istituto italianodi tecnologia3 implementation programme 16 3.1 objectives 16 3.2 activities 16 ......

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Guidelines for Technology Transfer

istitutoitaliano ditecnologia


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Guidelines for Technology Transfer

Index

1 Strategic aims and priority choices of the Institute 31.1 Summary of the strategic plan 31.2 Technical choices of the platforms 51.3 Analysis of potential and foreseeable markets 9

2 Models of Technology Transfer 102.1 Consulting and Feasibilty studies 102.2 Industrial projects 102.3 Laboratories shared with companies 102.4 Spin-offs 112.5 Models of incubators (IIT Solutions) 132.6 Joint ventures with corporates and external SEs 132.7 Development of Instrumentation 132.8 Forecasts of types of technology transfer by platform 14

3 Implementation Programme 163.1 Objectives 163.2 Activities 163.3 Organisational structure 193.4 Decision-making processes 203.5 Benchmarks 21


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1 Strategic aims and priority choices of the Institute

Technology transfer is a strategic objective of the IIT and is an important yardstick of its success. The IIT Technology Transfer strategy, whose general guidelines are included in the development of long term activity plans approved by the Board of Trustees, should be based on the constant refinement of the level of technical excellence and scientific credibility of the institute at the national and international level. This document outlines the strategic guidelines for organisation of Technology Transfer by the IIT and the main types of activity expected in relation to different markets and the different partnerships of interest.

1.1 Summary of the strategic plan

The strategic plan of the IIT is developed in the head office in Genoa and in the 9 centres throughout Italy. It consists of seven “technological platforms” of strategic interest to the country and the international scientific community. Each platform contains a selection of related subjects of considerable practical interest (in the short-medium term) and fundamental (long term) which is being developed synergistically by the research facilities of the IIT. The seven platforms build a long-term visionary path and bring together for the first time the hard sciences and life sciences for the development of human and humanoid technologies ranging from humanoid robotics to “intelligent drug delivery”. The platforms are (Fig.1):

� Robotics � Neuroscience � Drug Discovery Development and Diagnostics � Portable Energy � Environent Health and Safety � Smart Materials � Computation

Fig 1: Scientific Plan

COMPUTING

ENERGY

SMART MATERIALSEHS Environment Health Safety,

ROBOTICS

D4

NEUROSCIENCES

discovery and developmentdiagnostic drug

IntelligentDrugDelivery

Robots

Portableenergysources

Self poweredRobots

New materials,New devices,and sensors

Compliant Soft-Bodied Robots

BrainMachineCommunication, prostheses

Safety ofNew Materials

Safety atnanoscale

Integrated MultiscaleComputational Technologies

Behavior,Diseases

New probes andbiosensorsArtifical Tissue

New Therapies

New DrugsNew Diagnostics

CognitionHuman

machineInteraction

Plastic Solar CellsNew Fuel CellsStorageEnergy Scavenging


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The overlaps in Fig.1 between the platforms show the spaces of inter-disciplinary nature on which the technological convergences of the IIT are developed, for instance: new sensors developed by the smart materials platform are adopted to strengthen the cognitive capacity of a robot while the robot itself is used for the motor rehabilitation of humans. Synthetic nano-structures developed for composite materials are used as carriers to transport and release new drugs. Constant and synergistic development of the platforms generates a scientific circuit in which “hard” and “wet technologies” concur on the development of an integrated project that has technologies for mankind as final target.

World-class scientific expertise and state of the art equipment contribute to the development of a wide-ranging, multidisciplinary scientific programme, strengthening the competitiveness of the national technological system through collaboration with national public and private organisations. Table 1 shows the role of the various research facilities on the seven platforms in the strategic plan:

Research Unit Robotics Neuro D4 EHS Smart Materials Energy Computation

ADVR n

RBCS n n n n

TERA n n

NBT n n n n

D3 n n

NACH n n n n n

NAFA n n n n n n

NAPH n n n n n n

CSHR@PoliTO n n n

CNST@PoliMI n n

CGS@SEMM n n n

CNCS@UniTn n n

CNI@NEST n n n n

CMBR@SSSA n n

CABHC@CRIB n n n n

CBN@UniLe n n n n n

Tab.1 Representation of the nodes and activities with crosses

ROBOTICS

NANO TOXICITY

technological convergence

Towards life

scie

nces

Towards hard technologies

SMARTMATERIALS

PORTABLEENERGY

NEUROSCIENCE

PHARMACOLOGY


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1.2 Technical choices of the Platforms

ROBOTICSRobotics is a highly diversified field of research focused on all aspects of engineering (especially electrical and mechanical) and computer science, but strongly influenced by developments in areas such as neuroscience, physiology, psychology, mathematics, physics, chemistry and life sciences. This highly diverse nature of research is one of the great opportunities of robotics, and it is at the level of these different interfaces that many of the major developments in humanoid theory (human and machine) are being evaluated. The “robotics” technology platform is being developed by three departments at the Central Laboratory of Genoa, called RBCS - Robotics, Brain and Cognitive Sciences, ADVR – Advanced Robotics, TERA – Telerobotics and Applications, and by the Centre for Space Human Robotics at the Polytechnic of Turin and the Centre for MicroBioRobotics at the Scuola Superiore S. Anna in Pisa.

IIT is currently making a great effort to implement a comprehensive programme on “human” systems based on three main areas of research:1. humanoid robotics, with an emphasis on cognition;2. studies of human behaviour with particular attention to perception and action;3. man-machine communication and interaction with a strong emphasis on technological and scientific

progress of the two-way interface aimed at the nervous system;

These lines of research are pursued with these goals:• broadening knowledge and technologies in the field of artificial systems creating autonomous

humanoid robots capable of learning from experience and of interacting naturally with humans;• investigating how to merge robotic technology with biological systems to improve the quality of life,

particularly for vulnerable members of our society;• the design of robotic systems that have potential applications in various fields, including rehabilitation

of neurological patients and the training of operators in advanced human-machine systems and in tricky environments such as space;

• studying of soft, functional, anisotropic materials, imitating our skin, tendons and bones, but also the development of self-healing and evolutive materials. By equipping these materials with suitable biocompatible properties, efficient and functional interfaces may be created between biological and artificial devices, allowing the development of innovative prosthetic devices.

