate (NOD)

Ministry of Human Resource

National Science Centre (Pusat Sains Negara)

Ministry of Information

National Space Agency (ANGKASA)

Ministry of International Trade & Industry

SIRIM Berhad

Ministry of Natural Resources & Environment

Technology Park Malaysia Corporation Sdn Bhd

Ministry of Rural & Regional Development

Forest Research Institute Malaysia (FRIM)

Ministry of Plantation Industries & Commodities

Institut Kerja Raya Malaysia (IKRAM)

Ministry of Science, Technology & Innovations

Institute For Medical Research (IMR)

Ministry of Tourism

Malaysian Agricultural Research & Development Institute

Ministry of Transport

Malaysian Cocoa Board

Ministry of Works

Malaysian Rubber Board

Ministry of Youth & Sport

Malaysian Palm Oil Board (MPOB)

Prime Minister‟s Department

Universiti Kebangsaan Malaysia (UKM)

Malaysian External Trade Development Corporation

Universiti Malaysia Sarawak (UNIMAS)

Malaysian Industrial Development Authority

Universiti Putra Malaysia (UPM)

Malaysian Industrial Development Finance

Universiti Sains Malaysia (USM)

National Productivity Corporation (NPC)

Universiti Teknologi Malaysia (UTM)

Small and Medium Industries Development Corporation

Universiti Teknologi Mara (UiTM)

Astronautic Technologies (M) Sdn Bhd (ATSB)

Universiti Utara Malaysia (UUM)

Academy of Science Malaysia (ASM)

Universiti Malaya (UM)

Atomic Energy Licensing Board (AELB)

