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Wayne H. Watkins Associate Vice President for Research The University of Akron Past-President University Economic Development Association

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Selected University Research Outreach Initiatives

1.  University Knowledge and Technology Transfer •  Human training and movement of expertise is perhaps 95% of tech transfer •  Intellectual property development and commercialization via transfer to the

commercial sector – most institutions have technology transfer programs

2.  Outreach & Extension Programs •  Economic Development Offices •  Industry Liaison Offices (TLO) aka “Corporate Relations Offices” •  Agriculture, Industrial, and Manufacturing Extension •  Entrepreneurial Assistance Centers •  Export Assistance & Procurement Technical Assistance Centers •  Small Business Development Centers •  Prototyping, Pilot Plant, and Testing Services programs •  Community Relations Offices – participate in local, regional, and state

economic development organizations

3.  University-Related Research Parks

Selected University Research Outreach Initiatives

4.  Incubators and emerging enterprise support initiatives

5.  Economic and business research centers

6.  Asset sharing programs (people, equipment, libraries, facilities, intellectual property, support offices such as human resources & info services)

7.  Capital development (angel capital networks)

8.  Student internships, mentoring, and placement

9.  Multi-university and regional economic development programs

Issues of note •  Executive commitment to an engaged university •  Faculty impact, acceptance, and trust development

–  Office as driver vs. facilitator/supporter –  “What is in it for me?”

•  Value of outreach offices •  Policy development

–  Conflict of commitment –  Conflict of interest –  Intellectual property –  Consulting and extra-contractual services –  Mixing of public and private resources

•  Public subsidy of private sector issues •  Organization models for university outreach

–  Network model vs. single portal •  Its all about people •  Setting and managing expectations

F*

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•  University and community resources

•  Challenges and

limitations •  How identify? •  How stay current?

Assessing Opportunities

I*

•  Urban campus adjacent to downtown •  25,000 students (14% graduate students) •  World class in polymer science and polymer engineering •  Best value public university law school - by National Jurist •  Nationally recognized intellectual property law program •  Recognized expertise in science & engineering

The University of Akron in 2000 !  Strong ties to the rubber and plastics industry !  Research expenditures of approx $20M !  $289,000 licensing income !  One university spin-out company !  Region of four million people !  Large industrial complex - struggling

B*

Northeast Ohio Industry Research Network

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Create appropriate organization structure

•  Things Ohio public universities can not do –  Take equity –  Indemnify –  Respond quickly to private sector

•  What universities need help doing –  Effectively bridging the public/private interface –  Taking long-term economic development perspective

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2001 formed University of Akron Research Foundation

•  Not-for-profit - Tax Exempt / Charitable Status •  Corporate charter is to benefit UA and

community –  Provides current value & invests with expected long-

term benefit

•  Independent of university and state –  Provide indemnity to research sponsors –  Hold and dispose of equity in private companies –  Respond to faculty and industry on a commercial timeframe

and with flexible decision making authority –  Independence requires that majority of board is not

university personnel

•  UARF financial statements are rolled up in UA statements (GASB)

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1. Provide and/or consolidate regional information technology and human resource services

2. University affiliated corporate education provider

–  See also Sophia.org for emerging model

3. Merging portion of corporate research division with university research team

4. Corporate business unit spin-out to a university industry joint venture

5. Austen Bioinnovation Institute in Akron – Founded by three hospitals, UA, and Med school – directed innovation initiatives

Emerging Programs – Limited only by Imagination!

Senior Fellows The Business of Business

National Recognition for Regional Wealth Creation

Entrepreneurship: Vet internal and external technology and business opportunities Link start-ups to validation partners, markets, legal, investment Student engagements to executive functions Government, institution and industry sponsorship Create/manage Angel investment network; new VC funds

Innovation: Open Innovation creates networks Innovation Services creates virtual organizations

Technology Commercialization: Market focus for technologies Commercial validation partners Assemble technologies and resources Drive the business in early stage; possible equity stake

Traditional Engagement

* Consultants and services Faculty * Research * Consortia

* Students Associates * Interns

* Training / Workforce Development

* Universities and companies w/ Ohio potential Networks * Like-minded corporations * Open Innovation partners

* Strategic Alliances Strategic * Joint Ventures * Spin-In Technology

Enterprise Partnership

Execution !

Corporate Partnering Opportunities In

crea

sing

Val

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Production Knowledge, Technology

Overview of Public-Private Partnerships

Context Scientific Discipline,

Tech Transfer Protocols

Structure Geographical

Proximity, Formality

Public - Private

Partnerships

Learning Formal Learning,

“Hands on” Training

Exchanges Personnel,

Capital

Issues of note •  Executive commitment to an engaged university •  Faculty impact, acceptance, and trust development

–  Office as driver vs. facilitator/supporter –  “What is in it for me?”

