How to Start a High-Tech-Business
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MessungElektrizitätKalenderjahrSeeschiffErderAngeregter ZustandModellbauerTagMechanikerinBlatt <Papier>AtomphysikerVorlesung/KonferenzBesprechung/Interview
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TinteAtomphysikerBauxitbergbauAntiquarkSchlichte <Textiltechnik>Higgs-TeilchenFeldquantStoffvereinigenKanoneToasterLocherMotorKartonFeldeffekttransistorKorkindustrieFACTS-AnlageVorlesung/KonferenzBesprechung/Interview
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Konverter <Kerntechnik>KupferbarrenSchwingungsphaseMonatBasis <Elektrotechnik>KalenderjahrDrehenAngeregter ZustandErsatzteilVorlesung/KonferenzBesprechung/Interview
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Zelle <Mikroelektronik>LeistenKette <Zugmittel>Thermische ElektronenemissionKryptonlampeProzessleittechnikSatzspiegelTissueKalenderjahrReaktionsprinzipPassfederKorporaleVorlesung/KonferenzBesprechung/Interview
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BiegenFlüssigkeitZelle <Mikroelektronik>Speise <Technik>FeldeffekttransistorTagTissuePanzerLuftdruckOberleitungsomnibusDosierenVersilberungPassfederChirpFuß <Maßeinheit>Vorlesung/KonferenzBesprechung/Interview
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MunitionBlechdoseBootBiegenElektrodeFeuerwehrfahrzeugMikroskopFörderleistungZelle <Mikroelektronik>Temperaturabhängiger WiderstandKraft-Wärme-KopplungElektrische StromdichteSpannungsänderungTissueZylinderblockGruppenlaufzeitMetallschichtPassfederHochspannungsmastChirpVorlesung/KonferenzBesprechung/Interview
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ElektrodeZelle <Mikroelektronik>Speise <Technik>Temperaturabhängiger WiderstandRauschsignalSEEDKlingeTissueBund Schweizer ArchitektenAtomphysikerFrequenzsprungverfahrenNegativer WiderstandQuantenfluktuationVorlesung/KonferenzBesprechung/Interview
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LeitungstheorieLeitwerk <Flugzeug>AtomphysikerZelle <Mikroelektronik>NiederfrequenzRauschsignalBand <Textilien>Optisches SpektrumChirpStücklisteSpannungsrauschenUnterwasserfahrzeugKalenderjahrEisenkernVorlesung/KonferenzBesprechung/Interview
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ElementarteilchenphysikFestkörperWarmumformenPostkutscheColourSOHO <Satellit>AtomphysikerEisenbahnwagenAngeregter ZustandWeltraumVorlesung/KonferenzBesprechung/Interview
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MessungWarmumformenProfilwalzenWeltraumPhotolithographieSchwingungsphaseChirpDrehenElektrodeAngeregter ZustandFuß <Maßeinheit>Vorlesung/KonferenzBesprechung/Interview
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ProfilwalzenAngeregter ZustandGleisketteNanotechnologieErdefunkstelleWocheBlatt <Papier>TelefonPhototechnikChirpComte AC-4 GentlemanVorlesung/KonferenzBesprechung/Interview
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ElementarteilchenphysikHalbleiterVideotechnikMaterialNutzfahrzeugNiederspannungsnetzNanotechnologieEisBesprechung/InterviewComputeranimation
Transkript: Englisch(automatisch erzeugt)
00:21
I want to thank you for those nice words of introduction. And it remained to be seen whether physicists will succeed in business or not. I'm just trying for the present time. The title of my talk is How to Start a High-Tech Business.
00:44
And I probably should add on how to start a high-tech business in the United States, because this is particular for the United States. Actually, some of you may wonder why start a high-tech business. And there can be many reasons for why you want to do that.
01:04
One is, for example, you might want to get rich. And I am sorry to say that for physicists, that is not the way to get rich. I have learned that in 50 years. Now, another reason to start a high-tech business
01:21
is to get money for doing research. And this is something which has happened in the United States the last five or six years. And let me try to teach you a new word. I just learned it myself, so I'm proud of it. And then I'd like to teach it to you.
