Technology Transfer Accelerator
Meeting with universities in order to kick start inputs
to the project
European Investment Fund
Brussels, June 7th, 2004
Agenda
Presentation of EIF
Technology Transfer in Europe
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TTA-PresUniv-07Jun2004
Technology Transfer Accelerator project
Presentation of EIF
European institution created in 1994
EU specialised financial instrument for SMEs acting through:
Venture capital (fund of funds), guarantees (SME loan portfolios)
and Advisory (Complex Financial Structures)
Subscribed capital of EUR 2 billion :
- 59.6%
European Investment Bank
- 30%:
European Commission
- 10.4%: 31 financial institutions
- Rating: AAA/Aaa/AAA (S&P/Moody’s/Fitch)
OBJECTIVES
« Pursue Community objectives » such as growth,
employment, research and development, innovation,
and regional development…
« Generate an appropriate return »
Operating uniquely through financial intermediaries
(about 190 funds, 130 guarantee transactions) on a
commercial basis
Across 25 EU Member States + 3 (Candidate) + 3
EFTA countries
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SHAREHOLDERS
EIF portfolio
Situation at 31.12.2003
VENTURE
2.50 billion
CAPITAL
(135 million in 2003)
GUARANTEES
6.45 billion
(2251 million in 2003)
Number of intermediaries
190 intermediaries which have
invested in 1 800 SMEs
130 intermediaries which have
supported 200 000 SMEs
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Total portfolio in EUR
EIF mandates and resources: € 8.8 billion at end-2003
Situation at 31.12.2003
EUR 2.0bn
EUR 2.2bn
EUR 4.5bn
Facilité
ERP
EUR 250m
Venture Capital (EUR 2.48bn)
SME Guarantees (EUR 6.35bn)
Additional until 2008+
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ERP FACILITY
•
Leading EU VC early-stage/high-tech player. EIF accounts for around 15% of
early-stage market
•
Key EU provider of SME guarantees (loans, credit enhancement). Reached over
250 000 SMEs
•
Key micro-credit guarantor (EUR 180m)
•
Luxembourg, 70 staff
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EIF a leading player in the European SME finance market
Agenda
Presentation of EIF
Technology Transfer in Europe
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Technology Transfer Accelerator project
Technology Transfer critical link between a bright invention
and a business
Licensing
Proof-ofConcept /
Prototype
Spin-off
Start-up
• Tech. Transfer • Tech. Transfer • Venture Capital
office
office
Growth
company
• IPO
• Trade sale
• Incubator
• Business
Angels
• Founders
• Friends / family
/ fools
Seed capital
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R&D /
patent
Europe falling behind in research
• EU-US R&D Gap: € 130 bn every year & growing
– Public funding gap € 25 bn
– Business funding gap € 105 bn
• US has early-mover advantage in many technologies
– US built favourable environment over the years
– US reaches scale faster, crowding out smaller players
• US has advantage of large homogeneous market
– E.g. federal / state funding 90 / 10 in US; EU / national funding 10 / 90 in Europe
• US is an attraction pole
– “Brain drain”
– E.g. GlaxoSmithKline relocated research HQ to Philadelphia
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– E.g. decision by Novartis to move research operations to Boston
Multiple issues in Tech Transfer in Europe
(i)
VC community typically does not address seed stage
– Too small / too risky / too complex
(ii)
Current European technology transfer mechanisms are insufficiently developed
– Lessons to be learnt from multitude of initiatives
(iii) EU clusters do not talk to one another
– They often relate better to US clusters (Owen/Pammolli study)
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(iv) Non-European operators best at poaching European ideas
EU clusters do not talk to one another
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Biotechnology clusters: relationships between main clusters
Agenda
Presentation of EIF
R&D in Europe
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Technology Transfer Accelerator project
TTA based on simple ideas
While European research is world class, it is not commercialised to its full
potential
–
•
In particular lagging behind US
This does not necessarily mean that solution lies in mimicking US
–
A model that works in Europe must be developed
Premises: the TTA would:
•
Operate commercially and independently on European basis
•
Target advanced and emerging technology sectors
•
Find, develop and optimise European ideas from research and
academic institutions, for sale primarily to the venture capital and
corporate community
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•
Possible concept for a TTA in Life Sciences
Investors
Private funding
Public funding
(financial / strategic /
VC investors)
(PPP, EIF)
University A
IPR / royalty agreements
TTA
Life Sciences
Research
foundation C
Research
Center D
Cancer
projects
Tissue reg.
projects
€ 50 – 100 million funding
European outlook
Skill mix: tech / IP / mgt / VC
“Long enough” duration
(15 – 20 years?)
