Report of the MTCP-MTDC Technology Commercialisation ... of the MTCP.pdf · Report of the MTCP-MTDC...

Report of the MTCP-MTDC Technology Commercialisation Workshop for

Practitioners from African Countries held from 23rd

– 27th

June, 2014 in Malaysia Page 1 of 42

Report of the MTCP-MTDC Technology Commercialisation Workshop for Practitioners

from African Countries held from 23rd

– 27th

June, 2014 in Malaysia

By Prof. D. K. Isutsa and Prof. S. M. Kagwanja

Deputy Vice-Chancellors - ARSA & AFPD

Chuka University, P. O. Box 109-60400, Chuka

Presented to the Council and Senate of Chuka University

P. O. Box 109-60400, Chuka

© Chuka University, 30th

June, 2014



– 27th


EXECUTIVE SUMMARY

The five-day workshop was organized by the Government of Malaysia through the Malaysian

Technology Corporation Programme (MTCP) and the Governments of the partnering five (5) African

Countries through their respective Ministries of Foreign Affairs. The objective of the workshop was to

promote, enhance and share technology and commercialisation information on intellectual property,

entrepreneurship development and funding of commercialisation activities, as well as marketing and

business validation tools both locally and abroad. A total, of 29 participants from Sudan, Kenya, Uganda,

Tanzania, and South Africa attended.

The Training was conducted by the Malaysian Technology Development Corporation (MTDC). The

MTDC is a company wholly owned by the Government of Malaysia and is in the business of Grant

Management, Advisory and Nurturing Services. The Company was set up by the Government of

Malaysia in 1992 to spearhead the development of technology business in Malaysia. Its role is to promote

the commercialization of local research and invest in technology-based ventures, as well as to groom new

generation of Technopreneurs through comprehensive nurturing services.

Since the 7th Malaysian Plan (MP), MTDC has also been entrusted by the Government to manage grants

specific for Malaysian companies to increase their technology content via commercialization of local

research and development and/or acquisition of foreign technology. The grants are:

1. Technology Acquisition Fund (TAF)

2. Commercial Research and Development Fund (CRDF)

3. Business Start-up Fund (BSF)

4. Business Growth Fund (BGF)

The MTDC also manages Technology Centres, which focus on various industry clusters and are located at

several universities and research institutes. The five Technology Centres/Parks are:

1. UPM-MTDC Technology Centre: Focuses on Biotechnology & ICT

2. UKM-MTDC Technology Centre: Focuses on Biotechnology

3. UTM-MTDC Technology Centre: Focuses on Life Sciences & Advances in Engineering

4. FRIM-MTDC Technology Centre: Focuses on Life Sciences & Herbal Products

5. UiTM-MTDC Technology Centre: Focuses on Industrial Products, Art & Design

These centres enable academia and industry to collaborate and synergise (leverage on each other‟s

strengths), whilst accelerating commercialization activities. The achievements of these Technology

Centres are evidenced by the:

1. Creation of job opportunities for knowledge-based workers

2. Increased penetration of Malaysian-made products to overseas market

3. Facilitation and creation of Intellectual Property and its successful commercialization

The topics in the workshop involved:

1. Presentation of national policies and strategies in the MTDC‟s 20-year experience in

commercialization of local research outputs through start-ups and the development of Small and

Medium Enterprises (SMEs).

2. Sharing of knowledge from the most successful strategies in incubation and incubator

management, developing and nurturing start-ups and spin-off companies.

3. Sharing of knowledge on smart networks between MTDC and collaborating Universities,

Institutes, Agencies responsible for developing technology commercialization and SMEs in

targeted countries.

4. Presentation on opening and extending of bilateral market access of strategic technologies

between MTDC‟s recipient companies and collaborating countries.



– 27th


The titles and presenters of the workshop were: 1. Business Modeling and Customer Segmentation (by En Noor Amal)

2. Funding for Tech Commercialisation (by En Mohammad Hazani Hassan)

3. IP Commercialisation from the Universities (by Prof Rohazar Wati Zualcobley)

4. Entrepreneurship Development Locally and Globally (by Pn Norhayati Md Taib)

5. The Process of Market Validation (by En Azmi Said)

6. Technology Commercialisation Process & Leveraging of IP (by Dr Fatimah Amin)

7. Scopes of Investment Due Diligence (by En Noor Amal)

8. MTDC‟s 20 yr Experience in Commercialisation (by Pn Mariamah Hj Daud)

9. Technology Transfer – the FRIM Experience (by En Mohd Shahidan Arshad)

10. Incubation – Experience Sharing by Tenant (by En Ramdan Parman)

11. Symbiosis Graduate Entrepreneurship Programme (by En Mair Nasser Zainal Abidin)

12. Symbiosis Entrepreneur Experience (by Dr Khairul Bahrin)

13. Commercial R&D Fund (CRDF) – (En Imran Ariff Ibrahim)

14. Business Growth Fund (BGF) & Business Startup Fund (BSF)–(En Idjarmizuan Ibrahim)

CONCLUSION

It became evident and apparent from the workshop that the secret behind the success of the Malaysian

technology commercialization and industrialization model is extensive inculcation of this culture,

funding, organizational structure, attention to detail, training, mobilization, collaboration, teamwork,

coordination, synergism, integration, resilience, brilliance, and commitment of staff and government at

each and every level, department, centre and unit to enhance focusing and achievement of expected and

profitable results. Success is also helped by the mix of passion, dedication, knowledge, technology,

innovation, conviction, support, investment and nurturing. Consequently, Malysia has industrialized by

moving from agriculture-led economy through resource-led economy to knowledge-led economy.

RECOMMENDATIONS

Chuka University and the Government of Kenya should seriously borrow lessons and strategies from the

Malaysian model and implement the same to actualize their Visions and Plans.

1. Drive to technology commercialization has to start with a Government call to action and then

cascade the action to selected universities, research institutes, industrial and economic players

that will receive and have intensive support, funding and management structures.

2. The Government to:

(1) Prepare a roadmap/policy for implementation of the Science and Technology Training

Strategy in the Vision 2030 and disseminate it to universities and industries in the country.

(2) Establish Kenya Technology Development Corporation (KTDC) and place it under the

Ministry of Foreign Affairs & Trade to emulate the Malaysian Technology Development

Corporation (MTDC); or mandate NACOSTI to do.

(3) Establish or help establish Research & Technology Parks in Public Universities and Institutes

by availing funds.

(4) Assist Chuka University to establish the proposed Research & Technology Park.

(5) Link Research & Technology Parks (sources of technology) to the KTDC that will

manage/source funds & avail expert consultants & advisory services.

3. KTDC to:

(1) Vigorously link research & technoparks to industries & companies to uptake technology.

(2) Diversify fund types to include:

(a) Science Fund (SF) for basic & applied research;

(b) Technology Fund/Innovation Fund (TF/IF) for prototype development;



– 27th


(c) Technology Acquisition Fund/Commercial Research Fund (TAF/CRF) for

incubation/growth stages;

(d) Business Start-Up Fund (BSF)/Business Growth Fund (BGF) for commercial value

realization;

(e) Business Expansion Fund (BEF) for going International.

(3) Develop policies to govern everything it will be undertaking in support of technology

commercialization.

(4) Inculcate the culture of Technology Commercialisation in Government and Universities.

(5) Train researchers in entrepreneurship and Business Plan making.

(6) Nurture and mentor researchers in universities in technology commercialization.

(7) Recruit young graduates to nurture and mentor them into technology entrepreneurs

(technopreneurs).

(8) Establish graduate symbiosis programmes in Research and Technology Parks.

(9) Assist Chuka University to operationalize the Science & Technology Research Park.

4. The Chuka University Research & Technology Park to establish:

(1) Research Management Centre (for acquisition & maintenance of research facilities-

equipment, laboratories, workshops, garages).

(2) Technology Transfer Office (TTO)/Centre for Collaborative Innovation (CCI).

(3) Technology Transfer Company for commercialization of research outputs/services.

(4) Management of Intellectual Property Rights (IPR) in the TTO.

(5) Technology/Proposal Commercialization:

(a) Evaluation Committee

(b) Technical Committee

(c) Approval Committee

(6) Recruit suitably qualified and synergized/diversified staff for the Research & Technology

Park (artists, scientists, IPR lawyers, strategists, business planners/promoters, marketers).

(7) Develop attractive IPR proceeds sharing Policy.

(8) Customise KTDC policies to operationalise the Research & Technology Park.

(9) Inculcate the culture of Technology Commercialisation in the Universities through

intensive sensitization, awareness creation and provision of incentives.

(10) Identify and select technologies to be conducted in the Research & Technology Park:

(1) Pharmaceuticals

(2) Natural Products/Herbal medicine

(3) Clinical diagnostic kits

(4) Biotechnological products

(5) Environmental monitoring tools

(6) Water and sanitation treatment

(7) Mineralogy and Petrology

(8) Agro-food and agro-feed processing

(9) Building materials/fine art designs

(10) Industrial electronics/instruments/designs

(11) Development of pests management tools

(12) Renewable/clean energy

(13) Information and Communication Technology

(14) Production fabrication of new materials

(15) Telecommunications and mobile technology

(16) Meteorology and weather forecasting



– 27th


DESCRIPTIONS

Petronas SkyBridge: Twin Towers built to commemorate the petroleum industry.

Foreign Ministry (Wisma Putra): Host of MTCP & MTDC.

Putrajaya: Administrative City with Government offices & Government workers residences.

Cyberjaya: Technology City/Malaysian Super Corridor (MSC) 50 kmx15 km international companies.

UKM-MTDC Incubation Centre: National University of Malaysia focusing on Biotechnology & ICT.

FRIM-MTDC Incubation Centre: Forest Research Institute of Malaysia for Biotech & Herbal Tech.

Spin-off Company: local Public and Private University/Government Research Institution ownership.

Start-up Company: A newly set up SME specifically for commercialization of a specific project.

Commercialization: Provides return to public investment in research; turns R&D&I into profits.

Entrepreneurship: turning ideas into wealth.

Innovation = technology + entrepreneurship; Innovation = f (creativity, implementation).

Innovation = successful implementation of creative ideas through addition of highest value.

Creativity = novel and useful ideas production by an individual or small group of individuals teaming up.

Implementation = methods used to put the creative ideas into practice.

Technology commercialization = process of transforming an idea or scientific discovery into new or

improved product, process or service.

Technology = improvements in product, process, marketing or organization.

ACRONYMS

BEF: Business Expansion Fund

CEO: Chief Executive Officer

CSR: Corporate Social Responsibility

CTT: Cell Tissues Technology

FRIM: Forest Research Institute of Malaysia

GITS: Government-Industry Technology Services

GRI: Government Research Institute

IP: Intellectual Property

KLIA: Kuala Lumpur International Airport

MIDA: Malysian Industrial Development Authority

MYIPO: Malysian Intellectual Property Office

NACOSTI: National Commission for Science, Technology & Innovation

PPU: Public & Private University

R&D: Research and Development

RM: Malaysian Ringgit (currency), RM3.2:USD1

SSC: South-South Cooperation

TCDC: Technical Cooperation among Developing Countries

TTC: Technology Transfer Company

TTO: Technology Transfer Office/Centre for Collaborative Innovation

UKM: National University of Malaysian (Universiti Kebangsaan Malaysia)

UPM: Agricultural University of Malaysia

UTM: Technology University of Malaysia

UiTM: Technology University of Mara

VC: Venture Capital

ACKNOWLEDGEMENT:

All the information used to compile this report belongs to the original authors and sources that have been

cited under each chapter and item, as appropriate.



