Product Development and Tech Parks

Promoting Start-ups in a Global

Market Place: the Role of

Technology Parks

David Baker

Executive Director, University

Technology Park at IIT

Perm, Russia, May 7, 2014

Outline

•The product development cycle

•Technology parks: overview

•University Technology Park at IIT

•How incubators and technology parks help startups

•Advanced Cooling Therapies: case study

Product Development Cycle

•Idea, invention, discovery

•Determine the market need

•Protecting intellectual property

•Proof of concept, prototyping

•Business plan-go to market strategy

•Building a team

•Determine first markets, first products

•Funding strategy

•Production and distribution strategies

•Globalization strategies

Expanding to a New Market

•Understand the need in the market you are entering

•Understand regulatory constraints—laws regarding product approval and sales, repatriation of funds, legal status

•Establish an international sales force that understands the market

•Seek support from collaborating technology parks

Raising Money for International Tech Start-ups

•Private funding sources want access and control

–Extremely hard for a foreign based firm

•Best to work to create a joint venture or subsidiary in the target market

•Look for government programs promoting partnerships—eg of EU RYME project

•Need to be meeting a market need

Defining University Research/Technology

Parks

•Property master plan—for commercialization of technology

•Linked to university or research institution

•Support existing technology companies

•Encouraging growth of new companies

•Technology transition from laboratory to market place

•Focus on technology-based economic development

•Support industry clusters

University Technology Park at IIT: Overview

Ideally situated in the heart of Chicago

Connects companies with faculty, students and resources at Illinois Institute of Technology

Specifically designed with science & technology businesses in mind

A unique combination of wet labs & dry labs & office spaces,

accommodating companies at every stage of size and growth – from incubation to growth companies

University Technology Park Today

•24 companies-life sciences, energy, materials, ICT

•400 employees

•Three companies/graduates with over 100 employees to date

•30 graduates

•$220 million raised by companies to date

•$120 million in construction expenses

•$500,000 operating budget—from rents

UTP CONNECTIONS TO THE UNIVERSITY AND BUSINESS

DEVELOPMENT AND FUNDING

UTP provides mission-critical/wrap-around services. The online, 30-page,

UTP Services Directory includes:

Access to IIT’s “trade discount” for goods & services

Press & publicity assistance

Identification of funding sources including Angels & VCs

Support for business plan competitions

New venture services in conjunction with Knapp Entrepreneurship Center:

Start-up Services

Growth Support