Innovation U 2.0 Reinventing University Roles in a Knowledge Economy

Louis G. Tornatzky, PhD Elaine C. Rideout, PhD Innovation U 2.0 Reinventing University Roles in a Knowledge Economy

Louis G. Tornatzky, PhD Elaine C. Rideout, PhD Contents

Foreword...... vii

Acknowledgements ...... ix

Introduction...... 1

Cases Arizona State University...... 19

Brigham Young University...... 39

California Institute of Technology...... 51

Carnegie Mellon University...... 69

Clemson University...... 91

University of Florida...... 109

Georgia Institute of Technology...... 127

Massachusetts Institute of Technology...... 145

North Carolina State University...... 171

Purdue University...... 189

Copyright 2014 Louis G. Tornatzky. All rights reserved. Stanford University...... 205 This work was created for the purposes of advancing public and private discussion related to university innovation, and to advance education and understanding in that field. Any person or organization who acquires a paper or electronic version of this work, and who will use it for those University of Utah...... 225 purposes, is permitted to freely copy and disseminate the entire volume or chapters thereof. A pdf version is available at: Summary and Recommendations...... 245

www.Innovation-U.com About the Authors and Contributors...... 257

v Foreword

No one realized ten years ago how prescient Innovation U would be. Back then, the words economic development and universities rarely appeared together. Now, many economic developers include universities in their asset portfolios, and a large number of university officials purposefully interact with their local economies.Innovation U should not claim sole credit for this shift; it can, however, claim to have raised awareness in a few critical groups and helped build momentum for critical policies.

Innovation U 2.0: Reinventing University Roles in a Knowledge Economy enters a very different world than its predecessor. Government officials are questioning the role of universities in society. The economic underpinnings of higher education, for universities and stu- dents, are stressed. Federal support for research is uncertain. Never have so many raised so many questions about the value, purpose, and impacts of higher education, at least in contemporary times.

Amid all these questions, the strategies and practices encapsulated in this book present some answers. Innovation U institutions dramatically depict universities as creators of intellectual capital and economic growth. They show paths for universities to follow for larger impacts on their region. The cases are not exhaustive, and certainly there are omissions. Volumes could be written about each university, and many others are accom- plishing remarkable feats.

Dr. Lou Tornatzky and his colleagues—fueled not by remuneration, but by an intense belief in the economic power of universities—should be commended for their dedica- tion and quality product. Dr. Tornatzky recently retired from Cal Poly, and this project caps an illustrious career as a teacher, manager, and researcher in all things in technology and policy.

Scott Doron Director Southern Technology Council Research Triangle Park North Carolina

vi vii Acknowledgements

Financial and in-kind support from the following organizations were instrumental in enabling the execution of this project and the early dissemination of the final report:

The National Science Foundation, Industry/University Cooperative Research Centers Program (IIP-1140438) provided monetary support for the research team.

The William R. Kenan Jr. Institute for Engineering, Technology & Science provided monetary support for project execution including dissemination of the final report.

The Orfalea College of Business, California Polytechnic State University, supported Dr. Tornatzky’s sabbatical leave in Research Triangle Park, NC.

The North Carolina Office of Science and Technology provided logistical and dissemination support.

The State Science and Technology Institute featured a digital version of the report in its online newsletter, and sponsored a Webinair to present the project to its large constituency.

The Information Technology Innovation Foundation served as a dissemination partner and featured a digital version of the report in its online newsletter.

North Carolina State University made office space and support services available for Dr. Tornatzky during his sabbatical leave in Research Triangle Park.

A number of individuals made in-kind contributions:

Susan Opava, Paul Waugaman and Trent Williams were outstanding in their roles as “critical readers” of draft chapters, and suggesting corrections in grammar, style, and substance.

Scott Doron, former Director of Southern Technology Council and a long-time collaborator, was a rock of intellectual and organizational contributions of inestimable value to the execution of this project. His faith in what we wanted to do, with no money to start with, kept us going.

Denis Gray was one of the authors on the 2002 Innovation U book, but regrettably took a pass on being a co-author on this project. Nonetheless, over the past 18 months he has provided logistical, intellectual, and political assistance that has gone beyond the call of duty and expectations of friendship. He also was a significant viii ix contributor in the key Introduction and Summary chapters, and co-designed and participated in the Case Selection process.

Lynette Tornatzky put up with the senior author’s peaks of creative bliss and anguish, and contributed her graphic design skills to the format of the report. Introduction* During the case selection process, eight very knowledgeable individuals provided valuable substantive input and contributions of their time as a Project Advisory Committee member:

John W. Ahlen, The suggestion that US universities do in each university case study; and (5) to describe ; President (retired), Arkansas Science and Technology Authority more to pursue and optimize the potential case selection and analysis methodologies that were Robert D. Atkinson, usefulness of the results of taxpayer-funded used, as well as ones that were avoided, and why. President, Information Technology and Innovation Foundation; research is not an acclamation that US universities have failed. Instead, it is a Innovation U - 2002 Elizabeth Popp Berman, suggestion that they can improve and, in Twelve years ago a slim paperback volume was Associate Professor, University of Albany, SUNY; doing so, better advance economic growth completed and widely distributed by the Southern and human welfare. Paraphrasing from 1 Barry Bozeman, Growth Policies Board (SGPB), located in elsewhere in this article, better than it Research Triangle Park, North Carolina. It was Arizona Centennial Professor of Public Management and Technology Policy, was is no excuse for failing to pursue or ; entitled Innovation U. New University Roles in a Arizona State University even achieve as good as it could be. Knowledge Economy. The heart of that book was Dan Berglund, — John E. Tyler III, twelve brief case studies of research universities President & CEO, State Science & Technology Institute; Redeploying Bayh-Dole: Beyond merely that were doing bold and novel things to foster doing good to optimizing the potential technological innovation within the institution, Jacques Koppel, in results of taxpayer-funded research as well as to enable technology-based economic Principal, Koppel Group; development within their region, state, and beyond. Elliott Kulakowski, This book is a selection of twelve case studies of That book of cases was the last product that came CEO, Society of Research Administrators International; and exemplary, innovation-producing universities in out of a multi-year research project supported by the United States—what they do and how they the National Science Foundation (NSF), and hard James J. Zuiches, came to be. The universities are exemplars not only copies of the report were distributed to partners of Vice Chancellor (retired), North Carolina State University. in the creation of innovation, but also in terms SGPB as well as nationally to leaders—presidents, of outcomes that have economic impacts (e.g., provosts, chief research officers, deans—of the inventions, industry partnerships, or entrepreneur- 100 largest (by research expenditures) universities ial startups). The purposes of this introductory in the US. It was also distributed to public chapter are several-fold: (1) to describe prior case officials and business leaders who had interests study work that was a precursor to this book; (2) in regional economic vitality. Various follow-on to articulate the need and value of the current activities ensued, primarily via invitations from project; (3) to highlight key assumptions and goals; universities themselves, as well as from state or (4) to describe why and what the team looked at regional organizations interested in fostering x * This chapter was written by Denis Gray, Elaine Rideout, and Louis Tornatzky. INNOVATION U 2.0: New University Roles in a Knowledge Economy Introduction knowledge-intensive, high-growth industry in their competitiveness, as well as many scholarly papers At the federal level, interest in and support for At the state and local government levels the area. To our great satisfaction, the dissemination on the topic, have highlighted the importance of university-based activities that foster innovation landscape is much more complex and dynamic, trail endured for nearly a decade, as SGPB an intentionally engaged university sector.2 For and economic development have increased despite funding for more general economic continued to post the document on its website, instance, the National Research Council’s Research significantly over the past decade.5 For instance, development programs having fallen 40% since with several thousand takers over the years. Universities and the Future of America report the National Science Foundation (NSF), known 2009. Nonetheless, as the State Science and concludes: “As America pursues economic growth primarily for its role in funding basic research, has Technology Institute has documented, spending for There was also one important lesson distilled and other national goals, its research universities expanded support for a range of industry partnering technology based economic development by states from the original project that bears repeating here. have emerged as a major asset—perhaps even programs, including the Industry/University grew by 11.3% between 2010 and 2011.7 According The 2002 cases demonstrated that a group of univer- its most potent one.”3 Recently, the influential Cooperative Research Centers program and the to a recent NSF report, state expenditures for sities, that were nationally prominent centers of Information Technology Innovation Foundation Small Business Innovation Research program. At research and development to support state agencies excellence in their traditional roles of undergraduate 8 issued a short policy brief, 25 Recommendations for the same time, NSF’s Industrial Innovation and totaled $1.4 billion in 2011, with roughly a third and graduate education, research, scholarship, and the 2013 America COMPETES Act Reauthorization. Partnership Directorate has launched several new of this amount going to universities via R&D public service, could also be nationally prominent By our count, fourteen of the twenty-five recom- and promising commercialization-focused activities, contracts and other transactions. Another $3.8 in intentionally fostering technological innovation. mendations were directly or indirectly targeted at including the Partnerships for Innovation initiative billion of state government expenditures went university practices and performance. Sometimes and the I-Corps Program (designed to promote directly to universities in support of academic Rationale for a New “Innovation these issues are discussed as “triple helix,” or in university-based entrepreneurial start-ups). Other research activities. There are tremendous opportuni- U” Project Europe as “Mode 2 Universities.”4 Regardless federal agencies have implemented new initiatives ties for ambitious and proactive universities that that include a prominent role for our nation’s include support for applied and basic research, Over a decade later the original Innovation U of the label or the messenger, the message has research team, plus several allies and supporters, been clear: Universities can and should contribute universities, including the Commerce Department’s entrepreneurship initiatives, science related decided that the time was ripe for a new look at to innovation and technology-based economic “i6 Challenge,” which created proof-of-concept manpower development, cluster and regional America’s “Innovation University” landscape. A development. However, as Tyler suggests in our centers involving universities and research consortia, technology efforts, and a range of industry number of developments, including changes in opening quote, they cannot rest on their laurels, and the National Network for Manufacturing partnerships. Reinforcing the importance government Science Technology and Innovation and they need to figure out how to perform Innovation, which will create regional hubs based of this mechanism, the National Governor’s (STI) policies and programs, maturation of certain better than they have been. With this updated on public-private partnerships. In short, the federal Association recently listed, “Raising expectations innovation strategies, and the changing trajectories volume, we hope to contribute to this discussion. science research funding system has changed, for universities to bridge the gap between research of some of the schools we included in the 2002 and this has worked to support more Innovation and commercialization,” as one of the top trends Changes in the Government Science Technology U thinking and acting. Historically, federal in state economic development for 2013.9 Innovation U, convinced us of the need to take Innovation Policy and Funding Landscape. As we a second look at what universities are doing to government support of University research has argued in our original volume, university innovation Not surprisingly, some universities have been promote technology-based economic development emphasized basic science. That approach derives efforts can be either enabled or constrained by more proactive and astute than others in capitaliz- (TBED). These developments included: from a linear model of the innovation process, as federal and state STI policies and programs. For well as an assumption that “market-failure” explains ing on both the expanding federal opportunities, Growing Consensus on the Important TBED instance, some of the most successful universities why private R&D research has gravitated away from and the changing mosaic of innovation-focused Role Played by Universities. During the past decade in our first volume took advantage of innovation- the early Bell Labs model, in which basic science opportunities at the state level, to support their the chorus of voices highlighting the important focused federal programs, and had synergistic could take years to have an impact on the bottom technology innovation objectives. role universities can and should play in promoting relations with state STI agencies. However, the line.6 Recent federal S&T funding has begun landscape of federal and state STI policies and Maturation of Innovation Strategies. In innovation and ultimately technology-based to embrace “innovation policy” principles that 2001-2002 university innovation programs were economic development has grown larger. It would program has evolved, and the opportunities for create new opportunities for willing universities. partnering have changed, in some ways dramatically. mostly focused on faculty research, industry not be an exaggeration to say that every major policy partnering, and enabling faculty licensing. The report that deals with national technology-based most notable change in the past decade has been

2 3 INNOVATION U 2.0: New University Roles in a Knowledge Economy Introduction a significant expansion of programs forstudent of the schools’ novel programs and activities (but lacking any explanation of why and how rich, holistic case studies that allow one to come entrepreneurship—both curricular expansion could not be assumed, and was a critical factor they excelled); contextually disembodied “best away with a coherent story of how and why these (classes, minors and majors) and a co-curricular in sustaining innovation performance. We also practices” for a specific domain of practice (e.g., universities may be different from their institutional phenomenon (e.g., centers, accelerators, institutes, observed that “boundary-spanning” approaches to STEM education); and skimpy case studies that peers. Consistent with this view, we highlight five pitch contests, clubs, seed funds). Entrepreneurship overcome the disciplinary silos of academia were basically describe a university success story in some key organizational subsystems (described in the next education is now a significant component in important aspects of both innovation routinization domain of TBED.15 While we believe all of these section) in all the cases included in the volume. virtually all major universities, and in many and sustainability. (The importance of boundary- products are valuable and contribute to the ongoing One smaller institutions as well, and was singled out spanning activities cannot be overstated and thus is dialogue on what universities can and should do, Size Doesn’t Matter As Much as One Thinks. criticism of in 2002, based on the as a particularly important target of opportunity reiterated in three of the five subheadings describing in this volume we have taken a slightly different Innovation U schools that were included in the cases, was that it in a recent report on university-based technology each case study in this volume). And finally, it tack to showcasing exemplary universities based appeared to suggest that only the largest research commercialization by the US Department of became apparent that some institutions not covered on a number of key assumptions, as follows. extensive universities could become high performing Commerce.10 There are simply more students than in the original volume were attempting to follow J. E. Innovation U’s. While this was not our intent, we faculty members in a university who want to do Tyler’s opening dictum to “pursue or even achieve as Innovation U’s Must be Understood as Based on what we learned think it was a fair criticism. In fact, this concern entrepreneurship. Economic dislocations have also good as it could be” (sometimes with considerable Organizational Systems. producing the original volume, was partially addressed later on in a colleague’s led students to seriously consider non-traditional success), and deserved a closer examination.13 Innovation U our personal experiences since that volume was fine report that highlighted several successful career paths. Entrepreneurship education curricula published, and our interactions with stakeholders smaller universities.17 and co-curricula activities can engage thousands of In sum, all these factors argued for a fresh While the current volume who read and tried to implement the lessons students and many alumni and have the potential examination of universities that were being still focuses on the top 100 research universities, contained in that volume, we are convinced that to have an impact on local economies. We feel successful at technology innovation and related our revised selection methodology, which relied a high performing Innovation U is more than this development is significant enough to warrant outcomes. In recognition of the lessons learned with on both quantitative and judgment-based criteria, a collection of well-intended incentives and a focused examination in the current volume. regard to longevity and sustainability, the current was stratified to ensure heterogeneity across the study’s second look is based on different and more practices, but is a product of a well-designed, research-funding spectrum. This has ensured that Churn Among the Top Performing Universities. structured methods of case selection than the earlier led, and implemented organizational system.16 some smaller institutions, which were “punching Innovation performance data (e.g., inventions, study (see case Selection Methods and Procedures Relevant drivers include institutional history, heroic above their weight class” in terms of technology industry partnering, entrepreneurial start-ups) section below). individuals who alter an institution’s trajectory, transfer, start-up creation, and industrial research, among the top-100 schools gets better every year, organizational culture that may be reinforced by were included in our case examples this time around. and some schools have made large improvements.11 Our Assumptions and Goals the attraction and/or selection of a certain type of Nonetheless, in the years since the first volume faculty member or student, and synergies achieved Achieving Harmony between Resources and Goals Given the level of interest the policy and When one is tackling a research was published, some of the exemplary program across a wide range of complementary organizational and Methods. economic development communities have recently project as ambitious as the current one with fairly innovations that attracted our attention have structures, policies, and practices. While individual expressed in the role universities can and should limited resources, you need to makes difficult withered or gone away at various institutions. In practices can and do matter, we believe real impacts play in technology-based economic development choices about project goals and methods. This retrospect the durability of cultural and operational happen when all (or at least most) of the parts (TBED), and recent recommendations “to work was certainly the case for For leadership support that fostered these innovations of the university’s organizational subsystems are Innovation U 2.0. with the higher education community to develop instance, many of you will read our report on may not have been as strong as we assumed. Causes tuned to work synchronously toward a common a national program to identify, recognize and exemplary innovation universities and question varied, but included innovative university leaders objective—promotion of technological innovation celebrate exemplars of ‘economically engaged’ why University “X” or “Y” was left out of our case being hired away, followed by other key operations and delivery of value to society. Importantly, as universities,”14 it is not surprising that a number list. The truth of the matter is we almost certainly people, and innovation performance gains (i.e., our cases will illustrate, there is more than one of groups have produced “best university” lists could have included several more universities technology transfer indicators) leveled out. We path to achieving this end. As a consequence, we and best practice reports. These have included: in our list of top performers, but we simply did learned that “routinization,”12 or the permanence have tried to provide our readers with contextually quantitative-based rankings of top performers not have the time and resources to do so. We