Burrill and Company
Page 13 of 42
2. TECHNOLOGY COMMERCIALISATION WORKSHOP PROGRAMME
Following below is summarized contents of the presentations
2.1. BUSINESS MODELING & CUSTOMER SEGMENTATION
By Noor Amal Morad ([email protected])
Reasons for becoming an ENTREPRENEUR…
• Saw a great opportunity (job, idea, technology, etc)
• Pursuing a passion, interest
• Freedom – be in charge of own destiny & ability to set own life
• Responsibility to society - Improve society in some meaningful way
• Spending more time with family
• Change – escaping dysfunctional workplace
• Look for a sense of accomplishment
• Control of own destiny
Where do you start..??
Being an entrepreneur is very, very risky. Very, Very Low Success Rate.
For a start, who could put you out of business? YOURSELF!
Top 10 Reasons why Start‐ups fail…
1. Startups run out of cash. Entrepreneurs get greedy.
2. Founders don‟t have complete faith in each other.
3. CEOs hire weak team members.
4. They want to do too much.
5. They go after too small a market.
6. They don‟t charge enough from their customers to survive.
7. They hire too many people up front.
8. Sheer luck (or lack thereof).
9. They don‟t work hard enough or fast enough or smart enough.
10. They don‟t take enough risks.
Maximise the Funds
• Use the funds efficiently & effectively - Stretch to the last dime.
• Pay for things only when absolutely necessary – why rent when you can work from home, or use virtual office.
• Don‟t buy – borrow, rent or lease, if possible.
• Do everything yourself – hire only the right people, at the right stage of development.
What Do these Words Mean?
Entrepreneurial process – Guide to: Idea Generation. Idea Validation. Idea Implementation
Entrepreneur - Actor: Someone who undertakes the risk associated with creating, organising, and owning a business.
Entrepreneurship - Awareness: The recognition of an opportunity to create value, and the process of acting on this opportunity.
Key Attributes of an Entrepreneur
• Goal: Personal > Business
• Courage: not to be intimidated by failure or the anticipation of failure.
• Action: The implementation of knowledge (wisdom)
• An entrepreneur is always driven by PASSION. Entrepreneurship is NOT a job, it‟s a RELIGION.
• It is NOT a forced exercise; it needs 100% commitment.
What goes into a Business Plan?
• Quantify a specific market segment,
• Demonstrated customer need,
• Put together a defined product or service complete with specification,
• Lay out a manufacturing or operations plan,
• Do a complete competitive analysis,
• Do a pro‐forma projection.
Page 14 of 42
Customer Segments
For whom are we creating value? Who are our most important customers? You must be able to profile your
customers & put yourself in the “shoes” of the customer – look at it from their perspective.
Segmentation Clues
• Different level pain or passion
• Seek to solve problem differently
• Require different marketing
• Require different distribution
• Require different sales
• Not necessarily demographic‐based
Types:
Mass
Niche
Segmented
Diversified
Multi‐sided Platform Markets
Customer Relationships
Types of relationship each of the Customer Segments
expect to establish & maintain
 Which one have we established?
 How are they integrated with the rest of our
business model?
 How costly are they?
Revenue Streams
 For what value are our customers willing to pay?
 For what do they currently pay?
 How are they currently paying
 How would they prefer to pay?
 How much does each Revenue Stream contribute to
overall revenues?
Key Resources
 What key resources do our value proposition require
 Distribution Channels?
 Revenue Streams?
Types:
• Physical
• IP
• Human
• Financial
Key Activities
What key activities do our Value Proposition require
Distribution Channels?
Customer Relationship
Revenue Streams?
Categories:
• Production
• Problem Solving
• Platform/Network
Key Partners
Who are:
• Key Partners
• Key Suppliers
Which:
• Key Resources are we acquiring from partners?
• Key Activities do partners perform?
Motivation for Partnership
• Optimisation & economy
• Reduction of risk & uncertainty
• Acquisition of particular resources & activities
Cost Structure
 What are the most important costs inherent in our
business model?
 Which Key Resources are the most expensive?
 Which Key Activities are the most expensive?
Is the Business more:
• Cost-driven (leanest cost structure, low price value
proposition, maximum automation, extensive
outsourcing)?
• Value-driven (focused on premium value
proposition)?
Sample Characteristics:
• Fixed cost (salaries, rent, utilities) & Variable costs.
• Economics of Scale & Economics of Scope
Page 15 of 42
2.2. COMMERCIALISATION FUNDING
By En Mohammad Hazani Hassan
Commercialisation Road Map
Funding continuum: Second view
MTDC’s TECHNOLOGY COMMERCIALISATION PATHWAY
Page 16 of 42
•
•
•
•
Considerations for Funding
How much to raise?
How much to give-up (shares, control, collateral)?
What is the proceed for?
Valuation?
1.
2.
3.
4.
The Ingredients of an Entrepreneur
Right knowledge/talent
1. Technical/product
2. Market and marketing knowledge
3. Management knowledge
4. Financial knowledge
5. Legal knowledge
Right product/idea
1. Viable
2. Quality
3. Meaningful of value
Right character/attitude
1. Passionate
2. Have guts/risk taker
3. Hands-on
4. Doer and decisive
5. Good listener
6. Willing to learn/helpful/tem player
7. Willing to share/trusting and to be trusted and flexible
8. Humble and a little crazy
(Ref. Steve Covey)
What can investors do to help?
Cost of financing
How investors can benefit (exit)
The “chemistry”
The Right Mixture
∑ Ingredients of Entrepreneur (e) + ∑ Ingredients for the Ship (s) = Commercial Success (CS) ?
∑ e + ∑ s + ∑ X = CS
Why is Commercialisation Challenging?
Page 17 of 42
Hindrances to Commercialisation
1. Lack of skiled people to form a complete team
2. Lack of clear aims and objectives unsure of role, equity structure, valuation, and outcome
3. Lack of appropraitel structured incentives or inappropriately targeted incentives
4. Lack of rigorous process to validate, support and endorse
5. Lack of proof of principle or third stream funding prior to event reaching commercialisable stage
6. Lack of time, focus, management and desire
How to Cook it Right
1. Ingredients have to be right: the entrepreneur/promoter/ship/magic ingredients must all be present
2. The price has to be right
3. The ecosystem has to be conducive: human, technology and risk capital must always be present
4. The overall attitude has to be right “dare to win” where failure is not a sin!
5. Clear commercialization policy drivers: TTO/TTC to take through commercialisable inventions, innovations,
new business models
6. If overallecosystem is limited it may still not be right. Commercialisation requires new packaging!
GRANT/FUND MANAGEMENT
MTDC was appointed by the Government since 1997 to manage Government MOSTI grants under the Technology
Development Programme (TDP). The type of grants are: Commercialisation of R&D Fund (CRDF), Technology
Acquisition Fund (TAF) Since the 10th Malaysian Plan, MOF entrusted MTDC to manage two new funds for further
commercialisation support and business expansion: Business Start-up Fund (BSF)- Convertible loans, and Business
Growth Fund (BGF)- hybrid fund
Funding-Right Support
Name
Fund size
Source of fund
BSF
RM 100 million.
Ministry of Finance
Fund tenure
period
Fund
objectives
Budget 2011
Focus sectors
Subscription
instrument
CRDF
RM 180 million.
Ministry of Science,
Technology & Innovation
10th MP (2011-15)
BGF
RM 100 mil.
Ministry of Finance
To support and
encourage entrepreneurship and
creation of new
strategic busin-esses
that are important,
and potentially
scalable; funding of
supporting co‟s
within a technology
eco-system.
To promote the
commercialisation of
locally developed
technologies (from public
and private universities,
Government‟s Research
Institutions and
companies) undertaken
by Malaysian owned
company.
To support successful
grant recipient co‟s