Another issue of the robotics platform is the study of drive and power/energy systems. This activity is aimed at developing and using new actuators and technologies for revisited traditional drivers to optimise energy efficiency. In particular, the current strategy is aimed at achieving:• “compliant” robotic actuators, that is developed to ensure human safety in their interaction with

robots;• weight/power performance to improve the ability of robots to operate in non-conventional

development of new, pneumatic and hydraulic technologies;• In addition, the robotics platform hosts a series of transverse lines of research, such as biomimetic

systems, sensor technology, medical robotics, and haptic systems of interaction and telepresence.

Finally, a branch of the robotics platform is designed to provide short-term technological solutions to the growing demand for automation and robotics in the world. The objectives of the IIT in this direction concern the development of a universal platform for open source robotics, on which the market can develop the most diverse applications, from operation in hostile environments to help for humans.


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NEUROSCIENCESThe brain is still considered the best computational device. It has amazing features, including a complex hierarchical organisation with synergistic properties, integration of input, a parallel computing, structural and functional adaptation (plasticity). Skills that the brain performs effortlessly and flexibly, such as object identification, fine motor control, learning and adaptation to new environments, are extremely difficult to implement in artificial systems. The Neurosciences Centres at the IIT are dedicated to investigating brain function at all levels - from molecules, synapses and neurons at the large-scale and multi-area neural circuits in the intact brain. The transversality of neuroscience is also the key to the understanding and treatment of neurological and psychiatric disorders such as Parkinson’s and Alzheimer’s diseases, epilepsy, schizophrenia, autism, depression and addiction. Disorders of brain function originate from disorders in individual molecules, synapses and neurons, but are manifested in abnormalities of large-scale neural network dynamics. In addition, a comprehensive understanding of brain function is essential for the development of brain-machine interfaces, such as neural prostheses for the treatment of paralysis and sensory deficits, both for bio-hybrid, biomimetic systems to allow two-way communication between neural tissue and robotic devices.

The IIT has a department dedicated to the study of neuroscience: NBT - Neuoscience and Brain Technology in the Central Laboratory in Genoa, NCS - Centre for Neuroscience and Cognitive Systems at the University of Trento, and BCMSC - Brain Centre for Motor and Social Cognition at the University of Parma.

The objective of the research in NBT is the understanding of the molecular mechanisms of neuro-transmission and synaptic plasticity, from individual synapses to synaptic circuits to brain disorders and to interface the brain with electronic devices. One of the main aims of the NBT is to understand the pathogenesis of brain diseases such as epilepsy, schizophrenia, autism, addiction, and neuro-degenerative diseases such as Parkinson’s and Alzheimer’s.

The focus of the NCS is on the large-scale neural circuits in the brain and how neural circuits mediate behaviour. The activity of BCMSC aims to examine the mechanisms underlying the comprehension of the actions, intentions and emotions of human beings. NBT projects are mainly carried out in vitro and animal models of small size, while the studies of BCMSC and NCS are focused on the function in the brain in vivo, and will include experiments on human subjects and non-human primates. One of the main objectives of the NCS is to develop new molecular probes to monitor brain activity with possible applications in diagnosis and treatment. For example in the case of epileptic patients in the pre-operative phase, the development of technologies for massive parallel monitoring of neuronal activity may advantageously facilitate a more effective and less invasive long-term monitoring of brain function. The IIT’s research in neuroscience is also aimed at the design, implementation and testing of new neuro-electronic interfaces based on micro-nano-manufacturing technologies and integrated CMOS systems such as devices with high-resolution micro-electrodes for the recording and stimulation of individual neurons.

DRUG DISCOVERY, DEVELOPMENT AND DIAGNOSTICS – D4D4 is the IIT platform that combines the structure of the department of Drug Discovery and Development (D3) with the considerable know-how of new tools for medical and biological Diagnostics (hence the fourth D of the D4 platform) developed by the bio-nanotech facility of the IIT. The basic concept is to combine the mission of the D3 department, discover innovative medicines for human diseases, with specific technologies related to bio-chips for genomics and proteomics and technologies based on nano-particles for intelligent drug delivery and marking in optical and magnetic diagnostics, both in vivo and in vitro.

D3 focuses its research on two areas with major, unresolved medical problems: neuro-degenerative diseases such as Alzheimer’s disease, and pain and inflammatory diseases.


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Specific research activities of D3 include:a) Development of new analgesic and anti-inflammatory drugs based on the enhancement of endogenous protective mechanisms;b) Discovery of new molecules with therapeutic potential based on innovative multi-target strategies;c) Creation of advanced computational tools for the rational design of new drugs.

The activities of Diagnostics include all the new technological solutions developed by the nano-biotech laboratories of the IIT network. These include:

� Multifunctional nano-carriers for biomedical applications, especially for a multi-purpose approach to cancer therapy such as the new magnetic-fluorescent beads for detection and counting of cells;

� new coatings with polymers to direct drugs through nano-magnets; � solid-state chips and on-chip lab devices for genomics, proteomics and cellomics; � new fluorophores for optical imaging with high resolution; � nano-medical tools for smart diagnosis and treatment such as independent nano-devices capable of early recognition of the origin of a pathology at the intracellular level;

� new technologies for the detection of individual events at the cellular level, derived from structural changes associated with phenomena of toxicity or cell-cell interaction or cell-matrix.

The combination of these technologies places the entire D4 platform at the forefront of research in this field.