4 5 INNOVATION U 2.0: New University Roles in a Knowledge Economy Introduction apologize to those meritorious universities that the scope available to our project team. Thus, Sources and Processes of Nonetheless, over the last few decades were left out of our report and simply assert that we acknowledge that the institutional strategies University Innovation universities have become increasingly and directly the twelve universities that we chose to examine and practices that we highlight as important involved in technological innovation. New 18 are a representative and interesting subset of these and instrumental in this report are closer to In FY2011 US universities conducted just knowledge development becomes technology high performers. A second issue relates to whether well informed working hypotheses than proven over $65 billion of research, and the top 100 (in development when the theoretical ideas and the data collection methods we chose to use— principles, and we welcome follow up work by terms of research scope) performed about 80% research findings of normal science are transformed basically qualitatively and quantitatively informed colleagues who would like to test these assertions of that. Of the $65 billion, 62.6% came from into replicable devices or processes. It becomes descriptive case studies—will allow us to confidently in a more rigorous methodological fashion. With the Federal government and 4.8% was provided technological innovation when those devices and assert a causal relationship between the structures, these key assumptions made explicit, our goals by business. The majority of expenditures processes move into the larger society and delight, policies and practices we highlight and the are similar to those stated in our initial volume: (57.2%) were focused on the life sciences, with advantage, utility, or benefit is realized by adopters. outcomes achieved by these schools. The answer engineering second (15.4%). For most faculty The complex processes by which technological is: we cannot make such an assertion. Since we did • To describe and define, in broad categories, members most of the time, and in virtually all innovation occurs has been described by a robust not pursue a methodological strategy—multiple what constitutes university partnering, academic units (departments, colleges), the most literature20 which we need not summarize here. case comparisons—that would allow testing and engagement, and entrepreneurship in terms of important desired outcomes of all this research However, there are organizational variables and rejection of various counterfactuals about the causal technology-based economic development; was not technological innovation. Typically the issues that are particularly important in enabling goal of university research is to test theory-driven relationships in play, we cannot confidently assert • To objectively identify a small but diverse universities to promote technological innovation. hypotheses, and thereby add to a field of knowledge. institution-level causality. While the scholarly group of universities that are considered This is how basic science mostly works. Sometimes, Our case analyses focused on five key problems side of our professional personas salivated at the exemplary in those categories of partnering; prospect of conducting such a study, there were a where a faculty researcher is part of a larger “grand or opportunities related to major organizational number of reasons such a study was impractical.** • To describe what those universities are doing challenge” with other researchers, the potential subsystems that universities need to address in order However, the most compelling reason was that the differently from their peers in terms of specific for real world applications may be more apparent to be more effective in technological innovation: and the work is more interdisciplinary in nature. amount of resources we would need to conduct organizational practices, policies and programs. • University Culture: Goals and Aspirations. Most exciting and valued is when findings from such a study, and the time needed to secure those For a university to expand its activities beyond typical puzzle-solving faculty research (“normal resources and to do it right, were well beyond the core traditional goals of education, science”) end up challenging an existing body scholarship, and service, it must explicitly of theoretical concepts and assumptions in a **To verify this quantitatively would mean number of explanatory variables are involved, a metric that will give weight to extraordi- articulate and endorse the additional goals and non-incremental way; these are the “paradigm testing the counterfactual case, which and where each should easily yield quantitative nary leadership episodes that span decades? aspirations that underlie innovation activities. shifts” that lead to academic awards and acclaim. after much discussion among the larger indicators, which was not generally the case What happened in 1940 at MIT with the Technological innovation, as an activity that This is what the majority of faculty members in project team, we decided not to do. To here. This may explain why, to the best of our founding of the RadLab was very influential links to the private sector and moves beyond scientific fields aspire to throughout their careers.19 go down that path would have involved a knowledge, no one has completed such an on what MIT became. So too were the steps normal university work, needs to be legitimated. matched quantitative comparison between analysis. Further, the purpose of this book is taken by a Carnegie Institute of Technology For the most part, core university activities • Leadership. University leaders and administra- innovative universities (our exemplary case not to point out and compare winners and president in 1967 to merge with the Mellon are focused on two things: (1) new knowledge tors must, in effect, proclaim to the campus and study sample of 12) and a parallel sample of losers. Many fine universities may nonetheless Institute and become Carnegie Mellon via basic and applied research; development external community, that: “Yes, we are going “non-innovative” universities drawn from be yet in a developmental stage when it comes University. Yet building these historical events and (2) knowledge via scholarly dissemination to be good at technological innovation, and the same selection tranches. These kinds to innovation production. Some of the into a more quantitative analysis would have publication, teaching, and student advisement. this is what we are going to do often, publicly, of analyses can and are performed in a wide ingredients of an Innovation U as described been challenging. Nonetheless, some of the Generally, when universities talk about preferably with some passion, and via leading-by- variety of settings. However, they are most here have vastly different time frames across qualitative factors teased out by this case-study what they do and of what they are proud, doing.” This is the difficult, action-forcing viable methodologically when a very small cases and in fact, all of the cases have a large analysis may well lend themselves to a future they come back to these core activities. historical component. How does one devise more quantitative counterfactual analysis. part of an enabling university culture.

6 7 INNOVATION U 2.0: New University Roles in a Knowledge Economy Introduction

• Boundary-Spanning: Entrepreneurship. University Culture: methodological assumptions and value systems, with job of all.24 At their best, university presidents Universities aspiring to technological innovation Goals and Aspirations much less attention given to sorting out feelings, are characterized as “disruptive innovators” who must be active and imaginative in fostering values and behaviors related to novel activities must lead through collaboration and cajoling, and entrepreneurship among students, both in Most large organizations state what they are like patenting things, for example. So how do not control. But most universities most of the about and what they aspire to be. These are found the classroom and in other settings, as well universities, such as our case sample of technological time select their managerial cadre—presidents, in strategic planning documents, mottos, and goal innovation exemplars, emphasize and celebrate provosts, vice presidents, deans, department among faculty members. Entrepreneurship statements, and reflect important values in the technological innovation and also accommodate chairs, and non-academic managers—from needs to be brought into academic disciplines organization. Many differences in the propensity the historic emphases of major league academia? among people who have risen to prominence and as a legitimate part of learning and action. to “do technological innovation” are reflections visibility in the world of traditional academia, of a long-established organizational culture. For want of a more elegant term, we are hereby and followed the norms and mindsets thereof • Boundary-Spanning: Industry and 22 advancing the lagniappe concept. Those readers throughout their career. However, many of the Community Partnering. Technological So what do we mean by “organizational culture?” who have visited New Orleans will understand the policies, structures and activities that might innovation, from theory to practice, works For the most part we follow the 40 years of thinking metaphor. We are hypothesizing that our study enable technological innovation are not always better if there are policies, practices and support of Edgar H. Schein21 on what constitutes this sample of technological innovation exemplars has aligned with the traditional functions and goals of for moving research and action beyond the phenomenon. To Schein and others in this field, essentially expanded its menu of what they do well, universities and require a disruptive innovator. traditional disciplinary structures as well as organizational culture exists in several layers, is by doing “just a little extra.” While retaining their crossing the boundaries between the university difficult to change once established, and influences national prominence in research, scholarship, and Those schools that are exemplars in fostering and the “external” private sector world. how people do their work and what kind of work excellent undergraduate and graduate education, technological innovation are very likely to have is valued. Culture defines what work we hold they have chosen to also, and concurrently, be had a sequential cadre of effective “innovation • Boundary-Spanning: Technology Transfer. in esteem and how we think of or construe our good at entrepreneurship, technology commercial- leaders.” For example, they may have presidents, A professional and robust technology transfer environment. For example, organizations have ization, industry R&D partnering, and all the deans, chairs, and professors who over the course function will enable the protection and legal physical and behavioral artifacts that characterize rest. Moreover, they have evolved ways to tune of their careers have been effective and productive translation of innovative research findings into work settings and practices. At another level their cultures so that all those disparate endeavors leaders in technology-oriented business. Some commercially viable intellectual property, its organizational cultures are characterized by values co-exist and sometimes even mix into a true may have started a world class company during a 25 licensure and its successful launch, via both that connote what is considered worthy work and lagniappe model of organizational functioning. sabbatical year and then returned to be an excellent startups as well as industry partnerships. what not so much. Then there areassumptions These universities exhibit the type of organizational academic administrator. These represent a growing and beliefs that operate at a more cognitive culture Lacatus characterized as enterprise, cadre of university leaders who embrace “market The above few paragraphs briefly summarize level, and might define how we think about a consisting of firm policy (particularly related to logic”26 and support the growth of entrepreneur- the challenges that universities must address to problem and what data points will be utilized. promoting innovation) but loose operational ship, technology transfer, and university-industry be technologically innovative, and implies some control, focus on market, external opportunities, research, as well as the more traditional functions While all this seems somewhat straightfor- reasons for why some universities may have and relationships with stakeholders.23 In this book and activities of academia, and most of them are ward it gets complicated when one is trying difficulty “out there” in the world of business, we will explore how and why some universities also exemplars in traditional academic activities. to tease out the characteristics of universities industry, and society. Our 12 case studies are were able to build cultures that inculcated that are excellent at technological innovation organized around the five key problems and innovation and entrepreneurship seamlessly, In our cases we looked for, and sometimes versus those that are not. One problem is that found, examples of innovation leadership like the opportunities (and the strategies, policies, and while others evolved only with great difficulty. practices universities have used to address them) universities are not unitary organizations. Each of following: (1) people in positions of authority that we have concluded are important in fostering the colleges, departments, and centers/institutes Leadership who were experientially rich and knowledgeable university technological innovation, as follows: that constitute the organizational building blocks about the “terrain” of technological innovation of the large American university are also tied to a According to a recent Forbes article, being a (in plain English, they may have done it field of inquiry or expression, each with its own university president may be the toughest leadership themselves); (2) proven leaders and effective 8 9 INNOVATION U 2.0: New University Roles in a Knowledge Economy Introduction managers in accomplishing the traditional core education has become among the fastest growing Boundary-Spanning: perspective is that they enable multidisciplinary 31 goals of the university, as well as having the curricular foci in the US.27 This has manifested University, Industry, and Community. and interdisciplinary science. Depending upon expertise and mindset to “make things happen” itself in entrepreneurship majors or minors the nature of the research foci, the work of a center more generally; (3) personal “boundary within particular colleges (e.g., often in colleges Much of the work of technological innovation may cut across departments or even colleges in spanners” in terms of their ability to move back of business or colleges of engineering), or various in research universities tends to occur at the terms of staffing and student or faculty involvement. and forth between different organizations and combinations of academic majors and minors in boundaries of, or in parallel to, its traditional Why is this boundary-spanning important? disciplines, and between the world of academia other colleges or across colleges and majors. The structures and systems. The traditional mission and The reason is that technological innovation in and the world of practical innovation and evidence that this kind of curricular exposure normal work of universities occurs in the context of the so-called “real world” rarely is confined to the business; and (4) people who got things done enhances technological innovation or entrepreneur- departments, colleges, units of academic governance concepts, methods and assumptions of a single and stayed-the-course in one or a few places as ial ventures after graduation is encouraging but and long-established systems of rewards and discipline. When talented people from different opposed to academic careerists or job hoppers. inconsistent, and seems to be a function of discrete advancement. One can devote and nourish an entire epistemologies and conceptual mindsets are brought program features.28 However, it does seem to get very successful career in academia and spend most of together around an important problem, the range Our cases of exemplary universities highlight students at least thinking about their futures within that as a solo professor in an academic department, of potential solutions gets bigger. Moreover, examples of innovation leadership. They describe a larger framework of entrepreneurial options. teaching and advising graduate students’ theses personalities and career paths, how these leaders and dissertations, doing research and publishing, technology-based companies tend to organize foster technology innovation in their universities, There are two associated trends in entrepre- executing grants and engaging one’s “invisible their R&D workforce around problems and and suggest how such individuals might be more neurship education that are having major impacts college” of like-minded colleagues.29 However, in markets, not exclusively around disciplines. They frequently discovered and supported in the context on real-world technological innovation. One is order to promote technological innovation one often seek out university research entities that of large and sometimes hide-bound universities. the increased participation of graduate students needs to rub shoulders if not actively engage in what enable wider participation across the institution. in curricular entrepreneurship programs that has become known as “team science” both within In terms of our case analyses we spent Boundary Spanning: are accelerating their involvement in founding the university and with external stakeholders.30 considerable effort documenting how our Entrepreneurship roles in startups. A second is the rapid growth Of the $65 billion of reported university research universities encouraged, enabled and implemented of co-curricular programs in entrepreneurship, team-based multidisciplinary boundary-spanning Historically, the key activity of universities for both undergraduates and graduate students. expenditures in FY 2011 around 5% involved centers, institutes, labs, or programs. One crude is to convey knowledge to students, typically via Co-curricular participation includes: forums; industry support, and this has declined a few percentage points from a few years prior. There are outcome index of how much attention is focused on readings, class lectures, modeling, lab instruction, competitions, ranging from pitch contests of many channels for companies to work with talented this issue is the number of such entities across the and discussion, especially at the undergraduate a few minutes to semester-long team business level. More advanced (i.e., graduate) students learn faculty, such as via consulting during the academic entire university. Another case variable considered planning competitions; student incubation was the extent to which involved companies had and apply the methods, procedures, and associated year and over the summer break. In addition to services; field trips; business mentors; summer a significant financial and substantive decision- epistemology for creating new knowledge, such industry- sponsored research projects, technology- work-study; clubs; and on and on. making role in the programs that are established. as via graduate theses or dissertations. Much of based companies also connect to universities via research parks, labs, research centers and institutes, this has a limited link to technology innovation, The curricular and co-curricular activities We also looked at the extent of “center-enabling” many with industry advisory committees. Some except when a student project may point directly related to entrepreneurship are burgeoning capacities at an institutional level. These might centers or institutes are heavily facilities-based to an innovation with real world applicability. nationwide. This is a major change from the involve university-level research management where significant investments have been made in situation we observed a short decade ago and staff working with faculty members as they However, when the focus of instruction is state-of-the-art instrumentation made available to on based on its diversity and potential impact, one we engage potential industry partners and build a range of users, often from different disciplines. innovation processes, such as in entrepreneurship felt deserves expanded coverage in this volume. center research programs. Some universities have One of the most important characteristics of education, technological innovation may be created senior positions and staff organizations these structures from a technological innovation accelerated. Over the past decade entrepreneurship whose responsibility it is to “make things happen”

