Communication and dialogue

Need for special agreements
If commercialization is one of the aims of your programme, special agreements may beneeded. These must be identified before the programme even begins. Think through the ultimate goal(s) of the programme at the planning and launch stages and make sure there is an active dialogue between researchers and users/companies to establish what agreements need to be put in place. Mistra insists on the necessary agreements being signed before it will begin to disburse the funds awarded to the programme. If there are companies involved in a programme, there will usually need to be a consortium agreement between the companies in question, the main contractor and other participating universities/colleges/institutes; in other words, all the legal entities concerned need to reach and sign an agreement on the collaboration between them.

A consortium agreement sets out the parties´ undertakings in terms of financial commitments, contributions in kind through company staff, and any other contributions; rights to patentable inventions; confidentiality of information, and so on. Often companies require researchers to sign a confidentiality agreement, as a basis for openness on their part. Even if the whole of a programme is carried out within a single organization, such as a university, it can sometimes be a good idea to draw up a collaboration agreement which all the researchers concerned sign. This may for example regulate what happens to any patentable inventions. It is important to draw up an agreement from the outset, so that everyone knows where they stand when the relevant situation arises. Such a collaboration agreement may also be appropriate even if individuals from more than one organization are involved and if, for example, the programme does not have a consortium agreement with participating companies governing such matters. If one or more researchers already have patents that are of importance to the programme, this question needs to be regulated in an agreement.

Analyse the current situation regarding patents and other forms of intellectual property. It is important to be familiar with the patent literature and to know what patents already exist and which ones could represent a bar to novelty for patent applications within the programme. It is important to check what EU projects programme researchers are or have been involved in, and what know-how and patent implications, if any, such involvement may have. Prior publication may also be prejudicial to the novelty of forthcoming patent applications. Participating companies can carry out some of the analysis of the existing patent literature. The company Forskarpatent AB, which is represented in several university towns, should be able to help. Another possibility is to engage the services of a patent agent. In the case of programmes with an emphasis on commercializable results, a confidentiality agreement for the members of the programme board may be a good idea, to permit discussions within the board and with the programme manager and researchers to be as open and fruitful as possible. Both researchers and company employees should be able to show the greatest possible openness without fear of adverse consequences. Already at the planning stage, the programme should get in touch with university related organizations whose job it is to facilitate research-based innovation and business start-ups/spin-outs, such as technology bridge foundations, Forskarpatent AB, technology parks and incubators. University and college legal officers can often assist with agreements.

Membership of the programme board
Members of the programme board are chosen in the light of the programme´s objectives. Where the aim is commercialization, the board usually includes individuals from a range of different organizations: for example, representatives of some of the participating companies, an official from a government agency if such an agency is a user, and possibly individuals with expertise in other areas, to complement that of the other board members. In addition, there will generally be a re s e a rcher who is not participating in the programme, but who has a good understanding of academia and its potential and limitations when it comes to innovation and commercialization. The experience and active commitment of the chairperson is crucial in securing progress towards commercialization.

Strategic reserve for the programme board
All Mistra programmes should set aside around 10 per cent of their budget as a strategic reserve at the beginning of each phase. With this reserve, it is possible at a later stage to make strategic choices concerning new projects and partnerships, use of consultants and so on. The process of commercialization may give rise to several unplanned but necessary outlays, and the programme needs to have funds to cover them. The reserve is not, however, to be seen as a source of funds to cover overspending under other budget headings.

Management structure
Think through what special challenges the programme´s objectives pose in terms of programme management. What should its characteristic qualities and driving forces be? What knowledge, skills and experience are required? Do the programme manager and/or others in the management structure need to have special experience from industry?

Industry-sponsored PhD students
Consider the possibility of involving industry-sponsored doctoral students in the programme. They can make excellent bridges between academia and the business sector.

Companies and entrepreneurs
Your programme could collaborate with major companies, small businesses and/or entrepreneurs inside and outside the academic world. Think through what combination best suits your objectives.

Small firms rarely have economic muscle and often have limited scope to put experts at a programme´s disposal. They usually need an injection of capital to be able to take research results a step further. On the other hand, small businesses may turn out to be more innovative, with a culture of seeing business opportunities in new, unconventional ideas. There may be other entrepreneurs, inside or outside the academic world. Should such individuals be linked to the programme in some way?

