Module 4: Intellectual property and commercialisation

Topic 2: Commercialisation and Translation

Introduction

This topic begins with an overview of the commercialisation process and an explanation of the benefits involved. It then looks more in-depth at what is involved at each stage, in particular the licensing versus start-up options. Sourcing funding for each stage is critical, but what funding is available and how is it secured? The researcher's attitude can make or break an investor’s or funder’s commitment to a project. Just how involved is the researcher in the commercialisation process? The topic looks at the researcher’s various options, how an exit is made, and profit sharing. The topic concludes with some key issues including realistic timeframes and the role the market plays in success or failure.

Learning outcomes

After completing this module you should be able to:

• Understand what role commercialisation is given in your institution
• Understand the different commercialisation drivers for institutions, funders, and individuals
• Describe the broad commercialisation process
• Cite the pathways of commercialisation
• Identify sources of funding for commercialisation
• Distinguish specific roles researchers can play in the commercialisation process
• Outline the points at which a financial return can be realised
• Comprehend the revenue-sharing policy of your research institution.

Topic content

Commercialisation is the process of managing the transfer of research knowledge to where it reaches an application in the broad marketplace. The knowledge may be in the form of a research outcome or skills and expertise; the commercialisation outcome may result in the development of a product, technology, service or business, community development program, publication (such as a book), or consulting activities. Importantly, a successful university commercialisation venture should not only result in economic returns but also see research being applied to the benefit of communities and society in general. Each institution will have a different balance between impact in the community and generating revenue for itself.
In this module, we deal primarily with the identification and commercialisation of intellectual property (IP) assets. Within a university context, commercialisation generally involves following one of a number of intertwined pathways:

• Consulting about the IP
• Forming start-up companies based on the IP
• Licensing the IP to a third party
• Collaborative research and development of the IP.

While research commercialisation is frequently associated with technology-based disciplines such as science and engineering, it is becoming increasingly common to successfully commercialise research from all disciplines including social sciences and the arts. The differences in commercialising research from the different disciplines usually reside in the form of IP protection necessary, the packaging of the research into a product or a service, and the commercialisation pathway. Some of these different approaches are highlighted in the case studies included as additional reading.

Why commercialise? Commercialising research, or “knowledge transfer”, can provide tremendous benefits for society as well as the researcher and his/her research institution. The range of benefits for individuals, institutions, governments, and funders can include:

• The satisfaction of bringing benefits to society, such as creating jobs, curing a disease, or solving a problem for industry or society in general
• Seeing your research translated into real products and services in everyday use
• Developing policy in use by governments and other organisations
• Personal economic gain (refer to the revenue-sharing incentives offered by your university)
• Expanded career options as well as enhanced 'employability'
• Professional development and peer recognition
• Funding for further R&D efforts
• Breaking free of the competitive grants cycle
• Meeting national economic, social, and political imperatives
• Meeting the requirements of a funding body
• For organisations such as CRCs and charities, meeting the specific objectives set out in their formative charter.

It is important to think through what motivates you as an individual, as well as what motivates your institution and those who may fund your research. Success is most likely when these motivations align, and when the expectations of the different parties are clearly expressed.

We will examine the commercialisation process further in the following sections:

2.1 Commercialisation process – an overview

2.2 Stages and pathways

2.3 Funding

2.4 Role of the researcher

2.5 Realising a return

Activity 3 – Research project reflections

When you have completed reading all the content of Topic 2, reflect on a project you are (or have been) involved in. Make a note of your responses to the following questions and bring them with you to the workshop.

1. List the potential benefits of your research for the end user.

2. What stage in development is your innovation? (select all that apply from below)

• Basic research
• Mid-stage research
• End-stage research
• Pre-clinical trials
• Clinical trials
• Proof-of-concept testing
• Prototyping
• Product development
• Service development
• Other

3. What might you be commercialising?

• Physical product
• Technology
• Service
• Business
• Something else?

4. What stage is your innovation at in the commercialisation process?

• Research and discovery
• Disclosure
• Evaluation
• IP protection
• Proof-of-concept
• Commercial pathways and resourcing:
• licensed
• start-up company
• consulting
• research collaboration