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Heriot-Watt University & Technology Transfer Gillian E Mc. Fadzean Director Technology & Research Services Heriot-Watt University & Technology Transfer Gillian E Mc. Fadzean Director Technology & Research Services

Research Profile Operates strongly in niche areas: Science - Engineering - Management - Languages Research Profile Operates strongly in niche areas: Science - Engineering - Management - Languages Major international player in selected areas Upstream petroleum engineering Applied and actuarial mathematics Photonics science and engineering Microengineering and materials engineering Logistics Underwater systems engineering 415 academic staff; 241 PDRAs; 390 Ph. D students

From “Blue Sky” to “Applied” research Increasing Certainty about the Validity of the Knowledge From “Blue Sky” to “Applied” research Increasing Certainty about the Validity of the Knowledge Research Councils Blue Sky Basic Applied Industry: Economic Growth Increasing Certainty about the Value of the Knowledge

Industry Links “A series of companies linked by a corridor” 40 % research income Industry Links “A series of companies linked by a corridor” 40 % research income from industry Technology Transfer embedded in teaching & research Strategic alliances with industry with joint research agenda Consultancy @£ 1 million per annum; CPD @ £ 0. 5 million Excellent links with small companies

Research Survives? Petroleum Engineering 80% funded by industry World leader in training and consultancy Research Survives? Petroleum Engineering 80% funded by industry World leader in training and consultancy RAE – 5* Twice

Technology Transfer Strategic Backdrop 1. Pre 1995 close organic links with industry - research, Technology Transfer Strategic Backdrop 1. Pre 1995 close organic links with industry - research, consultancy, CPD, students, exchanges 2. 1995/6 - Commercialisation Strategy for Scotland 3. Objective - economic development by creation of new companies from universities 4. 5. 3. Scottish Enterprise targets = spin-outs from universities! 6. 4. 2001 - Strategy revised to include licensing to existing Scottish owned companies…………….

Why Transfer Technology Industry Revenue Generation Strategic Advantage Benefit local economy & UK Input Why Transfer Technology Industry Revenue Generation Strategic Advantage Benefit local economy & UK Input to student training = future employees University Utilise inventions for public good & benefit Develop Technology Benefit local & national economy Reward, Retain & Motivate Academics Revenue generation (? ) To induce closer ties to Industry

Policy Framework IP generated by staff is owned by the University Policy Framework IP generated by staff is owned by the University

External Policy Framework UK & Scottish Executive & Universities & Scottish Enterprise & professional External Policy Framework UK & Scottish Executive & Universities & Scottish Enterprise & professional KT groups in UK Funding Shefc & University & economic development agencies

Establishing Technology Transfer • Create order from successful chaos • Bring 3 independent functions Establishing Technology Transfer • Create order from successful chaos • Bring 3 independent functions together • Establish policy framework – and get it accepted!

Technology & Research Services An integrated unit to support the: • Delivery of world-class Technology & Research Services An integrated unit to support the: • Delivery of world-class innovative research that meets the needs of business & industry • Transfer of knowledge • Commercial realisation of ideas • Generation of income for the University and for the academic community • Growth of the local and national economies

Technology & Research Services Working with colleagues TRS : Provides research support and commercialisation Technology & Research Services Working with colleagues TRS : Provides research support and commercialisation services to Heriot-Watt University staff. Promotes the transfer of knowledge by developing collaborative links between industry and academia, through collaborative research, technology licensing, the delivery of training and consultancy services Promotes University expertise and services to industry Develops enterprise skills in staff and students Works within an agreed strategy

TRS = Integrated Functions Service Functions Enterprise Functions Research funding and information Management information TRS = Integrated Functions Service Functions Enterprise Functions Research funding and information Management information on research & TT Environment scanning -political & market industry connections Project management IP portfolio management & valuation Contract negotiation, drafting, agreement of terms Management of TT process Invention disclosure Identification of exploitation route Patent application & prosecution Agree terms for Licensing/options/business creation Allocation of income/equity Agree staff secondments & access to facilities

Research & TT are integrated • Research Planning & large initiatives • Research funding Research & TT are integrated • Research Planning & large initiatives • Research funding support - eg active EU management • Identification & negotiation of IP in contracts • Projects are tracked for IP foreground and back ground • IP exploitation route is decided as research project ends • Exploitation route protects the research base • Strategy for company relationships • Company needs are identified and matched to HWU expertise

Technology & Research Services Technology & Research Services

Knowledge Transfer Information Life Long Learning / Continuing Professional Development Knowledge Transfer Partnerships People Knowledge Transfer Information Life Long Learning / Continuing Professional Development Knowledge Transfer Partnerships People Consultancy Knowledge Transfer Technology Transfer Products Consultancy Technology Transfer Technology

Internal Decision Making: Fast and Clear Policy Framework & budget Director +Rector’s group Identification Internal Decision Making: Fast and Clear Policy Framework & budget Director +Rector’s group Identification of commercial opportunity Research/Legal /IP team & TT Team Exploitation Routes & Valuations TT team Director + Internal/external panel Implementation & Commercial Terms TRS (me!)

