The East Bay Innovation Ecosystem

How LBNL & UCB Innovations Get Commercialized… Locally

Mike Cohen Director, Innovation Ecosystem Development UC Berkeley Office of Technology Licensing [email protected] 510-643-7201 UC Berkeley Innovation Commercialization 11/18/14

Agenda: 15 Minutes

1. How UCB/LBNL Innovations Get Commercialized 2. How Can the Commercialization Occur Locally 3. Case Study: Berkeley CA 4. Q & A

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Research: How Univ Innovations Get Commercialized ? q Questions: How do university innovations get commercialized?

Ø Conventional answer is linear (research=>invention=>license =>commercialize) Ø What and/or who catalyzed the commercialization? Ø How are universities involved in the process? Ø How can universities increase innovation commercialization? q Answers: Ø Researched commercialization of >50 UCB & LBNL innovations Ø Research revealed 4 common patterns/pathways Ø Developed a useful framework based on 4 patterns Ø Developed strategies for optimizing the 4 pathways

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4Ms Framework: 4 Pathways for Commercialization

Methodically out of research Milked by corporate collaborators

Gradually out of research Morphed by team member(s) Organic Activities Opportunistically by by University & Mined entrepreneurs (e.g. MBA students) External People that scour campus

Periodically to industry by campus Marketed (e.g. PI, PR, IPMO, etc)

Systematic Activities by University Employees

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4Ms Framework: Morphed, Mined, Milked, Marketed

q Examples: Amyris, Calimetrics, CaliSolar, CellASIC, Chiron, Ensighta Security, Excellin, Fluxion Biosystems, GoodGuide, Harmonic Devices, Hybrid Wisdom Labs, Inktomi,

Integrated Diag, IntelliOne, Kalinex, Lumiphore, Mercator Med, MicroClimates, Morphed MicroFluiDX, OnWafer, ON Diagnostics, PhotoSwitch Bioscience, Redwood Bioscience, Gradually out of research Safely, SiClocks, TheraFuse, Urban Scan,

Organic by team member(s) Verimetra Med, Wireless Industrial Tech, Dust Networks, Iris AO, SiTime, NanoGripTech* q Drivers: Ø Quantity & Quality of Research Ø Ecosystem: Spin-out vs Blast-out Systematic q IP: Ø Some obtain exclusive license to improve biz plan & attract investors Ø Some ignore or abscond with IP Page 5 UC Berkeley Innovation Commercialization 11/18/14

4Ms Framework: Morphed, Mined, Milked, Marketed

q Examples: Adura Tech, Aurora Biofuels, CommandCAD, Euclid Media, MediFuel, NanoRay,

nanoPrint q Drivers: Ø Quantity & Quality of Research

Organic Mined Ø MBAs, Biz plan comp, OTL mrktg Opportunistically by q IP: entrepreneurs (e.g. MBA students) Ø Many obtain exclusive license to that periodically scour campus improve biz plan & attract investors Ø Some ignore or abscond with IP Systematic q Comments: Ø Pathway with highest growth rate Ø MBAs are the campus’s EIRs

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4Ms Framework: Morphed, Mined, Milked, Marketed

q Examples (that licensed IP): Milked Analog Devices, Nueprene (XL Tech), Google, Honeywell, Intel, Methodically out of research by corporate research sponsor Berkeley Bionics (ﬁrst morphed then milked) q Drivers: Ø Great sponsored research with optimized terms (i.e. 1st access, NERF, open source, etc) Organic Ø Off-campus corporate labs (i.e. BWRC, Intel, Cadence, Yahoo, Starkey, etc) q IP: Ø Some jointly own IP Systematic Ø Some obtain a license to legally use IP or thwart competitors Ø Some ignore or abscond with IP (why license when get know-how)

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4Ms Framework: Morphed, Mined, Milked, Marketed

q Examples: Arkal Medical, Cisco, ClimateCooler, FuelFX, Luminus Devices, Honeywell, Microchip Biotech, Renovis, Sand9, Silicon Basis,

Solexel, Vitesse, 3M q Drivers: Ø Quantity & Quality of Research Periodically to industry Organic by campus faculty & staff Ø Marketing (i.e. IP Licensing ofﬁces, University PR programs, Faculty pubs & ppts, Patent pubs, etc) (e.g. PI, PR, OTL) q IP: Marketed Ø Most obtain exclusive license to stay legal, improve BP, attract investment, or thwart competitors

Systematic Ø Some ignore IP or abscond with IP q Comments: Didn’t get morphed, milked or mined because tech or market too nascent when invented Page 8 UC Berkeley Innovation Commercialization 11/18/14

4Ms Framework: University Startups

Morphed Organic Mined

Systematic

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University Startups: Spin-outs vs Blast-outs

