Foreword |
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xiii | |
Preface |
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xv | |
Acknowledgments |
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xix | |
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PART ONE Creativity and the Roles of the Inventor, Innovator, and Entrepreneur |
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1 | (36) |
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Creativity and the Entrepreneurial Process |
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3 | (12) |
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3 | (4) |
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7 | (2) |
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Distinct Roles of Inventor, Innovator, and Entrepreneur |
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9 | (5) |
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14 | (1) |
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Protecting Your Invention |
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15 | (22) |
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What Is Intellectual Property? |
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15 | (1) |
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How Intellectual Property Law Works |
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16 | (1) |
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Basic Forms of Intellectual Property |
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17 | (1) |
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International Treatment of Intellectual Property Law |
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18 | (1) |
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Innovation Process: Diffusion and Adoption |
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19 | (2) |
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Appropriating the Profits of Innovation |
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21 | (2) |
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How to Decide Which Intellectual Property Tools to Apply |
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23 | (1) |
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How to Identify Intellectual Property in Your Organization |
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23 | (2) |
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Developing an Effective Invention Disclosure Process |
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25 | (1) |
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26 | (1) |
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27 | (10) |
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PART TWO Building Business Models |
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37 | (70) |
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Understanding Strategy Basics |
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39 | (44) |
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From Strategy as Plan to Strategy as Direction |
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39 | (1) |
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Introduction to the Strategic Management Process |
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40 | (1) |
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Why Is Strategy Important for Any Enterprise? |
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41 | (1) |
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Strategy in a Rapidly Changing High-Technology Environment |
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42 | (1) |
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How Often Should You Change Your Venture's Strategy? |
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43 | (1) |
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How Do Managers Formulate a Strategy? |
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43 | (2) |
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Three Levels of Strategy and How They Interrelate |
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45 | (8) |
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Basic Tools for External Analysis |
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53 | (12) |
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Internal Analysis and Organizational Design |
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65 | (8) |
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Understanding Organizations and Their Cultures |
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73 | (2) |
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Challenges of Organizational Design |
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75 | (4) |
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How Organizations Survive Turbulence and Change |
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79 | (1) |
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Reflections on Strategy in the Entrepreneurial Context |
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80 | (1) |
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81 | (2) |
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Strategies to Grow, Restructure, or Harvest Your Business |
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83 | (18) |
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84 | (3) |
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87 | (3) |
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90 | (4) |
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Diagnosing the Situational Context of the Industry |
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94 | (3) |
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97 | (1) |
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98 | (3) |
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Key Elements of a Business Model |
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101 | (6) |
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What Is Your Business Model? |
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101 | (2) |
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Creating the Business Model Step by Step |
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103 | (2) |
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105 | (2) |
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PART THREE Crafting Strategic Alliances |
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107 | (102) |
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Introduction to Strategic Alliances |
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109 | (28) |
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110 | (8) |
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118 | (1) |
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Forces of Deconstruction on the Value Chain |
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119 | (4) |
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Vertical Integration Decisions |
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123 | (4) |
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Strategic Alliances with a High Component of Technology |
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127 | (5) |
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132 | (1) |
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Comparison of Main Alliance Modes and Their Contractual Features |
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133 | (4) |
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137 | (38) |
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Filling the Strategic Gaps |
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137 | (1) |
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138 | (1) |
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Decide on the Strategic Logic for the Collaboration |
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139 | (5) |
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Select the Right Partnering Candidates |
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144 | (5) |
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Design, Structure, and Negotiate the Alliance |
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149 | (11) |
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160 | (4) |
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Measure and Assess Performance |
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164 | (2) |
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Check the Merits of Continuing the Alliance, Either Adjust or Exit |
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166 | (5) |
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Start the Cycle Anew: Strive to Create a Connected Network of Alliances |
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171 | (1) |
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172 | (1) |
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172 | (3) |
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How Alliances Complete the Value Chain in Biotechnology and Pharmaceutical Business Models |
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175 | (34) |
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Risks and Uncertainty Associated with Drug Development |
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175 | (4) |
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Value Chains in Pharmaceuticals and (Bio) Pharmaceuticals |
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179 | (2) |
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Completion of the Biotechnology and Pharmaceutical Value Chain through Alliance Formation |
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181 | (7) |
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Business Models in Pharmaceuticals and (Bio) Pharmaceuticals |
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188 | (11) |
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Recent Trends and Emerging Business Models in Healthcare |
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199 | (6) |
