February 2009 Integrated Technology Commercialization © Steven P. Nichols 1 Integrated Technology Commercialization Steven P. Nichols Endowed Fellow, IC2 Director, Chair of Free Enterprise Professor of Mechanical Engineering Professor, IC2 Institute The University of Texas at Austin © Steven P. Nichols, 2009

February 2009© Steven P. Nichols 2 Operating Premise  Adopt  Adapt  Create

February 2009© Steven P. Nichols 3 Chair of Free Enterprise  … to create and nurture a culture of technology innovation, creativity, and leadership at The University of Texas and the global community that we serve.

© Steven P. Nichols 4 Missions of University  Universities create and disseminate knowledge Education Education Research Research Service Service

February 2009 Integrated Technology Commercialization © Steven P. Nichols 5 Integrated Technology Commercialization  “Were Texas”  “What Starts Here Changes the World” © Steven P. Nichols, 2009

© Steven P. Nichols 6 Entrepreneurial Infrastructure

© Steven P. Nichols 7 ANALYSISCREATIVITY CREATIVE VERSUS ANALYTICAL ASPECT OF ACADEMIC ENTERPRISE

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9 Professional Responsibility 101 © Steven P. Nichols 2009

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© Steven P. Nichols 14 UT SYSTEM 15 component institutions 9 general academic universities 4 medical schools 9 nursing schools Student Population 185,000 students Approx. 37,000 degrees awarded annually UT System employees: 61,800 personnel 61,800 personnel The University of Texas at Austin

© Steven P. Nichols 15 $12 billion operating budget), 18% from state general revenue $1.6 billion in indigent health care provided by UT System's health institutions $1.9 billion in research spending (FY 2005) -Consider the Flagship Institution--- The University of Texas at Austin

© Steven P. Nichols 16 UT Austin  annual enrollment of about 50,000 students  25% of students enrolled in graduate and professional programs  awards the greatest number of doctorate degrees of any university in the nation  one of the widest selections of study areas among major universities in the U.S.  students from all 50 states and about 120 foreign countries The University of Texas at Austin

© Steven P. Nichols 17 Active NAE Faculty Members

© Steven P. Nichols 18 Who Cares?

© Steven P. Nichols 19 Mix Is As Varied as Universities  “What starts here changes the world.” The University of Texas at Austin The University of Texas at Austin

© Steven P. Nichols 20 Proposition  Universities have obligations to support positive social change  One of the most important mechanisms for universities to add social value is by adding economic value  Technology has no inherent social value (except intellectual and academic)  Universities do not commercialize technologies

© Steven P. Nichols 21 Office of Technology Commercialization  Current Licensing Revenue FY 07-08US $ 11.7 Million FY 07-08US $ 11.7 Million Office formed in 1997 Office formed in 1997 (first license circa 1985)(first license circa 1985) FY Revenues approx. US$ 1.6 millionFY Revenues approx. US$ 1.6 million  Growing at approximately 25% per year  Sponsored researchUS $450 Million (aprox.)

© Steven P. Nichols 22 Business Units Architecture (Mature Business => Steady State)  Customer Sales Manufacturing Science/Engineering Marketing Distribution Sales Customer Needs Product & Money Design Input Manufacturing Specifications Final Product

© Steven P. Nichols Incubate to define Commercializ- ability 7. Promote adoption 9. Sustain commercialization 2. Mobilize Interest and endorse- ment 5. Demonstrate contextually in products and processes 4. Mobilize resource for Demo 6. Mobilize market consti- tuents 8. Mobilize complimentary assets for delivery 1. Imagine the dual (techno-market) insight Source: Jolly, Vijay From Mind to Market. Bridges: Mobilizing the Stakeholder The Process of Technology Commercialization Subprocesses: Building the Value of New Technology

© Steven P. Nichols 24 Knowledge Transfer Process Knowledge Generation Transfer Functions Social & Economic Value Added

© Steven P. Nichols 25 University (Knowledge Generation: Intellectual Value Added) Research Research Results Graduates Faculty Driven Funding Sources Government (various levels) Universities Industrial Commercial Foundations and Not-for-Profits Individuals Gifts Etc.

© Steven P. Nichols 26 University (Knowledge Generation) Funding Sources Graduates Faculty Consulting Faculty / Staff Departures Publications Non-traditional Transfer Functions Social Value Added Economic Value Added Natural Non-traditional Mechanisms:

© Steven P. Nichols 27 THE TECHNOLOGY COMMERCIALIZATION PROCESS Later Phases of Commercialization Knowledge Creation Techno- market Opportunity Creation Specific Product/ Process Plan Commercial Demonstration/ Initial Operations University (Fundamental) Research Business Plan Competitions The Idea to Product® Program (Value Creation Concept) INNOVATION From Evans and Nichols in light of Jolly

Do you want to stop here? March 2008 Design Education © Steven P. Nichols 28

© Steven P. Nichols 29 Knowledge Generation Natural Transfer Functions Non-traditional Transfer Functions Social & Economic Value Added

© Steven P. Nichols 30 UT Partners in the Texas Alliance for Technology Commercialization DEPARTMENT OF BIOMEDICAL ENGINEERING Office of the V. P. for Research Center for Nano- and Molecular Science & Technology Herb Kelleher Center for Entrepreneurship Office of Technology Licensing Clint W. Murchison Chair of Free Enterprise The College of Natural Sciences Office of Sponsored Projects The University of Texas at Austin

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© Steven P. Nichols 32 Examples of Economic Value Added from University of Texas (Based on fundamental research)  Tracor  National Instruments  Nanotechnologies Inc.  Dell Computer

© Steven P. Nichols 33 Lessons from the Past: Context of Technology Transfer Radian (Unitech) 974 TexasNuclear Austron164 Continuum (Texas Corporate Corp, TCC, Inc) 700 TexasTelesystems120 Espy Huston 562 Pinson Associates 25 Meister Engineering Tracoustics 44 Key Concepts Gp. 5 Weed Instruments 98 SGE Inc. 9 Guerreros Photographic Gp. 4 Texas Research Inst. 100 Targa, Inc. 2 AMI 57 Spenco System 200 UTAustin TRACOR Columbia Scientific (CSI) Cematco Nova Graphics 15 Sun X BPI 136 Zycor 48 Odessa Engineering

© Steven P. Nichols 34 Entrepreneurial Infrastructure

© Steven P. Nichols 35 Examples of Economic Value Added from University of Texas (Based on fundamental research)  Tracor  National Instruments  Nanotechnologies Inc.  Dell Computer

© Steven P. Nichols 36 Integrated Technology Commercialization Steven P. Nichols Endowed Fellow, IC2 Associate Vice President for Research The University of Texas at Austin © Steven P. Nichols, 2006 University of Oulu, Computer Engineering Laboratory University of Kuopio

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