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Collaborative Commercialization©
A Diaspora-based Model for Sustainable Economic
Development
By Marsha [email protected]
October 2006
Traditional Product Commercialization
Traditional Product Commercialization
Major co from a G7 country develops intellectual property associated with Products
G7 co either synthesizes materials for products or sources raw materials from EM
G7 co captures value adds from manufacturing through product commercialization
Some finished product is donated/sold to EM, but funding is always an issue
Major co from a G7 country develops intellectual property associated with Products
G7 co either synthesizes materials for products or sources raw materials from EM
G7 co captures value adds from manufacturing through product commercialization
Some finished product is donated/sold to EM, but funding is always an issue
Donated &/or Sold to Emerging Market (EM)
Product Developed& Refined in G7
Traditional Commercialization
Value Addition
Traditional Commercialization
Value AdditionValue Addition G7 EM
Discovery, Recognition x
Intellectual Property Rights x
Regulatory Licenses x
Product Development/Refinement
x
Market Research & Planning x
Manufacturing/Processing x x
Global Sales & Distribution x x
Multi-national Operations x x
Corporate Ownership x
Traditional Commercialization Systemic Problems
Traditional Commercialization Systemic Problems
EM does not develop economic strength to buy health products
EM health needs are not met because EM cannot pay for G7 health products
Neglected diseases prevent EM economic development
Cycle of poverty continues, as do social, political & economic unrest
EM does not develop economic strength to buy health products
EM health needs are not met because EM cannot pay for G7 health products
Neglected diseases prevent EM economic development
Cycle of poverty continues, as do social, political & economic unrest
New Global Dynamics / EM New Global Dynamics / EM EM Diaspora have earned degrees from top G7 universities
EM Diaspora have attained career distinction in leadership roles at major firms
EM Diaspora are establishing new firms in their old homelands
Case Study of Silicon Valley: The New Argonauts: Regional Advantage in a Global Economy, by Saxenian
EM Diaspora have earned degrees from top G7 universities
EM Diaspora have attained career distinction in leadership roles at major firms
EM Diaspora are establishing new firms in their old homelands
Case Study of Silicon Valley: The New Argonauts: Regional Advantage in a Global Economy, by Saxenian
Communication Technology Advancements permit efficient global interaction
New Global Dynamics / G7New Global Dynamics / G7Major corporations now recognize their growth depends upon acquiring rights to innovations from smaller, more entrepreneurial firms.
Major corporations now accept a ‘Flat World,’ and rely on collaborations with entrepreneurial firms in China & India to remain competitive.
These collaborations are usually orchestrated by EM Diaspora.
Major firms recognize EM citizens as potential customers, Bottom of the Pyramid.
Major corporations now recognize their growth depends upon acquiring rights to innovations from smaller, more entrepreneurial firms.
Major corporations now accept a ‘Flat World,’ and rely on collaborations with entrepreneurial firms in China & India to remain competitive.
These collaborations are usually orchestrated by EM Diaspora.
Major firms recognize EM citizens as potential customers, Bottom of the Pyramid.
Collaborative Commercialization Product
Development
Collaborative Commercialization Product
DevelopmentEM Co Collaborates w/
G7 Co for Global Commercialization
EM Co Discovers & Develops
Product
1. Entrepreneurial EM Co: Establishes branded product, Proves up market demand, and Secures government incentives for new jobs.
2. EM Co collaborates with Major G7 firm to: Refine product for global markets; Market co-branded product; Ramp up manufacturing; and Distribute globally
1. Entrepreneurial EM Co: Establishes branded product, Proves up market demand, and Secures government incentives for new jobs.
