University-Industry Relationship

Dr. Shahram Yazdani

University-Industry Relationship

Shahid Beheshti University of Medical SciencesSchool of Medical Education

Strategic Policy Sessions: 10

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From Science to Technology

For a very long time there was believed to exist a continuum stretching from very basic scientific research, through applied research and technology, to economic growth and national prosperity (Narin & Olivastro, 1992).

However, reality has shown that things are not that straightforward.

Throughout the years, different ways of modeling the interaction between science and technology have emerged from literature.

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Linear vs. Networked Model

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Industry-Science Relations

Science and technology policy in recent years has devoted much attention to fostering Industry-Science-Relations (ISR) and in several countries, policy initiatives in this realm have been launched.

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Why Universities Do Not Do What Companies Do and Why Companies Do Not Do What Universities Do

1. Uncertainty: Uncertain outcome of basic research.

2. Inappropriability or ‘nonmarketability’: Some results from basic research are not appropriable, because they occur at such fundamental levels of scientific analysis.

3. Spillovers: Some results from basic research can easily spill over to competitors in the same line of business that the results may actually help the competitors more than they help the company that conducted the initial research.

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Project Hindsight

The study assessed the contribution of science and technology to the development of weapon systems. Analysis of twenty weapon systems yielded nearly 700 research and exploratory development events. Only 8% of them were found to be

'science events', compared with 92% 'technology events'.

Only 4% of those 'science events‘ came from pure or 'curiosity-oriented' research.

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TRACES

As a reaction to these negative findings, the National Science Foundation launched a study under the acronym “TRACES”.

They traced critical research events leading to five major technological innovations (magnetic ferrites, the video tape-recorder, the oral contraceptive pill, the electron microscope and matrix isolation) over a period of 50 years preceding the innovation.

Their findings show that important innovations often result from the interaction of several previously unconnected streams of scientific and technological activity.

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TRACES

Mansfield (1991) has added a quantitative underpinning to this positive relationship between basic science and technological development.

He focused on research performed in the 15 year period preceding the innovation under consideration.

Using a sample of 76 US firms in seven industries, he estimated that 11% of industrial innovation would not have occurred, or would have occurred with great delay, without the contribution of academic research.

Of the process innovations 9% would not have been developed in time without academic research.

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Intensity of The Science-Technology Linkage

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Industry – Science Relationship

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University Missions

The First Academic Revolution

late 19th century; ongoing

The Research University

research groups and centers The Second Academic Revolution

20th century; ongoing

The Entrepreneurial University

new firms and networks

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Forward Linear Start from research

question in discipline Transfer

serendipitous result to industry

Applied research Product development

Reverse Linear Start from problem in

industry or larger society

Find technology; adapt for solution

Conduct new research, applied or basic

First Step:Bi-Directional Linear Models

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Supports

Main Role

SeedFinanceSeed

FinanceStart-up

Venture CapitalStart-up

Venture CapitalExpansion


Venture CapitalMezzanine

FinanceMezzanine

Finance

ProductProduct

ResearchFoundersResearchFounders

AngelInvestors

AngelInvestors

VentureCapital Firm

VentureCapital Firm

Corporate InvestorsBanks


IPOAcquisition

IPOAcquisition

ResearcherResearcher InventorInventor EntrepreneurEntrepreneur BusinessmanBusinessman

ResearchGrants

ResearchGrants

Business Plan DevelopmentBusiness Plan Development

Start-up CoachingStart-up CoachingSpecialized Technical AdviceSpecialized Technical AdviceFacility ManagementFacility Management

PropositionalKnowledge


PrescriptiveKnowledgePrescriptiveKnowledge

BasicResearch

BasicResearch

AppliedResearchApplied

ResearchProduct Design &

DevelopmentProduct Design &

Development Manufacturing & MarketingManufacturing & Marketing

Pre-productionPrototype


EngineeringPrototype


Universities

Industries

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Supports

Main Role

SeedFinanceSeed

FinanceStart-up





FinanceMezzanine

Finance

ProductProduct


AngelInvestors

AngelInvestors

VentureCapital Firm

VentureCapital Firm



IPOAcquisition

IPOAcquisition


ResearchGrants

ResearchGrants






BasicResearch

BasicResearch









Industries

Universities

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Second Step:Assisted Linear Model (ALM)