10 11 INNOVATION U 2.0: New University Roles in a Knowledge Economy Introduction in the areas of industry research, innovation of the latter are in our case sample, and some got so on. Eventually, you will discover the extent to top-100 universities in terms of NSF research partnerships, government relationships, and started before Bayh-Dole was even passed. which an Innovation U is a living phenomenon that expenditures in FY2010, plus a sub-sample of community engagement. The expectations captures the attention of many people, and the most smaller less research-intensive institutions that and titles vary across campuses, but this kind The universities in this volume have well-run, interesting challenge that confronts the prospective nonetheless had reputations as innovators, and of centralized expediting or “treaty-making” generously staffed and mission-intensive technology change agent is to figure out who those people are had excellent normalized outcomes metrics as activity is increasingly found in universities that transfer offices. They instruct, encourage, and in his or her university, and get them in the same well (e.g., invention disclosure “batting averages”) want to do better at technological innovation. support campus inventors, regardless whether room, on many occasions, to scheme up the future. the inventors are faculty, staff or students. The • The candidate universities were organized into Boundary-Spanning: variance in technology transfer performance Case Selections: tranches of 10 institutions, starting from the top Technology Transfer across universities is considerable; all of the cases Methods and Procedures of the NSF list in terms of research expenditures. described in this volume employ myriad creative • For each tranche of 10 schools, Project Although the creation of intellectual property strategies in support of their faculty and student As noted above, this volume attempts to improve Advisory Committee members were provided is only one manifestation of a university engaged in inventors. Those approaches can be replicated; upon the “panel of experts” sample selection 32 with three performance data points: (1) a promoting innovation, it is a very important one. exemplary offices are very willing to give away technique employed in the first version normalized measure of invention disclosing; Following the passage of Bayh-Dole legislation in their secrets. In our university cases we will of Innovation U by using a multifaceted multistage (2) a normalized measure of industry research 1980 every US university had the responsibility— describe some of their replicable policies and selection process. In summary, all case study funding; and (3) the number of startups. These and new opportunities—to work with faculty practices via which their peers can do better. universities were selected from a diverse population innovators in assessing the commercial potential of of high performing research universities. Univer- metrics were developed using NSF data as their inventions, protecting the intellectual property We trust that the “five boxes” of factors that sities were stratified based on research funding. well as Association of University Technology embedded therein, and developing commercial- contribute to a viable Innovation U will enable the Raters selected cases based on a combination of Transfer (AUTM) statistics. In effect, every ization paths for the faculty invention. The latter reader to navigate the dozen cases here. However, quantitative and qualitative judgments about the university in a tranche was doing about the have ranged from direct licensing to a company if the reader is an action-oriented individual, influence of the institution’s organizational strategy same amount of sponsored research, but there or non-exclusively to companies, working with who really wants to take what is written here and and practices on producing those outcomes. The were significant disparities in innovation the faculty member (or student) to develop a embark on a change process in a favorite university, following specific procedures were followed: outcomes. Within each tranche, judges more entrepreneurial path to commercialization, the first thing that should be done is to visit or were free to “vote” for up to 3 schools. or in some cases to “turn back” the control of the talk with innovation leaders at several of our • A national Project Advisory Committee was • After adding up the vote tallies, the study sample invention to the inventor. Statistics for the field universities. It will be a somewhat disconcert- convened of eight individuals, whose current consisted of the top 12 vote getters and included: have been captured for decades by the Association ing but still enlightening experience. What will be work and careers were solidly congruent with the Arizona State University; Brigham Young of University Technology Managers (AUTM). In discovered is that in reality, the five boxes or factors aims of the project. The Committee included practitioners, researchers, former university University; California Institute of Technology; its recent FY 2012 report,33 responding institutions that have structured our cases do not entirely reflect senior managers, and generally individuals who Carnegie Mellon University; Clemson claimed totals of 14,224 new patent applications, reality in that they are not really separate. If you were knowledgeable about the project focus. University; Georgia Institute of Technology; 5,145 issued US patents, 6,372 licenses and visit, or get on the phone, you will find that the Dr. Louis Tornatzky and Dr. Denis Gray, as Massachusetts Institute of Technology; North options executed, and 705 startups formed. Over people in technology transfer are probably working leaders of the research team, participated in Carolina State University; Purdue University; most of the history of university involvement in closely with research centers and labs on licensing the Committee selection process as well. Thus Stanford University; University of Florida; technology transfer these indicators have been opportunities, the individuals who are managing 10 knowledgeable individuals from across and the University of Utah. The voting was moving upwards for the “industry,” although there the network of entrepreneurship programs can the US made the “picks” of the schools that surprisingly consistent across the 10 judges. Thus were many schools that started late and haven’t count on someone in the president’s office to be the would constitute the case study sample. 5 schools got either 9-10 votes (out of a possible quite caught up, as well as a few exemplars that featured speaker at a forthcoming incubator event, 10), and another 6 schools received 7-8 votes. an advancement campaign in the planning stage is have been leaders since the beginning. Several • Candidate universities were drawn from the benefiting from advice from industry partners, and 12 13 INNOVATION U 2.0: New University Roles in a Knowledge Economy Introduction

• This is a distinguished sample of schools even cases. Second, are change-oriented university 2 A few representative reports and papers that have 5 Some of these initiatives both launched and considering traditional academic metrics. faculty members (or department chairs, or deans) made this argument include: PCAST (2012, planned can be found in: PCAST (November, Six of these schools were in the original who think that they and their colleagues could November). Report to the President, Transformation 2012). Report to the President, Transformation Innovation U sample from 2002.34 Also, of be making a bigger innovation-based difference and Opportunity: The Future of the U.S. Research and Opportunity: The Future of the U.S. Research the 12 schools in the sample, 7 were in the 25 in their units, and are motivated to lobby their Enterprise. Washington, DC: Executive Office of Enterprise. Washington, DC: Executive Top American Universities in their multivari- administration to emulate some of the exemplary the President, President’s Council of Advisors on Office of the President, President’s Council ate scorecard, 3 were in the 26-50 grouping, policies and practices described in the cases. Third, Science and Technology; The Science Coalition, of Advisors on Science and Technology. and one was among the top 50 publics.35 are leaders in technology-based industry, whose Sparking Economic Growth: How Federally 6 See Lundvall, B.A and Borras, S. (2006). relationship with universities may not get much Funded University Research Creates Innovation, How to Read This Book; beyond hiring their graduates, or making occasional New Companies and Jobs, Washington D.C., Science, technology and innovation policy. In Who Should Read this Book gifts in advancement campaigns. We hope that the 2010, www.sciencecoalition.org/successstories/ Faberberg, J., Mowery, D.C. & Nelson, R.R. examples here will be motivational to seek out richer, fullReport.cfm; National Advisory Council on (Eds.) The Oxford Handbook of Innovation. We do have some suggestions: first of all, you longer, and more mutually beneficial relationships. Innovation and Entrepreneurship (2011, April). Oxford, UK: Oxford University Press. have read this chapter so you have some sense of the Fourth, and perhaps most important, are elected Recommendations to facilitate university-based 7 logic of the analysis and approach, and what we are State Science and Technology Institute and appointed public officials whose knowledge technology commercialization. Washington, DC: trying to convey. Second, you might want to read (2013). Trends in technology-based economic about how universities work may be based on their Department of Commerce; Tyler, J.E. (2011). the book straight through and look at each case as a development: Local, state and federal action undergraduate experience of decades past, and who Redeploying Bayh-Dole: beyond merely doing complete and separate analysis, which will tell you in 2012. Westerville, OH: SSTI. might get ideas from these cases about how their good to optimizing the potential in results of about this school and not much else. Third, you alma mater can work differently, and to the greater taxpayer-funded research. Journal of Technology 8 NSF Social, Behavioral and Economic Sciences might want to skip around and look at a particular benefit of the commonweal. Universities represent Transfer, published online: 10 September 2011; (2013). State government R&D expenditures topic (e.g., Leadership) in all the cases and see if major government and private expenditures, but Shaffer, D.F. and Wright D.J. (2010). A new increase 11.3% from FY 2010 to FY 2011. that kind of immersion best meets your interests. those expenditures can be much more targeted, paradigm for economic development: How higher Washington, DC: NSF (NSF Info Brief 14-300). Finally, the last chapter briefly summarizes some of have greater impacts on economies, and citizens’ education institutions are working to revitalize the more interesting and/or surprising commonali- 9 See NGA website: http://www.nga. life chances, and in word be more innovative. their regional and state economies. Albany, NY: ties and differences we found across the twelve cases, The Nelson Rockefeller Institute of Government, org/cms/home/nga-center-for-best- and offers suggestions about what policymakers and University at Albany, State University of NY. practices/center-publications/page-ehsw- university leaders can do if they want to enhance publications/col2-content/main-content- their own innovation footprint. The book will have Endnotes 3 National Research Council (2012). Research list/top-trends-in-state-economic-dev. succeeded, from our perspective, if we are able to Committee html; accessed on December 13, 2013. 1 Southern Growth Policies Board has been around Universities and the Future of America. provide interested parties with a path to ideas, best on Research Universities, Board of Higher for several decades as an economic policy think tank 10 practices, policies, and tools that they can implement Education and Workforce, Policy and Global National Advisory Council on Innovation connected to public and private leadership in the in their own settings, to better create and realize the Affairs, Washington, DC: The National Academies and Entrepreneurship (2011, April). southern states. Early in its history it established kind of innovation that produces new companies, Press. Recommendations to facilitate university-based a division called Southern Technology Council new jobs, and other beneficial economic outcomes. technology commercialization. Washington, (STC) which had a comparable agenda, but 4 For instance see: Mowery, D.C. and Sanpat, DC: Department of Commerce. There are several important audiences for focused more on science and technology related B.N. (2006). Universities in national innovation 11 the book. One of course are university leaders, issues. The originalInnovation U book was an STC systems. In Faberberg, J., Mowery, D.C. & See: Association of University Technology Managers. (2013). administrators and governing boards, who have project, but by dint of the familial relationship Nelson, R.R. (Eds.) The Oxford Handbook of AUTM U.S. Licensing Activity . Deerfield, IL: Association aspirations for their institution to become more between SGPB and STC it was a creature of both. Innovation. Oxford, UK: Oxford University Press. Survey: FY2012 like an Innovation U as we have described in these of University Technology Managers.

14 15 INNOVATION U 2.0: New University Roles in a Knowledge Economy Introduction

12 See: Yin, R.K. (1979). Changing Urban transfer and commercialization partnerships. 23 Lacatus, M. (2013). Organizational culture inventions often end up having larger and more Bureaucracies. Lexington, MA: Lexington Washington, DC: Innovation Associates in contemporary university. Procedia – Social diversified academic careers. Robert Langer, Books. This is the classic description of how, (based on NSF Grant No. EEC-0413603). and Behavioral Sciences, 76, 421-425. discussed in the MIT case, is a great example. over time, new organizational practices and 18 24 30 policies being “routinized” into standard National Science Foundation, National Asghur, R. (2013, November 15). The toughest Interest in and support of a move toward a more and accepted ways of doing business. Center for Science and Engineering Statistics, leadership job of all (and it’s not what you think). team and interdisciplinary model of conducting FY2011. Table 14. Higher education R&D Forbes. research within universities, often referred to as 13 Tyler, J.E. (2011). Redeploying Bayh-Dole: expenditures, ranked by all R&D expenditures, “team science,” has grown in both academic and 25 A fascinating non-technical article was beyond merely doing good to optimizing by source of funds: FY2011. Table 15. Higher policy communities. For a scholarly review of this published in (“Get Rich U” the potential in results of taxpayer-funded education R&D expenditures, ranked by all The New Yorker topic see: Stokols, D., Hall, K.L., Taylor, B.K. and by Ken Auletta) that focused on Stanford research. Journal of Technology Transfer, R&D expenditures, by R&D field: FY2011. Moser, R.P. (2008). The science of team science: published online: 10 September 2011. and the notable leadership behaviors of its An overview of the field and introduction to 19 current president (and serial entrepreneur) Thomas Kuhn’s rich description of this process the supplement. American Journal of Preventive 14 John Hennessy. Retrieved from http://www. National Advisory Council on Innovation and is still a classic. See: Kuhn, T. (1962). The Medicine, 35, S77-S93; National Institute of Entrepreneurship (2011, April). Recommen- Structure of Scientific Revolutions. Chicago, newyorker.com/reporting/2012/04/30/1204 Health supports an internal and external effort to dations to facilitate university-based technology Ill.: University of Chicago Press. 26 Berman, E. P. (2012). promote team science. Retrieved from: http:// commercialization. Washington, DC: Creating the Market 20 ombudsman.nih.gov/collaborationTS.html Department of Commerce. There is a large literature that has attempted University. Princeton, NJ: Princeton University to summarize these conceptual and empirical Press. 31 Gray, D.O., Boardman, C. and Rivers, D. (2013). 15 For example see the following reports or links: issues, for example: Tornatzky, L. and Fleischer, 27 Cooperative research centers as government Office of Innovation and Entrepreneurship, M. (1990). New York: Lexington. Ch 2; p. Finkle, T.A, Kuratko, D. F., Goldsby, M. G. (2006). An examination of entrepreneurship centers policies, industry strategies and organizations: Economic Development Administration (2013, 9-25; Marinova, D. and Phillimore, J. (2003). Emerging theory and practice for technological in the United States: A national survey. Journal of October). The Innovative and Entrepreneurial Models of Innovation. In Shavinina, L.V. (2003). innovation. In Boardman, C., Gray, D.O. & Rivers, Small Business Management. Vol. 44(2), 184-206. University: Higher Education, Innovation and The International Handbook of Innovation. NY: D. (Eds.) pp. 3-33. Cooperative Research Centers Entrepreneurship in Focus. Washington, DC: Elsevier. p. 44-54; Pavitt, K. (2006). Innovation 28 Rideout, E. and Gray, D. (2013). Does and Open Innovation: Policies, Strategies, and U.S. Department of Commerce; Innovation Processes p. 86-114. In Fagerberg, J., Mowery, Entrepreneurship Education Really Work? Organizational Dynamics of the New Science and Excellence, Best US Universities for Innovation D.C. & Nelson, R.R. (Eds). Oxford Handbook of A Review and Methodological Critique of Engineering Management. NY: Springer Press. Transfer: http://www.innovationexcellence. Innovation. New York: Oxford University Press. the Empirical Literature on the Effects of com/blog/2011/12/14/best-us-universities- 32 Office of Innovation & Entrepreneurship 21 University-based Entrepreneurship Education. Schein, E. H. (1990). Organizational Economic Development Administration (2013, for-innovation-transfer/; University Economic Journal of Small Business Management, Culture. American Psychologist, Volume 45, No.2, Development Association, Awards for Excellence Special Issue: Measuring the Impact of October). The Innovative and Entrepreneurial 109-119, February; Schein, Edgar H. (2011). 2012: http://universityeda.org/value-to-members/ Entrepreneurship Education, 51(3), 329-351. University: Higher Education, Innovation best-practice-sharing/awards-of-excellence/ Organizational Culture and Leadership. 5th and Entrepreneurship in Focus. Washington, awards-of-excellence-2012-finalists/. Edition. New York: John Wiley and Sons; Schein, 29 This book is not about that world, except for DC: U.S. Department of Commerce. Edgar H. (2009). The Corporate Culture Survival the fact that faculty members’ involvement in 16 33 Resnick, D. P. (2012). Innovative Guide. New York: John Wiley and Sons. technological innovation usually derives from Association of University Technology Universities: When Why and How? Journal a very successful academic career. Moreover, Managers. AUTM U.S. Licensing Activity 22 The term has Cajun ancestry, and is often of Educational Planning and Administration. faculty members who diversify their careers by Survey: FY2012. Deerfield, IL: Association of used in Louisiana to connote “give a little Volume XXVI, No.2, April, 331-341. getting involved with industry partnerships, University Technology Managers. August, 2013. extra”, like the baker’s dozen of pastry. starting companies, or commercializing 17 Innovation Associates (2007). Technology 16 17 INNOVATION U 2.0: New University Roles in a Knowledge Economy

34 The following six universities were also included in the first version ofInnovation U.: Carnegie Mellon University, Georgia Institute of Technology, North Carolina State University, Purdue University, Stanford University, and the University of Utah. Arizona State University* 35 The Center for Measuring University Performance. The Top American Research Universities. 2010 Annual Report. Arizona State University, Tempe, AZ. Retrieved Arizona State University (ASU) has developed The climb of the Normal School to university from: http://mup.asu.edu in a context of superlatives. For example, it is one status, and a more technologically oriented mission, of the largest universities in terms of enrollment was slow and occurred well after statehood. In the in the United States and is located in one of the 1920s admission requirements were strengthened largest states that has also experienced some of the (needing a high school diploma) and Tempe Normal fastest population growth in the country. ASU also School became Tempe State Teachers College and has a President who has arguably published and began offering a 4-year degree. Enrollment was commented the most among any current academic still less than a thousand. In the 1930s the school CEOs about new paths that a university should be sought and achieved its first accreditations and taking to address the challenges of the 21st century. began offering a masters degree (in education). Enrollment was still in the low thousands during The initial precursor to Arizona State the depression years, but accelerated after World University—the Territorial Normal School at War II. Governor Osborn approved a name change 1 Tempe—was established in 1885, when Arizona to Arizona State College in 1945, as the school was a territory, and 27 years before it became a began to accommodate the growth spurt enabled state. The Normal School era was focused almost by the GI Bill. Temporary housing called Victory entirely on two-year teacher training, and led by Village was erected to accommodate married a principal, John Mathews, who stayed for 30 veterans with kids, as enrollment increased from years. When the Normal School was founded the 553 in 1946 to 4,094 in 1949. During the 1950s, Arizona territory had a population of less than the school fought (and mostly won) the battle 70,000. Between statehood in 1912 and 2010 to become a more expansive university, adding the state experienced continued double-digit colleges of Applied Arts and Science, Liberal Arts, population growth during each decade, most Education, and Business and Public Administration. notably in the period between 1940 and 1960. Many found themselves in Arizona as members of The next step, to university status, involved a the military, or as producers of war goods, and had large-scale petition effort and statewide campaigning remained or returned to the state later on. Many by students, alumni, and faculty members (including were of course attracted to trading six months the participation of Frank Kush, a very successful of winter gray for many more months of sun. football coach2), leading to a ballot initiative in the November 1958 election. Opposition was

