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Unit 8 Commercialization (Final) PDF
Unit 8 Commercialization (Final) PDF
TECHNOLOGY ENTREPRENEURSHIP
(ENT 600)
UNIT 8:
COMMERCIALIZATION OF NEW
TECHNOLOGY-BASED PRODUCT
Introduction
• The word technology-based product in this unit
encompasses physical products, services and
processes.
Patent Application
Production
Commercialization Options:
Outright Sale of The R&D Output
The researcher may decide to sell the R&D output before
applying for patent rights due to any of the following reasons:
Commercialization Options:
Licensing A Patent
•Licensing a patent to an established business organization is
considered as one of the most viable means of commercializing
a new technology-based product.
Commercialization Options:
Licensing A Patent..continue
•In return, the licensor will expect financial return in the form of
royalties from the licensee.
Commercialization Options:
Patent Assignation
Patent assignation is an irrevocable exploitation right given
by an assignor to an assignee. The assignor refers to the
original patent holder, the assignee is one who receives
assignment of the patent.
Valuing a Patent
Valuing a Patent….continue
Example:
• They were not the inventors
• Had published the information about the
invention
• Had offered the invention for sale before
the date of application
Valuing a Patent….continue
Commercialization Options:
Spin-Off Into A New Venture
• Alternative to licensing and assignation, an innovator may
choose to commercialize his invention through the creation of
a new technology-based venture.
Commercialization Options:
Spin-out Into An Independent New Venture
• Besides venturing from within the established R&D institutions,
universities or established business organizations the innovators
may also have the option to leave the parent organization and
established an independent new venture to commercialized the
patent he owned. In this context the innovator assumes the role
of a technopreneur by creating a new venture independently
• 2. Strategic uncertainty
– New products are often characterized by the absence of
a proven marketing strategy. Hence firm needs to utilize
more resources in order to ensure success.
Barriers To Entry
• A new venture may face difficulty to establish entry into a
particular industry.
NEW
Technology INVENTION
Performance PERIOD Maturity
Parameters
Aging
Mature
Embryonic Technology
Growth
Period
Technology
Improvement
period
Time
TLC Stages:
New Invention Period or Embroynic Stage
TLC Stages:
Technology Improvement Period
or Growth Stage
TLC Stages:
Technology Mature Period
or Maturity Stage
TLC Stages:
Technology Mature Period or Maturity Stage (cont)