SAFETY AND HEALTHNanotechnology has become an opportunity for large companies, spin-offs and start-ups to develop new products in many cases to replace conventional materials and devices. Nanotechnology therefore has become transversal to nearly all industrial sectors from chemicals to semiconductors, from pharmaceuticals to automobiles. However, the production processes and products of nanotechnology have potential biological hazards still not well quantified. Just consider that the synthetic nano-components are small enough not to be detected and filtered by the immune system of higher animals. The massive increase in the production of these nano-components for the production of various products (toothpaste, cosmetics, automotive materials, dyes, clothing, packaging etc.) is a recent phenomenon that is completely unnatural and unexpected. This massive increase in production of nano-particulates is accompanied by a phenomenal increase in their uncontrolled dispersion in the environment, with subsequent absorption by ingestion, breathing and skin contact by humans. Accordingly, a need arises for a multidisciplinary effort aimed at assessing the characteristics of bio-safety and environmental impact of nano-materials and their production processes. The safe use of nano-structured materials has to deal with the limited knowledge of the mechanisms of biological recognition that occur at the interface between nano-materials and cells and all possible features of cytotoxicity of various compounds. In this context, the IIT is in a unique position in the implementation of a certification protocol for nano-safety standards for nanotechnology products. It includes an assessment at many levels:• metrological (shape, size and chemical composition of the particulate);• biochemical and kinetic (uptake of nano-particles depending on the type of contact with man and its

consequences);• toxicological;• proteomics and genomics;• regulatory aspectsIt is expected that over the next 5 years this research will contribute to:• develop the market for quality nano production in Italy;• prevent mistakes by users of nano-products;• set the standard for the methodology, quality and risk assessment.


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SMART MATERIALSTechnological development is also about the creation of “Smart Materials”, or new materials with novel properties, manufactured from known materials. The combination of different materials with known properties leads to new materials that can preserve the properties of individual components, with additional features. These composite materials can be of interest to different areas such as transport, medical and bioengineering instrumentation, civil engineering, mechanical equipment, fashion and sports. The main starting materials for these applications are plastic materials and nano-structures such as thermoplastic and thermosetting resins, electrically conductive polymers, polymer fibres and biodegradable or biocompatible plastics. These classes of plastic materials are a common starting point for innovative composite materials that include within them a wide range of nano-fillers. The composite materials thus obtained have unique properties compared to materials taken singly: they preserve the ease of processing and production of plastics as well as its light weight, improving the mechanical properties surprisingly.

The integrated strategy of the IIT, at the basis of an initial advantage in the scientific panorama, is based on the unique combination of nano-chemistry and materials science.The growth of nano-crystals and nano-structures of complex shapes (dots, wires, branched nano-structures) and nano-composites (e.g. bi-magnetic nano-particles, fluorescent-magnetic nano-particles, core/shell nano-particles, inorganic nano-bars) is achieved with different, cutting edge methods allowing the “Smart Materials” platform to address a wide range of problems relative to materials science from robotics to aerospace.

The main lines of research are:• composites of polymers with nano-particles and fibres (composites of nano-particles and composites

of nano-fibres), composites of polymers with responsive fillers (responsive composites);• composites of polymers with biological molecules (Bio-composites);• self-assembly of colloidal nano-crystals for new smart coatings and surfaces, new materials for

advanced detection devices.

ENERGYThe objective of this platform is to address the growing demand for portable, alternative energy sources in very important industrial areas such as automation, robotics, portable electronics and the automotive industry. The IIT develops technology aimed at maximum miniaturisation and reduction of the ratio between cost of the device and power output.

The strategy focuses on three types of systems:1. plastic solar cells 2. solid state harvester systems3. batteries and high-capacity storage

The plastic photovoltaics aims to develop flexible cells, with an efficiency of 10% and a cost of the order of 10-20 cents/W. These cells have an enormous potential market connected with portable and consumer electronics and architectural-compatible solutions. There are currently under development at the IIT polymer cells, electrolytic plastic cells and nano-structured hybrid cells all with the requirements that fall in the range of performance mentioned above.

The harvester systems are miniaturised converters of motion into energy that the IIT develops on the basis of a new class of high-performance piezoelectric materials (III-V AlN compounds). These can be integrated into handling systems (clocks, robots, cars, etc.) or made of very dense arrays to produce large amounts of energy compared to the total volume of the device.

Finally, the IIT is devoting much attention to the development of technologies for lithium-ion batteries (or equivalent technology based on hydrides or other new materials) in collaboration with companies in the automotive sector. This activity sees the IIT committed mainly to the development of materials, contacts and chemical processes.


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INTEGRATED MULTISCALE COMPUTATIONAL TECHNOLOGIESThe computational platform is designed to develop a new computing infrastructure for advanced modelling of systems of interest to the Drug Discovery Development and Diagnostics (D4), Safety and Health, Smart Materials and Energy platforms.

Research activities in these fields need tools and models for nano-scale quantitative description, the control of the structure and dynamics of such systems.

Innovative computational methods will address these areas through a unified approach, allowing the rational design of new drugs and molecular machines for nano-medicine, devices for opto-electronics, and biophysics and new smart materials. Research in these areas offers promising scenarios thanks to the constant increase in computing power available and the development of new theoretical methods and optimised algorithms.

1.3 Analysis of potential and foreseeable markets

Food Pharm Hospitals BiotecDiagnostics

Road/AirTransport

ManufactureMaterials

Electronics/ICT

Military

Robotics n n n n n

Neuro n n n n n

D4 n n n n

Energy n n n n

Smart Mat n n n n n n

EHS n n n n n n

Comput n n n n n n n


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2 Models of Technology Transfer

The opportunities for TT of the Institute, similarly to what happens in other research institutions of worldwide importance, can be summarised as follows:

2.1 Consulting and feasibility studiesThis is a type of TT generally based on small scale projects: consulting services and feasibility studies for SMEs and enterprises. The type of project is annual, targeted to the study of problems of technological and/or manufacturing, with rather small innovative content in view of resolving problems with short-term effects. Usually it does not have strong implications for intellectual property (IP) rights and low cost. It requires concentration of resources in the short term (staff is especially distracted from the activities of institutional research on which it is assessed) and is dispersed over many different and extensive issues. An institute like the IIT is already the subject of numerous and frequent requests, potentially in conflict with the indications of the Council to make a threshold for small projects. Just because in Italy there are few companies that invest more than a few percent of annual turnover in R&D and about 70% of them are SMEs, it is reasonable to assume that most of these requests could fall below the minimum threshold of acceptability of the Institute.