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Alliance Formation Crucial to Biotechnology and Pharmaceutical Business Models |
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205 | (1) |
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206 | (3) |
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PART FOUR Understanding Legal Agreements |
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209 | (126) |
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Contract Law, Key Legal Agreements for Business, and Incorporation Issues |
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211 | (18) |
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Elements Constituting a Contract |
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212 | (2) |
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214 | (1) |
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Cross-Cultural Differences in Contractual Agreements |
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215 | (1) |
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216 | (2) |
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218 | (1) |
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Incorporation Issues: Choosing the Appropriate Legal Structure |
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219 | (1) |
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Sole Trader (Sole Proprietorship) |
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220 | (1) |
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221 | (3) |
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224 | (1) |
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What Is the Right Choice of Vehicle? |
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225 | (1) |
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Intellectual Property Issues Pertaining to Incorporation |
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226 | (1) |
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227 | (2) |
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229 | (20) |
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230 | (4) |
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234 | (2) |
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Transferability of Shares and Exit |
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236 | (1) |
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Other Terms of the Investment Agreement |
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237 | (3) |
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240 | (1) |
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240 | (9) |
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The Intellectual Property Landscape |
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249 | (24) |
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249 | (3) |
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252 | (3) |
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255 | (2) |
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Know-How or Trade Secrets |
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257 | (5) |
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262 | (7) |
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269 | (1) |
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270 | (3) |
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273 | (24) |
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273 | (4) |
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Filing Patents---Overview of International Patent Treaties |
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277 | (5) |
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Patent Application Processes |
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282 | (7) |
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Trends in Global Patenting Activity |
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289 | (6) |
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295 | (1) |
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296 | (1) |
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General Patenting Strategies in High-Technology Industries |
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297 | (18) |
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Developing a Patent Strategy for Early-Stage Businesses |
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297 | (5) |
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Questions to Ask When Devising a Patenting Strategy |
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302 | (2) |
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Defensive and Offensive Patent Strategies |
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304 | (3) |
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307 | (1) |
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Strategic Patenting---Claiming First to Win the Battle |
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308 | (3) |
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Strategic Patent Considerations for Generics Drug Companies |
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311 | (2) |
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313 | (2) |
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Navigating Technology License Agreements |
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315 | (20) |
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Structure of a Basic Technology Transfer Agreement |
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316 | (1) |
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317 | (9) |
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Competition Law and Antitrust Provisions |
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326 | (2) |
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Heads of Terms or Memorandum of Understanding |
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328 | (3) |
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331 | (1) |
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Sample Heads of Terms or Memorandum of Understanding |
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332 | (3) |
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PART FIVE Competitive Intelligence and Due Diligence |
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335 | (46) |
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Competitive Intelligence and Patent Searching |
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337 | (24) |
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Asking the Right Questions---Doing Various Patent Searches |
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338 | (2) |
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Business Intelligence for Benchmarking |
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340 | (1) |
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340 | (1) |
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Carrying Out Information and Patent Searches |
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341 | (4) |
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Searching for Technical and Business Information |
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345 | (3) |
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Going from Patent Data toward Technology Intelligence |
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348 | (10) |
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358 | (3) |
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361 | (20) |
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362 | (1) |
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Preliminary Issues Before Commencing Due Diligence |
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362 | (3) |
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How Legal Due Diligence Works |
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365 | (2) |
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367 | (2) |
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Issues in Cross-Border Due Diligence |
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369 | (1) |
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What If Due Diligence Uncovers a Problem? |
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370 | (1) |
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From Innovation to Cash Flows and Beyond: Due Diligence during the Business Life Cycle |
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371 | (7) |
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378 | (1) |
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379 | (2) |
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PART SIX Valuing Company Cash Flows |
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381 | (188) |
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Valuation Using Discounted Cash Flow |
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383 | (58) |
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Why Valuation Is an Important Skill to Learn |
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383 | (1) |
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Compounding and Discounting Money: Present Value Techniques |
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384 | (1) |
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Definition of Net Present Value |
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385 | (1) |
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386 | (2) |
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Meaning of Intrinsic Value |
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388 | (6) |
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Valuing Young Growth Companies with No Dividends |
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394 | (2) |
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Overview of Discounted Cash Flow Methods |
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396 | (1) |
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Present Value of an Infinite Stream of Dividends |
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397 | (1) |