until they can
generate sufficient
commercial value to
attract VC financing
and other forms of
financing.
Technology
companies.
Convertible
Promissory Note.
Locally-developed high
technology, except ICT.
Partial, matching grant.
High technology
companies.
Hybrid – a
combination of grant
and RCCPS
10th MP (2011-15)
TAF
RM 12 million
Ministry of Science,
Technology & Innovation
10th MP (2011-15)
BEF
RM 25 million
Unit Peneraju Agenda
Bumiputera
2013
To facilitate eligible
Malaysian co‟s in the
acquisition of foreign
technologies for
immediate incorporation
into the co's manufacturing activity. TAF's
partial grant enables
companies to avoid
expensive and often risky
technology development
stages.
Technology companies.
Accelerate the
expansion of
Bumiputera technologybased co‟s by providing
financial help to
qualified companies;
and to be complemented
with existing value
added services provided
by MTDC
Partial, matching grant.
Bumiputera technology
co‟s at expansion stage.
Promissory note,
convertible to RCCPS.
PRIORITY TECHNOLOGY CLUSTERS UNDER MOSTI
INDUSTRIAL TECHNOLOGY
SEA TO SPACE
BIOTECHNOLOGY
Advanced Manufacturing
Meteorology & Geophysics
Agro-Biotechnology
Advanced Material
Oceanography
Healthcare
Renewable Energy
Remote Sensing & GIS
Industrial
Nanotechnology
Communication
Machinery and Equipment
Space Technology
S&T CORE
Food Processing and Production
Environmental Sciences
Page 18 of 42
2.3. IP COMMERCIALISATION FROM THE UNIVERSITIES
Prof. Rohazar Wati Zuallcobley, Faculty of Law, University Technology MARA
The IPR legislation must be in place
• The Copyright Act 1987
• The Patent Act 1983
• The Trade Marks Act 1976
• The Industrial Designs Act 1996
• The Geographical Indications Act 2000
• The Layout Designs of Integrated Circuit Act 2000.
Supporting laws must be in place
• New Plant Varieties Act 2004
• Common law:
• - passing away
• - confidential information
International Convention for IP must be known and understood
• Paris Convention for Protection of Industrial • WCT/WPPT(digital agenda) 2011
Property 1967 (1989)
• PCT 2006
• Berne Convention for the Protection of Literary • Nice Agreement
and Artistic Works 1971 (1990)
• Vienna Agreement
• Trade-related aspects of Intellectual Property
Agreement 1994 (1995)
IP as intangible property
• Tangible property is land, houses, estates, car
• Intangible property is intellectual property
• Intangible wealth, easily shared & reproduced,
once created marginal cost of reproduction is
negligible
IPR as an economic tool
“The intellectual property system must be able to
convert innovation into assets”
• innovations
• entrepreneurship
• profit
• reward
• economic growth
Political will
• Government support for innovation and
commercialization
• -MyIPO (Malaysia Intellectual property Office)
• -Intellectual Property Training Centre
• -National IP Policy
• -Innovation Policy
The role of IP as intangible property
• Economic rights of creators
• Commercial exploitation of owner of ip
• Capital expenditure
• Transfer of technology
• Cultural development
What drives IP commercialisation
• Positive political will
• Infrastructure
• Reward
MOHE
• Research culture 2006 - 2008
-Driving R & D activities among the universities.
• Establishment of RU which are given special funding.
• Driving quality research 2008-2010
• Innovation and commercialization 2011
Page 19 of 42
Infrastructure
• To support R&D activities:• Laboratories , databases, library, equipment
• Organizational structure:• IP policy and manual
• Research management centre,
• Technology License Office (TLO)
• Technology Transfer Office (TTO)
• Commercialization Management Unit
• Incubator
Manner of commercialization
• Assignment
• Licenses:
-Exclusive
-Non-exclusive
• Contract research
• University spin-off company
Problems in negotiating licenses
• Difficulties in identifying genuine parties
• Difficulties in arriving at a fair price for IP
• Difficulties in determining price of the IP
• Inadequate legal framework for IP transfer
• Lack of skill and information on legal
aspects of IP transfer transaction
Reward
• Statutory provision for reward under the Patent Act 1983
• Section 20 „Inventions made by employee …..
• “Provided that where the invention acquires an economic
value much greater than the parties could reasonably have
foreseen at the time of concluding the contract of employment
….the inventor shall be entitled to equitable remuneration
which may be fixed by the Court in the absence of agreement
between the parties.
• This provision supported by the Innovation Policy and
individual IP policy of the University.
• Patent applications are given marks for promotion application.
The difficulties
• Identifying correct partners
• The death valley
• Not the core business of universities
• Level of IP understanding
• Not enough financial support
• High Cost of IP application internationally
Commercialization
• Universities‟ research out puts must be commercialized.
“The success of a particular research is not dependent on
publication or recognition in a journal, but depended on how
far that particular research has been commercialized” Datuk
Sri Najib Tun Razak (Deputy Prime Minister) 18 th May 2006.
2.3. ENTREPRENEURSHIP & DEVELOPMENT LOCALLY AND GLOBALLY
By: Hayati Taib. Email contact: [email protected]
THE ENTREPRENEURIAL VENTURE
Period 1: Pure entrepreneurship
Period 2: Strategic focus
Defininin the concept of the business
What business aren‟t we in
Gathering financial resources
Implementing the business we are in
Assembling the startup team
Knowing bttter than anyone else
Analyzying the competition
What will people pay
Building the prototype
How many will they buy
Getting your first customer
How to distribute
How to service the customer
Identifying strategic partners
Period 3: Systems building
Financial controls
Developing relations with suppliers
Stable division of labour
Going beyond the prototype to a truly scalable product
Reporting relationships and authorities
Recruiting a complete team
Developing systems of internal controls
Raising institutional money
Formalise the terms of a saleoperational systems
-production/outsourcing/distribution/sale
-service/waranties
Period 4; Corporate management
Hiring outsiders
Going public
Race Against Time
Time is so important that humans have worked Shedding those who cant keep up
hard on tracking it for thousand of years so that Formalizing the culture
you only have to learn how to manage it !!!
Rationalizing the strategy
Page 20 of 42
ENTREPRENEUR & NETWORKING
•Establishment of mutual beneficial relationship with
other people
•Clustering to gain information
•Assist in making decision
•Support network
•Provide „loyalty‟
•NO immediate gains
•Establish a beneficial string of friends in need
CRITERIA OF SUCCESSFUL TECHNO-E
•Entrepreneurial- visionary, innovator, strategist,
creative and need to control
•Managerial – orderly, pragmatic and predictable
•Technical capabilities - working and do things
To be a successful Techno-E, there needs to be a balance
of all three traits.
Gerber, Michael E., The E Myth Revisited
EXAMPLE: LOCAL TO GLOCAL - CASES
Commer cialization - The Cycle in MYAGRI Funding
Re-evaluation
(Evolution/revolution)
R&D
Income/ Working Capital
Asset/Investment
Funding
Expenses/Loss Profit
Market
Profit
Commercialisation
COMMERCIALISATION SUCCESS FACTORS
Three major resources:
Financial
Market
acceptance
Human
Knowledge
BIOFERTILIZER AND BIO-ORGANIC BY TERAJU, YAB PM OFFICE
 Strategy A: Waste to Wealth & Commodities in the Oil Palm Sector
 Strategy B: Waste to Nutrients in the Paddy Field
MYAGRI BIO-ORGANIC PROGRAMME
 Strategic Nutrient Recycling to Optimize Inorganic Fertilizer Applications
Page 21 of 42
CDM Biogas Plant
CDM BIOGAS PLANT ORGANIC WASTE TO ENERGY
Biogas Plant
Mills
Investor
ALGAE-BASED BIO-PRODUCTS
TOTAL NUTRIENT RECYCLING
Animal Feed
Algae Oil
•Nutrient supplements
•Bio-diesel
•Bio-ethanol
Human Feed
•Health Supplements
EXAMPLE OF MTDC SYMBIOSIS PROJECT
