Anthony T. Eyton

Enhancing commercialization at the interface

By Dr Anthony T Eyton

Commercializing Canadian technology. It is the topic of great discussion and much debate these days in Ottawa and elsewhere. What is it? What drives it? And what common factors exist in commercially successful economies?

One commonly used definition of commercialization is: The process by which new knowledge and technology are transformed into economically successful products, processes, or services.

I agree that this is at least a partial definition but there is an essential element not mentioned. Commercialization is about people. Further, the process is unlikely to be successful unless driven by a market opportunity. A slightly tweaked, more accurate definition would read: The process by which people, responding to markets, transform new knowledge and technology into economically successful products, processes, or services.

WHAT DRIVES IT?

People drive commercialization. The most innovative ideas and useful technologies will not move beyond the lab if people are not interested. And it is people on both sides of the innovation equation, both researcher and end-user, who make it happen.

It is an interactive pathway that requires a mix of processes, resources and services, but which is dependent on people being open to adopt new technology and to develop it. The encouragement of a culture that welcomes new technology puts companies in a more competitive position and provides a market for the exploration of new technologies.

Governments in Canada have done a good job stimulating the technology supply, principally by supporting university research. This is important, but we need to pay more attention to demand. Companies know what their problems are and what they can’t do today. But various indicators point to low private sector demand for research and for research outputs of leading edge technologies.

Governments can do a number of things to stimulate demand: provide a supportive tax environment; break down any real barriers to the flow of private capital to companies; improve access for firms to business resources; and, attend to the business issues that determine success in commercializing new technologies.

The development of a commercially viable technology requires a robust pathway between customer and researcher. Having a user as part of the research team sets up this pathway. Collaborative research teams that include end-users can be expected to develop new, market-driven applications. A collaborative environment helps ensure that R&D is market-relevant from the concept stage.

A CURE-ALL SOLUTION?

As convenient as it would be, there is no universal cure. Different sectors and different technologies may require different processes, supports and incentives. For example, commercializing a robotic work cell for manufacturing calls for a different approach than commercializing a new drug.

There are, however, some things that are known to have positive effects, and some things that transcend sectoral boundaries.

First, successful commercialization is rooted in a strong culture of innovation. Commercialization is part of the innovation cycle, and some innovation happens during commercialization.

Second, enabling technologies such as information and communications technologies, nanotechnology, advanced networks, microsystems, intelligent systems and biotechnology have capacity to build a stronger economy. Companies that supply these technologies tend to be research-intensive. The technologies themselves are in demand on a commercial level, both in Canada and beyond our borders. More than that, they increase productivity and have a wide spectrum of applications in different sectors. They provide a platform upon which specialized technologies are built, for virtually any application. Their impacts are both deep and broad: deep because of the potential for disruptive effects; broad because of the incremental effects on many companies as a result of diffusion across sectors.

Third, collaborative R&D boosts the return on research investments. Including an end-user changes the way in which research is conducted and communicated, thus providing the necessary link between the research project and the commercialization process. Finally, 4th Pillar organizations develop and foster a culture of innovation. Operating at the interfaces between research and the market, they foster partnerships and open communications among government, academia and business. Structured as independent, not-for-profit entities, 4th Pillar organizations lever private and public investment to implement shared-cost R&D programs; develop shared R&D infrastructure; and build and support communities of interest. By promoting the sharing of knowledge and risk, they stimulate demand for research and for new ideas.

NOW WHAT?

We know what commercialization is and what drives it. So what now? Increase the focus on the demand for technology. But see the big picture. Recognize that commercialization is a continuum involving business, universities and governments. All parts of the system must be strong and inter-linked.

Emphasize the development of enabling technologies. With multiple applications, they have the ability to boost productivity and efficiency while reducing cost. When applied in fields such as health care and the environment, they deliver widespread social benefits.

Direct resources to the interfaces between the market and the research system, where the relationships, collaborations, and flows of knowledge and technology happen – both within and between communities. At these interfaces, high levels of leverage and rapid diffusion of technology are possible.

Continue to encourage start-ups, but pay more attention to growing them into sustainable world-class companies. This is especially important where the nation’s investment in enabling technologies is in the hands of small, young companies – they need customers, partners, skills and business resources to be experts at commercialization.

Structure funding programs to operate close to the market and to respond nimbly to market changes. New technologies and opportunities arise daily and a responsive research program culture will foster the development of a greater number of viable technologies.

Keep and expand the models that work, retire those that don’t, link things together better, and fill the gaps in between.

Anthony T. Eyton is the president and CEO of Precarn Inc. He can be reached at eyton@precarn.ca.