For this type of activity, the Foundation has substantially to verify the technical and scientific interest and the opportunity to support a project of a small size within the framework of the overall strategies, properly filtering the requests coming from the world of production.

2.2 Industrial ProjectsThese are agreements of joint research between the research institution and a company aimed at developing prototypes/technology or knowledge of primary interest to the company. The basic requirements of these programmes are the duration of the order of two or three years and the risk margin higher than the previous type of short projects. In general the activity is too long to merit the term domestic investment by the company but sufficiently innovative to be developed by the body. They generally grow with the times and methods dictated by business needs, which are more stringent than a typical programme of basic research. The issues relating to intellectual property are negotiated from time to time, although often adopt criteria for ownership of patents under exclusive license to use the company for its core business applications. Agreements of intellectual property not shared in relation to the resources invested by the parties and the weight of prior knowledge made available for programme development are also acceptable.

For this type of activity, and compatibility with the strategic plan, the Foundation must ensure the sustainability of the project in terms of resources invested in relation to those acquired.

Projects of this kind, besides bringing prestige, however, require a degree of flexibility that is in the DNA of the IIT.

2.3 Laboratories shared with companiesThis is an action of long-term partnerships with larger companies that can invest resources and personnel in R&D. Researchers from the IIT and those working in the same environment, with common targets and agreed road maps. These activities require adequate logistics solutions, large laboratories and a very advanced I.P. management. In general, the programmes to be developed must be sufficiently long-term to be of interest to the research institute and highly target-oriented to be of interest to the company. The mixed team creates interdisciplinary professionals in great demand, and if well managed, it gives excellent results both of the research, which can finalize its work on real projects in technology, both the


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company can develop processes, products and ideas otherwise not developed internally. The possibility of establishing joint labs are also maximised by offering expertise and infrastructure issues across multiple platforms, and network structure on multiple sites, as proposed in the Strategic Plan 2009-2011. A typical I.P. management scheme envisages joint ownership of patents, exclusive license for the industry in areas related to its core business, and the opportunity for the institute to exploit the inventions in applications other than the core business of the partner company (possibly reserving it the right of first option.).

For this type of activity, the Foundation has substantially to verify the sustainability of the project in terms of resources invested to those acquired, its compatibility with the strategic plan and with logistics.

2.4 Spin-offs and exploitation of the internal I.P.This is the best known type of TT and so also the most debated. From the institutional point of view, the spin-off of a body of research is almost never an operation oriented to the profit of the institution that forms it, but an operation of building value and the effects of socio-economic research products. In this case spin-offs do not produce profits that come in addition to the budget of the research, if not in due proportion to the institution itself if it decides to participate as a partner in the corporate structure of the spin off, or in the form of royalties from licensing. The growth of many spin off initiatives is to be considered as an indicator of very positive impact for a research institute, as it creates quality jobs and economic growth based on the products of research (the so-called value chain of research). In this context it should be noted that the concept of spin-off is generic and changes greatly according to the disciplines and specific applications (also related to more or less relevant issues of intellectual property). Sectors with low infrastructure costs, such as software, have reduced start-up costs and the possibility of higher revenues. Hardware-based initiatives require substantial initial investment, which move the break-even point much further ahead and increase the risk with the same competition.

A particular case is pharmaceutical research, noted for its significant initial investment (ranging from $ 0.5 million seed financing to up to $ 25 million of series A financing), the high risk (10% success rate) and high return on investment in case of success (10-100x). It is essential that for every spin-off idea the potential and its categorisation are qualified as soon as possible. This allows you to define the investment plan and the arrangements for the transfer of intellectual property, which play a crucial role and vary by industry and the centrality of the I.P. in the company set up.

From the perspective of the IIT, it is reasonable to assume that there are many ideas that potentially can be developed, some of which are very likely to succeed and bring revenues (typically enterprise value of the order of 20x compared to the initial investment after a few years and as such can be a candidate for P.I.O. and for sale to established Italian and foreign companies), to which must be added many ideas for spin-offs that could lead to a relatively modest increase in value (2x-3x after a few years) but still sufficient to create jobs and allied industry outside the walls of the institute, provided that the wager on the pharmaceuticals remains an important priority of the D3 department. The list of ideas largely protected by patents is constantly growing, both quantitatively and from the point of view of maturation of the prototypes (see section 4.4.).

The main problems of high-tech spin-offs concern the start-up phase, which almost always needs seed funds in the first two to three years in order to maximise the spin-offs and to obtain external funding and evaluations by higher potential investors. The role of the IIT in this area is very clear: the Institute can provide initial support to spin-offs in terms of infrastructure and equipment necessary for the development of the idea/product that otherwise would require an unsustainable initial investment, participating in the company structure of the spin-off as a founding member.


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This is a multi-step process in which the Foundation must have a role of supervision and control over: � Identification of ideas that can lead to spin-off by management. � Qualification of the ideas from the management, assisted by a small group of experts in the VC field, to extract ideas from a selected set of results, patents, and initiatives that could lead to external financing or the exploitation of IP by sale to established companies.

� Determination of the involvement of the IIT (funding, participation on the board of directors, industrial relations, transfer of IP) and selection of management that will cover the spin-off. The people involved will be both internal and external. At this stage it is essential to accurately determine the boundaries between the IIT and the spin-off and regulate possible conflicts of interest.

� Determination of exit strategies and their timing in collaboration with external financers.

The management of relationships with researchers who become entrepreneurs and in particular, the management of conflicts of interest is a delicate point and must be regulated appropriately. These rules vary greatly depending on the institution (universities, public research centres, private research centres, industry).

