Selecting the most appropriate commercialisation strategy is key to extracting maximum value from your R&D

Abstract

Business organisations are presented with many options in the commercialisation of the outcome of a research and development project, including licensing, in-house product launch, direct sale of a technology packaging or spinning off a new venture with other investors. In this article, a simple framework is introduced that can be used to select a suitable commercialisation strategy according to two parameters of the innovation, namely its strategic fit and the estimated value or risk-adjusted net present value of the opportunity. The use of this framework is illustrated with two examples, the first involving the development of a new product that is a significant innovation on an existing process or product line, and the second being the commercialisation of a biopharmaceutical. In both cases, the option of licensing is explored, and a further technique for identifying the most suitable point for the license event is presented.