01:40
There is a word in American and English called paradigm. And in the United States today, there is a new paradigm. And what the paradigm means, it means a model. And for those in science, it means new boundary conditions. For example, in the field of physics, we have had two new paradigms here.
02:02
We have the theory of relativity. After the theory of relativity came about, physics was never the same. It's a new paradigm. You had to take into account the theory of relativity. After quantum mechanics came in, it's the same thing. A new paradigm, a new model, physics
02:21
will never look the same. So that's easy to understand. But there's a new paradigm again in physics in the United States. And this new paradigm, like it or not, is the collapse of the Soviet Union. You may say, what in the world have
02:42
the collapse of the Soviet Union have to do with physics? But if you read the papers, you noticed when the Soviet Union collapsed, so did the superconducting supercollider. These things are not disconnected. In the United States, the research,
03:03
particularly physics research since the Second World War, has been militarily driven. We physicists don't like to think about that. But nevertheless, it's a fact. Most of the money we get from Congress is because they thought the Soviet Union could do better.
03:22
And so as an assurance, the Congress gave money. It may be tragic for us to think about that the congressmen don't care about the Higgs boson or the top quark. They really don't care. They don't even care about the quantum size hole effect, I'm sorry to say.
03:51
And today in the United States, the research is economically driven. This is the new paradigm. Not military research, but to do economic research.
04:03
A good friend of mine who is now dead, John Bardeen, said the reason that the Japanese were so successful is that in Japan, and this excludes Leo, the best scientists were developing toasters and mix masters.
04:20
In the United States, the best scientists were developing airplanes and fancy things and cannons and stuff, and that's not so good. Toasters and mix masters in the long run is better, and this is what United States at the present time is trying to do. And to that end, there is a federal program
04:42
called the Small Business Innovation Research Program. And all agencies in the United States has to contribute a certain amount of their money to this particular program. That goes from the National Science Foundation, the National Institute of Health, and so on.
05:02
And what it means is that they give money away so you can try small ideas in business. That's what it means. And for example, NASA has such a program, as you can see here, or for example, the Department of Defense has such a program,
05:24
as you can see here. So they all have this program, and they all have to give away a certain amount of all the money they have to small businesses. So there I am, why not take advantage of this largeness? So this is what I thought.
05:40
Now, what is this program all about? The program consists of three phases. And if you apply for money, there's something called phase one. If you can get the phase one program, you can get up to $100,000, and you have to spend it in six months.
06:05
That's the easy part, to spend it in six months. If you are successful in phase one, then you can apply for a phase two program, and then you get $750,000 maximum,
06:21
and then you have two years to spend it. And that is real money. And now, of course, for the garment hope is that you go into phase three, and fortunately, there's no money there. And so this is the basis of the program. This program is for small businesses.
06:41
And what that means in the United States, first of all, there are two things you gotta satisfy. 51% of the company has to be owned by United States people. What I mean by that, you have to be a citizen, or you have to be a legally admitted alien.
07:00
Either way, it's okay. And 51% of the company has to be owned by such a person. The other requirement is that you have to have less than 500 employees. Now, I'm from Norway, and that's the biggest business in Norway is 500 employees, so. So that's not so difficult to satisfy.
07:23
Now, if you are going to start a business, you should really have an idea. And what we always associate with the light bulb and Edison's and stuff and having a good idea,
07:40
not knowing or not thinking about, the light bulb was invented 100 years before Edison was born. It really was an old invention. Edison just recognized it as being a very good possibility. So it's not really enough to have a good idea. You also have to recognize this is useful.
08:01
And as two examples is that there's a book written about the Xerox Corporation. And the subtitle there is The Billions Nobody Wanted. The Xerox process was a very good idea, but nobody believed it. General Electric, to their despair,
08:22
turned it down long ago. They said nobody would ever do this sort of thing. And other big companies had the same chance, and they didn't recognize it. Another good idea was the unusual origin of polymerase chain reaction, which Mullis got the Nobel Prize for last year. It's just a marvelous thing,
08:41
and a lot of people sort of thought about it, and a lot of people have published about it before, but nobody really thought it was a good idea. And when Mullis did it, it turned out to be a pervasive idea. Everybody uses that in biology. It's one of these things that's not enough to have a good idea,
09:00
you also have to recognize that it is a good idea. Now my friend Charlie Keys and I, as you heard in the introduction, I dealt with immunology, so we thought we had a very good idea of looking at the immune reaction using electrical fields. And since it was our idea, we thought it was terrific,
09:22
but it wasn't any good. So that was not so bad a good idea, but now we use this particular patent to look at cells in tissue culture, and that's what my high technology business is all about. So let me tell you a little bit about cells in tissue culture, so you get a little feeling for what I'm trying to do.