� For universities in the USA, the rules envisage a sharing of revenues from patents by the researcher with the University ( among the most generous, Berkeley is at 50%), the possibility of granting an “industrial leave of absence” for two years that is renewable at the discretion of the department and the governing bodies of the University, the opportunity to work with the company in days of consulting (in the U.S.A, on average one day per week), the possibility of sharing in the ownership of the spin-off company independently of the patents granted in use or transferred permanently.The most frequent cases in which conflicts of interest originate arise when a company, in which the scientist has an equity interest or from which he receives fees in excess of a certain amount (typically $ 5,000 per year) is also financing research in universities, or even if research results are transferred in a privileged way. In any case, conflicts of interest are regulated by a special internal committee.

Virtuous behaviour by the researcher, if it remains so, is highlighted by the evaluation mechanism of his work. If the researcher has his scientific production reduced due to his participation in the company, his promotion and advancement in his career are greatly affected.

In no case is the I.P. developed by the enterprise in the course of its business transferred to the University.

� In the IIT, in view of its institutional mission and similarly to what happens in the best international research institutions taken as reference, the researcher must be enhanced and encouraged in his efforts to transfer technology, consistent with the role and commitment that the Institute has and with the scientific findings on which it is assessed. There will be a transition period in which the researcher after having produced an idea of spin-off (the result of his research) will have to work alongside other partners and investors to make the idea transferable into a product. In this phase, the researcher will continue to operate as an IIT researcher, keeping his commitments, and at the same time will be an entrepreneur of himself. There is no conflict of interest in this temporary situation, as the researcher in scientific work, is in any case monitored by the Director of his structure. Also, while operating partially as an entrepreneur of himself, the researcher works in a facility where the IIT is a founding partner, with a clear sharing of interests and objectives. The researcher will also be a partner in the spin-off and therefore he will have a direct participation and share responsibility.

At the end of the transition period (typically 3 years), if the spin-off is successful, both the role of the researcher and the participation of the IIT in the company society will be discussed again and agreed.

The case in which the spin-off sees the director of a scientific structure (e.g. Department head) directly involved is different. In this situation it is necessary to ensure that in the interests of the IIT the structure is not distracted from its institutional aim (carrying out research according to the lines of the strategic plan) and is not entirely used as the base for the research and development activities of the spin-off.


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One is obviously dealing with particular cases that are to be individually assessed and monitored, usually with the help of special technical commissions of control.

For this type of activity, the Foundation must essentially check: (i) its compatibility with the strategic plan, (ii) the sustainability of the project in terms of resources invested compared with resources acquired, (iii) the type of corporate and strategic implications related to creation of a spin-off, its governance and its corporate structure, (iv) the financing plan and its implications for the future of the IIT, (v) relations with the scientific staff and possible conflicts of interest.

2.5 Models of incubators This model is designed to bring together in one “catalogue” of “custom tailored” products all the technological breakthroughs of the IIT that individually do not justify a spin-off, or that can lead to a small spin-off (of the spin-off 2x type mentioned before). The establishment of a company seeded from the IIT with a start-up investment fund (obtained possibly with the involvement of business angels, banks, and savings fund management) could accelerate the micro-processes of technology transfer that the institute often has the chance to deal with. These would be components, inventions or devices to be produced with advanced technology owned by the IIT, in small numbers and with a specific design, taking on the features of occasional orders with no prospect of a continuous market, or of custom tailored technology, always varied over time. This is the case of about 50 rotation sensors for mechanical joints or of the many iCub robots already ordered by several laboratories all over the world.

An important example is that of Siena Nanotech, (SinT) a spin-off of the SNS (Scuola Normale Superiore) with shareholding by the Monte dei Paschi di Siena Foundation. The Foundation participates in the initiative with its capital while the SNS gives the company (a joint stock company) patents and projects. A structure of this type could then operate as a branch of the IIT on the market, and could also meet the needs of SMEs (see point 1) by simplifying the tasks of the research institute.

For this type of activity, the Foundation must essentially build an innovative governance model designed for the specific domain of application.

2.6 Joint Ventures with corporates and external I.P.These are spin-offs where the IIT is not the scientific or technical driver or they are investments in initiatives in which the IIT is a member of a team with other public and private institutions (this is the case of the R&I Foundation recently established). In these initiatives the IIT may reasonably participate as a partner with highly relevant expertise in various fields as well as being a governmental research organisation.

As in the case of spin-offs previously analysed, for this type of activity, the Foundation must essentially check: (i) its compatibility with the strategic plan, (ii) the sustainability of the project in terms of resources invested compared with resources acquired, (iii) the implications of corporate and strategic type related to the establishment of a start-up, its governance and its corporate structure, (iv) the financing plan and its implications for the future of the IIT, (v) relationships with the scientific staff and potential conflicts of interest.

2.7 Development of instrumentation This is a common process of transferring technologies that are developed to prototype level in laboratories for internal use, and which can then be transferred to commercial instruments for their upgrading (for example in areas such as metrology, detection, sensors, motors). Usually the companies interested in upgrading their equipment install high-end equipment in the IIT free of charge on which researchers adapt and develop dedicated technology solutions. Thus the IIT acquires expensive equipment for free and businesses can put equipment into their catalogues quickly which are updated with the latest technology (with an excellent advertising effect for the IIT). This is the case of Leica and Nikon which have installed equipment at the spectroscopy facility of the IIT for the implementation of the prototype


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STED detector of the IIT in their commercial equipment. In other cases it is the IIT that installs its robots for rehabilitation in hospitals, with strong potential for clinical development.

In general this type of activity is very decisive for the institute, it is consistent with the activities of the strategic plan and easily sustainable within the approved scientific programming and it does not require very complex planning.

2.8 Forecasts of types of technology transfer by platformThe following graphical representations show examples of the forecasts of models of technology transfer expectations for the results of the different platforms. The internal sector has a low probability, while the external sector is highly likely.


