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> Commercialisation
Commercialisation process in general
Introduction
Each business will have its own views and processes relating to
commercialisation of innovation. Generally speaking though,
the process should include the steps of market research, creation
of the innovation, protection of the intellectual property relating
to the innovation, and extracting value from the innovation.
Funding and other resources are usually required to execute each
step.
Market Research
Before serious money is spent on developing an innovation a
fundamental question must be asked. Is there a need in the
market for this product or service? Based on the competitive
situation and market characteristics, what return could be expected
from the innovation and does this make development viable?
Patent searching should be conducted to determine not only
freedom to operate, but also to determine competitor technology
trends and to identify any possible R&D savings.
Creation
The essential question in this phase of the process is whether
to create the innovation from scratch in-house, to acquire it from
a third party (by way of sale or licence), or to partner with a
collaborator to develop the innovation jointly.
This decision will depend upon:
- The core competencies of the business in the relevant
field;
- The amount of money and other resource available to the
business;
- Whether competitors are active in the field and/or have
competing technology or prior intellectual property rights;
and
- How quickly the innovation is required.
For example, a business lacking a significant in-house R&D
facility may lack the science competencies required to develop the
innovation in-house, and accordingly will contract out development,
enter into a collaborative joint venture, or buy or licence the
innovation from someone else. If the innovation is required
very quickly to capitalise on a first to market opportunity, then
licensing the technology from offshore may be a suitable
option.
Value Extraction
The options for extracting value from intellectual property
pertaining to an innovation, apart from strategically holding the
intellectual property (and not actively commercialising it), can be
summarised as:
- Direct investment to manufacture and market
independently;
- Selling outright to a third party;
- Licensing a third party to commercialise;
- Partnering in a joint venture; or
- A combination of the above.
Exactly how value will be derived from innovation will depend on
the strategies of the business, its core competencies, its attitude
towards risk, its desired rate of return on investment for the
innovation, its available resources, the strength and nature of the
protection obtained for the innovation and the competitive
landscape in the relevant market.