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Commercialization of Research Results in the United States an Overview of Federal and Academic Technology Transfer

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Commercialization of Research Results in the United States an Overview of Federal and Academic Technology Transfer A2004:007 Commercialization of Research Results in the United States An Overview of Federal and Academic Technology Transfer Magnus Karlsson Commercialization of Research Results in the United States An Overview of Federal and Academic Technology Transfer Magnus Karlsson Science and Technology Counselor Swedish Institute for Growth Policy Studies, ITPS Embassy of Sweden, Washington, DC ITPS, Swedish Institute for Growth Policy Studies Studentplan 3, SE-831 40 Östersund, Sweden Telephone + 46 (0)63 16 66 00 Telefax + 46 (0)63 16 66 01 E-mail [email protected] www.itps.se ISSN 1652-0483 Elanders Gotab, Stockholm 2004 For further information, please contact Magnus Karlsson Telephone + 1 202 467 2654 E-mail [email protected] COMMERCIALIZATION OF RESEARCH RESULTS IN THE UNITED STATES Foreword The United States is often used as a benchmark in the Swedish research policy debate. The scope and quality of American research, the ability to commercialize research results and the entrepreneurial spirit are some reasons for this. Against this background the Swedish government commissioned the Institute for Growth Policy Studies (ITPS) to undertake a study on the science system and policies in the United States. The ITPS Office at the Swedish Embassy in Washington D.C. was assigned to conduct the study. The results of the project will serve as an input to the next Bill on Research that will be presented to the Swedish Parliament 2004–2005. The results are presented in this report and three others*. This study covers federal and academic technology transfer in the United States. It includes university-industry relationships, licensing and patent activities, business incubators, funding of technology transfer, intellectual property policy, entrepreneurship and education, small business policy and other government initiatives relevant for the transfer of technology. Stockholm, March 2004 Sture Öberg, Director-General * • “American Science – the Envy of the World? An Overview of the Science System and Policies in the United States”, by Kerstin Eliasson. • “From Doctoral Student to Professor – The Academic Career Path in the United States”, by Eva Karlsson. • “The Structure and Financing of Medical Research in the United States – An Overview”, by Eva Ohlin. 3 COMMERCIALIZATION OF RESEARCH RESULTS IN THE UNITED STATES 4 COMMERCIALIZATION OF RESEARCH RESULTS IN THE UNITED STATES Content Summary .............................................................................................................................. 7 1 Introduction............................................................................................................... 13 1.1 Technology Transfer on the Political Agenda ................................................................13 1.2 What is Technology Transfer? ......................................................................................14 1.3 Overview of R&D in the United States ..........................................................................15 1.4 Focus and Outline of the Report...................................................................................16 2 Federal Technology Transfer .................................................................................. 19 2.1 Technology Transfer Expectations.................................................................................19 2.2 The U.S. Federal Lab System.........................................................................................20 2.3 R&D Joint Ventures and Agreements............................................................................21 2.4 Inventions, Patents and Licenses...................................................................................21 2.5 Organizations Supporting Federal Technology Transfer.................................................22 2.6 Technology Transfer at the National Institutes of Health ...............................................23 3 Academic Technology Transfer.............................................................................. 27 3.1 University-Industry Relationships...................................................................................27 3.2 Total and Industry Sponsored R&D at Universities .........................................................28 3.3 Licensing and Patents Activities ....................................................................................29 3.4 Regional Clusters of Innovation ....................................................................................30 3.5 Start-Up Companies and Business Incubators ...............................................................32 4 Commercialization at Universities.......................................................................... 35 4.1 Offices for Technology Transfer....................................................................................35 4.2 Stanford University Technology Transfer.......................................................................37 4.3 University of California (UC) Technology Transfer .........................................................39 4.4 UC Patent Policy and Process........................................................................................42 4.5 Other UC Policies .........................................................................................................46 4.6 Technology Transfer Support at Two UC Campuses......................................................48 5 Funding Technology Transfer................................................................................. 51 5.1 Early-Stage Funding .....................................................................................................52 5.2 Venture Capital Investments.........................................................................................53 6 Intellectual Property Policy ..................................................................................... 55 6.1 The Bayh-Dole and Stevenson-Wydler Acts...................................................................56 6.2 Effects of Patent Policy Reforms ...................................................................................57 7 Entrepreneurship and Education............................................................................ 59 7.1 Entrepreneurial Education Programs.............................................................................59 8 Small Business Policy and Programs .................................................................... 63 8.1 The Small Business Administration................................................................................63 8.2 The SBIC Program ........................................................................................................64 8.3 The SBIR and STTR Programs ........................................................................................66 9 Government Initiatives and Programs ................................................................... 69 9.1 Industry-University Cooperative Research Centers.........................................................69 9.2 The Advanced Technology Program .............................................................................71 9.3 Project BioShield ..........................................................................................................72 10 Technology Transfer Issues.................................................................................... 75 10.1 The Commercialization of Research..............................................................................75 10.2 Funding Early-Stage Technology Development..............................................................76 10.3 Bayh-Dole Challenges ..................................................................................................77 10.4 Improving Technology Transfer Practices ......................................................................78 11 Concluding Remarks................................................................................................ 81 11.1 U.S. Strengths and Swedish Challenges........................................................................82 References ......................................................................................................................... 89 Appendix A: Technology Transfer Legislation .............................................................. 95 Sammanfattning .............................................................................................................. 101 5 COMMERCIALIZATION OF RESEARCH RESULTS IN THE UNITED STATES 6 COMMERCIALIZATION OF RESEARCH RESULTS IN THE UNITED STATES Summary The United States has a history of successfully turning research results and new technologies into commercially viable products and services. Commercialization of new technologies has contributed to economic development and growth. Technolo- gy transfer activities started to become institutionalized in academia and govern- ment after World War II and have grown significantly in the last two decades, trig- gered largely by political reforms. This report provides an overview of the extent and nature of technology transfer and the underlying reforms and enablers in the U.S. The purpose is to identify U.S. strengths that are relevant for Swedish challenges related to the commercialization of research results. Special attention is given to commercialization at universities. Five important areas enabling technology transfer are pointed out and discussed. Examples
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