We are all familiar with the Robert Frost poem The Road Not Taken. At Fuentek, we encourage those in technology transfer to heed this approach, especially when faced with the chance for a “quick win.”
It is easy to lose sight of your goal when near-term metrics, such as signed licenses, are emphasized. But the goal of tech transfer is not merely the tally of signed licenses. The goal is to move technology into and out of your organization to achieve positive, tangible outcomes.
How can you keep the bigger picture in mind? Put simply, Symbiotic Innovation. This is the notion that spin-out (commercializing technology) and spin-in (open innovation partnerships) are not mutually exclusive activities, and having an integrated approach yields better results for both spin-in and spin-out. For example…
One of our clients had developed a sensor useful to the aviation industry. In fact, they had been contacted by a company interested in licensing the technology, and they asked Fuentek to help secure the license. True to our core values, we first did some background research to better understand the previous technology development, any previous contacts that had been made by the organization and its inventors, and where there might be other opportunities for this technology.
BTW, I use the word opportunities because we did not limit our thinking to only the company that had expressed interest in licensing the technology. Rather, we broadened our thinking to all organizations, including government agencies and universities that might benefit from this sensor technology.
By digging into the background, we discovered that the technology needed testing before it could be licensed. Rather than give up on the license, we used Symbiotic Innovation to work the spin-in angle of this seemingly spin-out activity. Long story short, the result was two collaborative agreements: one to have the company integrate the sensor into a key component and a second agreement to have that component flight tested by a government agency.
These tests revealed several key benefits and the value of the technology for enhancing aviation safety. However, it also revealed some areas that needed improvement in order for the technology to be successfully implemented in the aviation industry. These insights now are being used to develop an improved sensor that is expected to meet aviation standards. This improved technology will have a higher probability of success and is thus more likely to make its way through the commercialization pathway and into broad use by the aviation industry, enhancing safety for the flying public.
So, no, there wasn’t the “quick win” of a license, but our client got so much more:
- Saved time and resources of putting a license in place for a technology that was not yet ready to be commercially successful (which likely would have ended in a terminated license with little financial gain for our client and no actual transfer of the technology into a commercial product)
- Developed a positive relationship with the company, which will make future licensing activities more productive
- Established a strong relationship with government agency that will facilitate future testing of additional technologies
- Positioned for better financial terms in licensing the updated technology using the data and insight from the flight testing
Lesson learned: Just because a path is easy, doesn’t mean it’s the right path. Look at both paths (spin-out and spin-in), and then choose the one that leads to a better long-term solution rather than merely the near-term achievements. As this case study illustrates, concerted, proactive analysis of both the spin-in and the spin-out opportunities yielded far more long-term benefits for all.
What are your experiences with having a spin-out effort turn into a spin-in effort?
