The document discusses the commercialization process for new technologies, outlining the innovation value chain, stakeholders involved, and steps from concept development through market entry. It describes the role of incubation in supporting product development, evaluating target markets, assessing venture opportunities, and managing intellectual property. The commercialization gap is where most ideas fail, and incubation aims to help ideas become viable businesses by providing resources and expertise to move innovations toward market.
2. 2
Table of Contents
Innovation Value Chain
Commercialisation Stakeholders
Commercialisation Steps and Gap
Role of Incubation in Technology Commecialisation
New Technology Platforms
3. 3
Innovation Value Chain
Basic and Applied
Research /Design and
Engineering/ Garage
/Grassroot Invention
Technology and
Market Validation
Technology Development
Product
Development
(market
ready)
Small Scale
Manufacturing
Market
Entry
Market
Dev
CONCEPT PHASE DEVELOPMENT PHASE (ASSESSMENT AND DEMONSTRATION) COMMERCIAL PHASE
TRL 1, 2 & 3 TRL 4 TRL 5 & 6 TRL 7 TRL 8 TRL 9
Innovation
Process
Outputs
Proof of
Principle
Publications
Proof of
Concept
Patents
Prototype Tested Prototype
Technology
Transfer
Proof of Efficacy
Market Ready
Product/
Service/
Process
Reproducible
Product/
Service
Functional Process
Business
Start-up and
Trading
Business
Growth
Technology/Supply Push Demand/Market Pull
4. 4
Stakeholders
Basic and Applied
Research /Design and
Engineering/ Garage
/Grassroot Invention
Technology and
Market Validation
Technology Development
Product
Development
(market
ready)
Small Scale
Manufacturing
Market
Entry
Market
Dev
CONCEPT PHASE DEVELOPMENT PHASE (ASSESSMENT AND DEMONSTRATION) COMMERCIAL PHASE
TRL 1, 2 & 3 TRL 4 TRL 5 & 6 TRL 7 TRL 8 TRL 9
Technology Transfer
Offices
TVET Colleges
Centres of Excellence (CoE)/Centres
of Competence (CoC)
Science Councils
Incubators/Tech Stations
Labs ad accreditation bodies
Inventors / Tech developers
SMME’s
Industry
5. 5
Commercialisation Steps
Market
diversificatio
n
Disclosure of
invention
Market validationMarketing plan
Basic and Applied
Research /Design and
Engineering/ Garage
/Grassroot Invention
Technology and
Market Validation
Technology Development
Product
Development
(market
ready)
Small Scale
Manufacturing
Market
Entry
Market
Dev
CONCEPT PHASE DEVELOPMENT PHASE (ASSESSMENT AND DEMONSTRATION) COMMERCIAL PHASE
Technical activities IP protection activitiesMarketing activitiesBusiness activities
TRL 1, 2 & 3 TRL 4 TRL 5 & 6 TRL 7 TRL 8 TRL 9
Proof of
concept
Technical
feasibility/
lab test
IP protection
application
Licensing /
assigning
Market
study and
evaluation
IP evaluation
Start-up or
existing company
Technology
marketing
IP
approval
Protectio
ndecision
Engineering
prototype
Pre-production prototype
(including pilot) Production
Market needs
assessment
Product
support
Market
monitoring
Venture
assessment
Business plan
Economic
feasibility
Business growth
1
3
4
5
6
7
8
A A7
B3
2
Legend:
DECISIONPOINT–COMMERCIALISATIONPATHCHOICE
Start-up
Licensing
Existing
company
A1
B
A2
A3
A5
A6
A8
A9
A10
A11
A12
B1
B2
A4
Personal, friends, family and public
funds
Venture capital and financial institutionsPublic funds and angel investors
6. 6
Commercialisation
Environment
Innovation: Patents, inventions, IKS, improved products
Entrepreneurs: ideas to market
Markets for products: local, export competitiveness
Technology: process engineering, design, materials,
control, optimisation
Capital: Friends/Family, Angels, strategic investors,
Public seed, funds/Grants, Venture Capital
Service Providers: skilled workforce, Patent attorneys,
Advisors
Quality Environment: infrastructure, support
structures, legal framework, etc
7. Private
Funding
Public
Funding
Research CommercialisationDevelopment
7
Commercialisation Gap
