Commercializing biotechnology is a long and challenging process. It is essential to formulate at least a rough plan for commercialization before committing too many resources. In evaluating a core technology, look for intellectual property protection and the ability to generate multiple products or services. Applications should be judged by the criteria presented in Chapter 12: freedom to operate, availability of technological factors, and ability to generate a profit. Before investing too many resources in research and development, it is vital to develop an understanding of who the customers are and how they can be reached. In developing a company, look to Doriot's rules presented at the beginning of this chapter and the criteria sought by university incubators. These are the elements that investors will look for. Why wait until you meet investors to decide if an idea is marketable?

Biotechnology business models can be segmented into a few discrete types, each with unique advantages and weaknesses that make them suited for specific contexts. Factors such as technical challenges, barriers to entry, and the level of competition in a sector (see Porter's Five Forces in Chapter 12) may dictate the best model for a new entrant or incumbent firm.

In an environment where barriers to entry are relatively low — no 'gatekeepers' controlling markets through broad patents or domination of marketing channels — and the financing climate is amenable, dedicated product development may be a good strategy. As markets mature, the control of markets through patents and ownership of key infrastructure or sales and distribution channels limits the ability of start-ups to reach customers, making tool or platform approaches preferable. Other situations, such as a glut of viable drug leads, for example, favor the use of 'no research, development only' (NRDO) models (see Specialty pharmaceutical / NRDO Models in Chapter 10).

The processes of selecting a business model and attracting funding are linked. There are often several modes by which an invention can be commercialized. Some of these may be more lucrative than others, but attracting funding may ultimately require crafting an opportunity that suits market trends and the interests of investors.