University Technology Transfer and Commercialisation of Research: Some Evidence from International Best Practice Brian Harney CISC Seminar Programme 21st October, 2004

Technology Transfer Rationale Rhetoric of the Knowledge Economy Theoretical Perspectives TT Structure and Activities Means for TT Conditions influencing University TT Key Issues for University Technology Transfer Rhetoric of the Knowledge Economy Impetus for Increased Emphasis on Research Commercialisation - Business Demands for Research excellence

Technology Transfer Role of Universities Universities Industry ► Rationale Theoretical Perspectives TT Structure and Activities Means for TT Conditions influencing University TT Key Issues for University Technology Transfer Universities Industry Government Triple Helix and ‘Strategic role’ of Universities in Knowledge based Economies

Technology Transfer Dispelling Myths ► Rationale Theoretical Perspectives TT Structure and Activities Means for TT Conditions influencing University TT Key Issues for University Technology Transfer Technology Transfer is not new phenomenon Technology Transfer is not a major source of revenue Technology Transfer activities compliment not cannibalize

Theoretical Perspectives Technology Transfer Rationale ► Theoretical Perspectives TT Structure and Activities Means for TT Conditions influencing University TT Key Issues for University Technology Transfer Defining Technology Transfer Rational Linear Model vs Relationship Perspective Diversity of models and channels for TT Technology Transfer Process

Theoretical Perspectives Technology Transfer Thursby and Kemp (2002) Rogers et al., (2000) Poltz et al., Siegel et al., Thursby et al., (2001) Carlsson and Fridh Friedman and Silberman (2003) Sample Size (Universities) 112 131 142 113 47 170 83 Years Analysed 1991-96 1996 1991-98 1994-96 1991-95 1997-99 Measurement of effectiveness Licenses executed; industry sponsored research; patent applications; invention disclosures; Royalties received Scale based on invention disclosures; patent applications; licenses; license income; start-ups Patent applications 1991-98 in Biotechnology; Total University Patents No of license agreements and license revenues Licenses executed; royalties received; number of patents; amount of sponsored research TT modeled as a sequence of events, focus on number of patents and licenses Invention disclosures, licenses, start-us; royalty income licenses with equity Primary Data Sources AUTM AUTM and NSF AUTM, UPSTO AUTM and Survey of TTO Key Results Faculty quality important, Private more efficient than public, medical school less efficient Significant and positive are faculty quality, no of Staff, Federal research funding Universities in States with higher levels of R&D are less inefficient, Older TTOs are better Significant and Positive are invention disclosures, no of staff, medical school, not significant is faculty quality Research expenditures, invention disclosures, years TTO operating is important Importance of rewards for faculty involvement, location, mission, and experience of TTO staff Rationale ► Theoretical Perspectives TT Structure and Activities Means for TT Conditions influencing University TT Key Issues for University Technology Transfer

Technology Transfer Structure Rationale Theoretical Perspectives ► TT Structure and Activities Means for TT Conditions influencing University TT Key Issues for University Technology Transfer Technology transfer structures at universities are complex and path dependent. Organisational factors and structure can affect technology transfer outcomes In terms of generic organisation structure the most effective for TT seems to be the Matrix Structure Most TTO offices do not operate as stand alone entities but rather leverage networks/associations

Technology Transfer Activities Main Activities Dealing with disclosure of inventions Record keeping and management Evaluation and marketing Patent prosecution Negotiation and drafting of license agreements Management of active licenses A strategic focus for university-business collaboration Training faculty in patenting and in the innovation process. The one of the key responsibilities of an ILOs is as the guardian of the university intellectual property. Rationale Theoretical Perspectives ► TT Structure and Activities Means for TT Conditions influencing University TT Key Issues for University Technology Transfer

Technology Transfer Activities Managing expectations Rationale Theoretical Perspectives ► TT Structure and Activities Means for TT Conditions influencing University TT Key Issues for University Technology Transfer Stakeholder Actions Primary Motive Secondary Motive Organisational Culture University Scientist Discovery of New Knowledge Recognition within the Scientific Community Financial gain and a Desire to secure additional research funding Scientific TTO Works with faculty and Firms/ entrepeneurs to structure deal Protect and Market the university’s IP Facilitate technological diffusion and secure additional research funding Bureaucratic Firm/ Entrepren eur Commercial NewTechnology Financial Gain Maintain control of Proprietary technologies Entrepreneurial

