Physics and Entrepreneurship

Surya Raghu
Advanced Fluidics LLC

Sebelas Maret University

Solo, Indonesia
December 9, 2012

International Year of Physics 2005

Durban Conference
Physics for Development

For Developing Countries,

tie the New Challenges in Physics
to Economic Development

Report, International Panel, Shaping the

Future of Physics in South Africa, 2004
In particular, physics often acts as a lead
science not only are the physics developments
of today the technology of tomorrow, but, inter
alia, it also plays the role of the canary in the
mine. Thus, if physics gets seriously ill, it is a
warning that science and technology as a
whole, and hence the growth of a knowledgebased economy, are in grave danger.
-- Preamble to the Executive Summary

Promoting Physics and Development in Africa,

- Edmund Zingu, Physics Today January 2004
Physicists need to understand the rarity of the
sequence: Physicists in basic research discover
fundamental laws, physicists in applied research then
develop concepts, and engineers apply these concepts to
produce materials and products that are of value to
society. Economic impact generally occurs thanks to the
endeavors of teams of physicists and other scientists,
engineers, and technical support personnel.
Technology often leads science, and basic science is
often not the source for new ideas but is used to
understand technologies already in use.

How do we convert
science into economic benefits?

The Cycle of Economic Development

TECHNOLOGY

PRODUCTS

SCIENCE

MARKET

What is missing?

The role of the entrepreneur who understands science,

technology and the business of making a profitable venture
to sell the product derived from the technology to the right
customer.

Who is an Entrepreneur?

Entrepreneur: Starts a new business based on new

products and/or services needed by the market, of
economic and social value, looking out for
opportunities and taking calculated risks.
Technical entrepreneur or technopreneur:
Starts a new business based on new products or
services needed by the market, generated from
science, technology and engineering.

The Role of the Entrepreneur

!

TECHNOLOGY

Entrepreneur
PRODUCTS

SCIENCE

MARKET

Innovative Society = Economic Prosperity

Innovative and entrepreneurial society
produces economic prosperity
High- end innovation is a hallmark of small
companies called SMEs (Small and Medium
sized companies)

Small and Medium Enterprise (SME)

Small: 1-50 Employees (Europe); 1-100
Employees (USA)
Medium: 50-250 Employees (Europe) 100-500
Employees (USA)
Globally, 99% of economy driven by SMEs
40-50% of GDP generation
Drive innovation and competition

It is a Flat World!
We can compete for all markets if we have the right
product.

The Scientist as an Entrepreneur

Many times, the entrepreneur is also the inventor/coinventor of the product the work done usually at the
University or a research institution with his graduate thesis
or post-doctoral advisor.
Instead of pursuing an academic career, the enterprising
graduate student or post-doc decides to start a company to
commercialize the invention called a start-up or spinout company.

In some cases, the inventor is a scientist/engineer in a

research lab and the lab might allow him to start a company
to commercialize the invention even allowing him some
time-off to mitigate his risk.

Options for a physicist

to take an invention to a product

University Tech
Transfer Office

Consultant to
company

Invention
Leave of absence

Start
company

Product

Are there any contradictions in being a

scientist and an entrepreneur?
Not at all
Strong correlation exists between well accomplished
scientists and academic entrepreneurship
No reduction in the number of scientific papers more
number of patent-publication pairs.
Transition to commercial science is found to be interesting
and motivating for many scientists.

Qualities of an Entrepreneurial Scientist

1. Innovative
Rather than trying to do what everyone else is doing, these
folks are always searching for ways to improve on current
designs and take them one step further than everyone else.
2. Opportunity seeking or recognition
An entrepreneur seeks opportunities or recognizes
opportunities for technical solutions to meet the needs of
the market.
3. Risk-taking
Along with innovation, scientist-entrepreneurs embrace risk
when necessary. Scientists are often risk-averse, so when
you see one who is willing to take risks, it's usually an
indication that they are suited to the high-risk climate of
today's business world.

Qualities of an Entrepreneurial Scientist

4. Schedule-oriented
If your scientist finds timelines and schedules intimidating,
then he probably isn't a good candidate for an
entrepreneurial endeavor.
5. Application-minded
Effective scientist-entrepreneurs appreciate science for its
own sake, but also engage in research that creates
commercially successful applications.
6. Collaborative
The process of taking a product from the research lab to
store shelves hinges on collaboration.

Qualities of an Entrepreneurial Scientist

7. Business Sense
It isn't necessary for a scientist-entrepreneur to be an
expert in the nuances of business. However, he at least
needs to understand the basics of business and demonstrate
a willingness to learn more along the way.
8. Goal setting
9. Persistence
10. Self Awareness
what he can do and what he cannot and when to get help.
11. Need for autonomy

What kind of education can we provide in

Colleges and Universities to produce such
entrepreneurs?
the educational system (for scientists and
engineers?) is still rather traditional, which
means that it teaches young people to obey,
reproduce facts and to engage in wageemployment after finishing their education
(Ref: The Long Road to the Entrepreneurial Society - Global Entrepreneurship Monitor
2001, The Netherlands)

We need to change this

What should we be doing?

