Rahamon Ade Bello

Sustainable development strategic outcomes include increased development, commercialization, adoption and diffusion of environmental, energy and bio-based technologies.

Nigeria’s economic performance is a key determinant in ensuring a sustainable future for Nigeria’s Technologies will help our country address its long –standing productivity and business R&D investment challenges. They will also help to deal with key environmental issues such as climate change, air and water pollution, waste, and contaminated sites.

Sustainable development can be advance through the integration of innovative technologies and strategic organisational changes. The development of innovative technologies requires investment in fundamental research, development and commercialization. Strategic organizational change refers to new business strategies and process-efficiency tools that can help lessen the private sector’s ecological footprint through waste reduction and the more efficient use of materials, energy and labour. New approaches in marketing, communications and management processes are key contributors to firms’ performance.

4. Commercialization of technological innovation

Commercialization should not to be confused with sales, marketing or business/product development. Commercialization is the process or cycle of introducing a new product or production method into the market. Commercialization is thus the total process of moving a technology from the concept stage, to production of a product and from there, to market acceptance and use. The commercialization process has many models depending on the product, device and /or industry. It is a stage –wise process and each stage has it own key goals and milestones. The actual lunch of a new product is the final stage of new product development, and the one where the most money will have to be spent for advertising, sales promotion, and other marketing efforts. Finally, it is vital to involve key stakeholders early, including customers.

Technological commercialization is based on ideas, the conversion of ideas into inventions (working devices/processes), the commercialization of invention into innovations (commercially viable devices/processes), and finally, the widespread adoption and dissemination of innovations by users. For a successful commercialization of a technology, and following steps are important:

1. Identification of the potential adopters.
2. Measuring the perceptions of a relevant potential adopters.
3. Designing the developing a user-friendly product.
4. Informing the potential adopter of the product’s user-friendliness.
5. Providing post – adoption support.

Table 1 provides information on various phases of technology commercialization.

Table1. Model for commercialization of technological
Parameter Technical Market Business
Investigative phase Assessment of technology concept Assessment of market needs Venture assessment
Development phase
Feasibility TechnologyFeasibility Market study Economic feasibility
Planning Engineering Prototype Strategic marketing Business plan
Introduction Pre-production type Market validation Business start-up
Commercial phase
Full scale production Production Sales and Distribution Business Growth
Maturity Production support Market Diversification Business Maturity
Commercialization is an important benchmark for sustainability for the following reason:
1. It is causally and positively related to the benefit associated with clean
technologies such as environmental gains and health improvements. The faster
the commercialization process, the greater are these benefits;
2. When full commercialization is achieved, the benefits associated with clean technologies can come at zero or negative cost to taxpayers; once a technology is commercial, benefits continue to accrue without incurring cost to taxpayers.
3. Consumers and firms who invest wisely in clean technologies also benefit from negative cost (profit).
The indicators that can be used to highlight different dimensions of commercialization include: (1) the profitability of projects, (2) technology cost trends, (3) the share of private activity in the market, for example, the share of energy production/savings generated by the private sector or the amount of profit-driven private investment for energy efficiency improvements,2 (4) business and support service development (e.g. Cluster), (5)the availability of commercial financing, (6) awareness and understanding of technologies and benefits among consumers and businesses, and (7) consumer and business demand. Taken together, these indicators can adequately represent the complex process of commercialization (Nichols and Martinot, 2000).

Getting patent for ones ‘s technology innovation is an achievement, with some in inherent advantages. In the academia, it can earn one a lot of credits in terms of promotion or career enhancement. But most significantly, the real fruits of patented technology innovations only come through commercialization (for the benefit of society), which can earn the technological innovator royalty if the technology is transferred or earn the innovator profit if the patented technology is converted into a business organization which is called techno-entrepreneurship. Thus, it is advisable that we must always think of patents or copyrights for our technological innovations in order to protect the interest of the innovators.

