Commercializing Generic Technology: The Case of Advanced Materials Ventures

Generic, radical technology is of interest because of its potential for value creation across a broad range of industries and applications. Advanced materials ventures are attracted by this opportunity yet face intensified challenges in commercializing technology of this kind as upstream entrants into distinct established value chains. In this paper, we build on Freeman’s concept of technological innovation as a technological and market matching process to develop a new model of the variables influencing value creation by advanced materials ventures. We then demonstrate the model using evidence from a sample of 10 US advanced materials ventures, including an in-depth case study exemplar. From the literature, our model, and our case study observation, we construct four propositions concerning the success of advanced materials ventures in commercializing radical technology

Wielding scissors skilfully: The matching process of advanced materials ventures

This paper examines the industrial incentives for commercialising advanced materials and, in particular, nanomaterials with reference to issues raised in the technology strategy and technology entrepreneurship literature. We draw on longitudinal empirical data to show that smaller and newer firms are playing an increasing role in the commercialisation of advanced materials innovations. However, new technology based firms face substantial barriers to commercialisation, including access to the complementary assets of large firms and institutions. To illustrate these challenges, we examine a case study of a start-up firm commercialising carbon nanotubes. Through use of an open systems model, we characterize their alliances and interactions in attempting to commercialise their products in several markets. This analysis illustrates the daunting challenges facing start-up firms as they attempt to commercialise advanced materials innovations. The most difficult challenge appears to be one of prioritisation of development objectives and, subsequently, of alliance building. Proposed policy recommendations focus on supporting the entrepreneurial process of matching technology resources and alliance-building with market opportunities

Challenges facing new firms commercialising nanomaterials

This paper examines the industrial incentives for commercialising advanced materials and, in particular, nanomaterials with reference to issues raised in the technology strategy and technology entrepreneurship literature. We draw on longitudinal empirical data to show that smaller and newer firms are playing an increasing role in the commercialisation of advanced materials innovations. However, new technology based firms face substantial barriers to commercialisation, including access to the complementary assets of large firms and institutions. To illustrate these challenges, we examine a case study of a start-up firm commercialising carbon nanotubes. Through use of an open systems model, we characterize their alliances and interactions in attempting to commercialise their products in several markets. This analysis illustrates the daunting challenges facing start-up firms as they attempt to commercialise advanced materials innovations. The most difficult challenge appears to be one of prioritisation of development objectives and, subsequently, of alliance building. Proposed policy recommendations focus on supporting the entrepreneurial process of matching technology resources and alliance-building with market opportunities

Knowledge Diversity in the Emerging Global Bio-Nano Sector

As scientists are able to understand and manipulate ever smaller scales of matter, research in the fields of biotechnology and nanotechnology has converged to enable such radical innovations as lab-on-a-chip devices, targeted drug delivery, and other forms of minimally invasive therapy and diagnostics. This paper provides a descriptive overview of the emerging bio-nano sector, identifying what types of firms are entering, from what knowledge base, where they are located, and their strategic choices in terms of technological diversity and R&D strategy. The firms engaged in bio-nano research and development span the range from start-up firm to multinational pharmaceutical, biotech, chemical, and electronics firms: two thirds of bio-nano firms are relatively young and relatively small. The United States dominates this sector, with more than half of all bio-nano firms located in the USA. Even within this sector which epitomizes the convergence of technology, there is a broad range of technological diversity, with the most diverse firms overall coming from a base in electronics, the most diverse start-up firms coming from a base in nanomaterials, and the most narrowly focused firms coming from a biotechnology/pharmaceutical base. We find that hybridization has been the dominant knowledge diversity strategy, with 93% of the bio-nano firms with nano-patents holding multiclass patents

Impact of Regional Systems of Innovation on the Formation of University Spin-Offs by Biomedical Star Scientists