09:43
And let me remind you that all of us consist of single cells. That includes elephant and flowers and me and you. We are made up of, as Carl Sagan would say, billions and billions of cells. And so just like bricks make up a building,
10:02
cells make up people. And the interesting thing is that you can take these cells and grow them independent of the body. And to a physicist, that really is an amazing thing, because you are alive and the cells are alive.
10:20
And so if you think about that, it's just a strange thing. And the way you start the tissue culture, you take a little petri dish, and in the petri dish you put the good liquid you think the cells like to eat. Then you take a little piece of meat and put it in a petri dish. And if the piece of meat is fresh,
10:41
the cells will come crawling out, as shown here at the bottom. So here's the piece of meat. Here the cells come out, and now you have cells in the bottom of the tissue culture dish. Now you started the tissue culture. When I say a little piece of meat, you really can't buy it at the grocer. You should have a really piece of fresh meat.
11:01
And I told that to a student I have, and he liked that very much. And next day he came to the laboratory and he had a bandage on his elbow on his upper arm. So I asked him what happened. He said, well, he cut out a little piece of fresh meat
11:21
and started his tissue culture. And this is what I call real dedication. Those are the kind of students I like. And actually we still use his cells to this day. He's long since graduated, but we keep the cells going in the laboratory. And this is my good friend here, Charlie Keys.
11:44
His name doesn't quite show. And the tissue culture today is a very simple field and it's very easy to do. When you need an incubator, you put the cells in. But I should say that the field really is not strictly scientific. It's a little bit like growing flowers.
12:01
Some people have a nag for doing it, some other people don't. So it's a little bit like that. And actually Dr. Keys very often talk to his cells, just like old ladies talk to their flowers. He denies that, but I've called him at it several times. Now, when people, when you look at cells in the microscope, what you see is this.
12:25
This is an optical microscope. And the cells here, little hard to see maybe, but there's hundreds of cells here, maybe thousands of cells. The cells in the top of this picture are cancer cells. The cells in the bottom of this picture are normal cells.
12:41
And if you look at them, you see the normal cell look different. They are sort of organized, the cancer cells are disorganized. And this is what people do when they study cells in tissue culture. They take the cells out and they look at them in the microscope and they tell their friends what they see. Believe it or not, if you're unfortunate enough
13:01
to have cancer or thought you're cancer, the medical doctor take a biopsy and he looks at it and he decides that these cells are organized so you don't have cancer, or the cells are disorganized so we have to operate. Not because the medical doctor is a bad doctor.
13:20
This is the way he's done today, by looking, it's a subjective decision. And that makes me a little scared. But anyway, that's what he's done. So my friend Charlie Keys and I decided that we were going to try to get a little more science into this and so we have developed this piece of apparatus
13:42
which is illustrated here. And the heart of the apparatus is a small electrode in the tissue culture. And there you apply a voltage current with flow in the tissue culture field and back to the big electrode. This small electrode act as a bottleneck.
14:01
And therefore, the resistance will increase when you block the electrode with cells. Because it blocks the current, so less current with flow when you have the cells there and you don't have the cells there. And to do that, we need a lock-in amplifier, a personal computer, and all sorts of things like that.
14:20
But a very simple idea. And the basic idea is that the electrode has to be small. And that's where we have our patent. So what we are planning to do, if things go well, we're gonna sell all this equipment here, plus we're gonna sell the little electrode and that is, as we tell each other, the razor blade of our business
14:41
because you gotta buy that again and again and again. And so we hope to, this is one early prototype, we hope to make little wells like this where we have the small electrode in the wells for people to grow cells in tissue culture. And let me briefly show you how it looks.
15:02
If you seed cells out in, say, four different dishes with have different protein on the surface, they have different surfaces, you get four different curves. And so here, before this, when you seed the cells out, when the cells settle down the electrode, the resistance increases and you can tell what the cells like to do.