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3 Implementation Programme

3.1 Objectives

The objectives of the IIT Technology Transfer Office (TTO) at full capacity are: � Creation and Best exploitation of the intellectual property of the IIT; � Support for the scientific and technical component in the transfer of technology; � Fund raising; � Technology scouting and building a network of companies and international investors; � Constitution of laboratories jointly held by public and private partnerships; � Creating spin-offs and joint ventures with external bodies.

Achieving these goals requires time and capacity to adapt to the changing technological and market scenarios. We expect to complete the establishment of the TTO in the first half of 2011, devising at the same time the necessary policies and guidelines in order to carry out the activities.

3.2 ActivitiesThe macro-areas of activities carried on by the TTO of an international research institute are essentially of two types:a) intellectual property and know-how;b) relations with the market and investors;

and are regulated by guidelines (policy) specifications. To the activities (a) and (b) are to obviously be added the management of contracts normal to the activities of TT.

In the first case (a) the TTO takes care of the evaluation chain of the idea to be patented, patent drafting, filing of the patent and its subsequent protection in the light of market scenarios and the possible end user. At this stage synergy is essential with the scientific structure that generated the idea, and with outside experts (specialised law offices). The most important elements of this activity in the TTO are:

� I.P.R. (Intellectual Property Rights): monitor and evaluate the industrial applicability of new technologies; examine the patentability of inventions; protect technology; perform the technical and strategic management of the patent portfolio; cooperate with other bodies for the joint use of patents; ensure the ongoing relationship with the patent attorney.

� Licensing: commercial contract management and negotiation of license agreements (sponsored research, licenses, grants for industrial research);

The portfolio of patents and know-how that flows from it, becomes the heritage of the Institute which the TTO must develop and manage appropriately to maximize the chances of transfer of proprietary technologies and know-how in the various forms described in Section 2. This activity falls under the category (b) mentioned above, and is based in turn on further different activities, including:

� Identificazione del “target market” of the businesses that could become partners of the IIT through the establishment of a systematic plan of action toward the “target” companies and the detailed definition and thorough realisation of the arrangements better suited to the areas of Technology Transfer and target companies;

� Establishment of an international network of companies and investors with a widespread dissemination of its technology portfolio (scouting activities);

� Fund Raising at national and international level; � Communication and Training: seminars, courses on IPR, technology transfer, spin-offs and innovation management, technology promotion through the press, the web, exhibitions, workshops and open days;


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Spin-Off Strategy: management of programmes of spin-off by the IIT, evaluation of proposals for a new company, the definition and preparation of business plans, production of technological benchmarks and market research both nationally and internationally.

The implementation plan of the TTO therefore envisages some priority activities, both regular or ongoing, that will have to begin as soon as this document is approved:

POLICY The definition of policy relative to:

� Intellectual property; � Spin-offs; � Criteria of financial, logistical and scientific sustainability of TT initiatives; � Criteria of contracting relationships with companies; � Guidelines on the role of researchers in the TT initiatives to private bodies and spin-offs.

are the prerequisite for the initiation of technology transfer activities. Policies on Intellectual Property and spin-offs (section 4.1 and 4.2) introduce rules on the exploitation of intellectual property, the allocation of revenues from licenses and industrial contracts, and on support to the creation of new spin-offs. Since technology transfer is not a process that can really be codified since it is actually made up of very different activities that require the flexibility of research and the incisiveness of the entrepreneurial action, for these policies it was decided to propose an essential approach. These are organised according to a limited number of strict principles, to create a clear and solid framework in which it is possible to operate with great flexibility.

Other policies will be produced in the first months of operation of the TTO.

TRAINING The scientific community of the IIT requires basic knowledge of intellectual property issues, technology transfer and business creation. This implies a greater awareness of business opportunities from research, a stimulus to technology transfer activities and greater responsibility in the handling of confidential information.

Basic courses will be set up along with specialised courses tailored to the needs of the different scientific disciplines covered by the IIT already within doctoral programmes. Furthermore, as happens in the purely scientific field we will introduce an annual programme of seminars conducted by experts in various fields related to technology transfer (economists, consultants in IPR, public and private investors, entrepreneurs, Italian and foreign spin-offs, major patent offices such as the UK, the USA and the EU, successful business incubators and accelerators). An example of the topics to be treated in a course on intellectual property is discussed in section 4.3.

TECHNOLOGICAL SCOUTING This activity aims to make technological solutions emerge from the research of the ITT of potential interest to industry. This can be done in two ways:

1. continuously by the work of the group of technology transfer through the network of relations within the Institute;

2. periodically in collaboration with partner companies, selected for production capacity, flexibility, responsiveness, susceptibility to innovate. In this case, scouting aims to provide a technical and economic study of the technologies identified and to develop some in a specific market application.


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The implementation scheme includes:

1. Identification, together with one or more enterprises of the sector, of technologies on which to elaborate a development plan;

2. Developing a plan of technical and economic development for each of these technologies;

3. Identification of the possible applications, of the relevant market, of the technical development necessary to reach the market, the possibility of obtaining patents, the existence of property rights of third parties, the financial commitment, possible sources of funding, the most appropriate funding instruments;

4. Selection of the most promising development plans and their implementation.

Depending on the results of these analyses, we will choose to use the technology, for example, for internal purposes at the IIT, or go even further, either to license it, assign it to a spin-off company, or distribute and sell it on the market in collaboration with the business partners in the process.

Note that each of the phases described above has a value in itself, or adds relevant information, at any stage you stop the process. For example, the output of step (2) is very useful information even if the process does not reach the next stage, the output of step (3) provides technology development plans based on analysis of business and investment opportunities, the output of point (4) can generate profits or otherwise establish the relationship between the IIT, businesses and investors. Moreover, the method is fully replicated in all technical and scientific areas, it is sufficient just to involve companies operating in the relevant technology sectors.

