Dr. Sunil KadriFish Biology Group, University of GlasgowAquaculture InnovationOptoSwim TechnologiesEuropharmaTNC PartnersAQ1 Systems

Inventor record?Business experience?Track Record?

IR Sensor Feed Control Systems2500 Systems installed world wide

Used on 22 Species of Fish including Atlantic Salmon, Rainbow Trout, Sea Bass, Sea Bream and Cod

Leading research tool for feeding related trials 

Salmon smoltification biotech

New concept in smoltificationNew concept in aqua tech sales model

License IP to each customerRoyalty paid on a per fish basisConsumables from 3rd parties

Fish exercise stimulationBringing the benefits of exercise to cage cultureBased on optomotor responseDelivers benefits to farmer, fish, processor and consumer

Why Innovation Matters

If you’re not Unique

you better be Cheap

Meaningfully

Quick Test for Meaningful UniquenessAre your profit margins...

10%20%

50%higher than your industry?

If not, then you areNOT meaningfully unique

0123456789

10111213141516

Low Cost Quick Delivery Voice ofCustomer

High Quality Innovation

Self Reported Company Strategy

n=738 - Georgia Tech

% Profit Margin

(Return on Sales)

Innovation Drives Profits

New ProductsDrive Profitable Growth

Divided in Thirds by % of Sales in Products Not Offered 3 Years AGO

New CustomersDrive Profitable Growth

Ave

rage

GR

OW

TH R

ATE

Number of NEW CUSTOMERS over the past 3 years

Companies ThatPatent Grow

5X Faster

It’s NOT theCertificate

It’s theMINDSET!

Also Creating, Communicating & CommercializingMeaningfully Unique Ideas for....

It’s about MORE thanNew Products & Services

• More Persuasive Sales/Marketing Messages • Cost Savings / LEAN / Green• Operational Improvement• New Business Models

RADICAL Innovationversus Incremental Innovation

Company Valuation

Marketing Effectiveness

7X

9X

FUTURE FOCUS

10X more predictive of success than “Voice of the Customer”

“If I had asked people what they wanted, they’d have said faster horses.”

Henry Ford

Henry Ford

"Businessmen go down with their businesses because they cannot bring themselves to change.

One sees them all about – men who do not know that yesterday is past, and who woke up this morning with last year's ideas.”

Innovating for the future is hardLong termRisky Flexibility, adaptabilityPassion

Alot of work for little rewardNo fear of failure

Who DeliversUniversity Inventions

Who Delivers Independent Inventions

Small Companies& Start Ups

LargeCompany

Sources: AUTM FY 2005 U.S. Licensing Survey

Academy of Management Journal 2005, Vol 48, No 5, p 814 - 829

The Economic Journal, 113 (January 2003) pages 226-239

Small Companies

Small Companies& Start Ups

Large Co.1.7% Odds

Small Companies& Start Ups

DELIVER

Small Companies Create JOBS

Source: 2004 - U.S. Dept. of Commerce, Bureau of the Census

Net gain of

1,860,000new jobs

Net LOSS of181,122 jobs

SmallCompanies

< 500 Employees

LargeCompanies

% of Innovations Still in Business after 3 years

Start Ups AreThe Real EXPERTS

of Innovation Commercialization

Since the mid-20th century more than two thirds of

all RADICAL INNOVATIONS that have lead to

dramatic and sizable transformations in the

economy have been adopted, improved and

developed by SMALL COMPANIES.

Federal Reserve Bank of Kansas City

ConclusionsCommercialisation of innovation is key to growth of companies, industries and economiesSmall companies are the key element in delivering innovation to the marketTo foster innovation, small companies need to be supported by:

InvestorsGovernmentLarge companies

Aqua tech/fish tech cluster?High tech spin outs from our core industry

www.entrepreneurshipnewzealand.com

I would like to acknowledge Zach Sorrells of Plant Eureka for providing some of the information in this presentation