1. From Ideas to Assets IEOR 190G – Spring 2010 Project 2, part 3 – Reviewing other chapters Justin Woo

2.  Key subjects from this chapter: ◦ 1) University innovation and initiatives to commercialize upon academic research ◦ 2) Columbia University’s Columbia Innovation Enterprise (CIE)  Most successful research collaboration within a university setting that became a venture  Key player behind implementation of the program was Jack Granowitz

3.  Previously…. ACADEMIC PATENT RESEARCH ≠ COMMERCIALIZATION  As a result, researchers… ◦ Research for academic endeavors ◦ Avoid business ventures ◦ Do not look for profit from research

4.  HISTORICALLY: ◦ Researchers collaborated with corporations for commercialization of a patent ◦ However, researchers were not protected and thus corporations took all the profits  PRESENT CHANGES TAKING PLACE: ◦ Through the Columbia CIE, researchers can cooperate with corporations in patenting a product through a third medium – the CIE. ◦ This enables both parties to be protected, and thus is a win-win. Royalties are still kept by researchers within the university.

5.  Outside of Columbia and a select few universities, most universities do not have such an organization such as the CIE to mediate between researchers and corporations  Ex: In 2000 alone, universities overall generated $1.0 Billion from patent revenues ◦ IBM alone as a company generated $1.6 Billion from IP revenues ◦ 15% of this total was for Columbia University  Disproportionately large amount due to CIE  Improvements can be seen elsewhere with similar implementation as CIE in other universities

7.  Interview with founder Jack Granowitz  Suggestions / requirements ◦ Research institution ◦ Commercial partners with eagerness to invest in research IP assets ◦ Open and willingness to cooperate between universities and corporations  Even these basic requirements are non- existent at most current universities ◦ Until these are first satisfied, no next step can be taken towards progress

8.  Incentives for corporations to cooperate: ◦ University research can offer free help and advancement within areas other than specific intended product  Comparisons: ◦ All UCs: $1.8 Billion for research  $71 million in revenue ◦ Columbia: $279 million for research  $89.2 million in revenue  Large disparity between UCs and Columbia ◦ Due to CIE’s ability to move deals forward and generate revenues from research ◦ Shows valuable benefits from organization such as CIE

9.  For CIE, intervention and involvement are flexible ◦ This allows for greater percentage of research to qualify and be pushed to market for profitability Size of DealShare to Inventor Share to Lab <$100,00040%20% > $100,00020%

10.  Through CIE and organizations like it, Universities have tremendous revenue- generating potential through academic research.  Previously, risks of commercial abandonment and lack of protection prevented universities from involvement within commercial corporations for profits; however, third-party organizations such as CIE have proven to be a win-win situation for both parties, generating Columbia 15% of all University research-generated profits in 2000 alone.