Division of Research

Welcome!Working with the

Private Sector

Kurt R. Moore, CFREDirector of Corporate and Foundation Relations

Stephen G. NappiInterim Director of Technology Transfer

April 26, 2007

Objectives

Types of fundersUnderstanding the private sectorMajor issues in dealing with the private sectorTypes of private fundingBenefits to the private sectorBenefits to FAUWhere to get assistance

Understanding the Private Sector

Types of Funders

Corporations

Industry Associations

Professional Associations & Societies

Research Institutes

“Other” Grant making Organizations

5 Basic Types of 4-Profit Businesses

Service

Manufacturing only (OEMs)

Manufacturing with their own sales/ distribution channels

Product developers

Brokers

Companies are from Mars,Universities are from Venus

Need to understand yourpartner

Need to understand time frames

Need to have realistic expectations

The University Business

The University Mission

Teaching

Research

Service

Economic Development

University Perspective

Everyone is an employee (except students)Employees are primarily professors

Research is self-directedResearch funds are personally solicitedResults are the property of the researcher

Academic publication is primary goalSometimes required to assign rights to UniversityIf so, entitled to share in revenue stream

May retain control of use/revision of worksOthers support work of faculty & needs of students

Corporations are in Business

To make money – maximize shareholder value – not to give money away

This is a legal requirement & a financial driver

To meet the need of the customer by delivering the right product/service at the right place at the right price

To be philanthropic in cases where it is profitable to do soTherefore, it is important to understand their drivers, their needs

Corporate Perspective

Everyone is an employeeWorks on assigned portions of a problemResults and Intellectual Property (IP) belong outright to employer

Royalty payments are rare to non- existentResults are secretWork is largely anonymousManagement controls use of work

Do not recognize that universities work with a different set of rules

Major Issues

Research vs. work for hire

Deadlines/university schedule

IP ownership

The ability to work with a company is often inversely proportional to

the size of the company.“Harder”

LargeMediumSmallStart-upUniversity “spin-out”

“Easier”

Yes, size matters!

…bigger companies often have deeper pockets.

“Richer”

LargeMediumSmallStart-upUniversity “spin-out”

“Poorer”

… but

Know Your Audience

They are NOT the NSF, NIH, NEA, DoD or usual government funding agencies

Remember when you are approaching them for money, they did not ask you for a proposal

When they approach us, they are looking for the “best deal” possible

Agreements must be mutually beneficial

Terms of agreements often must be negotiated

Initial contacts will be both applied technical/ creative people, but the decision makers are often business people.

Value of Private and Independent Sector Sponsors

Fund the cost of transforming research into products/services

Less red tape than government sponsor

They may be indispensable collaborators

Unique facilities and expertise

Evaluation and feedback of results

Source of new and recurrent wealth

Non-profits can hunt $ with you

Types of Funding

PhilanthropicContractualTechnology TransferPartnerships

Corporate Philanthropy

Types of DonationsCashGifts-in-kind (GIK)Gifts of servicesAccess to facilities

University Advancement and FAU Foundation usually handlePatent donations handled by Tech Transfer

Philanthropy: Corporate Benefits

Enlightened self-interestGood community relations/imageSupport strategic resourceCost effective support of research

Sponsorships = exposure to potential clientsEquipment grants

“Last year’s” modelInfluence future buyers

Tax benefits

Philanthropy: University Benefits

“Free” MoneyBased on trustNo contracts/deliverablesLeast amount of red tape

GIK provide additional resourcesAccess to corporate resources

FacilitiesEquipmentExpertise

“Non-competitive”

Contractual Funding

Legally binding agreementResearch, “best efforts”Not work for hire

IRAD or Government “pass through”fundsHandled by Division of Research

Sponsored Research – pre-awardContracts & Grants – post-award

Contracts: Corporate Benefits

Enlightened self interestCost effective R&D (universities cheaper)Tapping expertise on ad hoc basisSupport strategic resourcePilot programs

Good community relationsEnforceable milestonesQuid pro quoNo need for RFP process