•  Value of outreach offices •  Policy development

–  Conflict of commitment –  Conflict of interest –  Intellectual property –  Consulting and extra-contractual services –  Mixing of public and private resources

•  Public subsidy of private sector issues •  Organization models for university outreach

–  Network model vs. single portal •  Its all about people •  Setting and managing expectations

CE*

0

10

20

30

40

50

60

70

80

90

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

Disclosures Received Total U.S. Patents Filed New U.S. Patents Filed U.S. Patents Issued

!Q*+%'%,&-.*,"9*N"$%"32"'**The University of Akron’s technology and invention portfolio includes more than 450 active and pending patents. Compared to the national average, UA has 50 percent more patents and twice the number of invention disclosures per research dollar spent.

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Advanced Materials

Biotechnology

Chemical Technology

Computers, Data & Devices

Energy

Environmental

Medical

Nanotechnology

Others

Polymer Science

Security

Industrial Grants & Contracts Awarded to UARF 115 active research projects including

•  Babcock & Wilcox •  Cummins •  Goodyear •  SPM •  Aircraft Braking •  Caterpillar •  CIBA •  Innovia •  Energy Conservation •  Avtron •  RPM

•  Bridgestone •  Proctor & Gamble •  ETH Zurich •  Reforce •  Concurrent •  Repsol •  General Dynamics •  Trafficast •  Lockheed Martin •  3M •  Bowing

Traditional Start-up Companies based on UA Technology

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Start-up Companies - Cumulative

0

5

10

15

20

25

30

35

40

45

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

Total Start-up Companies - 43 !!#  7%(8'9:'&&');%1<./(/+,%= "23.  Diacure"24.  Dynamic Transportation Solutions*CH=  U>*G,(%&#,6'*CI=  M6%V#W6%*M0"-32",6*M#6K*R%-.*!"#  >.8%+?'8%@)$&'?8)$8?A18A?%=)CD=  X%"5,;*CA=  X#9")V*>?=  G%K1&2LG,V280&O,-%*>E=  YZ[**N"-=*>C=  Y2$,-%;*66#  B/(C=&'?8)60#  D%@E=<)>H=  +%'%,&-.*J&290-('*52&1*>I=  +22P&%:**6"#  $%%$&'(()>D=  8#52,(*>A=  8Y8*Y,"2\W%&*R%-."2627)*F?=  R58*J26)K%&'*FE=  !"#(%9*J26)K%&*R%-."2627)*FC=  !"#$%&'#()*N""2$,32"*b%"(0&%'*F>=  ]"U&7)*

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UARF Fellows

Senior Fellows & Executives: ""Wil Hemker, Executive-in-Residence "John Myers, Executive-in-Residence""Barry Rosenbaum, Senior Fellow""Gordon Schorr, Senior Fellow""Ed Weil, Intellectual Property Fellow"

"Stanley Lang, Project Executive""Howard Wheeler, Project Executive"

"""

Student Interns: ""Bethany Guegold""Beth Harry""Andy Maas""Joe Rich"""

UARF Fellows

•  The donated time and effort from senior executives is in excess of five full-time equivalents

•  UARF Fellows – 513 contacts assisted of which 452 are companies and the others are individual entrepreneurs

•  Companies are primarily early stage, but also include more established companies seeking usually Open Innovation assistance, personnel (usually interns), access to UA technologies, and networking contacts

Business growth – connect area entrepreneurs to logical and natural partners

Regional Capital Development Initiatives

•  UARF dba ARCHAngels, regional network of investors

•  Supplements Jumpstart and other regional partners •  UARF acts as host of event and counsels presenters •  Over 280 projects considered by the ARCHAngels

Deal Flow Committee •  Contacted by hundreds of companies annually •  Presented 65 companies to investors at quarterly

events since November 2005 •  30 reported follow-on funding of $55.5 million •  Ca. 550 active members

•  Innovation Fund – up to $100K grant – donations •  Northeast Ohio Student Venture Fund fka Hop-on

Student Venture Fund

Northeast Ohio Student Venture Fund

•  Promotes social welfare by encouraging economic development and growth in Ohio

•  Is authorized to solicit and accept gifts, grants and contributions for appropriate qualifying purposes including to establish a self-perpetuating capital fund to be used to purchase equity interests in private businesses for the purpose of providing experiential entrepreneurial education and for the purpose of supporting economic development in Ohio

