Dr . Bozidar Etlinger

April 2004 Innovation and Competitiveness 1

DrDr.. Bozidar Etlinger Bozidar EtlingerAssociate Director

Ruder Boskovic Institute

Croatia• Commercial Development Manager, RBI

• Former Head, Semiconductors Laboratory,

Materials Research & Electronics Department,

RBI Governing Board Member


Croatia:Croatia: SCIENCE & SCIENCE & TECHNOLOGY TECHNOLOGY

PROJECTPROJECT

Bozidar EtlingerBozidar Etlinger::

Business PlanBusiness Planandand

Inovation StrategyInovation Strategyinin

Rudjer Boskovic InstituteRudjer Boskovic Institute

Bozidar EtlingerBozidar Etlinger::

Business PlanBusiness Planandand

Inovation StrategyInovation Strategyinin

Rudjer Boskovic InstituteRudjer Boskovic Institute


• Population Population 4,494,0004,494,000• Land Area Land Area 89,810 km289,810 km2• Number of islands Number of islands 1,185 1,185 • Lenght of coast Lenght of coast 5,835 5,835

kmkm

Republic of Croatia = Republika Hrvatska


Croatian CommunicationCroatian Communication InfrastructureInfrastructure

• From 1991 to 2001 realised fiber optical infrastructure across the Croatia

• Total lenght 18 000 km

(In plastic pipe)

• monomodal optical fibre

(1300 i 1550 nm).


760 employees

330 PhD

80 MrSc

90 BSc

95 technicians

15 ha (surface)

April 2004 6

Board of Governors

DIRECTOR

Executive Management

Board

Scientific Council

Board of division directors

Scientific divisions

Support departments

Marketing

Administration

Education affairs

Library and information center

Computer center

NMR service

Technical and scientific services

Theoretical Physics

Experimental Physics

Material Physics

Electronics

Physical Chemistry

Organic Ch.& Biochemist.

Material Chemistry

Molecular Genetics

Molecular Medicine

Marine Research

Marine & Environmental

Laser and Atomic R&D

MIS

IPR


Articles in Current Contests Journals

Other Journals

Proceedings

Books


courses lecturers


lecturerscourses


FIRST CONTACTS

World Bank - IRB

April, 2002

FIRST CONTACTS

World Bank - IRB

April, 2002


COMMERCIALIZATION

Rudjer Boskovic Institute

START:2002

November

Many questions ????

COMMERCIALIZATION

Rudjer Boskovic Institute

START:2002

November

Many questions ????


CC ommunicationommunicationRR esponsibilityesponsibilityOO pportunitypportunityAA chievementchievementTT eamworkeamworkII ntellectual Propertyntellectual PropertyAA ttitudettitude


Developing & Developing & ImplementingImplementingBusiness PlanBusiness Plan

1.1. Fundamental ConsiderationsFundamental Considerations

2.2. Planning, Writing & PresentingPlanning, Writing & Presenting

3.3. ImplementationImplementation


Fundamental Fundamental ConsiderationsConsiderationsFundamental Fundamental ConsiderationsConsiderations

1.1. What is our “PRODUCT”?What is our “PRODUCT”?

2.2. What is the “MARKET What is the “MARKET OPPORTUNITY”?OPPORTUNITY”?

3.3. ““FREEDOM TO OPERATE” FREEDOM TO OPERATE”

4.4. Sources of information/ helpSources of information/ help

5.5. What to expect!What to expect!


What is our “PRODUCT”?What is our “PRODUCT”?

Unique skill or capabilityUnique skill or capability Novel intellectual propertyNovel intellectual property Expertise/ knowledgeExpertise/ knowledge EducationEducation InfrastructureInfrastructure Other exploitable assetOther exploitable asset Opportunity to meet an unmet needOpportunity to meet an unmet need


What are What are oouurr Selling? Selling?

ResearchResearch ProductProduct ServiceService LicenseLicense CombinationCombination

Be realistic, focus on core Be realistic, focus on core strengths & achievable strengths & achievable

deliverablesdeliverables


What is the “MARKET”?What is the “MARKET”?

