From Tech Transfer to Joint Ventures

1. From Tech Transfer to Joint Ventures From Ideas to Assets IEOR 190G – Spring 2010 Project 2, part 3 – Reviewing other chapters Justin Woo

2. Overview • Key subjects from this chapter: • 1) University innovation and initiatives to commercialize upon academic research • 2) Columbia University’s Columbia Innovation Enterprise (CIE) • Most successful research collaboration within a university setting that became a venture • Key player behind implementation of the program was Jack Granowitz

3. University Relations & Collaboration • Previously…. ACADEMIC PATENT RESEARCH ≠ COMMERCIALIZATION • As a result, researchers… • Research for academic endeavors • Avoid business ventures • Do not look for profit from research

4. Cooperation with Corporations • HISTORICALLY: • Researchers collaborated with corporations for commercialization of a patent • However, researchers were not protected and thus corporations took all the profits • PRESENT CHANGES TAKING PLACE: • Through the Columbia CIE, researchers can cooperate with corporations in patenting a product through a third medium – the CIE. • This enables both parties to be protected, and thus is a win-win. Royalties are still kept by researchers within the university.

5. Current Progress • Outside of Columbia and a select few universities, most universities do not have such an organization such as the CIE to mediate between researchers and corporations • Ex: In 2000 alone, universities overall generated $1.0 Billion from patent revenues • IBM alone as a company generated $1.6 Billion from IP revenues • 15% of this total was for Columbia University • Disproportionately large amount due to CIE • Improvements can be seen elsewhere with similar implementation as CIE in other universities

6. Columbia University’s CIE Model

7. Suggestions / Best Practices • Interview with founder Jack Granowitz • Suggestions / requirements • Research institution • Commercial partners with eagerness to invest in research IP assets • Open and willingness to cooperate between universities and corporations • Even these basic requirements are non-existent at most current universities • Until these are first satisfied, no next step can be taken towards progress

8. Suggestions / Best Practices • Incentives for corporations to cooperate: • University research can offer free help and advancement within areas other than specific intended product • Comparisons: • All UCs: $1.8 Billion for research • $71 million in revenue • Columbia: $279 million for research • $89.2 million in revenue • Large disparity between UCs and Columbia • Due to CIE’s ability to move deals forward and generate revenues from research • Shows valuable benefits from organization such as CIE

9. Academic Research Timeline • For CIE, intervention and involvement are flexible • This allows for greater percentage of research to qualify and be pushed to market for profitability

10. Summary and Conclusion • Through CIE and organizations like it, Universities have tremendous revenue-generating potential through academic research. • Previously, risks of commercial abandonment and lack of protection prevented universities from involvement within commercial corporations for profits; however, third-party organizations such as CIE have proven to be a win-win situation for both parties, generating Columbia 15% of all University research-generated profits in 2000 alone.