1. Slide 1 Industry/University Cooperative Research Centers IUCRC Marketing & Recruiting Survey May-June, 2005 Gray & Rivers, NCSU **Preliminary Data** **Do Not Share Results**

2. Slide 2 Industry/University Cooperative Research CentersMotivation Recruitment of new members is one of the most, if not the most, important challenge a CD confrontsRecruitment of new members is one of the most, if not the most, important challenge a CD confronts A variety of factors probably affect the success of member recruitment effortsA variety of factors probably affect the success of member recruitment efforts –Marketing strategy used by the center –Center Characteristics –Industry Characteristics –Firm Characteristics (e.g., size, strategy, decision making) –Individual Characteristics: Attitudes, beliefs etc. of the firm representative Marketing is the only factor the center has direct control overMarketing is the only factor the center has direct control over

3. Slide 3 Industry/University Cooperative Research CentersPurpose Identify which advertising, marketing and recruiting strategies directors currently use, and which they think are most effective.Identify which advertising, marketing and recruiting strategies directors currently use, and which they think are most effective. A follow-up phase of research will involve industry firms that either joined, remain undecided, or did not join an IUCRC.A follow-up phase of research will involve industry firms that either joined, remain undecided, or did not join an IUCRC.

4. Slide 4 Industry/University Cooperative Research CentersOverview Web-based surveyWeb-based survey 15+ minutes15+ minutes Pilot tested with directors and evaluatorsPilot tested with directors and evaluators Fielded in May 2005Fielded in May 2005

5. Slide 5 Industry/University Cooperative Research CentersSample 29 responses29 responses –Response rate: 27% –14 reported to be from multi-university sites (12 of whom reported to be to be center directors) –*Plan to get more records (~n=50) Sample characteristicsSample characteristics Sample (n=23) Population (n=43) Avg. members- 2004 13.7415.49 Avg. new members- 2004 3.874.44 Avg. faculty scientists- 2004 14.9613.81 Avg. publications 1999-2004 14.9116.35 Avg. presentations 1999-2004 20.1022.14 Avg. end funding year 2008.42007.6

6. Slide 6 Industry/University Cooperative Research Centers Relationship Development Model States model (versus growth model)States model (versus growth model) InitiationEstablishmentDevelopmentMaintenance Dormant Termination Rao, S. & Perry, C. (2002). Thinking about relationship marketing: Where are we now? The Journal of Business and Industrial Marketing, 17 (7), pp 598 –614.

7. Slide 7 Industry/University Cooperative Research Centers Survey design Marketing tools Identifying prospects Outcomes (DVs) Acceptance & Rejection factors Recruiting approaches & responsibilities Center & Director characteristics

8. Slide 8 Industry/University Cooperative Research Centers Director Experience 24) How would you describe your professional experience prior to becoming a center/site director? (n=29) –58%: Most of prior career in academia –21%: A balance of academia and industry or entrepreneurship –21%: Most of prior career in industry or entrepreneurship Mean Std Dev Range 22) For how many years have you served as a center/site director, whether in your current role or as the director of a similar center/site? 6.624.55 1 – 18 23) On average, how many hours per month do you dedicate to recruitment activities? 19.5217.82 4 – 80

9. Slide 9 Industry/University Cooperative Research Centers Marketing Plans 19) Does your center/site have a formal, written marketing plan? (n=29) –7% Yes 20) Does your center/site set formal goals for the recruitment of new industry members? (n=29) –35% Yes 21) Aside from staff time, about how much does your site have budgeted for recruiting in the current year? (n=24) –Mean: $8,521 –Median: $5,000 –Std dev: $11,117 –Range: $0 - $50,000

10. Slide 10 Industry/University Cooperative Research Centers Identifying potential members 1) Consider how your center/site identifies potential industry members. How effective have you found the following activities in generating leads for new members? ITEM TEXT % use Mean g) Networking through your own personal contacts 100%3.79 h) Networking through other site stakeholders (e.g., IAB members, faculty) 100%3.17 d) Presenting at scientific meetings or conferences 97%2.79 j) Building traffic on your center/site’s website 93%1.96 b) Sponsoring industry-related events (e.g., seminars) 83%2.50 i) Sending out direct mailings with center/site information 69%2.15 e) Publishing articles in trade journals or trade websites 66%2.16 f) Doing PR like news releases and general media coverage 48%2.21 c) Presenting at tradeshows 34%2.70 a) Advertising in trade journals or trade websites 3%3.00 Scale 4= highly eff. 3= Moderately eff. 2= Somewhat eff. 1= Not at all eff. 0= Do not use