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Zero-Growth Perpetuity Model |
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398 | (2) |
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400 | (2) |
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Multiple-Period Dividend Growth Model |
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402 | (4) |
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Introduction to the Cost of Equity |
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406 | (1) |
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Capital Asset Pricing Model |
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407 | (4) |
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Enterprise Valuation Method |
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411 | (4) |
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Defining the Weighted Average Cost of Capital |
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415 | (2) |
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Applying the Enterprise Valuation Approach by Discounting Free Cash Flows |
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417 | (6) |
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Practical Advice on Selecting the Proper Discount Rate |
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423 | (1) |
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Establish an Estimated Range of Valuation Values |
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424 | (2) |
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Next Steps for Testing Your Key Assumptions |
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426 | (1) |
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Next Steps for Practicing Valuations |
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427 | (1) |
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428 | (1) |
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Using the Enterprise Valuation Method to Value a High-Technology Company |
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429 | (12) |
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Valuation Using Market Multiples and Comparable Deal Transactions |
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441 | (34) |
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Enterprise Value of the Firm Is a Market Value |
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441 | (2) |
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Putting the Money to Work in the Business |
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443 | (2) |
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Why Accounting Values Are Not the Same Thing as Market Values |
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445 | (2) |
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Economic Balance Sheet Reflects the Capital Market's View |
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447 | (2) |
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Financing the Business: The Pecking Order of Finance |
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449 | (2) |
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Important Characteristics of Equity Markets |
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451 | (1) |
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Who Sets the Market Price of a Stock? |
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452 | (4) |
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Measures of Value Used in Appraisals under a Variety of Circumstances |
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456 | (2) |
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Relative Valuation by Comparing Similar Companies and Transactions |
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458 | (3) |
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Typical Ratios and Multiples Used in Relative Valuation |
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461 | (6) |
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Case Study: Determining the Technology Value of a Sample of Comparable Biotechnology Firms |
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467 | (3) |
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Selecting the Right Multiple for a Given Situation |
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470 | (2) |
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472 | (3) |
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Venture Capital Method of Valuation |
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475 | (42) |
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Activities of Private Equity Investors: An Overview of the Industry |
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475 | (1) |
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Financial Intermediaries versus Principal Investors |
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476 | (1) |
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476 | (1) |
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477 | (1) |
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477 | (4) |
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Typical Venture's Life Cycle of Development |
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481 | (2) |
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Typical Approach to Creating a Venture Capital or Private Equity Fund |
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483 | (7) |
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How Venture Capitalists Improve Their Chances for Success |
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490 | (2) |
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Special Case of Life Science Ventures: Recent Exit Trends |
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492 | (2) |
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Venture Capital Method of Valuing Young Fledgling Firms |
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494 | (3) |
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Case Study: TSP Enterprises Seeks Venture Financing |
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497 | (1) |
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Applying the Venture Capital Valuation Method |
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498 | (4) |
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Adjusting the VC Method for Multiple Rounds of Financing |
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502 | (6) |
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Summary of Two Financing Rounds for TSP Enterprises |
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508 | (2) |
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Multiple-Round versus Single-Round Financing |
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510 | (2) |
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Questions When Applying the Venture Capital Method |
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512 | (3) |
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515 | (1) |
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516 | (1) |
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Valuing and Structuring High Technology Strategic Alliances |
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517 | (40) |
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Valuing Licenses as the Present Value of the Future Benefits of Ownership and Development |
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518 | (3) |
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Basic Licensing Model---Sharing the Economic Pie |
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521 | (1) |
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Case Study: Advanced Dermal Delivery, Inc. and the Launch of the New Transdermal Patch |
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522 | (1) |
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523 | (1) |
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524 | (1) |
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Upcoming Licensing Negotiations |
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525 | (1) |
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Constructing the Financial Forecasts and Licensing Model |
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526 | (9) |
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Comparing Spreadsheet Results |
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535 | (11) |
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Next Step: Sensitivity Analysis |
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546 | (3) |
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Next Step: Developing Scenarios to Quantify the Risks of New Product Failure |
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549 | (2) |
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Developing Other Likely Scenarios and Negotiating Points |
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551 | (2) |
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Final Tips on Negotiation Preparations for Structuring the Deal |
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553 | (2) |
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555 | (2) |
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557 | (12) |
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The Basic Broth of Business |
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558 | (2) |
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Building the High-Technology Business Venture |
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560 | (9) |
Notes |
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569 | (20) |
References |
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589 | (10) |
About the Authors |
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599 | (2) |
About the Contributors |
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601 | (4) |
About the Web Site |
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605 | (2) |
Index |
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607 | |