Universities as a Source for Opportunities

1. Universities as a Source for Opportunities

2. Research and Commercialization in US Universities • FY 2007 Statistics • $48 billion in research at US universities • $3.4 billion in industry funded research, a 15% increase over FY 2006 • Almost 20,000 invention disclosures • 3,622 newly issued patents • 555 new start-ups based on university technology • Approximately 13,000 active licenses

3. US Federal Laboratories • Federal labs license technologies just like universities • Most laboratories have a technology commercialization office • $35 billion in R&D • More than 5,000 new invention disclosures per year • More than 6,000 active licenses • Research in all technical areas

4. Universities as a Technology Source • Universities are an engine of innovation • University innovations only reach the market with partners • Technical expertise is in the university • What is missing is business expertise • Exclusive licensing is normal

5. Example Businesses google.stanford.edu

6. Example Businesses

7. Universities and Similar Technology Sources • Positives • Deep technical capabilities and reservoirs of technologies • Name recognition • Profit is not the only driver • Public information is readily accessible and searchable • Funded follow on research is possible

8. Universities and Similar Technology Sources • Negatives • Support for knowledge transfer may be hard to get • Low development state of many technologies • Can be hard to do business with • Timelines may be long • Past patent costs are expected to be covered by the licensee • Technology development rarely occurs for a market reason

9. Common Myths • Must be big to work with big organizations • Licensing is too expensive • Enhanced technical performance will always lead to increased markets • There is no competition to the new technology • Competition is bad

10. University Goals • University’s mission includes – • Education, research, public service/good • Commercialization is part of public good • Universities must work with private industry to commercialize technologies • Success is dependent on each partner • Long-term industry relationships are the most productive way to meet goals

11. Reaching the Marketplace • Taxpayers are served when technologies reach the marketplace to better their lives and the economy • Ensured through commercialization goals in license agreements • Universities are stewards of taxpayer property and seek a fair return on taxpayer property • University inventions fall into this category • All businesses must be treated equally

12. Universities Lead Spin-Out Opportunities? • Goldilocks technologies • Not developed enough to attract licensees • Developed enough to attract angels • Next steps usually involve further research at the university • Early payback to the university • Value add step is relatively inexpensive • Opportunity is fundable

13. What is Fundable? • Large market • Competitive advantage • Experienced management • Market pull • Identifiable value inflection point • Exit strategy • Profit potential for the investor

14. Potential Blind Spots • Intellectual property • Have an attorney review the intellectual property position • Freedom to operate, not just patentability • Researcher support • Make sure the inventor still cares • Does the commercialization plan fit with the inventor goals? • Additional development required

15. Entrepreneurial Opportunities and Universities • You do not have to be the inventor • Good technologies are readily available • Get close to your local technology sources • Know their research strengths • Understand your technology partner • Negotiate with their goals in mind