11. Slide 11 Industry/University Cooperative Research Centers Identifying potential members (2) 1) Consider how your center/site identifies potential industry members. How effective have you found the following activities in generating leads for new members? Effectiveness Percent reporting use

12. Slide 12 Industry/University Cooperative Research Centers Marketing activity outcomes Non-significant bivariate correlation between the number of different marketing activities (count of Q1a-Q1j) and the number of new leads generated (Q2).Non-significant bivariate correlation between the number of different marketing activities (count of Q1a-Q1j) and the number of new leads generated (Q2). On average, 70% of new leads emerge from existing relationships (Q3 / Q2).On average, 70% of new leads emerge from existing relationships (Q3 / Q2). Mean Std Dev Range 2) Over the past 12 months, about how many new leads for membership has your center/site been able to generate? 12.9710.16 2 – 40 3) Over the past 12 months, about how many of those new leads emerged from existing relationships, whether through your own personal network or the network of another center/site stakeholder? 8.397.78 1 – 35

13. Slide 13 Industry/University Cooperative Research Centers Marketing Tools 4) How effective are the following marketing materials, documents or similar information pieces at communicating the strengths of your center/site? ITEM TEXT % use Mean d) Document with the mission/ vision of the center 100%2.59 e) List of members/ industry partners 100%2.93 k) A website for the center 100%2.79 a) Center brochure 93%2.52 c) Document with an overview of member benefits 93%2.59 b) Abstracts of current research projects 90%2.73 f) List of primary investigators 90%2.42 g) References to Center technical reports or publications 83%2.42 h) Full text technical reports or publications 79%2.35 j) Description and/or images of center facilities including equipment 62%2.39 i) Center newsletters 45%2.15 Scale 4= highly eff. 3= Moderately eff. 2= Somewhat eff. 1= Not at all eff. 0= Do not use

14. Slide 14 Industry/University Cooperative Research Centers Recruiting approaches 6) For those organizations interested in learning more about your center/site, how effective have you found the following approaches at securing new members? ITEM TEXT % use Mean a) Visiting the organization 97%3.54 c) Hosting organization representatives at your site during non-IAB meeting times 93%3.44 f) Holding conference calls with organization representatives 79%2.30 b) Visiting the organization with some of your scientists 76%3.32 d) Hosting organization representatives at your site during an IAB meeting 76%3.00 e) Meeting with organization representatives at a neutral location (e.g., breakfast, lunch venue) 76%2.55 Scale 4= highly eff. 3= Moderately eff. 2= Somewhat eff. 1= Not at all eff. 0= Do not use

15. Slide 15 Industry/University Cooperative Research Centers Recruiting responsibilities 7) To what degree are the following individuals or groups actively involved in the recruitment of industry members? ITEM TEXT % involved Mean a) Yourself 97%3.96 b) Faculty PI's 90%2.27 c) IAB members 90%2.23 e) University administration 55%1.25 d) Graduate students 52%1.73 f) Directors from other sites 52%2.87 g) Consultant or staff member dedicated to recruitment 34%2.80 Scale 4= To a great extent 3= To a moderate extent 2= To some extent 1= To a little extent 0= Not at all/ Does not apply

16. Slide 16 Industry/University Cooperative Research Centers Recruiting responsibilities (2) 7) To what degree are the following individuals or groups actively involved in the recruitment of industry members? Degree of involvement Percent reporting involvement

17. Slide 17 Industry/University Cooperative Research Centers Multi-site center recruiting [If your site is part of a multi-site center, please answer item 9] 9) Which of the following best describes how your multi- site center handles recruiting? (n=19) –37%: Each site handles recruiting independently of other sites –21%: Each site establishes their own leads, but other sites help 'sell' the center –42%: Sites work closely together throughout the recruitment process

