market driven research

Market Driven ResearchMarket Driven Research

Towards Creativity, Innovation and Towards Creativity, Innovation and the Marketplacethe Marketplace

Mohd. Murray Hunter

Introduction

Traditionally Research has been:

● Single disciplinary

● Followed personal interests of researchers

● Research output objectives:

►a paper

►a conference presentation

● Not part of any strategic research plan

Researchers’ Environment

• Teaching commitments

• Intellectual and market isolation

• Research driven by need of funding

• Little expectation other than ‘traditional research output’

• ‘Lukewarm’ supportive environment

• Something that is expected

Typical Research Model

Idea from Research Institute, University faculty or individual within them

Undertake study with objectives interesting to researchers

Primarily single discipline approach

Objectives based on discipline thinking

Project results and conclusion

Publish

Paper at Conference

Add to CV

Little commercial interest:Private sector unaware

No or limited economic study or little consideration to scale up potentialNB: to bioprocess engineer has this as a fundamental consideration (difference between scientist and engineer)

New Expectations

• Market driven• Collaborative and interdisciplinary• Industry partner• R&D&D or R&D&C&C• National Responsibility (driver of economic

growth)• Bias towards applied research• Commercialisation is the desired output

Problems Associated with Commercialisation

• Market

• Technology takers

• Legal

• Institutional

• Technology

• Other

Market Problems

• Failure of invention to meet market needs

• Small size of target market

• Lower price than expected

• Unable to gain distribution

• Lack of market research

Technology Taker Problems

• Lack of willingness of companies to take up technology• Disagreements on terms and conditions of technology

transfer• Perceived complexity of technology and risk• Limited human resources on the part of companies to

put time into implementing the new technology or launching the product

• Not familiar with industry• Financially weak• Returns not attractive enough• High capital expenditure not worth the risk• Limited distribution capability

Legal Problems

• Lack of Clear and clean patent ownership

• Government regulations

• Legal costs

• Due diligence and burden of risk

• License exclusivity

• Long period of time for patent grant

Institutional Problems

• Too many people to deal with at the university or research institute

• Low priority by university administrators to allocate resources for patents, contract research, consultancy, technology transfer and education services

• High cost of licensing• Post license technical support offered by university• Researcher leaves institution• Researchers too many projects (time constraint)• Lack of expertise in commercialisation unit

Technology Problems• Technology not complete Research Investors expect complete technology transfer Development Commercialisation

Strong

Moderate/ Strong

Weak

Tan Sri Dr. Yusof Basiron

LaboratoryResults

Pilot Plant/Prototype

Industrial Scale

Technology Transfer

Other Problems

• Unreliable financial estimates

• Rely on Government grant that never comes

• Poor follow up

The Elements of a Successful Research Cluster

1. A creative environment for motivation and productivity 2. Innovation to develop and screen ideas 3. A strategic approach to be relevant to the marketplace

A Creative Environment

A Creative Person

enthusiastic, risk taker, can think both serially and laterally, good at assessing opportunities, friendly, has good technical know-how, able to access what he or she doesn’t know, broad vision, an eye for detail, strong motivation to overcome hurdles, can give honest assessments and is aware of their personal strengths and weaknesses

University Organisation

• Hierarchical• Process orientated• Procedurised• Departmentalised• Strong “conformity” values• Social goals verses performance goals

THIS IS AN EXCELLENT ORGANISATION DESIGN FOR A TEACHING INSTITUTION

Conflict Between Organisational Design and the Creative Individual • Hierarchical design excellent for time and

motion activities – In macro terms a teaching organisation is a time and motion logistical exercise

• An organic organisational structure has been found to be much more supportive of a creative environment

Desired Characteristics of a Research Cluster

(Matching RM9 Desired Output Objectives)

• Strong Science Base Leading research organisations: University departments, hospitals/medical centres and schools, charities, critical mass of researchers, world leading scientist(s)

Comment: Remote from us• Entrepreneurial Culture Commercial awareness and

entrepreneurship in universities and research institutes, role models and recognition of entrepreneurs, second generation entrepreneurs.

Comment: Need to create • Growing Company Base Thriving spin-out and start up companies,

more mature role model companies. Comment: We are at a great disadvantage, have to work hard

on this issue

• Ability to Attract Key Staff Critical mass of employment opportunities, image/reputation as biotechnology cluster, attractive place to live.

