Innovation & Commercialization at VTT Howard Rupprecht VP – New Business Development

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Presentation content

1. VTT in Brief

2. VTT’s Research and Innovation Model

3. Commercialization at VTT

4. Innovation in Cleantech

5. Impact and Summary

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1. VTT in Brief

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VTT’s mission

VTT creates the prerequisites for society’s sustainable development, employment and wellbeing.

VTT produces research and innovation services that enhance the international competitiveness of companies, society and other customers.

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Basic research Applied research Development

VTT

VTT’s status as performer of R&D work

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Business impacts

Innovative research Creating new ideas, technologies, innovation

potential, incubating applications and growing competencies

Business from research VTT’s innovation process connects research

and innovation

Added value for customers and other stakeholders

- Strategic networks

and partnerships - Technology

infrastructures - Licensing

- Spin-offs - Partnerships

- Contract R&D - Expert Services

Strategic research portfolio Foresights & visions Frontier research Large programmes Focus area projects

Accelerated process

Customer and other

stakeholders’ needs

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Customer sectors - Biotechnology,

pharmaceutical and food industries

- Electronics - Energy - ICT - Real estate and

construction - Machines and vehicles - Services and logistics - Forest industry - Process industry and

environment

Focus areas of research - Applied materials - Bio- and chemical

processes - Energy - Information and

communication technologies

- Industrial systems management

- Microtechnologies and electronics

- Services and the built environment

- Business research

VTT’s operations - Research and

Development - Strategic Research - Business Solutions - Business Development - Group Services

VTT’s companies - VTT Expert Services Ltd

(incl. Labtium Ltd, Enas Ltd)

- VTT Ventures Ltd - VTT International Ltd - VTT Memsfab Ltd

VTT Group in brief 2011

Turnover 278 M€ (2011) • Personnel 2,818 (2011)

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VTT Group on the map

• • • •

•

Tampere

Oulu

Jyväskylä

Helsinki • • Turku Rajamäki

• Raahe • Kajaani

Kuopio •

Finland

Lappeenranta

• Sodankylä

• Rovaniemi

Outokumpu • Espoo •

Shanghai China

Seoul, South Korea

Tokyo Japan

Australia

Brussels, Belgium

St. Petersburg Russia

Germany

Berkeley, USA (VTT/MSI)

Sao Paulo, Brazil

East Coast USA

VTT Research Units

Sales & Marketing Offices

Feasibility studies on the new sites

Singapore

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2. VTT’s Research and Innovation Model

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VTT’s six impact areas addressing grand challenges

critical to clean world, sustainable economy and

good life.

VTT creates technology based innovations,

businesses and services for the economy and society.

Research and innovation vision 2020

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Materials for breakthroughs functional materials and nanotechnology bio-based chemicals and precursors industrial biomaterials wood-fibre value chain

Addressing innovations, business, services and people

Low carbon technologies in energy efficient use of energy renewable energy sources nuclear energy, clean fossil energy energy systems, modelling for changes

Industrial resource efficiency industrial biotechnology - green chemistry clean water waste refinery resource efficient processes

Emancipation of data interacting with the real world gratifying user experience managing design complexity massively scalable services

Enabling electronics and photonics high-performance microsystems printed intelligence sensing solutions

Eco-efficient intelligent built environment connected sustainable districts multimodal intelligent transport integrated design, production and use comfort, health and safety

Technologies for health and wellbeing healthier food solutions drug discovery and diagnostics systems biology ICT for health

Digital world

Sustainable development

VTT’s strategic research portfolio

Agile industrial systems organisation and management of

global manufacturing simulation based engineering eco-efficient machines human and organisational practices

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VTT’s spearhead and innovation programmes in 2012 - Tools for competence and business development

Spearhead programmes Green Solutions for Water and Waste Industrial Biomaterials – Competitive edge from bioeconomy and

renewed forest cluster eEngineering – Digital product process as a success factor for

technology industries Open Smart Spaces - Digital world and ubiquitous computing Innovation programmes Nutritech – Health and Wellbeing through Eating Technologies for Health Fuel Cells Intelligent Energy Grids Energy Efficiency and New Fuels for Transport Intelligent Transport High-performance Microsystems Cognitive Communications Multi-scale Design (2012 - )

Addresses a grand

challenge

Global excellence in

selected areas

Integrated multi-

technological knowledge

and knowhow

Critical mass in personnel,

resources and customers

VTT as a desired

innovation partner

VTT programmes

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VTT’s innovation process Integration of VTT’s and customer’s innovation processes

Research services Business concepts

Technology concepts Solutions

Forums and networks

Research services Products and

services Outsourcing of

R&D

Consulting services Testing

Certification Industrial rights New companies

Concept development

Product and service

development Commercialisation Technology

foresight Industry’s innovation process

VTT’s innovation process

Creation of business

opportunities

Development of products and

services

Commercial services

Market, technology and

business foresight

Offfering

Future opportunities

foresight

Co-operation goals

Technology

foresight

Concept

development

Development of products

and services

Testing and consulting services

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4. Commercialization at VTT

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1) Commercial R&D Services

Co-developing products and services for our customers / partners

2) IPR Licensing

Licensing & sales of IPR

Capturing Value from Research

3) Technology Transfer Services

Implementation of new technologies within customers (Contract service & IPR)

4) New Venture Creation

Spinning out companies to commercialize technology developed within VTT

VTT employs 4 main methods to commercialize technologies Chosen route will depend on

the nature of the technology, the strength of the IPR, customer relationships and team competencies Goal is to capture the maximum

value from the invention

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New Business Development Process

Research Sales & Commercialization

Customer Solutions, VTT Ventures & Expert Services

Strategic Research

Invo

lvem

ent

Idea screening

Market Evaluation & Insights

Business Model Development

IPR to Protect Value Proposition

Proof-of-concepts

Planning for Commercialization

Business Development

Role is to focus on tasks that ‘Bridge the gap’ between research and commercial success

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VTT‘s patent portfolio 2012

Number of patent families: 363 Number of patents and applications: 1250 Portfolio rotation rate (in 12 months): 33 % Patenting costs 2 M€ (investments 1,7 M€,

maintenance costs 0,3 M€)

Annual revenue from licensing approx. €2.5M

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VTT Ventures Ltd

VTT Ventures Ltd is a development company that generates and develops spin-offs based on VTT’s technology.