1.1. What are What are wewe selling? selling?

2.2. Where do Where do wewe intend to sell? intend to sell?

3.3. Who are the “CUSTOMERS”?Who are the “CUSTOMERS”?

4.4. What is the size of the market?What is the size of the market?

5.5. What share of the market do What share of the market do ourour projectprojectss??

6.6. How will How will we we be paid/ reimbursed?be paid/ reimbursed?

7.7. How will How will wewe actually market/sell the actually market/sell the product?product?


““Freedom to Operate”Freedom to Operate”

Do Do wewe have the rights to make/ use/ have the rights to make/ use/ mmarket/ sell our product?arket/ sell our product? What elements comprise our What elements comprise our ““productproduct””?? Where do Where do wewe intend to practice/operate/sell? intend to practice/operate/sell? Do Do wewe own all of the intellectual property? own all of the intellectual property? Is there dominating intellectual property?Is there dominating intellectual property? Do Do wewe need a license? need a license? Can Can wewe obtain a license obtain a license??


Types of ServicesTypes of Services

Contract research & Contract research & development development Contract testingContract testing DatabaseDatabase EducationEducation Conferences & training coursesConferences & training courses ConsultancyConsultancy


Marketing LevelMarketing Level Network potential clientsNetwork potential clients Network Network ““advocatesadvocates”” Present at key conferences and Present at key conferences and tradeshowstradeshows Publish and present strong external Publish and present strong external profileprofile Secure some key high profile Secure some key high profile accounts accounts Ensure compliance & deliverablesEnsure compliance & deliverables

Build profile and reputation for Build profile and reputation for “product” & “service” orientation“product” & “service” orientation


Confidential DisclosureConfidential Disclosure

Confidentiality is critical to clients Confidentiality is critical to clients and to our Instituteand to our Institute

Execute Confidential Disclosure AgreementsExecute Confidential Disclosure Agreements– Mutual or one-way depending on projectMutual or one-way depending on project

Always maintain confidentiality of dataAlways maintain confidentiality of data Do not disclose our own IP/ Trade SecretsDo not disclose our own IP/ Trade Secrets


What is the What is the “COMPETITION”?“COMPETITION”?

Identify competitorsIdentify competitors Define their strengths and Define their strengths and weaknessesweaknesses Identify opportunitiesIdentify opportunities

What are the unique attributes What are the unique attributes that will differentiate you from the that will differentiate you from the competition and attract the competition and attract the clients?clients?


Ministry of Science & Ministry of Science &

TechnologyTechnology andand WB WB R&D Institutes entry R&D Institutes entry

criteria:criteria:

Ministry of Science & Ministry of Science &

TechnologyTechnology andand WB WB R&D Institutes entry R&D Institutes entry

criteria:criteria: 1.1. A clear and relevant vision, mission, A clear and relevant vision, mission,

objectives and strategy for the objectives and strategy for the institute. institute.

2.2. A completed business plan to the A completed business plan to the agreed template, which agreed template, which demonstrates long-term demonstrates long-term sustainability. sustainability.

3.3. Viable financial projections for a Viable financial projections for a period of 5 years from the date of period of 5 years from the date of application to the program. application to the program.

1.1. A clear and relevant vision, mission, A clear and relevant vision, mission, objectives and strategy for the objectives and strategy for the institute. institute.

2.2. A completed business plan to the A completed business plan to the agreed template, which agreed template, which demonstrates long-term demonstrates long-term sustainability. sustainability.

3.3. Viable financial projections for a Viable financial projections for a period of 5 years from the date of period of 5 years from the date of application to the program. application to the program.


R&D Institutes entry criteria:R&D Institutes entry criteria:

4.4. A audit by international experts of the A audit by international experts of the quality of the work produced by the quality of the work produced by the institute and its staff. institute and its staff.

