Title: Selecting the most appropriate commercialisation strategy is key to extracting maximum value from your R&D
Authors: D. Walwyn
Addresses: Group Research Manager, CSIR, PO Box 395, Pretoria, 0001, South Africa
Abstract: Business organisations are presented with many options in the commercialisation of the outcome of a research and development project, including licensing, in-house product launch, direct sale of a technology packaging or spinning off a new venture with other investors. In this article, a simple framework is introduced that can be used to select a suitable commercialisation strategy according to two parameters of the innovation, namely its strategic fit and the estimated value or risk-adjusted net present value of the opportunity. The use of this framework is illustrated with two examples, the first involving the development of a new product that is a significant innovation on an existing process or product line, and the second being the commercialisation of a biopharmaceutical. In both cases, the option of licensing is explored, and a further technique for identifying the most suitable point for the license event is presented.
Keywords: evaluation framework; licensing; risk adjustment; venture creation; R&D commercialisation; research and development; commercialisation strategy; innovation; strategic fit; net present value; new product development; biopharmaceuticals.
International Journal of Technology Transfer and Commercialisation, 2005 Vol.4 No.2, pp.162 - 171
Published online: 04 Feb 2005 *Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article