Research Commercialisation - ITEK - The Commercialisation Company of the University of South Australia
Research Commercialisation
ITEK’s Role in Commercialisation
ITEK acts on behalf of the University of South Australia in commercialising Intellectual Property (IP) via Licensing Agreements, Joint Ventures or Spin-out companies. It is important to note that ITEK may also decline to invest in an idea or IP if it feels it cannot obtain a successful commercial outcome. However, even in this instance ITEK will provide general advice and assistance to the researcher/inventor should they choose to bring the technology to market via some other means.
ITEK collaborates with the researcher to focus on finding the most appropriate and viable means of bringing new research to market based on the status of the technology, the strength of its Intellectual Property (IP), the potential target market, market window (timeline), competition and industry/partner interest.
Most research requires additional support, funding, business, legal and financial experience to successfully develop and bring to market. ITEK utilises a commercialisation process geared towards readying the technology for market entry as each stage of the process is passed.
Terminology used in Commercialisation Process
There are no hard and fast rules of when to consider one approach over the other. However here are some good guidelines adopted from Spruson & Ferguson that should be considered:
Spin Out
A Spin-out or Start-up is a proprietary limited company created to further develop, market and sell products or services incorporating the protected IP. Typically the IP is exclusively licensed or assigned into the newly formed company by the University or inventor in return for an equity stake. ITEK holds this equity on behalf of the University.
Forming successful spin-out companies can take considerable effort, personal commitment and funding. This in turn must be supported by a range of business skills, particularly commercial management and financial expertise.
Note that a Start-up company may not be the most suitable vehicle for bringing certain types of research or IP to market.
You may opt for a Spin-out if:
- The technology is disruptive and not understood by incumbents
- There is no established industry to license to, or the market segment needs to be created
- Technology is likely to attract a high valuation from private equity investors
- The IP is “know how” or “show how” making it difficult to license
- The spin-out could be trading positively in a short timeframe
- An exit opportunity with appropriate capital gain could arise in the medium term
- Entrepreneurial researchers keen to pursue a spin-out route