Gap funding to explore practical implications of Academic research

Technology Transfer Office: internal and external search mechanism to identify and market Intellectual Property and assist firm formation

Incubator facility: subsidized space and support structure for Start-ups

Science Park: Source of collaborations to support above activities, creating a virtuous circle from linearity

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Supports

Main Role

SeedFinanceSeed

FinanceStart-up





FinanceMezzanine

Finance

ProductProduct


AngelInvestors

AngelInvestors

VentureCapital Firm

VentureCapital Firm



IPOAcquisition

IPOAcquisition


ResearchGrants

ResearchGrants






BasicResearch

BasicResearch









Industries

Universities

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Third Step:Triple Helix Model

Movement from bilateral to trilateral interactions

Taking the role of the other e.g., government as venture capitalist

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Supports

Main Role

SeedFinanceSeed

FinanceStart-up





FinanceMezzanine

Finance

ProductProduct


AngelInvestors

AngelInvestors

VentureCapital Firm

VentureCapital Firm



IPOAcquisition

IPOAcquisition


ResearchGrants

ResearchGrants






BasicResearch

BasicResearch









Government Industries

Universities

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Fourth Step:Differentiated Universities

In April 1998, the UK Government outlined the new university for industry (UFI)

An Average of 600 000 individuals annually participated in its learning programs by 2002 and 2.5 million used the university’s information services.

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Supports

Main Role

SeedFinanceSeed

FinanceStart-up





FinanceMezzanine

Finance

ProductProduct


AngelInvestors

AngelInvestors

VentureCapital Firm

VentureCapital Firm



IPOAcquisition

IPOAcquisition


ResearchGrants

ResearchGrants






BasicResearch

BasicResearch









Industries

Universities for Industry

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Fifth Step:Company Universities

There are a number of ‘company universities’, such as the Unipart university, Motorola university and Ford university.

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Supports

Main Role

SeedFinanceSeed

FinanceStart-up





FinanceMezzanine

Finance

ProductProduct


AngelInvestors

AngelInvestors

VentureCapital Firm

VentureCapital Firm



IPOAcquisition

IPOAcquisition


ResearchGrants

ResearchGrants






BasicResearch

BasicResearch









Industry + University

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Institutional Arrangements: Incentives to University Researchers

Formulas for the allocation of OTT revenues from license royalties:-Most common formula: Equal sharing among the university (33%), the department (33%), and the employee inventor (33%).

-Another common formula: 50%-50% sharing between the university and the inventor.-Average net revenue distributions: University (35%), department (25%), and faculty inventor (40%).

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University-Business Interactions

A. Knowledge Interaction

B. Business Relationships

C. Institutional and Structural Arrangements

D. Spatial (geographic) interaction

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University-Business InteractionsA-Knowledge Interaction

Strategy and planning Information transfers Skill transfers Skill enhancement Knowledge enhancement Access to facilities and capability Commercial knowledge exploitation

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Knowledge Interaction

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University-Business InteractionsB-Business Relationships

Corporate gifts and bequests Corporate sponsorship Cooperation Collaboration Contract and consultancy Commercial participation Commercial partnership Commercial competition

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Business Relationships

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University-Business InteractionsC-Institutional and Structural Arrangements

University schools, faculties, departments University research institutes and organisations Research centres Cooperative Research Centres Technology transfer (licensing) companies Joint venture companies Professional advisory and consultancy services University business interface organisations Business associations Networks, forums and roundtables Alumni bodies Personnel interchange Personal networks

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Institutional and Structural Arrangements

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University-Business InteractionsD-Spatial (geographic) interaction

Technology precincts Business incubators Science and technology parks Industry clusters

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Spatial (geographic) interaction

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FutureTrends

FutureTechnology

FutureEvents

AnticipatedNew Programs

ScientificResearch

EconomicDevelopment

Efforts

NewPrograms/Courses

ProgramRevisions

AssociateDegrees

LocalNeeds

AdvancedTechnologyCertificates

SpecialTopics

Certificates

Workforce Development

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Six Scenarios for Universities

Thank You !

Any Question ?

University-Industry Relationship

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Transcript of University-Industry Relationship