Vaccine
projects
…
…
…
…
Tech Transfer
Acceleration
…
Sale to VC / Corporate
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Tech transfer
operator B
•
•
•
•
TTA Project Planning
2004
Jun Jul/Aug Sep
Months
1
2
2005
Oct
3
Nov
4
Jan
Dec
5
6
Feb
7
Mar
8
Apr
9
 Benchmarking
 Mapping of IPR systems
 Identification of
participating centers
 Legal and tax structure
 Managing team
 Financing
 EIB involvement
Analysis of
existing situation
Legal & tax
structure of TTA
Outline of
structured
vehicle
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Key milestones
•
Not a definitive answer or a recipe but one attempt to optimize
investment in R&D/innovation
•
We have much to learn: iterative process
•
Objective: build a pilot to prove concept
•
Ideas and discussion welcome, thank you for listening!
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Conclusion
EU clusters do not talk to one another (2)
Arch Dev. Corp., Univ. of Chicago (IL)
Beth Israel Hospital (MA)
Beth Israel Medical Center (MA)
Brigham and Women’s Hospital (MA)
Cedars-Sinai Medical Center (CA)
Children’s Hospital Medical Center (MA)
Centre Nat. de la Recherche Sc. (France)
Columbia University (NY)
Commonwealth Sc. And Ind. Res. Org. (Australia)
Cornell Research Foundation (NY)
Cold Spring Harbour Lab. (NY)
Dana-Farber Cancer Institute (MA)
German Cancer Institute (Germany)
Duke University (NC)
Emory University (GA)
Fred Hutchinson Cancer Res. Center (WA)
University of Florida (FL)
Georgia State University (GA)
Harvard University (MA)
Imperial Cancer Research Fund (UK)
University of Illinois (IL)
Institut National de la Santé et de la Rech. Médicale (France)
University of Iowa (IA)
Institut Pasteur (France)
Johns Hopkins University (MD)
Ludwig Inst. For Cancer Res. (Switzerland)
University of Melbourne (Australia)
Massachusetts General Hospital (MA)
University of Michigan (MI)
MINN
MIT
MP
MRC
MSIN
NCU
NIH
NYU
OREG
PENN
PITT
PUR
SCR
SFLU
SK
STAN
TEMPLE
TEX
TJEFF
TUL
UAB
UC
UTAH
UWA
WA
WAU
WI
YU
University of Minnesota (MN)
Massachusetts Institute of Tech. (MA)
Max Planck Institut (Germany)
Medical Research Council (UK)
Mount Sinai Hospital (Canada)
University of North Carolina (NC)
National Institutes of Health (MD)
New York University (NY)
University of Oregon (OR)
University of Pennsylvania (PA)
University of Pittsburgh (PA)
Purdue University (IN)
Scripps Research Institute (CA)
University of South Florida (FL)
Sloan Kettering (NY)
Stanford University (CA)
Temple University (PA)
University of Texas System (TX)
Thomas Jefferson University (PA)
Tulane University (LA)
University of Alabama (AL)
University of California System (CA)
University of Utah (UT)
University of Washington (WA)
Washington University (MO)
Wisconsin Alumni Research Found. (WI)
Wistar Institute (PA)
Yale University (CT)
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ARCH
BETH
BETM
BW
CEDS
CH
CNRS
COL
COMM
CORN
CSH
DF
DK
DUKE
EMORY
FH
FLU
GSU
HARV
IC
IL
INSERM
IOWA
IP
JH
LUDC
MEL
MGH
MICH