18. Slide 18 Industry/University Cooperative Research Centers Recruiting Success Rates Mean Std Dev Range 10a) Over the past 12 months, about how many organizations have you been actively pursuing for membership in your center/site? 10.218.12 3 – 30 10b) Of those organizations you've been actively pursuing over the past 12 months, about how many have committed to membership in your center/site? 2.593.60 0 – 18 10c) Of those organizations you've been actively pursuing over the past 12 months, about how many remain undecided about membership? 5.214.09 1 – 18 10d) Of those organizations you've been actively pursuing over the past 12 months, about how many have explicitly turned down membership? 2.143.57 0 – 16 On average, directors reported a 26% success rate in recruiting new members (Q10b / Q10a), and a 16% rejection rate (Q10d / Q10a).On average, directors reported a 26% success rate in recruiting new members (Q10b / Q10a), and a 16% rejection rate (Q10d / Q10a).

19. Slide 19 Industry/University Cooperative Research Centers Acceptance factors 11) Consider those organizations that have decided to join the center/site recently. In your opinion how important were the following factors to their making an affirmative decision? ITEM TEXT MeanSD % Top3 a) Relevance of research to organization needs 3.790.4186% b) High probability of future knowledge and technology transfer benefits 3.460.7459% g) Success of past Center/PI research accomplishments 2.930.8041% c) Quantity and/or quality of graduate students to recruit 2.690.8924% e) High financial leveraging provided by your center/site 2.660.9021% f) Complimentary interests with IAB members 2.790.8221% d) Quality of facilities and equipment 2.620.9414% k) Access to PIs for informal consulting 2.820.7714% i) Center/site's association with NSF 2.620.7810% m) Existing ties or relationship with the university 2.301.067% j) Opportunity to participate in setting industry standards 2.000.923% h) Proximity of the organization to the center/site 1.761.020% l) Opportunity to showcase new equipment at the center/site 1.850.990% Scale 4= Very important 3= Important 2= Somewhat imp. 1= Not important. 0= Not sure Total respondents N= 29

20. Slide 20 Industry/University Cooperative Research Centers Rejection factors 14) Consider those organizations that explicitly turned down membership or remain undecided. In your opinion, how important do you think the following factors were in their failure to join? ITEM TEXT MeanSD % Top3 d) Cost of membership fee 2.661.1459% a) Lack of relevance of research to organization needs 2.541.2241% i) Concerns about IP and licensing rights 2.561.0541% k) Organization rep did not have access to real decision makers 2.840.9438% j) Organization research priorities are very short term 2.521.1628% m) Center/site not on organization's preferred university list 2.041.0221% l) Conflicting opinions within the organization about joining 2.500.9317% n) Organization able to obtain research [elsewhere] cheaper/easier 1.961.0017% e) Limited financial leveraging provided by our center 1.480.6410% f) Conflicting interests with IAB members 1.841.1110% h) Distance of the organization from center/site 1.570.797% b) Limited quantity and/or quality of graduate students to recruit 1.350.883% c) Limitations of our facilities and equipment 1.190.400% g) Lack of a research track record 1.150.490% Scale 4= Very important 3= Important 2= Somewhat imp. 1= Not important 0 = Does not apply Total respondents N= 29

21. Slide 21 Industry/University Cooperative Research Centers Changes to membership structure 17) Has your center made any changes to membership format or structure (like adding tiered membership) or offering special services (like testing) that have helped build your membership? (n=27) 33% Yes33% Yes Select comments (verbatim):Select comments (verbatim): –Membership payments "in kind" (e.g., equipment suppliers) are being discussed –Expanded to 3 levels of membership. –We have guaranteed new sponsors that they will get a research project. Veteran sponsors have no such guarantee. –Provide samples for testing to members. Do instrumental analysis on samples from company. –Allowing IAB Chair to "broker" multiple, outside small company investments into full Member fee for common action within Center prospectus