Examples: Amyris, CaliSolar, Chiron, Ensighta Security, GoodGuide, Inktomi, IntelliOne, Mercator Med, OnWafer,

ON Diagnostics, Safely, TriFacta, Dust Networks Morphed

Organic University Resources (e.g., Biz Plan Competitions, Mined SPIN-OUT Incubators/Accelerators, Mentor Networks, etc)

Systematic

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4Ms Framework: 4 Pathways for Commercialization

Methodically out of research Milked by corporate collaborators

Gradually out of research Morphed by team member(s) Organic Activities Opportunistically by by University & Mined entrepreneurs (e.g. MBA students) External People that scour campus

Periodically to industry by campus Marketed (e.g. PI, PR, IPMO, etc)

Systematic Activities by University Employees

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Innovation Ecosystem: Definition

Cluster of R&D-oriented entities readily accessible – including small & large corps, tech vets, entrepreneurs & early stage investors as well as related supply chains & service providers

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Innovation Ecosystem: Continuum

Cluster of R&D-oriented entities readily accessible – including small & large corps, tech vets, entrepreneurs & early stage investors as well as related supply chains & service providers

Hyper Local: Local: Metro: Regional National Global Convenient: Less than 30 minutes About 30-60 minutes walk, bike, shuttle drive + easy parking + - commuter traffic or short drive (with easy parking) Accessibility (not just Proximity) to LBNL & UCB

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Innovation Ecosystem: 4M Pathways

Milked

Morphed

Mined

Marketed

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Innovation Ecosystem: 4M Pathways Locations

Milked Depends if corporate R&D center is local

Morphed Yes, unless squander opportunity

Mined Yes, unless squander opportunity

Marketed Depends on licensee

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Innovation Ecosystem: Low Barriers to EB Exit

Milked

Silicon Valley Morphed Bay Area Regional Cluster

Mined San Francisco Marketed

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Innovation Ecosystem: Bay Area

Silicon Valley

Bay Area Regional Cluster

San Francisco

Hyper Local: Local: Metro: Regional National Global Convenient: Less than 30 minutes About 30-60 minutes walk, bike, shuttle drive + easy parking + - commuter trafﬁc or short drive (with easy parking) Accessibility to Campus Page 17 UC Berkeley Innovation Commercialization 11/18/14

Innovation Ecosystem: Initiative for East Bay

Silicon Valley

East Bay Bay Area Green Regional Corridor/ Cluster iHub San Francisco

Hyper Local: Local: Metro: Regional National Global Convenient: Less than 30 minutes About 30-60 minutes walk, bike, shuttle drive + easy parking + - commuter trafﬁc or short drive (with easy parking) Accessibility to Campus Page 18 UC Berkeley Innovation Commercialization 11/18/14

Innovation Ecosystem: Initiative for City of Berkeley

Silicon Valley

Berkeley East Bay Bay Area Startup Green Regional Cluster Corridor/ Cluster iHub San Francisco

Hyper Local: Local: Metro: Regional National Global Convenient: Less than 30 minutes About 30-60 minutes walk, bike, shuttle drive + easy parking + - commuter trafﬁc or short drive (with easy parking) Accessibility to Campus Page 19 UC Berkeley Innovation Commercialization 11/18/14

Innovation Ecosystem: Incubators & Accelerators

Silicon Valley East Bay Berkeley Bay Area Skydeck | Berkeley Green Startup Regional Cluster Corridor/ Cluster

Foundry@CITRIS iHub

QB3 San East Bay Francisco

M37 Innovation Center

Hyper Local: Local: Metro: Regional National Global Convenient: Less than 30 minutes About 30-60 minutes walk, bike, shuttle drive + easy parking + - commuter trafﬁc or short drive (with easy parking) Accessibility to Campus Page 20 UC Berkeley Innovation Commercialization 11/18/14

Localization: Deep Integration into Univ STEM-B*

*STEM-B: Science, Technology, Engineering, Math & Business

Education Research Mission Mission BENEFITS:

Service Ø Commercialization of campus innovations Mission (& licensing of Intellectual Property) Ø Experiential learning & internships for students Deep Integration into Ø Entrepreneurship opportunities for graduates LBNL & UCB STEM-B Research, Education & Ø Collaborations with university faculty Service Programs Ø Mentorship from alumni & UC Berkeley network

Ø Exchanges with partner university incubators Skydeck | Berkeley

QB3 Ø Advantages to attract top faculty & students

Foundry@CITRIS East Bay Innovation Center Ø Serendipitous discussions that create corps (researchers, entrepreneurs & investors)

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Strategy: Segmenting Local Resources

Skydeck | Berkeley

QB3

Foundry@CITRIS East Bay Innovation Center

Ø Rebrand Berkeley to Help Attract Tech Corps Ø Overlay Local Resources to Help Retain Startups

