Mr Tom Higgison & Dr John Jeffrey, University of Edinburgh

1. Mr Tom Higgison & Dr John Jeffrey, University of Edinburgh

2. The University of Edinburgh • Edinburgh Research & Innovation • Commercialisation of Intellectual Property (IP)

3. The University of Edinburgh • Founded in 1583 • Top 5 UK Universities for research awards • 20860 students( 16165 Undergrads, 4695PhD) • 3195 academic/related full-time staff(7146 total) • Top research University in Scotland • 90% of research staff rated 4, 5 or 5* in 2001 RAE • 9 out of 49 research units rated 5* which include electronics & engineering

4. University Drivers

5. Goals in Research & Commercialisation “To build on our standing as one of the world’s leading research-intensive institutions: to be a vibrant research community that stimulates new ideas and discoveries and to contribute to the economic, social, cultural and environmental development of Scotland and the world”

6. The Universities Famous Inventors • James Dewar – vacuum flask & cordite • Joseph Lister – Pioneer of antiseptic surgery • James Clerk Maxwell – Pioneer in electromagnetism • James Simpson – Pioneer of Anaesthetics • Ken Murray – First genetic Engineered Hepatitis B vacine • Stephen Salter – Designed forerunner of industrial assembled robots

7. UoE Spin-out Companies • Wolfson Microelectronics plc • Mixed analogue-digital integrated circuit design • Market capitalisation over $1B, 300 employees • VLSI Vision • Low cost CMOS sensors, now part of ST Microelectronics, over 100 employees • MicroEmissive Displays • Producer of smallest colour TV screen • 37 employees

8. Edinburgh Research & Innovation - we do • Pre-award research support including European Office • Consultancies • Technology evaluation • Licensing • Company formation • Incubation

9. ERI is a wholly-owned University Company • ERI’s primarily objectives are to:- • Increase range of research funding to 40% of total funding (vs charities & RC’s) • Currently 24% in 2004/5 • Increase volume of research funding by 15% each year • Currently around 7% • Effectively exploit the research base & optimise impact on the local economy

10. Commercialisation of University IP • Mandate: • Sponsor requirements • Income to University • Policy • Shared return for University/Inventor • Process • Disclosure and Commercial Evaluation • Protection & Valuation • Sourcing Buyers/Licence Negotiation/ Company formation

11. Management Structure of ERI

12. ERI Commercialisation Performance Target metrics

13. Structured interview Prelim. market / Pat. study Patentability report Evaluation of Idea Protection Strategy Exploitation Strategy Licensing Route Create Company UK Patent Filing Production of NCD PCT Decision NCDs to Targeted Companies Opps on ERI Website Opps on ‘Free’ Websites National Phase Feedback from Co’s Negotiate the Licence Monitor

14. Intellectual property Ownership • If invention made during the course of member of staff’s work then belongs to their employer eg the University • PhD students tend to own their IP but depends how they are funded • Undergraduates own their IP

15. Patents: Why do it? • A basis for funding both licensing opportunities and setting up companies • Venture Capitalist/Business Angels look for secure IP position • Guarantee monopoly for new business/licensee competitive advantage • Barrier to entrants/competition • Tradable commodities • Renders inventions/IP to paper allowing trade • Usually through license agreements • Define term, scope, territory, return

16. Licence opportunity • Get to know the market • Identify potential licensees • Prepare Non-confidential Disclosures • Get interest before NDA’s in place • Term: Exclusive or non-exclusive • Scope: Application/Market • Territory: World-wide or UK, Europe, US • Return: royalty • % of sales, % of profits, minimum royalty • Claw back improvements to invention, do not assign initially, set milestones, limited liability, patent costs!

17. Company Formation • Bigger risk but larger potential reward • Lifestyle firms --> Middle-Market firms  High Growth Firms • Routes to market options • Direct distribution • Licensing • Strategic alliance • Identify the 3M’s • Market • Management • Money • Business Plan

18. Who does what and how

19. Issues to deal with Spin-out Companies • Conflicts of interest • Managing expectations • Effect on School – loss of staff, loss of income, effect on RAE • Research licences • Leave of absences, secondments • On-going relationship with School

20. What we look for Committed staff Good technology baseline Business Plan Market Management Money What we do We encourage We check We help prepare We help identify We help attract We help secure Company Formation Assistance

21. Research Base Licensing Collaboration Co Formation Start Up Support Funding SIE EPIS Incubation Bio BioMed SMC Info ETTC Science Park Biomedical Park Technopole CBR

22. EPIS (Edinburgh Pre-Incubation Scheme) • Required different thinking • For entrepreneurs to “work-up” the idea before incorporation • Required buy-in • Open to all policy • Flexible - Part-time / spare-time • Academic and business mentoring • £10,000 zero interest loan • No University (or other third-party) IP position • Been running for 30 months • Welcomed by Schools • 15 companies • 27 jobs

23. Scottish Microelectronics Centre OFFICE1000m² of office space on three levels CAT5E wiring for voice, data and fax. conference and meeting rooms.  Kings Buildings campus facilities. CLEANROOMS10 class10 cleanroom bays.  SUPPORT SERVICESincludes book-keeping, telephone answer service, event management, etc.

24. Scottish Microelectronics Centre • Joint initiative UoE, SEE&L, SE • Specific microelectronics incubator • 300 sq m clean room, 1200 sq m office • Currently 6 companies & 1 Trade org • Runs business support & mentoring progs. • Managing MIAC – support for microelectronic industry • Cash positive & self sustaining

25. EdinburghTechnology Transfer Centre • Joint UoE ECC initiative – joint company • 553 sq m Office Space • Houses 14 companies (50 employees) • Has assisted 29 companies (61 employees) • Provides supportive management structure (professional clinics, workshops, “sheltered housing”)

26. Edinburgh Technopole • Located at Bush estate, 126acres • Science & Technology park • Owned by UoE, backing from Grosvenor • 2 Multi-occupancy buildings + Bush House • 7 Companies (77 Employees) • More buildings planned

27. Bio-Medical Park • Proposed site located at Little France, adj to new Medical School (25 hectares) • Joint project UoE, SEE&L, ECC, Trust • Specific Bio Medical Theme incorporating Bio Incubator • Very early stage, completed feasibility study

28. Centre for Biomedical Research

29. Metric Technology Disclosures Patents filed Licenses negotiated Consultancies Spin-out Companies Start-up Companies Target vs Actual (2004/5) 100 vs 103 25 vs 80 15 vs 31 >£2m vs £2.9m 5 vs 3 10-15 vs 20 ERI Commercialisation Performance Metrics: Targets vs Actual

30. $M research funding required for

31. Company Formation Metrics

32. Further Information Name - Dr John Jeffrey Telephone+44 (0)131 651 4060 Fax - +44 (0)131 650 9019 Email - John.Jeffrey@ed.ac.uk www.research-innovation.ed.ac.uk