– 27th


1. INTRODUCTION

The workshop was organized by the Government of Malaysia through the Malaysian Technology Corporation

Programme and the Governments of the participating five (5) African Countries through their respective Ministries

of Foreign Affairs. The training was conducted by the Malaysian Technology Development Corporation.

1.1. MTCP Overview

The Malaysian Technical Cooperation Programme (MTCP) was first initiated at the First Commonwealth Heads of

Government Meeting (CHOGM) for Asia Pacific Region in Sydney in February 1978. It was officially launched on

7th

September 1980 at the Commonwealth Heads of State Meeting in New Delhi to signify Malaysia‟s commitment

to South-South Cooperation, in particular Technical Cooperation among Developing Countries (TCDC).

In line with the spirit of South-South Cooperation (SSC), Malaysia through the MTCP shares its development

experiences and expertise with other developing countries. The MTCP was first formulated based on the belief that

the development of a country depends on the quality of its human resources. The programme forms part of the

commitment of the Malaysian Government towards the promotion of technical cooperation among developing

countries, strengthening bilateral cooperation, & nurturing collective self-reliance, among developing countries.

In a move to further enable MTCP to spread its wings widely, the Malaysian Government decided to place the

MTCP under the jurisdiction of the Ministry of Foreign Affairs from 1st January, 2010 to provide the synergy and

support it required in line with the Malaysia‟s Foreign Policy. As the focal point for the MTCP, Wisma Putra is

responsible for formulating policies, funding, coordination, monitoring and evaluation of the MTCP Programmes.

The MTCP emphasises the development of human resources through the provision of training in various areas

which are essential for a country‟s development such as public administration, good governance, health services,

education, sustainable development, agriculture, poverty alleviation, investment promotion, ICT and banking. More

than 100 short-term specialized courses are offered by more than 50 MTCP training institutions, many of which are

Centres of Excellence for training. Since its launching, more than 25,000 participants from 140 countries have

benefited from the various programmes offered under the MTCP.

Objectives of MTCP:

To share development experience with other countries;

To strengthen bilateral relations between Malaysia and other developing countries;

To promote South-South Cooperation (SSC);

To promote Technical Cooperation among Developing Countries (TCDC).

Types of Assistance:

Short-term specialised courses -Long-term courses (Scholarships)

Study visits and attachments -Services of experts

Socio-economic development projects -Supply of equipment and materials

For more details, kindly refer MTCP Official Portal at http://mtcp.kln.gov.my.

1.2. MTDC Overview

The MTDC is a company wholly owned by Malaysia and is in the business of Grant Management, Advisory and

Nurturing Services. MTDC has achieved the ISO 9001:2008 accreditation and is a member of the National Business

Incubation Association (NBIA) since 2007. The company was established in 1992 to promote the adoption of

technologies by local companies via commercialisation activities of local inventions or acquisition of foreign

technologies. MTDC has been the key player in commercialisation and managing of Government funds since the 7th

Malaysia Plan and it also has a well-established reputation as the key player in Malaysia in the promotion of

technology-based companies. Under the 10th

Malaysia Plan, the role of MTDC had been expanded to create an

effective ecosystem for commercialisation of homegrown technologies – to groom a new generation of

Technopreneurs through comprehensive nurturing services that support them all the way from laboratory ideas to

full commercialisation. The right mix of dedication, knowledge, technology, innovation, conviction, support,

investments and nurturing makes MTDC THE COMPLETE EQUATION - creating value and accelerating

economic growth for the Nation.



– 27th


Vision: To be the leading integrated commercialisation solutions provider building world class Malaysian

technology companies through strategic partnerships.

Mission: To create, nurture and promote technology companies in strategic thrust areas. To promote high

performance culture through employee capacity building maximising stakeholders‟ returns.

1.2.1 MTDC Grant Management Since the 7

th Malaysian Plan, MTDC has also been entrusted by the Government to manage grants specific for

Malaysian companies to increase their technology content via commercialization of local research and development

and/or acquisition of foreign technology. Through the Technology Development Programme established since the

7th

Malaysia Plan, the Government had entrusted MTDC with the management of two grants. These grants provide

support to local companies, helping them to enhance technology content, increase capacity, capability and

competitiveness. The grants have increased to five: TAF, CRDF, BSF, BGF, and BEF.

(a) Technology Acquisition Fund (TAF) This Fund was established to facilitate the acquisition of strategic, proven foreign technology for immediate

implementation into existing business. The Fund provides the right support to Malaysian companies, enabling them

to enhance their technology level and production processes through the acquisition of new technologies. TAF List of

Approved Companies: since 2008, 27 companies have been approved.

(b) Commercial R&D Fund (CRDF) The CRDF provides added stimuli for the right innovation among Malaysian-owned companies, by providing partial

grants to qualified R&D projects. These grants will enable full commercialization of home-grown R&D, developed

by local universities/research institutions or the private sector. CRDF is for the funding of commercialisation

activities of locally developed technologies undertaken by Malaysian owned company. The technologies can be

those developed by the public sector or they can also be the output of in-house research and development (R&D)

activities by the companies.

CRDF 1 is a grant for the commercialisation of R&D output from public and private University (PPU) / Government

Research Institute (GRI) by a Spin-Off company ("Syarikat Terbitan University, STU"). Project duration is 2 years

(Implementation and Monitoring). Under this fund, the STU is required to operate their business from any

recognised Technology Centers locally. The company is also required to focus their commercialisation activities on

business development while producing their product via out-sourcing mode. A spin off company is defined as a

company with local Public and Private University/Government Research Institution ownership.

CRDF 2 is a grant for the commercialisation of R&D output from Public and Private University (PPU)/Government

Research Institute (GRI) by a Start Up company. Project duration is 2 years (Implementation and Monitoring).

Under this fund, the SME is recommended to operate their business from a recognised Technology Centers. The

Company is also required to focus their commercialisation activities on business development while producing their

product via out-sourcing mode. A Start Up is defined as a newly set up Small & Medium Enterprise (SME)

established specifically as the vehicle for the commercialization activities of the specific project.

CRDF 3(a) is a grant for the commercialisation of any local R&D by SME; and CRDF 3(b) is a grant for the

commercialisation of public sector R&D by a non-SME. Project duration is 2 years (Implementation and

Monitoring). „SME' is defined as company with less thanRM25 million annual turnover or having less than150

employees; „Large company' is defined as company with more than RM25 million annual turnover and engaging

more than 150 employees; Public Listed associated companies is categorised in accordance to the structure of its

shareholders; and State agency's associated companies is categorised based on the structure of its shareholders. To

date CRDF has approved 155 companies.

(c) BSF

Business Start-up Fund (BSF) was established to fund new start-up technology-based companies. The Fund

incorporates elements of loan and equity, offering companies flexible funding via Convertible Notes (CN) and/or

Preference Shares. The objectives of BSF are to support and encourage entrepreneurship; creation of new strategic

businesses that are important and potentially scalable; and funding of supporting companies within a technology



– 27th


eco-system. Focus area is industrial technology, biotechnology, sea to space, science &technology core, information

communications & technology. To date BSF has approved 155 companies.

(d) BGF

The Business Growth Fund (BGF) focuses specifically on supporting and providing follow-on funding to successful

grant recipient companies. The fund provides hybrid grant-equity funding which acts as a transition and a bridge

from grant to venture capital (VC) financing. The financial assistant is a mix of two components – a grant portion

and an equity portion that is similarly structured but more flexible than a VC financing. The grant portion is to be

disbursed to finance the tail end of the Technology Development Phase; while the equity portion is disbursed only

upon the fulfillment of the grant milestone and upon starting of the initial phase of the business building phase. The

objectives of the fund are as follows: Accelerate the development of local high technology companies by providing

business funding to qualified grant recipient companies. Provides funding for the "last mile" of the R&D&C value

chain. Ensures that qualified grant recipients are adequately capitalised during their crucial formative years to build

a business track record. Build enough "commercial" value in the company to make companies attractive for follow-

on financing by VCs & other financing institutions. To demonstrate that grant recipients, which have received strong

market validation for their products/services, are further supported to become full-fledged commercial enterprises.

BGF is opened to all successful grant recipient companies that can demonstrate a potential for business growth. The

evaluation process of companies is initiated upon receiving the Investor Factsheet from the company. The evaluation

process involves three main phases. Initial Assessment of Investor Factsheet, Processing of Company Presentation

& Business Plan, and Approval of Process by the TC & AC. There are 15 BGF Approved Companies to date.

(e) BEF

The Bumiputera Expansion Fund (BEF) was introduced primarily to help Bumiputera business entities to expand

their operations internationally. The fund provides flexible loans without any collateral. The repayment period is 6

years starting from the second year after the loan has been disbursed. The business sectors eligible for BEF must be

technology-based and are involved in specific technology clusters such as biotechnology, green technology, oil and

gas, electrical and electronics, information and communications technology, nanotechnology and food technology.

Companies applying for BEF should emphasise business expansion in their proposal and the project proposed must

be capable of showing potential profit. Once the BEF application is approved Due-diligence exercise and Signing of

Legal Documents are executed.

For the TAF, CRDF, BSF, BGF and BEF, a company makes an application, which is evaluated and processed. Once

the applicant meets all the requirements, the Evaluation Officer compiles and prepares reports before presenting the

proposal to the fund's Technical Committee (TC) for deliberation and subsequently to the Approval Committee

(AC) for endorsement of recommendations made by the TC. The applicants may also be required to present the

proposal to the respective committees themselves. All successful and unsuccessful applicants are informed officially

after decisions are made by the Approval Committee. Guidelines for Business Plan preparation for all the types of

fundings are also availed and include:

1. Executive Summary

2. Company Profile

3. Capabilities of Company

4. Proposed Activity

5. Details of Technology Transfer

6. Collaborator

7. Description of Technology

8. Market Research and Analysis

9. Marketing Plan

10. Manufacturing and Operational Plan

11. Risk Analysis

12. Historical Financial Summary

13. Financial Projection

14. Other Information

APPENDICES

http://www.mtdc.com.my/taf-business-plan.php#executive_summary

http://www.mtdc.com.my/taf-business-plan.php#company_profile

http://www.mtdc.com.my/taf-business-plan.php#company_capabilities

http://www.mtdc.com.my/taf-business-plan.php#proposed_activity

http://www.mtdc.com.my/taf-business-plan.php#technology_transfer

http://www.mtdc.com.my/taf-business-plan.php#collaborator

http://www.mtdc.com.my/taf-business-plan.php#technology_description

http://www.mtdc.com.my/taf-business-plan.php#research_analysis

http://www.mtdc.com.my/taf-business-plan.php#marketing_plan

http://www.mtdc.com.my/taf-business-plan.php#operational_plan

http://www.mtdc.com.my/taf-business-plan.php#risk_analysis

http://www.mtdc.com.my/taf-business-plan.php#financial_summary

http://www.mtdc.com.my/taf-business-plan.php#financial_projection

http://www.mtdc.com.my/taf-business-plan.php#other



– 27th


1.2.2. MTDC Technology Centres

In addition, MTDC manages Technology Centres which focus on various industry clusters and are located at several

universities and research institutes. The Company was set up by the Government of Malaysia in 1992 to spearhead

the development of technology business in Malaysia. Its role is to promote the commercialization of local research

and invest in technology-based ventures as well as to groom new generation of Technopreneurs through

comprehensive nurturing services. MTDC Technology Centres are the business units in Malaysian Technology