RELATIONS WITH COMPANIES AND INVESTORSBy virtue of its nature the IIT has a great opportunity to establish a network of companies and investors so that the Foundation becomes an attractive place for all who invest in innovation and for technology developers. To this end, the figure of reference must be the coordinator of the TTO who, together with the scientific director, will have the task of connecting the IIT and businesses, both from a technical and managerial point of view.

COMMUNICATIONCapillary communication of the IIT’s technological and patent offer will be adopted. As per international standard, this type of communication to companies and investors is of promotional type: simple, regular, mildly technical (at first instance) and possibly with an emotional component.

Among other initiatives, it is expected that the IIT will participate at the most important trade fairs in the sector at least in Europe. The presence of IIT will be planned and organised with the involvement of the scientific component, to attend the most relevant technological events to increase visibility, the ability to dialogue with businesses and knowledge of the demand of our ‘market’.

We will organize an international day of presentation of the IIT portfolio of ideas and patents to investors and high-tech companies.

TERRITORIAL OBSERVATORIES (IMPACT ON REGIONS)The IIT has the possibility of positive impact on the local economic system and not just on the national or international level. The impact of a research centre on the local economy indicates that this works effectively as a centre of gravity to the dynamics of innovation, helping to create an environment conducive to the sprouting of new businesses, creating jobs and employing highly professional profiles in local firms, working with the business environment. The process of fertilisation of the local area typically triggers an amplification effect of new business opportunities and investments in innovation.


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Since the IIT is made up of a network structure throughout the Italian territory, it is possible to operate on a very diversified business structure, increasing opportunities to impact the local economy. This implies of course a benefit on a national scale, through a “bottom up” process, which will be an added advantage to the IIT activities (“top down”) at a wider national and international level.

Among the fertilising actions for the country one can point out in a priority way the creation of joint industrial research laboratories dedicated to the development of public-private technology solutions of interest to specific productive sectors defined by the Regional districts, by the POR and the PON.

3.3 Organisational Structure

The Technology Transfer structure of the IIT shall be composed of staff with appropriate skills to cover the areas of activities under the Institute’s strategic plan. The part of I.P.R. requires expertise in at least three areas: mechanics and electronics, physics and chemistry, biotechnology and pharmacology. The part of fund raising, communications/networking and spin- off, instead requires backgrounds that are managerial, financial, and legal and who should work synergistically with the technical component.

When fully operational the facility will have a TT set-up as described below:

� Coordinator (TT manager); � 2 I.P. experts; � 2 VC experts for scouting with and in businesses (one in the wetware area and the other in hardware); � 1 legal expert in I.P.; � 1 administrative/financial expert; � 1 expert in communication and networking with a technical background

The coordinator of the TTO is responsible for organising, controlling and monitoring the activities of TT for the Institute, the coordination of a balanced policy of licensing and/or joint ventures with third parties, verification of the relevance of the TT activities to the strategic plan of the institute, of their sustainability in scientific, logistic and planning terms, and for compliance of all activities with the policies. The TTO coordinator reports directly to the Scientific Director.

The I.P. experts should deal with patent investigations, and protect and enhance the intellectual property of the IIT.

The VC experts must look after the activities of internal and external scouting and networking with financers and businesses and fund raising.

The other offices support all the activities and the scientific staff of the IIT, in order to make the processes rapid and clear to internal users and external partners.

This organisational structure is indicative and will be subject to constant review and timely scrutiny by the Executive Committee when in progress.


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3.4 Decision-making processes

The TTO will arrange all the technical investigative, scientific, managerial, financial and administrative work necessary for the approval and licensing of technology transfer initiatives. The verification of sustainability requirements obviously varies with the type of initiative of TT (see the seven cases of Section 2) and the temporal and financial dimension. The proposal drafted by the TTO then undergoes an approval process that reflects the level of complexity and the Foundation’s involvement in the initiative.Criteria and essential guidelines are stated in the document Guidelines for the Financial and Organizational Management of Investments for Technology Transfer.

The Scientific Director may authorise those proposals that only have scientific and technical implications and do not foresee a significative utilization of human resources or investments (e.g. feasibility studies, development of instrumentation).

Initiatives that would require a significative involvement in terms of IIT staff, investments or logistical facilities, must be approved by the Executive Committee. (e.g. spin-off; incubators; joint labs or joint venture projects with external I.P.).

The strategic guidelines, included in the Foundation’s long term development plans, pertain to the Board of Trustees.


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3.5 Benchmark

In recent years the number of spin-offs seeded from public research has risen continuously despite remaining a marginal phenomenon from an economic standpoint. From 2000 to 2008 about 700 spin-offs of research initiatives were launched in Italy, most of which involved partner universities, public funding (regional, university funds, government grants) and investments by private entrepreneurs and only marginally venture capital and seed funds.The sectors of domestic firms are represented in Figure 3, from which one can deduce the centrality and the strategic nature of the technological choices of the IIT compared to the national scene (and internationally as we shall see below).

Figure 3. Sectors of activity of spin-off enterprises. Spin-offs active on 31 December 2008 (no.=698) and enterprises set up during the three-year period 2006-2008 (no.=300); source: Balderi, Piccaluga (2009)


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From an analysis of the opportunities and possibilities offered by the national and international market, which is necessary to envisage what might be a reasonable expectation of success of technology transfer by the IIT, the following emerges:

� According to international assessments, as regards innovation Italy has a setback compared to other nations otherwise comparable (Fig. 4)

One reason for this situation is the lack of a significant number of large industries in High Tech (such as: Aerospace & Defence, Electronic Equipment, Fixed Line Telecom, Health Care Equipment, Media, Mobile Telecommunications, Pharmaceuticals & Biotechnology, Software, Technology, Hardware & Equipment).

Moreover, 70% of SMEs that constitute the industrial backbone of our country is largely a user of applications of medium-low technological level and in the rare cases of high-tech activities it has limited powers of investment. Large domestic firms (including multinationals with Italian CG) invest percentages varying between 10 and 15%n R&D, with a predominance of the D part rather than R. The almost immediate result is that the Italian industrial sector investment in R&D is well below that of all industrialised countries: the availability of funding for technology transfer from the Italian industry is therefore limited. On the other hand, it is plausible that a richer offer from the Italian research sector might improve the current status.

