Gartner ITexpo, Florence, March 2003

1. Commercialising R&D - an ICT Ireland Perspective Dr. Sean Baker, IONA Gartner ITexpo, Florence, March 2003

2. Capability Capability Need Need Need Need Need Need Need Need Downward pressure Downward pressure Downward pressure R&D Production related Sales & Marketing ICT Ireland - Working Groups • Working groups: • IP rights • Clustering • Commercialisation of R&D • We formulated a set of recommendations on behalf of the ICT sector • Recommendations on how to increase the amount of commercially relevant R&D • We are now looking at issues around the successful exploitation of R&D

3. Aims of this talk • To talk in some detail about one or two of the recommendations from the Commercialisation of R&D working group • To quickly present other recommendations, and to encourage you to read the working group reports

4. Working Group Members • Pat Donnellan, AEP Systems • Michael O’Connor, CorkBIC • Declan O’Mahony, Firecomms • Sean O’Sullivan, Rococo • Paddy Holahan, Newbay • Sean Baker (chair), IONA • Simon Dobson, TCD • Michael Gufferty, NMRC • Paul Kavanagh, ICT • Dan Maher, ACT • Tommy McCabe, ICT • Dick McQuillen, McQuillen Associates

5. Recommendation 1 Set up Applied Research Institutes • Closely associated with the Universities or Institutes of Technology • Some departments may change to become institutes • Very focused research topics • Chosen by the institutes and industry • Research to be carried out withindustry • Easy to get “right to use” (with very simple legal structure) • Aim: to improve Irelands’s R&D capability, not to build up collections of IP • Emphasis on collaborative research • Often with a set of companies interested in the same results • Some contract research in the mix • Suitable staff incentives and promotion rules • The centres do not necessarily need to be physical, but they need strong focus

6. Recommendation 2 Strengthen the R&D carried out by the MNCs in Ireland • This will strongly increase the amount of R&D carried out elsewhere in the economy • Greater chance of meaningful partnerships with Irish SMEs in ICT • Increase in long-term commitment to Ireland • Spin-outs, spin-ins

7. Recommendation 3 & 4 Create linkages between 3rd Level, Applied Research Institutes and Industry • Sharing of staff, easier movement • Visiting lecturships/professorships • Simplified legal agreements for co-operative research • EngD degrees • …

8. Module II Increasing the chances of commercial success Examples of the barriers to commercialisation of R&D • The principals have the wrong motivations • They do not know the right people • First-timers do not know a good deal from a bad one Companies need to be matured before they make some large steps.

9. Module II (cont) Increasing the chances of commercial success Areas in which we are likely to make recommendations: • A skills pool, to enhance senior management teams • Companies need skills, but small companies cannot attract these. • There is a danger that they will hire inappropriately to fill missing skills.

10. Module II (cont) Increasing the chances of commercial success • Access to unbiased advice • e.g., when taking an equity-backed investment • EI grants for applied research • Making these more focused on research that really is commercially relevant • Improving the co-operation between industry and grant-aided researchers • e.g, making more of the Innovation Partnership grants • Rules for exploiting research carried out in 3rd level institutions • Public procurement • The opportunities for small companies with relevant technology • Sales and Marketing specific issues • Training for ICT sales; Training for ICT product management

11. Discussion & Questions