Development Corporation (MTDC), which was the first entity in Malaysia to set up a university/research institute-

based technology centres in 1992. MTDC has established five technology centres, namely:

Universiti Putra

Malaysia (UPM)-

MTDC Technology

Centre

Universiti Kebang-

saan Malaysia

(UKM)-MTDC

Technology Centre

Universiti Teknologi

Malaysia (UTM)-

MTDC Technology

Centre

Forest Research

Institute Malaysia

(FRIM)-MTDC

Technology Centre

Universiti

Teknologi Mara

(UiTM)-MTDC

Technology Centre

Focuses on

Biotechnology &

ICT

Focuses on

Biotechnology

Focuses on Life

Sciences & Advances

in Engineering

Focuses on Life

Sciences & Herbal

Products

Focuses on

Industrial Products,

Art & Design

Serdang, Selangor Bangi, Selangor Skudai, Johor Kepong, Selangor Shah Alam, Selangor

3-Apr-1997 1-Dec-1998 1-Dec-2001 1-Dec-2010 1-Oct-2013

Technology Garage

Enterprise Data

Centre

Technology Garage

Enterprise

Technology Garage

Enterprise

Technology Garage

Enterprise

Office Suite

Wet Lab Dry Lab

From 540 / sq ft From 105 / sq ft From 520 / sq ft From 390 / sq ft From 600 / sq ft

From RM 2.50 From RM 2.00 From RM 1.00 From RM 1.80 From RM 2.50

UPM-MTDC TECHNOLOGY CENTRE

UPM-MTDC Technology Centre was established on November 16, 1996 and is a joint-venture project between

Universiti Putra Malaysia and MTDC. The centre opened officially on April 3, 1997. It is the first of a series of

MTDC technology incubation centres established within a university‟s campus in Malaysia and awarded

Cybercentre status from Multimedia Development Corporation Sdn Bhd (MDeC) in 1998, allowing it to provide

competitive and enabling environment to attract, nurture and retain ICT and ICT-links businesses mainly to the

Multimedia Super Corridor (MSC) status company within the vicinity.

UKM-MTDC TECHNOLOGY CENTRE

UKM-MTDC Technology Centre is a joint venture between Universiti Kebangsaan Malaysia (UKM) and MTDC.

The centre focuses companies that are mainly involved in biotechnology. The Centre is located on a 6-acre piece of

land within the UKM campus in Bangi and can accommodate 12-15 tenants at any one time. The centre has

successfully provided the linkages between tenants and universities, industries and the private sectors within the

Bangi area in particular, and in Kuala Lumpur metropolitan area in general.

UTM-MTDC TECHNOLOGY CENTRE

The UTM-MTDC Technology Centre was established in December 2001 and is a joint venture project between

Universiti Teknologi Malaysia (UTM) and MTDC. The centre focuses on companies that are mainly involved in

advanced engineering and life sciences. The Centre is located on a 4.24 acre piece of land within the Technovation

Park area with a total built up area of 31,200 sq/ft. Among its objectives are in the promotion of technology transfer

and commercialisation. Future plans ahead include expanding this facility soon due to rapid growth.

FRIM-MTDC TECHNOLOGY CENTRE

It is located at the Forest Research Institute of Malaysia (FRIM) in Kepong, Selangor. It is surrounded by the Bukit

Lagong Forest Reserve, which provides endless greeneries and peaceful ambience to its communities. The Centre is

located on a 4 acre-land; offering 47,500 sq feet of rentable space consisting of Technology Garage and Enterprise

space from 600 sq feet and above. Its core focus is on Biotechnology and Herbal Extraction Technology Businesses.



– 27th


UITM-MTDC TECHNOLOGY CENTRE

UiTM-MTDC Technopreneur Centre was established in October 2013 at Universiti Teknologi MARA (UiTM) Shah

Alam. It is strategically located in the Klang Valley, adjacent to the Federal Highway, about 4 km and 25 km

respectively from Klang and Kuala Lumpur. The Centre, with a built-up area of 39,000 sq feet and developed on a

2.5-acre land, is a prime business space to house Technology related companies, service providers (Accounting,

Secretarial, Legal) and equipped with shared facilities such as training and seminar rooms, cafeteria and a

gymnasium. The facility is security guarded on a 24/7 hour basis. Being in the heart of UiTM campus itself means

companies will have access to the many faculties and research facilities to pursue networking and research

collaboration, pool of potential human capital for your company and more. The center core focus is on

Industrial/Creative Design and Nano-Technology.

These Centres’ Achivements enable academia and industry to collaborate and leverage on each other‟s strengths,

while accelerating commercialization activities. The achievements include:

(1) Creation of job opportunities for knowledge-based workers

(2) Increase of penetration of Malaysian-made products to overseas markets

(3) Facilitation and creation of Intellectual Property and their successful commercialization

Shared Facilities in these Centres: Office space; Wet lab & dry lab (cold room, chemical store, product store, dry

store, wash area and lab bench); Meeting room; Boardroom; Training room; Seminar hall of various sizes; cafeteria,

free parking space, prayer room, gymnasium, resource centre, recreational area and auditorium.

Services offered by the Centres include: Business Matching Programme; Networking Session; Nurturing

Programme; Fund Raising; Technology Connection; Collaboration

Corporate Social Responsibility activities include: Blood Donation Campaign; Motivational Talks; Public

Awareness Programme; Religious Talks.

MTDC Departments/Divisions

1. Corporate Social Responsibility/International Networking Department

2. Nurturing Department

3. Business Advisory Division

4. Collaboration Advisory Services Department

5. ICT Support

6. Marketing & Client Services Unit

7. Corporate Communications Department

8. Knowledge Management Department

9. Government Fund Management Unit

10. Administration and Procurement

MTDC Technology Centres Admission and Graduation: General Admission Policy

Company incorporated under the Companies Act 1965

Minimum paid-up capital of RM20,000.00

Must be a technology-based Business Company

Encourages a collaboration with the local university or research institution

Must be in operation for at least three (3) months

A subsidiary of a multinational company may be considered

Credible management team

Provision of data to MTDC

MSC Status Company (UPM-MTDC Technology Centre) Admission/Entrance Policy The company must be incorporated in Malaysia under the Companies Act 1965 within the past two (2) years

The company cannot be preparing for a corporate exercise or Initial Public Offering within the next 1 or 2 years.

The company cannot be involved in the following activities:-

a. Pure manufacturing / assembly activities

b. Trading activities



– 27th


The company should possess all relevant approvals and licensing requirements from the relevant authorities

accrediting its MSC status

Minimum paid up capital of RM 20,000

Credible management team

Clear and defined business vision

Operates in a legal and ethical manner, complying with all such statutory, regulatory and/or licensing

requirements as may be applicable including company formation and protection of intellectual property rights

Company will be required to provide data to MTDC

Graduation Policy Company may be graduated from the Technology Centre Programme if MTDC determines that it has met two or

more of the following conditions:

The business reaches the maximum allowable stay in terms of a specific time limit, as determined by MTDC

Space requirements of the company exceed incubator capacity

Company reaches/achieves their tenure/milestone

Company is listed bought over by another bigger company

Garage unit/programme to enterprise unit

Enterprise unit to other places outside incubator

The business no longer needs or uses incubator business assistance services

Tenant Termination/Exit Policy Tenants are terminated from the Technology Centre for:

Non-payment of rent and/or services fees

Violations of lease and/or services agreements

1.2.3. MTDC Value Added Services

MTDC has created a vibrant entrepreneurial ecosystem by providing infrastructure and nurturing services, to guide

start-up companies from conception of ideas to full commercialisation. This is achieved through its Technology

Development Cluster Programme (TDC), designed to strengthen linkages between universities/research institutions

and industries. The main objective is to activate and promote the acceleration of commercialisation activities of

universities and research institutions, on local and global stages. Rapid changes in technology as a result of stiff

competition and challenges in the global market have left business organizations with no choice but to perform at

their best levels at all times. This means business processes as well as strategic plans must be consistently evaluated

and revised in order to keep up with the pace in the marketplace. MTDC offers value-added services to help

business organizations excel in their respective fields. With more than 14 years of experience in the venture capital

and high-tech industry, MTDC‟s personnel have acquired in-depth skills and vast experiences to offer complete

solutions to clients. MTDC offers three core value-added services pertinent to the development of technology

businesses: nurturing and business advisory, capacity building and market research, and strategic planning.

(a) Nurturing & Business Advisory

MTDC`s winning formula is well-proven. We have strings of start-up successes and our excellent relationship

forged with top-tier investment partners locally and globally. We aim to provide you with value-added services that

go beyond financial support, such as:

Structuring collaboration programmes with universities/research institutions

Market Development

Fund Raising

Business Development

R&D & Technology Management

IPR Management

Project Management (Operations Plans)

Government Regulatory

Financial Planning & Sourcing

Development of Business Plan



– 27th


(b) Capacity Building & Market Research

MTDC assistance covers the provision of both the soft-skill and hard-skill tools to help entrepreneurs steer their

companies into growth and profitability. These cover education and knowledge enhancement on entrepreneurship,

leadership, technology transfer and management, IPR, promotion and branding. Besides this, MTDC is also

involved in market research activities. Through the activities, MTDC is able to help entrepreneurs identify

opportunities and structure deals creatively via the following activities:

Market Research & Technology Evaluation

Technology Matching

Technology Due Diligence

Technology Strategy

Industrial Analysis

Organising seminars/workshops

(c) Strategic Planning & Special Projects

Business Process Improvement

Strategic Development

Strategic Planning Study

Organisational Transformation

1.2.4. MTDC Symbiosis Programme

MTDC‟s Graduate Entrepreneurship Programme or Symbiosis is aimed at training selected graduates to become

technopreneurs. Symbiosis is a comprehensive programme that covers aspects of commercialisation as well as

entrepreneurship. At the end of the programme, selected candidates lead start-up companies to commercialise

technologies from the Universities/Research Institutes (Uni/RI) that have been carefully chosen by MTDC.

Symbiosis start-up companies then apply for MTDC‟s fund to operate from any of the Technology Centers and

receive nurturing and other value added services just like any other company within MTDC‟s ecosystem.

Objectives 1. To promote commercialisation of R&D output of Uni/RI.

2. To increase the number of technology-based start-ups in the national economic landscape; revenue and job

generators for the Malaysian economy.

3. To increase the pool of young entrepreneurs with excellent business knowledge and skills.

Services 1. Assist universities/research institutes to identify technologies ready for commercialization through

Symbiosis programmes.

2. Assist universities/research institutes to identify potential technopreneurs for commercialization of relevant

technologies through Symbiosis

3. Develop, guide and nurture technopreneurs throughout the 6 phases of the Symbiosis programme i.e. from

the selection of technologies until the formation on companies.

Current MTDC Symbiosis Programmes

1. FMBIOSIS

2. UTM-MTDC SYMBIOSIS

3. UKM-MTDC SYMBIOSIS

4. UPM-MOHE-MTDC SYMBIOSIS

5. USM-NCIA-MTDC SYMBIOSIS

6. UNIMAP-NCIA-MTDC SYMBIOSIS

FMBioSis™ is a joint programme to develop qualified young graduates to become bio-entrepreneurs by

commercializing locally developed research technologies. In this programme, Forest Research Institute Malaysia

(FRIM) is the technology provider while MTDC is the sponsor as well as the business development trainer. The

programme was officially launched on 21st May 2008. All participants have completed the first and second stage of

the programme and 10 best participants have been selected to lead the FMBioSis™ companies. These are spin-off

companies which are primarily involved in commercialisation of FRIM‟s technology. Currently there are 50 active

start-up companies with 83 technopreneurs within the Symbiosis Programme at various stages of commercialisation

activities and 75 jobs have been created since the inception of Symbiosis Programme.



