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Collaborative Commercialization© A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff [email protected] October 2006
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Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff [email protected] October 2006 By Marsha.

Mar 27, 2015

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Page 1: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

Collaborative Commercialization©

A Diaspora-based Model for Sustainable Economic

Development

By Marsha [email protected]

October 2006

Page 2: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

Traditional Product Commercialization

Traditional Product Commercialization

Major co from a G7 country develops intellectual property associated with Products

G7 co either synthesizes materials for products or sources raw materials from EM

G7 co captures value adds from manufacturing through product commercialization

Some finished product is donated/sold to EM, but funding is always an issue

Major co from a G7 country develops intellectual property associated with Products

G7 co either synthesizes materials for products or sources raw materials from EM

G7 co captures value adds from manufacturing through product commercialization

Some finished product is donated/sold to EM, but funding is always an issue

Donated &/or Sold to Emerging Market (EM)

Product Developed& Refined in G7

Page 3: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

Traditional Commercialization

Value Addition

Traditional Commercialization

Value AdditionValue Addition G7 EM

Discovery, Recognition x

Intellectual Property Rights x

Regulatory Licenses x

Product Development/Refinement

x

Market Research & Planning x

Manufacturing/Processing x x

Global Sales & Distribution x x

Multi-national Operations x x

Corporate Ownership x

Page 4: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

Traditional Commercialization Systemic Problems

Traditional Commercialization Systemic Problems

EM does not develop economic strength to buy health products

EM health needs are not met because EM cannot pay for G7 health products

Neglected diseases prevent EM economic development

Cycle of poverty continues, as do social, political & economic unrest

EM does not develop economic strength to buy health products

EM health needs are not met because EM cannot pay for G7 health products

Neglected diseases prevent EM economic development

Cycle of poverty continues, as do social, political & economic unrest

Page 5: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

New Global Dynamics / EM New Global Dynamics / EM EM Diaspora have earned degrees from top G7 universities

EM Diaspora have attained career distinction in leadership roles at major firms

EM Diaspora are establishing new firms in their old homelands

Case Study of Silicon Valley: The New Argonauts: Regional Advantage in a Global Economy, by Saxenian

EM Diaspora have earned degrees from top G7 universities

EM Diaspora have attained career distinction in leadership roles at major firms

EM Diaspora are establishing new firms in their old homelands

Case Study of Silicon Valley: The New Argonauts: Regional Advantage in a Global Economy, by Saxenian

Communication Technology Advancements permit efficient global interaction

Page 6: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

New Global Dynamics / G7New Global Dynamics / G7Major corporations now recognize their growth depends upon acquiring rights to innovations from smaller, more entrepreneurial firms.

Major corporations now accept a ‘Flat World,’ and rely on collaborations with entrepreneurial firms in China & India to remain competitive.

These collaborations are usually orchestrated by EM Diaspora.

Major firms recognize EM citizens as potential customers, Bottom of the Pyramid.

Major corporations now recognize their growth depends upon acquiring rights to innovations from smaller, more entrepreneurial firms.

Major corporations now accept a ‘Flat World,’ and rely on collaborations with entrepreneurial firms in China & India to remain competitive.

These collaborations are usually orchestrated by EM Diaspora.

Major firms recognize EM citizens as potential customers, Bottom of the Pyramid.

Page 7: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

Collaborative Commercialization Product

Development

Collaborative Commercialization Product

DevelopmentEM Co Collaborates w/

G7 Co for Global Commercialization

EM Co Discovers & Develops

Product

1. Entrepreneurial EM Co: Establishes branded product, Proves up market demand, and Secures government incentives for new jobs.

2. EM Co collaborates with Major G7 firm to: Refine product for global markets; Market co-branded product; Ramp up manufacturing; and Distribute globally

1. Entrepreneurial EM Co: Establishes branded product, Proves up market demand, and Secures government incentives for new jobs.

