Scientists and science are at the heart of a process that must aim to make a real difference by addressing a need within society. This process is commonly referred to as technology and knowledge transfer. The aim is to establish a mechanism that brings together coordinated actions between the various players involved, working in a collaborative manner. This is what makes this entrepreneurial initiative so valuable. If the process is designed properly, the transfer process will proceed smoothly, market entry will be achievable, and a return on investment will also be possible. It therefore seems clear that this sought-after transfer cannot be completed alone.
This definition of the transfer process has been simplified here for ease of understanding, but in essence it is more complex. Generally speaking, the origin lies with the scientists and the science they pursue, but it is not always clear why the decision is made to pursue one scientific line of inquiry rather than another. These factors include the capabilities of scientists, the potential for applying the scientific method, the needs of society, and the decision to prioritise one specific need over others. Behind all these processes, ideas and decisions are people with skills, knowledge, contacts, or access to financial resources.
An entrepreneur-scientist must be willing to seek guidance throughout the process from people who can contribute and complement everything the project needs to move forward. For this to work, mutual trust among all those involved is essential. Another key factor is passion, which is the driving force that enables us to stay on course and overcome the difficulties inherent to a long and complex journey. The group of players should guide this initiative, which originated with the scientist-entrepreneur, towards areas where there are promising opportunities, so that it can evolve into a more ambitious project with real scope—sometimes even exceeding what was initially envisaged. As a result, the passion doesn’t fade: it grows.
It is true that Spain has on many occasions been a source of scientific and technological talent exploited by other international players, with the promise of meagre rewards or, at best, a small payment. Nevertheless, it is also well known that our scientists and entrepreneurs have enormous potential. Consequently, the potential to bring valued assets to market, without relinquishing control over them, is also considerable and well within reach.
Among the key players who must support the entrepreneur throughout this process, particular mention should be made of so-called venture builders, experts in industrial and intellectual property strategy, and the investors themselves.
A good venture builder is a role comprising a multidisciplinary team responsible for product development, market validation, customer acquisition, securing funding and the growth of the start-up. Furthermore, it has a valuable network of contacts, experts, partners and potential investors that facilitates scaling up. All of this must be done whilst respecting the entrepreneur and providing them with the necessary resources to ensure that the new business can establish itself in the market, generate revenue, scale up and, ideally, make a positive impact on society.
None of this will amount to anything if this scientific venture—ideally guided by a good venture builder—neglects or lacks the focus to build a moat that is as wide and secure as possible around the business being built. This moat is, without a doubt, intangible assets.
Industrial and intellectual property provides protection and strategic positioning tools that enable a company to enter into negotiations from a stronger position and enhance its ability to control the exploitation and commercial use of the new company’s business assets. Among other benefits, a sound strategy could enable the collection of royalties, thereby improving EBITDA, or the adoption of various forms of commercial exploitation, switching between them as required. For example, a realistic option is to market the proprietary technology in markets where it has a strong position and enjoys a high level of trust, whilst keeping strategic capabilities open in markets where the company remains uncertain for various reasons. In the latter case, it could choose to allow its competitors to exploit the technology in return for a share of the profits.
In scientific entrepreneurship, unchecked passion—or passion that is overly dependent—can lead to failure. There is no doubt that the optimal valuation of the assets, the project and the company is a key factor in initiating negotiations that can yield benefits, thereby avoiding the frustration of having fed the greed of third parties whilst leaving meagre returns for the institutions and individuals who were the driving force behind the venture. This, among other key aspects, must be achieved through a conscientious and growing culture of entrepreneurship and expert support, guided by best practice in the use of industrial and intellectual property rights.
Written by: Rafael López. Head of Technology Transfer and Director of the PONS IP Office in Valencia