Collaborative Research with Industry Developed industrial strategy Find industry partners & form strategic alliances Collaborative Research with Industry Developed industrial strategy Find industry partners & form strategic alliances Create the legal framework & protect the IP Negotiate the commercial terms Project oversight & dispute resolution Management information to University

Knowledge Transfer • Providing solutions for industry • Matching business needs to HWU expertise Knowledge Transfer • Providing solutions for industry • Matching business needs to HWU expertise • Sales of facilities/ services • IP advisory service for SMEs • Business development advice for SMEs • Technology audits • Creating funded research & training links

Continuing Professional Development (CPD) • Identifying market opportunities and shaping strategy • Marketing & Continuing Professional Development (CPD) • Identifying market opportunities and shaping strategy • Marketing & setting financial targets • Advice on pricing, organisation and marketing of CPD courses • Hands on assistance • Course completion certificates & evaluation questionnaire • Management information to University

Consultancy • Identifying market opportunities and shaping strategy • Marketing & agreeing financial targets Consultancy • Identifying market opportunities and shaping strategy • Marketing & agreeing financial targets • Establishing consultancy fee charges & other costs • All contractual and legal matters • Invoicing, cost recovery and fee payment to staff • Project oversight and • Dispute resolution

Heriot-Watt Trading Ltd • Oversight on behalf of Board of Directors • Recommendations on Heriot-Watt Trading Ltd • Oversight on behalf of Board of Directors • Recommendations on incorporation of units as companies • Establishment of units as precursors to companies - quasi- incubators • Recommendations on cessation of trade • All contractual and legal matters

Legal & Intellectual Property (IP) Support • All commercial contracts - legal responsibility, negotiation, Legal & Intellectual Property (IP) Support • All commercial contracts - legal responsibility, negotiation, drafting, recording • Confidentiality / Non-Disclosure Agreements (NDA’s) Intellectual Property • Provision of advice on Protecting IP - Patent, Design, Copyright, Know-how • Patent Filing, (drafting patents) Design Registration & Prior Art Searches • Management of the patent process

Transparent & Equitable Standard processes for; Cost identification Management of staff KT activity Revenue Transparent & Equitable Standard processes for; Cost identification Management of staff KT activity Revenue sharing Equity participation in new companies Secondment of Staff Appointment of Directors to spin-outs Conflicts of interest Access to University facilities

Technology Transfer Flow Chart Review Board Invention No Exploit Yes Summary of Invention Patent Technology Transfer Flow Chart Review Board Invention No Exploit Yes Summary of Invention Patent Application Drafted & Filed Market Research Yes Exploit Preliminary Market Research No Discuss with Inventor Prior Art Search Exploitation Route Identified & Progressed Updated Business Case Review Board Business Case No Exploit Yes Exploitation

Heriot-Watt Results. Companies 1999 -2005 Pre 1996: Edinburgh Business School Edinburgh Instruments Active: 2 Heriot-Watt Results. Companies 1999 -2005 Pre 1996: Edinburgh Business School Edinburgh Instruments Active: 2 Ei Anitec Easier Events Helia Photonics University Microstencils Pavement Technology Seebyte Scotweave Verbalis Power. Photonics Sur. CH Assisted Student Companies: Aquapharm Conjunct Sold: Senstech Liquidated: Multiverse Edinburgh Petroleum CAS Nitech Interactive Nandi Sistech Ice. Robotics Scotwave Medical Laser Technologies Terahertz Web 4 test

Benefits to the Inventor • Financial • Licensing income • Equity in new company Benefits to the Inventor • Financial • Licensing income • Equity in new company • Director / Consultant Remuneration • Furtherance of Research • Financial income • Additional resources (researchers, equipment) • Contacts/network • Reputation Enhanced • Satisfaction of Commercialisation of Invention • Broader Experience

Heriot-Watt Benefits Maybe? • • Government policy requires/applauds Greater influence on government policy for Heriot-Watt Benefits Maybe? • • Government policy requires/applauds Greater influence on government policy for R&D Staff better equipped to understand industry needs/ethos Students better equipped for working in industry Lo. o. ng term equity (and patent) investment Licence income - MIT = 3% of turnover! Industry more likely to listen and to value?

Benefits to the University Financial • Equity – when we sell! • License fees Benefits to the University Financial • Equity – when we sell! • License fees – if we can recover! Staffing • Research Associates with new skills • Attracts entreprenuerial staff Contacts • Government / Funding Organisations / Industry Reputation & Mission • As entrepreneurial centre = More attractive to future students & staff

Everyone Benefits A win-win situation • • • Greater understanding More influence on government Everyone Benefits A win-win situation • • • Greater understanding More influence on government - together Increased skills levels - academic & industry More investment & more success Better quality of life