– 27th


1.2.5. MTDC Knowledge Centre/Linkages/Partnerships

Malaysian Venture Capital and Private Equity

Association (MVCA)

Ministry of Agriculture and Agro-Based Industry

Ministry of Culture, Arts & Heritage

Ministry of Defence

Ministry of Domestic Trade & Consumer Affairs

Ministry of Education

Ministry of Energy, Communications & Multimedia

Ministry of Entrepreneurship & Co-Operative

Development

Ministry of Finance

Ministry of Foreign Affairs

Ministry of Health

Ministry of Home Affairs

Ministry of Housing And Local Government

Ministry of Human Resource

Ministry of Information

Ministry of International Trade & Industry

Ministry of Natural Resources & Environment

Ministry of Rural & Regional Development

Ministry of Plantation Industries & Commodities

Ministry of Science, Technology & Innovations

Ministry of Tourism

Ministry of Transport

Ministry of Works

Ministry of Youth & Sport

Prime Minister‟s Department

Malaysian External Trade Development Corporation

Malaysian Industrial Development Authority

Malaysian Industrial Development Finance

National Productivity Corporation (NPC)

Small and Medium Industries Development Corporation

Astronautic Technologies (M) Sdn Bhd (ATSB)

Academy of Science Malaysia (ASM)

Atomic Energy Licensing Board (AELB)

Department of Chemistry Malaysia (DCM)

Department of Meteorological Services (DMS)

Department of Standards Malaysia (DSM)

Inno Biologics Sdn. Bhd.

Malaysian Biotechnology Corporation (MBC)

Malaysia Design Council (MRM)

Malaysian Centre For Remote Sensing (MACRES)

Malaysian Institute For Nuclear Technology Research

Malaysian Industry-Government Group for High

Technology (MIGHT)

Malaysian Science & Technology Information Centre

MIMOS Berhad

Multimedia Development Corporation (MDEC)

National Biotechnology Directorate (NBD)

National Oceanography Directorate (NOD)

National Science Centre (Pusat Sains Negara)

National Space Agency (ANGKASA)

SIRIM Berhad

Technology Park Malaysia Corporation Sdn Bhd

Forest Research Institute Malaysia (FRIM)

Institut Kerja Raya Malaysia (IKRAM)

Institute For Medical Research (IMR)

Malaysian Agricultural Research & Development Institute

Malaysian Cocoa Board

Malaysian Rubber Board

Malaysian Palm Oil Board (MPOB)

Universiti Kebangsaan Malaysia (UKM)

Universiti Malaysia Sarawak (UNIMAS)

Universiti Putra Malaysia (UPM)

Universiti Sains Malaysia (USM)

Universiti Teknologi Malaysia (UTM)

Universiti Teknologi Mara (UiTM)

Universiti Utara Malaysia (UUM)

Universiti Malaya (UM)

Burrill and Company

http://www.mvca.org.my/

http://www.mvca.org.my/

http://www.moa.gov.my/

http://heritage.gov.my/

http://www.mod.gov.my/

http://www.kpdnhep.gov.my/

http://www.moe.gov.my/

http://www.ktak.gov.my/bm/index.asp

http://www.mecd.gov.my/

http://www.mecd.gov.my/

http://www.treasury.gov.my/

http://www.kln.gov.my/

http://www.moh.gov.my/

http://www.moha.gov.my/

http://www.kpkt.gov.my/

http://www.mohr.gov.my/

http://www.kempen.gov.my/

http://www.miti.gov.my/

http://www.nre.gov.my/

http://www.rurallink.gov.my/

http://www.kppk.gov.my/

http://www.mosti.gov.my/

http://www.motour.gov.my/

http://www.mot.gov.my/

http://www.kkr.gov.my/

http://www.kbs.gov.my/

http://www.pmo.gov.my/

http://www.matrade.gov.my/

http://www.mida.gov.my/

http://www.midf.com.my/

http://www.npc.org.my/

http://www.smidec.gov.my/

http://www.atsb.com.my/

http://www.akademisains.gov.my/

http://www.aelb.gov.my/

http://www.kimia.gov.my/

http://www.kjc.gov.my/

http://www.standardsmalaysia.gov.my/

http://www.innobiologics.com/

http://www.biotechcorp.com.my/

http://www.malaysiadesigncouncil.gov.my/

http://www.macres.gov.my/

http://www.mint.gov.my/

http://www.might.org.my/

http://www.might.org.my/

http://www.mastic.gov.my/

http://www.mimos.my/

http://www.mdec.com.my/

http://www.biotek.gov.my/

http://www.mosti.gov.my/opencms/export/MostePortal/NOD/NODintroEn.html

http://www.psn.gov.my/

http://www.angkasa.gov.my/

http://www.sirim.my/

http://www.tpm.com.my/

http://www.frim.gov.my/

http://www.ikram.com.my/

http://www.imr.gov.my/

http://www.mardi.my/

http://www.koko.gov.my/

http://www.lgm.gov.my/

http://mpob.gov.my/

http://www.ukm.my/

http://www.unimas.my/

http://www.upm.edu.my/

http://www.usm.my/

http://www.utm.my/

http://www.uitm.edu.my/

http://www.uum.edu.my/

http://www.um.edu.my/

http://www.burrillandco.com/



– 27th


2. TECHNOLOGY COMMERCIALISATION WORKSHOP PROGRAMME

Following below is summarized contents of the presentations

2.1. BUSINESS MODELING & CUSTOMER SEGMENTATION

By Noor Amal Morad ([email protected])

Reasons for becoming an ENTREPRENEUR…

• Saw a great opportunity (job, idea, technology, etc)

• Pursuing a passion, interest

• Freedom – be in charge of own destiny & ability to set own life

• Responsibility to society - Improve society in some meaningful way

• Spending more time with family

• Change – escaping dysfunctional workplace

• Look for a sense of accomplishment

• Control of own destiny

Where do you start..??

Being an entrepreneur is very, very risky. Very, Very Low Success Rate.

For a start, who could put you out of business? YOURSELF!

Top 10 Reasons why Start‐ups fail…

1. Startups run out of cash. Entrepreneurs get greedy.

2. Founders don‟t have complete faith in each other.

3. CEOs hire weak team members.

4. They want to do too much.

5. They go after too small a market.

6. They don‟t charge enough from their customers to survive.

7. They hire too many people up front.

8. Sheer luck (or lack thereof).

9. They don‟t work hard enough or fast enough or smart enough.

10. They don‟t take enough risks.

Maximise the Funds

• Use the funds efficiently & effectively - Stretch to the last dime.

• Pay for things only when absolutely necessary – why rent when you can work from home, or use virtual office.

• Don‟t buy – borrow, rent or lease, if possible.

• Do everything yourself – hire only the right people, at the right stage of development.

What Do these Words Mean?

Entrepreneurial process – Guide to: Idea Generation. Idea Validation. Idea Implementation Entrepreneur - Actor: Someone who undertakes the risk associated with creating, organising, and owning a business.

Entrepreneurship - Awareness: The recognition of an opportunity to create value, and the process of acting on this opportunity.

Key Attributes of an Entrepreneur

• Goal: Personal > Business

• Courage: not to be intimidated by failure or the anticipation of failure.

• Action: The implementation of knowledge (wisdom)

• An entrepreneur is always driven by PASSION. Entrepreneurship is NOT a job, it‟s a RELIGION.

• It is NOT a forced exercise; it needs 100% commitment.

What goes into a Business Plan?

• Quantify a specific market segment,

• Demonstrated customer need,

• Put together a defined product or service complete with specification,

• Lay out a manufacturing or operations plan,

• Do a complete competitive analysis,

• Do a pro‐forma projection.

mailto:[email protected]



– 27th


Customer Segments

For whom are we creating value? Who are our most important customers? You must be able to profile your

customers & put yourself in the “shoes” of the customer – look at it from their perspective.

Segmentation Clues

• Different level pain or passion

• Seek to solve problem differently

• Require different marketing

• Require different distribution

• Require different sales

• Not necessarily demographic‐based

Types:

Mass

Niche

Segmented

Diversified

Multi‐sided Platform Markets

Customer Relationships

Types of relationship each of the Customer Segments

expect to establish & maintain

Which one have we established?

How are they integrated with the rest of our

business model?

How costly are they?

Revenue Streams

For what value are our customers willing to pay?

For what do they currently pay?

How are they currently paying

How would they prefer to pay?

How much does each Revenue Stream contribute to

overall revenues?

Key Resources

What key resources do our value proposition require

Distribution Channels?

Revenue Streams?

Types:

• Physical

• IP

• Human

• Financial

Key Activities

What key activities do our Value Proposition require

Distribution Channels?

Customer Relationship

Revenue Streams?

Categories:

• Production

• Problem Solving

• Platform/Network

Key Partners

Who are:

• Key Partners

• Key Suppliers

Which:

• Key Resources are we acquiring from partners?

• Key Activities do partners perform?

Motivation for Partnership

• Optimisation & economy

• Reduction of risk & uncertainty

• Acquisition of particular resources & activities

Cost Structure

What are the most important costs inherent in our

business model?

Which Key Resources are the most expensive?

Which Key Activities are the most expensive?

Is the Business more:

• Cost-driven (leanest cost structure, low price value

proposition, maximum automation, extensive

outsourcing)?

• Value-driven (focused on premium value

proposition)?

Sample Characteristics:

• Fixed cost (salaries, rent, utilities) & Variable costs.

• Economics of Scale & Economics of Scope



– 27th


2.2. COMMERCIALISATION FUNDING

By En Mohammad Hazani Hassan

Commercialisation Road Map

Funding continuum: Second view

MTDC’s TECHNOLOGY COMMERCIALISATION PATHWAY



– 27th


Considerations for Funding

• How much to raise?

• How much to give-up (shares, control, collateral)?

• What is the proceed for?

• Valuation?

1. What can investors do to help?

2. Cost of financing

3. How investors can benefit (exit)

4. The “chemistry”

The Ingredients of an Entrepreneur

Right knowledge/talent

1. Technical/product

2. Market and marketing knowledge

3. Management knowledge

4. Financial knowledge

5. Legal knowledge

Right product/idea

1. Viable

2. Quality

3. Meaningful of value

Right character/attitude

1. Passionate

2. Have guts/risk taker

3. Hands-on

4. Doer and decisive

5. Good listener

6. Willing to learn/helpful/tem player

7. Willing to share/trusting and to be trusted and flexible

8. Humble and a little crazy

(Ref. Steve Covey)

The Right Mixture

Why is Commercialisation Challenging?

∑ Ingredients of Entrepreneur (e) + ∑ Ingredients for the Ship (s) = Commercial Success (CS) ?