SHORT TERM
Basics of Entrepreneurship
A one-semester Entrepreneurship Curriculum in
undergraduate course and Masters courses is
recommended.

Mentorship and industrial internship for students and

graduates
Strong local govt. support for start-ups?

What kind of infrastructure support can

the Universities provide to nurture such
innovation and entrepreneurship?
Competitions for ideas and business plans
Innovation Labs

Technology Transfer Office and advise

Exposure to Market, Technology and Industrial Needs
through Visits and Presentations
Partnership with local government to set up Science and
Tech Parks or Incubators.

What is the environment that encourages

entrepreneurship?
An environment that encourages risk taking and
rewards for risks
No Taboo of failures
it is OK to fail
Positive attitudes and environment

Some success stories of scientists becoming

entrepreneurs
1. Wolfram Research
Founded in 1987
Mathematica

Stephen Wolfram
Theoretical Physicist

Examples of companies started by

scientists
2. Neven Vision (UCSD)
(currently owned by Google)
a physicist with a Ph.D. from Ruhr
University, succeeded in developing
software that could analyze facial
features, skin tones and the iris of the
eye to achieve such recognition.

Examples of companies started by

engineers and scientists
5.

Melys Diagnostics

Founder: Dr. Dawood Parker, UK Physicist and

Professor
http://www.melysdiagnostics.com/
Products: Atrial Fibrillation Monitor and Continuous
Monitoring Oxygen Sensor

Examples of companies started by

engineers and scientists

6. Google
Sky is the limit in a flat earth!
Founded in 1998
Founders: Larry Page and Sergei Brin
http://www.xtimeline.com/timeline/Google-s-Timeline
http://www.google.com/corporate/history.html#1
Opportunity assessment, risk taken, support received and
execution of the plan.

Examples of companies started by

engineers and scientists
2. SUN Microsystems (1982)
Four founders
Sun Microsystems was born on
Feb. 24, 1982 -- with a grand total
of four employees: Vinod Khosla,
Bill Joy, Andy Bechtolscheim, and
Scott McNealy (circa 1982).

www.sun.com
http://www.thocp.net/companies/sun_microsystems/sun
_microsystems_company.htm

New trends in the US and Europe

Academic entrepreneurs

Faculty encouraged to be inventors and commercialize

their inventions.
Technology transfer offices set up in most of the
Universities to assist commercialization of inventions.
Fact to be recognized by academics: Patents are not
publications patenting is very expensive compared the
cost of publication.

New trends in the US and Europe

Most Technology Transfer Offices have instituted a

screening process with access to legal assistance (patent
attorneys), and marketing experts.

Many Universities are setting up their own incubators.

CONCLUSIONS

Science and Economic Development are tied

together
No contradiction in being an entrepreneur and a
researcher
No contradiction in publishing papers and patents
Connection to societal problems can lead to
interesting research areas
Universities should produce employment
generators than employment seekers.

THANK YOU

What is an invention and what is the path of an

invention to a product?

Invention to Product: The Processes

INVENTION

15. Start product development

16. Finish bread-board version of product

and show it to potential customers
17. Obtain requirements from customers
18. Start industrial design and packaging

1. Invention notebook
2. Literature Survey
3. Invention Disclosure Form
4. Identify patent attorney
5. Check regulatory issues

12. Complete reduction to practice

13. Complete Non-Provisional patent
application
14. Assemble team to do further work

19. Start manufacturing

consideration, location
20. Identify suppliers, subcontractors
21. Permits and Licenses

PRODUCT

6. Provisional Application
7. Start reduction to practice

8. Develop product ideas

9. Conduct market research
10. Identify and contact potential
sponsors for product development
11. Sign non-disclosure forms

22. Finish alpha-version

of product
23. Get feedback from
customers

24. Beta-version of product

25. Start manufacture
26. Patent might be issued anytime
now!

Invention to Product Time-Line

1. Notebook entry

6. Provisional Application
7. Start reduction to practice

TRL 8

12. Complete reduction to practice

13. Complete Non-Provisional patent
application (2-3 months)
14. Assemble team to do further work

Invention

12

22. Finish alpha-version of

product
22. Get feedback from
customers

15. Start product

development

18

2. Literature Survey
3. Invention Disclosure Form
4. Identify patent attorney
5. Check regulatory issues

8. Develop product ideas

9. Conduct market research
10. Identify and contact potential
sponsors for product development
11. Sign non-disclosure forms

24

Product

30

36

42

48 Months

19. Start manufacturing

consideration, location
20. Identify suppliers,
sub-contractors
21. Permits and Licenses

16. Finish bread-board version

of product (TRL 4)
17. Obtain requirements from
customers
18. Start industrial design and
packaging

24. Beta-version of product

25. Start manufacture
26. Patent might be issued
anytime now!