18 * This case was written by Elaine Rideout, Drew Rivers, and Louis Tornatzky. INNOVATION U 2.0: New University Roles in a Knowledge Economy Arizona State University apparently significant from University of Arizona In FY2011 the university reported3 research raison d’etre and scholarly work has been so focused education system, explosive population growth, advocates. Proposition 200 passed by a 2 to 1 expenditures of $355.2 million, mostly concentrat- on innovation and the role of the university in the challenges in immigration and social services, and margin, and the school became Arizona State ed in engineering and the life sciences, and ASU larger society. To really understand ASU one has a reliance on the state of Arizona for the lion’s University by executive order in December of 1958. had moved to a rank of 62nd. Rising from 90th to understand the impact of Dr. Michael Crow, share of its funding. In 2010 the Phoenix metro ASU has always been a “striver” institution that to 62nd in 20 years is a notable accomplishment who became president in 2002. The reconfigu- area ranked 14th in the US with population of has reinvented itself many times and still does. and the pace of R&D growth seems to be still ration of ASU as a new breed of metropolitan 4.2 million people.4 Phoenix placed among the increasing. Self-reported data from ASU indicate research university pervades nearly every aspect top five metropolitan areas in population growth During the half-century since becoming ASU that the current total is closer to $400 million. of the institution, and follows from Crow’s between 2000 and 2009, jumping 33% in the the institution has grown in both student headcount thinking and writing about the New American period.5 However, unlike many other metropoli- (72,500 in Fall, 2011), stature, and mission richness. In addition, the ASU faculty has gone through University, which are explained below. tan research universities, ASU is the sole bachelor’s Enrollment was 26,425 at the Tempe campus in a significant period of intellectual enrichment. degree granting university in the metro area, and 1970, and 37,248 in 1980. ASU total enrollment Among the over 1,800 tenure track faculty Foundations and Context of the ASU therefore bears significant educational responsibility. of 42,952 in 1990 now included a West Campus members, and the thousand research professors Re-design. As an alternative approach to the student body of 4,150. Ten years later in 2000, the and clinical professors, are found the following: design and operations of a large research university, The term “ossification” is often employed by 50,365 enrollment included the Main campus, the two Nobel laureates; six Pulitzer Prize awards; a the thinking of Crow (and others) is particularly Crow to describe the general lack of variation in West Campus, and also a new Polytechnic Campus. MacArthur Fellow; 11 members of the American at odds with the so-called “Gold Standard” model institutional designs among American research By 2010, the enrollment had been expanded by the Academy of Arts and Sciences; 11 members of the that dominates mainline thinking about how universities. A globally competitive market place, addition of a Downtown Campus, which had grown National Academy of Sciences; nine members of American research universities should operate. diminishing public investments in education, from 6,229 in 2006 to 17,551 four years later. the National Academy of Engineering; 21 IEEE Some of the features of the Gold Standard derive and the increasing specialization of knowledge, Fellows; 25 Guggenheim Fellows; five Sloan from the German university model of the 1900s, make the Gold Standard model even less viable. These various campuses are not simply replicas Research Fellows: three Royal Society Fellows; that was championed by American institutions such of the Tempe main campus. Each campus expresses 65 AAAs Fellows; two members of the Institute as Johns Hopkins at the time, and rapidly became Implementing the New American University novel goals and visions, serving distinct markets with of Medicine; four members of the National the norm among elite universities. Some of the model at ASU has redefined innovation and different educational services and R&D activity, Academy of Education; eight American Council of key features included a discipline-based structure, entrepreneurship in a university context. This has but all within the larger themes that define ASU. Learned Societies Fellows; and 19 Alexander Von highly selective admissions practices, a focus on included dramatic innovation in the organizational theory-driven discovery, an emphasis on quantitative configurations of majors, departments, and colleges, One area that has changed most profoundly Humboldt Foundation Research Prize winners. methodologies, polite disengagement from the along with the flourishing of entrepreneurial in the 50-plus years since alumni, faculty, and At an institutional level, ASU has also everyday world, and limited concern for social and mindsets on how faculty can strike out in different students rallied in support of university status increasingly received rating and ranking economic applications of research and scholarship. intellectual directions to better serve students and is that ASU has grown from modest beginnings accolades. Thus inU.S. News & World Report’s communities. Innovation is not just the next process to be a significant research and technology 2013 “Best Graduate Schools” rankings ASU While Crow had been developing and after scientific discovery in some linear model, performer. ASU received its first external research is noted for its programs in law, education, implementing many of his ideas about alternatives to but it also connotes the redesign of organizational grant in 1956, in the Department of Physical business, public affairs, and fine arts. the Gold Standard model prior to coming to ASU, systems and curricula. Entrepreneurship in the Sciences, and awarded its first PhD degrees in the Arizona situation presented an environment Crow model surely applies to the building of 1963. As recently as 1992 ASU was reporting University Culture: for implementing change in a much larger context. startup private companies, but equally important $69.3 million in research expenditures, which Goals and Aspirations Within Arizona and greater Phoenix, ASU is its application in the reinvention of social placed it at 90th nationally, barely in the magical faced increasing social and financial challenges systems to do science and education differently. “top 100” of research institutions. Seven years Perhaps more than any other institution in this that while nominally “external” were seen by the prior, this total had been only $28.9 million, thus volume, Arizona State has had the opportunity Crow administration as an important impetus for The ASU University Design Team: Goals and it had doubled in a relatively short time period. to be led by a chief executive whose professional change. These included an under-performing K-20 Aspirations. As a sounding board for the change

20 21 INNOVATION U 2.0: New University Roles in a Knowledge Economy Arizona State University processes launched by President Crow, in 2002 a public good; one that does not just engage 6. Transcend disciplinary limitations university-wide, to external boundary-spanning University Design Team (UDT) was established. in community service, but rather takes on in pursuit of intellectual fusion; units (like Arizona Technology Enterprises, This was a campus-wide group of administrators, major responsibility for the economic, social, ASU’s technology transfer unit) and start-up 7. Socially embed the university, thereby deans, and distinguished faculty, with a mission and cultural vitality of its community. accelerators (like Venture Catalyst) that connect advancing social enterprise development to provide input to the process of re-conceptual- the university to local and national businesses. through direct engagement; izing and redesigning ASU as a New American Four University goals and eight design ASU as a Federation of Colleges and Schools. University. This led initially in 2004 to a widely aspirations serve as guideposts for the ongoing 8. Advance global engagement. To support agility and rapid decision-making and circulated report from the Office of the President6 re-creation of ASU. While the exact wording to encourage organizational entrepreneurship, (One University in Many Places) that has been has undergone changes, the four basic goals as So, how did the goals and aspirations ASU undertook a bold redesign of its colleges and supplemented and expanded over the past several re-stated by President Crow in a 2010 paper are: framework—along with subsequent policies, departments, essentially flattening and distribut- years. Although the basic premises and goals of the urgings, and intentional directives—change the ing the organizational structures. This redesign vision have remained relatively constant between 1. Access and quality for all; organizational environment at ASU? To stretch an analogy, ASU moved from Eastern Europe process focused on four main objectives: 2004 and 2010 the “design imperatives” have been 2. Becoming a National comprehensive 7 circa 1949 to a bubbling modern market economy softened to “design aspirations.” They are change university by 2012; • To build the university around strong of ideas and actions. The Gold Standard of the goals for what is happening operationally at ASU. entrepreneurial colleges and schools; 3. Establish national standing for university model is structured primarily around The New American University is to be egalitarian colleges and schools in every field; disciplinary traditions of permissible inquiry and • To devolve intellectual and entrepreneurial in its admissions practices, solutions-focused, and preferred methodologies, circumscribed within responsibility to the level of the college 4. Enhancing our local impact generally designed to maximize social impact. Crow impermeable boundaries, and captive to the status and school; and social embeddedness. often characterizes the New American University as quo or incremental change at best. To stretch these having breadth of functionality and an outward or • To create a design that allows colleges and Eight “design aspirations” reflect the vision analogies a bit more, and following Kuhn’s analysis external focus. The New American University was schools to grow and prosper to the extent of the New American University and function of the structure of paradigm-changing scientific to be outcomes driven, innovating in new products 9 of their intellectual and market limits; as guides for the many activities that have revolutions, the ASU redesign initiative, with its and processes within an entrepreneurial mindset. emphasis on transcending disciplinary limitations, been undertaken over the past decade. Crow • To create a federation of unique colleges, schools, Most importantly, the New American University embracing the community and economic setting introduced these in his 2002 inaugural address academic departments, and interdisciplin- was to be innovative and entrepreneurial about its of the institution, and conducting “use-inspired and repeated them in the One University in Many ary research centers (“colleges and schools”) as own structures and processes. The expectation research,” seems an ideal environment for creating Places report. They have remained a consistent the foundation of the premier metropolitan was that the New American University was to be 8 entities or “enterprises” that are transdisciplinary element of the change process at ASU: research university of the twenty-first century. experimenting with itself at the same time it was and paradigm-changing in nature. offering unprecedented opportunities for students, 1. Embrace the cultural, socioeconomic, The ASU redesign has organized departments To institutionalize a culture of academic faculty and staff to sample new combinations of and physical setting of the institution; into a “federation of schools and colleges” or a enterprise, ASU introduced a range of intellectual substance. So, the vision from the “school-centric” model.10 A college or school is 2. Become a force for societal transformation; programs, policies, initiatives, and structural perspective of 2004 was: now “a unit of intellectual connectivity between elements. These changes are conceived within 3. Pursue a culture of academic enterprise faculty and students organized around a theme … an institution that measures its academic an innovation systems framework, involving the and knowledge entrepreneurship; or objective.” These definitions seem flexible, quality by the education that its graduates alignment of design elements across multiple referring to intellectual connectivity rather than have received rather than the academic levels, from transdisciplinary departments to 4. Conduct use-inspired research; something more structural. In some schools credentials of its incoming freshman class; programs and policies that motivate use-inspired and colleges faculty members organize around one at which researchers, while pursuing 5. Focus on the individual in a milieu innovation among students and faculty “faculties” rather than departments. Each faculty their scholarly interests, also consider the of intellectual and cultural diversity; 22 23 INNOVATION U 2.0: New University Roles in a Knowledge Economy Arizona State University member may choose a primary and secondary diversity of schools and campuses of “equal quality President Crow’s philosophy of universities Institute for High School Journalism, and the New faculty group. At the graduate education level, and aspiration.” Each campus is comprised of as enterprises, and key contributors within Media Innovation Lab. He also expanded the faculty members could be part of several faculty related but distinct colleges and schools, with little innovation systems, is reflected in his leadership school’s student television newscast, led the design groups in which they are qualified to supervise hierarchy across campuses. The UDT recognized history. At Columbia University he was Professor of a new undergraduate curriculum, and developed graduate work; faculty members are not limited the importance of language in shaping culture, and of Science and Technology Policy in the School of a new intensive professional master’s program. to a single department. When this graduate has been deliberate about referring to campuses by International and Public Affairs, and also served as Teams and boards of directors also exhibit a education model launched in 2007, ASU noted name rather than using a traditional nomenclature Executive Vice Provost responsible for Columbia’s transdisciplinary and cross sector orientation. The a 72% rise in listings of graduate faculty available like “main” and “satellite.” ASU’s four campuses research enterprise and technology transfer University Design Team involved faculty members to supervise in doctoral programs across the include Tempe, Polytechnic, Downtown Phoenix, operations as well as interdisciplinary program and administrators from across ASU’s various university as departmental participation expanded. and West. Each is special in its own way, but the development. While at Columbia, Crow showed departments and its four campuses. The executive structures and substantive compositions of each a strong orientation toward technology transfer, team at the technology transfer office, Arizona Some departments were fused with other has generally followed the goals and aspirations boundary-spanning partnerships, and education Technology Enterprises (AzTE), has extensive departments or dismantled altogether. For example, established at the onset of the ASU change process. expansion. According to the Columbia News the College of Human Services was de-established article announcing his departure,11 under Crow’s experience in the private sector in areas of research with departments dispersed to other colleges and Despite the intentional diversity across the leadership Columbia consistently ranked in the and licensing for the life sciences and physical schools. Traditional departments such as biology, university, evidence of ASU’s overall mission, top three among US universities on income from sciences. The CEO of AzTE is an accomplished sociology, anthropology, and geology were elimi- goals, and design aspirations can be found in the patents and licensing. Crow played instrumental patent attorney and former colleague of Crow from nated or reconfigured. Ultimately 23 interdiscipli- language of how colleges and schools describe roles in creating several research centers and Columbia University. The Board of Directors for nary and transdisciplinary colleges and schools themselves. While units have been empowered institutes, including the Columbia Earth Institute the ASU Foundation includes a mix of successful emerged. For example, the School of Sustainable to pursue entrepreneurial and intellectual goals, and the Center for Environmental Research and entrepreneurs, high-level industry executives, Engineering and the Built Environment was formed elements of the New American University model Conservation, as well as the Center for Science and ASU administrators. Similarly, the Board of from elements within the Department of Civil and seem to color the mission and goals of each Policy and Outcomes in Washington, a think tank Directors for ASU’s Research Park—a 320-acre park Environmental Engineering and the School organization, signifying a shared culture and dedicated to linking science and technology to that offers business training, cooperative research, of Construction. sense of purpose across campuses, schools and societal outcomes. Crow was also instrumental in and contract research services to corporate residents units. What is not transparent is the extent to developing Columbia’s online education strategy. —is a balance of public and private sector leaders. Further, each college or school is responsible for which these rich program descriptions reflect The ASU model is perhaps this review’s richest its own entrepreneurial and innovation activities, the reality of how programs actually operate. Leaders at ASU show similar qualities. The and competes nationally and internationally with dean of the College of Technology and Innovation example of how to build an Innovation U from peer colleges and schools. This effectively diffuses Leadership also leads one of the college’s cross-sector scratch—from the top down via inspired and these programs beyond engineering and business collaboratories, and has a history of working charismatic leadership. The approach required the In an institution of 72,000 students, thousands schools. For example, the College of Nursing with private sector organizations on innovation creation of a campus-wide entrepreneurial of faculty and staff, and four campuses there and Health Innovation offers a Master of Health and technology issues. Similarly, the dean of “ecosystem” that would encourage and nurture are many examples of leaders and leadership Care Innovation degree that “is designed to bring the School of Engineering and the dean of the the emergence of radical innovation at both being played out. Nonetheless, the transdisci- together information from innovation and change School of Business each have backgrounds that the individual and institutional levels. plinary and outward reaching culture of ASU is theory, leadership, entrepreneurship, application involve positions in industry, with the later having reflected in many key leaders and teams. Further, By making the university into an technology, and system-design programs, to create co-founded a successful start-up. The dean of the there is evidence of leaders with a history of entrepreneur itself and thereby empowering innovative solutions to the challenges in health care.” Walter Cronkite School of Journalism and Mass intrapreneurship and/or entrepreneurship. every level of the university community Communication created the Knight Center for At the campus level the design process aimed to be entrepreneurial, we have modeled Digital Media Entrepreneurship, the Cronkite to create “one university, many places” with a behavior for other higher education