Generic / Startup Strategic / Commodity Mission Resource Critical Value Page 22 UC Berkeley Innovation Commercialization 11/18/14

Strategy: First Exposure (not required or pushed)

Institutional Highest Investors Quality Angel Mentor / Investors Transaction Attorneys

Office Space Planning & Execution Top Attribute Attribute Top

First Exposure Exposure First Tax & Accounting Insurance

Hyper- Caterers & Hotels Local Generic / Startup Resource Strategic / Commodity Mission Value Critical

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Strategy: Build Berkeley Angel/Mentor Network

Institutional Highest Investors Quality Angel Mentor / Investors Transaction Attorneys

Berkeley Angel/Mentor Network Office Space Planning & Exe • Successful entrepreneurs, tech vets or early stage investors Top Attribute Attribute Top

First Exposure Exposure First Tax & Accounting • Living in or adjacent to Berkeley • Affiliation with Cal (i.e. alumni) or Insurance Affinity for Berkeley Hyper- Caterers & Hotels Local Generic / Startup Resource Strategic / Commodity Mission Value Critical

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Localization: Role of University Startup Accelerators

Over 300 Startup Incubators-Accelerators

Why Do We Need Yet Another?

What Makes the Berkeley’s Different & How Can We Leverage It?

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Localization: Accelerator Segmentation

Mission Research, Education & Econ Dev Over 300 Startup Incubators-Accelerators

Social Why Do We Need Yet Another? Impact What Makes the Berkeley’s Different Return on & How Can We Leverage It? Investment

For Profit Non Profit - Equity - Real Estate Business Model (shared office space)

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Localization: Accelerator Landscape

Mission Research, University* Education Incubator-Accelerator (Berkeley Skydeck, & Econ Dev QB3 Garage) Code-for-America (Gov 2.0) Government* Social Incubator-Accelerator Impact The Hub (San Jose Bio Center & GreenStart Environmental Business Cluster) QB3 •Plug & Play Center East Bay Return on •Y Combinator Innovation •Kicklabs Investment •RocketSpace Center •Rock Health •TechStars For Profit Non Profit - Equity * Frequently, these operations are - Real Estate Business Model collaborations between a university & (shared office space) government, but typically the university or government takes the lead in funding & management. Page 27 UC Berkeley Innovation Commercialization 11/18/14

Case Study: Berkeley Hy-LIE – Inspiration

Serendipitous Solutions Commenced Opportunity Arises Challenges (see White Paper) Identified

East Bay Green Corridor Objectives Established • Research-driven local economic development • Thriving tech cluster near the Campus & Lab can bolster the research & edu missions 2008 2009 2010 2011

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Case Study: Berkeley Hy-LIE – Challenges

Serendipitous Solutions Commenced Opportunity Arises Challenges (see White Paper) Identified • History of innovation drain & squandered East Bay Green Corridor opportunities Objectives • Dearth of office space Established conducive to startups & • Research-driven emerging growth corps local economic • Underdeveloped network development of tech vets, early stage • Thriving tech investors, & serial cluster near the entrepreneurs Campus & Lab can bolster the • Low exit barrier to leading research & edu SV & SF require local missions competitive advantages 2008 2009 2010 2011

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Case Study: Berkeley Hy-LIE – Solutions

Serendipitous Solutions Commenced Opportunity Arises Challenges (see White Paper) Identified • Edu campaign to • History of innovation building owner- drain & squandered East Bay developers: “if you opportunities Green Corridor build it, they will stay” • Dearth of office space Objectives • Feedback: Change Established conducive to startups & zoning laws in West emerging growth corps • Research-driven Berkeley for R&D use local economic • Underdeveloped network • Biotech Incubator development of tech vets, early stage (wet labs): QB3 East • Thriving tech investors, & serial Bay Innovation Center cluster near the entrepreneurs Campus & Lab (the Bakery) • Low exit barrier to leading can bolster the • IT cluster: Berkeley SV & SF require local research & edu Startup Cluster.NET missions competitive advantages 2008 2009 2010 2011

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Case Study: Berkeley Hy-LIE – Opportunities

Serendipitous Solutions Commenced Opportunity Arises Challenges (see White Paper) Identified • Intel Research • Edu campaign to Berkeley “lablet” • History of innovation building owner- drain & squandered closing East Bay developers: “if you opportunities • Berkeley Green Corridor build it, they will stay” • Dearth of office space “Skydeck” Objectives • Feedback: Change Established conducive to startups & accelerator zoning laws in West emerging growth corps conceived • Research-driven Berkeley for R&D use local economic • Underdeveloped network • Thinking Big: • Biotech Incubator development of tech vets, early stage transform area (wet labs): QB3 East • Thriving tech investors, & serial near campus into Bay Innovation Center cluster near the entrepreneurs world-class IT (the Bakery) Campus & Lab cluster (EBI, • Low exit barrier to leading can bolster the • IT cluster: Berkeley BWRC, Skydeck, SV & SF require local research & edu Startup Cluster.com & more to come…) missions competitive advantages 2008 2009 2010 2011

