1 WIPO/INV/BEI/02/3.a The Role of Universities in the Innovation Cycle Document prepared by Ms. Kirsten Leute, Licensing Associate Office of Technology Licensing, Stanford University, Palo Alto, California (USA)

2 Agenda F University-Industry Relations at Stanford F OTL Background/Invention Process F The Innovation Cycle, Silicon Valley, and how we play a part

3 Industry - University Interaction F Development Office F Office of Sponsored Research F Industrial Contracts Office F Office of Technology Licensing

4 OTL Mission To promote the transfer of Stanford technology for society's use and benefit while generating unrestricted income to support research and education

5 The Invention Process F Evaluation F Patenting Decision F Marketing Strategy F Licensing Strategy F The License F Continuing the Relationship

6 OTL Numbers F Founded in Revenue of $50K F Revenues in FY 00-01: $41.2M F Licenses executed in 00-01: 160+ F Disclosures received in 2001: 277 F Total Disclosures: 4,000+

7 OTL Numbers (cont.d) F Staff: 25+; 16 do licensing F Budget: $2.9M F Patent costs: over $3M F Royalty sharing: –15% to OTL, then expenses, out-of-pocket –Net is split into thirds (inventors, departments, schools)

8 OTL Cycle Inventions Created Inventions Transferred to Industry Resources Obtained for Further Research

9 Innovation Cycle Identify an opportunity Research and Development Protect IP Final Product Design Manufacturing Promotion Distribution, Sales, Services Resources

10 Two Worlds F University –Open Environment –Publication is key –Non-profit, but need $$ F Industry –Protected Environment –Proprietary - Competitive Edge –For profit, need $ for survival, shareholders

11 University Inventors Role in Technology Transfer F Disclose Inventions F Identify Potential Licensing Prospects F Participate in Patent Preparation and Prosecution F Host Visits by Potential Licensees F Provide input into the Licensing Strategy F Consultant (optional) to Licensee(s) F May be a Founder of a Start-up

12 What OTL Can Do For Industry F Track specific areas of interest (4D database) F Send relevant technologies F Identify faculty with similar areas of interest F Communicate/Follow-up F Be innovative within policy boundaries F Transfer Technology

13 Start-Up Tradition F Hewlett-Packard F Me-too mentality F Resources F No incubator at Stanford F Equity Frederick Emmons Terman

14 Examples of Success F Silicon Valley F Yahoo!, Google F Jim Clark

15 Take Home the Competitive Advantage Message F Create good relationships F Use your local resources (especially people) F You need good people F Must have win-win F Create an open, flexible environment (i.e. be innovative)

16 Web Info SU/Corporation interactions: - SU guide to companies - faculty research directories F