15:23
And here you see the cells like this particular protein called fibronectin, much more than like this particular protein called BSA because its cells go down much faster. So why do you do such experiments? Well, you do this kind of experiment because if you get cancer, if, for example, a woman gets breast cancer,
15:42
that by itself is not dangerous because lumps in your breast is not dangerous. What is dangerous is the cells spread from your breast into breast cancer very often, the bone marrow. And when the cells settle in the bone marrow, then it's very dangerous. So you go to ask yourself the question, why do cells do that?
16:01
And this experiment is made to try to find out what kind of surfaces the cells like. And then we can look at the cells after a while and see how they behave on the electrode. Since the cells are alive, the resistance we see will continually fluctuate.
16:22
And here we see, this is a cancer cell, you see a large amount of fluctuation, a normal cell, much less fluctuation. And if you kill the cells, you get no fluctuations at all. And so these, here we look like you have oscillations. And fortunately, it turns out to be just noise,
16:43
if you wanna call it that. And let me show you what the noise which physicists recognizes. And these are the free noises which I easily recognize by a physicist. First we call it white noise, which is the frequency spectrum is just flat.
17:02
Then we have one over F noise, where the frequency goes up, the one over F, and then we have Brownian motion where the frequency go up at one over F squared. It's very interesting is that one over F noise, where you get a frequency spectrum like that, is music. And if you listen to Beethoven's Fifth and analyze it,
17:23
you'll get this curve. If you listen to Scharz and Pepper's Beatle music and analyze it, you get this curve. So you see, the way we analyze things in physics is not all that good, because the big difference between Beethoven's Fifth and the Beatle music,
17:41
but the analyzation and physics give you the same answer. So we thought we should listen to ourselves and I'm gonna try to, our cell looks somewhat in between here and they also sound like music and I like to try to play, if I can work it out here, the song of the cancer cells,
18:00
how they play it out here and we'll see whether that will work or not. And I think you ought to be quiet. That's one thing. And we'll see you.
18:34
So, that's enough. What we are...
18:44
What we were trying to do, since we know it's a big difference, Beethoven's Fifth and the Beatle music, to listen to the cancer cells and listen to the normal cells and see whether we could pick up by the ears the differences. And fortunately, we haven't been able to do that, but it was fun anyway.
19:05
Now, as you heard, I'm a physicist, I've gone into biology and I have to get support for my work. If you don't get money, you cannot do research. And what I've tried to do is go to National Institute of Health applying for money
19:21
and I never even get into the final stages. They always throw me out very early for some reason. And you may have thought that having a Nobel Prize will get you through these hurdles, but for the National Institute of Health, forget it. It's not working. So, we decided,
19:40
and actually one person I should thank for this is Dr. Professor Feingendagen. I talked about this at Lindau before and he got very interested in this system and he actually duplicated it in Eulich. But he told me yesterday, he much rather would buy it from me than making him sell. So I have a customer out here possibly.
20:02
So my friend and I, we decided to incorporate and make a business. And the way you do that, of course, is to go to a lawyer. And to go to a lawyer, the cost of doing the business was $562.86 for the lawyer charge.
20:22
Those are very accurate lawyers in the United States. And the most difficult thing, which I didn't recognize, is to come up with a name. Because if you're gonna have a business, you're gonna have a name nobody else have used. And we were all horn-horned with that and we came up with then the name
20:40
Applied Biophysics Incorporated. It's a solid name, right? Applied Biophysics Incorporated. So we are very happy about that. I teach a course in the United States which I call the Creativity and Innovation. And one of the homework problems the student have
21:00
is to sign a logo for my business. So far, we have not accepted any permanently but maybe somebody will come up with something.
21:21
You may also ask, how can I have a business when I'm a professor? But I work for a technological university in United States and people there are very much interested in businesses. And I use students. For example, here is a student but written up in a newspaper at RPI about a student learning how to do photolithography
21:41
which we use to make the small electrodes. So I think that works out very well. Now when we have started this business and spent our own money, the question is then how do you get the money? You can use your own. You can try to get people to give you money or you can go to the Small Business Innovation
22:03
Research Grants which of course what we had in mind from the very beginning. And as I said, the National Institute of Health has been very unkind to my grant that when I applied for a small business grant to NIH, they said this was the best thing they'd ever seen.
