1. RESEARCH AND DISCOVERYSUB-COMMITTEEKICKOFF MEETINGFebruary 28, 2013 | 8 a.m. to noonLSU Ag Center | 214 Efferson Hall

2. Meeting Information All articles and presentations will be posted on www.lsu.edu/LSU2015 This meeting is streaming live at http://www.lsuagcenter.com/RDSC 2 3. WELCOMEDr. William Jenkins, Interim President, LSU System 4. CHARGE AND INTRODUCTIONSDr. Jim Firnberg, Chair, Research and Discovery Sub-Committee 5. Opening Remarks Beginning today and throughout our process wewill look at why higher education is undergoingtransformation across the country. Change is a constant, but today there is a newnormal in many institutions. We look forward to hearing from you and from ourguests and online public comments.5 6. Research and DiscoverySub-Committee Charge Our sub-committee will make recommendations on: Current strengths Strategic priorities and goals Joint research proposals and projects Collaboration incentives Productivity and accountability Technology transfer 6 7. IntroductionsPlease introduce yourself and in two to threeminutes, tell us about yourself and your relevantexperience and background.7 8. BRIEF ORIENTATION TO THETRANSITION ADVISORY TEAMPROCESSDr. Christel Slaughter, SSA Consultants 9. Transition Advisory Team Objectives Develop a vision for a world-class university; Identify elements critical to remainingcompetitive in the higher education environmentof the future; and Recommend best-practice organizational modelsfor a multi-campus flagship university.9 10. Sub-Committee Leadership Academic Sub-Committee Dr. William Bill Jenkins Dr. Lester W. Johnson Finance and Revenue Sub-Committee Mr. Clarence P. Cazalot, Jr. Mr. G. Lee Griffin Operations and Technology Sub-Committee Mr. William M. Comegys III Mr. William L. Bill Silvia Research and Discovery Sub-Committee Dr. James W. Jim Firnberg Student Experience Sub-Committee Lt. Gen. Russel L. Honore Ms. Carroll W. Suggs Legal and Regulatory Advisory Group Dr. James W. Jim Firnberg Mr. W. Shelby McKenzie10 11. Organizational ChartLSU Board of SupervisorsTransition Advisory Team Legal and Regulatory Advisory GroupOperations andAcademicFinance and RevenueResearch and Discovery Student ExperienceTechnologySub-CommitteeSub-CommitteeSub-Committee Sub-CommitteeSub-Committee11 12. Task ForcesFinance and Revenue and Operations and Technology Sub-Committees Commercialization and Technology Transfer Streamlining Procedures, Rules, and Regulations Technology Administrative Services Revenue Generation External Affairs12 13. Sub-Committee Design Five topic specific sub-committees (Academic, Finance andRevenue, Operations and Technology, Research andDiscovery, and Student Experience) Sub-committees will gather information from subject-matter experts,research studies, and other resources to develop best practicesrecommendations by focus area to the Transition Advisory Team Each sub-committee will be chaired or co-chaired by TransitionAdvisory Team members Other sub-committee members will be appointed throughrecommendations provided by each campus Sub-committee activities will begin in January 2013 and be completedby June 2013 One Legal and Regulatory Advisory Group will providetechnical advice and support to the five sub-committees13 14. ProcessJANUARY 2013Sub-Committees Staffed and Activities Scheduled JANUARY to MAY 2013 Transition Advisory Team and Sub-Committees Execute Activities MAY 2013 Sub-Committees Deliver Reports to Transition Advisory Team MAY to JULY 2013 Transition Advisory Team Develops Report of Recommendations JULY 2013 Transition Advisory Team Presents Final Report of Recommendations to Board of Supervisors 14 15. Sub-Committees and Meeting Format Each sub-committee is expected to meet at least twiceand will be led by two of the co-chairs. During these meetings, national and local subject-matterexperts will provide testimony; reports and findings willbe discussed; and input from the public will be heard. Please let us know in advance if you would like toprovide testimony or recommend a speaker. Information gathered from your sub-committeemeetings will become part of the Final Report to besubmitted to the Transition Team and ultimately, the LSUBoard of Supervisors.15 16. Public Records and Open Meeting Laws In an effort to comply with the Public Record andOpen Meeting Laws, we will subscribe to thefollowing practices: Announce all meetings and post the agendas at least24 hours in advance. Allow public comment at all meetings. Provide a facilitator and scribe to ensure thatagendas are followed and meeting minutes areposted to the website. All emails and other documents are considered to bepublic records.16 17. WHY MUST HIGHEREDUCATION UNDERGOTRANSFORMATION?Dr. Christel Slaughter, SSA Consultants 18. Disruptive Transformations Significant periodic transitions that are highlydisruptive to an industry or economic sector Brought on by: new technology, consumerneeds/demand, and cost pressures Many examples in our lifetime include: Media Financial institutions Healthcare 18 19. Higher Education TransformationWhy?1. Cost Trend is Not Sustainable Todays institutions of higher education are extraordinarily complex organizations with significant resources tied up in overhead and administrative costs. Three decades of 6 percent to 7 percent annual price increases have put college beyond the means of most families (without substantial grants and/or resorting to substantial student loans).