With innovation being a team sport, Medilink looks at some of the assistance available to support the development of new partnerships, to identify and develop winning ideas, and then successfully take products to market.
With the advance and convergence of new technologies and the ongoing development of patient centred healthcare delivery systems, innovation can no longer be seen in the context of a single organisation but must instead be regarded as a team sport.
Collaboration and development between the healthcare industry, academic and clinical communities is becoming a norm, but the bar is being continually raised. The drive for more advanced solutions to meet ever more demanding global needs has led to stiffer competition and has intensified the need to develop new relationships and exploit cutting-edge technologies.
Recognising this need, support agencies are structuring their programmes to favour more collaborative project submissions between industry and clinical /academic partnerships.
A good example is the NHS National Institute for Health Research’s Invention for Innovation (NIHR i4i) Future Product Development (FPD) Funding programme.
Launched in July 2008, the scheme aims to provide improved identification, new investment and accelerate the development of healthcare technologies.
There are a number of FPD streams which companies are encouraged to access with clinical and academic partners, these include feasibility, applied research and commercial viability projects (further details can be found on opposite page).
Another scheme, which is administrated by Yorkshire Forward, the ‘Grant for Research and Development (GRD)’, sets aside £18.5m over 5 years to provide finance to individuals and SMEs to research, develop and commercialsie technologically innovative products and processes. There are four types of grants available; including micro projects, research projects, development projects and exceptional development projects. For more information visit the Yorkshire Forward website - www.yfgrd.org
Whilst there are a plethora of new technologies and solutions, many often fail to reach the market, as businesses may have the capability to develop an idea but lack the experience, expertise, routes to market and most importantly the financial resources.
Recognising this gap a new three-year investment readiness programme has recently been introduced to help innovative healthcare companies access the finance they need to grow their ideas and increase their chances of success.
Established by regional development agency Yorkshire Forward, ‘Access to Finance for Healthcare Technology Companies’, aims to provide entrepreneurs and companies in the sector with the knowledge, advice, tools and resources needed to access equity funding from national and international investors. For investors it will provide a pipeline of attractive prospective investments between £50,000 and £5m.
Companies accepted on the programme will receive ongoing support and assistance, moving through a structured programme starting with a recruitment and induction phase, followed by a market and technology assessment, investment readiness workshops, mentoring, and investor introductions.
The programme is delivered by Grant Thornton, (in partnership with BITECIC and Quotec), who have extensive experience in developing and delivering investment readiness programmes, including the highly successful gateway2investment (g2i) multi-sector programme in London. (case study opposite). Information about the scheme can be accessed via www.investinginhealth.co.uk
Case study: Biotronics 3D
Below is an example of how Biotronics 3D, a medical image analysis and visualisation technology company have already benefited from the similar scheme run by Grant Thornton in London, securing £1.3m investment.
Management were facing the challenges of taking an innovative software application to market and of securing the requisite funding to accelerate product commercialisation. The company was referred to ‘Gateway to Investment’ by the London Technology Network.
After an initial assessment and induction process, Biotronics 3D, were supported with mentoring focused on the route to market, legal considerations, the importance of their intellectual property strategy and financial options for investment structures. Before investor introductions, the consortium drafted and advised on the company's investment collateral, including the business plan, business model, opportunity note and investor presentation
The consortium advised Biotronics 3D on those venture capital funds that would be interested in investing in a product of this nature. Having agreed a short list of preferred potential investors, the consortium made the relevant investor introductions. Following the introduction, negotiations commenced, culminating in an offer of investment last year.
Invention for Innovation - i4i programme
A summary of the Future Product Development (FPD) funding within the i4i programme can be found below:
FPD1 – Feasibility study. Up to 1 year, clinician or academic led, to study if prior basic research can be used to meet a healthcare need. £100K is typically available.
FPD2 – Applied research project. Detailed 2-3 year investigation, clinician or academic led, to provide further evidence of the capability to deliver improved healthcare outcomes. £150K per year is typically available.
FPD3a - New product assessment. Up to one year, collaborative, to study innovative use of an existing or emerging product or technology to meet a healthcare need. First stage of a full collaborative applied research project, 75% funding. £100K typically available. ****The first call for the FPD3a steam is now open. For more information on eligibility and to submit an application please visit http://www.nihr-ccf.org.uk/site/programmes/i4i/ The deadline is 5.00pm on Friday 22nd May 2009 and successful applicants will be notified by late July 2009.****
FPD3b - Collaborative applied research Detailed 2-3 year investigation, collaborative between industrial and research partners, to demonstrate the delivery of improved healthcare outcomes, 50% funding. £300K per year is typically available.
The calls for applications are on a rolling basis with deadline dates throughout the year. For further information on the programme and how to apply, please visit www.nihr-ccf.org.uk/site/programmes/i4i.
Medilink will be organising ‘hands-on’ workshops (details to be available soon) which will provide individuals with a valuable insight in to the i4i application process, and offer an insight into successful applications; giving potential applicants, the opportunity to speak to i4i representatives in confidence.
If you need advice on any area of product innovation including on how to best utilise the available regional and national support mechanisms, please contact Giles Proffitt on 0114 222 7452 or g.proffitt@medilink.co.uk