Developing Relationships within the SBIR Program Part 4 – Assessing the Marketplace for a Technology

By EARLE HAGER published SEPTEMBER 20, 2018

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Competitive data is key to market evaluation.  Is the research current?  Are others working on similar projects, or is the competitive research part of the past?  Is the technology too far into the future for the marketplace?

If the research is too old, the project may not have an opportunity in the marketplace.  If the technology is too far into the future or too far from entering the marketplace, the technology would be best managed as a research project for a few more years.

If the patent space is crowded, an innovator will need to be careful in their patent applications, to ensure the space claimed is not too large or too limited.  If there is little patent activity in this space, innovators should consider whether or not patents will be part of the market development process.  Many technologies rely on trade secrets or are simply “sales and marketing” plays.  If the technology is a “sales and marketing” play, the innovator will want to find no patent protection and seek partners who are interested in working with them on getting the product to the marketplace.

Finally, what are the competitive products and trials?  Companies with a product already in your space may want to seek additional patent protection.  Companies without a product may want to enter the space.  Companies testing a product that has recently failed may want to substitute a new product in this space.

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Developing Relationships within the SBIR Program Part 3 – Working with Universities

By EARLE HAGER published SEPTEMBER 19, 2018

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We note universities are eager to help with their own networks and ecosystems. For them, there is an opportunity to advance multiple technologies in a single area. The startup will gain access to university professors and graduate students and potentially work with university startups seeking business support. Finally, it is an opportunity to pitch the company with the statement, “Hi, I am a startup working with a USC / CalTech technology …”

If you want to see a list of all University of California technologies available for licensing, look here.

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Developing Relationships within the SBIR Program – Part 1 – What is the SBIR Program?

By EARLE HAGER published SEPTEMBER 19, 2018

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THE HISTORY OF THE SBIR AND STTR PROGRAMS

The Small Business Innovation Research and the Small Business Technology Transfer programs are both considered small business set-asides and contain sunset provisions. Funds are restricted or set aside exclusively for use by small businesses in both of these initiatives. The Small Business Administration establishes size standards on an industry-by-industry basis using the North American Industry Classification or NAICS codes.

Though dynamically different, both programs share a common goal – to foster innovation among domestic small businesses engaged in Federal research and development activities. As such, both programs harness the entrepreneurial spirit for which the United Sates is recognized and will continue to evolve over time.

For more on the history of the SBIR program, click here.

In 2015, there were 17K SBIR Phase 1 proposals submitted.  Just under 17% of these applications were funded. You need to find a way to increase your chances.

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SBIR – How to Double your Money

India, Kentucky, Buffalo and other locations will help you double your money.  India will match funds for research conducted in India.  If you are working with a university, they may already have collaborators/contacts in India for this step.

Kentucky will double your SBIR money if you setup shop in Kentucky. The bourbon is good and the housing is inexpensive.

Buffalo is sharing an annual fund of $5m for tech startups.  They also need a quarterback.

 

Technology Readiness Levels – A Short Introduction

TRLs are the readiness level of a technology for commercialization.  Although not an exact definition, understanding where your tech stands allows you to present your technology in terms for planning for next steps.  University techs are generally 1-3, early stage companies push the 5-6 level, and you are ready to sell when you are in levels 7-9.

  • Market Entry Level
  • 1-4 Research, 5-6 POC, 7-9 Commercialization
  • Not precise number, but sets level
  • Establishment of levels key to grants and investments

A Few Tech Transfer Offices

USC

UCLA and the UC System

The University of Texas System

University of Pennsylvania Center for Innovation

 

 

Technology Transfer Groups and How to Work with Them

The first step is to get to know the professor.  Published disclosures are older.  The new stuff is the current research and the information they want to disclose shortly.  This is the early stuff.

So, you then go to the tech transfer office.  Here are some concepts you should understand before you meeting.

  • You can take option on technology for 6 months
  • Option process is relatively inexpensive
  • Keep renewing option as you apply for grants and partners
  • Work with professor on advancing technology
  • “Exclusive right to negotiate” is a key legal term for the offices
  • University can’t sign lesser deal afterwards
  • Not a matching offer agreement

 

Technology Pipeline – Who Else is working and not working in my space

Currently, multiple external databases can provide updates on competitive technologies and research efforts.  It is key for the innovator to understand their opportunity in advance. Here are a few examples.

In your research, you should seek companies that are working in your space, companies that want to work in your space, and companies that recently failed in your space.