24 25 INNOVATION U 2.0: New University Roles in a Knowledge Economy Arizona State University

institutions and become a place that at the college, department, program, course, and training, and mentorship. Once the venture learning in developing a social enterprise plan. empowers individuals to be entrepreneurial. individual actor levels. For students, entrepreneur- is launched, students, faculty, and community • Entrepreneurship for Engineers. The Fulton —ASU website ship at ASU is like learning a new language via the members have the support and assistance of School of Engineering offers a variety total immersion method—many avenues exist for incubators/accelerators and business support of courses to undergraduate engineers How did a huge university transform itself any student to gain the entrepreneurial knowledge, services. In sum, entrepreneurship education at interested in innovation, technology, to create a culture of innovation permeating its skills, and connections they need to pursue new ASU involves equal focus on three approaches: product development, entrepreneurship, entirety? The approach involved five critical ideas to address global challenges (sustainability, and intrapreneurship, including: Launching a strategies: access to education, quality of life, etc.). • Curricular. Course-based learning related to getting a credit, completing a major or a Technology Venture; Intellectual Property for • Create the structural landscape—the new Boundary Spanning: minor, or meeting a degree requirement; Technology Ventures; Operating a Technology organizational structures (more than 31 new Entrepreneurship Venture; Entrepreneurship Practicum; and colleges and schools created in the last 7 years), • Co-Curricular. Activities that are offered or Engineering Projects in Community Service new facilities, spaces, and collaborations; Of all the university reinvention at ASU the enabled by ASU organizations but which are (EPICS). In the latter, EPICS classes partner no-one-path-fits-all approach to entrepreneur- generally separate from courses and degrees student teams with not-for-profit organizations • Expand interactions, networking, ship education is singularly novel. Other (e.g., a club, a business plan competition); locally, nationally, and globally to promote communications, and connectivity both universities create majors and minors and degree social entrepreneurship and technology- internally and with the outside world; • Extra-Curricular. This includes activities pathways. ASU has institutionalized the reality that may be “outside the walls” in location based innovation. In addition, the Fulton that any knowledge area “provides a base for • Adapt quickly to changing opportunities, and and are likely to be “real business” in terms School of Engineering is one of twelve US innovation.” Entrepreneurial skills give you the the needs and concerns of students and faculty; of intent and desired outcomes. universities to offer the Grand Challenge freedom and the support to fill the voids you see Scholars program to undergraduate engineering • Recognize and reinvent failures, and be in your community—whether those voids are Curricular Programs students. Students select a grand challenge responsive to new and emerging industries; cultural, technological, social or economic. area, conduct research, enroll in an interdisci- ASU appears to be the only university that plinary curriculum, take Entrepreneurship for • Link new knowledge to action in the real world; Entrepreneurship education at ASU is requires all entering freshmen to take an introduc- Engineers, participate in a global experience, comprehensive because it takes a pipeline approach tory entrepreneurial course (ASU 101: The ASU • Embrace a portfolio of experimentation and do a service-learning project. to entrepreneurial development. At each stage Experience). The course introduces students to approach: seed a thousand flowers to in the journey an innovation takes from idea to ASU and to New American University concepts, • GlobalResolve. The College of Technology see which bloom most brilliantly. execution, there are structures, knowledge, and and “plants the seeds of interest” that might and Innovation offers a Product Design for Illustrative of all of the above, four years after resources to facilitate that journey. For example, encourage students towards entrepreneurship. the Developing World course that engages Crow took office ASU’s financial commitment student ideas are cultivated in courses and seminars ASU students in projects that directly improve ASU offers dozens of entrepreneurship to entrepreneurial reinvention met the matching- where instructors provide entrepreneurship the lives of people throughout the world. courses, depending on the particular listing. The fund requirements for a grant from the Ewing education by building the capacity to innovate ASU students and faculty collaborate with following are illustrative and notable examples: Marion Kauffman Foundation, America’s into their curricula. Students work with scholars international universities, residents of rural from any number of programs and departments villages, local governments, financial institutions, premier foundation supporting university-based • Social Entrepreneurship. Offered by the organized around pressing issues, with a focus entrepreneurship. The Kauffman Campus award Nonprofit Leadership and Management and non-governmental organizations (NGOs) to on radical innovation and entrepreneurship. gave ASU the critical resources needed to catalyze Department and taught in downtown Phoenix, develop and disseminate no-tech, low-tech, and For students developing a plan of action there the process of bringing entrepreneurship out of it’s an in-depth study of social entrepreneurship, high-tech solutions that address pressing public are workshops, experiential learning opportuni- the business and engineering schools to infuse it including how ideas are formulated, construc- health or environmental needs. Past successful ties, and starter grants. For students ready to campus-wide. Six years afterwards that infusion ted, and implemented. It includes experiential ventures to launch from GlobalResolve include of entrepreneurship education has made inroads launch a venture there are grants, office space, Daylight Solutions, which created the Aura 26 27 INNOVATION U 2.0: New University Roles in a Knowledge Economy Arizona State University

Light, a device that uses the waste heat from A. Fulton Schools of Engineering (Technology (the mini-grant Entrepreneur Advantage who are interested in entrepreneurship, cooking embers to create electricity. Entrepreneurship), and the Lodestar Center for Project). Edson winners (20 each year) are also and hosts events and activities to promote Philanthropy and Nonprofit Innovation in the provided office space in the Edson Accelerator, entrepreneurship among the student body, • InnovationSpace/Collaborative Design College of Public Programs. In addition, the which is located in the SkySong innovation broaden student skillsets, and widen student Development. The Herberger Institute for Certificate in Knowledge Entrepreneurship and facility. To date, over $1 million has been networks. The latter provides a conduit Design and the Arts offers a course that Innovation, which provides entrepreneurship awarded to student teams with innovative for MBA students to access entrepreneurial brings together ASU students from business, training from basic to advanced, is offered venture ideas. Over the last six years, 102 resources, network with prominent engineering, industrial design, and visual to students of all majors. student ventures and projects have been community entrepreneurs, and share ideas. communications design to create sustainable, funded and 19 companies have been formed socially responsible, useful and economically • Degrees. Undergraduate degrees in entrepreneur- from ASU inventions and technologies. • Innovation Advancement Program and Lisa feasible products for large and small clients. ship are offered in arts, design, engineering, Foundation Patent Law Clinic. The Sandra One such partnership has involved the business, and healthcare. Specifically, the W.P. • ASU Innovation Challenge, Health Innovation Day O’Connor College of Law sponsors both Phoenix Fire Department, which participated Carey School of Business confers the Bachelor Challenge, and p.a.v.e. The two Challenge programs, which provide legal and consulting in the creation of a new generation of of Science in Management (Entrepreneurship); programs and the Performing Arts Venture services to students seeking counsel. The Clinic self-contained breathing apparatus, or SCBA. the College of Technology and Innovation Experience (p.a.v.e.) are funding competitions provides student entrepreneurs with patent (Bachelor of Science and Minor in Technological for undergraduate and graduate student teams prosecution, licensing, and litigation services. • Innovation Advancement Legal Clinic. ASU Entrepreneurship and Management); and the who have an innovative idea that could “make students in law, the sciences, engineering Herberger Institute for Design and the Arts a difference in our local or global community.” • BioDesign Impact Accelerator. Hosted by the and business help community entrepreneurs (Bachelor of Arts in the Arts or Bachelor of The Arts program provides both students Biodesign Institute, this accelerator facilitates commercialize technologies. Arts in Design Studies). Graduate degrees in and faculty with resources to pursue arts the development of valuable innovations entrepreneurship are offered by the School of entrepreneurship. Students can win grants by nurturing new technologies through key • Digital Media Entrepreneurship. The course is a Letters and Sciences (Doctor of Behavioral of $500-$5,000. The Health and General stages of development and moving them into dual offering of the School of Management and the private sector once they are viable. the Cronkite School of Journalism and Mass Health); the Ira A. Fulton Schools of Innovation challenge programs award transdisci- Engineering (Master of Science in Engineering plinary student teams with the best ideas Communication. Students become familiar • The Spirit of Enterprise Center. This Center is with the latest developments on the digital with a concentration in Enterprise Systems for addressing social, cultural, or economic located in the WP Carey School of Business. media landscape while learning the essential Innovation and Management); and the College challenges. Student proposals must include a It engages student teams with community principles of entrepreneurship necessary for of Nursing and Health Innovation (Master workplan, a budget, and support from a willing entrepreneurs to address ongoing challenges/ them to forge their own sustainable niche within of Science in Clinical Research Management faculty mentor. Students can win up to $10,000. opportunities and celebrates entrepreneurship and Master of Healthcare Innovation). by hosting annual Spirit of Enterprise Awards. it. The course is a part of the Knight Center • Sun Devil Entrepreneurship Network. This for Digital Media Entrepreneurship, and has program links local small businesses with Co-Curricular Programs Extra-Curricular Programs its own lab and office space in the digital media the student talent base at ASU. Interns of wing of the Cronkite School’s new state-of- • Edson Student Entrepreneur Initiative. All all majors and interests learn professional In 2010 ASU launched a Venture Catalyst students who take entrepreneurship courses the-art complex in downtown Phoenix. skills and gain work experience working program based at the new SkySong facility at ASU may build on that work by entering with professionals and entrepreneurs. in Scottsdale. This is described on the ASU • Certificates. Certificates in entrepreneurship are the ASU Edson Student Challenge. Both Foundation website as “an international business offered by the W.P. Carey School of Business undergraduate and graduate students can • Student Clubs. Two active clubs are the (Automotive Entrepreneurs and Leaders, and innovation center” that has been designed apply for and win grants ranging from $1,000 Entrepreneurs@ASU student group and “as a global focal point for technological Knowledge of Entrepreneurship and Innovation, to $20,000 to help develop and launch the MBA Entrepreneurship Society. The Small Business and Entrepreneurship), the Ira innovation, cross-disciplinary collaboration their business, social, or non-profit ventures former unites students from all majors and expansion of world trade.” It is also:

28 29 INNOVATION U 2.0: New University Roles in a Knowledge Economy Arizona State University

…creative architecture [that] accommodates based ventures where intellectual property is assumed to be 6-36 months in duration with Energy Collaboratory is a partnership with the 1.2 million square feet (112,000 square a key part of the value proposition. Winners compensation negotiable. Positions being filled Salt River Project (an energy provider in the meters) of high-tech commercial office must locate their enterprise for a six-month would be at the level of Chief Executive Officer, Phoenix metro area) to award grant funding space, displays of tenants’ most innovative acceleration process at either SkySong or Chief Financial Officer, Chief Technology for research and professional development in technologies, multimedia-rich pedestrian facilities at Northern Arizona University. Officer, and Senior Board member. renewable energy fields. Other efforts under areas, retail space, restaurants and The winning teams receive: $25,000 in cash; the CTI umbrella include the GlobalResolve 324 beautifully designed apartments. a dedicated acceleration process; access to Boundary Spanning: Program described above. Locally, CTI has SkySong’s tenants can live, work and mentors; fast-track licensing arrangements University, Industry and Community partnered with the City of Chandler (where play in this creative, connected enclave. with the institution that is the source of the CTI and the Polytechnic Campus are ASU’s goal of enhancing local impact as technology; and access to co-working facilities. located) to create the Chandler Innovation well as its design aspirations like leverage our The facility itself is a rich venue for collabo- Center. In addition to providing access to place, transform society, be socially embedded, ration among students, faculty, community • Techiepalooza. An intensive networking event ASU courses, the Center offers multi-purpose and engage globally, are integrated into the members, prominent entrepreneurs, and that involves speakers, panels, networking, and engineering and proof-of-concept lab space. mission statements, programs, and initiatives corporate executives. The facility supports up to 500 attendees over an intensive 7-hour across many of the university’s organizational ventures of every size and stage of development period. ASU sponsors draw heavily from career • College of Public Programs. The outward units. This section of the report will focus on and serves all-comers including faculty and student centers and services across the campus locations. focus of this college is described clearly in community partnerships that are not particularly ventures. ASU student companies in the Edson an address by the dean: • Rapid Startup School. The program is open focused on student entrepreneurship per se. Accelerator, for example, initially receive help to entrepreneur teams and follows the Lean Across the four schools and nine research from a “first mentor” from the Venture Catalyst Launch Pad approach developed at Stanford According to ASU’s Community Connect— centers that make up our College, we are team members, who are also based on-site. University. It is conducted over 9 weeks, with the portal to ASU’s community connections— preparing students for lives of community “Arizona State University has 491 community The Venture Catalyst program is led by an each short class session supplemented by 10-15 engagement and service while faculty outreach programs in 174 locations, offered by 121 Assistant Vice President for Innovation, Entrepre- hours in the field. A military, defense, and pursue use-inspired research aimed different units, totaling 753 outreach opportuni- neurship, and Venture Acceleration. This person veteran version of the program is also offered at making our communities more ties.” Several examples of ASU’s boundary had started two companies, advised others, worked to teams with background and startup ideas prosperous, healthy, and resilient. spanning efforts and initiatives appear below. in venture capital, was Director of a Venture that are focused on the defense industry. Several examples back up this statement. The Accelerator in Dublin and joined ASU in 2011. • • Entrepreneur Office Hours. This appears akin to College of Technology and Innovation (CTI). Lodestar for Philanthropy and Non-profit CTI operates five collaboratories that “bring Key program components and programs “entrepreneur in residence” programs in which Innovation has a mission “to build the capacity faculty, students and external partners together of Venture Catalyst in the first full year of a seasoned entrepreneur is made available for a of the social sector by enhancing the effective- to solve real problems, build the workforce of operations at SkySong include the following: set number of hours and student entrepreneurs ness of those who lead, manage, and support the future and develop innovative solutions.” make appointments for a problem-solving nonprofit organizations.” The center was These collaboratories offer local, regional, • Edson Accelerator. The Accelerator offers session, but here the entrepreneurs are founded as a collaboration between ASU and and national partners consulting services, funding, office space and mentorship to student members of the Venture Catalyst staff. the W.K. Kellogg Foundation and works with professional development, and training entrepreneurs and faculty. Core support of the local and regional foundations and businesses. • Matching Startup Companies with Senior services. For example, the Aerospace and program was enabled by a $5.4 million gift. Through research and education, the Center Management Talent. This program activity helps Defense Research Collaboratory involves a provides non-profit leaders with knowledge • Furnace Accelerator. This starts with a place senior (15 years or more) management partnership with General Dynamics to test and tools to improve their effectiveness in competition that is open to entrants from talent in early stage ventures that need help with new border control and homeland security the community. Other examples include anywhere in the US focusing on technology- a particular problem. The placements are technologies. The Conservation and Renewable the Center for Urban Innovation, which

30 31 INNOVATION U 2.0: New University Roles in a Knowledge Economy Arizona State University

promotes innovation in governance, policy, diversity of cultures and artistic traditions in the Institute focuses particular attention on urban university among 13 collaborating and management of urban neighborhoods; region” by sponsoring performances, lectures, centers. For example, the Decision Center institutions. The research program the Morrison Institute for Public Policy which workshops, and public discussion. Urban Sol is for a Desert City conducts research and is focused on the national electrical provides policy research to “inform, advise, an interesting collaboration between Institute develops tools to inform decisions regarding energy system, and has over three and assist state, business, and community scholars and the “urban artist culture of DJs, the future sustainability of the Greater Phoenix dozen Center Members from both leaders”; and the Partnership for Community MCs, graffiti artists, and dancers.” The Lyric area, and the Energize Phoenix project is private and public sectors. Development which empowers local commun- Opera Outreach Performance program presents transforming a 10-mile stretch of Phoenix’s ▶▶ Water and Environmental Technology ity members to develop solutions to issues that annually a series of musicals and operas to K-12 light-rail system into a Green Rail Corridor. (WET Center). The WET Center affect their quality of life. students. After each performance students • This program is a R&D partnership has been in operation since 2009 and can engage in discussion with musicians, LightWorks. that brings light-inspired research at ASU under currently is involved in 23 research • Mary Lou Fulton Teachers College. One pressing dancers, conductors, and other performers. impetus for change at ASU was the extent one strategic and organizational framework to projects, conducted by scientists at three of under-performing K-12 education across • Mayo Clinic Partnership. Collaboration between leverage ASU’s strengths in this area. There universities. The research program the state. The Teachers College is addressing ASU and the Mayo Clinic dates back to 2002- is a particular emphasis in renewable energy is focused on water quality and the this problem through several projects and 2003. The original collaboration resulted in fields including artificial photosynthesis, problem of emerging contaminants. 12 initiatives. The ASU Teach for America the launch of the ASU College of Nursing biofuels, and next-generation photovoltaics. ▶▶ Center for Embedded Systems (CES). partnership provides support and training for and Health Innovation, which provided ASU LightWorks connects with more than 20 ASU is the Director of this Center teachers who commit to teach in high-need nursing students with clinical training and research centers across ASU, all engaged in with Southern Illinois University as urban and rural public schools for two years. the Mayo Clinic with a significant recruiting renewable energy research, like biofuels and solar Co-Director. Fourteen companies, from The partnership won the ASU President’s pipeline. In 2010 the partnership expanded power. For example, the Arizona Center for a variety of industries, participate in the Algae Technology and Innovation (AzCATI) Medal for Social Embeddedness in 2008. enterprise-wide for the Mayo Clinic, creating Center, which focuses on engineering partners with about 20 public and private- The Sanford Inspire Program is dedicated opportunities for a host of new educational and materials issues related to computing sector organizations and provides research, to providing professional development and and research collaborations between the systems that perform sensing, control, testing, education, and training services to training on best practices in teaching, as well partners. Emerging initiatives include the and communication functions, often at the algae industry and research community. as finding innovative approaches to teacher construction of proton-beam facilities for the nanoscale, within larger systems. recruitment and preparation. The America the treatment and research of cancer, and • Ira A. Fulton Schools of Engineering: ▶▶ Net-Centrics System and Software Reads Program partners with local schools a concussion assessment and management Industry-University Cooperative Research (NetCentric). This Center serves 16 and community centers to pair children living initiative to develop concussion-screening Centers. Among the more novel boundary- member companies, primarily from in low income areas with ASU students who tools for ASU athletes. As part of the new spanning industry research partnerships at the computer and software engineering provide tutoring, mentoring and other skill agreement, ASU’s Department of Biomedical ASU are those that involve financial support sectors, and focuses on research to development assistance. Informatics will relocate to the Mayo Clinic from business partners working in a consortium restructure software and systems for campus in Scottsdale, Arizona. format. One very significant example is ASU’s • Herberger Institute for Design and the Arts. networked and cloud-computing success in the National Science Foundation’s The mission of the institute is “to educate future • Global Institute of Sustainability (GIOS). environments. Industry-University Cooperative Research designers to shape collaborations, synthesize ASU launched the GIOS in 2004, and in Centers (I/UCRC) program. ASU has ▶▶ Center for Excellence in Logistics complexity, and catalyze transformation for 2007 the Institute established the first School several of these Centers, most of which are and Distribution (CELDI). ASU public good.” This mission is operationalized of Sustainability in the US. GIOS covers based in the Fulton School. They include: is a Co-Director participant in a through several community-oriented programs. research, education, business practices, and consortium of eight universities that For example, the Performance in the Borderlands global partnerships, with a mission to address ▶▶ Power Systems Engineering Research serves 30 member companies and Project seeks to enrich the “understanding of the the grand challenges of sustainability. The Center. Arizona State is the lead 32 33 INNOVATION U 2.0: New University Roles in a Knowledge Economy Arizona State University