Frutti Fibbi is hi-fiber flour made from pineapple cores that provides better dietary since it is more delicate in texture
and has high water holding capacity than any other vegetation fiber. The flour can be used as an additive to other
flour in the making of bread, noodles, cakes, cookies or ice cream. Frutti Fibbi acts as dietary fiber that improves
digestive system, lowers blood cholesterol, regulates sugar levels and maintains body weight as desirable.
New Food
Resources
Pineapple by-products from cannery
Turn
into
Dietary fiber flour
-3 particle sizes for different application
CONCLUSION: Entrepreneur should:
•Identify a NEED
•Conceptualize a SOLUTION
•Demonstrate a PROTOTYPE
•Develop a ROLL-OUT PLAN and get FUNDING
•MARKET the product using correct channels and packaging
•UNDERSTAND the changing climate and adjust to it
•Develop a strong relationship with CUSTOMERS
•“GIVE CUSTOMER SOLUTIONS THAT SOLVES A REAL PAIN”
Adopted from: Haas School of Business, UC Berkeley
A Successful Venture?
Is it a Golden Egg?
Or
A System to Continue Producing the Golden Egg
Page 22 of 42
2.4. OVERVIEW OF TECHNOLOGY COMMERCIALIZATION
By Fatimah Mohd Amin, Ph.D
What is Technology Commercialization?
•Technology commercialization is the process of transforming an idea or scientific discovery into new or improved
product, process or service
•The process is complex, non-linear, with false starts, dead ends, changes in direction and feedback loops
•It requires different skill sets – scientific, technical, business, marketing
•There are various options for realizing value – licensing, start-up, alliance
Importance of Technology Commercialization
•An idea or discovery, by itself, has no direct economic value; economic value is created when an idea or discovery
finds an application and gets translated into a product, process or service
•Commercialization provides return to public investment in research; ensures that new and promising ideas become
seeds to innovative products and services
•Commercialization leads to creation of new ventures which are needed for competitiveness and economic growth
Technology Commercialization Process from Discovery to the Marketplace
Commercialization is non-linear with feed-back loops
Page 23 of 42
Discovery/Ideation Phase
•Technology commercialization commences with the techno-market insight
•Ideas evolve through constant iteration between a new technological capability and market need
•Researchers generate new technological possibilities that are embodied in new discoveries and methods
•Research could be triggered by real or perceived market needs or by researcher‟s own convictions or interests
You need to start with many ideas to get one successful product
Proof of concept entails evaluation of the technological feasibility and commercial viability of a technology
•How is it done?
- prototype for product/service
- scaling-up and/or pilot plant for process
•This phase involves high risks, requires large resources and is frequently the end of the commercialization initiative
– the phase commonly termed as “Valley of Death”
Proof of Concept Phase “Valley of Death”
Page 24 of 42
Resources for Technology Commercialization
Commercialization
resources
Research resources
R
e
s
o
u
r
c
e
s
Valley of death
Private fund
Public fund
Discovery
Early Development
Commercialization
Phases of Commercialization
Product Development Phase
Product development refers to the entire process of:
- identifying a market opportunity
- creating a product to appeal to the identified market;
- testing/trials; and
- modifying and refining the product
Technology Commercialization Options
1. Sale or Assignment of IP Rights
•Sale by owner of all his exclusive right to an invention to another person or legal entity
•Outright sale is suitable for common technologies
2. Licensing
•The permission by the owner to a patented invention to
another person or legal entity to perform one or more of the
„acts‟ which are covered by the exclusive right to the
patented invention
•Licensing is one of the most common modes of technology
commercialization
•Financial compensation typically include:
–Up-front fees or lump-sum payments
–Running royalties (e.g. based on sales volume)
–Milestone payments
Types of Licenses
Exclusive
• Only one licensee has the rights to exploit the invention
• Desirable for high risk investment
• Necessary to “induce” investment
Non-exclusive
• Similar licenses may be granted to more than one
company
• Invention is a broadly applicable process
• Invention is useful to many companies thus not
necessary to “induce” investment
3. Alliance
•Collaborating with another person or legal entity for the
purpose of acquiring assets or expertise to complement the
capabilities of the owner of the invention and that are
essential to bring the invention to the market
• Examples of complementary assets are:
-Distribution channels
-Specialized manufacturing capabilities
-Sales force
-Other expertise
Partially Exclusive
• Same technology licensed again for a different
geographical region or for a different application
• Agreement must specify field of use or application
• Licensee has the rights to exploit only for the
specified application
Page 25 of 42
4. Joint Venture
•A contractual agreement between two or more parties for
the purpose of executing a business undertaking with mutual
sharing of profits and losses
•There are 2 basic forms of joint venture (JV) namely equity
JV and contractual JV
•The equity JV is an arrangement whereby a separate legal
entity is created
•A contractual JV might be used where the establishment of
a separate legal entity is not needed or where it is not
possible to create such an entity
5. New Venture
•Creation of new business or “start-up” by licensing
technology
•Sometimes called “entrepreneurial technology
transfer”
•In the USA 1-2 spin-offs per US$100 million
research expenditure; best practice 5-20 spin-offs
per US100 million research expenditure)
Determinants of Commercialization Success
•A compelling commercial concept
•Continuing validation through the acquisition of new, „smart‟ and meaningful investment
•A „champion‟ well matched to the needs of the project, especially during the more uncertain early phases
•Conducive environment (e.g. supportive organization culture, compatible incentives, enabling legislation)
•Efficient access to external networks of resource providers
•Efficient mechanism to share information both within organization and externally with potential resource providers
Agents in Technology Commercialization Technology commercialization involves multi-sectoral collaboration
Entrepreneurs/Enterprises (Create, market &
Scientists/Inventors
(Generate ideas/scientific discovery)
sell product or service
Technology
commercialization
Public and Private Funding Agencies
(Provide financing throughout
commercialization process)
Support Organizations (TTOs, Incubators,
IPR, orgs) (Facilitate translation of ideas,
inventions into marketable product and service)
2.5. SCOPES OF INVESTMENT DUE DILIGENCE
By Noor Amal Morad ([email protected]), Senior Vice-President Strategic Planning
What is Due Diligence?
The thorough investigation & analysis the investor
makes of a prospective investment to see if it meets the
investor‟s strategy & criteria for funding. – Woodside
Fund
To independently verify the information provided
Why Due Diligence is Necessary and What is
Involved?
Due diligence includes an assessment of the industry,
market, business concept, management team, the
company‟s technology, products and markets, and
financials. – Woodside Fund
How “deep” diligence is done depends on the Investor
When is it Done?
MTDC
Screening
Evaluation
Approval
Due Diligence
Evaluation
Due Diligence
Approval with CPs
Investment
Investment
Other Investors
Screening
Investment
Monitoring &
Exit
Page 26 of 42
Screening Due Diligence
Short listing your deal flow
(a) Quality of Deal
(b) Investment Compatibility
Quality of Deal:
• Business plan
– What is the overall quality of the business plan?