∑ e + ∑ s + ∑ X = CS



– 27th


Hindrances to Commercialisation

1. Lack of skiled people to form a complete team

2. Lack of clear aims and objectives unsure of role, equity structure, valuation, and outcome

3. Lack of appropraitel structured incentives or inappropriately targeted incentives

4. Lack of rigorous process to validate, support and endorse

5. Lack of proof of principle or third stream funding prior to event reaching commercialisable stage

6. Lack of time, focus, management and desire

How to Cook it Right

1. Ingredients have to be right: the entrepreneur/promoter/ship/magic ingredients must all be present

2. The price has to be right

3. The ecosystem has to be conducive: human, technology and risk capital must always be present

4. The overall attitude has to be right “dare to win” where failure is not a sin!

5. Clear commercialization policy drivers: TTO/TTC to take through commercialisable inventions, innovations,

new business models

6. If overallecosystem is limited it may still not be right. Commercialisation requires new packaging!

GRANT/FUND MANAGEMENT

MTDC was appointed by the Government since 1997 to manage Government MOSTI grants under the Technology

Development Programme (TDP). The type of grants are: Commercialisation of R&D Fund (CRDF), Technology

Acquisition Fund (TAF) Since the 10th

Malaysian Plan, MOF entrusted MTDC to manage two new funds for further

commercialisation support and business expansion: Business Start-up Fund (BSF)- Convertible loans, and Business

Growth Fund (BGF)- hybrid fund

Funding-Right Support Name BSF CRDF BGF TAF BEF

Fund size RM 100 million. RM 180 million. RM 100 mil. RM 12 million RM 25 million

Source of fund Ministry of Finance Ministry of Science,

Technology & Innovation

Ministry of Finance Ministry of Science,

Technology & Innovation

Unit Peneraju Agenda

Bumiputera

Fund tenure

period

Budget 2011 10th MP (2011-15) 10th MP (2011-15) 10th MP (2011-15) 2013

Fund

objectives

To support and

encourage entre-

preneurship and

creation of new

strategic busin-esses that are important,

and potentially

scalable; funding of supporting co‟s

within a technology

eco-system.

To promote the

commercialisation of

locally developed

technologies (from public

and private universities, Government‟s Research

Institutions and

companies) undertaken by Malaysian owned

company.

To support successful

grant recipient co‟s

until they can

generate sufficient

commercial value to attract VC financing

and other forms of

financing.

To facilitate eligible

Malaysian co‟s in the

acquisition of foreign

technologies for

immediate incorporation into the co's manufact-

uring activity. TAF's

partial grant enables companies to avoid

expensive and often risky

technology development stages.

Accelerate the

expansion of

Bumiputera technology-

based co‟s by providing

financial help to qualified companies;

and to be complemented

with existing value added services provided

by MTDC

Focus sectors Technology

companies.

Locally-developed high

technology, except ICT.

High technology

companies.

Technology companies. Bumiputera technology

co‟s at expansion stage.

Subscription

instrument

Convertible

Promissory Note.

Partial, matching grant. Hybrid – a

combination of grant

and RCCPS

Partial, matching grant. Promissory note,

convertible to RCCPS.

PRIORITY TECHNOLOGY CLUSTERS UNDER MOSTI

INDUSTRIAL TECHNOLOGY

Advanced Manufacturing

Advanced Material

Renewable Energy

Nanotechnology

Machinery and Equipment

Food Processing and Production

SEA TO SPACE

Meteorology & Geophysics

Oceanography

Remote Sensing & GIS

Communication

Space Technology

BIOTECHNOLOGY

Agro-Biotechnology

Healthcare

Industrial

S&T CORE

Environmental Sciences



– 27th


2.3. IP COMMERCIALISATION FROM THE UNIVERSITIES

Prof. Rohazar Wati Zuallcobley, Faculty of Law, University Technology MARA

The IPR legislation must be in place

• The Copyright Act 1987

• The Patent Act 1983

• The Trade Marks Act 1976

• The Industrial Designs Act 1996

• The Geographical Indications Act 2000

• The Layout Designs of Integrated Circuit Act 2000.

Supporting laws must be in place

• New Plant Varieties Act 2004

• Common law:

• - passing away

• - confidential information

International Convention for IP must be known and understood

• Paris Convention for Protection of Industrial

Property 1967 (1989)

• Berne Convention for the Protection of Literary

and Artistic Works 1971 (1990)

• Trade-related aspects of Intellectual Property

Agreement 1994 (1995)

• WCT/WPPT(digital agenda) 2011

• PCT 2006

• Nice Agreement

• Vienna Agreement

IP as intangible property

• Tangible property is land, houses, estates, car

• Intangible property is intellectual property

• Intangible wealth, easily shared & reproduced,

once created marginal cost of reproduction is

negligible

The role of IP as intangible property

• Economic rights of creators

• Commercial exploitation of owner of ip

• Capital expenditure

• Transfer of technology

• Cultural development

IPR as an economic tool

“The intellectual property system must be able to

convert innovation into assets”

• innovations

• entrepreneurship

• profit

• reward

• economic growth

What drives IP commercialisation

• Positive political will

• Infrastructure

• Reward

Political will

• Government support for innovation and

commercialization

• -MyIPO (Malaysia Intellectual property Office)

• -Intellectual Property Training Centre

• -National IP Policy

• -Innovation Policy

MOHE

• Research culture 2006 - 2008

-Driving R & D activities among the universities.

• Establishment of RU which are given special funding.

• Driving quality research 2008-2010

• Innovation and commercialization 2011



– 27th


Infrastructure

• To support R&D activities:-

• Laboratories , databases, library, equipment

• Organizational structure:-

• IP policy and manual

• Research management centre,

• Technology License Office (TLO)

• Technology Transfer Office (TTO)

• Commercialization Management Unit

• Incubator

Reward

• Statutory provision for reward under the Patent Act 1983

• Section 20 „Inventions made by employee …..

• “Provided that where the invention acquires an economic

value much greater than the parties could reasonably have

foreseen at the time of concluding the contract of employment

….the inventor shall be entitled to equitable remuneration

which may be fixed by the Court in the absence of agreement

between the parties.

• This provision supported by the Innovation Policy and

individual IP policy of the University.

• Patent applications are given marks for promotion application.

Manner of commercialization

• Assignment

• Licenses:

-Exclusive

-Non-exclusive

• Contract research

• University spin-off company

The difficulties

• Identifying correct partners

• The death valley

• Not the core business of universities

• Level of IP understanding

• Not enough financial support

• High Cost of IP application internationally

Problems in negotiating licenses

• Difficulties in identifying genuine parties

• Difficulties in arriving at a fair price for IP

• Difficulties in determining price of the IP

• Inadequate legal framework for IP transfer

• Lack of skill and information on legal

aspects of IP transfer transaction

Commercialization

• Universities‟ research out puts must be commercialized.

“The success of a particular research is not dependent on

publication or recognition in a journal, but depended on how

far that particular research has been commercialized” Datuk

Sri Najib Tun Razak (Deputy Prime Minister) 18th

May 2006.

2.3. ENTREPRENEURSHIP & DEVELOPMENT LOCALLY AND GLOBALLY

By: Hayati Taib. Email contact: [email protected]

THE ENTREPRENEURIAL VENTURE

Period 1: Pure entrepreneurship

Defininin the concept of the business

Gathering financial resources

Assembling the startup team

Analyzying the competition

Building the prototype

Getting your first customer

Period 3: Systems building

Financial controls

Stable division of labour

Reporting relationships and authorities

Developing systems of internal controls

Formalise the terms of a saleoperational systems

-production/outsourcing/distribution/sale

-service/waranties

Race Against Time Time is so important that humans have worked

hard on tracking it for thousand of years so that

you only have to learn how to manage it !!!

Period 2: Strategic focus

What business aren‟t we in

Implementing the business we are in

Knowing bttter than anyone else

What will people pay

How many will they buy

How to distribute

How to service the customer

Identifying strategic partners

Developing relations with suppliers

Going beyond the prototype to a truly scalable product

Recruiting a complete team

Raising institutional money

Period 4; Corporate management

Hiring outsiders

Going public

Shedding those who cant keep up

Formalizing the culture

Rationalizing the strategy



– 27th


ENTREPRENEUR & NETWORKING •Establishment of mutual beneficial relationship with

other people

•Clustering to gain information

•Assist in making decision

•Support network

•Provide „loyalty‟

•NO immediate gains

•Establish a beneficial string of friends in need

CRITERIA OF SUCCESSFUL TECHNO-E •Entrepreneurial- visionary, innovator, strategist,

creative and need to control

•Managerial – orderly, pragmatic and predictable

•Technical capabilities - working and do things

To be a successful Techno-E, there needs to be a balance

of all three traits.

Gerber, Michael E., The E Myth Revisited

EXAMPLE: LOCAL TO GLOCAL - CASES

Commer cialization - The Cycle in MYAGRI Funding

COMMERCIALISATION SUCCESS FACTORS

Three major resources:

BIOFERTILIZER AND BIO-ORGANIC BY TERAJU, YAB PM OFFICE

Strategy A: Waste to Wealth & Commodities in the Oil Palm Sector

Strategy B: Waste to Nutrients in the Paddy Field

MYAGRI BIO-ORGANIC PROGRAMME

Strategic Nutrient Recycling to Optimize Inorganic Fertilizer Applications

Re-evaluation

(Evolution/revolution)

R&D

Market Commercialisation

Funding

Profit

Asset/Investment

Expenses/Loss Profit

Income/ Working Capital

Human

Market

acceptance

Financial

Knowledge



– 27th


CDM Biogas Plant

CDM BIOGAS PLANT ORGANIC WASTE TO ENERGY

Mills

Biogas Plant

Investor

ALGAE-BASED BIO-PRODUCTS

TOTAL NUTRIENT RECYCLING

Human Feed

•Health Supplements Animal Feed

•Nutrient supplements Algae Oil

•Bio-diesel •Bio-ethanol

EXAMPLE OF MTDC SYMBIOSIS PROJECT Frutti Fibbi is hi-fiber flour made from pineapple cores that provides better dietary since it is more delicate in texture

and has high water holding capacity than any other vegetation fiber. The flour can be used as an additive to other

flour in the making of bread, noodles, cakes, cookies or ice cream. Frutti Fibbi acts as dietary fiber that improves

digestive system, lowers blood cholesterol, regulates sugar levels and maintains body weight as desirable.

Pineapple by-products from cannery

Turn

into

Dietary fiber flour

-3 particle sizes for different application

New Food

Resources

CONCLUSION: Entrepreneur should:

•Identify a NEED

•Conceptualize a SOLUTION

•Demonstrate a PROTOTYPE

•Develop a ROLL-OUT PLAN and get FUNDING

•MARKET the product using correct channels and packaging

•UNDERSTAND the changing climate and adjust to it

•Develop a strong relationship with CUSTOMERS

•“GIVE CUSTOMER SOLUTIONS THAT SOLVES A REAL PAIN”

Adopted from: Haas School of Business, UC Berkeley

A Successful Venture?