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Case Study: Berkeley Hy-LIE – Next Steps

Execution Status Plan

• Skydeck accelerator • Accelerators: • More Class A office space becomes epicenter for the - Skydeck (software) • More events Berkeley Startup Cluster - Foundry@CITRIS • Larger & denser • The Berkeley Startup - QB3 East Bay Innovation people networks Cluster grows events (see Center • Better connections website) between Campus & • The Berkeley Startup • Startup Office Space: Berkeley Startup Cluster Cluster forms an Advisory to West Berkeley (~2 - NextSpace – Berkeley Committee: miles from campus) - HUB – Berkeley - Civic and business missions - Sandbox Suites - Berkeley - Berkeley residents who - Skydeck building full are successful tech vets, entrepreneurs or early stage investors

2012 2013 2014

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Case Study: Berkeley Competitive Strategy

Cost Capacity (appropriate space) Capital (easy access to VC) Change (inertia of relocating) Coolness (of space & hood) Customers (proximity / density)

Berkeley Advantage Berkeley Credibility (proximity to known corps) Colleagues (recruiting, support services) Commute (ﬁnish degree/relocate) Collaboration (with UCB people) Virtual Step Baby Step Big Step Big Leap (Dorm, Apt, (Free space: (Pay for space) (Pay for space Cafe, Libe, etc) Incubator, Garage, etc) with growth) Locating into the Community Page 33 UC Berkeley Innovation Commercialization 11/18/14

Case Study: Berkeley Competitive Strategy

Cost Capacity (appropriate space) Capital (easy access to VC) Change (inertia of relocating) Coolness (of space & hood) Customers (proximity / density)

Berkeley Advantage Berkeley Credibility (proximity to known corps) Colleagues (recruiting, support services) Berkeley Leverage these Commute Startup (ﬁnish degree/relocate) existing Collaboration Cluster advantages (with UCB people) Virtual Step Baby Step Big Step Big Leap (Dorm, Apt, (Free space: (Pay for space) (Pay for space Cafe, Libe, etc) Incubator, Garage, etc) with growth) Locating into the Community Page 34 UC Berkeley Innovation Commercialization 11/18/14

Case Study: Berkeley Competitive Strategy

Cost Capacity (appropriate space) Capital (easy access to VC) Change (inertia of relocating) East Bay Coolness (of space & hood) Green Establish these Customers Corridor potential (proximity / density) (including Berkeley Advantage Berkeley Credibility advantages (proximity to known corps) Berkeley) Colleagues (recruiting, support services) Berkeley Leverage these Commute Startup (ﬁnish degree/relocate) existing Collaboration Cluster advantages (with UCB people) Virtual Step Baby Step Big Step Big Leap (Dorm, Apt, (Free space: (Pay for space) (Pay for space Cafe, Libe, etc) Incubator, Garage, etc) with growth) Locating into the Community Page 35 UC Berkeley Innovation Commercialization 11/18/14

Case Study: Berkeley Competitive Strategy

Cost § Can’t expect advantages with these attributes, Bay Area & beyond Capacity (appropriate space) but need to be competitive with alternatives especially Capital § The only way to establish an advantage is San Francisco & (easy access to VC) to be the incumbent & minimize CHANGE Silicon Valley; Change (inertia of relocating) but including EBGC East Bay Coolness (of space & hood) Green Establish these Customers Corridor potential (proximity / density) (including Berkeley Advantage Berkeley Credibility advantages (proximity to known corps) Berkeley) Colleagues (recruiting, support services) Berkeley Leverage these Commute Startup (ﬁnish degree/relocate) existing Collaboration Cluster advantages (with UCB people) Virtual Step Baby Step Big Step Big Leap (Dorm, Apt, (Free space: (Pay for space) (Pay for space Cafe, Libe, etc) Incubator, Garage, etc) with growth) Locating into the Community Page 36 UC Berkeley Innovation Commercialization 11/18/14

Agenda: Q & A

1. Brief Intro 2. How UCB/LBNL Innovations Get Commercialized 3. How Can the Commercialization Occur Locally 4. Case Study: Berkeley CA 5. Q & A

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How LBNL & UCB Innovations Get Commercialized, Locally

Mike Cohen Director, Innovation Ecosystem Development UC Berkeley Office of Technology Licensing [email protected] 510-643-7201