• Customers & partners
– Company signed impressive customers and/or partners?
• Source & origin
– What‟s the source of the deal; coming from or referred by?
• Other equity partners
– Who are existing investors and potential partners?
Investment Compatibility:
• Market space
– Compatible with the funding strategy?
• Development stage
– Seed, early, expansion or late
• Portfolio
– Will it be a direct competitor with existing companies?
• Investment amount
– Amount sought compatible with the funding strategy?
• Personal
– Is there compatibility between investor and company‟s
management team?
• Geographic location
– Company strategically located for success?
IP Due Diligence
Six Basic Steps:
• Understand the core business
• Get Information on all APRs
• Confirm all IPRs held
• Compile unregistered IP assets
• IP asset valuation
• Confirm company‟s right to use IP
Patent Novelty Searches:
• Similar technology patented
• Searches in key foreign markets
Internal Procedures for Safeguarding IP Rights:
• Internal procedures, guidelines or code of conduct set in
place for the identification & safeguarding of IP
• Provisions incorporated into the employment contracts
imposing: – confidentiality obligations; – all IPs created in
the course of employment to be vested in the Company
General Corporate Information:
• Memorandum & articles of association (or other
constitutional documents), all resolutions & consents
• Agreements/arrangements with other investors
• Minutes of meetings such as board, executive cttee, etc
• Attorney powers/other docs appointing/delegating powers
• List of panel solicitors, auditors, bankers & share registers
Management Due Diligence
• Management Resources
– Have top quality mgt resources at its disposal?
• Management Team
– Made up of top‐quality managers?
– What are gaps identified & plan to address them?
– Well diversified & complement each other?
– Success and/or failure records
– Commitment & dedication
Business Due Diligence
• Identification of Technology/Product
Type
– Evolution, Revolution or Innovation?
– Disruptive vs. Me‐too
• Value Proposition
– Compelling enough?
– Can it be mapped throughout the value chain?
• Market
– Who are the customers?
– Future, emerging, growth or mature?
– Regulatory & legal issues
– Sustainable?
• Competitive
Strategy – Existing & future competitors
– Competitive positioning
IP Due Diligence
• Securing of IP rights
• Patent novelty searches
• Internal procedures for safeguarding IP rights
• Insurance cover
Securing of IP Rights:
• Protect IPs by patent, trademark, industrial design
• Year of registration & awarded
• Filing number, type, class, status, etc
• Countries of registration
• Patent type, applicant & owner
• Spun‐out IPs
Insurance Cover:
• Insurance policy taken to cover any possible
infringement of 3rd party IP rights
• Keyman insurance policy to protect Company‟s
idea source
Legal Due Diligence
• General Corporate Information
• Government Regulations & Filings
• Indebtedness & Finance
• Property
• Insurance
• Trading Makers
• Material Agreements
• Debts to & Contract with Connected Persons
• Litigation
Page 27 of 42
Government Regulations & Filings:
• Licenses, permissions, authorisations, registrations &
consents
• Details of any inspections made & any alleged violations
assessed
• Reports filed and significant correspondence of the
Company with any regulatory agencies
Trading Makers:
• Standard terms and conditions of order, sale, supply or
purchase
• Licenses, permissions, approvals or memberships required
• Contract, orders, bids or tenders of major significance
• Joint venture agreements, management agreements & other
involvement with third parties
• Details of any trading disputes
Litigation:
• Details of all litigation in which the Company is involved
whether as plaintiff, defendant or third party
• Details of any arbitration, expert reference or other
quasi‐judicial or non‐judicial dispute resolution procedure
• Details of the claims, threats of action and other makers
which may result in litigation, etc
General Corporate Information:
• Year of incorporation
• Authorised share capital, units of ordinary shares, price per
share
• Issues & fully paid up share capital, units, price
• Shareholders, percentage, amount, type of shares
• Subsidiary companies, if any
Trade Payables & Accruals:
• Trade payable balances in respect to purchases of raw
materials, components, etc
• Accruals represent to various fees such as accoun.ng, audit,
directors, EPF, etc
Provision for Taxation/Tax Status:
• Tax submissions made up to year of assessment.
Related Party Transactions:
• Transfer pricing issues, etc
Entrepreneur 1800 Due Diligence
Know your potential investor: Like a marriage, you need to
be really comfortable with your partner.
• Compatibility
• Area of focus
• Area of expertise
• Life of fund
• Board representatives
• Reporting & monitoring structure
Indebtedness & Finance:
• Mortgage, charge, debenture, guarantee, indemnity
• Document & agreements evidencing borrowing,
whether secured or unsecured
• Bank letters or agreements
• All inter‐company indebtedness
• Details of regular payments required, e.g. royalties
• Details of contingent liabili.es
Material Agreements:
• All joint venture & partnership agreements
• Principal documents rela.ng to any acquisi.ons or
dispositions of businesses
• All contracts or agreements with or pertaining to
the Company & to which directors, officers or
owners of more than 5% of shares of a Company
• All agreements, contract or commitments between
a Company and one, more, or among shareholders
Financial Due Diligence
• General corporate information
• Financial statements
• Receivables, deposits & payments
• Trade payables & accruals
• Provision for taxation/tax status
• Income statements
• Costing review
• Related party transactions
Financial Statements:
• General accounting & records
– Up to date & audited? – Where records are kept –
Who prepared it – in-house or outsourced?
• Property, plant & equipment
– Proper fixed asset register maintained? – Properly
insured against fire, burglary, material damages, etc
Income Statements:
• Revenue
• Cost of sales
Costing Review:
• Cos.ng statement – computation of cost of
production, etc
Compatibility:
• People: – Finance vs. Technology, – Experienced
vs. Greenhorns – Successes
• Style: – Hands on vs. Hands off – Key terms in
Agreements – control items, consequences if
milestones not met.
Areas of Focus:
• Familiarity with technology space
• Is your business “sexy”?
• Technology vs. Financial
• Portfolio – Startups & Early vs. Expansion Stage –
Similar companies – Competing vs. Compliment
Page 28 of 42
Areas of Expertise:
• Can leverage to fill in gaps in your company
• Suppor.ng networks strong enough amongst – VC, banks,
etc – Other companies in the space – Technology & business
experts – Regulatory bodies
Life of Fund:
• How long before expire?
• Enough .me for you to grow?
• Short term vs. Long term investment
• Rush to exit – pressure for quick gains.
Board Representative:
• Who? – same person who evaluated the proposal?
• Exper.se to bring into the company
• How he or she adds value?
• Will he or she acts like an “internal auditor” – follow the
book to failure? or
• Act as friendly “devil‟s advocate” – a sounding board to
mgt ideas, especially on marketing & financial issues.
Reporting & Monitoring Structure:
• Frequency of reports
• Format of reports
• Milestone fulfillment set in stone? – Milestones
not met, disbursements blocked? – Realistic trigger
points
2.6. UNIVERSITY COLLABORATION ON ACADEMIC ENTREPRENEURSHIP – UKM EXPERIENCE
By Professor Mohammed Noor Embi, UKM Centre for Collaborative Innovation (Technology Transfer Office)
Transformation from resource-based to knowledge-based economy to achieve national mission
National mission
Innovation Economy:
Malaysia recognizes the urgent need for emphasizing innovation and creativity in the new economic model 1
Malaysia: critical to increase the country‟s overall global competitiveness via companies, government, & academia