Is it a Golden Egg? Or A System to Continue Producing the Golden Egg



– 27th


2.4. OVERVIEW OF TECHNOLOGY COMMERCIALIZATION

By Fatimah Mohd Amin, Ph.D

What is Technology Commercialization? •Technology commercialization is the process of transforming an idea or scientific discovery into new or improved

product, process or service

•The process is complex, non-linear, with false starts, dead ends, changes in direction and feedback loops

•It requires different skill sets – scientific, technical, business, marketing

•There are various options for realizing value – licensing, start-up, alliance

Importance of Technology Commercialization •An idea or discovery, by itself, has no direct economic value; economic value is created when an idea or discovery

finds an application and gets translated into a product, process or service

•Commercialization provides return to public investment in research; ensures that new and promising ideas become

seeds to innovative products and services

•Commercialization leads to creation of new ventures which are needed for competitiveness and economic growth

Technology Commercialization Process from Discovery to the Marketplace

Commercialization is non-linear with feed-back loops



– 27th


Discovery/Ideation Phase •Technology commercialization commences with the techno-market insight

•Ideas evolve through constant iteration between a new technological capability and market need

•Researchers generate new technological possibilities that are embodied in new discoveries and methods

•Research could be triggered by real or perceived market needs or by researcher‟s own convictions or interests

You need to start with many ideas to get one successful product

Proof of concept entails evaluation of the technological feasibility and commercial viability of a technology

•How is it done?

- prototype for product/service

- scaling-up and/or pilot plant for process

•This phase involves high risks, requires large resources and is frequently the end of the commercialization initiative

– the phase commonly termed as “Valley of Death”

Proof of Concept Phase “Valley of Death”



– 27th


Resources for Technology Commercialization

Product Development Phase Product development refers to the entire process of:

- identifying a market opportunity

- creating a product to appeal to the identified market;

- testing/trials; and

- modifying and refining the product

Technology Commercialization Options

1. Sale or Assignment of IP Rights •Sale by owner of all his exclusive right to an invention to another person or legal entity

•Outright sale is suitable for common technologies

2. Licensing •The permission by the owner to a patented invention to

another person or legal entity to perform one or more of the

„acts‟ which are covered by the exclusive right to the

patented invention

•Licensing is one of the most common modes of technology

commercialization

•Financial compensation typically include:

–Up-front fees or lump-sum payments

–Running royalties (e.g. based on sales volume)

–Milestone payments

Types of Licenses

Exclusive • Only one licensee has the rights to exploit the invention

• Desirable for high risk investment

• Necessary to “induce” investment

Non-exclusive • Similar licenses may be granted to more than one

company

• Invention is a broadly applicable process

• Invention is useful to many companies thus not

necessary to “induce” investment

Partially Exclusive • Same technology licensed again for a different

geographical region or for a different application

• Agreement must specify field of use or application

• Licensee has the rights to exploit only for the

specified application

3. Alliance •Collaborating with another person or legal entity for the

purpose of acquiring assets or expertise to complement the

capabilities of the owner of the invention and that are

essential to bring the invention to the market

• Examples of complementary assets are:

-Distribution channels

-Specialized manufacturing capabilities

-Sales force

-Other expertise

R

e

s

o

u

r

c

e

s

Early Development

Research resources Commercialization

resources

Private fund

Valley of death

Public fund

Commercialization Discovery

Phases of Commercialization



– 27th


4. Joint Venture •A contractual agreement between two or more parties for

the purpose of executing a business undertaking with mutual

sharing of profits and losses

•There are 2 basic forms of joint venture (JV) namely equity

JV and contractual JV

•The equity JV is an arrangement whereby a separate legal

entity is created

•A contractual JV might be used where the establishment of

a separate legal entity is not needed or where it is not

possible to create such an entity

5. New Venture •Creation of new business or “start-up” by licensing

technology

•Sometimes called “entrepreneurial technology

transfer”

•In the USA 1-2 spin-offs per US$100 million

research expenditure; best practice 5-20 spin-offs

per US100 million research expenditure)

Determinants of Commercialization Success •A compelling commercial concept

•Continuing validation through the acquisition of new, „smart‟ and meaningful investment

•A „champion‟ well matched to the needs of the project, especially during the more uncertain early phases

•Conducive environment (e.g. supportive organization culture, compatible incentives, enabling legislation)

•Efficient access to external networks of resource providers

•Efficient mechanism to share information both within organization and externally with potential resource providers

Agents in Technology Commercialization Technology commercialization involves multi-sectoral collaboration

Scientists/Inventors

(Generate ideas/scientific discovery)

Entrepreneurs/Enterprises (Create, market &

sell product or service

Technology

commercialization

Public and Private Funding Agencies

(Provide financing throughout

commercialization process)

Support Organizations (TTOs, Incubators,

IPR, orgs) (Facilitate translation of ideas,

inventions into marketable product and service)

2.5. SCOPES OF INVESTMENT DUE DILIGENCE

By Noor Amal Morad ([email protected]), Senior Vice-President Strategic Planning

What is Due Diligence?

The thorough investigation & analysis the investor

makes of a prospective investment to see if it meets the

investor‟s strategy & criteria for funding. – Woodside

Fund

To independently verify the information provided

Why Due Diligence is Necessary and What is

Involved?

Due diligence includes an assessment of the industry,

market, business concept, management team, the

company‟s technology, products and markets, and

financials. – Woodside Fund

How “deep” diligence is done depends on the Investor

When is it Done?

MTDC

Other Investors

Screening

Evaluation

Investment

Due Diligence

Approval

Screening Evaluation Approval with CPs Due Diligence Investment

Monitoring &

Exit

Investment



– 27th


Screening Due Diligence

Short listing your deal flow

(a) Quality of Deal

(b) Investment Compatibility

Quality of Deal:

• Business plan

– What is the overall quality of the business plan?

• Customers & partners

– Company signed impressive customers and/or partners?

• Source & origin

– What‟s the source of the deal; coming from or referred by?

• Other equity partners

– Who are existing investors and potential partners?

Investment Compatibility:

• Market space

– Compatible with the funding strategy?

• Development stage

– Seed, early, expansion or late

• Portfolio

– Will it be a direct competitor with existing companies?

• Investment amount

– Amount sought compatible with the funding strategy?

• Personal

– Is there compatibility between investor and company‟s

management team?

• Geographic location

– Company strategically located for success?

IP Due Diligence

Six Basic Steps:

• Understand the core business

• Get Information on all APRs

• Confirm all IPRs held

• Compile unregistered IP assets

• IP asset valuation

• Confirm company‟s right to use IP

Management Due Diligence

• Management Resources

– Have top quality mgt resources at its disposal?

• Management Team

– Made up of top‐quality managers?

– What are gaps identified & plan to address them?

– Well diversified & complement each other?

– Success and/or failure records

– Commitment & dedication

Business Due Diligence

• Identification of Technology/Product

Type

– Evolution, Revolution or Innovation?

– Disruptive vs. Me‐too

• Value Proposition

– Compelling enough?

– Can it be mapped throughout the value chain?

• Market

– Who are the customers?

– Future, emerging, growth or mature?

– Regulatory & legal issues

– Sustainable?

• Competitive

Strategy – Existing & future competitors

– Competitive positioning

IP Due Diligence

• Securing of IP rights

• Patent novelty searches

• Internal procedures for safeguarding IP rights

• Insurance cover

Securing of IP Rights:

• Protect IPs by patent, trademark, industrial design

• Year of registration & awarded

• Filing number, type, class, status, etc

• Countries of registration

• Patent type, applicant & owner

• Spun‐out IPs

Patent Novelty Searches:

• Similar technology patented

• Searches in key foreign markets

Internal Procedures for Safeguarding IP Rights:

• Internal procedures, guidelines or code of conduct set in

place for the identification & safeguarding of IP

• Provisions incorporated into the employment contracts

imposing: – confidentiality obligations; – all IPs created in

the course of employment to be vested in the Company

General Corporate Information:

• Memorandum & articles of association (or other

constitutional documents), all resolutions & consents

• Agreements/arrangements with other investors

• Minutes of meetings such as board, executive cttee, etc

• Attorney powers/other docs appointing/delegating powers

• List of panel solicitors, auditors, bankers & share registers

Insurance Cover:

• Insurance policy taken to cover any possible

infringement of 3rd

party IP rights

• Keyman insurance policy to protect Company‟s

idea source

Legal Due Diligence

• General Corporate Information

• Government Regulations & Filings

• Indebtedness & Finance

• Property

• Insurance

• Trading Makers

• Material Agreements

• Debts to & Contract with Connected Persons

• Litigation



– 27th


Government Regulations & Filings:

• Licenses, permissions, authorisations, registrations &

consents

• Details of any inspections made & any alleged violations

assessed

• Reports filed and significant correspondence of the

Company with any regulatory agencies

Indebtedness & Finance:

• Mortgage, charge, debenture, guarantee, indemnity

• Document & agreements evidencing borrowing,

whether secured or unsecured

• Bank letters or agreements

• All inter‐company indebtedness

• Details of regular payments required, e.g. royalties

• Details of contingent liabili.es

Trading Makers:

• Standard terms and conditions of order, sale, supply or

purchase

• Licenses, permissions, approvals or memberships required

• Contract, orders, bids or tenders of major significance

• Joint venture agreements, management agreements & other

involvement with third parties

• Details of any trading disputes

Material Agreements:

• All joint venture & partnership agreements

• Principal documents rela.ng to any acquisi.ons or

dispositions of businesses

• All contracts or agreements with or pertaining to

the Company & to which directors, officers or

owners of more than 5% of shares of a Company

• All agreements, contract or commitments between

a Company and one, more, or among shareholders

Litigation:

• Details of all litigation in which the Company is involved

whether as plaintiff, defendant or third party

• Details of any arbitration, expert reference or other

quasi‐judicial or non‐judicial dispute resolution procedure

• Details of the claims, threats of action and other makers

which may result in litigation, etc

Financial Due Diligence

• General corporate information

• Financial statements

• Receivables, deposits & payments

• Trade payables & accruals

• Provision for taxation/tax status

• Income statements

• Costing review

• Related party transactions

General Corporate Information:

• Year of incorporation

• Authorised share capital, units of ordinary shares, price per

share

• Issues & fully paid up share capital, units, price

• Shareholders, percentage, amount, type of shares

• Subsidiary companies, if any

Financial Statements:

• General accounting & records

– Up to date & audited? – Where records are kept –

Who prepared it – in-house or outsourced?

• Property, plant & equipment

– Proper fixed asset register maintained? – Properly

insured against fire, burglary, material damages, etc

Trade Payables & Accruals:

• Trade payable balances in respect to purchases of raw

materials, components, etc

• Accruals represent to various fees such as accoun.ng, audit,

directors, EPF, etc

Provision for Taxation/Tax Status:

• Tax submissions made up to year of assessment.

Income Statements:

• Revenue

• Cost of sales

Costing Review:

• Cos.ng statement – computation of cost of

production, etc

Related Party Transactions:

• Transfer pricing issues, etc

Entrepreneur 1800 Due Diligence

Know your potential investor: Like a marriage, you need to

be really comfortable with your partner.

• Compatibility

• Area of focus

• Area of expertise

• Life of fund

• Board representatives

• Reporting & monitoring structure

Compatibility:

• People: – Finance vs. Technology, – Experienced

vs. Greenhorns – Successes

• Style: – Hands on vs. Hands off – Key terms in

Agreements – control items, consequences if

milestones not met.

Areas of Focus:

• Familiarity with technology space

• Is your business “sexy”?

• Technology vs. Financial

• Portfolio – Startups & Early vs. Expansion Stage –

Similar companies – Competing vs. Compliment



– 27th


Areas of Expertise:

• Can leverage to fill in gaps in your company

• Suppor.ng networks strong enough amongst – VC, banks,

etc – Other companies in the space – Technology & business

experts – Regulatory bodies

Board Representative:

• Who? – same person who evaluated the proposal?

• Exper.se to bring into the company

• How he or she adds value?