Comment: Have to compensate through strong collaboration• Premises and Infrastructure Incubators available close to

research institutes, premises with wet labs and flexible leasing arrangements, space to expand, good transport links, motorways, rail, international airport.

Comment: Time may improve this

• Availability of Finance Grant agencies, Venture capitalists,

business angels Comments: Have to be very active in this area

Desired Characteristics of a Research Cluster (cont..)

• Business Support Services and Large Companies Specialist business, legal, patent, recruitment, property advisors, large companies in related sectors (healthcare, agrichemical, chemical, food processing)

Comment: A disadvantage, have to work hard on this• Skilled Workforce Skilled workforce, training courses at all levels. Comment: Require coordinated programs

• Effective Networking Shared aspirations to be a cluster: regional trade

associations, shared equipment and infrastructure, frequent collaborations. Comments: Need to work hard

• Supportive Policy Environment National and sector innovation support policies, proportionate fiscal and regulatory frameworks, support from RDA’s and other economic development agencies, sympathetic planning authorities.

Comment: Positive retric there

Desired Characteristics of a Research Cluster (cont..)

What is Innovation?

Examples of Innovation

Examples of Innovation

Examples of Innovation

Examples of Innovation

Examples of Innovation

Examples of Innovation

Examples of Innovation

Examples of Innovation

Examples of Innovation

Vanilla Breakthrough?

Cationic Breakthrough?

To soap or not to soap?

Is this a breakthrough or not?

Dispelling the myths about innovation

• Less than 5% of new products launched on the market are successful

• Out of 100 new ideas, less than 2 become a commercial reality

• Most companies are followers and not innovators (even the Body Shop)

• Very few really novel innovations are ever launched commercially

• Most new products are incremental steps in enhancement, rather than something completely new (similar to the automobile industry)

The elements of innovation

Culture Ego

Strategic Thinking

Innovation

FocusCreativity

InterpersonalInteractions

Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation

Tempera -ment

Ability

Skills

Learning

Focus

Time

Identified Idea

Action

Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation

Strategic Thinking

Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation

Strategic Thinking

Orientation towards gaining benefits

Orientation towards effectiveness

Orientation towards resource sufficiency

Vision and foresight

Creativity

Solutions Opportunities

Ideas

Creativity

Lateral thinking

Serial Thinking

GroupEducation

Culture

Strategic Thinking

Personality

Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation

Ego

Environment, Family,Peers, Culture

Outer Ego; Responsibility,Accountability, courage

Inner ego: self assurance, dedication, motivation

Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation

Interpersonal Interactions

Sincerity

Warmth Personality

Networking Team/Individual Orientation

Character

Judgment

Culture

Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation

Culture

Values

Beliefs

Assumptions

Leadership

Theories in action verses Espoused

Norms and group behaviour Organisational

learning (single or double looped

Productivity & effectiveness

Stories, myths, heroes, artifacts, informal behaviours

Effect of Factors on Innovation

Variable Absent Extreme

Focus Random Tunnel vision

Strategic Thinking Switched off Unfocused

Creativity Unimaginative Over-imaginative, lose sight of big picture

Ego Purposelessness Self-deluded

Interpersonal Relationships

Individualistic and independent

Hesitent to take responsibility

Culture Self centered and moraless

Fanatical

Optimum Innovation

Innovation Component

Qualities (at mean spectrum)

Focus •Have control of the situation•Put the project first

Strategic Thinking •Able to spot and work towards exploiting the opportunity•Able to secure resources (beg, borrow or steal)

Creativity •Able to create both laterally and serially•Spot and exploit opportunities

Ego •Inner need to make a difference•Able to take risks

Interpersonal relationships •Able to network effectively

Culture •Spot and exploit causes•Create social capital

Factor Synergy

Ideas Solution Opportunities Screen Realisation

Spots Evaluates Selects Targets

Creativity

Strategic Thinking

Focus

The Innovation of the The Innovation of the EagleEagle

Idea - Food

Scans Opportunities, Spots, Evaluates & Selects (resource choices)