New Skills: Success requires new skills and comprehensive government policies and programs to produce an
integrated innovation infrastructure and ecosystem
Performance Now: tangible results that positively impact Malaysian society
Page 29 of 42
• What does UMK do?
1. Bringing university-led innovations to market
2. Promote transfer of knowledge, technology products
and innovations through leadership of our researchers
3. Team with stakeholders across investment pipeline
to effectively bring our innovations to market
• Why does UMK do what it does?
As researchers, we are obligated to use our talents and
our resources to help solve some the social, economic
and environmental problems
• How does UMK do what it does?
Enablers –create conducive ecosystem and framework
to deliver capability and university-led innovations
the industry and society
Inculcating culture of innovation in UKM
• Develop an organizational culture in R&D that
embraces innovation as a core value
• Create a conducive entrepreneurial ecosystem on
campus
What drives the innovative culture in a University?
The internal culture is the answer
Academic entrepreneurship and innovation
What drives the innovativeness across Nations?
Popular belief:
ethnicity
Sociologists:
religion
Social-psychologists:
National culture
Geographers:
distance from the equator
Legal scholars:
Intellectual property
Economists:
Inputs
Policy makers:
Government policy
UKM findings:
Internal culture of the firms
UKM: Established on 18th May 1970
Main Campus on 1,100 hectares; Kuala Lumpur
campus on 20 hectares; Medical Centre on 22 hectares
UKM‟s Motto: Inspiring futures, nurturing possibilities
Staff: Total: 1,798 (181 professors; 326 associate
professors, 1051 lecturers, 174 tutors and 66 teachers)
Management and support staff > 7500
Student population since its inception in 1970 until
2013: 146,362 graduates; 2937 PhD and Masters;
International students from 42 countries
Page 30 of 42
Faculties (13)
1.
Faculty of medicine
1.
Faculty of economics and management
2.
Faculty of science and technology
2.
Faculty of pharmacy
3.
Faculty of health sciences
3.
Faculty of engineering and built environment
4.
Faculty of information science & technology
4.
Faculty of education
5.
Faculty of social sciences and humanities
5.
Faculty of Islamic studies
6.
Faculty of law
6.
Faculty of dentistry
7.
Graduate school of business
Research Institutes
• Institute of Malay World and Civilisation (ATMA)
• Institute of Environment and Development (LESTARI)
• Institute of Systems Biology (INBIOSIS)
• Institute of Islam Hadhari (HADHARI)
• Institute of West Asian Region Studies (IKRAB)
• Institute of Ethnic Studies (KITA)
UKM Graduate Students Statistics Enrollment 28 February 2011
PROGRAMME
LOCAL STUDENTS
INTERNATIONAL STUDENTS
TOTAL
PhDs
1,793
1,367
3,160 (31.5%)
Masters
5,763
1,118
6,881 (78.5%)
OVERALL TOTAL
7,556
2,485 (24.7%)
10,041
UKM Transformation phases
Page 31 of 42
Innovation Strategy
Towards Sustaining the Ecosystem
Infrastructure: Online IPR System
PIK
UKMTech
Agreement
•
•
•
•
•
STU
Licensed to 3rd Party
Joint Venture
Strategic Alliance
Outright Sale
Lab-to-Market Gap Funding: INNOVATION FUND
• Improves α-prototype to commercial prototype and market testing/requirement/ regulatory compliances;
• Develops the product along with commercial collaborator
• Pilot, scale-up and technology demonstration;
• Market Validation and Acceptance;
• Undertake activities that encourage close collaboration between researcher and commercial partner in term
of product development and financing
Page 32 of 42
Critical success factor for commercialization is market/sales
It is imperative that R&D initiative incorporates into its decision making process some commercial considerations
UKM R & D & C in relation to NEM (ETP)
The Research University in the Innovation Economy
Page 33 of 42
Mission of a Research University
Excellence in student education
• World-class research
• Create positive societal benefit
• Foster innovation and entrepreneurship
• Encourage in regional economic development
• Leadership in technology commercialization
“Technology commercialization should support the mission of a research university”
Ref: Radcliffe & Stevens (2013). Tech transfer and licensing agreement. NCET2 Course on Commercialization of
Technology. http://center.ncet2.org/images/files/RCC_Nov2013/lec5_stevens-radcliffe.pdf
Research Universities play a major role in the New Economy
- University research needs to be aligned to new Innovation-led economy and contributes to National Key Economic
Area (NKEA)
What is Innovation?
Innovation = technology + entrepreneurship. Commercialization of new ways of problem-solving by combining: technology:
improvements in product, process, marketing or organization; & entrepreneurship to turn ideas into wealth.
A continuum of activities
 New-to-the-world, new-to-the-market vs. new-to-the-firm
 Disruptive vs. incremental adaptation of existing technologies
 Privately-driven vs. requiring public-private partnerships/subsidies
 Successful implementation of creative ideas
Creativity is the production of novel and useful ideas by an individual or small group of individuals teaming up
Implementation refers to the methods use to put the creative ideas into practice
 Innovation = f ( creativity , implementation )
Value Creation in Innovation-Led Economy is Greater than Linear Growth under Resource-Led Economy
Page 34 of 42
Universities can be catalysts of economic growth
• The New Economic Model identifies innovation and entrepreneurship as the next source of growth assets
that we have in our human capital and R&D portfolio is not being made available to the market soon
enough, or at all.
• So how do we unlock the value of this huge untapped wealth, of uncommercialized R&D?
Other deliverables?
• To value-add research findings by considering the innovation value chain seriously; the potential impact of
research is not only to science but also to science business.
• University As Engine For Innovation
Research & Innovation Ecosystem in UKM
Research Management Centre.
Technology Transfer Office.
Technology Transfer Company (UKMTech)
that report directly to the Deputy Vice-Chancellor (Research & Innovation)
University Technology Transfer Office
Turning R&D into profits: Commercialization of R&D/Innovations
Vision: To be a leading Innovation & Technology Transfer Centre in the country
Mission
1. To inculcate the culture of innovation on UKM Campus
2. To promote transfer of UKM technology, know-how and innovation for wealth creation & societal well-being
3. To develop new enterprises from technological research & innovation & create value/multiplier effect to economy
Why do we do this?
• Transfer knowledge out of the university to benefit society and country‟s economy (increase impact of research)
• Create jobs within new start-ups
• Bring in new research funding, particularly industry/agency sponsored research
• Raise the profile of UKM
• Meet metrics as mandated by government
• Create financial returns for UKM and academic inventors (when technology/products/services are successfully
being sold, share profits in the form of royalties, maybe the sale of shares in successful start-up companies)
Policies on commercialization of research have been put in place
UKM IP and Commercialisation Policies: IP Main Policy (2010). Student IP Policy (2010) & Associate IP Policy
(2011). IP Commercialisation Policy (2011)
Bringing R&D Results to Marketplace
Page 35 of 42
Reward System: IP Commercialisation Policy
Nett commercialisation revenue may be distributed between Originator, UKM and UKMTech as follows:Nett Commercialisation Revenue (RM)
Originator
UKM
Faculty/ Centre/ Institute
UKMTech
First RM250,000
70%
5%
5%
20%
Next RM250,001 to RM1,000,000
50%
10%
10%
30%
Next RM1,000,001 and above
40%
15%
15%
30%
Source: UKM’s IP Commercialisation Policy 2011
TTO’s Objectives & Roles
MARKET-DRIVEN RESEARCH INITIATIVES