2. EM Co collaborates with Major G7 firm to: Refine product for global markets; Market co-branded product; Ramp up manufacturing; and Distribute globally
DiasporaAssistance
Collaborative Commercialization
Value Addition
Collaborative Commercialization
Value AdditionValue Addition G7 EM
Discovery, Prospect Identification x
Intellectual Property Rights, x
Regulatory Licenses x x
Product Development/Refinement x x
Market Research & Planning x x
Manufacturing/Processing x x
Global Sales & Distribution x x
Multi-national Operations x x
Corporate Ownership x x
Collaborative Commercialization Resolves
Systemic Problems
Collaborative Commercialization Resolves
Systemic Problems EM develop economic strength to buy own health products
Health needs of EM are addressed because they can make and pay for appropriate health products
EM SMEs gain access to larger corp growth resources
Improved health promotes EM economic development
Cycle of poverty is broken through self sufficiency
Empowerment leads to social, political & economic stability
EM develop economic strength to buy own health products
Health needs of EM are addressed because they can make and pay for appropriate health products
EM SMEs gain access to larger corp growth resources
Improved health promotes EM economic development
Cycle of poverty is broken through self sufficiency
Empowerment leads to social, political & economic stability
The EM Opportunity …The EM Opportunity …Current EM Innovation Pipeline:
University Innovation CentersPublic Research CentersBusiness Incubation CentersPrivate EnterpriseIntellectual Property AttorneysSeed Stage Venture Funds Licensing AgentsDevelopment FundsDevelopment AgenciesNGOs & Civic OrganizationsProfessional Associations
Current EM Innovation Pipeline:
University Innovation CentersPublic Research CentersBusiness Incubation CentersPrivate EnterpriseIntellectual Property AttorneysSeed Stage Venture Funds Licensing AgentsDevelopment FundsDevelopment AgenciesNGOs & Civic OrganizationsProfessional Associations
DiasporaAssistance
Research
Trials
Commercialization
Expansion
M&A
IPO
Tim
e
Funding Constriction Point
Funding SourcesProduct Development Stage •Universities
•R&D Centers•NGOs•Founder, Friends & Family
•VC •Corporate Contracts•Private Equity•Banks•Public Markets
The Problem: Product Commercialization
Funding
The Problem: Product Commercialization
Funding
The Answer: Diaspora Bridge Gap to Venture
Capital
The Answer: Diaspora Bridge Gap to Venture
Capital
Venture Capital backed successful, Diaspora-led Product Commercializations Case Studies: Financial Systems, Corporate Investment in Innovation and Venture Capital by Bartzokas and Mani, 2004
Ex: India ITC companies
DiasporaAssistance
The Need: A Hub that Sustainably Links Commercialization Resources
The Need: A Hub that Sustainably Links Commercialization Resources
EM InnovationSystems
DevelopmentAgencies
IndustryLeaders
Global Health NGOs
Venture Capital Funds
Product
Commercialization
Entity
DiasporaAssistance
The Sustainable SolutionProduct Commercialization
Portfolios
The Sustainable SolutionProduct Commercialization
PortfoliosG7 Investor &
Industry Resources
Foundations
Venture Funds
Merchant Banks
Investment Banks
Multilateral Agencies
Industry Associations
Social Investor Groups
Development Agencies
EM Innovation & Enterprise Resources
Innovation Centers
Research Centers
Incubation Centers
Intellectual Property Attorneys
Seed Funds
Development Funds
Development Agencies
NGOs & Civic Organizations
Diaspora-Led Product
CommercializationPortfolio Program
In-Licensing Out-LicensingManufacturing
Sales/Distribution Development Partnering
CollaborativeCommercialization
Entity
Collaborative Commercialization Entity;
The Bridge to Private Sector Expertise…
Collaborative Commercialization Entity;
The Bridge to Private Sector Expertise…
Administers Product Commercialization ProgramBusiness Administration: Fiscal oversight, Metrics,
Reports, Communications, CompensationFunding Sources:
