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Mult ultiple iple Pat athw hway ays for or Univer Univ ersit ity-I -Indus ndustry Innov nnovat ation ion Peter Lammers New Mexico State University New Mexico State University

Required Reading: Trends in the Innovation Ecosystem 2013, National Academies Press • To VCs the pinnacle of Innovation Ecosystem is the Silicon Valley computer software/ hardware industry u That success translates into a disproportionate influence on the tech-transfer offices in universities u Set expectations about investment risk, start- up costs, management, strategic partners, on and on … . New Mexico State University

Business and Management themes to keep in mind.. 1. Innovation is catalyzed by the movement and interaction of individuals from different sectors; it is a contact sport … 2. Tolerance of failure is important as are mechanisms for managing timely down-selection; don’t be afraid to fail … 3. Start with a market need and make small bets quickly in areas you understand; act, learn, build, repeat … 4. It takes a team; don’t become a bottleneck New Mexico State University

“The Innovators Dilemma”, C. Christensen Sustaining versus Disruptive technologies • Large corporations work with sustaining technologies , know their market, respond and manipulate customers via expert marketing, and have capabilities and mechanisms in place for incremental process improvements • Disruptive Technologies may Examples – lack refinement Old New Telegraph Telephone – have performance problems Cathode Ray Tube LCD Film Digital photograph – appeal to a limited audience Personal Computer Smart Phone – not have a proven application Fingerprints DNA • Yet very large scale disruptive technology requires strategic partners New Mexico State University

“The Innovators Dilemma”, The Corrollary Sustaining versus Disruptive technologies • University-Industry partnerships may be driven by incremental improvements in existing technology YET • “Incremental Improvement” is a kiss-of-death comment in a grant review panel at a national funding agency • Traditional governmental funding sources are indispensible to innovation Multiple Pathways in University- Industry Innovation? New Mexico State University

Multiple Pathways for University- Industry Innovation • SEMATECH: Semi-conductor manufacturing technologies • Pre-competitive Research and Development Establishing Precompetitive Collaborations to Stimulate Genomics-Driven Product Development: Workshop Summary - National Academies Press • Start Ups (The best way to prepare for the future is to invent it … ) New Mexico State University

Start Up Example: Genetic Testing Laboratories (2001-present) One-time, non-renewable grant from ARO for a Biotechnlogy Information Facility, had to be self-sustaining – www.gtldna.com – Based on simple sequence repeats (SSRs) in DNA like: (AGC) n or (TGAC) n or (CCGAT) n – Measure the value of n for 13 SSR different loci in the human genome to definitively identify the source of any DNA sample – Do it at <$50/sample – AND NEVER MAKE A MISTAKE New Mexico State University

Start Up Example: Genetic Testing Laboratories (2001-present) – The DNA technology was trivially easy – The quality control problem was enormous – The solution turned out to be who we hired: • MS Analytical Chemistry (qualifications) • Army Ranger (not afraid of risk) • Ran a nerve gas incineration plant on Johnston Island for Raytheon (experience) • Knew ISO and Wrote a Quality Policy that earn a commendation from AABB on our first accreditation visit (work ethic) New Mexico State University

Start Up Example: Genetic Testing Laboratories (2001-present) – We used commercial platforms for DNA testing – Created our own quality control policy and automation that provided a competitive edge – survival! – GTL is now the “factory” for “dealerships” around the world for: • relationship testing • Forensics • Clinical DNA testing: first product was cytochrome P450 of alleles that determine statin metabolism critical for proper dosage – Disruptive technology coupled with sustaining business principles New Mexico State University

Start Up Example: Genetic Testing Laboratories (2001-present) – Joint University/Founders plus Investors 2004-2013 – Acquired by Bell Health 2013 – Did not serve the original intention of supporting the Biotechnology Information Facility – Did not bring NMSU a huge windfall – Did provide many jobs (>50), learning experiences, a long-term client at the Arrowhead Innovation Center, good-will in the law enforcement community, New Mexico State University

What Next: Chemical Imbalances Drive Ecosystem Imbalances New Mexico State University

Disruptive Opportunities at the Energy-Environment- Water Nexus Energy positive wastewater treatment with extremophile algae providing photosynthetic energy boost Closed-bag Photobioreactors to prevent evaporative water losses, more treated water for repurposed uses Nitrogen and Phosphate recycling from hydrothermal liquefaction to produce bio-crude oil New Mexico State University

Disruptive Opportunities at the Energy-Environment- Water Nexus Realization of Algae Potential: REAP 2013-2015 Goal: Achieve >2,500 gallons biocrude oil per acre per year within 30 months NMSU – Lead Institution Argonne, Los Alamos and Pacific Northwest National Labs Washington State, Michigan State Universities Algenol Biofuels, Pan Pacific Technologies, UOP-Honeywell

Desert Temp Profiles in Algenol-Type Photobioreactors New Mexico EPSCoR RII4 14

Bacterial survivability test at different pH and temperature conditions: E. coli 13-B6 (wastewater isolate highly resistant to multiple antibiotics) (M.I. agar) 2.E+10 CFU’s/100 mL 2.E+10 40 C 1.E+10 9.E+09 6.E+09 3.E+09 0.E+00 0 10 20 30 40 50 2.E+10 CFU’s/100 mL 2.E+10 1.E+10 9.E+09 6.E+09 3.E+09 0.E+00 48 C 0 10 20 30 40 50 Time (hours)

Very Large Scale, Disruptive Environmental Engineering is the Future • Environmental engineering at the energy, water and environment nexus is critical and immanent • Successful technologies will be disruptive to agribusiness, chemical and fuel companies • Yet the industry hardly exists • Investment likely to come first from leveraging future energy savings (Johnson Controls) • Wastewater treatment with nutrient recycling is a key enabling technology New Mexico State University

Authors and Collaborators: • Wayne Van Voorhies, Nick Csakan, Adrian Unc, Mark Seger, N. Nirmalakhandan, Thinesh Selvaratnam, Shuguang Deng, Harvind Reddy (NMSU) • Tanner Schaub, Omar Holguin, Barry Dungan (NMSU) Funding: • DoE – EERE: NAABB, REAP, RAFT • Air Force Research Laboratory • National Science Foundation (NM-EPSCoR RII4) • Office of the Vice President for Research – NMSU PBR Donations • Algenol Biofuels • Sapphire Biofuels