Communication plan
As part of the process of working towards commercialization, your communication plan should be geared to your particular target groups. See the section on communication and dialogue with users above. Communication should not only be concerned with specific research results, but also with their consequences for the environment, profitability, business development and so on.

Market analysis
A research programme can hardly be expected to carry out a fully fledged market analysis, but it is important to have a clear idea of what the market looks like. The members of your programme board have relevant knowledge, experience and networks. Certain issues should be kept in focus in their discussions: What does the intended market look like? What competing research groups and companies are there? What are they doing? What developments could affect the market and hence the focus of the research programme: technology leaps, new regulatory regimes imposed by national authorities and the EU, other factors? Relevant information can be supplied to the programme by participating companies or, in certain cases, bought in on a consultancy basis.

Business plan
Draw up a rolling ‘mini-business plan´ from the start of the programme, for use by the programme board and programme manager. Initially only a simple plan is needed, which can then be developed by means of regular updates, a recommended interval being at least every time the programme plan is revised. Review the programme´s strengths, weaknesses, opportunities and threats. What could go wrong? What strengths and weaknesses can be identified? What can be done to enhance the prospects of success and reduce the risks?

Changing capability needs
Think through what capabilities the programme needs over time, in terms both of research disciplines and of expertise which is not normally available at universities, but which can be bought in. Communications officers and technology coordinators are examples of the latter.

Venture capital
How do you find and get in touch with pre-seed and seed finance organizations, venture capital firms and so on? What documentation do they require to be prepared to listen? What does it take to persuade them to invest? Get in touch with university holding companies, technology bridge foundations and other organizations closely linked to universities and colleges.

Business start-ups
It may be that all the researchers involved in a programme, or a group of them, consider it appropriate to set up a company, for example to have a legal entity to own the patents arising under the programme. Discuss this early on with holding companies, technology bridge foundations and others. The intellectual property position has to be absolutely clear: who has the right to exploit existing patents and know-how? Sometimes licences and/or patents may already exist. How and at what cost can these be transferred to the new company?

Clear dividing lines: what is to be done within the research programme, and what within companies (new and existing)?

Guidelines may need to be put in place from the outset, depending on what collaborations look like. Define what is research, and part of the research programme, and what is development, to be paid for by companies. There may need to be an agreement between a university and a company on the use of university equipment. Everyone involved in the programme must be familiar with local (university) guidelines on outside employment, leave of absence, use of research students, conflicts of interest and so forth.

What is required in terms of scaling-up/system development of research results to bring about commercializable processes and products?

Think through the entire chain, from research results to final use. How do you ensure that all the links in the chain exist and actually work? If the necessary knowledge and skills are not available, how do you get hold of them? How far does the programme itself extend, and what important links lie outside the current programme plan? How do you get these links involved?

Collaboration increases the chances of success
Dialogue and collaboration enhance the prospects of achieving success. Engage in a discussion within the programme, with the programme board and with others closely linked to the programme. Mentoring arrangements between company representatives and research students may be an important element here. In addition, researchers could work for a time in a participating company. Make use of the opportunities provided by industry-sponsored PhD students (see above). Entrepreneurial training for participating researchers may be of value.

Preparing for a second phase, where relevant
A separate section below describes how programmes should prepare for a second phase, if one is envisaged. In the case of programmes aiming for commercialization, the issues discussed in the present section should receive particular attention. Review these points and think through what has been done, what needs to be further developed, and what new initiatives are required.

Don´t forget to define the risks. Who is in a position to finance pilot plants and trials? Who can fund further development based on the research results? Investors want a return on their capital, and vary in their staying power. During a second phase of the programme, the entire focus is on achieving the commercialisation intended. Get in touch once again with technology bridge foundations, Forskarpatent AB, technology parks, incubators and others to see if they can assist you in any way.

Frequently asked questions
Can we wait and see if we have anything to patent before we sign any agreements?
No. When commercialization is one of the aims of your programme, it is very reassuring for all concerned to have agreements in place from the outset, and they should therefore be drawn up at the start of the programme.