Lorain Innovation Fund

•  Awards are made to help early-stage entrepreneurs progress through the business development continuum by providing resources to help validate the technology or prove the business model

•  Funding of pre-seed capital fund does not –  Jeopardize its 501 (c)(3) status –  Foundation status –  Contributions are tax deductible –  Must have educational component

ARCHAngel Presenters Over 75 Companies, Including:

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ARCHAngels Follow-on Funding by presentation date

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

Sept-0

5

Nov-05

Feb-06

May-06

Sept-0

6

Nov-06

Feb-07

May-07

Sept-0

7

Nov-07

Feb-08

May-08

Sept-0

8

Nov-08

Feb-09

May-09

Dec-09

Feb-10

May-10

UARF Support of ARCHAngels Subsequent Investment in ARCHAngel Companies

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Open Innovation Seminars

•  Stimulated by Proctor & Gamble

–  Corporate culture changed from primarily internal to “proudly invented elsewhere”

•  All events sponsored by UARF are free to our community

•  Nationally-recognized thought leaders

•  100 community business leaders, policy makers, and innovators attend

•  Only event of its kind in Ohio

•  Transforming regional companies

UARF money flow for the benefit of UA July 2003 to Dec 2010

Direct research costs $ 8,630,400 To UA & innovators 7,419,800 Equipment 988,000 Regional support 126,000 Scholarships 52,200 Research support 568,100 $ 17,784,500

UARF invited to testify – U.S. House of Representatives Committee on Science and Technology – June 2010

Awards and Honors

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UA: the most productive in the nation—recently released data!

Of the more than 150 U.S. universities:

•  #1 in licensing revenue per research dollar among universities without a medical school

•  #3 in U.S. patents per research dollar

•  #7 in licensing revenue among universities without a medical school

•  #1 in Ohio in licensing revenue among public universities

_______________________ Association of University Technology Managers (AUTM) 2007

Rankings (released in February 2009)

FE*

Akron Innovation Campus

–  Three buildings adjacent to UA campus on Wolf Ledges

–  Purchased 2007 & 2011 –  75,000 sf –  19 tenants – mix of

University spinouts, research partners and community organizations

Akron Innovation Campus LLC holds real property Sole member is UARF

Policy Environment Education • IP Protection • Regulation • Legal

Innovation

Infrastructure Transportation • Energy • Information Networks

SUPPLY skills

knowledge risk capital

management technology

research

DEMAND quality security customization convenience efficiency design

Innovation Ecosystem Do Universities have a role?

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Talent Investment Infrastructure

• Build a National Innovation Education Strategy for a diverse, innovative and technically trained workforce

• Catalyze the Next Generation of American Innovators ~Establish innovation curricula for entrepreneurs and small business managers

• Empower Workers to Succeed in the Global Economy

•  Revitalize Frontier and Multidisciplinary Research

•  Energize the Entrepreneurial Economy

~ Build 10 innovation hotspots over next 5 years

~ Designate a lead agency

and an inter-agency council to coordinate fed econ dev policies to accelerate innovation-based growth

~ Increase the availability of

early-stage risk capital with tax incentives, expanded angel networks and state & private seed capital funds

•  Reinforce Risk-Taking and Long-Term Investment

• Create National Consensus for Innovation Growth Strategies

• Create a 21st Century Intellectual Property Regime

• Strengthen America’s

Manufacturing Capacity

• Build 21st Century Innovation Infrastructures – the health care test bed

United States National Innovation Agenda Influence of Universities?

Based on Council on Competiveness graphic – National Innovation Initiative

21st century innovation economy: opportunities for universities

•  Talent •  Collaborative “industrial assistantships” •  Professional science masters in industrial

innovation – (Aachen) •  Innovation curricula to optimize the innovation

ecosystem

•  Investment •  Better align university and commercial interests --

strategic partnerships •  Help regions and states understand federal and

global research economy •  Incentivize innovation across ALL university

disciplines

•  Infrastructure •  Expand alliances with other universities and

businesses •  Create knowledge in innovation (understanding

the innovation ecosystem) •  Recommend innovation in health care, education,

legal and policy frameworks •  Link intellectual property sector, science

establishment and community

In his book, "The Rise of the Creative Class", Richard Florida refers to colleges and universities as " . . . a huge potential source of competitive advantage." And he says that colleges and universities are today " . . . a basic infrastructure component . . .and far more important than traditional infrastructures such as " . . . the canals, railroads and freeway systems of past epochs . . ."