In most cases, companies rely on public support through targeted interventions in support of research such as L.D. 297, the measures envisaged by the National Operative Programme (PON) or Industria 2015. In this context, the presence of IIT premises in Southern Italy can play an important role or the IIT’s participation in national and district teams with the right to access programme agreements with the regions. However, these possibilities are spasmodic, sometimes marginal, and geographically localised.

From the international point of view, as the IIT begins to be attractive as a partner for high-tech companies, it is necessary to consider the difficulty due to the young reputation of the body and competition from other established research giants (such Frahunofer, Max Planck Institute, the MIT and Weizmann).

The technology transfer activity is never a significant source of revenues for major research centres such as MIT and the Weizmann Institute, also known for their excellent performances in this area (Fig. 5: Benchmark reported by Roland Berger in 2006 and Weizmann 2009). Similarly the IIT cannot and will not be able to aspire to achieving great profit from technology transfer. Fig.5 shows a benchmark of the


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relationship between public funding, donations, IP revenues and fund raising in some major European and American institutions. Public funds are distributed in the U.S. largely in the form of competitive projects, thanks to the existence of funding agencies that guarantee the regularity of calls for research. This means that U.S. facilities must obtain most resources on a competitive basis (extramural funds, with funding from the state on an ordinary annual basis small or zero) for this purpose but they can count on a reliable and regular availability of invitations to participate in competitions. Therefore, the true asset of the best American structures is to attract the best researchers to maximise the probability of success in competitions for research funds. For example MIT obtains extramural funds on a competitive basis equivalent to the almost 80% of its budget, while less than 20% comes from private funds and donations. Note that the revenues arising from the management of IP are of the order of 2%, and in all cases are marginal compared to the total budget of the institute and extramural funds.

The European model is different and is based on a more regular injection of public funds, mainly due to lack of funding agencies, which reduces the chance of having periodic competitive tenders. The extreme cases are those of the Max Planck Institute and the Fraunhofer Institute (or the Weizmann Institute in Israel). The Max Planck is funded almost entirely by the state and obtains extramural funds in the order of 10% from private and public competitions. Fraunhofer and Weizmann procure extramural funding of between 50% and 60%, of which about one third from private individuals and the rest from donations and competitive public tenders. Also in this case, the revenues from I.P. do not exceed a few percent and therefore remain a marginal contribution to the share of extramural funding. These values, which are by far the highest in the landscape of the enlarged European Union, reflecting the particularly favourable situation of Germany and Israel which have both funding agencies and investors and an effective industrial technological fabric willing to invest in R&D. Therefore, it is reasonable to assume that in the future and in full activity the IIT may target an average value of extramural funding in the order of 20-25% of the public endowment fund, part of which comes from technology transfer with and for private parties. As a mere example, a third of extramural funds deriving from TT might be considered an indicator of success.

Fig. 5


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Spin Off The case of spin-offs requires some additional comments. A spin-off generates a value chain, local allied industries and economic growth. However, in general, it produces only marginal revenues for the research institute that creates it, in proportion to its stake in the company. In addition, the research body usually participates in the spin-off initially, and then comes up with appropriate exit strategies that are part of its policy. It is known that even in most advanced countries of the world spin-offs have a very high failure rate and rarely lead to significant financial results. On average, 50% do not succeed, 10% bring in revenues more than 10 times the investment and the remaining 40% settles on revenues of between one and ten times the investment. Even though these results depend on the technology market of reference, it is a fairly widespread tendency to see a decrease in stock prices of the spin-offs of research (mainly observed in the U.S. market) in favour of acquisition strategies by large groups.

In terms of investment in recent years a decrease in VC funds has been seen in the U.S. and Europe, where among other one has observed a low average return on investment or, in some years even negative. The Italian situation is worse than the European average, and the VC funds available are somewhat limited.

In Europe, the distribution of investment firms promotes the private equity compared to “early stage”, although there are several recent initiatives that bode well for future funding because they have important and very sturdy frames of reference (see Innogest and Atlas Ventures, supported by Banca Intesa). In any case, venture capital prefers to fund initiatives that already have working prototypes and a well identified market with quality management.

The main Italian and European funds of potential interest to the IIT are listed below:

Italian Funds: Italian Angels, TT Ventures, Z Cube, I-ban, Quantica, x-fRiulia, 360 Capital Partners,

European Funds: Eban, London Business Angels, Seed Capital, Bayern Kapital, Doughty Hanson, Sofinnova Ventures, Balderton Capitals, Index Ventures, Atlas Ventures, PriCap, TLC Com Capital.

It is very difficult at present to predict the possible spin-off initiatives of the IIT in the next five years. Reasonably one can expect that the iCub robotics platform and its derivatives may be an initial basis for the launching of spin-offs.

The D4 platform already has some prototype active ingredients that will shortly begin Phase II and testing on humans (on the results of which depend all the possibilities of transfer to the market.

Finally, three business cases are being studied that starting from IP or expertise of the IIT could lead to the creation of spin-offs.

In terms of predictions, it is right to expect that the rapid growth of activities related to smart materials and nano-chemistry in the IIT can in turn generate new ideas potentially suitable to spin-offs (this is the case of nano-magnetic particles for diagnostics and drug delivery, or intelligent functionalised surfaces on plastics and polymers).

Overall, the availability of several niche technologies that the IIT owns should be recorded, though not individually sufficient to justify a spin-off, they could become part of a catalogue of high-tech type of custom-tailored of wide international diffusion (in similar catalogues of the RS-Components type). The portfolio of technologies could be handled by a general spin-off, similar to an incubator, which would in the medium term allow us to separate laboratories and the careers of IIT researchers who prefer to continue improving the product for the market rather than continuing with more basic research.

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