Targets

Realises his catch

Perfect Creativity, Strategic Thinking & Focus

A Strategic Approach to be Relevant to the Marketplace

Buyer Power, eg:buyer choicebuyers size/number

change cost/frequencyproduct/service importancevolumes, JIT scheduling

New Market Entrants, eg:

geographical factorsincumbents resistance

new entrant strategyroutes to market

Competitive Rivalry, eg:

number and size of firmsindustry size and trends

fixed v variable cost basesproduct/service rangesdifferentiation, strategy

Product/Technology Development, eg:

alternatives price/quality market distribution changes

fashion and trendslegislative effects

Supplier Power, eg:

brand reputationgeographical coverage

product/service level qualityrelationships with customersbidding processes/capabilities

Figure 7. Porter’s Five Forces of Competitive Position

A Market Driven R&D Model

Industry defined problem or issue

Parameters of problem researched with reference to interdisciplinary frames

Theoretical solution thought out, becomes project objectives, with boundaries of industry requirements

Process designLaboratory trialScaling up

Industry implementation

Process EngineeringElectrical EngineeringSensorsGMP

Process Manufacturing

Environment &OccupationalSafety Issues

Market & Commercialisation

Product Development

Refining of Crude Extracts

Extraction Processing

Cultivation

Domestication

Bio- Prospecting

Extraction TechniquesBio-ChemistryAnalytical Chemistry

Tissue Culture

Agricultural EngineeringPrecision FarmingBio-Chemistry Processing

Bio-Chemical Engineering

Fractionation & Bio-Reactor

Techno-Preneurship

Figure 8. From Bio-Diversity to Laboratory to Market-Place

Beware of Becoming Dyfunctional

Identification of Active ingredient in plant

Identification of Active ingredient in plant

Preliminary ASSAY Preliminary ASSAY

Cultivation, harvesting, extraction, refining, stabilisation, etc

Cultivation, harvesting, extraction, refining, stabilisation, etc

Trials in ‘made up’ formulations, eg shampoo, cream

Trials in ‘made up’ formulations, eg shampoo, cream

Go to market and sell product to customers, supermarkets, direct selling, distributors, etc.

Find a distributor

Seek advice on market potential

Collaborate

Collaborate

Various trials and assaysCollaborate

Negotiate Agreements(farming, processing, marketing)

Product Registration

To international market as a raw material fine chemical

Little IP GeneratedMost likely to stay in domestic market

IP Generated that is transferable for ValuePotentially has a global market

Figure 4. Two Pathways for the Commercialisation of Research (example for a plant extract)

Farm to Consumer As an Intermediate Product

Conclusions

• First and foremost: Industry collaboration• Principal of research wide, focus narrow: Inter

institutional collaboration• Develop the correct organisational structure for

maximum creativity• Seek incremental advances in research to reduce risk

and shorten lead times for research output generation• Become a strategic thinker and scan the environment• Plan your expected milestones and outcomes• A techno-entrepreneurship and commercialisation

component of the cluster

Techno-entrepreneurship & Commercialisation Component

• to carry out specific research regarding the specialist area of engineering techno-entrepreneurship to support KUKUM’s role as an engineering university,

• Post Graduate techno-entrepreneurship research programs (i.e., engineering background who want to undertake post graduate research in technology commercialisation, issues with technology commercialisation and technology management)

• to run seminars and workshops on techno-entrepreneurship for the cluster, schools and university,

• to provide input into core entrepreneurship undergraduate programs as a resource to PKKK,

• to liaise and assist other parts of the cluster develop entrepreneurship and commercialisation of their research (interdisciplinary)

Techno-entrepreneurship & Commercialisation Component

• to assist in funding and finding stakeholders for start-ups from the cluster

• techno-entrepreneurship policy development centre

• to develop seminars for target audiences to enhance KUKUM’s expertise image as an techno-engineering institution & source of revenue

Techno-entrepreneurship & Commercialisation Component

• to carry out the incubator function as required for grants and IPTA policy

• to act as an entrepreneurial think tank

Techno-entrepreneurship & Commercialisation Component

Mechanical, sensors, nano, bioprocess, etc

CLUSTER

Part of cluster Techno-entrepreneurship & commercialisation

KUKUM SCHOOLS

Entrepreneurship resources

Post Graduates

Entrepreneurship, commercialisation & start-ups

Information and research dissemination

Specialist Corporate Seminars

Role of Techno-entrepreneurship & Commercialisation Unit in Cluster

Thank You