Evolution of University Driven Economic Development

• 2000s – Innovation initiatives - Biotech

- Global research alliances

1887 - Hatch Act - responsibility for extension in agriculture & mechanical arts 1862 - Morrill Land Grant Act - applied agriculture & mechanical arts

1947 - Transistors initiate the era of microelectronics 1944 - GI Bill - pumps talent into economy 1940s - World War II - engineering and physical sciences for war effort

1957 - Sputnik spurs space race

1970s - Genetic engineering and molecular biology emerge

1980 - Bayh-Dole Act – ability to commercialize results of federally funded research (becomes an inflection point) 1980s – Current university initiatives emerge including:

! Technology transfer ! Incubators & emerging enterprise development ! Research parks ! Entrepreneurship programs ! Centers of excellence & cluster initiatives

1990s - Internet emerges

Teaching Research Service

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•  Historical roles: create, store, and disseminate knowledge

•  Current roles: teaching, research and service

•  Future roles: knowledge creation, skills assessment & credentialing, and community innovation capacity and economic development)

Universities - comparatively new to the world of economic development

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Universities create new technologies, which destroy jobs on the trailing edge, while creating jobs on the leading edge

“. . . .we shall not be measured by how many students we exclude, but rather by how much value we add in enabling the success of our students.

. . . . . we shall not be measured by the barriers we

erect between ourselves and our communities, but by the

collaborative impact that we create for each other and for our common good.

. . . . . we shall not be measured by the isolation of our

disciplines, but by their integration as applied in solving the problems of today.” Luis Proenza, President The University of Akron

The new standard!

MIT Professor Richard K. Lester - key points about universities in economic development:

1.  Embracing role as “engines of innovation”

2.  Conventional view of universities and technology is too narrow

3.  No one-size fits all approach for universities in the economy

4.  Universities should act more strategically

. . . . universities in economic development

Wake-up call for academia (Peirce 2002)

•  “. . . there is an appetite out there for

attuned universities, truly engaged with

their communities. Call it a market, if you

like. It’s new, it’s different, and my bet is

it can only grow.”

Peirce, Neal. “Wake-up call for academia.” The Washington Post. May 29, 2002.

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Commercialization and Entrepreneurial Support through UARF

Focal point for business start-up and commercialization services for emerging technology-based enterprises:

!  Needs and opportunity assessment !  Business and entrepreneurship assistance !  Access to research expertise, technology and facilities !  Opportunities for student interns and recent graduates !  Space for offices and labs !  Connection to Angel investors and other funding sources

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ARCHAngels - Akron Regional Change Angels

•  UARF dba ARCHAngels •  Regional network of investors •  Contacted by hundreds of companies annually •  Provide business assistance •  Select best to present to ARCHAngels network

–  Quarterly events since Nov. 2005 –  Presented 65 companies to investors –  Approximately half received funding –  Presented three UA-developed technologies: coal fuel

cell, artificial pancreas, carbon nanotubes

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Open Innovation

•  Stimulated by Proctor & Gamble –  Corporate culture changed from primarily

internal to “proudly invented elsewhere”

•  Events sponsored by UARF •  Nationally-recognized thought leaders •  100 community business leaders, policy

makers and innovators •  Only event of its kind in Ohio •  Transforming regional companies

Higher Education . . . .

•  . . . . an essential resource for Promoting Technology and Innovation in the Global Economy

•  Consider:

•  Strategies and roles for universities

•  Empowering universities to create wealth

“Should Universities Be Agents of Economic Development” Robert E. Litan and Lesa Mitchell – Kauffman Foundation

•  . . . . by definition universities impact economic development via dissemination . . . as for role in developing products, the issue is not if but how . . .

•  . . . competition requires entrepreneurial behavior . . . one of the more effective mechanisms is star scientists

•  . . . other means of university economic development include, entrepreneurship incubation (mentors, angel and VC networks), operating secondary education schools, health care to neighborhoods, real estate – research parks

•  Universities located in distressed areas may need to invest in surrounding areas in order to enhance their attractiveness to faculty students who have other options

•  “In sum Universities in the United States and elsewhere around the world clearly are in the “Economic Development” arena. They are likely to be most successful, . . . . . if they play to their strengths, and if they permit and ideally encourage the “bottom up” entrepreneurial endeavors that may come from their faculty, students, alumni, and other supporters.”

University “products”

1.   Educational services •  Transfer of codified, or explicit, knowledge in return for

tuition payments generating direct and indirect demand for local goods and services

2.   Cultural products: quality of life

3.   Transferring tacit knowledge •  Create localization economies

»  Create specialized labor pools, highly skilled labor that is locally thick and globally thin, attracts potential employers & diffuses technology

»  Diffuse technology through faculty consulting »  Diffuse technology into the regional economy through

locally contracted research

4.   Contract research •  Export knowledge through external contract research

5.   Create new technology-based products or industries

Hill, E.W. and I. Lendel. “Exploring the impact of the reputation of bio-life science and engineering doctoral programs on regional economic development.” Cleveland State University, 2005.

