COMMERCIALISATION OF DEFENCE INTELLECTUAL PROPERTY: LESSONS FROM ISRAEL

Dr. Peter. W Beven

Craig Amundsen – Lockheed Martin

Michael McCallum – QinetiQ Australia

Commercialisation – what is it??

Research commercialisation

Technology transfer

commercialisation

New Product Development

The process of delivering value from intellectual property covering the cycle from

idea through to the market

?

A broader concept of commercialisation

Basic Research

(Discovery)

Applied Research

Technological Development

Product development Launch

IndustryResearch Institutions

&Government

Collaborations

Total Investment in R&D ($US PPP)

United States China Australia Israel

1990 152.38 B 7.4 B 3.8 B 1.73 B

2010 409.60 B 177.5 B 20.47 B 8.64 B

Growth 268% 2398% 538% 499%

Source: OECD 2014

BUT... we need to get real!

Australia Germany France South Korea India Singapore UK Ireland Japan Canada Israel China0

10

20

30

40

50

60

70

80

90

100

52 2 3 3 4 5 5 6

48

63

95

Non-US Companies Listed on NASDAQ

As of May 2009.

Only since 2009

Total Investment in R&D ($US PPP)Australia Israel

1990 3.8 B 1.73 B

2010 20.47 B 8.64 B

Growth 538% 499%

VC $ $ 132.4 M (AUD)

$ 796 (USD)

RESEARCH ACTIVITY•DMO•Universities•Ros• Industry

INTERNAL•DMO•Defence• industry

ACQUISITION•DMO• Industry

SUSTAINMENT•DMO• Industry

DISPOSAL•DMO•Defence • Industry

Defence IP creation environments.. Don't just think research..

3-5% 95%

OEM

Defence

Acquisition Contract

Background IP

Foreground IP

Third Party IP

Sustainment Contract

Defence

Background IP

Foreground IP

Third Party IP

Sustainment Contractor

Defence IP creation environments.. Don't just think research..

Res

earc

h (T

P)

Dis

posa

l (D

efen

ce +

TP

)

Lessons in Defence Commercialisation from Israeli firms

Observation.. Resulted in...

Recognition that Technical excellence in defence environment does not translate to market success in civilian markets

need to invest in commercial/market capability development of people

Focus on technical excellence for Defence market not needed (to same level) in civilian markets

Creates new market opportunities not previously envisaged but need to move fast..

Defence only focus – increases greater firm failure risk for SMEs

Creation of government support programs for market diversification-Policy-$ (for whole innovation path)-Incentives- Technology transfer

Observation.. Resulted in...

Strong collaborations between defence acquisition -research- industry

• Delineation between classified and non-classified IP for exploitation into civilian markets•Proactive commercialisation support programs• Link to commercialisation expertise outside of Defence sector (civilian focus)

Strong IP management environment Effective management of IP created in defence research and acquisition

Derived from: Interdisciplinary Centre for Technological Analysis and Forecasting (Tel Aviv) supported by Israel Ministry of Defense

Lessons in Defence Commercialisation from Israeli firms

Take-away thoughts..

Israel programs to support Defence commercialisation similar in nature to US programs under Invent America Act for defence commercialisation for SMEs through technology transfer intermediaries.

Aust. Defence is an IP rich environment where commercialisation is supported by policy and general willingness but NOT actively supported by the organisation – enormous missed value for both Defence and Industry!!

US – Federal Agency Network

In recognising that traditional academic based technology transfer companies are (largely) are ineffective…

“Building A New Model for Transfer of Federal Technologies to the Marketplace”

• Patent License Agreements (PLAs)• Cooperative Research & Development Agreements (CRADA’s)• Trust Fund Cooperative Agreements (TFCA)• Reimbursable Cooperative Agreements (RCA)• Non-Assistance Cooperative Agreements (NCA)• Agreements with other Federal Agencies (Interagency Agreements)• Educational Partnership Agreements (EPA)• Enhanced Use Lease Authority (EUL)

• Exclusive Australian access agreement for direct access by Australian Defence industry firms to US DoD 120 Research Labs on same basis as US domiciled SMEs (to be launched October 2014)

Industry Project Engagements:• Project consulting by MBAs• Venture Planning projects

Australian Defence Organisations

Technology Challenges (link to 120 DoD Labs)

Access to some 40,000 Defense patents for commercialisation

Key question for industry

How can their firms best access IP to exploit for the benefit of both Defence, their organisation and local SME

suppliers

Michael McCallum – QinetiQ Aust.

Craig Amundsen – Lockheed Martin

THANK YOU

Contact: Dr Peter Beven

(peter.beven@qut.edu.au)

www.strategicip.com.au