Engineering Entrepreneurship: A Unique Cooperation Between University and Industry

1. Engineering Entrepreneurship: A Unique Cooperation Between University and Industry Gregory P. Crawford Eric M. Suuberg Division of Engineering, Box D Brown University Providence, RI 02912 Advanced Manufacturing Institute Conference on University And Manufacturing Industry Collaboration Kansas State University August 2002 Gregory_Crawford@Brown.Edu Eric_Suuberg@Brown.Edu

2. Engineering Entrepreneurship Mission Statement To provide engineering and non-engineering students a truly high-technology entrepreneurial business experience and challenging engineering design experience by interacting with local industry & business professionals. Funded by the National Science Foundation: Action Agenda for Systemic Engineering Reform EEC-9972938

3. Course Infrastructure Rapid Prototyping Facility Entrepreneur Headquarters Make them feel like a real company (responsibility): • Computers • Internet access • Conference phone • Copy machine • Scanner • Fax machine • 24 hour access • Laptop • LCD Projector

4. Engineering Entrepreneurship Engineers Non-Engineers Civil Economics Bioengineering PPSO Chemical Classics Mechanical English Electrical Computer OBM Humanities Materials Afferent Interdisciplinary Entrepreneurial Student Companies NSF Funding Local Industry Practical Lectures Brown Faculty

5. Entrepreneurship Course Goals Semester I Semester II Company Role - Board of Directors Company takes on new role - Investors ! Winter Break Practical Lectures • teamwork • intellectual property • technical marketing • business plan • case studies • Requirements • presentations • competitions Technology Demonstrator Professional Business Plan • Engineering • Business Plan Launch ? Deliverables • Lectures • venture capital • finances • preliminary b-plan • market due diligence • engineering design • colleague evaluation • presentations Focus Semester II

6. Mentor Models Technology Mentor Broad Technology Idea Search Markets Find Applications Narrow Concept Product Customer Mentor Search for Technology Feasibility Integration Narrow Concept Customer Need Product

7. Intellectual Property / Ownership Student Team Value Creation Conception Ownership Outcomes Mentor Company Seeds Idea Students take new direction and ownership Development Company retains IP Proof of Concept Company Given Ownership of IP Company relinquishes IP to students

8. Thoughts from a IP Lawyer • All inventors assign rights to sponsoring company Goals Product Development for Sponsor Company • Assign rights to student company • No inventions assigned to sponsor • Company co-inventors assign rights to student company • Sponsoring company agrees not to receive shop right. Create Start-Up Upperclass Design Course Goals • Proceed with no agreements (Probably o.k.) Reference: Neil Ferraro, Wolf Greenfield & Sachs (Boston, MA) Brown Venture Forum, March 2002

9. Course Timeline Preliminary b-plan. Technical Feasibility & design review. Final review B-plan & prototype Market & IP and Preliminary design Review. Design & prototype review Reconnect with mentors Meet mentors Seed Idea. Form companies September December January May Faculty & Guest Lectures Faculty & Guest Lectures August Winter Break June & July • Faculty assess results: • preparing field manual • Faculty screen ideas: • No tech service • No product improve- • ment • Faculty review b-plans • Technical feasibility • Market feasibility

10. Example Course Timeline Final review B-plan & prototype Meet mentor seed Idea. Laser Fare Direct Write Sustain business Laser Fare Application Ideas Laser Fare NCIIA Proposals due Reconnect with Laser Fare Business Model Laser Fare Preliminary b-plan Business Ideas Laser Fare New Markets Laser Fare RI Business Plan Form companies Feasibility Laser Fare September December January May Winter Break Visit Stony Brook Visit Stony Brook Stony Brook visits IMS Visits Visit IMS NCIIA Visit Visit Hasbro Visit Hasbro Visit Sciperio

11. What we have learned • Good Academics • Core Expertise • High Enthusiasm • Year commitment Application by admission only • (50% Engineering/50% Non-Engineers) • Sponsoring Companies have • stake in success of project • Good Match between project/students Avoid non-disclosure agreements • Strong Interest • Core Experience • Access to resources • & Information • Technical Expertise • Overlap interests • Watch Strong • Personality • Students Will Talk • No NDA’s • If necessary then • ‘good faith’

12. Grading Mentor Feedback Quality of Work Product A B C Self and Personnel Evaluations • Presentations • Written work • Engineering design Frequent Interactions General Observations • Students always suggest pass / fail option (Faculty disagree) • Grades < A, Students either drop out or become motivated • Important to privately discuss performance with students

