Medical device research and design - Biomedical Engineering Desk Reference - page 451

is, at this time, the only meaningful feature in the nego-
tiation. In some cases, it can be advantageous to start
a new company that conducts the development work and
is responsible for market launching. If the invention to be
exploited concerns completely new areas where few or no
established companies are active, then a start-up company
for commercialization can be a quicker route to the
market. After successful product development and
market launching, the company can be sold. Upon starting
a company, the patent issue is generally less important,
while matters concerning marketing and manufacturing
are more important. After the invention has been assessed
from market, technical, and economic perspectives, it is
time to decide on the form of full-scale exploitation.
Often, it is the inventor's own disposition that de-
termines the form of exploitation chosen. If the inventor
is more interested in the continuous development of
a new technique, then licensing (which amounts to
transferring the marketing and financial problems to
someone else) is the choice. If, however, the inventor
finds it stimulating to work with the entire production
process from technical development work through to
sales, then starting a company is the choice. A CE who is
employed by a hospital will find that the hospital's policy
also influences the choice of form of exploitation. Table
5.3-1 describes differences between the two forms of
exploitation.

Table 5.3-1 Comparison of activities on exploiting an invention

Activity Demand

New company Licensing

Patenting Less More

Prototype design Same Same

Marketing More Less

Manufacturing More Less

Financing Same Same

Organization More Less

Time span Better Worse

Risks Same Same

licensing and the starting of new companies. Licensing
entails transferring the rights of the invention to an en-
trepreneur, who is responsible for continued development
and commercial introduction. Generally, when choosing
the form of licensing, the inventor has strong patent
protection as a basis for negotiations with the entrepre-
neur. Without strong patent protection, the licensing
negotiations are difficult, as it is generally the patent that

References

Caceres CA. Management and Clinical
Engineering . Artech House Books,
1980.
OECD: Innovation Policy-Trends and
Perspectives. Paris, OECD, 1992.

Kohn LT, Corrigan JM, Donaldson MS. To
Err is Human: Building a Safer Health
System , National Academy Press, 2000.
Ohlsson L. R&D for Swedish Industrial
Renewal (DS 1992:109). Stockholm,
Utbildningsdepartementet, 1992.

Committee of Science and Technology.
Small, High Technology Firms and
Innovation. Washington, D.C., U.S.
Government Printing Office, 1980.
F ¨lster S. The Art of Encouraging Invention .
Stockholm, IUI, 1991.

Further information

Brown KA. Inventors atWork: Interviews with
16NotableAmerican Inventors , TEMPUS
Books, 1988. This topic gives interesting
perspectives on the invention process.

In addition, the serials Journal of Medical
and Biological Engineering and
Computing, Physiological Measurements,
Medical Engineering , and Medical

Physics publish papers on new
instrument ideas. National authorities
give advice and recommend ways to
start new companies.