Initially NGOs & Govt Loan/Grant Funding Then Profit Sharing Revenues
Incents Private Sector with Risk Reduction strategies:Supplements Product Development CostsProvides Experts to Launch & Market Products Negotiates Corporate Revenue Sharing Contracts
Deploys Private Sector Expertise: Interfaces with Diaspora, Industry and Funding
NetworksFunds cross-functional Team of Experts to assist
Portfolio CosConducts EM SME Management Training Boot Camps
Administers Product Commercialization ProgramBusiness Administration: Fiscal oversight, Metrics,
Reports, Communications, CompensationFunding Sources:
Initially NGOs & Govt Loan/Grant Funding Then Profit Sharing Revenues
Incents Private Sector with Risk Reduction strategies:Supplements Product Development CostsProvides Experts to Launch & Market Products Negotiates Corporate Revenue Sharing Contracts
Deploys Private Sector Expertise: Interfaces with Diaspora, Industry and Funding
NetworksFunds cross-functional Team of Experts to assist
Portfolio CosConducts EM SME Management Training Boot Camps
Product Commercialization Portfolio (PCP) Program Structure
Administrative Assistant Financial Analyst
Regional PCP Manager(s)Identify & Screen Innovations
Support SME MangementRegional Investor & Industry Relations
Global PCP Executive Director(s)Global Product Portfolio Balancing
Investment Structure & SyndicationG7 Investor & Industry Agrmnts
PCP Support TeamsMarket Research, Intellectual Prop.Design Engrg, Sales & Marketing
Corp Law
PCP Diaspora TeamConnects Regional Entrep with Diaspora
Ethnic Professionals RelationsConducts Networking Events
PCP BootCampsMngmt Trng: Biz Dev, Prod Dev,
Fair TradeInvestor Relations, Corp Law, CSR
PC Executive BoardBroad Spectrum of Sr Intl ExpertsNetwork with Multi-lateral Funders,
Industry Partners & Private Investors
Product Commercialization NFP CorpAdministers Funding, becomes Self-supporting entity
Hires & Manages Commerce ExpertsConsumates Commerce Agreements
NFP &/or Govt FunderGrants Initial Funding
Holds PCP Accountable for MetricsBrand Lends Credibility & Visibility
Diaspora
Diaspora
Diaspora
How to get StartedPublic Sector & NGOs…
How to get StartedPublic Sector & NGOs…
These Development Sponsors:
•Foundations•Multilateral Agencies•Development Agencies
Provide Initial Grants & Loans to
Establish Collaborative
Commercialization Entity
To Establish & Manage Product
Commercialization Portfolio Program
In-Licensing Out-LicensingManufacturing
Sales/Distribution Development Partnering
DiasporaAssistance
How to get StartedPrivate Sector…
How to get StartedPrivate Sector…
Collaborative Commercialization Entity Taps these Private Sector Resources: •Ethnic Professional Associations (TIE)•Venture Capital Industry•Socially Responsible Corps•Industry Biz Dev Depts
For Experts in: •Intellectual Property Rights•Corp Contract Negotiations•Product Design Refinement•Market Research•Industry Networking•Product Launch•Business management•Market Access
To Commercialize Indigenous Products:
•Manufacturing•Major Sales Contracts•Global Distribution•Additional Product Line Extensions•Sales Revenues
In-Licensing Out-LicensingManufacturing
Sales/Distribution Development Partnering
DiasporaAssistance
Commercialization Example BioResources International,
Inc.
Commercialization Example BioResources International,
Inc.BRIBRI
Diaspora Management Team, Americans from Ghana, Ivy-league advanced degrees in Science & Business
Co adds value to plant-based health products grown in Africa
Developing low-cost pediatric anti-Malarial drug
Needs $5M loan for an extraction facility & product launch
Diaspora Management Team, Americans from Ghana, Ivy-league advanced degrees in Science & Business
Co adds value to plant-based health products grown in Africa
Developing low-cost pediatric anti-Malarial drug
Needs $5M loan for an extraction facility & product launch
Collaborative Commercialization, The Diaspora-based
Solution…Indigenous Innovations
+Development Funding
+Commercialization Resources
=Sustainable Economic Development