22. Slide 22 Industry/University Cooperative Research Centers Recruiting Government Agencies 18) Has your center/site tried to recruit government agencies or research groups in the past? (n=29) –90% Yes [If 18 = Yes] 18a) Is your center/site's recruitment process for government agencies different from your efforts to recruit member firms? (n=26) 35% Yes35% Yes Select comments (verbatim):Select comments (verbatim): –We are more flexible in handling membership fee. –I would let them participate at a lower membership cost. –Some federal agencies prefer grants. –Mostly through direct research contacts

23. Slide 23 Industry/University Cooperative Research Centers Some Key Points 58% of directors spent most of prior careers in academia.58% of directors spent most of prior careers in academia. Few (7%) directors have a formal marketing plan, and only 35% have formal recruiting goals.Few (7%) directors have a formal marketing plan, and only 35% have formal recruiting goals. Networking is the dominant and reportedly most effective form of recruiting; Tradeshow presentations may be a promising yet untapped source of new leads.Networking is the dominant and reportedly most effective form of recruiting; Tradeshow presentations may be a promising yet untapped source of new leads. About 70% of new leads emerge from existing relationships.About 70% of new leads emerge from existing relationships. The most effective marketing tools are IAB lists, websites, and abstracts of current projectsThe most effective marketing tools are IAB lists, websites, and abstracts of current projects Visiting the organization and hosting visits during non-IAB meetings are utilized most frequently and rated as most effective at securing new members.Visiting the organization and hosting visits during non-IAB meetings are utilized most frequently and rated as most effective at securing new members.

24. Slide 24 Industry/University Cooperative Research Centers Some Key Points cont’d Directors rate themselves as most involved in recruiting; Faculty PI’s and IAB members are utilized frequently in recruiting, though their level of involvement is limited.Directors rate themselves as most involved in recruiting; Faculty PI’s and IAB members are utilized frequently in recruiting, though their level of involvement is limited. Other site directors and consultants are utilized in recruiting less frequently, though they tend to be more involved in the process compared to faculty PIs and IAB members.Other site directors and consultants are utilized in recruiting less frequently, though they tend to be more involved in the process compared to faculty PIs and IAB members. Multi-site centers reported varied approaches to teaming up during the recruitment process.Multi-site centers reported varied approaches to teaming up during the recruitment process. On average, directors experience a 26% success rate in new member recruitment, and a 16% rejection rate.On average, directors experience a 26% success rate in new member recruitment, and a 16% rejection rate. According to directors, firms join for relevant research, tech transfer, and past research accomplishments at the center.According to directors, firms join for relevant research, tech transfer, and past research accomplishments at the center. According to directors, firms do not join due to cost of membership fees, lack of relevance in research, and IP and licensing issues.According to directors, firms do not join due to cost of membership fees, lack of relevance in research, and IP and licensing issues. One in three directors have changed their membership structureOne in three directors have changed their membership structure 90% of directors have pursued government agencies for membership90% of directors have pursued government agencies for membership

25. Slide 25 Industry/University Cooperative Research Centers Next Steps Increase response count (to ~ 50)Increase response count (to ~ 50) Merge with existing center data (e.g., center size, age, productivity)Merge with existing center data (e.g., center size, age, productivity) Run multivariate stats (e.g., ID predictors of recruitment success)Run multivariate stats (e.g., ID predictors of recruitment success) Conduct follow-up interviews with directorsConduct follow-up interviews with directors Initiate industry studyInitiate industry study –Exploratory interviews –Quantitative survey (joined, undecided, did not join)

26. Slide 26 Industry/University Cooperative Research Centers Appendix Verbatim comments

27. Slide 27 Industry/University Cooperative Research Centers Item 1- Other ways to identify prospects Focused WorkshopFocused Workshop Holding Open Houses for prospective sponsorsHolding Open Houses for prospective sponsors Hosting sessions for prospects along with faculty to discuss prospect's problems they need help on.Hosting sessions for prospects along with faculty to discuss prospect's problems they need help on. Identification of competitors to present IAB membersIdentification of competitors to present IAB members Networking at technical meetingsNetworking at technical meetings Networking through contacts of Center sponsors and faculty far and away produces the best resultsNetworking through contacts of Center sponsors and faculty far and away produces the best results Organizing center-sponsored conferencesOrganizing center-sponsored conferences Organizing Workshops and TutorialsOrganizing Workshops and Tutorials Participating in related technical society activities; Writing proposals with industry partnersParticipating in related technical society activities; Writing proposals with industry partners Respond to industry need for consulting and then turning this into opportunity to gain a new sponsorRespond to industry need for consulting and then turning this into opportunity to gain a new sponsor Responding to any and all invitation to give a talk at a professional meeting of colleagues.Responding to any and all invitation to give a talk at a professional meeting of colleagues.