Basic and Applied
Research /Design and
Engineering/ Garage
/Grassroot Invention
Technology and
Market Validation
Technology Development
Product
Development
(market
ready)
Small Scale
Manufacturing
Market
Entry
Market
Dev
CONCEPT PHASE DEVELOPMENT PHASE (ASSESSMENT AND DEMONSTRATION) COMMERCIAL PHASE
TRL 1, 2 & 3 TRL 4 TRL 5 & 6 TRL 7 TRL 8 TRL 9
Personal, friends, family and public
funds
Venture capital and financial institutionsPublic funds and angel investors
Ideas Viable Business
Strategic partnerships
Finance intense
High risk
Technology Business Incubation
8. 8
Role of Incubation in the
Commercialisation Process
Market
diversificatio
n
Disclosure of
invention
Market validationMarketing plan
Basic and Applied
Research /Design and
Engineering/ Garage
/Grassroot Invention
Technology and
Market Validation
Technology Development
Product
Development
(market
ready)
Small Scale
Manufacturing
Market
Entry
Market
Dev
CONCEPT PHASE DEVELOPMENT PHASE (ASSESSMENT AND DEMONSTRATION) COMMERCIAL PHASE
Technical activities IP protection activitiesMarketing activitiesBusiness activities
TRL 1, 2 & 3 TRL 4 TRL 5 & 6 TRL 7 TRL 8 TRL 9
Proof of
concept
Technical
feasibility/
lab test
IP protection
application
Licensing /
assigning
Market
study and
evaluation
IP evaluation
Start-up or
existing company
Technology
marketing
IP
approval
Protectio
ndecision
Engineering
prototype
Pre-production prototype
(including pilot) Production
Market needs
assessment
Product
support
Market
monitoring
Venture
assessment
Business plan
Economic
feasibility
Business growth
1
3
4
5
6
7
8
A A7
B3
2
Legend:
DECISIONPOINT–COMMERCIALISATIONPATHCHOICE
Start-up
Licensing
Existing
company
A1
B
A2
A3
A5
A6
A8
A9
A10
A11
A12
B1
B2
A4
Personal, friends, family and public
funds
Venture capital and financial institutionsPublic funds and angel investors
Technology Business Incubation
9. 9
Role of Incubation in the
Commercialisation Process
Product Development
Complete Technical feasibility/lab test instruments
Engineering prototype
Pre-production prototype (including pilot)
Small scale Production
10. 10
Role of Incubation in the
Commercialisation Process
Product Development
Target market
Market study and evaluation
Marketing plan
Market validation
11. 11
Role of Incubation in the
Commercialisation Process
Product Development
Target market
Venture assessment
Business plan
12. 12
Role of Incubation in the
Commercialisation Process
Product Development
Target market
Venture assessment
IP evaluation
IP protection application
Technology marketing
Licensing / assigning
13. 13
the dti Programmes
Basic and Applied
Research /Design and
Engineering/ Garage
/Grassroot Invention
Technology and
Market Validation
Technology Development
Product
Development
(market
ready)
Small Scale
Manufacturing
Market
Entry
Market
Dev
CONCEPT PHASE DEVELOPMENT PHASE (ASSESSMENT AND DEMONSTRATION) COMMERCIAL PHASE
TRL 1, 2 & 3 TRL 4 TRL 5 & 6 TRL 7 TRL 8 TRL 9
Current Programmes THRIP SPII TVC ISP
New Programmes Techno-Industrial Clusters & Specialised Industrial Facilities
Proposed Incentive
Proposed Activity Gates
Technology Commercialisation Incentive
Prototype
Development
Testing and
Validation
Product Development Small Scale
Manufacturing
Multi-
stakeholder
Programmes
Techno-Industrial Clusters
Specialised Industrial Facilities
Science Parks /CoC/CoE Special Economic Zones
Incubators/FabLabs/Accelerators/Tech Stations
15. 15
The Cluster Model
Horizontal – agglomeration complimentary and
competing
Vertical – Value chain
III Helix – Tripartite
Anchor firm
CMO
16. 16
Conclusion
“I don’t know who discovered water, but it wasn’t a fish”
– Marshall McLuhan
SMME development strategies might be about what they
want to do with the world
and
Commercialisation might be about what the world wants
to do with SMMEs.
Ref: Letlotlo Pohole