2. EM Co collaborates with Major G7 firm to: Refine product for global markets; Market co-branded product; Ramp up manufacturing; and Distribute globally

DiasporaAssistance

Page 8: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

Collaborative Commercialization

Value Addition

Collaborative Commercialization

Value AdditionValue Addition G7 EM

Discovery, Prospect Identification x

Intellectual Property Rights, x

Regulatory Licenses x x

Product Development/Refinement x x

Market Research & Planning x x

Manufacturing/Processing x x

Global Sales & Distribution x x

Multi-national Operations x x

Corporate Ownership x x

Page 9: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

Collaborative Commercialization Resolves

Systemic Problems

Collaborative Commercialization Resolves

Systemic Problems EM develop economic strength to buy own health products

Health needs of EM are addressed because they can make and pay for appropriate health products

EM SMEs gain access to larger corp growth resources

Improved health promotes EM economic development

Cycle of poverty is broken through self sufficiency

Empowerment leads to social, political & economic stability

EM develop economic strength to buy own health products

Health needs of EM are addressed because they can make and pay for appropriate health products

EM SMEs gain access to larger corp growth resources

Improved health promotes EM economic development

Cycle of poverty is broken through self sufficiency

Empowerment leads to social, political & economic stability

Page 10: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

The EM Opportunity …The EM Opportunity …Current EM Innovation Pipeline:

University Innovation CentersPublic Research CentersBusiness Incubation CentersPrivate EnterpriseIntellectual Property AttorneysSeed Stage Venture Funds Licensing AgentsDevelopment FundsDevelopment AgenciesNGOs & Civic OrganizationsProfessional Associations

Current EM Innovation Pipeline:

University Innovation CentersPublic Research CentersBusiness Incubation CentersPrivate EnterpriseIntellectual Property AttorneysSeed Stage Venture Funds Licensing AgentsDevelopment FundsDevelopment AgenciesNGOs & Civic OrganizationsProfessional Associations

DiasporaAssistance

Page 11: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

Research

Trials

Commercialization

Expansion

M&A

IPO

Tim

e

Funding Constriction Point

Funding SourcesProduct Development Stage •Universities

•R&D Centers•NGOs•Founder, Friends & Family

•VC •Corporate Contracts•Private Equity•Banks•Public Markets

The Problem: Product Commercialization

Funding

The Problem: Product Commercialization

Funding

Page 12: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

The Answer: Diaspora Bridge Gap to Venture

Capital

The Answer: Diaspora Bridge Gap to Venture

Capital

Venture Capital backed successful, Diaspora-led Product Commercializations Case Studies: Financial Systems, Corporate Investment in Innovation and Venture Capital by Bartzokas and Mani, 2004

Ex: India ITC companies

DiasporaAssistance

Page 13: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

The Need: A Hub that Sustainably Links Commercialization Resources

The Need: A Hub that Sustainably Links Commercialization Resources

EM InnovationSystems

DevelopmentAgencies

IndustryLeaders

Global Health NGOs

Venture Capital Funds

Product

Commercialization

Entity

DiasporaAssistance

Page 14: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

The Sustainable SolutionProduct Commercialization

Portfolios

The Sustainable SolutionProduct Commercialization

PortfoliosG7 Investor &

Industry Resources

Foundations

Venture Funds

Merchant Banks

Investment Banks

Multilateral Agencies

Industry Associations

Social Investor Groups

Development Agencies

EM Innovation & Enterprise Resources

Innovation Centers

Research Centers

Incubation Centers

Intellectual Property Attorneys

Seed Funds

Development Funds

Development Agencies

NGOs & Civic Organizations

Diaspora-Led Product

CommercializationPortfolio Program

In-Licensing Out-LicensingManufacturing

Sales/Distribution Development Partnering

CollaborativeCommercialization

Entity

Page 15: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

Collaborative Commercialization Entity;

The Bridge to Private Sector Expertise…

Collaborative Commercialization Entity;

The Bridge to Private Sector Expertise…

Administers Product Commercialization ProgramBusiness Administration: Fiscal oversight, Metrics,

Reports, Communications, CompensationFunding Sources:

Initially NGOs & Govt Loan/Grant Funding Then Profit Sharing Revenues

Incents Private Sector with Risk Reduction strategies:Supplements Product Development CostsProvides Experts to Launch & Market Products Negotiates Corporate Revenue Sharing Contracts

