SCIENCE ADMINISTRATION LECTURE 12

1. SCIENCE ADMINISTRATION LECTURE 12 HOW TO ADMINISTER INDUSTRY/UNIVERSITY RESEARCH ALLIANCES: TARGETED BASIC RESEARCH ILLUSTRATION: National Science Foundation’s Industry & University Cooperative Research Program (I/UCRC) FREDERICK BETZ PORTLAND STATE UNIVERSITY

2. INDUSTRIAL NEED FOR SCIENCE • Industry always directly uses technology in its production of goods and services. Usually industry does not directly use science – but only indirectly through technology. • Exception! Industry directly needs new science when: • new basic technologies need to be created from new science, • technological progress in an existing technology cannot be made without a deeper understanding of the science underlying the technology.

3. Technology Bottlenecks Industry knows how to incrementally develop new technology for its needs. Technologies are systems, and the morphology and logic of technology systems can be described. Engineering describes technologies as systems. Industry can identify technology bottlenecks in current technology systems. Industry can organize research programs in industrial laboratories to address these bottlenecks. But it is when industry needs new science that major problems in the R&D infrastructure arise. When new science is needed then university research can directly complement industrial research. Then industry-university research partnerships prove valuable -- industry/university strategic research partnerships.

4. Industry’s Use of University Research Science has become expensive and seldom contributes to near-term profitability in a direct sense. The average time from scientific discovery to technological innovation has varied historically, from as long as 70 years to as short as 10 years. In the twentieth century in the best cases, it has usually taken at least 10 years from laboratory to product. Also, science has become primarily the responsibility of modern universities. In universities, scientific research is integrated with graduate education, and projects are divided into “thesis” size and duration. Scientific research in universities is performed by doctoral candidates for their thesis requirements. Doctoral research is seldom at a scale, breadth, or timeliness suitable for industrial needs. This is the problem—when industry needs science, (1) it can do it itself at great expense, high risk, and trouble, or (2) it can turn to universities to do the science, but performed in forms and timing unsuitable to industrial needs. Thus, while there is a natural basis for cooperation between industries and universities, the problem is to effect the cooperation.

5. University Science and Industrial Technology Fundamental science has a long-term, generic perspective on what is important. Scientists are motivated by achievement of scientific fame. Technology has a shorter-term view, focused on solving a particular problem. Technologists are motivated by the satisfaction of solving a problem and being rewarded by commercial and financial success. Fundamental scientists and technologists form distinct research communities with distinctly different cultures and values. Industry has adopted and evolved the culture of technology within industry because it directly uses technology. But industry has never wholly adopted and evolved the culture of science within industry because it only indirectly uses science.

6. In contrast to industry, universities have adopted and evolved the culture of science because they directly use science in education. • But universities have only partially adopted and evolved the culture of technology (and then only in their professional schools of engineering and medicine, and not in their schools of arts and science). • For effective long-term corporate technology strategy, the problem of how best to organize research in industry requires: • attention to managing corporate and divisional research labs, and • attention also to managing industrial involvement in university-based science.

7. INTERACTIONS OF SCIENCE & ENGINEERING & BUSINESS UNIVERSITY S1 T1 NATURAL THING SCIENTIST OBSERVATION SCIENCE DEPARTMENTS DISCIPLINE THEORY T2 S2 NATURAL THING SCEINTIST PREDICTION PROFESSION SYSTEM ENGINEERING DEPARTMENT DESIGN P1 E1 PRODUCT ENGINEER BUSINESS FIRM ENTERPRISE SALES REVENUE M1 B1 BUSINESS PERSON MARKET

8. TYPES OF RESEARCH INQUIRIES PROFESSION INNOVATION SCIENCETECHNOLOGY Discovery Bottleneck Theory Invention ENGINEERINGCOMMERCIALIZATION System Standards Design Process NATURE MARKET FOR HIGH QUALITY, TECHNOLOGY AND COMMERCIALIZATION AND ENGINEERING RESEARCH AT UNIVERSITIES ALL REQUIRE DIRECT INDUSTRIAL SUPPORT AND PARTICIPATION. EXAMPLE – U.S. A. NSF IUCRC PROGRAM.

9. National Science Foundation Industry & University Cooperative Research Program (I/UCRC) The NSF Industry/University Cooperative Research Centers (I/UCRCs) program develops long-term partnerships among industry, academe, and government. The centers are catalyzed by a small investment from the National Science Foundation (NSF) and are primarily supported by center members, with NSF taking a supporting role in their development and evolution. I/UCRCs stimulate highly leveraged industry/university cooperation by focusing on fundamental research recommended by Industrial Advisory Boards. These Industrial Advisory Boards consist of industrial companies contributing about $40,000 U.S. dollars per company annually as members of the university center (IUCRC).