The University of Akron Strategic Plan 2010 – 2020

Strategic Goals 1.  Strengthen Akron’s historical commitment to inclusive

excellence to enhance student access, transformation and success.

2.  Create vibrant, healthy and diverse campuses that are deeply engaged with their surrounding communities.

3.  Establish selected cross-disciplinary clusters of academic distinction that are recognized nationally and internationally.

4.  Achieve national recognition for a curriculum in which entrepreneurship and 21st century global competitiveness skills are comprehensively embedded.

5.  Be a primary driver of economic competitiveness in northern Ohio and a leading contributor in the state.

The University of Akron Strategic Plan 2010 – 2020

Strategic Goal 5: Be a primary driver of economic competitiveness in northern Ohio and a leading contributor in the state.

Potential Initiatives 1. Be recognized nationally for technology transfer and

commercialization of research; outperform national benchmarks for the number of start-up companies and the number of companies attracted to the area.

2. Partner with businesses, organizations, and industries to advance Akron’s research and technology transfer goals, create jobs and increase business profitability.

3. Expand the university’s capacity to form strategic partnerships with industry, other educational institutions, and local government entities to support innovation-capacity development and venture capital investment in the region.

•  Excellence in Business Assistance •  Winner - University of Northern Iowa – Business and

Community Services (Regional Business Center): “MyEntreNet” •  Finalist - The Pennsylvania Technical Assistance Program

(PennTAP) at Penn State University: “Cluster-Based Information Technology Assistance (CBIT) Initiative, “Increasing the global reach and competitiveness of critical industry clusters”

•  Finalist - Maine Center for Business and Economic Research (MCBER) at the University of Southern Maine (USM): “Retail-Sales Forecasting at Hannaford Bros. Co.”

•  Excellence in Technology Commercialization •  Winner - Lehigh University: “Lehigh Nanotech LLC” •  Finalist - University of Hawaii at Manoa-Pacific Business Center

Program: “Manoa Biosciences, Inc. (MBI) Business Plan” •  Finalist - The Pennsylvania Technical Assistance Program

(PennTAP) at Penn State University: “Technology Innovation Infusion”

Awards of Excellence

•  Excellence in Community Development •  Winner - The University of Tennessee, Institute for Public Service:

“Municipal Technical Advisory Services Review Leads Way To Development Program”

•  Finalist - The Pennsylvania Technical Assistance Program (PennTAP) at Penn State University: “Pennsylvania Mountains Healthcare Alliance (PMHA) Broadband Network”

•  Finalist - Missouri Research Corporation: “The Fourth Mission: Expanding the Role of Universities in Community Economic Development”

•  Excellence in Partnership Development •  Winner - Nevada Small Business Development Center (NSBDC),

College of Business (COB): “Hands-On Learning Laboratory for Business Students – Port of Subs Franchise”

•  Finalist - The Pennsylvania Technical Assistance Program (PennTAP) at Penn State University: “Economic Development Technical Assistance Partnership Promoting Environmentally Sustainable Business Practices and Energy Conservation”

•  Finalist - Economic Development University Center, University of Puerto Rico: “Puerto Rico TechnoEconomic Corridor (PRTEC)”

Awards of Excellence

•  Excellence in Economic Development Research •  Winner - University of Hawaii at Manoa-Pacific Business Center

Program: “American Samoa Government Labor Study” •  Finalist - Michigan State University – Center for Community and

Economic Development: “The Greater Lansing Bio-Manufacturing Study”

•  Finalist - University of Nevada, Reno-- Center for Economic Development: “Community Business Matching Model”

•  Excellence in Public Policy •  Winner - Institute for Policy and Social Research at The

University of Kansas: “Evaluation of the Kansas Department of Commerce”

•  Finalist - Pennsylvania Department of Community and Economic Development (DCED): “The Pennsylvania Initiative for Nanotechnology (PIN)”

•  Finalist - The University of Tennessee, Institute for Public Service: “The Regional Importance of Reelfoot Lake”

Awards of Excellence

Entrepreneurship

Open Innovation

Community

Industry

Technology

University

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Wake-up call for academia (Peirce 2002)

•  “FOR YEARS, I’ve suspected that universities could and should be a resource, a secret asset, for the health and growth of great cities.”

Peirce, Neal. “Wake-up call for academia.” The Washington Post. May 29, 2002.

University Research Outreach

Strategies, Issues, and the Akron Experience

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