ETP RESEARCH FUND
• To realize UKM role in promoting government aspiration in the implementation of New Economic Model
(NEM) which is driven by Innovation and:
• To strengthen UKM role in creating Innovative Human Capital from secondary to tertiary level.
INDUSTRY CHALLENGE RESEARCH
• To carry out “Market-Pull” research that results in solution for the industry in the form of technology,
product development and innovation
• Solving the “Market Pains” and helping SMEs to increase global competitive edge.
R&D INNOVATION STUDIES
• To mitigate funding gap between proof-of-concept (PoC) and Prototype in order to interest industry taker /
investors to bring the research outcome to marketplace;
• Creating alpha or beta prototype.
• To facilitate researchers in identifying market needs in order to mitigate technology risk and will increase
the commercial potential and probability.
Page 36 of 42
IP Protection 2010-2013
Current Challenges
•
•
Need not only more IP in the pipeline, but also IP that more closely meets the needs of industry
PIK plans to provide hands-on support and introductions to facilitate greater interaction between
researchers and industry partners
• This activity needs to link into existing efforts by UKM to work with industry in Malaysia and overseas
Business Models
Scenario
• Since 10-20 years ago it has become common to try alternative
• Assignment (outright sales) - Transfer
pathways towards commercialization of new innovations
of legal and beneficial ownership
• Technology Transfer Offices (TTO ) has spun-out innovations
• Licensing:
into stand-alone start-up ventures with the help of external
-Exclusive, Non-Exclusive, or Sole
venture capital funds and/or internally-generated seed capital
• Start-up/Spin off company
• Joint Venture / Industrial Collaboration UKM Start Up Companies
• As of 2012, 30 start up companies were formed to commercialize
• Other: e.g. Unincorporated JV, OEM,
research products. Current Status (5 STUs at Market Entry, 10
Distributorship, etc.
exit as spin-off and 15 under incubation)
UKM TECHNOLOGY SDN BHD
UKM is currently intensifying its effort and focus on commercialisation of its Research and Development as part of
its objectives as the Research University in Malaysia. It is doing this through UKMTECH, which is the Technology
Transfer Company of Universiti Kebangsaan Malaysia, entrusted to accelerate the commercialisation of UKM‟s
R&D and IP into the market.
Vision: To be an effective Technology Transfer Company
Mission: To accelerate the commercialization of UKM‟s Intellectual properties
Symbiosis programme
The Symbiosis is a joint Graduates Entrepreneurship Programme between UKM and MTDC to promote
commercialisation of public-funded Research & Development (R&D). The objectives of the Programme are:• To promote the commercialisation of R&D output of public universities and research institutions;
• To increase the number of technology-based start-ups;
• To equip fresh graduates with entrepreneurial skills; and
• To provide employment for fresh graduates in a technology-based industry set-up.
The symbiosis engagement:
• UKM to provide TECHNOLOGY (+ technical consultation)
• MTDC to provide FUNDING (+ nurturing entrepreneur)
Page 37 of 42
UKM Commercialisation Roadmap
© Universiti Kebangsaan Malaysia 2012. All Rights Reserved
Typical Arrangement of a University Start-up Equity
© Universiti Kebangsaan Malaysia 2012. All Rights Reserved
Capacity Building Programme (Since 2010 to 2013): Academic Entrepreneurship course and text books have
been developed and are on offer
Universities are looking out from their ivory towers
• Collaboration will help universities focus their research on the wider needs of society and industry
• Companies are beginning to pursue their long-term strategies through collaborations with universities - create
value by partnering with universities
• Collaborative research is often focused on difficult issues and often related to long-term research -to mine
knowledge and technology generated by universities
• Research Universities can play a major role in new economic model
• Ensure Good science and GLP in order to translate R&D into innovations
From R&D to Business
• We are not counting on a commercialisation bonanza in the foreseeable future!
• When it comes to patent-based licensing and/or selling intellectual property (IP), most universities do not
generate enough income to cover the expenses of their technology licensing office
A radical shift in academic culture is inevitable
It is necessary to introduce initiatives to bring about a cultural shift within the academic community to:
(i) inculcate the concept of entrepreneurship in undergraduate and graduate education and
(ii) transform the traditional technology transfer process into a technology-driven innovation exploitation process.
Page 38 of 42
2.7. TECHNOLOGY TRANSFER – THE FRIM EXPERIENCE
By Mohd Shahidan Mohamad Arshad. Email: [email protected]
Venue: FRIM-MTDC Technology Center, FRIM
About Forest Research Institute Malaysia (FRIM)
•Awarded ISO 9001: 2001/2008 accreditation
•Five research divisions:
–Forestry and environment
–Product Development
–Biotechnology
–Natural Products
–Conservation of Forest Biodiversity
•With 5 other supporting divisions
•Interconnected through:
–Research Planning & Corporate Division
FRIM Strategic Commercialisation & Roadmap
Strategic Commercialisation objectives:
•Generate scalable & sustainable revenue base to
boost FRIM‟s commercial performance in markets
•Contribute to the performance of the forest-related
industry in Malaysia;
•Create economic value to Malaysian economy &
promote Malaysian competitiveness in the forestrelated industry
Innovation & Commercialisation Division “ICD”
• 1996 Corporate Affairs Division was formed
• 2003 Business Development Division
• 2006 Business Branch
• 2009 Innovation & Commercialisation Division
Main Function of the ICD
•To generate IP and R&D outputs with commercial value
that meet market needs
•To commercialize R&D outputs to interested parties
through transfer of technology
•To provide consultancy services to interested parties esp. in
regards timber forestry and environment
Operational objective:
•Implement market-driven commercialization programmes
supported by integrated research and business model.
Challenges:
Broad approach in R & D focus areas that could be
minimized by driving transformation of major revenue;
from non-strategic services to strategic services.
Recommendation: FRIM should focus in few areas where
it can excel in world class standard especially on the
„cutting edge‟ standards
Strategic Thrusts of Commercialisation Programs
•Build competitive technology intelligence capability
•Develop a few deep focus area to secure early wins
•Develop Strategic Licensing Programmes as part of
IPR strategy
•Develop a Partner-centric Distribution model as part
of its channel strategy
Commercialisation Strategies
STRATEGY 1: Intellectual Property (IP) Management
Sub-strategy: R&D findings for potential IPR
Types of IPR Management
1. Patent. 2. Trademarks
3. Copyrights. 4. Industrial Design
5. Trade Secrets. 6. Plant Variety*
STRATEGY 3: Producing New Companies
Sub-Strategy: Spin-off, start-up and joint-venture initiatives
IPR Data
Invention Disclosure
Patent filing
Patent granted
Trademarks (FRIM)*
Industrial Design
2007 - 2009
46
7
2
2
2010
15
18
1
8
4
STRATEGY 2: R&D Commercialization
Sub-Strategy: Licensing program as an integral part of the
IPR initiatives
2011
36
10
1
4
2012
30
11
2
2013
26
6
5
14
Total
153
52
11
4
Patent or publish: Our answer – 3 months
• Finish project
• Decide on patent filing – 3 months
• Submit publication
Integrating Patent Searches
Project Proposal Preparation
Project Evaluation by Panels
Project Approve
RO/Div. Dir.
RePP
PEM
• Negotiate to commercialise
-Patent granted –Publish –Commercialise
Project Monitoring
Project Completion
RePP
PEM/ICD
Page 39 of 42
FRIM Commercialization Process
1. Interested Parties
Contact Innovation and Commercialization Division