10. LESSONS FOR SCIENCE ADMINISTRATION INDUSTRIAL MONETARY CONTRIBUTION TO A UNIVERSITY RESEARCH CENTER IS ESSSENTIAL BECAUSE – WITHOUT A MONETARY COMMITMENT THE INDUSTRIAL FIRM MAY NOT PROVIDE THE TIME AND EFFORT FOR EFFECTIVE RESEARCH COOPERATION. BUSINESSES EVALUATE ALL ACTIVITIES (INCLUDING RESEARCH) IN TERMS OF MONEY – AS COST OR AS REVENUE.

11. NSF Program Officers for the IUCRC Program Alex Schwarzkopf, I/UCRC Program Manager, Directorate for Engineering, Division of Engineering Education & Centers, 585 N, telephone: (703) 292-5359, fax: (703) 292-9051, email: aschwarz@nsf.gov Glenn H. Larsen, Program Director, Directorate for Engineering, 505 N, telephone: (703) 292-4607, fax: (703) 292-9013, email: glarsen@nsf.gov Edward V. Clancy, Program Director, Directorate for Engineering, Division of Engineering Education & Centers, 585 N, telephone: (703) 292-8492, email: eclancy@nsf.gov Gregory L. Misiorek, Program Assistant, Directorate for Engineering, Division of Engineering Education & Centers, 585 N, telephone: (703) 292-8383, fax: (703) 292-9051, email: gmisiore@nsf.gov Rita V. Rodriguez, Program Director, Directorate for Computer & Information Science & Engineering, Division of Computer and Network Systems, 1175 N, telephone: (703) 292-8950, fax: (703) 292-9010, email: rrodrigu@nsf.gov

12. The Industry/University Cooperative Research Centers (I/UCRC) Program was initiated in 1973 to develop long term partnerships among industry, academe and government. The National Science Foundation invests in these partnerships to promote research programs of mutual interest, to contribute to the Nation's research infrastructure base and to enhance the intellectual capacity of the engineering workforce through the integration of research and education. The Centers are catalyzed by a small investment from NSF and they are primarily supported by Center members, with NSF taking a supporting role in their development and evolution. The I/UCRC Program initially offers five-year awards to Centers -- to develop a strong partnership between the academic researchers and their industrial and government members. After five years, Centers that continue to meet the I/UCRC Program requirements may apply for a second five-year award -- to continue to grow and diversify their non-NSF membership. After ten years, the Centers are expected to be fully supported by industrial, other Federal agency, and state and local government partners.

13. LESSONS FOR SCIENCE ADMINISTRATION IN TERMS OF AN ACTIVE RESEARCH LIFETIME, UNIVERSITY RESEARCH CENTERS HAVE A FINITE LIFETIME FOR A GIVEN RESEARCH FOCUS. THIS DEPENDS UPON THE QUALITY OF THE DIRECTOR. NSF CHOSE 5 AND 10 YEARS AS CENTER AWARD LIFETIMES.

14. A Center in the NSF I/UCRC Program must: Develop a partnership among academe, industry and other organizations participating in the Center. Consult with Center members to set a defined research agenda focused on shared research interests, needs, and opportunities. Share the intellectual property developed by the Center equally among Center members in accordance with the Bayh Dole Act. Have Center members that monitor and advise on the progress of the research, which speeds two-way transfer of knowledge between universities and industry. Have a strong industry/university interaction program of university, industry, and other partners that are the primary financial resource for the Center. Have a formal structure and policies for Center members outlined in an I/UCRC membership agreement (using the Sample Membership Agreement as a guide).

15. Rely on graduate student involvement in high quality research projects, thus developing students who are knowledgeable in industrially relevant research. Have an interdisciplinary team of faculty and students that is diverse in gender, race, and ethnicity. Have a Center Director, based at the lead university, who is responsible for all Center activities. Have a research team capable of developing and operating a Center. Have formal evaluation of the partnership conducted by an independent evaluator.

16. LESSONS FOR SCIENCE ADMINISTRATION UNIVERSITY RESEARCH CENTERS REQUIRE POLICIES FOR ORGANIZATION, LEADERSHIP, INTELLECTURAL RIGHTS AND INTEGRATION OF RESEARCH AND EDUCATIONAL PROGRAMS.

17. An I/UCRC has the following infrastructure: Industrial Support Requirements: Members are generally comprised of industrial firms, organizations, and non-NSF Federal agencies. A center must obtain $300,000 annually in cash membership fees. There must be a minimum of six Center members with a membership fee of of $25,000 or higher per year. Other membership level categories with lower fees may be designated to encourage small company participation in the Center. The agreement outlines Center policies and is signed by all Center members. Center policies address: property rights, publication delays, membership fees and rights.

18. Center management and organization includes: A Center Director who is responsible for all aspects of Center operation, has primary responsibility for administering the award in accordance with NSF's Grant Special and General Conditions and the I/UCRC Program. An Industrial Advisory Board (IAB) that reviews ongoing and completed research activities and recommends new research projects. A University Policy Committee that facilitates the operation of the Center within the university or universities to help assure recognition for participation in the Center in tenure and promotion decisions, and to assure that the research is appropriate for graduate education. Research collaboration among multiple factulty investigators. Graduate student involvement.