organizations. It focuses on logistics How does AzTE differ in terms of the fees,” but the office will be attentive to technical million, which is a very commendable normalized and distribution, including intelligent organization and functioning from the average milestones and royalty payments. The overall “batting average” (one disclosure for about every systems, systems analysis, supply-chain technology transfer office? For one, both the philosophy of the office seems to be less $1.6 million of research). Similarly, ASU realized modeling and material flow design. governing board and the professional staff have focused on maximizing value to the University, 80 licenses and options in FY2012, as well as five deep technology-based enterprise development and more on rapid dissemination of ASU startup companies and $1.9 million of license ▶▶ Telecommunications (Connection One). This Center, in operation since 2002, experience and success. Consider the AzTE inventions and discoveries into the market. income. ASU is doing very well in technology involves five universities and a number Board of Directors: its Chair had a very successful transfer performance, and is likely to continue career in increasing tenfold the valuation of an The services and functions of the AzTE office to improve given the many organizational and of private sector and federal government seem to be very comprehensive and user-friendly. partner organizations. It focuses on early stage semiconductor company, and also programmatic innovations described in this chapter. started several ventures; every board member The website (http://www.azte.com/) is very various problems dealing with RF (radio accessible for both companies and faculty (or Summary and Parting Comments frequency) technology and wireless has experience in starting, investing, or growing successful technology companies; every board student) inventors. Thus there is a straightforward communication systems. Arizona State University is clearly an member has an advanced degree, mostly in 4-page Faculty Primer on Intellectual Property institution focused on innovation. However, technical disciplines; several board members have as well as an excellent non-bureaucratic overview it differs in some interesting ways from many Boundary Spanning: experience in university leadership or oversight. on Working with AzTE, with linkages to basic of the other case studies in this volume. Technology Transfer intellectual property information, and how office The staff of AzTE has comparable talents. All activity will unfold. For potential licensees and For one, ASU is an example of a university In most universities an office of technology have deep experience in corporate and/or university investors, the website has links to very informative that went through a top to bottom, across the transfer—or equivalent nomenclature—has the lead settings in intellectual property law, licensing, (and succinct) Industry FAQs, and a summary board, organizational change process that has responsibility in invention commercialization technology management, venture development, of Standard Agreement terms and practices of gone on for just over a decade. In addition, the and development issues, often reporting to a and entrepreneurship. The team has several PhDs, the office. Users can then conduct an online notable initiatives in entrepreneurship, technology Vice President for research. At Arizona State MBAs, JDs and collectively over 100 years of Technology Search of over 300 technologies innovation, and community partnering were not things are different in a couple of ways. technology commercialization experience, and available for licensing, with the majority from the simply grafted onto an existing structure of colleges, their credentials and performance have grown life sciences, (notable for an institution without a To begin, roughly 10 months after Michael departments, centers, programs, and activities. since the onset of the Crow administration. medical school). Most credible technology transfer Crow was inaugurated as President of ASU in July ASU is perhaps the purest example of concurrent offices have these functions, but they are very good of 2002, Arizona Technology Enterprises (AzTE) engineering of both innovation systems and the The operation of AzTE is embedded in a at ASU. The disclosure rate at ASU is rising across was organized as an LLC under Arizona state law, as structures and operations of the university itself. business mindset, not seeing itself as a routine the board, particularly in areas such as energy, a subsidiary of the newly reorganized and renamed Said another way, the various innovation and service function for the faculty. Operating as reflecting ASU’s large number of energy-related ASU Foundation (now the ASU Foundation for entrepreneurship activities that have been invented a separate corporate entity may help this. Its faculty members. Between 2004 and 2009 the a New American University). Dr. Crow served on and implemented at ASU assumed and demanded interactions with and support of faculty are energy-related disclosure rate increased ten-fold. the Board of Directors of AzTE from 2003-2009 premised on deal potential, which may be found parallel changes in how the university works. There and has apparently served continuously on the in a license arrangement with an established In fact, the formation and procedures of AzTE, are many examples of this in the case chapter. Board of Directors and Board of Trustees of the company or fostering a start-up. AzTE will as opposed to the prior organization and procedures The second most critical way that this case is ASU Foundation for a New American University— release an invention to a faculty inventor if of the technology transfer function, have yielded somewhat of an outlier is the extent to which the which has oversight of AzTE. Having a robust, it doesn’t appear to meet long-term mutual significant increases in disclosures, licenses/ change process has been consistently and longitudi- productive, and entrepreneurial technology transfer interests of the university and the inventor. options, startups, and patents. The FY2012 data13 nally driven by a conceptual model and a set of function at Arizona State has been a high priority. from the Association of University Technology precepts, assumptions and working hypotheses. The For startup ventures the office policy is “no Managers are instructive. Thus, ASU had 239 model of the New American University articulated requirement of burdensome upfront licensing invention disclosures on a research base of $385.9

34 35 INNOVATION U 2.0: New University Roles in a Knowledge Economy Arizona State University by President Crow has captured the attention of that every entrepreneur knows, but that many public 5 Koebler, J. 10 Metro areas with the largest many in the national university community. It also institutions (governments, schools, universities) population growth. U.S. News & World Report. has become the road map to many of the changes fail to acknowledge. Entrepreneurs recognize and Retrieved from http://www.usnews.com/news/ that have occurred at ASU as well as the preview even embrace the fact that innovative entrepreneur- slideshows/10-cities-on-the-growth-track of coming attractions in the years to come. The ship is a high-risk activity and failures occur. One 6 extent and variety of writings on the part of Dr. possible advantage that ASU may have as a very Office of the President. Arizona State University. Crow aspire to be, in effect, a field guide on how large institution is the ability to mount more trials (2004, April). One University in Many Places. to change or build a university in order for it to be and experiments and learn from the process. Transitional Design to Twenty-First Century responsive to the innovation needs of present-day Excellence. The President’s Response to the University America. The body of work emanating from Provost’s Recommendations Regarding the University Design Team Report. Retrieved from http://www. Dr. Crow is impressive; so too are the dramatic Endnotes changes at ASU over the past decade linked to that asu.edu/president/udt/UDTwhitepaper.pdf 1 body of work. It is yet unclear how the dramatic Many of the historical highlights reviewed 7 Crow, M. M. (2010). The Research University as and positive changes at ASU would continue to here are derived from DeLuse, S.R. and Comprehensive Knowledge Enterprise: A Prototype flourish if their philosopher-in-chief departed. Bates, D.E. (2012). Arizona State University. for a New American University. In Weber, L. E. Charleston, S.C: Arcadia Publishing. Depending on one’s personal philosophy or & Duderstadt, J. J. (Eds.). University Research Paris, France: Economica. politics, ASU today is perhaps the most dramatic 2 Frank Kush was not the only a successful football for Innovation. example of a huge public university—with all the coach but also played an important role in a 8 Ibid., pp. 216-217. fiscal and ideological uncertainties that complicate postwar climb of the campus to a larger role. In its mandate—taking on the extraordnary task of the 1950s, Michigan State University came into 9 Kuhn, T. (1996). The Structure of Scientific lending a hand in addressing the problems being (with the keen opposition of the University Revolution. 3rd edition. Chicago: The University confronting the “external” society while also of Michigan) on the heels of a nationally prominent of Chicago Press. energizing the “internal” functions of the institution. football program, a meteoric postwar rise in 10 Crow, M. M. In fact, in the “aspirations” articulated by Dr. enrollment and a lot of state capital maneuvering The Research University as Crow nearly a decade ago, these action objectives by a politically adept president, John Hannah. Comprehensive Knowledge Enterprise: A Prototype are joined at the hip. So, ASU is not just a story for a New American University. op cit., pp. 217-218. 3 National Science Foundation, National of trying to make a university more innovative; 11 Columbia News. (2002, March 29). Center for Science and Engineering Statistics, it is also an ongoing drama of how to leverage Michael Crow Leaving Columbia to Becoming FY2011. Table 14. Higher education R&D positive change in the larger society by doing President of Arizona State University. expenditures, ranked by all R&D expenditures, smart and needed things inside the university Retrieved from http://www.columbia.edu/ by source of funds: FY 2011. Table 15. Higher that link to that real world. While all of the cases cu/news/02/03/michaelCrow.html in this book have many examples of real world education R&D expenditures, ranked by all activities and connections (these were part of the R&D expenditures, by R&D field: FY2011. 12 ASU Lightworks. Overview. Retrieved from case-selection criteria), ASU differs in the extent http://asulightworks.com/overview.html 4 U.S. Census Bureau. Table 20. Large Metropolitan to which that mandate is written down in an Statistical Areas—Population: 1990 to 2010. U.S. 13 organized body of work and acted upon daily. Association of University Technology Managers. Census Bureau, Statistical Abstract of the United (August, 2013). AUTM U.S. Licensing Activity In closing, the ASU approach also acknowledges States: 2012. Retrieved from http://www.census. Survey: FY2012. Deerfield, IL: Association a bit more forcefully something about the real world gov/compendia/statab/2012/tables/12s0020.pdf of University Technology Managers. 36 37 Brigham Young University*

The precursor to Brigham Young University was Not surprisingly some of the highly enrolled Brigham Young Academy, established in 1875 on majors got higher rankings from various ranking one acre in downtown Provo. In 1891 the school organizations: #1 in Accounting, as per Wall Street moved to a larger site in the city. In 1903 the Journal; #3 in both undergraduate and Masters Academy became Brigham Young University, with Accounting by Public Accounting Report; #3 expansion in facilities, enrollment and educational in undergraduate accountancy by U.S. News & programs. While BYU added graduate programs World Report; #7 nationally in the completion throughout the 20th century (1st doctoral program rate of students admitted to a PhD program, in 1957) it remains primarily a teaching-focused and who enroll, by U.S. News & World Report; rather than research-focused institution. In 2011 and graduates with least debt, by U.S. News & graduate students accounted for roughly 10% of World Report. Also, notable for this paper is a total enrollment of 32,900 across a wide range the #4 ranking by Entrepreneur magazine of of departments. Of note, BYU ranks highly the graduate entrepreneurship program. as a PhD “launch pad” institution; based on 2004-2008 NSF data it was right behind UCLA It should also be understood that BYU is part in the number of bachelors graduates that go on of and sponsored by The Church of Jesus Christ to successfully complete doctoral programs. of Latter-day Saints (LDS) and has been since the early part of the 20th century. That fact drives many Top undergraduate majors (in rank order for facets of academic life at BYU. For example, for Fall 2011) are Exercise Science, Management, a graduate school application to be considered it Psychology, English, Elementary Education, must have received an unconditional endorsement Accounting, Communications, Computer Science, from an LDS bishop or BYU chaplain. 1 By the same Public Health, and Political Science. While perhaps token, in a more reaching-out context, those same not expressed in degree program preferences, graduate students once admitted are encouraged BYU has major facilities and wide participation in to participate in Inspired Counsel devotional the visual and performing arts. BYU performing or forum sessions, as well as receiving a heavy groups have been involved in 13,600 shows in 50 concentration of faculty mentoring during their states and 100 countries since the early 1970s. program experience. Per Fall 2011 enrollment data, 93% of students were from the US, and 98.5% were LDS by religious affiliation. The