22:21
So there must be different people doing these things but that's the way it went. So we were very fortunate to get the phase one from them and we also have a phase two grant from National Institute of Health. And I'm very happy about that. And one of these things when you apply for a grant, this is a big deal and a lot of work and stuff like that.
22:43
And applying for a grant from the SBIR, it's very similar to applying for a scientific grant. Everything is the same. So there's really no difference there. There's one big difference though. Because when we applied for the grant, then of course you always have a budget. And our budget came to $550,000 and 577, whatever.
23:06
And so they said everything was fine, they said, we got a call and said, the one thing you forgot. We said, what is that? He just said, you haven't taken your profit. Add on 8% profit because you're a business.
23:22
So the $36,000 is my profit. And I like to thank all the taxpayers in the United States who are here today for this contribution.
23:42
Now, one thing I had not figured with when we started the business is all the forms you get. There's just no end to it. This is the federal taxes. And then there's of course in the states, we have the state taxes. And we hear from them, I don't know what. So one thing we had to do was to hire an accountant. Because there's too much,
24:01
it's almost impossible to keep track of these things. Actually, one form we got from the federal government I thought was quite amusing. They want me to report annually on possible misconduct in science. Now, if I were misconducting in science, what would I tell them? So I crossed off no in both places.
24:22
No misconduct in the southern place. I don't know, I think it's still a little dumb. So what you have to do when you have a business, you have to try to advertise. And the best way we can advertise is to write papers. So we write as many papers as we can trying to show biologists,
24:41
but we have to convince that this really is a good technique. Whether it is or not, of course, it's too early to tell yet. But we try to convince them by publishing a lot of papers, and also participating in a lot of conferences, and trying to promote then our point of view. And we really believe in this very strongly.
25:00
And this is a conference which was science organized where we were fortunate to be part of. And one of the big surprises in my life is that after we participated in a conference in science, we got a request from nature trying to, so they said you can write a product review in nature.
25:23
And all my life, I have sent articles to nature, and they always return them unopened. So I thought getting requests from nature, this is my chance to get back. But then as I know, I really couldn't do that
25:40
because it was too important for the business, so we did go into nature with a product review, which has been very helpful. We have got a lot of requests from people want to know what they're up to. That was very helpful. But the product, the nature, however powerful it had, was nothing compared to having a article, it's business week.
26:03
And business week picked this up, and after this article appeared, we got a large number of interest. Believe it or not, I got a call from Chicago, and a man on the telephone wanted to invest $100,000 in my business. So I talked to him a little bit,
26:21
and he said he had inherited a lot of money, and he tried to do it, and they decided to invest in business. So I said, have you been successful so far? He said, absolutely not. And I can see that when you call someone on your telephone and say here is $100,000, would you please take it? So there was a big surprise.
26:40
Another big surprise we were very pleased with, and it cost us a lot of, not worry, but thinking about it, was that the famous banker, Blair in New York, who make it their business to support starting businesses, they came up and they actually wanted to buy us out.
27:00
This was very flattering in a way, and in other way, if we really wanted to get in business the fastest way possible, we probably should have done that. But if you do this, I mean there wasn't any contract written, but if you do this, you lose control of the business. And we really have a lot of fun. You know, what we're doing now is we decided to turn them down,
27:20
and they are still out there in the wings hoping to invest in my business. So anyway, what we have, to turn this to an end, what we have, we have what we call an electric cell substrate impedance sensing, and what we can do, we can measure a lot of things about cells in tissue culture. We can measure the metabolism, cell movement, micromotion,
27:44
we can measure the effect of electric fields, and Hein and Dagen wanna measure the effect of magnetic field, and we have a small disagreement there, and so on. And you can use it for in vitro toxicology, cell communication, and so on and so forth, and it has a lot of opportunities, I think.
28:02
And finally, since I now am a businessman, in the hope that there are some other customers out there, this is our Model 100, which is for sale for $37,500. It's not ready yet, hopefully sometimes in the fall,
28:21
and we can, if you're interested, we can always negotiate about the price. Thank you very much.