4.1 Steps of Commercialization of Technological Innovations

the steps involved in commercialization of technological innovations are highlighted as followers:
1. Research: Observations and experiment during research activities often lead to technological innovations that may have commercial applicability.
2. Disclosing an innovation: The Innovation must be formally disclosed by innovator.
3. Market assessment: This involves assessment of a disclosed innovation and development of a preliminary commercialization strategy in order to assert University’s rights in the disclosed innovation. The assessment and determination will be performed in conjunction with innovator, outside
counsel, and/or advisors as appropriate.
4. patenting and other legal protection: Having asserted the university’s rights in an innovation that appears suitable for patenting, outside counsel will be engaged too pursue patent protection for the innovation. When appropriate, the university may utilise copy right, trade secret or trademark rights to commercialise university innovations or works of authorship.
5. Prospecting: Companies, Entrepreneurs, and investors (who have been indentify as potentially suitable partners) are approached to bring the technological innovation to market. Available technologies can also be show-cased online and at appropriate conferences. Moreover, faculty publications, presentations, or academic renown may result in third party licensing interest.
6. Due diligence and negotiation: Marketing activities may result in one or more parties requesting an in-dept examination of the technology. This can involve signing a non-disclosure agreement and additional discussions with the innovator. Interested prospects will present a plan for commercialization and negotiate business terms.
7. The deal: Legal agreements are prepared to reflect the business terms negotiated when the university and commercialization partners are ready to move forward. When the agreement are signed by both parties, the start-up or licensed has the right (and obligation) to commercialize the innovation. Compensation to the university varies from agreement to agreement and may involve fixed fees, milestone fees, royalties, equity, and other forms of consideration. Compensation is shared with innovator/investor in accordance with university policy.
8. After the deal : The part to commercial market varies, depending on the nature of the innovation, the market it is addressing, and the innovation’s stage of development. Under the terms of agreement, the commercialization partner provides regular progress reports to the university on its commercialization activities. The innovator may continue to be involved in the development activities with the commercialization partner.

4.2 Issues and challenges related to commercialization of technological
innovations and patents

While discussing the commercialization of any technology innovation, it is really very important to touch the issue of: ‘to go for a patent or not? Going for a patent will lead to a publication of your innovative technology. Whether it is good for business or not is a matter of debate. Patent gives you protection so government needs to accelerate the process of acquisition of copyright and patent and our legal procedures should be fast and void of corruption. It takes a lot of time, energy and resources to fight patent and copyright cases with many hurdles.

Some innovators never thought of any patent or copyright as they believed that building a robust business model is more important. However, once your business model is robust, even if somebody “steals” your technology, that person may not be successful as your business will act as an entry barrier to provide solid competition. In some developing countries like Nigeria and others, filing patent is a very slow process which gives frustration to the innovator and commercialization motive may therefore go haywire.

It is important to stress that techno-entrepreneurship is an important factor to be considered in the commercialization of any technological innovations, whether patented or not. To be an entrepreneur by converting your own patented technological innovations into a product will always yield dividends. The conversion of an innovator into entrepreneur is an easy task as this involves many aspects of business functions: resources, manufacturing, financial management, human resources management, networks, marketing, new product development (techno-innovation) and feasibility analysis.

The patented technological innovation should have commercial viability. The same can be checked by carrying out marketing feasibility, economic feasibility and technical feasibility etc. The important thing is: how to convert techno-innovation into techno-entrepreneurship? There are many technological innovations but how many can be converted into techno-entrepreneurship? Technology innovation is important and it is difficult but an entrepreneurship is not just about technology and innovation. Techno-entrepreneurship is a board concept and involves many things. Technology entrepreneur is the one who organises, manages and assumes the risk of a technology-based business enterprise (Nicholas sand Armstrong, 2003)

As an entrepreneur one has to think about all other components of business and not just about the technology innovation. And because of that, only the person who has technology innovation may require support for other components of business, otherwise as mentioned earlier even the greatest innovation may die. A techno-entrepreneur needs to have technical management skills, business management skills and motivation, then only he can be a successful techno-entrepreneur (Oakey, 2003). New entrepreneur who have no existing markets and no existing customers, look for any market where their technology offers cost and performance-advantages over existing product i.e., replacement of existing products (Walsh and Kirchhoff,2002).