University Technology Transfer and Commercialisation of Research: Some Evidence from International...

University Technology Transfer and Commercialisation of Research:

Some Evidence from International Best Practice

Brian Harney

CISC Seminar Programme21st October, 2004

Technology Transfer Rationale

► Rationale

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

► Rationale



Means for TT



Universities

GovernmentIndustry

Triple Helix and ‘Strategic role’ of Universities in Knowledge based Economies

Technology Transfer Dispelling Myths

► Rationale



Means for TT



• Technology Transfer is not new phenomenon

• Technology Transfer is not a major source of revenue

• Technology Transfer activities compliment not

cannibalize

Technology TransferTheoretical Perspectives

Rationale

► Theoretical Perspectives


Means for TT



- Defining Technology Transfer

- Rational Linear Model vs Relationship Perspective

- Diversity of models and channels for TT

- Technology Transfer Process

Technology Transfer Theoretical Perspectives

Rationale

► Theoretical Perspectives


Means for TT



Thursby and Kemp(2002)

Rogers et al.,

(2000)

Poltz et al.,(2000)

Siegel et al.,(2002)

Thursby et al., (2001)

Carlsson and Fridh

(2002)

Friedman and Silberman

(2003)

Sample Size(Universities)

112 131 142 113 47 170 83

Years Analysed

1991-96 1996 1991-98 1991-96 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 AUTM and Survey of TTO

AUTM and Survey of TTO

AUTM

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

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

Technology Transfer Structure

Rationale


► TT Structure and Activities

Means for TT



• 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

Rationale



Means for TT



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.

Technology Transfer Activities

Rationale



Means for TT



Managing expectations

Stakeholder

Actions Primary Motive Secondary Motive Organisational Culture

UniversityScientist

Discovery ofNewKnowledge

Recognition within the ScientificCommunity

Financial gain and aDesire to secureadditionalresearch funding

Scientific

TTO Works withfaculty andFirms/entrepeneurs tostructure deal

Protect andMarket the university’sIP

Facilitate technologicaldiffusion and secureadditional researchfunding

Bureaucratic

Firm/Entrepreneur

CommercialNewTechnology

Financial Gain Maintain control ofProprietary technologies

Entrepreneurial

Technology Transfer Skill Set

Rationale



Means for TT



- 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

Rationale



► 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



► 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



► Means for TT



• TT via licensing or enterprise development

Technology Transfer Conditions

Rationale



Means for TT

► Conditions influencing University TT


• 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

Technology Transfer Key Issues

Rationale



Means for TT


► Key Issues for University Technology Transfer

Mechanisms for

TechnologyTransfer

OrganisationStructure

Staff/Resources

Activities Strategic Tech

Transfer

EvaluationMechanisms

Policies and Procedures

Researcher Commitment, Motivation, Awareness

Culture and Ethos for Commercialisation


Rationale



Means for TT



A Co-operative Model of ILOs

Shared Services Could Include

University based Services

Licensing negotiation

Market Research for New Technologies

IP Marketing

IP Management

Spin Out Creation

Legal Expertise

Raising Awareness of IP issues

Negotiating Collaborative Research Contracts

Reach-out to business

Consultancy contracts

Local contact

Source: Adopted from Lambert (2003:56).


Rationale



Means for TT



Mechanisms for

TechnologyTransfer


Staff/Resources


Transfer






Rationale



Means for TT



• Developing Technology Transfer Metrics

Need for 'local' metricsOrganic nature of university-industry interactionsDifferences across disciplinesResistance/lack of enthusiasm for evaluative metricsInterdependence between university activitiesIndirect impacts SerendipityOver 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



Means for TT



Mechanisms for

TechnologyTransfer


Staff/Resources


Transfer





Technology Transfer Concluding Points

Rationale



Means for TT



• Culture and ethos of commercialisation

• Commitment, Motivation, Awareness

•Varieties of Excellence

University Technology Transfer and Commercialisation of Research: Some Evidence from International...

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