19. LESSONS FOR SCIENCE ADMINISTRATION MANAGEMENT OF INDUSTRIAL COOPERATIVE UNIVERSITY RESEARCH CENTERS REQUIRE ORGANIZATION FOR: FACULTY DIRECTOR, INDUSTRIAL ADVISORY BOARD UNIVERSITY POLICY COMMITTEE.

20. The three phases for I/UCRC Program funding are described below. All phases are required for all prospective centers. • 1. Letter of Intent • A letter of intent describing the proposed Center must be submitted to NSF for internal review. The letter of intent must be approved by an I/UCRC Program Director before a proposal for a planning grant award will be accepted. (Approval decisions will be made periodically, but no later than three months after receipt of a letter of intent.) • The proposed Centers that fit within the industry/university collaborative scope, are considered potentially viable, are economically important to the research area, and do not significantly duplicate the research focus of other Centers funded in the program will be encouraged to submit a proposal for a planning grant.

21. 2. Planning Grant Proposal A planning grant supplies funds to study the feasibility of developing the industry/university interaction necessary to establish and support a Center. As part of this study, it is a requirement that a meeting that brings together potential members to explore opportunities and establish a research plan that fits their needs be held. Planning grant proposals will be reviewed competitively by a panel. 3. Center Proposal The NSF support is generally "seed funds" used to augment support for administration of the Center. The initial I/UCRC award to a Center has a potential duration of five years, assuming sufficiently meritorious achievement and success at maintaining leverage of NSF support. The initial I/UCRC award may be extended for an additional period of up to five years following a successful renewal review guided by peer evaluation and a favorable recommendation by the NSF Program Director.

22. AWARD INFORMATION Planning Grant - 12 month standard award. $10,000 per institution for a planning grant award for 12 months. Center Awards - continuing or standard grant. About $400,000 per year is available for new awards pending the availability of funds. The annual I/UCRC program budget is approximately $5.2 million. Centers may be based at a single institution, or may be multi-institutional. The initial I/UCRC award to a Center has a potential duration of five years, assuming sufficiently meritorious achievement andsuccess at maintaining leverage of NSF support. The I/UCRC program funds awards at two levels. For multi-institution Centers, institutions obtaining an annual cost participation between $150,000 and $300,000 can receive up to $50,000 annually.(Note -- the center must obtain a total of $300,000 in cost participation to receive an award. Institutions obtaining $300,000 or more annually can receive up to $70,000annually.

23. LESSONS FOR SCIENCE ADMINISTRATION • GOVERNMENT RESEARCH AWARDS FOR UNIVERSITY/INDUSTRY COOPERATIVE RESEARCH CENTERS REQUIRE A STAGED APPROACH: • INTENTION TO SUBMIT PROPOSAL, • PLANNING PROPOSAL, • 5-YEAR OPERATING AWARD, • ANNUAL OVERSIGHT OF CENTER PROGRESS.

24. SUMMARY: LESSONS FOR SCIENCE ADMINISTRATION INDUSTRIAL MONETARY CONTRIBUTION TO A UNIVERSITY RESEARCH CENTER IS ESSSENTIAL BECAUSE – WITHOUT A MONETARY COMMITMENT THE INDUSTRIAL FIRM MAY NOT PROVIDE THE TIME AND EFFORT FOR EFFECTIVE RESEARCH COOPERATION. BUSINESSES EVALUATE ALL ACTIVITIES (INCLUDING RESEARCH) IN TERMS OF MONEY – AS COST OR AS REVENUE. IN TERMS OF AN ACTIVE RESEARCH LIFETIME, UNIVERSITY RESEARCH CENTERS HAVE A FINITE LIFETIME FOR A GIVEN RESEARCH FOCUS. AND THIS DEPENDS UPON THE QUALITY OF THE DIRECTOR. NSF CHOSE 5 AND 10 YEARS AS CENTER AWARD LIFETIMES. UNIVERSITY RESEARCH CENTERS REQUIRE POLICIES FOR ORGANIZATION, LEADERSHIP, INTELLECTURAL RIGHTS AND INTEGRATION OF RESEARCH AND EDUCATIONAL PROGRAMS. MANAGEMENT OF INDUSTRIAL COOPERATIVE UNIVERSITY RESEARCH CENTERS REQUIRE ORGANIZATION FOR: FACULTY DIRECTOR, INDUSTRIAL ADVISORY BOARD, AND UNIVERSITY POLICY COMMITTEE. GOVERNMENT RESEARCH AWARDS FOR UNIVERSITY/INDUSTRY COOPERATIVE RESEARCH CENTERS REQUIRE A FOUR STAGED APPROACH: (1) INTENTION TO SUBMIT PROPOSAL, (2) PLANNING PROPOSAL, (3) 5-YEAR OPERATING AWARD, (4) ANNUAL OVERSIGHT OF CENTER PROGRESS.