28. Slide 28 Industry/University Cooperative Research Centers Item 4: Other marketing tools Talking about center membership during recruiting visits to the school form companiesTalking about center membership during recruiting visits to the school form companies Visits to companies in addition to our own workshop and tutorialsVisits to companies in addition to our own workshop and tutorials Informational CDInformational CD Center presentation delivered on-site to potential sponsorsCenter presentation delivered on-site to potential sponsors Virtual Tour in Video FormatVirtual Tour in Video Format Getting publications in trade magazinesGetting publications in trade magazines Reprints of publicationsReprints of publications attendance at Standards committee meetings (ASME)attendance at Standards committee meetings (ASME) Branding via multi-year, multi-site use of unique logoBranding via multi-year, multi-site use of unique logo

29. Slide 29 Industry/University Cooperative Research Centers Item 6: Other recruiting approaches Use existing members to recruit new onesUse existing members to recruit new ones Attending International professional meeting!Attending International professional meeting! Invitations to participate in tele-seminars.Invitations to participate in tele-seminars. Doing "free" demonstration research projects, to establish credentials and goodwill.Doing "free" demonstration research projects, to establish credentials and goodwill.

30. Slide 30 Industry/University Cooperative Research Centers Item 8: Others involved in recruiting CATT (New York State Center of Excellence at Poly)CATT (New York State Center of Excellence at Poly) Primarily Center DirectorsPrimarily Center Directors Local "public interest" group participants, like Asthma CoalitionLocal "public interest" group participants, like Asthma Coalition Director of Centers and Institutes at EMUDirector of Centers and Institutes at EMU

31. Slide 31 Industry/University Cooperative Research Centers Item 13: Other acceptance factors Because others joined.Because others joined. Health of candidate companies. How tight is their budget?Health of candidate companies. How tight is their budget? Membership of other government agencyMembership of other government agency Track record of working with industryTrack record of working with industry Have a large number of international competitor companies in the centerHave a large number of international competitor companies in the center Economic climateEconomic climate Networking-new business contactsNetworking-new business contacts Recruiting international level companies, competitors also structure to the membership, companies interested in materials, devices and systemsRecruiting international level companies, competitors also structure to the membership, companies interested in materials, devices and systems Collaboration with industry & government, education & student contact, networkingCollaboration with industry & government, education & student contact, networking Linkage with organization's strategic plansLinkage with organization's strategic plans Quick turn-around on industry requests; outreach to companies' customersQuick turn-around on industry requests; outreach to companies' customers

32. Slide 32 Industry/University Cooperative Research Centers Item 16: Other rejection factors It was almost all about the money. Hard times in Detroit....It was almost all about the money. Hard times in Detroit.... Company policy does not support affiliate programsCompany policy does not support affiliate programs Some companies prefer to pay for contract research specific to their product portfolioSome companies prefer to pay for contract research specific to their product portfolio Ability to commit long term funding from industryAbility to commit long term funding from industry Government politics-as where FDA is putting its $s, or Natick-they sell what makes them look good.Government politics-as where FDA is putting its $s, or Natick-they sell what makes them look good. Only support local universityOnly support local university Complications of Membership Agreement requirements, per I/U CRC standardsComplications of Membership Agreement requirements, per I/U CRC standards