Scientists in research universities can play a formative role in commercialising their inventions for the benefit of society. University spin-off formation is increasing in importance as an alternative to licensing, and can be impacted by both micro and macro-level factors of the regional system of innovation. However, there is limited understanding of the ways in which these factors can interact to enable the formation of university spin-offs. In this study we examine how the productivity of two biomedical star scientists in co-founding university spin-offs can be supported or constrained by other elements of the regional system of innovation. Recommendations are made for research universities seeking to foster entrepreneurship through university spin-off formation. Scientists in research universities can play a formative role in commercialising their inventions for the benefit of society. University spin-off formation is increasing in importance as an alternative to licensing, and can be impacted by both micro and macro-level factors of the regional system of innovation. However, there is limited understanding of the ways in which these factors can interact to enable the formation of university spin-offs. In this study we examine how the productivity of two biomedical star scientists in co-founding university spin-offs can be supported or constrained by other elements of the regional system of innovation. Recommendations are made for research universities seeking to foster entrepreneurship through university spin-off formation. &nbsp

The Emergence of the Nanobiotechnology Industry

The confluence of nanotechnology and biotechnology provides significant commercial opportunities. By identifying, classifying and tracking firms with capabilities in both biotechnology and nanotechnology over time, we analyze the emergence and evolution of the global nanobiotechnology industry. &nbsp

Radical Innovation from the Confluence of Technologies: Innovation Management Strategies for the Emerging Nanobiotechnology Industry

We investigate how the confluence of technologies can lead to radical innovation, thus creating opportunities at the firm and industry levels. To do so, we conduct a detailed examination of the development of the transistor and of two nanobiotechnology drugs – Doxil® and Zevalin® – from an innovation management perspective. We argue that three innovation management strategies are central to the development of radical innovation from the confluence of technologies, namely: importing ideas from broad networks, creating environments which allow for deep collaboration, and technology-market matching

Embracing Uncertainty: Value Creation by Advanced Materials Ventures

How do advanced materials ventures overcome the daunting commercialization challenges of the sector: high technology and market uncertainty over long time frames, and the need for significant complementary assets and substantial financing? Does uncertainty enhance or obstruct value creation? To address these questions, this paper draws on research on value creation, technology commercialization, and, more specifically, advanced materials commercialization, and presents new evidence from a sample of 43 advanced materials ventures. The sample ventures are compared and analyzed to elucidate risk reduction and value creation strategies. The sample is subdivided into nanomaterials, performance materials, and fuel cell ventures through a hierarchical cluster analysis, and subgroup commercialization metrics are described and compared. We argue that embracing uncertainty enhances value creation for nanomaterials and performance materials ventures but diminishes value creation for fuel cell ventures. High value creators in our sample lend further support to this argument through their commercialization strategies: reduction of uncertainty by fuel cell ventures, and embracing uncertainty by nanomaterials ventures. All of the successful advanced materials ventures commercialize radical technologies, emphasize strategic alliances, and begin demonstrating value with near-term, substitution applications

Swimming across the stream - developing a generation of boundary-spanning faculty for innovation and entrepreneurship

Abstract only. Recent work in university-anchored innovation and entrepreneurship capacity building has emphasized the importance of "boundary spanners" - people who can span the boundary between the conventional world of university research, and innovation and entrepreneurship. Of particular import are boundary-spanning faculty, who link organically to the world of academic research, while contributing to and be embedded in innovation and entrepreneurship ecosystems. In this talk, we will share insights into effective capacity building to encourage and develop faculty boundary-spanners, including moving away from conventional numerical metrics to measures, qualitative and quantitative, that more effectively capture both the nature and extent of faculty contributions, in support of their responsibilities to the university, and forming a basis for tenure and promotion. In particular, we will highlight that these metrics are important not only within universities for renewal and tenure, but to granting agencies as well, since grant-raising is an essential responsibility of faculty, and an important element in tenure and promotion considerations. We will share several representative examples during the talk