Through VTT Ventures, entrepreneurs have access to innovative ideas and know-how of more than 300 patent families. This is the bases for the deal-flow that enables us to create growth companies with global potential.

VTT Ventures Ltd spin-off process is a complete business development process that includes business planning, incorporation of the company, funding as well as company ramp-up. Portfolio of 17 high tech companies Total revenue of the companies (FCT2011): 4.5 M€ Personnel employed 2011: approx. 80 Fair value of companies: 17.7 M€. Ventures share

4.2 M€ (book value 3.4 M€) *valuation from 31.8.2011

www.vttventures.fi

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The spin-off process

Discovery and

evaluation Incubation Investment Portfolio

management Exit

YES / NO Return/ Discard

•Cases evaluated using industry networks together with potential EIRs

•EIR is hired •Team is build •A Business Plan is prepared

•An investment proposal is made to Ventures’ board

•The spin-off is actively developed towards growth w/ VC partners

YES / NO Return/ Discard

YES / NO Return/ Discard

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The E-i-R concept

E-i-R Qualifications Domain expertise (“Been there,

done that”) Multitasking Not risk averse (ambitious) Strong professional network Leadership qualities

E-i-R Engagement Responsible for leading an incubation project together with the researchers Responsible for producing a Business plan and an Investor pitch Building a startup founder team After a successful E-i-R project taking the lead as a startup CEO

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Examples of portfolio companies

ICTE – Document and brand authentication and security www.nicanti.com

Bio – Generating biomarkers and targets for commercialization through analytical chemistry www.zorabio.com

IT – Removable media data protection www.envaultcorp.com

Bio – Provides a high-content gene expression analysis platform www.plexpress.fi

Bio – Personalized medicine based on gene expression analysis database www.medisapiens.fi

IT – Network risk management www.vergo.fi

ICTE – Manufactures touch modules based on FTIR technology www.tactotek.com

ICTE – Commercializes a physical activity meter and service concept www.hookietech.com

4. Innovation in Cleantech

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VTT’s expertise for the success of our clients

Green material technology Green bio and chemical processing Emission control technology Clean water technologies Green ICT Green electronics Green energy Green transport Sustainable built environment and

eco-efficient solutions Green industrial systems Green machinery

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Water Efficiency Excellence (SWEET) R & D Program

Growth potential identified around Water Efficiency due to strong synergy between Kemira and VTT. Centre of Water Efficiency Excellence (SWEET)

Opportunity to build a unique position and competence platform for future growth in water efficiency businesses through a major development program

Expectations Program fully enable aggressive growth within

environmental technology area Partnership needed to combine competences

and accelerate time-to-market Create world-class competence in Water

Efficiency Need external funding to succeed

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Printed OLED, Solar cells and Batteries

Thin film solar cells The use of large area roll-

to-roll (R2R) production technologies offers a very cost-efficient way to produce thin film solar cells on flexible substrates.

Printed enzymatic power source Enzymatic fuel cell, runs on glucose

and air (oxygen) Non-toxic components, fully

disposable Suitable for mass production E.g. for intelligent packaging or

printed displays

Energy storage and printed batteries Thin film batteries on flexible

substrates Novel processing concepts based on

different R2R technologies: printing, coating, evaporation etc.

Both organic and inorganic batteries

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Some of us do not see the beauty of this building…

Passive house renovation concept:

Heating and cooling 20 kWh/m2

Total primary energy 120 kWh/m2

…but in respect of renovation it is functional…

…and after renovation majority of us also find it

rather attractive

Figure: Lylykangas TES Energy Facade

Improved Efficiency in Building & Construction

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Green energy

For climate change mitigation deep green house gas emission reduction is needed, which call for efficient use of energy, renewable energy sources and low carbon technologies in society.

VTT focus areas are bio-energy, wind, fuel cells in renewable energy, nuclear energy and clean coal in low carbon technologies.

Efficient use of energy in transport, the built environment and industry.

Technology development is linked to energy systems, modeling, economic assessments, fore sighting and services in all stages of the innovation process from technology and market commercialization.

VTT’s key offering

Bioenergy for heat, power and future biofuels in transportation Wind power Fuel cell and Solar energy Biorefinery, a way to

bioeconomy Energy systems and scenarios

for climate change mitigation Efficient use of energy Low carbon society

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5. Impact & Summary

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Customer impact of VTT’s projects

86% of the respondents to VTT’s customer survey reported that their knowledge base and expertise had improved.

58% had already commercially utilised the results of their VTT project or expect to do so within the next three years – 28% said that it wasn't even their goal.

55% felt that their VTT project utilised creatively different technologies 54% believed that a VTT project had speeded up or otherwise improved

research and development work. 54% thought that a VTT project had promoted networking. 51% confirmed that new products, services or processes were created. 45% said that a VTT project had promoted their marketing. 44% reported that their competitiveness had improved. 40% believed that a VTT project had contributed positively towards the

opening up of new business opportunities. 18% reported that a whole new technology was adopted. 12% said that a new business concept or a new earnings model was

created.

Taloustutkimus Oy, VTT customer survey, 2010

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VTT creates business from technology