5.5. A demonstration of active and effective A demonstration of active and effective leadership.leadership.

6.6. Sound Governance which demonstrates Sound Governance which demonstrates independence from any organization, independence from any organization, group or vested interest and which can group or vested interest and which can show expertise in areas relevant to the show expertise in areas relevant to the future work of the institute.future work of the institute.



7.7. Evidence of demand for the services to Evidence of demand for the services to be offered by the institute.be offered by the institute.

8.8. A minimum agreed 5 year target for A minimum agreed 5 year target for contract income which must exceed 40% contract income which must exceed 40% of current Government grant support. of current Government grant support.

9.9. Plans in place to achieve a self Plans in place to achieve a self sustainability ratio (contract income/ sustainability ratio (contract income/ total cost as a %) of 40% in 5 years. total cost as a %) of 40% in 5 years.



10.10.Plan in place to develop, protect Plan in place to develop, protect and exploit intellectual property and exploit intellectual property (IPR).(IPR).

11.11.Plans in place to reduce support Plans in place to reduce support costs in 3 years equivalent to costs in 3 years equivalent to international best practice when international best practice when benchmarked against equivalent benchmarked against equivalent European R&D organizations.European R&D organizations.



12.12. Plans in place to achieve business, HR, Plans in place to achieve business, HR, commercial, marketing and financial commercial, marketing and financial systems and processes to international systems and processes to international best practice standards within 2 years.best practice standards within 2 years.

13.13. Plans in place to achieve quality Plans in place to achieve quality standards to equivalent of ISO 9001 standards to equivalent of ISO 9001 within 3 years.within 3 years.

14.14. A training plan in place which A training plan in place which demonstrates how the institute will demonstrates how the institute will develop the skills of existing staff.develop the skills of existing staff.


Essential conditions for Essential conditions for APPRAISAL MISSIONAPPRAISAL MISSION

Business Plan RBIBusiness Plan RBI

Business Plan accepted by Business Plan accepted by Governing Board Governing Board


APPRAISAL MISSIONAPPRAISAL MISSION MAY 2004 MAY 2004

Negotiations between:Negotiations between:

Government Government RBIRBI WBWB

MSESMSES BIBI

MFMF BICROBICRO(Test, Hitra, Razum)(Test, Hitra, Razum)


Business Plan RBIBusiness Plan RBI2004 - 20082004 - 2008


S T PS T P (Science Technology Project) (Science Technology Project)

(48,00 M $, WB 40,00)(48,00 M $, WB 40,00) Government (MSES,MF) & WBGovernment (MSES,MF) & WB

in 5 yearsin 5 years

STPSTP


Paricipants in STP:Paricipants in STP:Paricipants in STP:Paricipants in STP:

Government (MOF, MSES)Government (MOF, MSES)

RBIRBI BI (Brodarski institut) - Maritime InstituteBI (Brodarski institut) - Maritime Institute BICRO (BICRO (Business Innovation Center of CroatiaBusiness Innovation Center of Croatia))

Maribic, TEST, HITRA, STIRP, VC, TCMaribic, TEST, HITRA, STIRP, VC, TC

STPSTP


Financing:Financing:Financing:Financing:

preliminary (small) amount:preliminary (small) amount:TAL2 (TAL2 (Technical AssistTechnical Assistaannnncce Loan)e Loan)

(WB Loan no. 4460-HR, TAL-2)(WB Loan no. 4460-HR, TAL-2)

main (48 M$) STPmain (48 M$) STP (WB+MSES) (WB+MSES)

STPSTP


STP ConditionsSTP ConditionsSTP ConditionsSTP Conditions

Croatia: Croatia: postpone 5 years,instalment 15 postpone 5 years,instalment 15

years, years, interest: LIBOR + 1%interest: LIBOR + 1%

RBI:RBI: postpone 5 years,instalment 15 postpone 5 years,instalment 15

years,years,

65 % grant, 35 % loan65 % grant, 35 % loan,, interest: 0 %interest: 0 %

STPSTP




TAL-2TAL-2 : :