Deploys Private Sector Expertise: Interfaces with Diaspora, Industry and Funding

NetworksFunds cross-functional Team of Experts to assist

Portfolio CosConducts EM SME Management Training Boot Camps

Administers Product Commercialization ProgramBusiness Administration: Fiscal oversight, Metrics,

Reports, Communications, CompensationFunding Sources:

Initially NGOs & Govt Loan/Grant Funding Then Profit Sharing Revenues

Incents Private Sector with Risk Reduction strategies:Supplements Product Development CostsProvides Experts to Launch & Market Products Negotiates Corporate Revenue Sharing Contracts

Deploys Private Sector Expertise: Interfaces with Diaspora, Industry and Funding

NetworksFunds cross-functional Team of Experts to assist

Portfolio CosConducts EM SME Management Training Boot Camps

Page 16: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

Product Commercialization Portfolio (PCP) Program Structure

Administrative Assistant Financial Analyst

Regional PCP Manager(s)Identify & Screen Innovations

Support SME MangementRegional Investor & Industry Relations

Global PCP Executive Director(s)Global Product Portfolio Balancing

Investment Structure & SyndicationG7 Investor & Industry Agrmnts

PCP Support TeamsMarket Research, Intellectual Prop.Design Engrg, Sales & Marketing

Corp Law

PCP Diaspora TeamConnects Regional Entrep with Diaspora

Ethnic Professionals RelationsConducts Networking Events

PCP BootCampsMngmt Trng: Biz Dev, Prod Dev,

Fair TradeInvestor Relations, Corp Law, CSR

PC Executive BoardBroad Spectrum of Sr Intl ExpertsNetwork with Multi-lateral Funders,

Industry Partners & Private Investors

Product Commercialization NFP CorpAdministers Funding, becomes Self-supporting entity

Hires & Manages Commerce ExpertsConsumates Commerce Agreements

NFP &/or Govt FunderGrants Initial Funding

Holds PCP Accountable for MetricsBrand Lends Credibility & Visibility

Diaspora

Diaspora

Diaspora

Page 17: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

How to get StartedPublic Sector & NGOs…

How to get StartedPublic Sector & NGOs…

These Development Sponsors:

•Foundations•Multilateral Agencies•Development Agencies

Provide Initial Grants & Loans to

Establish Collaborative

Commercialization Entity

To Establish & Manage Product

Commercialization Portfolio Program

In-Licensing Out-LicensingManufacturing

Sales/Distribution Development Partnering

DiasporaAssistance

Page 18: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

How to get StartedPrivate Sector…

How to get StartedPrivate Sector…

Collaborative Commercialization Entity Taps these Private Sector Resources: •Ethnic Professional Associations (TIE)•Venture Capital Industry•Socially Responsible Corps•Industry Biz Dev Depts

For Experts in: •Intellectual Property Rights•Corp Contract Negotiations•Product Design Refinement•Market Research•Industry Networking•Product Launch•Business management•Market Access

To Commercialize Indigenous Products:

•Manufacturing•Major Sales Contracts•Global Distribution•Additional Product Line Extensions•Sales Revenues

In-Licensing Out-LicensingManufacturing

Sales/Distribution Development Partnering

DiasporaAssistance

Page 19: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

Commercialization Example BioResources International,

Inc.

Commercialization Example BioResources International,

Inc.BRIBRI

Diaspora Management Team, Americans from Ghana, Ivy-league advanced degrees in Science & Business

Co adds value to plant-based health products grown in Africa

Developing low-cost pediatric anti-Malarial drug

Needs $5M loan for an extraction facility & product launch

Diaspora Management Team, Americans from Ghana, Ivy-league advanced degrees in Science & Business

Co adds value to plant-based health products grown in Africa

Developing low-cost pediatric anti-Malarial drug

Needs $5M loan for an extraction facility & product launch

Page 20: Collaborative Commercialization © A Diaspora-based Model for Sustainable Economic Development By Marsha Wulff marsha@wulffcapital.com October 2006 By Marsha.

Collaborative Commercialization, The Diaspora-based

Solution…Indigenous Innovations

+Development Funding

+Commercialization Resources

=Sustainable Economic Development

[email protected]