Bringing New Technology to a Complex Market : A Market Analysis of the VIPS Protocol

Abstract: University research being adopted by, or transferred to, industry has enabled many of the things we now take for granted. The road from a breakthrough at a university to societal consequences is however a long and winding road full of dead ends and surprising turns. To guide researchers attempting to transfer their discoveries into industry applications there are many support systems, for example the Technology Transfer Offices (TTO) tied to each Swedish university. After patenting and contracting with a TTO, a first step often consists of finding a company which can utilize the new technology or, similarly, finding an application for the new technology which can benefit a collection of companies. At this stage there are frequently many ideas for applications but a lack of knowledge about how the technology will perform if implemented and how the relevant companies are evaluating investments into new technology. To solve this, market researchers often divide the intended market into segments and explore the properties of these segments as they relate to the new technology. While there is much research into how this market segmentation and segment exploration is to be done there are no clear and general guidelines. This problem is complex and the answer is contingent on the specifics of the relevant technology, prompting researchers to call for more case studies. This report reviews, comments on and adds to research on market segmentation methodology when trying to transfer new technology to complex Business to Business markets from the outside. It ends with a model suggestion derived from B2B market segmentation research as well as the start-up literature and field experience. This is done alongside a case study of a start-up based on the VIPS-technology, which is a protocol used in microprocessors. The report also provides a decision basis for VIPS on which to base a future marketing strategy.