• Will he or she acts like an “internal auditor” – follow the

book to failure? or

• Act as friendly “devil‟s advocate” – a sounding board to

mgt ideas, especially on marketing & financial issues.

Life of Fund:

• How long before expire?

• Enough .me for you to grow?

• Short term vs. Long term investment

• Rush to exit – pressure for quick gains.

Reporting & Monitoring Structure:

• Frequency of reports

• Format of reports

• Milestone fulfillment set in stone? – Milestones

not met, disbursements blocked? – Realistic trigger

points

2.6. UNIVERSITY COLLABORATION ON ACADEMIC ENTREPRENEURSHIP – UKM EXPERIENCE

By Professor Mohammed Noor Embi, UKM Centre for Collaborative Innovation (Technology Transfer Office)

Transformation from resource-based to knowledge-based economy to achieve national mission

Innovation Economy: Malaysia recognizes the urgent need for emphasizing innovation and creativity in the new economic model 1

Malaysia: critical to increase the country‟s overall global competitiveness via companies, government, & academia

New Skills: Success requires new skills and comprehensive government policies and programs to produce an

integrated innovation infrastructure and ecosystem

Performance Now: tangible results that positively impact Malaysian society

National mission



– 27th


• What does UMK do?

1. Bringing university-led innovations to market

2. Promote transfer of knowledge, technology products

and innovations through leadership of our researchers

3. Team with stakeholders across investment pipeline

to effectively bring our innovations to market

• Why does UMK do what it does? As researchers, we are obligated to use our talents and

our resources to help solve some the social, economic

and environmental problems

• How does UMK do what it does?

Enablers –create conducive ecosystem and framework

to deliver capability and university-led innovations

the industry and society

Inculcating culture of innovation in UKM

• Develop an organizational culture in R&D that

embraces innovation as a core value

• Create a conducive entrepreneurial ecosystem on

campus

What drives the innovative culture in a University?

The internal culture is the answer

Academic entrepreneurship and innovation

What drives the innovativeness across Nations?

Popular belief: ethnicity

Sociologists: religion

Social-psychologists: National culture

Geographers: distance from the equator

Legal scholars: Intellectual property

Economists: Inputs

Policy makers: Government policy

UKM findings: Internal culture of the firms

UKM: Established on 18th

May 1970

Main Campus on 1,100 hectares; Kuala Lumpur

campus on 20 hectares; Medical Centre on 22 hectares

UKM‟s Motto: Inspiring futures, nurturing possibilities

Staff: Total: 1,798 (181 professors; 326 associate

professors, 1051 lecturers, 174 tutors and 66 teachers)

Management and support staff > 7500

Student population since its inception in 1970 until

2013: 146,362 graduates; 2937 PhD and Masters;

International students from 42 countries



– 27th


Faculties (13) 1. Faculty of medicine

2. Faculty of science and technology

3. Faculty of health sciences

4. Faculty of information science & technology

5. Faculty of social sciences and humanities

6. Faculty of law

7. Graduate school of business

1. Faculty of economics and management

2. Faculty of pharmacy

3. Faculty of engineering and built environment

4. Faculty of education

5. Faculty of Islamic studies

6. Faculty of dentistry

Research Institutes

• Institute of Malay World and Civilisation (ATMA)

• Institute of Environment and Development (LESTARI)

• Institute of Systems Biology (INBIOSIS)

• Institute of Islam Hadhari (HADHARI)

• Institute of West Asian Region Studies (IKRAB)

• Institute of Ethnic Studies (KITA)

UKM Graduate Students Statistics Enrollment 28 February 2011

PROGRAMME LOCAL STUDENTS INTERNATIONAL STUDENTS TOTAL

PhDs 1,793 1,367 3,160 (31.5%)

Masters 5,763 1,118 6,881 (78.5%)

OVERALL TOTAL 7,556 2,485 (24.7%) 10,041

UKM Transformation phases



– 27th


Innovation Strategy

Towards Sustaining the Ecosystem

Infrastructure: Online IPR System

PIK

Agreement

UKMTech

• STU

• Licensed to 3rd

Party

• Joint Venture

• Strategic Alliance

• Outright Sale

Lab-to-Market Gap Funding: INNOVATION FUND • Improves α-prototype to commercial prototype and market testing/requirement/ regulatory compliances;

• Develops the product along with commercial collaborator

• Pilot, scale-up and technology demonstration;

• Market Validation and Acceptance;

• Undertake activities that encourage close collaboration between researcher and commercial partner in term

of product development and financing



– 27th


Critical success factor for commercialization is market/sales

It is imperative that R&D initiative incorporates into its decision making process some commercial considerations

UKM R & D & C in relation to NEM (ETP)

The Research University in the Innovation Economy



– 27th


Mission of a Research University

Excellence in student education • World-class research

• Create positive societal benefit

• Foster innovation and entrepreneurship

• Encourage in regional economic development

• Leadership in technology commercialization

“Technology commercialization should support the mission of a research university”

Ref: Radcliffe & Stevens (2013). Tech transfer and licensing agreement. NCET2 Course on Commercialization of

Technology. http://center.ncet2.org/images/files/RCC_Nov2013/lec5_stevens-radcliffe.pdf

Research Universities play a major role in the New Economy

- University research needs to be aligned to new Innovation-led economy and contributes to National Key Economic

Area (NKEA)

What is Innovation? Innovation = technology + entrepreneurship. Commercialization of new ways of problem-solving by combining: technology:

improvements in product, process, marketing or organization; & entrepreneurship to turn ideas into wealth.

A continuum of activities

New-to-the-world, new-to-the-market vs. new-to-the-firm

Disruptive vs. incremental adaptation of existing technologies

Privately-driven vs. requiring public-private partnerships/subsidies

Successful implementation of creative ideas

Creativity is the production of novel and useful ideas by an individual or small group of individuals teaming up

Implementation refers to the methods use to put the creative ideas into practice

Innovation = f ( creativity , implementation )

Value Creation in Innovation-Led Economy is Greater than Linear Growth under Resource-Led Economy



– 27th


Universities can be catalysts of economic growth

• The New Economic Model identifies innovation and entrepreneurship as the next source of growth assets

that we have in our human capital and R&D portfolio is not being made available to the market soon

enough, or at all.

• So how do we unlock the value of this huge untapped wealth, of uncommercialized R&D?

Other deliverables?

• To value-add research findings by considering the innovation value chain seriously; the potential impact of

research is not only to science but also to science business.

• University As Engine For Innovation

Research & Innovation Ecosystem in UKM

Research Management Centre. Technology Transfer Office. Technology Transfer Company (UKMTech)

that report directly to the Deputy Vice-Chancellor (Research & Innovation)

University Technology Transfer Office

Turning R&D into profits: Commercialization of R&D/Innovations

Vision: To be a leading Innovation & Technology Transfer Centre in the country

Mission

1. To inculcate the culture of innovation on UKM Campus

2. To promote transfer of UKM technology, know-how and innovation for wealth creation & societal well-being

3. To develop new enterprises from technological research & innovation & create value/multiplier effect to economy

Why do we do this?

• Transfer knowledge out of the university to benefit society and country‟s economy (increase impact of research)

• Create jobs within new start-ups

• Bring in new research funding, particularly industry/agency sponsored research

• Raise the profile of UKM

• Meet metrics as mandated by government

• Create financial returns for UKM and academic inventors (when technology/products/services are successfully

being sold, share profits in the form of royalties, maybe the sale of shares in successful start-up companies)

Policies on commercialization of research have been put in place

UKM IP and Commercialisation Policies: IP Main Policy (2010). Student IP Policy (2010) & Associate IP Policy

(2011). IP Commercialisation Policy (2011)

Bringing R&D Results to Marketplace



– 27th


Reward System: IP Commercialisation Policy

Nett commercialisation revenue may be distributed between Originator, UKM and UKMTech as follows:-

Nett Commercialisation Revenue (RM) Originator UKM Faculty/ Centre/ Institute UKMTech

First RM250,000 70% 5% 5% 20%

Next RM250,001 to RM1,000,000 50% 10% 10% 30%

Next RM1,000,001 and above 40% 15% 15% 30%

Source: UKM’s IP Commercialisation Policy 2011

TTO’s Objectives & Roles

MARKET-DRIVEN RESEARCH INITIATIVES

ETP RESEARCH FUND

• To realize UKM role in promoting government aspiration in the implementation of New Economic Model

(NEM) which is driven by Innovation and:

• To strengthen UKM role in creating Innovative Human Capital from secondary to tertiary level.

INDUSTRY CHALLENGE RESEARCH

• To carry out “Market-Pull” research that results in solution for the industry in the form of technology,

product development and innovation

• Solving the “Market Pains” and helping SMEs to increase global competitive edge.

R&D INNOVATION STUDIES • To mitigate funding gap between proof-of-concept (PoC) and Prototype in order to interest industry taker /

investors to bring the research outcome to marketplace;

• Creating alpha or beta prototype.

• To facilitate researchers in identifying market needs in order to mitigate technology risk and will increase

the commercial potential and probability.



– 27th


IP Protection 2010-2013

Current Challenges

• Need not only more IP in the pipeline, but also IP that more closely meets the needs of industry • PIK plans to provide hands-on support and introductions to facilitate greater interaction between

researchers and industry partners

• This activity needs to link into existing efforts by UKM to work with industry in Malaysia and overseas

Business Models

• Assignment (outright sales) - Transfer

of legal and beneficial ownership

• Licensing:

-Exclusive, Non-Exclusive, or Sole

• Start-up/Spin off company

• Joint Venture / Industrial Collaboration

• Other: e.g. Unincorporated JV, OEM,

Distributorship, etc.

Scenario

• Since 10-20 years ago it has become common to try alternative

pathways towards commercialization of new innovations

• Technology Transfer Offices (TTO ) has spun-out innovations

into stand-alone start-up ventures with the help of external

venture capital funds and/or internally-generated seed capital

UKM Start Up Companies • As of 2012, 30 start up companies were formed to commercialize

research products. Current Status (5 STUs at Market Entry, 10

exit as spin-off and 15 under incubation)

UKM TECHNOLOGY SDN BHD UKM is currently intensifying its effort and focus on commercialisation of its Research and Development as part of

its objectives as the Research University in Malaysia. It is doing this through UKMTECH, which is the Technology

Transfer Company of Universiti Kebangsaan Malaysia, entrusted to accelerate the commercialisation of UKM‟s

R&D and IP into the market.

Vision: To be an effective Technology Transfer Company

Mission: To accelerate the commercialization of UKM‟s Intellectual properties

Symbiosis programme

The Symbiosis is a joint Graduates Entrepreneurship Programme between UKM and MTDC to promote

commercialisation of public-funded Research & Development (R&D). The objectives of the Programme are:-

• To promote the commercialisation of R&D output of public universities and research institutions;

• To increase the number of technology-based start-ups;

• To equip fresh graduates with entrepreneurial skills; and

• To provide employment for fresh graduates in a technology-based industry set-up.

The symbiosis engagement:

• UKM to provide TECHNOLOGY (+ technical consultation)

• MTDC to provide FUNDING (+ nurturing entrepreneur)



– 27th


UKM Commercialisation Roadmap

© Universiti Kebangsaan Malaysia 2012. All Rights Reserved

Typical Arrangement of a University Start-up Equity

© Universiti Kebangsaan Malaysia 2012. All Rights Reserved

Capacity Building Programme (Since 2010 to 2013): Academic Entrepreneurship course and text books have

been developed and are on offer

Universities are looking out from their ivory towers

• Collaboration will help universities focus their research on the wider needs of society and industry

• Companies are beginning to pursue their long-term strategies through collaborations with universities - create

value by partnering with universities

• Collaborative research is often focused on difficult issues and often related to long-term research -to mine

knowledge and technology generated by universities

• Research Universities can play a major role in new economic model

• Ensure Good science and GLP in order to translate R&D into innovations

From R&D to Business

• We are not counting on a commercialisation bonanza in the foreseeable future!