Technology Transfer Skill Set Ability to build networks Rationale Theoretical Perspectives ► TT Structure and Activities Means for TT Conditions influencing University TT Key Issues for University Technology Transfer Ability to build networks Capacity for brokerage A wider vision about the university and the economy Ability to marrying market niches and gaps Strategic skills in identifying university research strengths, Legal and intellectual property skills, Skills in company formation. Industry Experience Cold Calls and ‘getting the deal done’

Technology Transfer Means for TT Facilitating factors Clarity in the frameworks and procedures of exploitation and commercialisation policy; Transparency in decision-making concerning exploitation and commercialisation activity; Good information and contact provision to academic personnel regarding intellectual property and commercialisation procedures; Streamlined decision-making procedures; Rationale Theoretical Perspectives TT Structure and Activities ► Means for TT Conditions influencing University TT Key Issues for University Technology Transfer

Technology Transfer Means for TT The probability of patenting is greater when: A technology is clearly patentable A technology has favourable cost-benefit considerations (good commercial prospects or a potential buyer is already interested in the technology) A potential buyer offers to patent collaboratively, The OTT is approached and even persuaded by a faculty inventor. The key question regarding licensing is which areas of university research are most likely to lead to licensing potential and how universities best organise their licensing activities and they should assess the expected revenue. Rationale Theoretical Perspectives TT Structure and Activities ► Means for TT Conditions influencing University TT Key Issues for University Technology Transfer

Technology Transfer Means for TT TT via licensing or enterprise development Rationale Theoretical Perspectives TT Structure and Activities ► Means for TT Conditions influencing University TT Key Issues for University Technology Transfer

Technology Transfer Conditions Rationale Theoretical Perspectives TT Structure and Activities Means for TT ► Conditions influencing University TT Key Issues for University Technology Transfer Condition for technology transfer and research commercialisation identified Marco conditions Mirco- level factors Types of barriers to commercialisation of research Institutional Operational Barriers Cultural Barriers

Culture and Ethos for Commercialisation Key Issues Technology Transfer Culture and Ethos for Commercialisation Rationale Theoretical Perspectives TT Structure and Activities Means for TT Conditions influencing University TT ► Key Issues for University Technology Transfer Mechanisms for Technology Transfer Organisation Structure Staff/Resources Activities Strategic Tech Transfer Evaluation Mechanisms Policies and Procedures Researcher Commitment, Motivation, Awareness

Technology Transfer Key Issues Rationale Theoretical Perspectives TT Structure and Activities Means for TT Conditions influencing University TT ► Key Issues for University Technology Transfer

Culture and Ethos for Commercialisation Key Issues Technology Transfer Culture and Ethos for Commercialisation Rationale Theoretical Perspectives TT Structure and Activities Means for TT Conditions influencing University TT ► Key Issues for University Technology Transfer Mechanisms for Technology Transfer Organisation Structure Staff/Resources Activities Strategic Tech Transfer Evaluation Mechanisms Policies and Procedures Researcher Commitment, Motivation, Awareness

Technology Transfer Key Issues Developing Technology Transfer Metrics Need for 'local' metrics Organic nature of university-industry interactions Differences across disciplines Resistance/lack of enthusiasm for evaluative metrics Interdependence between university activities Indirect impacts Serendipity Over emphasis on efficiency versus effectiveness The true impact of industrial liaison offices on technology transfer process is difficult to measure quantitatively (Fassin, 2000:40) Indicators should facilitate better management by university administrators Rationale Theoretical Perspectives TT Structure and Activities Means for TT Conditions influencing University TT ► Key Issues for University Technology Transfer

Culture and Ethos for Commercialisation Key Issues Technology Transfer Culture and Ethos for Commercialisation Rationale Theoretical Perspectives TT Structure and Activities Means for TT Conditions influencing University TT ► Key Issues for University Technology Transfer Mechanisms for Technology Transfer Organisation Structure Staff/Resources Activities Strategic Tech Transfer Evaluation Mechanisms Policies and Procedures Researcher Commitment, Motivation, Awareness

Technology Transfer Concluding Points Rationale Theoretical Perspectives TT Structure and Activities Means for TT Conditions influencing University TT ► Key Issues for University Technology Transfer Culture and ethos of commercialisation Commitment, Motivation, Awareness Varieties of Excellence