33. Slide 33 Industry/University Cooperative Research Centers Item 17: Changes to membership structure We have a complimentary testing facility available but not directly to my CACCWe have a complimentary testing facility available but not directly to my CACC Membership payments "in kind" (e.g., equipment suppliers) are being discussedMembership payments "in kind" (e.g., equipment suppliers) are being discussed Expanded to 3 levels of membership.Expanded to 3 levels of membership. We have guaranteed new sponsors that they will get a research project. Veteran sponsors have no such guarantee.We have guaranteed new sponsors that they will get a research project. Veteran sponsors have no such guarantee. Explicitly guarantee that a new member will receive the project of their choiceExplicitly guarantee that a new member will receive the project of their choice 3-tiered membership. Offered workshop based on training provided to FDA.3-tiered membership. Offered workshop based on training provided to FDA. Project based operationProject based operation Provide samples for testing to members. Do instrumental analysis on samples from company.Provide samples for testing to members. Do instrumental analysis on samples from company. We have established a tiered membership, became multi-site, but most importantly we changed our focus to meet the interest of new members.We have established a tiered membership, became multi-site, but most importantly we changed our focus to meet the interest of new members. Introduced an associate membership status that gives organizations additional flexibility in interacting with usIntroduced an associate membership status that gives organizations additional flexibility in interacting with us Allowing IAB Chair to "broker" multiple, outside small company investments into full Member fee for common action within Center prospectusAllowing IAB Chair to "broker" multiple, outside small company investments into full Member fee for common action within Center prospectus

34. Slide 34 Industry/University Cooperative Research Centers Item 18: Recruiting government agencies NHTSA will likely join as a non-voting member through a cooperative research agreement. Very difficult to get this through the lawyers.NHTSA will likely join as a non-voting member through a cooperative research agreement. Very difficult to get this through the lawyers. Focuses on access to industrial needs rather than solving problems of a particular sponsoring companyFocuses on access to industrial needs rather than solving problems of a particular sponsoring company We emphasize how the membership fee payment can be simplified via a MPPIR through NSF.We emphasize how the membership fee payment can be simplified via a MPPIR through NSF. We are more flexible in handling membership fee.We are more flexible in handling membership fee. I would let them participate at a lower membership costI would let them participate at a lower membership cost Joint research is emphasizedJoint research is emphasized Some federal agencies prefer grants.Some federal agencies prefer grants. Mostly through direct research contactsMostly through direct research contacts

35. Slide 35 Industry/University Cooperative Research Centers Open Comments Finding the right person to champion the center. Our members are very committed. We have champions in other companies but they haven't been able to turn their efforts into $$.Finding the right person to champion the center. Our members are very committed. We have champions in other companies but they haven't been able to turn their efforts into $$. Statistics about the number of center supported graduates and the companies where they found employment after graduationStatistics about the number of center supported graduates and the companies where they found employment after graduation Only a dedicated and active effort produces positive results.Only a dedicated and active effort produces positive results. The CFSP is a new multi-university I/UCRC established in October 2004. we established an intensive mailing and telecom system to obtain our initial 18 members. The most important factor in recruiting membership is the one-on-one interaction with potentialThe CFSP is a new multi-university I/UCRC established in October 2004. we established an intensive mailing and telecom system to obtain our initial 18 members. The most important factor in recruiting membership is the one-on-one interaction with potential If one wants to sell shoes you must have the best shoes in the world. We have to not only sell memberships but we have to have something to sell. We have always recruited PIs from all over the country-the best science and the best PIs!-that is what sells!If one wants to sell shoes you must have the best shoes in the world. We have to not only sell memberships but we have to have something to sell. We have always recruited PIs from all over the country-the best science and the best PIs!-that is what sells!

36. Slide 36 Industry/University Cooperative Research Centers Open Comments cont’d From conferences you can see what companies are attending, what level of research a company does and how far reaching that research is, also companies that sponsor meetings and seminars will have a more generous out look and would see value in an IUCRC.From conferences you can see what companies are attending, what level of research a company does and how far reaching that research is, also companies that sponsor meetings and seminars will have a more generous out look and would see value in an IUCRC. Access to students for internships and employmentAccess to students for internships and employment Need a MAJOR common mission, and intense multi-year effort, to create sustainable Center membership base-- and then I/U CRC program requires shifting from that every 5 years--- leading to Center "fatigue" [ as anticipated by "not to be perceived as an 'entitlement'" philosophy ].Need a MAJOR common mission, and intense multi-year effort, to create sustainable Center membership base-- and then I/U CRC program requires shifting from that every 5 years--- leading to Center "fatigue" [ as anticipated by "not to be perceived as an 'entitlement'" philosophy ].