industry-science interface: are there successful models? · industry-science interface: are there...

INDUSTRYINDUSTRY--SCIENCE INTERFACE:SCIENCE INTERFACE:ARE THERE SUCCESSFUL MODELS?ARE THERE SUCCESSFUL MODELS?

C. Kumar N. PatelUniversity of California, Los Angeles

Benchmarking Industry-Science RelationshipsJoint German-OECD Conference

Berlin, GermanyOctober 16-17,2000

October 17, 2000 Kumar Patel 2

MY BIASES (DISCLOSURE)

Ø32 years at Bell Labs

Ø7+ years at University of California, Los Angeles

ØNow, founder of two startups (CEO of one)


Industry-University Connections

ØBenefits:vFor universities

- New funding for research- New opportunities for graduates- New directions for researchvFor industries

- Early access to research results- Early access to graduates- Access to intellectual property


Industry-University Connections

ØRisks:v For universities

- Long term fundamental research could be jeopardized- Intellectual property overemphasized- Research funding fluctuations with industry fortunesv For industries

- Uncontrolled part of the innovation chain- Overhead associated with managing both the process and outcomes of extramural research


SITUATION IN THE U.S.SITUATION IN THE U.S.

ORGANIZED RESEARCHORGANIZED RESEARCHThe Government should accept new responsibilities for promoting the flow of new scientific knowledge and development of scientific talent in our youth. These responsibilities are proper concern of the Government, for they vitally affect our health, our jobs, and our national security.

Vannevar Bush (1945)


U. S. SCIENCE U. S. SCIENCE –– CURRENT STATUSCURRENT STATUS

Ø Defense base for science diminishingØ Economic growth and health becoming principal drivers

along with the search for new knowledgeØ Diminishing industrial basic researchØ Increasing emphasis on “science based” product

developmentØ Demand for identifiable connection between support for

science and social benefitsØ Bayh-Dole Act of 1980 (who owns the IP) and anecdotal

evidence of its impactØ Continuing discussions about university-industry

partnerships


PARTNERSHIPPARTNERSHIP

An association of two or more people who contribute money or property to carry on joint business and who share profits or losses in certain proportion.

OED


WHAT THE UNIVERSITY BRINGS WHAT THE UNIVERSITY BRINGS TO THE TABLETO THE TABLE

PEOPLE(Education and Training)

PUBLICATIONS(Knowledge Creation and Dissemination)

PATENTS & COPYRIGHTS(Intellectual Property and Value Generation)

(The Three P’s)


WHAT THE INDUSTRY BRINGS TO WHAT THE INDUSTRY BRINGS TO THE TABLETHE TABLE

ØAccess to world class and important problemsØAccess to other activities of the

innovation cycle (development, engineering, manufacturing,….)ØAccess to a different cultural thinkingØWays of synthesizing knowledgeØResearch funding at the margin


DRIVERS IN THE U.S. FOR TECHNOLOGY DRIVERS IN THE U.S. FOR TECHNOLOGY TRANSFER (CONVERSION AND ADOPTION)TRANSFER (CONVERSION AND ADOPTION)

Ø Conventional Wisdom:Congressional demands and societal expectationsQuick fix for international competitiveness problemsReplacement for lost federal fundingVisions of financial windfall (result of Bayh-Dole Act)

Ø New Wisdom:Creating a demand for university productsCreate real partnerships with industryJob and wealth creation (Universities as Engines of Economic Growth)Creating constituencies for research and higher education


TECHNOLOGY TRANSFER FROM TECHNOLOGY TRANSFER FROM UNIVERSITIESUNIVERSITIES

ØPeople (graduates, post-docs, faculty)ØPublicationsØConsultingØResearch partnershipsØLicensing of intellectual property -

small company Vs. large companyØStartup companies


BARRIERS TO PARTNERSHIPS BARRIERS TO PARTNERSHIPS AND PROGRESSAND PROGRESS

Ø Intellectual property issuesØ Barriers within university: Internal reward

system; fear of contaminationØ Barriers within industry: Fear of loss of control,

not-invented-here syndrome, etc.Ø Mismatch of motives: conceptual vs. incremental

advancesØ Lack of appreciation of the value of diverse ways

of thinkingØ Bridge the valley of deathØ Control, Control, Control (on all sides)


BRIDGE THE VALLEY OF DEATHBRIDGE THE VALLEY OF DEATH

Ø Deploy new technology in existing markets and existing technology in new markets (industry seeks “unfair advantage”)

Ø For new technology, industry needs innovationØ Innovation (the 1:10:100 rule of investments)

ØDiscoveryØ InventionØ PrototypeØ EngineeringØManufacturingØMarketing and SalesØ Service


ISSUES IN PARTNERSHIPS: ISSUES IN PARTNERSHIPS: INNOVATION

University Paradigm

Ø Process driven (curiosity driven)

Ø Conceptual breakthroughsØ Discontinuity in

technology (killer technology)

Ø Technology displacementØ New Markets

Industrial Paradigm

Ø Outcome driven (target driven)

Ø Incremental advancesØ 5-10% improvements year

after year

Ø Capture market shareØ Maintain a competitive

position


TWO QUESTIONSTWO QUESTIONS

ØHow do we measure success?ØAre there any successful examples?

