Entrepreneurial Universities and Knowledge-Based Economic Development

1. Entrepreneurial Universities and Knowledge-Based Economic Development Janet Bercovitz Duke University

2. Entrepreneurial Universities:The Black Box of Technology-Transfer R&D Funding Faculty -- Quality, Disciplines Organizational Factors: University Policy, Tech-Transfer Office Structure, Routines, Culture, Cohort Know-How Students, Publications Patents, Licenses, Spin-off Cos. Economic Development

3. Creating Entrepreneurial Universities: A Process of Change at Three Levels Environmental Institutional Individual

4. Changing Environment for University-Industry Relationships • Universities Have Long Served as a Source of Scientific and Technical Knowledge • Recent Environmental Changes. . . • Emergence of New Technology Platforms • Legislative Mandate -- Bayh-Dole Act of 1980 • Greater Knowledge-Based Competition • . . .Have Catalyzed a Shift in Emphasis • Dissemination of Knowledge Dissemination of Commercializable Knowledge

5. Inventor is a Faculty Member Eureka Moment! Faculty Files Invention Disclosure Federal requirement Low cost procedure, 0n-line forms Technology Transfer Office Evaluates Is it new? Useful? Non-obvious? If yes, then patent If Patent, then the Desired Outcomes Licenses Licensing revenues Start-up companies University Technology-Transfer Process

6. Trends in Academic Patenting(AUTM Recurrent Respondents 1991-2001) Source: AUTM 2001 annual survey (69 recurrent respondents)

7. Trends in Academic Disclosure and Licensing(AUTM Recurrent Respondents FY1991-2001) Source: AUTM 2001 annual survey (71 recurrent respondents)

8. Industry Sponsored Research Millions of Current 1992 Dollars Source: NSF Science and Engineering Indicators

9. “Progress” Is Not Uniform • Overall, we see a significant increase in the level and formalization of knowledge transfer activities at the university-industry interface However • There remains great variation in level of technology transfer activity across universities

10. Variation in Tech-Transfer Activity Source: AUTM 2002 annual survey

11. Change at the University Level • Establishment of a Dedicated Technology-Transfer Office • Experience, Size, and Structure Effects • Adoption of Royalty-Sharing Incentives • Academic research, inventive, and spin-off activity respond to monetary incentives. • Willingness to Offer Equity-Based Licenses • Influenced by TTO Budget Policy • Supports Spin-Off Activity

12. Equity Deals Per University Source: Research University TTO Survey (Feldman, Feller, Bercovitz, and Burton, 2002)

13. Influence of Benchmarking • Tech Transfer Benchmarking is important • Comparison are rampant • Universities who lag their cohort made greater use of new technology transfer mechanisms

14. Inventor is a Faculty Member Eureka Moment! Faculty Files Invention Disclosure Federal requirement Low cost procedure, 0n-line forms Technology Transfer Office Evaluates Is it new? Useful? Non-obvious? If yes, then patent If Patent, then the Desired Outcomes Licenses Licensing revenues Start-up companies We care about outcomes, but they are predicated on faculty disclosing inventions University Technology-Transfer Process

15. Seemingly Straightforward It’s the law Articulated university goal Just about anything can be disclosed But, In Practice, Has Proven Difficult Only a subset of research with commercial potential disclosed Perceived Barriers Basic research is not amenable (wrong) Risk of publication delays (wrong) Just not appropriate == older norms of science Invention Disclosure as a Measure of Entrepreneurial Behavior Change at the Individual Level:Getting Faculty Invention Disclosures

17. At Issue • What factors influence an individual faculty member’s disclosure decision? • Technical Opportunity? • Financial Resources and Incentives? • Social Imprinting and Social Learning?

18. Disclosures are Differentially Concentrated within Medical School Department

19. Within Department Variation in Disclosure

20. Imprinting & Entrepreneurial Activity • Social Imprinting. • An Individual is Shaped by the Norms and Values Prevalent: • In Key Social Institutions • During Formative Stages of Development Training Institution Active in Tech-Transfer (+) Likelihood of Disclosure Completed Training Recently (+)

21. Social Learning & Entrepreneurial Activity • Individuals Learn How to Behave in Organizations by Observing the Behavior of Referent Others • Leaders • Build/Define Culture • Act as Role-Model • Peers • Information Source • Influence Decisions Leader is Active in Tech-Transfer (+) Likelihood of Disclosure Peers are Active In Tech-Transfer (+)

22. Data • Observation – Individual Faculty Member • Duke University and Johns Hopkins University • Same financial incentives at time under consideration • Fifteen Matched Medical School Departments • Basic, Nexus, and Clinical Departments • Research is expected from all faculty members • 1779 Individuals • Administrative Records • Technology Transfer Office Database

23. Findings • The Decision to Participate in Technology Transfer is Influenced by • Imprinting: Where and When an Individual Trained. • Social Learning: What their Chairman Does; What Others Like Them Do. • Individual Inventive Capacity is Also Key • Dual Degree • Boundary-Spanning • Non-US Degree • Selection and Socialization

24. The Broader Message • Multi-Level Change is Necessary in the Development of Entrepreneurial Universities • Environmental, Organizational, Individual • Creating Entrepreneurial Organizations and/or Promoting Organizational Change Requires Understanding and Management of both Individual Motivations and Departmental Composition

25. Entrepreneurial Universities and Knowledge-Based Economic Development • Universities are necessary -- not sufficient for knowledge-based economic development • Places of Invention Places of Innovation • Spin-offs are a local phenomena • Regions have differential capacity to absorb university outputs • Ability to retain university graduates • Ability to grow companies • Availability of VC/Angel Funding • Availability of Experienced Management