13. 1999-2001 Projects & Partners MDigital Electronic Medical Records TS Prince Filtration Bag Technology Intrinsic Systems Wireless Automation Dr. J. Gutman 2000- 01 1999-2001 Companies 1999- 00 1999- 00 IRIS Solutions Electronic Shelf Labels (ESL) Handprint Portable Ink Jet Printing 2000- 01 1999- 00

14. 2001-2002 Project Technology Integrated hand-held printer technology for small scale portable devices, e.g. PDAs, Palm Pilots, etc. Initial Market Entry Electronic prescription writing and rounds report printing for medical professionals Partner Group preparing for presentation to:

15. 2001-2002 Project Competition Novel CAD Designs – Side Printing Electronics (print engine) Rapid Prototyping Case Smiles when it FITS !

16. 2001-2002 Project Technology Magnetorheological (MR) Fluids – Complex fluids that ‘harden’ and ‘soften’ with EM Activation. Potential vibration dampeners External magnetic field applied Market Hand Arm Vibration Syndrome (HAVS)- Degenerate nerve and vascular damage caused by vibrating tools. Construction & vibrating tool operators. Partner Sensory Technologies, Inc., NOW Afferent Group preparing for presentation to:

17. 2001-2002 Project Competition- Passive Dampening Rapid Prototyping CAD design of tool handle design Electronics Proof of Concept- preliminary data acquired in Prince Laboratory

18. 2001-2002 Project Conformance Solutions Technology Direct write machines ‘write’ electrically conductive lines (< ½ human hair) Market A disruptive technology designed to place electronics in places that were previously thought impossible. Enabling new applications. Partner

19. 2001-2002 Project Conformance Solutions Gov’t Funding Local RI Partner Company Technology Developers Potential (Local) Customers

20. 2001-2002 Project Conformance Solutions Inexpensive Toy Electronics Direct-Write in Action

21. Success / Work Product Journal of Engineering Education Engineering Entrepreneurship: An Example of a Paradigm Shift in Engineering Education (April 2002, page 185) National Collegiate Inventors & Innovators Alliance Four student teams were awarded $15-20K each to continual their efforts. NCIIA also supported smaller grants for student travel. Brown Entrepreneurship Program Ferrosity – 2002 Winner – 25K Award. Brown Venture Forum Developing New Products with Non-Traditional Resources March 2002 National Science Foundation Suuberg & Crawford preparing field manual for other universities Disclose successes and failures of our venture. Advanced Manufacturing Institute Engineering Entrepreneurship: A Unique Cooperation Between University and Industry, August 12-13, 2001, Kansas State Intellectual Property Student groups have filed provision patent applications.

22. Course Goal Assessment Definitely Somewhat Not at all 18 18 18 15 17 3 1 Compared to other Brown courses that you have taken, do you feel that this experience was: Provide entrepreneurial experience. Introduce issues of IP, technical marketing & business economics Provide an opportunity to develop written and oral communication skills More Valuable Comparable Less Valuable Provide challenging technical design experience Provide a genuine teamwork experience

23. Student Testimonies “The course bridged the gap between academics and real life. Theory, problem solving, and midterms are fine, but this course used other, more challenging ways to test the students…” “I think this is by far the best, most applicable, greatest functional class that I have ever taken…” “This is like the real thing! The professors created real life circumstances in a business environment to develop a technology and apply it to the market demand...” “It has been one of the more challenging and time consuming courses, but at the same time, more exciting and most rewarding of, probably all course that I have taken at Brown …”

24. Post Course • RI B-Plan Competition • NCIIA Competition • SBIR Programs • Angles / VCs / Family Education Is Our Product Independent Funding • Relative to Brown New Relationship • Relative to Sponsor

25. Summary • Engineers  Heavy Engin Course • Non-Engineers  Very Heavy Load Course is intensive for Students • 1.5 faculty required for 24 students • Time consuming/ long hours/ • latenights Faculty resource intensive • Enriching for students • Business experience • written/oral/presentation • skills • Enriching for faculty • Learn something new • Other benefits Amazing Opportunity

26. Acknowledgements Funded by the National Science Foundation (NSF): Action Agenda for Systemic Engineering Reform (EEC-9972938) National Collegiate Inventors & Innovators Alliance (NCIIA): Provided funding for two student teams to carry on their entrepreneurial efforts after the class, and also providing travel funds to students within the class to attend professional workshops and conferences Division of Engineering for providing funding to create the entrepreneurial headquarters