A. YESB. NOC. MAY BE


MEASURES OF SUCCESS IN MEASURES OF SUCCESS IN TECHNOLOGY TRANSFERTECHNOLOGY TRANSFER

Ø QUANTITATIVE MEASURES:Ø Amount of measurable intellectual property: Patents Ø Number of patent licensing agreementsØ Income derived from licensing

Ø QUALITATIVE MEASURES:Ø Level of partnerships between the universities and

industriesØ Relationship between university research people and

industry engineers (who talks to whomØ “Long term” exchange of people


PARTNERSHIP EXAMPLESPARTNERSHIP EXAMPLES

Ø In the U.S. private universities do better than the public ones

Ø Smaller universities do better than the larger ones

Ø New technology industries do better than those based on older technologies

Ø Medium sized companies do better than large ones (comparisons between large &small)

Ø Industries with in-house R&D do better than the ones that don’t

Ø Partnerships prosper when the economy is doing well


EXEMPLARY UNIVERSITIESEXEMPLARY UNIVERSITIES

ØMIT, Stanford, University of RochestervCharacteristics:lOverall policies no different from the rest, e.g., who

owns the IPlLarge portfolio of IPlA handful of patents make all the money (statistics: 1

out of >1000 truly valuable)l IP organization that is focused on getting technology

outlEquity in place of licensing feeslFaculty that believes in the value of useful

technologylEntrepreneurial facultylSystem that tolerates faculty diversity


UNIVERSITIES SEARCHING FOR SUCCESS UNIVERSITIES SEARCHING FOR SUCCESS IN TECHNOLOGY TRANSFERIN TECHNOLOGY TRANSFER

Ø Many public universities in the U.S.v Characteristics:l Grossly overvalue the power of IP over market forces and

people interactionsl Delays in licensing (lack of recognition of being first-to-

market with an innovative product)l Lack of recognition that IP that sits on the shelf becomes

worthless quickly (product cycle times)l Quick to set rules and then let minor functionaries

implement theml Avoiding conflict of interest rather than managingl Lack of flexibility - one size does not fit alll Focus on income stream rather than empowering faculty to

be entrepreneursl IP and licensing organizations set up to run at a profit

(and not as a service to faculty)


STARTUPS ARE BETTER STARTUPS ARE BETTER EXAMPLESEXAMPLES

ØUniversities in the US do an excellent job of facilitating new startupsØExamples abound:

ØAmgenØBroadcomØPairgainØOrtelØGenetech

ØSuccessful startups reward universities handsomely


THE GOOD, BAD, AND THE UGLYTHE GOOD, BAD, AND THE UGLY

ñGOOD: New opportunities; Bigger bang for the buck; Contribute visibly to economic growth of the nation; Create lasting constituencies for science and technology

ðBAD: Lack of coherent policy or vision; Random and uncorrelated activities; Looking for near term advantage Vs. long term growth; Continued growth of regulations

òUGLY: Selfish motives; Local Vs. global optimization


MESSAGE TO ACADEMIC SCIENTISTS MESSAGE TO ACADEMIC SCIENTISTS IN THE 21ST CENTURYIN THE 21ST CENTURY

Ø Build partnerships with industryØ Problem driven research as well as curiosity

drivenØ Address tough problems rather than handy

problemsØ VisionØ AccountabilityØ Set priorities Ø Time and costs do matterØ Communicate knowledge (not just info)


MESSAGE TO INDUSTRIESMESSAGE TO INDUSTRIES

Ø Fundamental research does not grow on trees in the wild

Ø Nourish those who produce the seed cornØ Build partnerships with fundamental research

performersØ Vision of the future of the company, industry,

and the societyØ Range of time horizonsØ Rearranging deck chairs will not prevent the

Titanic from sinking


MESSAGE TO GOVERNMENTMESSAGE TO GOVERNMENT

ØGet out of the way of innovatorsØRegulations have benefits as

well as costsØPatent system is in a messØAll laws have unanticipated

consequences


ARE THERE SUCCESSFUL ARE THERE SUCCESSFUL EXAMPLEEXAMPLE

C. MAY BEØ There are successful processesØ Match processes with goals and expectations of

the facultyØ Do not kill the goose that lays the golden eggØ Partner with “local” industriesØ Flexibility is the keyØ Basically, a people problem!Ø Beware of wishing too much - wishes may come

true (law of unanticipated consequences)

industry-science interface: are there successful models? · industry-science interface: are there...

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