When a new technology with the potential to be commercialized reaches a sufficient level of maturity inside a university or research organization, there are mainly two paths to consider: licensing the technology to an existing company or creating a new spin-off company around the technology and the founding team. These options are weighed carefully during business development activities on a case-by-case basis.
Some of the factors that are considered include the preferences of the academics involved, the core know-how, the commercial interest of potential partners, the project’s financing needs, the industry type, and the activities or resources required for successful commercialization. The reality is that a choice between the two paths seldom exists. In most cases, only one of the two options is feasible given the constraints imposed by these factors.
When committing to any of the two paths, one must realize that they carry radically different implications. In particular, one crucial difference is the level of involvement of the inventors and the team that has nurtured the progress and growth of the invention up to that point.
If the spin-off is created, the inventors and the team retain the responsibility of pushing the technology further and maintaining control over the new developments. On the contrary, if the technology is transferred to an existing company that adopts it, then the adopter is in charge of the decision-making. In this second scenario, academic inventors must endure the practice of technological detachment, letting go of the technology they invented.
Serial entrepreneurs are no strangers to the practice of detachment since the product-market discovery process already requires it. As different applications are considered, academics go all-in into them but must remain flexible to pivot if critical learnings show that any of them is not the right fit for the technology. Pivoting is necessary but this type of application detachment is more straightforward than core technology detachment as it only involves leaving behind a specific use case and inventors can continue exploring alternative cases with the underlying technology.
Letting go is a natural process that many of us have experienced with people, places, or objects we have loved and cared for. Detaching ourselves and moving on can be challenging, especially after emotionally bonding through shared experiences and investing substantial amounts of time and effort into something.
Academic entrepreneurs dedicate months, years and decades to crafting their technology – protecting it, expanding it, and uncovering its benefits and limitations. The more fundamental the invention, the greater the effort and involvement required, resulting in a stronger attachment.
When the time comes to transfer the technology to a third party through a licensing agreement, academic inventors must undergo the process of technological detachment. This is a moment of joy and celebration, as it signifies that the invention is valued and driven forward by others, bringing it closer to impact. Only a select few technologies reach this stage, making it a significant success. However, on the other side, this moment can be perceived as a loss – a loss of control over the technology’s destiny.
Technology transfer is an inherently asymmetric process. While it can bring learnings and benefits to parties on both sides of the transfer, there is a clear directionality: one entity transfers the technology to the other. It’s akin to a relay race where, for a brief moment, both entities run in the same direction, but eventually, only the receiving party continues running with the technology and the other is left behind.
The responsibility of the inventors for what happens next is reduced, but also their capacity to make decisions. The inventor team loses the capacity to prioritize the next steps and decide on the best strategies – everything is left in the hands of the receiving party. Managing this loss is a process that requires time to accept and adapt.
During the process of technological detachment, confidence and conviction that change is for the better can be essential for academics. Technology transfer is necessary to extend the impact of inventions; without it, technological advancements risk stagnating within the confines of the laboratory.
Academics must acknowledge that commercializing a new technology is a complex endeavour and requires resources, capabilities, and knowledge different from those needed to invent, define and mature a new technology. Therefore, in many cases, involving a party expert in these activities with the required resources is the best approach since it significantly increases the chances of success.
The benefit is that the practice of technological detachment by the inventor team is vital to creating space and time to explore new opportunities and immerse into new scientific adventures. It entails letting go of the old to embrace the new.