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Syndicate Innovation Venturing: Translating Academic Innovations into Commercial Successes
London Business School, Regent’s Park, London NW1 4SA, UK
Received: 26 March 2012; in revised form: 21 May 2012 / Accepted: 24 May 2012 / Published: 5 July 2012
Abstract: Innovations that initiate new technology cycles, i.e., radical innovations, bring tremendous value to Society and build for the companies that deploy them sustainable competitive advantages. However, large firms have typically been relatively inefficient at accessing from academia or technology start-ups such technological leaps. Indeed, most multiyear and multimillion dollar academia-industry partnerships have historically not resulted in any acceleration of the rate of deployment of game-changing innovations, which empirically proceeds in 25 year cycles, such as for example the expansion of the scope of the pharmaceutical industry from small molecules to biologics, or, projecting into the future, to siRNA or therapeutic stem cell technologies. Syndicated innovation venturing is a new strategic partnering concept described here that brings together actors from different economic segments in a non zero-sum game as a means to facilitate seed-funding, with the aim to de-risk technologies while reducing initial financial exposures. A case study in the pharmaceutical industry suggests that alleviating this hurdle may provide an appropriate environment to improve the dynamics of academic technology transfer to the commercial phase. By contributing to the de-risking of the creation of novel biotechnology businesses, this novel mechanism could help speed up the commercialization of emerging technologies on a large scale. At a time when knowledge-based firms such as pharmaceutical companies attempt to revisit their innovation models to advance science, in spite of an environment of increasing risk-aversion, such responses could tilt the balance in favor of disruptive products and sustained corporate financial performance by removing common barriers to radical innovation deployment.
Keywords: emerging technology; radical innovation; disruptive innovation; technology transfer; technology deployment; technology adoption; seed-funding; start-up; venturing; biotechnology; non-zero sum game
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MDPI and ACS Style
Vertès, A.A. Syndicate Innovation Venturing: Translating Academic Innovations into Commercial Successes. Challenges 2012, 3, 70-83.
Vertès AA. Syndicate Innovation Venturing: Translating Academic Innovations into Commercial Successes. Challenges. 2012; 3(2):70-83.
Vertès, Alain A. 2012. "Syndicate Innovation Venturing: Translating Academic Innovations into Commercial Successes." Challenges 3, no. 2: 70-83.