Commercialisation strategies for entrepreneurial firms -A case study at Layerlab AB

Abstract: This master’s thesis deals with commercialisation strategies for entrepreneurial firms. The basis of the work is a framework of investigation that incorporates a company’s internal and external factors, crucial when determining an appropriate strategy. This framework of investigation is applied on the case company Layerlab. Layerlab is an entrepreneurial company in the biotech industry, aiming at commercialising a technology for analysing membrane-bound proteins in existing surface-based biosensors. This technology is much coveted in the industry as it will enable researchers to analyse this large group of important proteins in label-free biosensors instead of using labelled or cell-based methods, which are both time-consuming and expensive in an already costly and lengthy drug development process. The first part of the work describes different forms of commercialisation and factors that influence the choice of an appropriate strategy. The second part presents the empirical results when applying the framework of investigation on Layerlab and its environment. Ten in-depth interviews with key personnel in instrument and biochip companies are performed to analyse the competition and the value system in the industry. The focus of this work is on the protein biochip market and particularly the biochips that are used in SPR- (Surface Plasmon Resonance), PWG- (Planar Waveguide) and SELDI- (Surface- Enhanced Laser Desorption/Ionization) instruments where Layerlab’s technology in the first product development step, is applicable. To enter this market, there are some entry barriers that will be difficult to surmount for Layerlab in a new venture with its limited amount of human and financial resources. These are the protected design of the biochips and the costs of development, production, marketing and sales departments. The complementary assets that are crucial in this market are marketing and sales resources because of the huge amount of different technologies that exist in the market. Moreover, the markets that are interesting for Layerlab are niche markets and therefore it is important to have a global presence in order to stay competitive. All this together makes a cooperation strategy, such as a strategic alliance or a joint venture the most viable alternative for Layerlab. The empirical research results in a recommendation where Layerlab first should increase the value of its technology in order to appropriate the most of the potential return of its invention. Layerlab must therefore, obtain a proof of concept in a customer-based environment. Then Layerlab must demonstrate the value of its technology, which can be done by contacting renowned researchers in academia or industry. They will be asked to employ the technology and publish articles about their results in professional journal. Finally, it is time to choose potential partners and to contact them. The objective of the cooperation must be determined, and might be a result of the proof of concept-project. More value will be appropriated if the proof of concept is successful because then the cooperation can involve only a near market collaboration and less of Layerlab’s competencies and technology will be lost to its partner.