**Deloitte: Disruptive Innovation Case Study: Transforming Higher Education 19 20. Higher Education TransformationWhy?2. Consumer Demand is Growing and Changing The high school diploma has been supplanted by the college degree as the ticket required for economic advancement. The income advantage offered by a college degree is double what it was a generation ago.* The number of non-traditional students is growing. Individuals are in need of affordable paths to qualifications necessary for economic advancement, resulting in a untapped market. 20*Stuart M. Butler: The Coming Higher-Ed Revolution 21. Higher Education TransformationWhy?3. New Technology Online learning offers significant potential for highereducation to transform its basic business model. New technology is increasing the number of disruptiveentrants in the higher education market such as: DeVry Western GovernorsUniversity MITs OpenCourseware 21 22. LSUs Transformation Imperatives Refocus energy and resources on academics Develop and leverage alternative revenue sources Serve the economic and workforce developmentneeds of the state and students Improve quality through innovative deliverymodels and collaborative research 22 23. CURRENT TRENDS INRESEARCH ATAMERICAN UNIVERSITIESDr. James Duderstadt, President Emeritus University of Michigan 24. BREAK 25. RESEARCH AT PENNINGTONBIOMEDICAL RESEARCH CENTERSteven B. Heymsfield, MD, Executive Director 26. PRESENTATION AND DISCUSSIONLSU SYSTEM METRICS: RESEARCHAND TECHNOLOGY TRANSFERNicole Honore, LSU System Directorof Research and Economic Development Initiatives 27. Nicole Baute HonoreLSU System Director of Research & EconomicDevelopment InitiativesFebruary 28, 2013 28. Overview The National Research Landscape Research Activity in the LSU System The National Commercialization Landscape Tech Transfer Activity in the LSU System Implications for Economic Impact of LSU 29. Measuring Research Activity The National Science Foundation (NSF) conducts an annualsurvey (referred to as HERD) that is considered thepremier measure of university research and development(R&D) activity. The HERD captures actual annual university expenditures onR&D from all sources of funding. The HERD has very specific directions anddefinitions, increasing its reliability and comparability. Expenditures are NOT the same as Awards. Major categories are total, federal, state, industry 30. National R&D Expenditures FY2011:Top 25 vs. All LA University R&D (NSF, dollars in thousands)$2,500,000$2,000,000$1,500,000$1,000,000 $500,000 $0Scale Matters!! 31. National University Research LandscapeNSF HERD FY2011:$65 billion academic R&D expenditures$41 billion from federal sourcesALL U.S. Universities LSU System 63% federally funded 42% federally funded Total R&D $$ change Total R&D $$ change One year (FY10-11): 6% One year (FY10-11): -1% Five year (FY06-11): 31% Five year (FY06-11): 14% Federal R&D $$ change Federal R&D $$ change One year (FY10-11): 9% One year (FY10-11): 1% Five year (FY06-11): 32% Five year (FY06-11): 21% 32. LSU System Annual R&D Expenditures (without UNO, dollars in thousands)$450,000$400,000$350,000$300,000$250,000Total$200,000Federal$150,000$100,000 Avg. Fed as % of Total : 38% $50,000 $0 33. LSU System Total R&DExpenditures, By Campus (dollars in thousands)$450,000$400,000$350,000$300,000 HSCS$250,000 HSCNO$200,000 LSUS$150,000 PBRC$100,000 LSU AG LSU A&M $50,000 $0 34. LSU System Federal R&DExpenditures, By Campus (dollars in thousands)$180,000$160,000$140,000$120,000 HSCS$100,000 HSCNO $80,000 LSUS $60,000 PBRC LSU AG $40,000 LSU A&M $20,000 $0 35. LSU A&M Peer Comparison:FY2011 TOTAL R&D Expenditures (NSF, dollars in thousands)$800,000$700,000$600,000$500,000$400,000$300,000$200,000$100,000 $0 36. LSU A&M Peer Comparison:FY2011 FEDERAL R&D Expenditures (NSF, dollars in thousands)$400,000$350,000$300,000$250,000$200,000$150,000$100,000 $50,000 $0 37. Major Sources of LSU System R&D Expenditures(dollars in thousands)180,000160,000140,000120,000 2006-07100,000 2007-08 80,0002008-09 2009-10 60,000 2010-11 40,0002011-12 20,000 0FederalState and localIndustryGovernmentgovernments 38. LSU System Faculty Employment1,4001,2001,0002005-06 8002006-072007-08 6002008-092009-102010-11 