Commercialization Forum

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• Commercialization Forum
• The Role of Universities
• July 23, 2007

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Innovation, Higher Education, andthe
Competitiveness of RegionalEconomies

• Prof. Richard K. Lester
• Industrial Performance Center
• Massachusetts Institute of Technology

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Focus on Universities as Engines of Local
Economic Development
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• Universities should embrace their role
• as actors in their local economies.
• The conventional view of this role is
• too narrow.
• A one-size-fits-all approach to
• economic development is common
• but not wise.
• Universities need to approach
• economic development strategically.

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• Four pathways of regional
• innovation-led growth
• Indigenous creation of new industry
• Transplantation of new industry into region
• III. Diversification of existing industry into
  new
• IV. Upgrading of existing industry

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South Dakota State University
An Economic Development Invention Engine David
L. Chicoine, President South Dakota State
University
Science Tech Econ Development Mission To
broaden and strengthen the development of the SD
and US economies through the effective
management, transfer and commercialization of
research derived technologies and intellectual
properties, supporting the creation of jobs,
careers, businesses, and wealth, while fostering
the continuous advancement of the Universitys
premier education and research programs.
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Multiple University Rolesin the Local Economy

• Forming/accessing networks and stimulating
  discussion of industry development pathways
• Influencing the direction of search processes
• Meetings and conferences
• Hosting standard-setting forums
• Entrepreneurship centers mentoring programs
• Alumni networks
• Personnel exchanges (internships, faculty
  exchanges, etc.)
• Industrial liaison programs
• Visiting committees
• Curriculum development committees
• Creating the built environment to support this

• Undergraduates
• Graduates
• Mid-career
• Executive

Providing Public Space
Educating People
Creating Codifiable Knowledge
Problem- solving for Industry

• Contract research
• Cooperative research with industry
• Technology licensing
• Faculty consulting
• Providing access to specialized instrumentation
  and equipment
• Incubation services

• Publications
• Patents
• Prototypes

Prof Richard K. Lester, MIT Local Innovation
System project 12-13-05
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Conditions for Technology-Based Economic Growth

• A large, high-quality research base/world-class
  science
• Effective technology transfer and
  commercialization
• Fields of research matched with the needs and
  opportunities of the regional economy
• A commercial sector with scale, network
  connectivity, and entrepreneurial attributes
• Experienced start-up managerial talent
• Right-staged investment capital (early-stage)
• Mid-sized large corporations for partnerships
• Flow of highly skilled, talented people

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Established Companies
Faculty Inventors
High-TechEconomicDevelopment
Invention Disclosures
Patent Applications
Licenses Executed
Research Discovery
Start-up Companies

• Research Foundation of Tech. Commercialization
• Faculty and students
• Funding for research
• Facilities for research

Start-Up Services Early Stage Capital
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Innovation Campus
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Proposed University Center Science Technology
ParkGEAR CenterSioux Falls, SD
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Pathways from the Lab to the Market
UNIVERSITY RESEARCH HAS TWO COMMERCIAL PATHS
LICENSE FOR ROYALTY
University IP Based or Significant University
Interest
University Economic Benefit Probable, Economic
Benefit Varies
NEGOTIATE LICENSE
UNIVERSITY RESEARCH
THE GAP
IP IDENTIFICATION DEVELOPMENT
TECHNOLOGY DEVELOPMENT
START-UP
EARLY VENTURE
MATURE VENTURE
VENTURE DEVELOPMENT PROCESS
University IP Based or Significant University
Interest
University Economic Benefit Likely, Economic
Benefit Varies
VENTURE DEVELOPMENT PROCESS REQUIRES BRIDGING THE
GAP
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University Technology Transfer Productivity
2.4M/per disclosure
105,378 Disclosures
257 B Research
49
20
51,893 Patent Applications
Assessment
52
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27,078
21,151 Active Agreements
products
Commercialization
2.8
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2,981 Start-Ups
platforms
AUTM Licensing Surveys FY95- FY04
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Commercialization Gap Exists Between Research and
Products
UNIVERSITY RESEARCH
TECHNOLOGY DEVELOPMENT
EARLY VENTURE DEVELOPMENT
MATURE VENTURE DEVELOPMENT
STAGE
THE GAP
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Start-Up Projects Investment Model
Development is staged to drive value

• Start-Up Services, Inc. Launch Projects
• Sign the license for the technology
• Management
• Strategic and financial plan
• Product development
• Market validation
• Seed capital

• Tech Management Office
• Initial screen
• Patent investment

Start-up projects seek early-stage commercial
capital
Research Discovery
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Example Projects Traveled Through the Pipeline
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Extensive Additional Developmental Activity is
Underway

• Semprius Stretchable and flexible circuitry
• Fluensee RFID for logistics and asset tracking
• Dzymetech - DNA-based sensing
• Advanced Biofuels Bio-fermentation of butanol,
  other advanced fuels
• Advanced Diamond Technology Ultrananocrystalline
  diamond coating
• Transplan, Inc Device to extend viability of
  harvested organs
• Cbana MEMS and fluidic micro-systems for
  airborne detection
• One Llama - Advanced audio content recommender
  system

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Progress in South Dakota

• Rural Technologies, Inc. (RTI) Advanced
  technologies for animal health (monoclonals,
  testing, animal research models)
• PhotoBioMed Corp. Strong and safe medical
  adhesives
• Chronix Biomedical, Inc. Medical diagnostic
  technologies for early diagnosis of chronic
  illnesses and infectious diseases (San Jose, CA
  company located R D in Brookings)
• American Science Technology (AST) Chicago
  firm with R D in Brookings working on
  Micro-Electrical-Mechanical systems (MEMES) based
  sensors for machine parts under DoD contract