1. Michael M. Crow Executive Vice Provost Columbia University April 17, 2001 The Academy and the Market in the U.S. Research and Economic Advance after 2001

2. U.S. Universities: Stages of Evolution Colonial colleges Research universities funded via philanthropy Land grant colleges via Morill Act Vocationalism Engineering and applied science disciplines institutionalized System of serious research universities established Universities tend toward basic research 179018401940

3. U.S. Universities and Industry: late 19th to early 20th century The relationship between universities and industries is not a new oneThe relationship between universities and industries is not a new one Many U.S. universities chose their missions, styles, and focus based on needs of provincial economyMany U.S. universities chose their missions, styles, and focus based on needs of provincial economy Most research at U.S. universities was hands-on problem-solvingMost research at U.S. universities was hands-on problem-solving

4. U.S. Universities and Industry: early 20th century New engineering and applied science disciplines were institutionalized at universitiesNew engineering and applied science disciplines were institutionalized at universities –training scientists for industry –leading to rise of industrial research laboratory –involving elite institutions (rather than separate schools)

5. U.S. Universities and Industry: mid-late 20th century After WWII, major shift in universities towards basic researchAfter WWII, major shift in universities towards basic research Over the last half century, there has been a clear division of labor between academic and industrial researchOver the last half century, there has been a clear division of labor between academic and industrial research –industry focused on shorter-term problem solving, design and development

6. R&D expenditures at U.S. universities and colleges, by source, FY 1992-99

7. University research important to U.S. industries Milk and dairy productsMilk and dairy products Canned specialtiesCanned specialties Logging and sawmillsLogging and sawmills Pulp, paper and paperboard millsPulp, paper and paperboard mills Farm machinery and equipmentFarm machinery and equipment Grain mill productsGrain mill products Processed fruits and vegetablesProcessed fruits and vegetables Semiconductors and related devicesSemiconductors and related devices Engineering and scientific instrumentsEngineering and scientific instruments Pesticides and agricultural chemicalsPesticides and agricultural chemicals Millwork, veneer and plywoodMillwork, veneer and plywood Synthetic rubberSynthetic rubber DrugsDrugs Animal feedAnimal feed

8. University-Industry Interaction Industrial affiliatesIndustrial affiliates Industrial research contractsIndustrial research contracts Joint Government- Industry centersJoint Government- Industry centers Industrial grantsIndustrial grants Industry-endowed chairsIndustry-endowed chairs Technology transfer –Spin-offs –Licenses Joint ventures Small Business Innovation Research (SBIR) grants

9. The new knowledge-driven economy Knowledge is our most powerful engine of production (Alfred Marshall, 1890) Why is knowledge becoming more important? Extraordinary progress in information and communications technologyExtraordinary progress in information and communications technology Increased speed of scientific and technological advanceIncreased speed of scientific and technological advance Increased global competitionIncreased global competition Changing demandChanging demand

10. Industry-sponsored R&D expenditures at U.S. universities and colleges, FY 1992-99

11. Technology Transfer Trends 3,914 new licenses and options were executed by U.S. universities in FY99 (up 7% from FY98)3,914 new licenses and options were executed by U.S. universities in FY99 (up 7% from FY98) 62% of new licenses and options executed were with small companies62% of new licenses and options executed were with small companies 50% of new licenses and option were exclusive; 50% were nonexclusive50% of new licenses and option were exclusive; 50% were nonexclusive 83% of license income was earned on product sales83% of license income was earned on product sales

12. Industrial/Market Interface Issues Conflict of interestConflict of interest Conflict of commitmentConflict of commitment Changing research agendaChanging research agenda Private vs public sciencesPrivate vs public sciences Academic corruptionAcademic corruption

13. Knowledge As Capital Columbia needs to expand its ability to identify, secure and leverage those intellectual assets that have the capacity to be used as knowledge capital in the new economyColumbia needs to expand its ability to identify, secure and leverage those intellectual assets that have the capacity to be used as knowledge capital in the new economy

14. Columbia Knowledge Over $500 million in research supportOver $500 million in research support 22,000 students22,000 students 2,900 faculty2,900 faculty 58 Nobel Prizes awarded58 Nobel Prizes awarded Over 400 patentsOver 400 patents

16. Columbia Innovation Enterprises (CIEs) CIEs as a new type of venture organizationCIEs as a new type of venture organization CIEs will coordinate the development and transfer of Columbia’s intellectual property, scientific and technological know- how and educational content to the marketplaceCIEs will coordinate the development and transfer of Columbia’s intellectual property, scientific and technological know- how and educational content to the marketplace

17. CIE/Science and Technology Ventures Facilitate the creation of value from University discoveries by conveying them to industry either as licensee or as the catalyst for new company start-upsFacilitate the creation of value from University discoveries by conveying them to industry either as licensee or as the catalyst for new company start-ups

18. CIE/Digital Knowledge Ventures Stimulate innovation and adoption of digital technology by our core asset, the facultyStimulate innovation and adoption of digital technology by our core asset, the faculty Build Columbia’s bridge and storefront to the digital economyBuild Columbia’s bridge and storefront to the digital economy Establish a position in the high-end knowledge content businessEstablish a position in the high-end knowledge content business

19. CIEs: Goals, 2001-2005 Increase the identification and recovery of scientific and technological innovations from Columbia science and engineering laboratoriesIncrease the identification and recovery of scientific and technological innovations from Columbia science and engineering laboratories Establish mechanisms for innovation enhancement prior to new company formation or licensingEstablish mechanisms for innovation enhancement prior to new company formation or licensing Build and operate transfer mechanisms that will move Columbia knowledge content to the marketplace as quickly as possibleBuild and operate transfer mechanisms that will move Columbia knowledge content to the marketplace as quickly as possible

20. CIEs: Goals, 2001-2005 (cont’d) Establish a new enterprise development team for new technological and knowledge-based company formationEstablish a new enterprise development team for new technological and knowledge-based company formation Establish knowledge content and technology partnerships to enhance the leverage of Columbia assetsEstablish knowledge content and technology partnerships to enhance the leverage of Columbia assets Establish web-based marketing mechanisms for new discovery of knowledge and technology that fuel innovation and new enterprise developmentEstablish web-based marketing mechanisms for new discovery of knowledge and technology that fuel innovation and new enterprise development