Contracts: University Benefits

Additional research fundingAccess to company resourcesProposal process easierStill less red tape than government fundingCompanies ability to “sole source”makes the funding process less competitive

Technology Transfer

Based on Intellectual Property issuesUsually in the form of a license

Option to licenseLicenseMilestone and other payments

Personal benefit to inventorHandled by Office of Technology Transfer

Tech Transfer: Corporate Benefits

Enlightened self-interestUniversities are sources of innovationCost effective R&D (no basic research)Increased chance of successful product/ service developmentAccess to expertise

Faculty/industry ties

Tech Transfer: University Benefits

Enhances reputation of institutionUniversity research gets into the marketNew revenue stream

Royalties to college, dept, center, FAURCAdditional R&D funding

Additionally, benefits toInventor: royalties, status, research fundLocal community: economic developmentPublic: new products/services

Industry/University Partnerships

Focused effort Ad hoc or for specific projectMOU or similar agreementOther agreements as necessaryHunt money together

Formal PartnershipsHandled by VP for Research

Partnerships: Corporate Benefits

Enlightened self-interestPooling resourcesHunt money togetherReduce costs

May make it easier to license university IPEncouraged by programs like Phase 0, NSF, SBIR/STTR

Partnerships: University Benefits

Long-term relationshipMaster agreementMultiple awards and types of funding

PhilanthropicContractualLicensing potential

Access to company resources, staff, including network of partnersStudent job placement

Some Things to be Aware Of

Research oversight and compliance same as Federal requirements:

Human subjects, animal subjects, haz mat, radioactive materials, rDNA …

Better to address compliance issues before sending out written proposalCompliance issues may show up again when negotiating final contractUse “proposal approval form”

More Things to be Aware of

IP may be an important negotiating point in a grant or contract

Often not an issue with foundationsIncreasingly an issue with corporations & some nonprofits

Publication restrictionsCitizenship issuesExport controlsProduct vs. research

Services

Making initial research contacts/ searchesProject fundability assessmentProposal preparation

Philanthropic – Div. of AdvancementContractual – Div. of Sponsored Research

Commercializing faculty research/ creativity

Finding a Corporate Partner

For research support, philanthropic or contractualWe contact them via

Faculty contactsStaff knowledge of industryAlumni/previous contactsDatabase searches (NERAC, grants.gov, COS)Professional associations – AUTM, LES

They contact faculty or Office of Corporate Relations for

Faculty expertiseFacilities accessInternships/student projects

Finding a Corporate Partner

For commercialization of research and creativity, Office of Tech TransferFollows your leads/preexisting relationships (most productive)Targets and contacts commercial partners Circulates “opportunity descriptions”Companies/brokers/entrepreneurs come to us for needed capabilitiesYou/we identify SBIR/STTR partnersYou/we identify start-up opportunities

FAU Support

Forms - approvals, budgets, etc.: www.fau.edu/research/osr/resources.php

Facts for forms:www.fau.edu/research/osr/formfacts.php

Compliance issues:www.fau.edu/research/rcs/index.php

© IP issues: www.fau.edu/research/ott

Philanthropic support: www.fau.edu/advancement/corporate

Corporate proposal support: www.fau.edu/research/corporate

$ When draft budget is ready, involve Sponsored Research early in the process

When Funding is Offered

Know who is negotiating your Agreement

University Advancement (philanthropic)Sponsored Research (contracts)Tech Transfer (license-based awards & grants)

We won’t negotiate against youBut you can’t give away the store

Stay involved and keep appropriate office informed

Philanthropic or Contractual Funding

Kurt R. Moore, CFREDirector of Corporate & Foundation

Relations380A Admin Bldg kmoore34@fau.eduwww.fau.edu/research/corporate orwww.fau.edu/advancement/corporatePhone: (561) 297-4064Fax: (561) 297-2141

Technology Transfer

Stephen G. NappiInterim Director of Technology Transfer218 Admin Bldgsnappi@fau.eduwww.fau.edu/research/ottPhone: (561) 297-1165Fax: (561) 297-2141

Questions ?

GOODLUCK!