Professor S. Kim SokoyaMiddle Tennessee State UniversityPresented at International Forum of Mechanical EngineeringNovember 2010Jyvaskyla, Finland

Outline of Presentation• Importance of Topic• Theoretical foundations for the topic (R2B)• Identifying major stakeholders and their

respective roles. • Major initiatives in the United States

Environment• Problems of Technology Transfer• Examples of Research Creating Business• Policy Implications for turning research into

the marketplace

Principle

Importance of TopicTraditionally research has resulted into great

products that have contributed immensely to our quality of life.

This is true in many industries, including Agriculture , Electronics, Construction and Healthcare industries to name a few.

E.G. LCD panels, MRI machines and Pacemakers

Importance of Topic• Knowledge-based economy, emphasizes the

importance of ideas in the innovation process and creating business.

• Long term sustainability of companies and nations is driven by innovation

• The speed at which idea is generated and transferred to the marketplace is also getting more important

• In the US, transferring ideas to create business is also increasingly becoming an important source of funding, given the reduction of funds from the government.

Theoretical Foundations for Research Creating Business (R2B)The logical starting point especially from a

Business perspective, R2B, will find its theoretical foundation in Porter’s Diamond Theory.

Porter’s Diamond TheoryThe Role of Demand ConditionsThe Role of the Government The Importance of Clusters (Related and

Supporting Industries)

Identifying major stakeholders and their respective roles

Problems Of Technology TransferDiluting the primary mission of the UniversityCompanies having undue influence on college

campusIntegrity of research may be compromised.

Major initiatives in the United States Environment

• The United States Government and many states government have facilitated the emergence of Regional Innovation Clusters

• Efforts have been made to facilitate not only the protection of Intellectual Property but also to facilitate the process of making marketable ideas become viable businesses.

• The private sector has also participated in this mutually beneficial process.

Major Initiatives in the United States EnvironmentThe Bayh- Dole ActThe Small Business Administration Center for International Business Education

and ResearchNational Business Incubators AssociationRegional Innovation ClustersTennessee Small Business Development

Centers

Regional Innovation ClustersIndiana Life Science Cluster

Resulted 1n a 7.2% job growth in the areaPuget Sound Video Game Industry Cluster

$4.2 billion in output over 50,000 jobs in the area.

Biomedical Cluster in N.E. Ohio600 companies in the area with 7.4% growth

rate Development of Automobile Plant clusters in

Alabama/Tennessee

Examples of Research Creating BusinessArbor Networks

An online security company founded in 2000 by a Prof and a student from University of Michigan. They provide security solutions for broadband network. Headquarters now in Massachusetts.

A couple of years ago it was named one of the 20 fastest growing companies in the US , has about 70% market share in global network security .

Recently acquired by Tektronix Communications

Initial funding from NSF and DOD

Examples of Research Creating Business

Martek Biosciences develops and sells products derived from microalgae, including nutritional oils contained in infant formula. Helps in development of central nervous system.

Its product is in about 80% of instant baby formula market worldwide, with 0ver $330 million in sales

Worked with incubator from University of Maryland, College Park

Examples of Research Creating BusinessSolar Tech Harnessing the Power of the SunByron Zerphy, founder and president of Solar

Technology Inc., had an idea. Drawing on his electrical engineering and

computer science background, Byron designed and built the world’s first arrow board that derived 100% of its energy requirements from the sun

Zerphy was helped by the National business Incubators Association, a private sector initiative.

Examples of Research Creating Business

Zycron is a customer-focused information technology services and solutions firm headquartered in Nashville, TN. Since 1991, Zycron has offered IT solutions to a broad client base and today is the primary provider for numerous Fortune 500 companies.

Sponsored By TSBA

Policy Implication for R2B The University as an economic engine for

innovationPrivate and Public Sector partnershipDevelopment of multinational innovation

clusters and International cooperation.

Thanks for Listening Q & A Period