1. www.InnovationAssociates.us Slide 1 I A “Fostering Entrepreneurship and the Role of the University” OEDC Conference: Fostering Entrepreneurship The Role of Higher Education 23-24 June 2005 Presented by: Diane Palmintera President, Innovation Associates dpalmintera@innovationassoc.com

2. www.InnovationAssociates.us Slide 2 Fostering Entrepreneurship and University Technology Transfer I A Universities Are a Major Source of Entrepreneurial and Technology-Based Economic Development  In the US, since the passage of the Bayh-Dole Act in 1980, universities have been an increasing source of entrepreneurial development.  In FY 2001, US universities performed more than $30 billion of R&D. This research provides the pipeline for technology transfer and entrepreneurial activities including patenting, licensing, and launching of start-up enterprises.

3. www.InnovationAssociates.us Slide 3 Fostering Entrepreneurship and University Technology Transfer I A Universities Are a Major Source of Entrepreneurial And Technology-Based Economic Development  There is no doubt about the major impact of university technology transfer on economic development. The FY 2003 AUTM Licensing Survey™ found that reporting universities:  Established more than 4,100 new companies since 1980, the majority of which were still operating.  Executed almost 4,500 new licenses and options in FY 2003, and a total of more than 26,000 licenses were active from current and previous years.  Launched more than 2,200 new commercial products between FY 1998 and FY 2003.

4. www.InnovationAssociates.us Slide 4 Fostering Entrepreneurship and University Technology Transfer I A Universities are Commercializing Technologies and Starting Up Enterprises  University technology transfer is a complex process. It operates as part of the university’s internal culture and environment and as part of the external environment in the community and state.  Internally, the “culture” of a university is one of the strongest influences on its technology transfer and commercialization performance. This includes incentives, rewards, and leadership that encourage faculty to commercialize research.

5. www.InnovationAssociates.us Slide 5 Fostering Entrepreneurship and University Technology Transfer I A Universities are Commercializing Technologies and Starting Up Enterprises.  Universities successful in commercializing technologies and starting up enterprises understand that engineers and scientists make poor business people.  Entrepreneurial-engaged universities provide, or facilitate access to sources of risk capital, management capacity building, and networking.

6. www.InnovationAssociates.us Slide 6 Fostering Entrepreneurship and University Technology Transfer I A Entrepreneurial-Engaged Universities Facilitate Access to Risk Capital  University technology transfer offices often have close linkages to private seed and venture capital firms. Successful offices facilitate linkages between researchers and firms.  Some universities sponsor or encourage linkages to enterprise forums or “springboards” that screen, mentor and showcase promising academic entrepreneurs to potential investors.

7. www.InnovationAssociates.us Slide 7 Fostering Entrepreneurship and University Technology Transfer I A Entrepreneurial-Engaged Universities Facilitate Access to Risk Capital  A number of US universities have their own seed capital funds that invest in university-based entrepreneurs. Some funds build management capacity in enterprises in which they invest.  Some universities also have commercialization funds designed to advance research to near-market stages.

8. www.InnovationAssociates.us Slide 8 Fostering Entrepreneurship and University Technology Transfer I A Entrepreneurial-Engaged Universities Build Management Capacity in Start-Ups  Some universities hire consultants to devise business models, recruit management, secure financing and launch start-up enterprises. They do not permit academics to have management or fiduciary roles.  Other universities work with start-up enterprises from “cradle to grave”. Some have mentoring and “CEO-in-Residence” programs that use experienced entrepreneurs to help new ones.

9. www.InnovationAssociates.us Slide 9 Fostering Entrepreneurship and University Technology Transfer Entrepreneurial-Engaged Universities Provide Opportunities to Network  Networking is a critical ingredient in all university activities. Events may be sponsored by the university or closely linked to those sponsored by technology councils, economic development organizations, and cluster groups.  Formal seminars, enterprise forums, technology breakfasts/ luncheons, and awards dinners all facilitate networking. Informal activities – coffees, holiday parties, etc. – are often more important than formal ones. I A

10. www.InnovationAssociates.us Slide 10 Fostering Entrepreneurship and University Technology Transfer I A Source: Innovation Associates Inc. Figure 1 Selected U.S. Universities by Technology Transfer and Commercialization Metrics FY 2003 Source: Innovation Associates Inc. Figure 1 Selected U.S. Universities by Technology Transfer and Commercialization Metrics FY 2003

11. www.InnovationAssociates.us Slide 11 Fostering Entrepreneurship and University Technology Transfer I A Entrepreneurial-Engaged Universities Train and Support Student Inventors  Business plan competitions are an effective way of exposing students to investors. Many competitions add value through business development and mentoring activities.  Internships and practicum with start-up enterprises and venture capital firms expose students to real-world entrepreneurial development.  Entrepreneurship coursework, “boot camps”, and internships should involve engineering and science students as well as business students.

12. www.InnovationAssociates.us Slide 12 Fostering Entrepreneurship and University Technology Transfer I A Entrepreneurial Climates Can Be Enhanced by Research Parks and Incubators  University i ncubators and research parks contribute to an entrepreneurial culture and provide a visible ”technology presence”.  Incubators and research parks are only as good as the networking opportunities that they facilitate, and the investment and business development services that they provide.

13. www.InnovationAssociates.us Slide 13 Fostering Entrepreneurship and University Technology Transfer I A Lessons for Entrepreneurial-Engaged University “Want-To- Be’s”  A strong and focused university research base provides the pipeline for transferring and commercializing university technologies, and launching start-up enterprises.  Champions are often key to creating an entrepreneurial climate in and around the university. These champions are usually the university’s President or Chancellor.  Risk capital is a critical ingredient in launching university-based, start-up enterprises. Universities should provide opportunities for entrepreneurs to prepare for and network with investors.

14. www.InnovationAssociates.us Slide 14 Fostering Entrepreneurship and University Technology Transfer I A Lessons for Entrepreneurial-Engaged University “Want-To- Be’s”  Management capacity building is particularly important for university scientists and engineers who want to become entrepreneurs.  Business plan competitions, internships, practicum, and boot camps provide good opportunities for students to learn from experienced entrepreneurs.  Networking is an integral part of a university’s entrepreneurial culture.

15. www.InnovationAssociates.us Slide 15 Fostering Entrepreneurship and University Technology Transfer I A Lessons for Entrepreneurial-Engaged University “Want-To- Be’s”  Incubators and research parks can provide a visible “technology presence” at a university, but are only as good as the business services and networking opportunities they provide.

16. www.InnovationAssociates.us Slide 16 Fostering Entrepreneurship and University Technology Transfer I A Download From IA’s Website:  Accelerating Economic Development Through University Technology Transfer and Commercialization  Partners on a Mission: Federal Laboratory Practices Contributing to Economic Development  Developing High-Tech Communities: San Diego

17. www.InnovationAssociates.us Slide 17 Fostering Entrepreneurship and University Technology Transfer I A INNOVATION ASSOCIATES Providing Consulting Services to International Organizations, Communities, States, Universities and Private Sector www.InnovationAssociates.us