From innovation to return: recommendations for structuring technologies and generating sustainable value.
Technology transfer is often described as the final stage of innovation: the moment when knowledge reaches the market. However, when reduced to that image, the essential is lost sight of.
Experience shows that transfer is not simply the circulation of an intangible asset. It is a strategic process that requires structure, market vision and risk management. It is not simply a matter of protecting and commercialising assets, but of designing the conditions that allow innovation to generate real and sustainable economic value.
When this process is properly understood, transfer ceases to be an uncertain challenge and becomes a tool for growth.
- The legal and economic structure: the basis of trust.
Technology transfer does not end with the existence of a scientific result, as confirmed by international experience. What is decisive is the legal and economic structure that allows this asset to be transformed into a real business opportunity.1
In terms of legal structure, all solid transfers are based on a clear structure: defined ownership, a coherent protection strategy, a market-aligned exploitation model and appropriate risk allocation.
More specifically, this involves elements such as intellectual property rights (IPR), definition of the type of asset (such as patents, know-how, software, plant varieties, trademarks, etc.); non-disclosure agreements (NDAs); data protection and handling of sensitive information; TT contracts such as licences, assignments, collaborative development agreements, and joint ventures; dispute resolution mechanisms; and the royalty regime and payment terms.
In addition to these, there are other legal elements that are sometimes overlooked but are very important: Clauses on future improvements and developments; distribution of risks and responsibilities; guarantees and declarations of ownership and freedom to operate; sectoral regulatory compliance (health, environmental, phytosanitary); the applicable tax regime; and project governance (committees, decision-making, and exit rules).
With regard to the economic structure, we would have: the revenue model as fixed royalties, variable royalties, upfront payments (e.g., an upfront payment is made to access a plant variety before beginning to exploit it), milestones, which are payments conditional upon the fulfilment of a specific event (e.g., payment is made when the technology achieves ICA certification), and the adoption and implementation cost structure.
There is also the category of required investment, which is divided into two categories: CAPEX and OPEX. CAPEX is the structural investment in long-term assets that create or improve something that will last for several years, such as the installation of technical irrigation systems or the implementation of specialised software; and OPEX is the operating expenses necessary for the technology to function on a day-to-day basis, such as inputs and technical assistance services. As such, they impact the monthly cash flow and determine the actual sustainability of the project. These two categories are important because while CAPEX is necessary for implementation, OPEX is necessary for sustainability, and not taking the latter into account often leads to failure, even if the technology is excellent.
Other aspects of the economic structure would be financial viability, including financing scheme, payment capacity, expected return and sustainability over time, and, last but not least, the valuation of the technology.
A robust structure not only protects rights: it facilitates investment decisions and reduces future contingencies, which ultimately means it builds trust.
- Technological readiness: turning innovation into viability.
The market adopts technologies when it perceives viability and potential, not just novelty.
For this reason, frameworks have been developed internationally to measure technological readiness prior to commercial adoption.2 These standards recognise that transfer is, above all, a progressive process of reducing uncertainty.
In this regard, Point Five of the Guide for Technology and Innovation Transfer, published by the Ministry of Science, Technology and Innovation of Colombia, suggests that, with regard to R&D projects, an important exercise for validating the status of projects with a view to technology transfer consists of determining the degree of readiness of the technology, the market, the business and other aspects that are susceptible to verification. It refers to the following readiness levels:
• Customer Readiness Level (CRL): Verifies the market need and interest of target customers.
• Technology Readiness Level (TRL): Readiness level of the proposed technology.
• Business Readiness Level (BRL): Validates the business model and commercial potential.
• Intellectual Property Readiness Level (IPRL): Assesses and develops suitable intellectual property (IP) protection.
• Team Readiness Level (TMRL): Assesses and prepares the required human resource team with the appropriate skills.
• Funding Readiness Level (FRL): Assesses the preparation for the investment and secure funding.
• Sustainability Readiness Level (SRL).”
Given that we are a consulting firm specialising in intellectual property, at PONS IP we would like to emphasise that IPRL allows legal gaps to be identified before transfer processes are initiated, reducing contractual, regulatory and economic risks. In practical terms, it assesses whether the technological asset has a defined ownership, an adequate protection scheme, a coherent territorial strategy and conditions that allow for its secure and negotiable exploitation in licensing or commercialisation scenarios. To achieve an adequate readiness level, it is recommended to carry out a specialised evaluation—either through a Technology Transfer Office, intellectual property advisors, or internal legal teams—to structure a protection strategy aligned with market and transfer objectives.
The readiness levels outlined above, either individually or in strategic alliances, are tools for strengthening the value proposition and facilitating its adoption.
3. Strategic insertion into the value chain and market ecosystem
A technology only generates real impact when it finds its place in the productive reality. It is not enough for it to work in the laboratory. It must be integrated coherently into an existing value chain or contribute to creating a new economic dynamic.
For this to happen, commercialising knowledge requires more than just good technical results: it needs institutional clarity and a market-connected strategy.3 When this alignment does not exist, even promising developments can face difficulties in being adopted.
Furthermore, transfer is rarely an individual process. It often involves partnerships between those who develop the technology, those who know the productive sector, and those who provide resources to scale it up. The theory of open innovation has shown that organisations generate greater value when they collaborate strategically rather than acting in isolation.4 In this scenario, clear governance is what allows relationships to grow with stability and trust.
Experience and public policy guidelines in Colombia also underscore the importance of strengthening capacities and coordinating actors in the productive environment as a condition for effective transfer.5
Finally, all technology must be explainable in terms that are understandable to the market. Scalability, opportunity size, expected return, and risk management are variables that influence the decision to invest or adopt. When this translation is achieved, innovation ceases to be merely a technical advance and becomes a concrete opportunity.
Intellectual property plays a fundamental role in this process: it helps define how the value generated is captured, provides security in partnerships, and turns technological development into a clear and negotiable asset. Without this dimension, the economic impact of innovation is weakened.
In conclusion, technology transfer is not simply the mobilisation of knowledge; it is the deliberate design of an environment that allows innovation to become growth.
When strategically designed, technology is not only protected: it is projected, integrated and capitalised upon. In an environment where competitiveness increasingly depends on knowledge, understanding this invisible structure is not optional. It is a strategic decision.
From our practice, we assist companies, investors and institutions in structuring these processes, integrating protection, strategy and market vision to transform innovation into sustainable value.
Written by: Claudia Caro. Director of PONS IP Colombia
Footnotes
¹ World Intellectual Property Organization (WIPO), Successful Technology Licensing.
² NASA, Technology Readiness Level (TRL) Framework.
³ Organisation for Economic Co-operation and Development (OECD), Commercialising Public Research: New Trends and Strategies.
⁴ Henry Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology, Harvard Business School Press, 2003.
⁵ Ministry of Science, Technology and Innovation of Colombia, Guide for Technology and Innovation Transfer.