805.500 US$805.500 US$

TA, TA, trainingtraining, HR, BP, , HR, BP, MISMIS, , IPR, Web, IT,IPR, Web, IT,twinning, twinning, pilot projects (500.000 $), pilot projects (500.000 $),

conferences, conferences, new staff,new staff,

STPSTP


•Chiral Technology Development

•Authorized Diagnostic Center for Aquatic Animal Diseases•Smart Particle Analyzer

•Random Quantum Bit Generator


Start Selected ExplotationStart Selected Explotation – Pilot Projects




4 conditions:4 conditions:

1.1. Basic Research on the same levelBasic Research on the same level2.2. Increase of Commercial ProjectsIncrease of Commercial Projects3.3. Establish of Science ParkEstablish of Science Park4.4. SPREAD (Sponsored R&D Program)SPREAD (Sponsored R&D Program)

- Joint-work with - Joint-work with SME SME

STPSTP




Basic Research on the same levelBasic Research on the same level

21 M US$:21 M US$:

STPSTP




Commercial activitiesCommercial activities::

Contracts Income increaseContracts Income increase::

fromfrom 16 % (2003.) to cca 40 % (2008.) 16 % (2003.) to cca 40 % (2008.)

STP: 8,0 M$STP: 8,0 M$ : : Equipment (3,4 M$)Equipment (3,4 M$)

TA, trening, ISO, IPR, Promotion, TA, trening, ISO, IPR, Promotion,

SPREAD, Severence Plan (0,445 M$)SPREAD, Severence Plan (0,445 M$)

STPSTP




IRAIRA (Institutional Renewal Account):(Institutional Renewal Account):

20042004 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009

5% 5% 7% 7% 9% 9% 11% 11% 11% 11% 11% 11%

STPSTP


SCIENCE PARK

SCIENCE PARKSCIENCE PARK


0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

2002 2003 2004 2005 2006 2007 2008

GovernmentalGrants

Revenues fromapplied researches

Revenues fromcontracts

Revenues fromeducation

Revenues from IPR

Total competitiverevenue

Revenues fromoperation


Operational Plan for 2004:

MIS

Business Procedures

HR

IPR

Marketing

ISO standard

Science Park IRB

Evaluation of Individual Projects


•Project 1 (CHIRAL) - Chiral Technology Development•Project 2 (ADD) - Authorized Diagnostic Center for Aquatic Animal Diseases •Project 3 (ABD) - Advanced Biomedical Diagnostic•Project 4 (SPA) – Smart Particle Analyzer•Project 5 (GMO) – Genetically Modified Organisms •Project 6 (STF) – Silicon Thin Films•Project 7 (PRM) – Polymer and Related Materials•Project 8 (IMP) – Impendance Analyser

•Project - Development of a new and improved DNA vaccine against genital herpes

•Projekt - Random Quantum Bit Generator

•Project 1 (CHIRAL) - Chiral Technology Development•Project 2 (ADD) - Authorized Diagnostic Center for Aquatic Animal Diseases •Project 3 (ABD) - Advanced Biomedical Diagnostic•Project 4 (SPA) – Smart Particle Analyzer•Project 5 (GMO) – Genetically Modified Organisms •Project 6 (STF) – Silicon Thin Films•Project 7 (PRM) – Polymer and Related Materials•Project 8 (IMP) – Impendance Analyser

•Project - Development of a new and improved DNA vaccine against genital herpes

•Projekt - Random Quantum Bit Generator

Evaluation of Individual ProjectsEvaluation of Individual Projects


RR esearchesearch

BB ee the bestthe best

II nnovatennovate

Try to


DrDr.. Bozidar Etlinger Bozidar Etlinger

Associate Director,

Ruder Boskovic Institute,

Croatia• Commercial Development Manager, RBI

• Former Head, Semiconductors Laboratory,

Materials Research & Electronics Department,

RBI Governing Board Member

Dr . Bozidar Etlinger

Documents

market opportunity

use market

croatia total lenght

kmrepublic of croatia

lenght of coast

exploitable asset opportunity

atomic rdmisipr articles

rbiformer head