* This case was written by Louis Tornatzky, Elaine Rideout, and Elizabeth Ann Pitts. INNOVATION U 2.0: New University Roles in a Knowledge Economy Brigham Young University balance of non-US enrolling students come from common and not reflected in those data. Student University Culture: To Latter-Day Saints, opening megamalls, a very wide variety of countries, reflecting to some projects, mentored by faculty members, are Goals and Aspirations operating a billion-dollar media and extent the international scope of LDS missionary frequent and ambitious. The Office of Research insurance conglomerate, and running activity. A majority of male students and a smaller and Creative Activities (ORCA) manages a The organizational culture of BYU, and the a Polynesian theme park are all part fraction of female students take a two-year break competitive small-grant program in which awardees ways and extent to which it encourages innovation- of God’s work. Says Quinn: “In the from their degree programs to work as missionar- can receive funds to work with a faculty mentor related activities, are inseparable from how the Mormon [leadership’s] worldview, it’s ies somewhere in the world. The student tie with on a mutually agreed upon project. The student LDS looks at these issues as a religious body. Thus as spiritual to give alms to the poor, as LDS is also reflected in the significant tuition must write the proposal and negotiate a working the BYU Mission Statement, as guided by the the phrase goes in the Biblical sense, reduction for LDS-member enrolled students. relationship with a faculty member. In addition LDS church, emphasizes both the religious and as it is to make a million dollars.” to these nominally funded efforts there is a much the secular. Here are the first few sentences:2 While not usually a vehicle to promote student larger number of faculty-student mentoring The point being made is that these situations The mission of Brigham Young University involvement in entrepreneurship or industry, the efforts. The relatively low student-faculty ratio are just venues to make real the service values —founded, supported, and guided by scope of the BYU internship program is likely an at BYU appears to facilitate these relationships. that are embedded in the religion. They are important contributor thereto. The BYU Internship The Church of Jesus Christ of Latter-day settings in which the skills and moral lessons that Office has campus-wide responsibilities in this Both students and faculty members must adhere Saints—is to assist individuals in their are imparted through the religion, and in the area, and coordinates with the 107 department- to the BYU Honor Code, originally developed quest for perfection and eternal life. classroom, can be exercised. Part of the LDS view level internship coordinators, each of which has in the 1940s and expanded later on to cover a That assistance should provide a period of things is tied to building the kingdom of God responsibility for developing a very structured range of discouraged or prohibited activities, of intensive learning in a stimulating on earth, now or in the future. And building the syllabus for its internship experience. Nearly encompassing dress, alcohol consumption, setting where a commitment to excellence kingdom of God at BYU is considered a measurable 10,000 BYU students do an internship every sexual activity, and other issues. Violation of the is expected and the full realization enterprise. As Dean of Students Vernon Heperi put year, and according to the Internship Office honor code can result in removal from BYU for of human potential is pursued. it in BYU’s 2011 annual report for campus life: their average starting salary is $6300 higher students and negative tenure decisions for faculty. than their peers, and their chance of having a Not surprisingly, BYU has ranked as Princeton That leads to a statement of the Aims of a BYU Just as our students connect information job offer at graduation doubles. Internships are Review’s #1 “stone-cold sober” school for 15 years Education. Each of the following is elaborated into a meaningful whole and acquire organized throughout the US and in a number running—an achievement its students celebrated in a separate section of what a BYU education personal ownership of their knowledge, of international settings. Of note, there is one on Twitter with the hash tag #soberisthenewcool. should be: (1) spiritually strengthening, (2) after study, thought, and prayer, we have internship activity—the Utah Startup Marketplace intellectually enlarging, (3) character building, moved forward to bring learning outcomes (USM)—that is linked to entrepreneurship This brief, mostly statistical, profile of BYU and leading to (4) lifelong learning and service. and their assessment into our ownership, to opportunities. At USM the dozens of booths draws a picture of a rich college learning experience The subsequent text elaborates these themes, integrate them into the full body of our work. are manned by early-stage companies looking for for its students, enabled and structured by the and if one extracts the frequent mentions of the talent, either in the form of internships (paid and LDS church, that turns out successful students LDS tenets, it describes a rich, disciplined, and Plenty of evidence bears out his claim. unpaid) or employment. USM is organized and (who don’t leave prematurely), and who then ethical approach to a liberal arts education. University publications feature charts, graphs and supported by several on-campus organizations graduate and go on to rewarding careers and lives. numerical data to quantify everything from the The difference between these statements from as well as community-based partners such as the number of hours that students volunteered in the However, this idyllic picture has few obvious an LDS-linked BYU, and what might come from Utah Technology Council, Silicon Slopes, and center for service and learning (126,151 in 2010, links to the theme of Innovation U. What is it another religious order or a non-religious university, the Association for Information Systems (AIS). with an estimated economic impact of over $2.6 about LDS teachings and philosophy that seems is that LDS sees normal life—including business—as million) to the average number of job offers per to enable technological innovation, commercial- just other venues for doing the work of the church. While BYU is not a research-intensive university management school student seeking employment ization of science, and entrepreneurship? A recent makes the point3 that: as might be assessed by the scope of sponsored Business Week (.92 in 2010, a figure BYU aims to nearly double research, other research and scholarly activities are 40 41 INNOVATION U 2.0: New University Roles in a Knowledge Economy Brigham Young University by 2015). Expected learning outcomes for every Innovation The BYU Technology Transfer Office out of every 10 students speak a second language, college, department and program are posted online has been established to help faculty, among the highest percentages in the country. in an easily searchable format at www.learningout- • Students understand processes by which students and staff commercialize any comes.byu.edu. The site advises students that innovation can be enhanced and have technology or product developed through Leadership reviewing these goals will help them “see the big practiced these in a technical environment. their association with the university. For every other case study in this volume the picture of the knowledge and skills” that they will be authors have been able to identify and describe able to apply upon graduation, while recommending • Students are ready to guide innovative And why will the TTO pursue this goal? significant leadership behaviors and identify that professors review outcomes regularly in order change within an organization. Here is where the operational goal ties to the larger a few specific leaders, typically at the level of to “identify areas of strength and weakness… goals of BYU: senior administrators (president, provost, VP for improve student learning…and…contribute to There is also a Student Innovator of research) who moved the rudder of their university ongoing accreditation.” Similarly, a typical line the Year competition that appears to get While the primary focus of the BYU faculty toward the mix of organizational behaviors that in the annual report reads: “As the survey results significant attention in the College. is teaching, research and other scholarly we have considered as fostering innovation. After were analyzed, the IS Office learned that we activities, often the products of scholarship In the Rollins Center for Entrepreneurship looking extensively and intensively at Brigham needed to focus more attention on…” and so on. have applications as products or services and Technology, within the BYU Marriott beyond the gates of the academy. Under Young, we have concluded that this is difficult or In short, BYU’s goal is to provide a rich and School of Management, the expected Outcomes most circumstances these intellectual impossible to do at this university. In contrast to diversified educational experience that moves of student involvement are very clear: properties can only be utilized by society if the typical university, BYU staff, faculty, students graduates into lives of doing good in the real they are made into commercial products and and administrators are much more homogenous world, including the world of science, innovation, We Want Students To: sold by a company with a profit motive. in terms of their goals and aspirations. Sure, the and associated business, and some outside the chemical engineering professor may have less to • Learn about leadership, innovation, LDS would argue that the latter is much more As a footnote to this section, college sports discuss substantively with the choral director technology and entrepreneurship; explicit than implicit. Nonetheless, the institution enthusiasts have debated whether BYU’s football and vice versa, but they will both pretty much holds itself accountable for achieving its goals by team has a “missionary advantage”—in other share the goals and aspirations discussed above. • Practice leadership, innovation, measuring them in objective increments. And words whether the two-year hiatus that students technology and entrepreneurship skills; Yet people will stand out in terms of being more from the start, it prepares students for what take to do missionary work results in a more visible or effective in enabling and instructing the is perhaps one of the most entrepreneurially mature, more capable team. We also wonder • Establish actual ventures, especially processes of technological innovation, and we finally daring enterprises that a young person can whether this advantage might apply to a variety tech-oriented and scalable ventures. concluded three things: (1) that the phenomena undertake: serving as missionaries. of off-the-field successes, including a successful of innovation are in effect “hard wired” into the technology venture career. It seems reasonable to The Rollins Center also goes on to articulate culture and history of the institution; (2) that the While at the institutional level references assume that a successful missionary in the field is Values that should be held by students including: phenomena of innovation leadership, as alluded to to goals that speak to the primary foci of this not only goal-focused, but also able to adapt to above, is most robust at the program level (college, book—technological innovation, entrepreneur- new and unforeseen circumstances and viewpoints. Creativity and innovation—a ‘pioneering activity, center) and can be demonstrated by the ship, invention—are mostly non-existent, at the In addition, BYU’s emphasis on missionary work spirit’ that pervades the BYU culture. backgrounds of key leaders at that level; and (3) that program level (college, activity, center) they are means that foreign language learning becomes a innovation leadership at BYU gets a tremendous fairly robust. For example, in the Ira A. Fulton high priority. Over 50 languages are taught on a The Brigham Young University Technology boost from linkages with the rich network of College of Engineering, one of its “five key areas” regular basis, and the university has the capacity to Transfer office (TTO), which has campus-wide technology innovators and entrepreneurs both for student emphasis articulates the following: offer classes in an additional 30 languages if student responsibilities, has a simple set of Objectives that regionally and via the LDS more generally. are consistent with both a technology innovation demand for them is high enough. As a result, seven mindset as well as the larger goals of the University:

42 43 INNOVATION U 2.0: New University Roles in a Knowledge Economy Brigham Young University

For example, in the Ira A. Fulton College TTO also benefits from an Entrepreneurship in with attention, sharing resources and expertise, adapt their business plans based on the feedback of Engineering, the senior leadership is rich in Residence function, composed significantly of in order to demonstrate “by selfless example” the they receive until they’ve arrived at a final model. background experiences to enable substantive Provo-based technology entrepreneurs that help “joy of giving back.” In addition to one-on-one Experiential course offerings include a course instruction and behavioral modeling in an the office to evaluate the promise of emerging mentoring the Founders make charitable donations in Mobile App development, and an MBA field innovation context. The Dean is the co-author technologies. Also, via social media such as for scholarships, competitions, and activities, studies class where MBA/MPA and occasionally of a commercial optimization software package, LinkedIn the office is able to connect with a much and participate in formal social and networking students from other disciplines work on a company used at companies and universities worldwide, and larger group of individuals, many BYU grads, events including annual retreats, semi-annual -sponsored innovation project. In addition a received a Design Automation Award from ASME. who are potential licensees of BYU inventions. conferences, and many other activities. 3-year accelerated joint degree (MBA/MS) in An Associate Dean and Professor of Mechanical All of these are excellent examples of how to Entrepreneurship curricular and co-curricular mechanical or manufacturing engineering is offered Engineering, with expertise in design, has overseen enhance de facto leadership talent in technologi- opportunities abound at BYU. They involve that requires acceptance to both programs. The 250 graduate and undergraduate design projects: cal innovation by reaching beyond the campus. students and mentors from across the campus, as program provides students with the management At the Rollins Center for Entrepreneurship Boundary Spanning: well as from the contiguous business community. skills of the MBA program and advanced training and Technology, the Managing Director has Entrepreneurship They come in many flavors, disciplinary mixes, in engineering. Courses teach specific expertise in started and harvested three companies, and reward structures and timelines. Their richness product and process development through projects, currently serves in a leadership capacity in several Entrepreneurship is all about the ability to contributes to BYU being an Innovation U. industrial interaction, and research in development others. The Academic Director had a leadership pursue opportunity without regard to the resources and interdisciplinary methods. Other non-course role in a Provo startup. Another faculty leader of in hand. One explanation for the surprising level Curricular Programs activities supplement the class experiences. of student entrepreneurship at BYU most likely the Center (a BYU graduate) started a company BYU offers a number of degree programs, lies in the BYU culture. Mission statements at Co-Curricular Programs that went public, achieving a $35 million market certificates, and courses in entrepreneurship at both the School of Management and the College capitalization and 1,500 employees. The Rollins the undergraduate and graduate level, including The Venture Mentoring Services program of Engineering and Technology specifically include Center also benefits in terms of leader assistance an entrepreneurship emphasis, minor, and major of the Rollins Center for Entrepreneurship and objectives for students to understand innovation via the Entrepreneur Founders, a network of 140 for business undergraduates, a minor in social Technology (part of the Marriott school) is one processes and practices and be prepared to guide entrepreneurs who contribute financial support innovation, and an MBA major and minor in such formal activity. Students sign up online and innovative change within an organization. The (an initial contribution of $15K and a sustaining entrepreneurship. In 2012, the Princeton Review select their desired mentor from a list. (They Marriott School’s website alludes to nurturing, donation of $5K). They also give lectures, ranked the BYU MBA entrepreneurship program must complete minimal market analyses and in each student, the “pioneering spirit” that mentor students, arrange internships, and help third in the country. In general, the curricula patent searches on their idea before the session). pervades the BYU culture, with the help of develop teaching materials and opportunities. covers technology issues and opportunities, basic The alumni mentors come from a variety of the larger entrepreneurship community that entrepreneur skills, creating new ventures, managing fields and are experienced in business leadership, In the BYU Technology Transfer Office, the surrounds and supports scalable ventures. new ventures, financing new ventures, mobile entrepreneurship, management, or venture/angel Director has a rich multiyear (going back to 1973) application development, entrepreneurial marketing, investing. Many of the mentors live in the local involvement in technology-based ventures. This The low student-staff ratio, LDS apprentice- venture capital investing, and due diligence. The Provo metropolitan area. A one-time (up to an has included roles as founder (nine startups), style traditions, nurturing mentors, and formal success of BYU students’ post-graduation venture hour) one-on-one advisement session is offered investor and fund developer, and participation boundary spanning university structures, programs, sustainability, and their team success in university either in-person or via BYU’s online mentoring in various federal and state programs fostering and processes is consistent with recent research competitions external to BYU, are attributable portal. A second, more robust mentoring program entrepreneurship and technology commercial- showing that social and mentoring networks are (according to one faculty informant) to the is offered to student teams who are advanced ization. Other staff members in the office have critical facilitators of small business creation. customer development curricular approach. Student enough to enter into campus entrepreneurial rich experiences as mangers in or founders of BYU’s strong network of extraordinarily active teams repeatedly test and validate their ideas with competitions such as the New Venture Challenge/ technology-based ventures (over 20). In a manner alumni (the Founders and Young Founders actual customer prospects and then iterate and Business Plan Competition, Utah Student 25 similar to the work of the Rollins Center, the organizations) shower student entrepreneurs 44 45 INNOVATION U 2.0: New University Roles in a Knowledge Economy Brigham Young University

Business Plan Competition, Student Entrepreneur from a mission trip with a new product idea be centrally located in a campus incubator potential partners, and customers. Utah Student of the Year, International Business Model Competi- to support needs in the developing world. but are spread around among University labs, 25 finished its third year of competition in 2012. tion, Mobile App Competition, Omniture Web classrooms, and the Wilkinson Student Center. Analytics Competition, Crexendo, and the The Rollins Center is led by multidisciplinary Boundary Spanning: There is one interdisciplinary co-curriculum Online Marketing Competition. The teams do faculty members with entrepreneurial, business, University, Industry and Community program that is particularly noteworthy. The not select team mentors; Rollins faculty advisors, and technical (computer science, chemistry) Crocker Innovation Fellowship program is for The Office of Research and Creative Activities usually three per team, assign them. The mentors backgrounds. While new efforts are being made top students at BYU with a good idea. Students (ORCA) is the research management function of typically meet with teams an hour a week for to pull multidisciplinary student teams together, apply for the fellowship (20 winners) and receive BYU, including relationships with funders, faculty several weeks leading up to the competitions. student groups themselves are the primary drivers support from five leading faculty and a cohort of researchers, labs and centers, and undergraduate Mentors also receive training in using the BYU of interdisciplinary collaborations at BYU. For students, along with a $4500 stipend to support research activities. In FY2011 BYU reported4 $37.1 mentoring portal software, which facilitates example, the Engineering and Technology Startup their projects. The students learn design thinking, million in research expenditures, with the largest scheduling and tracks the mentoring process. Club, “Venture Factory”, meets monthly at BYU’s Ira A. Fulton College of Engineering and entrepreneurship, agile software, and innovation fraction ($24.2 million) coming from the Federal While the Rollins Center is a center for Technology. Students from any discipline, as well as practices. They work for an innovative company government. Interestingly, business accounted for student entrepreneurs at BYU it also supports a community members, bring and present their new during the summer, develop their own innovations $4.7 million, or 12.8% of total expenditures. That number of boundary spanning efforts, effectively ideas and receive constructive feedback from the during the fall semester, and are provided additional is definitely on the high side, relative to national connecting student entrepreneurs with alumni, College’s faculty and other student club members. funding, equipment, and lab space as needed. averages across all universities, which are around and sponsoring a number of events such as the 5%. By R&D field, the lion’s share of research was A critical part of the Crocker Initiative is Entrepreneurship Week activities, a lecture series, The Venture Factory student leadership team conducted in engineering ( 32.3%), followed by the the development and cultivation of its alumni and the aforementioned competitions. BYU’s and faculty advisers select particularly promising life sciences (19.7%), non-science and engineering network. Alumni have the opportunity to network New Venture Challenge is one of the largest ideas, and even hire engineering and business fields (19.3%) and physical sciences (15.6%). with leaders in the innovation ecosystem and internal business plan competitions in the nation, students to work on the projects. The Venture with prior Crocker Innovation Fellows, provide Consistent with the university’s emphasis on with up to $130,000 awarded in cash and in-kind Factory is designed to run like a non-profit, creating feedback on the program, and eventually give undergraduate research activities, ORCA sponsors prizes. The Rollins Center encourages students products that become profitable and that then back to the program via mentoring, funding, an annual competition to select projects involving from across the campus to form ventures and aid in financing future Venture Factory projects. employment, or even providing projects that will a student and a faculty mentor. Each student enter the competition. This year a new initiative The college helps support the Venture Factory allow future generations of Crocker Innovation receives $1500 to cover project expenses. During by the Center—the Weekly Idea Pitch and Super because it not only allows students to innovate and Fellows to continue learning by experience. the 2011-2012 academic year ORCA awarded Saturdays—culminated in a record number apply their learning, but also provides students $450,000 to 321 undergraduate student for their of eighty-two final business plan submissions. with a hands-on paid internship opportuni- There is another recognition type program research projects, and in parallel awarded $1.4 Throughout the year the Rollins Center received ty. It also is a venue for improving presentation that involves virtually all the institutions of higher million to 71 faculty members for projects involving more than 1,000 ideas from more than 100 teams skills via student and faculty feedback. education in the state—Utah Student 25. It is undergraduates. To enable faculty proposal activity in weekly pitches, workshops, and other events. Other student clubs include: Collegiate designed as a competitive recognition program in and grants, ORCA also offers a range of workshops, which there is an opportunity to be named one Another novel boundary-spanning approach, Entrepreneurs Organization (CEO) club, including: grant writing, proposal preparation, using of the top-25 student enterprises in the state, be unique to BYU, employs connecting experiential Association for Systems Management (ASM) NSF Fast Lane, and finding funding opportunities. recognized at an Award Gala, be featured in entrepreneurship with students’ LDS missionary club, Web Startup Group, the MBA Tech Utah and get media attention across BYU hosts over 50 centers and institutes trips abroad. A number of students have leveraged Academy, Student Intellectual Property Law CEO Magazine, the state. Presumably, the Student 25 winners will across the university, most prominently in the their evangelical work into sales and customer Association, and the Social Startup Group. have more opportunities to connect with investors, humanities, social sciences, and life sciences. BYU development skills. Students have returned Interestingly, club meetings and other student entrepreneurship activities do not seem to also participates in four NSF Industry-University

46 47 INNOVATION U 2.0: New University Roles in a Knowledge Economy Brigham Young University