• When it comes to patent-based licensing and/or selling intellectual property (IP), most universities do not

generate enough income to cover the expenses of their technology licensing office

A radical shift in academic culture is inevitable

It is necessary to introduce initiatives to bring about a cultural shift within the academic community to:

(i) inculcate the concept of entrepreneurship in undergraduate and graduate education and

(ii) transform the traditional technology transfer process into a technology-driven innovation exploitation process.



– 27th


2.7. TECHNOLOGY TRANSFER – THE FRIM EXPERIENCE

By Mohd Shahidan Mohamad Arshad. Email: [email protected]

Venue: FRIM-MTDC Technology Center, FRIM

About Forest Research Institute Malaysia (FRIM)

•Awarded ISO 9001: 2001/2008 accreditation

•Five research divisions:

–Forestry and environment

–Product Development

–Biotechnology

–Natural Products

–Conservation of Forest Biodiversity

•With 5 other supporting divisions

•Interconnected through:

–Research Planning & Corporate Division

Innovation & Commercialisation Division “ICD”

• 1996 Corporate Affairs Division was formed

• 2003 Business Development Division

• 2006 Business Branch

• 2009 Innovation & Commercialisation Division

Main Function of the ICD

•To generate IP and R&D outputs with commercial value

that meet market needs

•To commercialize R&D outputs to interested parties

through transfer of technology

•To provide consultancy services to interested parties esp. in

regards timber forestry and environment

FRIM Strategic Commercialisation & Roadmap

Strategic Commercialisation objectives: •Generate scalable & sustainable revenue base to

boost FRIM‟s commercial performance in markets

•Contribute to the performance of the forest-related

industry in Malaysia;

•Create economic value to Malaysian economy &

promote Malaysian competitiveness in the forest-

related industry

Operational objective: •Implement market-driven commercialization programmes

supported by integrated research and business model.

Challenges:

Broad approach in R & D focus areas that could be

minimized by driving transformation of major revenue;

from non-strategic services to strategic services.

Recommendation: FRIM should focus in few areas where

it can excel in world class standard especially on the

„cutting edge‟ standards

Strategic Thrusts of Commercialisation Programs

•Build competitive technology intelligence capability

•Develop a few deep focus area to secure early wins

•Develop Strategic Licensing Programmes as part of

IPR strategy

•Develop a Partner-centric Distribution model as part

of its channel strategy

Types of IPR Management

1. Patent. 2. Trademarks

3. Copyrights. 4. Industrial Design

5. Trade Secrets. 6. Plant Variety*

Commercialisation Strategies

STRATEGY 1: Intellectual Property (IP) Management Sub-strategy: R&D findings for potential IPR

STRATEGY 2: R&D Commercialization Sub-Strategy: Licensing program as an integral part of the

IPR initiatives

STRATEGY 3: Producing New Companies Sub-Strategy: Spin-off, start-up and joint-venture initiatives

IPR Data 2007 - 2009 2010 2011 2012 2013 Total

Invention Disclosure 46 15 36 30 26 153

Patent filing 7 18 10 11 6 52

Patent granted 2 1 1 2 5 11

Trademarks (FRIM)* 2 8 4 14

Industrial Design 4 4

Patent or publish: Our answer – 3 months Integrating Patent Searches

• Finish project Project Proposal Preparation RO/Div. Dir.

• Decide on patent filing – 3 months Project Evaluation by Panels RePP

• Submit publication Project Approve PEM

• Negotiate to commercialise Project Monitoring RePP

-Patent granted –Publish –Commercialise Project Completion PEM/ICD



– 27th


FRIM Commercialization Process

1. Interested Parties Contact Innovation and Commercialization Division

2. Information Sharing ICD will:

• Send additional information about technology or

• Arrange meeting with the inventor(s).

• Send reprint of recently published technology,

• Send a link if a patent has been issued on technology

3. Technical Discussions • Meetings to discussing technical aspects of the

technology and how it might fit with company.

• A licensing officer from ICD may also attend if

licensing issues will be discussed.

4. Non-Disclosure •If the technology is yet to be published and/or you

would like to discuss the technology in details with the

inventors, will require NDA.

•Where an exchange of material is necessary (as in many

biological and chemical technologies), a Material

Transfer Agreement (MTA) will need to be signed.

5. Negotiations & Agreement Signing •Interested in licensing a technology from FRIM,

licensing officer from ICD will discuss /negotiate

•different types of licenses available and

•Request for due diligence materials. If you will also be

sponsoring research at FRIM, the licensing officer will

make sure you have the right contacts.

•Rights available which may include option, non-

exclusive in a field of use, among others.

•The licensing officer will then send a draft of an

agreement for review and signature.

•Once an agreement has been executed, ICD will send

an original copy of the license.

6. Technology Licensing On execution of agreement:

• The inventors will provide the technology.

• Depending on how the agreement is set up, the

inventor(s) may assist in providing initial consultation

after delivery of technology.

• To facilitate the implementation of the technology,

inventor(s) can be appointed as company consultants.

Types of Commercial Agreements

1. Technology Licensing Agreement. 2. Outright Sales Agreement.

3. Option Agreement. 4. Commercialization Agreement

Pops (Parallel Oil Palm Strand) Lumber

•World Intellectual Property Organization (WIPO)

Best Invention Award, Geneva (2008)

•Patented: MY-144683-A: Artificial Lumber Block

FRIM - SPPTe •Green products from natural fibers. •FRIM begins

to use biodegradable products for food container,

paper bags and envelopes; No Plastic, No

Polystyrene.

High Temperature Drying (HTD) System

For treating rubber wood using high temperature drying

Consultancy Services

These are all kinds of advisory services, professional services

and expert services provided to the interested parties.

•Mission is to disseminate information on research services

to the interested parties especially to the forestry sector and

forest-based industries.

•Outcome of the consultation can be in the form of analysis,

design, reports, papers, software or products.

Incentives

Incentives To Researcher 8. Innovations

Awards: International

9. Innovations

Awards: National

1. Invention Disclosure RM 100 Gold: RM 1,500 RM 1,000

2. Patent Filing RM 1,000 Silver: RM 1,000 RM 500

3. Patent Granted RM 5,000 Bronze: RM 500 RM 250

4. Licensing Fee 50%

5. Royalty Fee 50%

6. Publication Award: Individual RM 500

7. Publication Award: Division RM 1,000

2.8. FRIM–MTDC Graduate Bio-Entrepreneur Development Programme (FMBioSis™)

The Objectives

•To expose local graduates to the potential of biotechnology and the opportunities available to bio-entrepreneurs.

•To expedite transfer of technology for development of biotechnology as a new economic catalyst for the country.

•To establish more entrepreneurship programme for graduates in the country, create job opportunities in

biotechnology sector and minimize reliance on employment in the public and private sector.



– 27th


•To foster and strengthen partnerships between entrepreneurs and research institutions (especially FRIM) to

accelerate the development of research-based business industries.

•To acquire knowledge and enhance entrepreneurship development programme as well as value-added services

towards the development of better programme in the future.

Under this Entrepreneurs Development Programme:

•FRIM as the technology and expertise provider, whilst

•MTDC provides financing & nurturing of graduate-entrepreneurs.

•In addition, MTDC is also providing value added services such as

market development, fund raising, business development, financial

planning and sourcing and development of business plan.

Functions/Services/Products: •To develop qualified graduates to become bio-entrepreneurs

•FRIM as the technology provider;

•MTDC as the sponsor.

•FRIM to found spin-off companies

Potential Market Deliverables in Natural Products Industry

Quality planting

materials

Working group/ Task

force needed

Quality raw materials

Potential MTDC

fundings/supports &

FRIM Technological

Services Multidisciplinary

Approaches

Quality extracts/

ingredients

Quality products

2.9. SYMBIOSIS ENTREPRENEUR EXPERIENCE

By Mohd Ramdan Parman

Ciéra® Eco Friendly Multipurpose Disinfectant

1 Litre Packaging

5 litre packaging



– 27th


Product Features & Benefits FEATURES ENEFITS

• Kills 99.9% superbugs and common food

contaminant microbe

• Protects the consumer from infection by multi drug resistant

pathogenic microbes and food poisoning.

• Eco-friendly products (SIRIM Eco-Label

certified)

• Green technology – Highly biodegradable product. Preserve the

food chain and protects the environment

• Plant based active ingredient (Triclosan &

Hippochlorate Free)

• Peace of mind by not using harmful and or corrosive chemicals.

• Natural based (formula) ingredients • Safe for use – no harmful (toxic /carcinogenic) chemicals.

• Non-irritant to the skin • User friendly

• Convenient, time and energy saving. • Non rinse, cleanse and disinfect at the same time

2.10. UKM SYMBIOSIS ENTREPRENEUR EXPERIENCE

By Dr. Khairul Idzwan Baharin. Email: [email protected]. Facebook: Khairul Idzwan Baharin

CEO/Managing Director, Cell Tissue Technology Sdn Bhd

MyDerm™

Skin substitute, used in treatment of:

• Chronic non-healing ulcers, i.e. diabetic foot ulcers, bedsores

• Large skin loss, i.e. severe burns, trauma

• Other skin & medical cases

• Outstanding features:

Autologous

• Bilayered, i.e. dermis + epidermis

• 3D – HPD biomaterial as scaffold

• Mimic native skin – growth factors, proteins and other biochemicals

As ultimate alternative for conventional SSG (gold standard):

• Less pain, better cosmesis, faster healing, improve quality of life

Share holding percentage

Shareholders Nationality %

UKM Malaysian 40%

Prof. Dr. Ruszymah Hj. Idrus (Inventor) Malaysian 30%

Dr. Khairul Idzwan Baharin (CEO) Malaysian 30%

TOTAL 100%

Advantages of Incubation/Biosis programme

• In-house existing and potential patients, i.e. MyDerm™ consumers

• In-house expertise/doctors who know, understand and embrace the whole concept of MyDerm™

• In-house facilities – complete with hospital setting and state-of –the-art cGMP lab to ensure quality

• In-house researchers – for further refinement, upgrading and troubleshooting of the product

• In-house manpower

• In-house infrastructure

• In-house interdisciplinary support

• In-house trust, believe, hope, faith and courage

CONCLUSIONS AND RECOMMENDATIONS

The secret behind the success of the Malaysian technology commercialization and industrialization model is

extensive inculcation of this culture, funding, organizational structure, attention to detail, training, mobilization,

collaboration, teamwork, coordination, synergism, integration, resilience, brilliance, and commitment of staff and

government at each and every level, department, centre and unit to enhance focusing and achievement of expected

and profitable results. Success is also helped by the mix of passion, dedication, knowledge, technology, innovation,

conviction, support, investment and nurturing. Chuka University and the Government of Kenya should seriously

borrow a leaf from these practices and implement the same in order to succeed in their own Visions and Plans.

mailto:[email protected]

Date post:	27-Jul-2018
Category:	Documents
Upload:	duonglien
View:	242 times
Download:	0 times