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From Innovation to Cash Flows: Value Creation by Structuring High Technology Alliances [Kietas viršelis]

4.11/5 (17 ratings by Goodreads)
  • Formatas: Hardback, 618 pages, aukštis x plotis x storis: 257x183x48 mm, weight: 1268 g, Illustrations
  • Serija: Wiley Finance Series
  • Išleidimo metai: 28-Aug-2009
  • Leidėjas: John Wiley & Sons Ltd
  • ISBN-10: 0470118091
  • ISBN-13: 9780470118092
Kitos knygos pagal šią temą:
  • Formatas: Hardback, 618 pages, aukštis x plotis x storis: 257x183x48 mm, weight: 1268 g, Illustrations
  • Serija: Wiley Finance Series
  • Išleidimo metai: 28-Aug-2009
  • Leidėjas: John Wiley & Sons Ltd
  • ISBN-10: 0470118091
  • ISBN-13: 9780470118092
Kitos knygos pagal šią temą:
Praise for From Innovation to Cash Flows

"Critically important topics for all entrepreneurs, new and experienced. Collaboration, intellectual property, and funding are described with depth and thoughtfulness. From Innovation to Cash Flows provides both the theoretical structure and the rich examples to serve as a great reference. Not to be missed!"
Cheryl A. Fragiadakis, Head of Technology Transfer and Intellectual Property Management, Lawrence Berkeley National Laboratory

"From Innovation to Cash Flows is a unique book that covers many of the essentials to be successful as a biotechnology or high-tech entrepreneur. The combination of theory and practical examples adds direct business value. This comprehensive work will prevent any starting venture from making costly mistakes."
Jeroen Nieuwenhuis, PhD, MBA, Corporate Entrepreneur, Magnotech Venture, Philips Healthcare Incubator

"Truly exhaustive in its coverage of all the different aspects of managing high-technology innovations, this book constitutes an invaluable resource for technology entrepreneurs."
Juhana Rauramo, Partner, Bio Fund Management Ltd.

"There are many ways to Rome. This is an easy-to-read, systematic, and practical compendium, which describes and analyzes numerous methods to create value in a highly volatile technology environment. The book that the business developer-to-be in a start-up venture or the project manager in a multinational should not leave on the plane."
Marc Olivier Perret, General Partner, Gilde Healthcare Partners

"From Innovation to Cash Flows is a wellspring of insights and inspiration for anyone with a desire to start up a high-tech venture. The reader is guided step by step through the twists and turns of strategy, contract law, intellectual property rights management, and strategic partnering. A global team of experts from law, science, and business collaborated to write this book; their pooled know-how and collective experiences shine through. The result is highly recommended. Every aspiring entrepreneur with a scientific bent will want to own this book for his or her own library."
Laura Cha, Deputy Chairman, The Hongkong and Shanghai Banking Corporation Ltd.

"Alliances often are a vital component of successful high-tech ventures. Through its unique blend of sound management theory and wise business and legal advice, this book shows high-tech entrepreneurs how to build innovative business models based on strategic collaboration with other firms."
Xavier Mendoza, Deputy Director General, ESADE, Ramon Llull University, and former Dean, ESADE Business School, Spain

"This book is distinctive because it tells you how to turn your idea into a profitable business—a combination of savvy business advice and extensive legal documents that is original. This is a book to be read, and then revisited. You will want to come back to it time and again for references, for sample documents, and for sage advice on how to take the next step."
From the Foreword by Henry Chesbrough, Adjunct Professor and Executive Director, Center for Open Innovation, Haas School of Business, UC Berkeley, and Karl S. Pister, Dean and Roy W. Carlson Professor of Engineering Emeritus, UC Berkeley

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