COMMERCIALISATION OF DEFENCE INTELLECTUAL PROPERTY: LESSONS FROM ISRAEL
Dr. Peter. W Beven
Craig Amundsen – Lockheed Martin
Michael McCallum – QinetiQ Australia
Commercialisation – what is it??
Research commercialisation
Technology transfer
commercialisation
New Product Development
The process of delivering value from intellectual property covering the cycle from
idea through to the market
?
A broader concept of commercialisation
Basic Research
(Discovery)
Applied Research
Technological Development
Product development Launch
IndustryResearch Institutions
&Government
Collaborations
Total Investment in R&D ($US PPP)
United States China Australia Israel
1990 152.38 B 7.4 B 3.8 B 1.73 B
2010 409.60 B 177.5 B 20.47 B 8.64 B
Growth 268% 2398% 538% 499%
Source: OECD 2014
BUT... we need to get real!
Australia Germany France South Korea India Singapore UK Ireland Japan Canada Israel China0
10
20
30
40
50
60
70
80
90
100
52 2 3 3 4 5 5 6
48
63
95
Non-US Companies Listed on NASDAQ
As of May 2009.
Only since 2009
Total Investment in R&D ($US PPP)Australia Israel
1990 3.8 B 1.73 B
2010 20.47 B 8.64 B
Growth 538% 499%
VC $ $ 132.4 M (AUD)
$ 796 (USD)
RESEARCH ACTIVITY•DMO•Universities•Ros• Industry
INTERNAL•DMO•Defence• industry
ACQUISITION•DMO• Industry
SUSTAINMENT•DMO• Industry
DISPOSAL•DMO•Defence • Industry
Defence IP creation environments.. Don't just think research..
3-5% 95%
OEM
Defence
Acquisition Contract
Background IP
Foreground IP
Third Party IP
Sustainment Contract
Defence
Background IP
Foreground IP
Third Party IP
Sustainment Contractor
Defence IP creation environments.. Don't just think research..
Res
earc
h (T
P)
Dis
posa
l (D
efen
ce +
TP
)
Lessons in Defence Commercialisation from Israeli firms
Observation.. Resulted in...
Recognition that Technical excellence in defence environment does not translate to market success in civilian markets
need to invest in commercial/market capability development of people
Focus on technical excellence for Defence market not needed (to same level) in civilian markets
Creates new market opportunities not previously envisaged but need to move fast..
Defence only focus – increases greater firm failure risk for SMEs
Creation of government support programs for market diversification-Policy-$ (for whole innovation path)-Incentives- Technology transfer
Observation.. Resulted in...
Strong collaborations between defence acquisition -research- industry
• Delineation between classified and non-classified IP for exploitation into civilian markets•Proactive commercialisation support programs• Link to commercialisation expertise outside of Defence sector (civilian focus)
Strong IP management environment Effective management of IP created in defence research and acquisition
Derived from: Interdisciplinary Centre for Technological Analysis and Forecasting (Tel Aviv) supported by Israel Ministry of Defense
Lessons in Defence Commercialisation from Israeli firms
Take-away thoughts..
Israel programs to support Defence commercialisation similar in nature to US programs under Invent America Act for defence commercialisation for SMEs through technology transfer intermediaries.
Aust. Defence is an IP rich environment where commercialisation is supported by policy and general willingness but NOT actively supported by the organisation – enormous missed value for both Defence and Industry!!
US – Federal Agency Network
In recognising that traditional academic based technology transfer companies are (largely) are ineffective…
“Building A New Model for Transfer of Federal Technologies to the Marketplace”
• Patent License Agreements (PLAs)• Cooperative Research & Development Agreements (CRADA’s)• Trust Fund Cooperative Agreements (TFCA)• Reimbursable Cooperative Agreements (RCA)• Non-Assistance Cooperative Agreements (NCA)• Agreements with other Federal Agencies (Interagency Agreements)• Educational Partnership Agreements (EPA)• Enhanced Use Lease Authority (EUL)
• Exclusive Australian access agreement for direct access by Australian Defence industry firms to US DoD 120 Research Labs on same basis as US domiciled SMEs (to be launched October 2014)
Industry Project Engagements:• Project consulting by MBAs• Venture Planning projects
Australian Defence Organisations
Technology Challenges (link to 120 DoD Labs)
Access to some 40,000 Defense patents for commercialisation
Key question for industry
How can their firms best access IP to exploit for the benefit of both Defence, their organisation and local SME
suppliers
Michael McCallum – QinetiQ Aust.
Craig Amundsen – Lockheed Martin
THANK YOU
Contact: Dr Peter Beven
www.strategicip.com.au