4002011-122012-13 200 0Professor Associate Assistant ResearchProfessor Professor Associate 39. Measuring Technology Transfer Technology transfer refers to a broad set of activities and agreements that help move inventions along the pathway from concept to commerce The federal Bayh-Dole Act of 1980 is the legal foundation of most university tech transfer activity The Association of University Technology Managers (AUTM) conducts an annual survey of metrics which capture certain activities of university tech transfer 40. Technology Transfer:Mythvs. Reality Universities make a fortune Half of institutions made less with their inventions.than $2 million in 2011 Licenses always go to Nearly 70% of licenses go tosmall companies & start-ups large, established companies. Only about 15% of licenses Most disclosures should beare for inventions that are turned into start-ups.broad enough to form thebasis of a start-up. All licenses make lots of Only 0.5% of licenses make money for the university. more than $1 million/yr. 41. National Commercialization LandscapeBenchmarks for Technology Transfer Activity 1 invention disclosure per ~$2.5 million in R&D ~25% of disclosures eventually get licensed 1 start-up company per ~$100 million in R&D ~47% of legal expenses reimbursed Patent apps filed on ~60% of new disclosures Only 0.5% of licenses generate >$1 million Average ROI for Universities ~ 3.3% Source: Speaker Analysis of AUTM FY2011 Repot 42. LSU System Invention Disclosures Actual vs. Expected Invention Disclosures (1 per every $2.5 million in R&D expenditures)180160140120 Actual100Disclosures 80Expected Disclosures 60 40 20 02002 2003 20042005 2006200720082009 2010 2011 2012 43. LSU System InventionDisclosures, by Campus 80 70 60 50LSU A&M Ag Center 40 Pennington 30HSC-NO HSC-S 20 LSU-S 1002002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 44. LSU System Patent Activity806040Filed20Issued 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 45. LSU System Licenses & OptionsSigned, by Campus353025HSC-S20HSC-NOPennington15Ag Center10LSU A&M 5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 46. Start-up Companies based uponLSU System Inventions(expect 1 for ~$100 Million R&D)7654Actual3 Expected2102002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 47. LSU System License Income$13,000,000$12,000,000$11,000,000$10,000,000 $9,000,000 $8,000,000HSC-S $7,000,000 HSC-NO $6,000,000 $5,000,000Pennington $4,000,000Ag Center $3,000,000 LSU A&M $2,000,000 $1,000,000$02002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 48. LSU System License Income, ByCampus, ALL Campuses $12,000,000 $11,000,000 $10,000,000$9,000,000$8,000,000$7,000,000LSU A&M$6,000,000Ag Center$5,000,000Pennington$4,000,000$3,000,000HSC-NO$2,000,000HSC-S$1,000,000 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 49. LSU System License Income, By Campus,without Ag Center$700,000$600,000$500,000$400,000LSU A&M$300,000Pennington$200,000HSC-NOHSC-S$100,000 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 50. Return on Investment (ROI):LSU System License Income as % of R&D3.50%3.00%2.50%2.00%1.50%1.00%0.50%0.00%2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 51. LSU System Campuses:Legal Fees Spent & Reimbursed$1,200,000$1,000,000 $800,000 $600,000 Expended $400,000Reimbursed $200,000 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 52. LSU System Campuses:Legal Reimbursement Percentage180%160%140%LSU A&M120%Ag Center100%Pennington80%HSC-NO60% HSC-S40% NationalAverage20% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 53. LSU System Campuses:Tech Transfer Office Staffing Levels(System total FTE in white box, year office launched in legend)54 LSU A&M (1985)Ag Center (1986)3 Pennington (2000)HSC-NO (1999)2 HSC-S (2001)LSU-S (2006)10 2008200920102011 2012 54. University Research & Economic Impact Research activity is a fundamental input supporting the mission of aland grant institution Knowledge and innovation are outputs of this research activity These outputs can be transferred out through multiple channels: Student internships & corporate hiring of graduates Publications & presentations Faculty consulting, collaboration & visiting appointments Industrial research partnerships Licensing inventions to existing or start-up businesses Strengthening LSUs research enterprise, and thus its economicimpact, requires sustaining and increasing the activity flowthrough this R&D pipeline of inputs and outputs. 55. A CLOSING QUESTION:What must be done to sustain and enhance the inputs into the LSU R&D pipeline to increase both the volume and variety of outputs, andthus expand LSUs economic impact? 56. PUBLIC COMMENTS 57. Save the DateNext Meetings: March 11, 1 to 4 p.m. New Orleans, Location TBD April 1, noon to 4 p.m. LSU Ag Center, 214 Efferson Hall 58 58. ADJOURNMENT