UNIVERSITY TECHNOLOGY TRANSFER:
FAQs FOR ECONOMIC DEVELOPERS
What is university
technology transfer?
Technology transfer is the process of moving university research results from the laboratory to the marketplace. Universities patent inventions, license inventions to corporations, and in some cases, work with faculty/student inventors to launch startups.
Do all universities and colleges conduct technology transfer?
No, but most universities and colleges that perform research conduct technology transfer activities. There are at least 200 U.S. universities and colleges that conduct some level of technology transfer.[1] The depth and breath of these activities vary widely.
Why should economic developers be interested in university technology transfer?
Inventions based on university research can expand a community’s economic
base. Inventions that are licensed to
local firms can diversify and expand those firms; inventions that result in the
formation of startups can grow and expand local technology clusters.
Does university technology
transfer have a significant economic impact on communities?
The Association of University Technology Managers (AUTM) Licensing Survey™ reported that since 1980, universities have launched more than 4,500 new companies. In FY 2004 alone, universities launched 462 new companies and executed almost 4,800 new licenses. A recent study on Boston showed that technologies spinning out of the region’s universities were responsible in FY 2000 for a $7.4 billion boost to that region’s economy.[2]
What
about the average university?
Universities vary considerably in their commercialization outcomes. The very best universities in technology transfer, such as Stanford and MIT, consistently launch about 15-20 startups and execute more than 100 licenses each year. Other universities such as the University of Pittsburgh launches annually more than 10 startups, and Iowa State University launches about 4-5 startups. Universities with research expenditures under $20 million will find it more difficult to realize commercial potential from their research; but it is not impossible, especially if the university identifies and focuses on a niche research area or “core competency.”
Why should universities be interested in transferring and commercializing their technologies?
Universities can retain the intellectual property from a university based invention developed with federal funds, and can receive income from licensing the invention.[3] Income from the invention is shared with the inventor. By providing technology transfer opportunities, universities may attract higher quality and more entrepreneurial faculty who can profit directly from their inventions. The University of Pennsylvania’s Center for Technology Transfer provides a good example of a university’s technology transfer goals; they are to: (a) commercialize research discoveries for the public good, (b) promote economic growth by launching new ventures based on (university) technology, (c) reward, retain and recruit faculty and students, (d) forge closer ties with industry, and (e) generate income for future research and education.
Who is responsible for technology transfer activities at universities?
University technology transfer offices (TTOs)[4]
manage intellectual property including patents, licenses, trademarks and
copyrights derived from university
research. Large research institutes and
hospitals may have separate TTOs. Small
universities and colleges may not have a dedicated TTO and these functions may
be handled as part of the Office of Vice President for Research or other
offices.
How do
entrepreneurial development activities at universities relate to technology
transfer?
Entrepreneurship activities mainly
operate from university business schools, incubators, and research parks. University sponsored business plan
competitions, enterprise forums, networking events and other activities provide
opportunities for university entrepreneurs to develop, showcase, finance and commercialize
their inventions. University incubators
and research parks provide the infrastructure and often the services to capture
spin-offs and retain them in the university community. “Accelerators” and commercialization centers
additionally provide focused assistance to advance the technology to a market,
or near market stage. These activities
together provide a critical environment to nurture and grow startups based on
university inventions. However, most
university TTOs do not coordinate their activities well with the university’s
entrepreneurship programs, and this is one of the gaps in the system.
How can I, as an economic developer, assist
my local university or college with its technology transfer activities?
We have prepared “Recommendations for Economic
Developers” (presented in a separate attachment) that outlines specific
actions. In general, economic
developers need to become familiar with technology transfer and
entrepreneurship programs at local universities and colleges. They should introduce themselves to
directors of these programs, make them aware of regional resources, and
facilitate linkages to the resources.
These resources may include at least: (a) legal/patent assistance, (b)
business planning and management capacity building, (c) seed/venture capital
and angel networks, (d) incubators, innovation centers, etc., (e) networking
events, and (f) SBIR assistance. For
more on this topic, see “Recommendations for Economic Developers.”
Why should I assist my local university or
college?
Many university TTOs are strong in vetting
university inventions but weak in providing university-based entrepreneurs with
the help and time they need to start a new business. Community economic developers can provide valuable
assistance and linkages that may make the difference between a university
invention being licensed to a corporation located outside of the community or a
startup being formed that stays and grows in the community.