2. Information Sharing ICD will:
• Send additional information about technology or
• Arrange meeting with the inventor(s).
• Send reprint of recently published technology,
• Send a link if a patent has been issued on technology
3. Technical Discussions
• Meetings to discussing technical aspects of the
technology and how it might fit with company.
• A licensing officer from ICD may also attend if
licensing issues will be discussed.
4. Non-Disclosure
•If the technology is yet to be published and/or you
would like to discuss the technology in details with the
inventors, will require NDA.
•Where an exchange of material is necessary (as in many
biological and chemical technologies), a Material
Transfer Agreement (MTA) will need to be signed.
Types of Commercial Agreements
1. Technology Licensing Agreement.
3. Option Agreement.
2. Outright Sales Agreement.
4. Commercialization Agreement
Pops (Parallel Oil Palm Strand) Lumber
•World Intellectual Property Organization (WIPO)
Best Invention Award, Geneva (2008)
•Patented: MY-144683-A: Artificial Lumber Block
FRIM - SPPTe
•Green products from natural fibers. •FRIM begins
to use biodegradable products for food container,
paper bags and envelopes; No Plastic, No
Polystyrene.
High Temperature Drying (HTD) System
For treating rubber wood using high temperature drying
Consultancy Services
These are all kinds of advisory services, professional services
and expert services provided to the interested parties.
•Mission is to disseminate information on research services
to the interested parties especially to the forestry sector and
forest-based industries.
•Outcome of the consultation can be in the form of analysis,
design, reports, papers, software or products.
Incentives
Incentives
To Researcher
1.
2.
3.
4.
5.
6.
7.
RM 100
RM 1,000
RM 5,000
50%
50%
RM 500
RM 1,000
Invention Disclosure
Patent Filing
Patent Granted
Licensing Fee
Royalty Fee
Publication Award: Individual
Publication Award: Division
5. Negotiations & Agreement Signing
•Interested in licensing a technology from FRIM,
licensing officer from ICD will discuss /negotiate
•different types of licenses available and
•Request for due diligence materials. If you will also be
sponsoring research at FRIM, the licensing officer will
make sure you have the right contacts.
•Rights available which may include option, nonexclusive in a field of use, among others.
•The licensing officer will then send a draft of an
agreement for review and signature.
•Once an agreement has been executed, ICD will send
an original copy of the license.
6. Technology Licensing On execution of agreement:
• The inventors will provide the technology.
• Depending on how the agreement is set up, the
inventor(s) may assist in providing initial consultation
after delivery of technology.
• To facilitate the implementation of the technology,
inventor(s) can be appointed as company consultants.
8. Innovations
Awards: International
Gold: RM 1,500
Silver: RM 1,000
Bronze: RM 500
9. Innovations
Awards: National
RM 1,000
RM 500
RM 250
2.8. FRIM–MTDC Graduate Bio-Entrepreneur Development Programme (FMBioSis™)
The Objectives
•To expose local graduates to the potential of biotechnology and the opportunities available to bio-entrepreneurs.
•To expedite transfer of technology for development of biotechnology as a new economic catalyst for the country.
•To establish more entrepreneurship programme for graduates in the country, create job opportunities in
biotechnology sector and minimize reliance on employment in the public and private sector.
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•To foster and strengthen partnerships between entrepreneurs and research institutions (especially FRIM) to
accelerate the development of research-based business industries.
•To acquire knowledge and enhance entrepreneurship development programme as well as value-added services
towards the development of better programme in the future.
Under this Entrepreneurs Development Programme:
•FRIM as the technology and expertise provider, whilst
•MTDC provides financing & nurturing of graduate-entrepreneurs.
•In addition, MTDC is also providing value added services such as
market development, fund raising, business development, financial
planning and sourcing and development of business plan.
Functions/Services/Products:
•To develop qualified graduates to become bio-entrepreneurs
•FRIM as the technology provider;
•MTDC as the sponsor.
•FRIM to found spin-off companies
Potential Market Deliverables in Natural Products Industry
Quality planting
materials
Quality raw materials
Working group/ Task
force needed
Quality extracts/
ingredients
Multidisciplinary
Approaches
Potential MTDC
fundings/supports &
FRIM Technological
Services
Quality products
2.9. SYMBIOSIS ENTREPRENEUR EXPERIENCE
By Mohd Ramdan Parman
Ciéra® Eco Friendly Multipurpose Disinfectant
1 Litre Packaging
5 litre packaging
Page 41 of 42
Product Features & Benefits FEATURES
• Kills 99.9% superbugs and common food
contaminant microbe
• Eco-friendly products (SIRIM Eco-Label
certified)
• Plant based active ingredient (Triclosan &
Hippochlorate Free)
• Natural based (formula) ingredients
• Non-irritant to the skin
• Convenient, time and energy saving.
ENEFITS
• Protects the consumer from infection by multi drug resistant
pathogenic microbes and food poisoning.
• Green technology – Highly biodegradable product. Preserve the
food chain and protects the environment
• Peace of mind by not using harmful and or corrosive chemicals.
• Safe for use – no harmful (toxic /carcinogenic) chemicals.
• User friendly
• Non rinse, cleanse and disinfect at the same time
2.10. UKM SYMBIOSIS ENTREPRENEUR EXPERIENCE
By Dr. Khairul Idzwan Baharin. Email: [email protected]. Facebook: Khairul Idzwan Baharin
CEO/Managing Director, Cell Tissue Technology Sdn Bhd
MyDerm™
Skin substitute, used in treatment of:
• Chronic non-healing ulcers, i.e. diabetic foot ulcers, bedsores
• Large skin loss, i.e. severe burns, trauma
• Other skin & medical cases
• Outstanding features:
Autologous
• Bilayered, i.e. dermis + epidermis
• 3D – HPD biomaterial as scaffold
• Mimic native skin – growth factors, proteins and other biochemicals
As ultimate alternative for conventional SSG (gold standard):
• Less pain, better cosmesis, faster healing, improve quality of life
Share holding percentage
Shareholders
UKM
Prof. Dr. Ruszymah Hj. Idrus (Inventor)
Dr. Khairul Idzwan Baharin (CEO)
TOTAL
Nationality
Malaysian
Malaysian
Malaysian
%
40%
30%
30%
100%
Advantages of Incubation/Biosis programme
• In-house existing and potential patients, i.e. MyDerm™ consumers
• In-house expertise/doctors who know, understand and embrace the whole concept of MyDerm™
• In-house facilities – complete with hospital setting and state-of –the-art cGMP lab to ensure quality
• In-house researchers – for further refinement, upgrading and troubleshooting of the product
• In-house manpower
• In-house infrastructure
• In-house interdisciplinary support
• In-house trust, believe, hope, faith and courage
CONCLUSIONS AND RECOMMENDATIONS
The secret behind the success of the Malaysian technology commercialization and industrialization model is
extensive inculcation of this culture, funding, organizational structure, attention to detail, training, mobilization,
collaboration, teamwork, coordination, synergism, integration, resilience, brilliance, and commitment of staff and
government at each and every level, department, centre and unit to enhance focusing and achievement of expected
and profitable results. Success is also helped by the mix of passion, dedication, knowledge, technology, innovation,
conviction, support, investment and nurturing. Chuka University and the Government of Kenya should seriously
borrow a leaf from these practices and implement the same in order to succeed in their own Visions and Plans.
Page 42 of 42

Report of the MTCP-MTDC Technology Commercialisation

Transcription

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