Cooperative Research Centers (I/UCRC ) in of the university’s research portfolio is large. Third, dollars of funding; licenses and options per million with its licensees to compete in the state-funded partnership with much larger, more research- operations are also enhanced by student interns dollars of funding; and license income per million Technology Commercialization and Innovation intensive universities, a fact that is notable in and gratis advice from community volunteers. dollars of funding. The graphical presentations also Program (TCIP). TCIP mimics the Federal Small its own right. They include: the Center for include BYU’s standing and numbers compared to Business Innovation Research program and gives High-Performance Reconfigurable Computing; the BYU Technology Transfer is a very well the leading universities in the country. There are grants to technology-based startup companies. Center for e-Design; the Center for Friction Stir organized, professional organization that is very several first places, which is highly commendable The “technologies available” portion of the Processing; and the Center for Unmanned Aircraft effective in identifying, evaluating, protecting and and very unusual for a university with the modestly BYU Technology Transfer website is easy to Systems. This is a major accomplishment for a moving faculty inventions into business applications. sized sponsored research portfolio of BYU. search, and organized by areas of science and university of its size in terms of the scope of graduate It runs like a disciplined small business within the The Technology Transfer Office website is easy technology. Notably, the number of available education programs and sponsored research. university context. The focus of the office’s licensing activity encompasses arrangements with existing to peruse and search, and fairly customer friendly. technologies has increased significantly as the Boundary Spanning: companies, as well as startup situations. Licensing The function is staffed with people with business office has ramped up its operations and staffing Technology Transfer arrangements offer inventors a generous 45% share experience, which on a staff person per unit of over the past several years. Information is in revenues, although the faculty inventor can opt research funding basis is more than adequate. The provided about the invention in non-disclosing In a 2009 article,5 the Technology Transfer to dedicate all revenues to support her/his research Office works closely with academic units across terms, the potential market (s), patent status, the Office at BYU was labeled as “Brigham Young’s program. When the inventor does assign that share campus that are involved in ancillary activities. For inventors, licensing status, and a contact person Entrepreneur Factory.” Particularly noteworthy at of income to his research account, then BYU will example the College of Engineering and Technology in the Office. There also appears to be a great BYU is the “hit rate” of starting companies based match that amount from its share of the proceeds. runs a Capstone Program in which, for a $20K deal of “walking and talking” around the campus, on university inventions per research dollar, the fee, a company can work with a student team and engaging faculty members and students alike. relative frequency of invention disclosures per Inventions that come to the attention of the a faculty advisor to solve an engineering-related research dollar patent applications and patents TTO tend to cluster in a small number of domains. technology problem; the sponsor company will In closing this section it should be noted that issued per research dollar spent, licenses and options Chemistry accounts for over half of inventions, have the rights to any intellectual property that will prior to 1996 the Technology Transfer Office per research dollar, and license income. The annual followed by engineering, the life sciences and result. A prominent theme of the office is “serve the also had responsibility for the licensing and reports of the Association of University Technology computer systems/software. As noted above faculty” and be flexible in interactions with partners. commercialization of “creative works,” typically Managers (AUTM) bear this out year after year. the invention disclosure rate per unit of research instructional materials such as video, music, art, The current FY 2012 AUTM report6 is illustrative. spending is very high. Of approximately 1600 As noted above, the de facto staff of the and some software applications. Since BYU Looking at the hit rate of invention disclosures filed faculty members at BYU there are about 200 who BYU Technology Transfer Office is significantly has a rich tradition in these areas, in terms of relative to research expenditures, BYU’s batting are active inventors, and 50 who are very active. enhanced by the extent to which the office and curriculum, performance, and associated creative average is about one disclosure for every $351,000 the university are connected to leaders in the products, the BYU Creative Works Office A notable example of the businesslike mindset of expenditures! That rate is phenomenal. So too Provo regional economy. Provo is a burgeoning (CWO) was established. Much of invention in of BYU Technology Transfer Office is its internal is the number of licenses and options executed technology cluster community that includes a this area is typically protected by copyright, but it quantitative performance benchmarking of several during the year (34), which rivals the volume number of people with ties to BYU, and who are emerges from many disciplines and departments, typically used metrics. Unusual is the office’s achieved by universities ten or more times the size willing to help out in terms of providing guidance such as the School of Music, the Department practice of normalizing outcomes and making of BYU in terms of research expenditures. There and support for BYU Technology Transfer. For of Theater and Media Arts, and other units. them publicly available in an easily understood are a couple of potential explanations. For one, example, the Office meets annually with its visual format on its website. One can find, for In addition to managing the intellectual property the Technology Transfer Office has a Director, counterparts at the University of Utah and Utah example, quantitative and graphical information protection most appropriate to these activities and Mike Alder, who is an experienced venture State University to share best practices and solutions on: invention disclosures per million dollars of products, the Creative Works Office also developed investor and a serial entrepreneur. Second he has to common problems. While for reasons of LDS funding; patent applications per million dollars a dissemination and sales strategy. Originally the a complement of professional staff that for the size policy the university takes no money from state of funding; startup companies formed per million government, the Technology Transfer Office works CWO functioned as the assembler and marketer

48 49 INNOVATION U 2.0: New University Roles in a Knowledge Economy of these diverse products, starting with a printed Endnotes catalog sent to 160,000 BYU alumni. This was 1 replaced by an online approach, with the campus Graduate Studies. Brigham Young University. bookstore functioning as the order fulfillment (Updated 2012). Policies and Procedures entity, for a 15% share. Incentivizing the bookstore Manual, Section B: Policies. Retrieved seemed to work well, and has expanded the reach from http://graduatestudies.byu.edu/sites/ California Institute of Technology* and visibility of the campus; an entrepreneurial default/files/graduatestudies.byu.edu/ solution for an entrepreneurial place. files/files/policies/b_section_ppm.pdf

2 Summary and Parting Comments Brigham Young University. BYU Mission Statement. Retrieved from http://aims. The California Institute of Technology, an insti- Mount Wilson Observatory, was named a Trustee; byu.edu/p/missionstatement tution that emerged from very modest origins Arthur Noyes, a chemist from MIT, was instrumen- BYU, while a unique university on some 120 years ago, was recently named the world’s top tal in early development; as was physicist Robert dimensions that would be impossible to replicate 3 Winter, C. (2012, July 18). How the Mormons university by the Times Higher Education ranking Millikan who began to spend time at the Institute elsewhere, also provides many examples of good Make Money. . Ms. Winter Bloomberg BusinessWeek of the leading universities in the world—and for as director of physical research. Hale, Noyes and practices that could be applied to any university. describes the wide-ranging current investments and the third year in row. Selection criteria included Millikan—the “triumvirate”—were active in the Discounting the religious and associated cultural enterprises of the LDS church, as well as economic research, teaching, citations, international outlook steady scientific evolution of the fledgling school context, many practices are notable and replicable. matters being a significant theme among the early and industry engagement. The selection methods prior to and during WW I when the three worked in For instance, a campus that is not research- revelations of the 19th century founding history. included a survey and analysis of published papers Washington to support the defense effort. By 1920 intensive can have a very productive technology 4 among other approaches. the school had become the California Institute of commercialization operation if it operates with National Science Foundation, National Technology, had secured a significant endowment, more of a business mindset and more aggressively Center for Science and Engineering Statistics, This outsized ranking is astonishing for such a and was building a new approach to scientific engages leaders in its business community. So too FY2011. Table 14. Higher education R&D small institution. With a 2012 freshman class of education. The triumvirate, having cut other is it possible for a “small” university to effectively expenditures, ranked by all R&D expenditures, 264, Caltech is a quarter the size of MIT’s freshman ties, were in leadership positions in the evolving work with its more nationally visible counterparts by source of funds: FY2011. Table 15. Higher class, which is also small by comparison with its Caltech, with Millikan as administrative head as in conducting industry-university cooperative education R&D expenditures, ranked by all peers reviewed here. And yet if one were to point well as Director of the Laboratory of Physics. research centers. The delivery of a wide range R&D expenditures, by R&D field: FY2011 to places where the modern post-industrial world of entrepreneurship curricular and co-curricular 5 Wong, V. (2009, December 7). Brigham Young’s originated, Caltech would be on the short list. During the 1920s and 30s the Institute programs is possible, if program innovation entrepreneur factory. Bloomberg Business Week. evolved into a small (in student headcount) but and community involvement are cooperatively For those familiar with Caltech’s meager origins exemplary university that focused on the physical harnessed in the effort. It remains unclear whether 6 Association of University Technology Managers. this seems a leap. In 1891 a wealthy philanthro- sciences (particularly physics and chemistry) and a campus like BYU could be as productive as it is (2013). AUTM U.S. Licensing Activity pist named Amos Throop founded a small school engineering. Its reputation was further enhanced in the technological innovation arena if it were not Survey: FY2012. Deerfield, IL: Association in Pasadena, and named it Throop University. by a growing research portfolio (mostly funded by located in the fairly energetic innovation culture of University Technology Managers. Two years later, it became Throop Polytechnic philanthropy and private foundations) as well as of Provo and the State of Utah, but there are many Institute, and for several years the college offered a the appearance of internationally known visiting wise and clever policies and practices at BYU. wide range of subjects albeit with an emphasis on scholars. All of these became part of a continuing vocational outcomes including instruction at the tradition. So too did the tradition of linking high school level. Between 1906 and the 1920s Caltech’s fundamental science to its practical the Institute came under the influence of several implications for important societal problems and key individuals: George Hale, director of the challenges. The latter was expanded several-fold

50 * This case was written by Louis Tornatzky, and Elaine Rideout. INNOVATION U 2.0: New University Roles in a Knowledge Economy California Institute of Technology during World War II and thereafter, with work on In the early 2000s the Moore’s bequeathed an statistics too much, since definitions of “faculty” University Culture: various weapons systems, radar and the establish- additional $600 million to the University.1 differ somewhat from place to place, but it cannot be Goals and Aspirations ment of the Jet Propulsion Laboratory (JPL). denied that the California Institute of Technology Despite, or perhaps because of these propitious has a very productive faculty in term of research One might expect that a modestly sized (in During the 1950s the history of Caltech was beginnings, California Institute of Technology and development and also attracts very talented headcount) faculty and student community, with also closely tied to the history of the development remains small in student and faculty head count but graduate students and post-doctoral researchers. outstanding intellectual credentials, would have of the semiconductor industry, and thereby of internationally pre-eminent in a number of science the potential to have a very focused set of goals Silicon Valley itself, and much of the modern fields and a hotbed of technological innovation. Where many schools might sit back and rest and aspirations. Many universities have a difficult world as we know it. Caltech/MIT alum William Early work in Vitamin C, the Richter scale plus on their laurels, Caltech continues to maintain its time in zeroing in on these topics—not Caltech. Shockley, Nobel Prize winner and co-inventor associated instrumentation and brain hemisphere edge. So how does that happen? This quote from of the transistor, left Bell Labs to start the first studies are all part of the school’s heritage. There are Jean-Lou Chameau, President of Caltech, perhaps Here are its current Mission Statement and semiconductor company with financial backing relatively few students2 at Caltech, 978 undergradu- captures the key themes that we will elaborate in Research Priorities in just over 100 words: from Arnold Beckman, also of Caltech lineage. ates and 1,253 graduate students, served by a faculty more detail in the balance of this case discussion: Mission Statement Included among his early hires were Caltech’s own of 300, which is supplemented by 600 research Arthur Noyes and Gordon Moore, (PhD, 1954), scholars, many who are post-docs. Over the years Our people, both on campus and at JPL, The mission of the California Institute of two of the “gang of eight” who eventually left many honors have been bestowed on Caltech faculty practice collaboration over competition. Technology is to expand human knowledge Shockley to launch their own startup, Fairchild and researchers: 32 Nobel Prizes; 56 recipients of Our interdisciplinary environment allows and benefit society through research Semiconductor. Later, Moore went on to found the National Medal of Science; 110 members of engineers to talk to biologists, biologists integrated with education. We investigate Intel, where he became well known as the author the National Academies; 12 National Medal of to work with physicists, and computer the most challenging, fundamental problems of “Moore’s Law,” which still holds today (that Technology Recipients; and 94 members of the scientists to partner with social scientists. It in science and technology in a singularly computer processing speed tends to nearly double American Academy of Arts and Sciences. This is teaches our students our core values: respect, collegial, interdisciplinary atmosphere, every two years). The semiconductor industry extraordinary for a faculty base of a few hundred. risk-taking, intellectual curiosity, and while educating outstanding students to spawned hundreds of companies, and the region integrity. And it gives our staff the freedom become creative members of society. grew and prospered by attracting the best and Even more extraordinary is the record of and opportunity to act not only as support brightest, and also by the attraction of capitalists research performed relative to that base of faculty but also as mentors themselves to our students 3 And: (Sequoia Partners and Kleiner-Perkins, for members and research scholars. In FY 2011 and our faculty, accelerating the Institute’s example) and other industry suppliers and service NSF statistics Caltech reported $377.5 million progress and increasing its impact on society. Research Priorities providers. Much of the enormous new wealth that in R&D expenditures, which placed them 58th Our commitment to excellence and to each was generated was plowed back into the region via in the country. Not so good? Actually, quite other’s success makes Caltech special. Caltech researchers are known for scientific regional investment VC funds and independent commendable when one considers the relatively They also do it by having areas of expertise, inquiry that is bold and innovative startups. Area universities benefited indirectly, small number of faculty plus research scholars. and individual talents, that are among the best in and impacts society. Our investigators by attracting the best and brightest faculty and It suggests that on average each faculty member the world. In recent pursue high-risk, high-reward research students, and directly with industry and individual is somehow associated with over $1 million in U.S. News & World Report’s rankings Caltech is #1 in chemistry (2010), #2 to advance technology, theory, and both endowment funding. For example, in 1986 Arnold research. By comparison, the school just above in chemical engineering (2012), and 5th best fundamental and applied science. The and Mabel Beckman donated $50 million to Caltech on that list, performs $378 million in university in the US (2012) with best graduate Institute’s many cross-disciplinary research Caltech. Approximately a decade later, Gordon and research, but has over five times the number of programs in chemistry, earth sciences and physics centers and institutes support the kind Betty Moore established the $16.8 million Gordon faculty members as Caltech. That school ranked #2 (2012). There are many other accolades. of collaboration that develops powerful and Betty Moore Laboratory of Engineering. nationally on the same list, with $1,279 million in research, does it from a faculty base of approximately ideas and addresses global challenges. nine times the size of Caltech. Not to belabor these 52 53 INNOVATION U 2.0: New University Roles in a Knowledge Economy California Institute of Technology

So much has been captured in these short, • Medical Science. Over 50 faculty members For example, in the Energy area alone: a does the goal of research excellence break out in dense statements. Caltech will focus on very big and research scholars are involved in a National Medical of Science winner is leading an terms of Caltech versus the rest of the university problems. Its work will span the gamut from wide-ranging program of R&D that is increasingly successful search for nontoxic catalysts community? In teams of the “batting average” theory-informing science to socially impactful focused on new materials and devices for splitting water using sunlight; a Draper Prize for NSF proposals submitted over Fiscal Years technology and applications. It will pull together intended to transform medicine. The winner has invented a process to evolve enzymes 2004-2010 Caltech’s hit rate is 10.7%, which is large collections of people, from many disciplines research portfolio includes diagnostics and for the production of biofuels; a Nobel laureate higher than the average for all other universities; the and perspectives, who will be mutually respectful devices, molecular machines, microbiology, has invented a catalyst to enable the production comparable hit rate advantage for NIH proposals and focused on the problems at hand. And as it neuroscience, systems, and synthetic biology. of high-performance resins for wind turbines; a is 8.7%, which is again higher than the average does its work it will engage its students in the most MacArthur fellow is utilizing novel applications of all other schools. The Division at Caltech intellectually challenging problems of the day. Note • Information Science. About 70 professors are of fluid dynamics to increase the power harvest that accounts for the largest share of proposals that while the word “entrepreneurship” does not involved in this priority area that is “revolution- of wind turbines; an Eni Award winner has led (and hits) is Physics, Math and Astronomy. appear in either the mission statement or research izing information technology by discovering the improvement of an ultrathin solar cell that priorities, both focus on the uses of technology the fundamental mathematics and physics significantly improves light absorption. Compar- Before leaving the research proposal and award and science (whether fundamental or applied) of information systems and processes.” able exemplary individual accomplishments exist topic, it is useful to point out that compared to most to solve global problems and serve humanity. in each of the other five Research Priority Areas. of the other case examples in this volume, Caltech • Advanced Materials and Nanoscience. is lower in the percentage of research funded by How Caltech works, and how its goals A number of Caltech researchers are developing Given the individual accomplishments in companies. It may be that the Caltech model of and aspirations play out is illustrated by “novel materials and devices with superior research and application outcomes it should not industry funding is more along the corporate gift or looking closely at the six substantive research properties.” The problem domains include health be too surprising that there are comparable levels “partnership” model, rather than the “portfolio of priorities that define the work agenda: and medicine, electronics, energy, quantum of excellence in all aspects of research, including contract research” approach, or the multi-partner information science, and materials optimization. securing resources to perform the work. It was center model, such as the NSF Industry-University • Energy. Per the Caltech website, “more noted above that, on average, Caltech faculty Cooperative Research Center approach. If that than 20 Caltech faculty members lead • The Universe. This area involves over 80 Caltech investigators, including scientists at members are receiving more research funding from is the case, those monies might be assigned to the energy-focused collaborations that leverage all sources than are their counterparts at other Nonprofit funding source in the NSF tables. In the Institute’s programs in engineering, JPL, plus a number of collaborating scientists at NASA, the University of California system, institutions. Exploring this a bit more, we looked 2011 Caltech named an Assistant Vice President chemistry, chemical engineering, physics, at the mix of research funding sources. As per for Institute Corporate Relations, and later on nanotechnology and information science.” the U.S. Geological Survey, the European Space Agency, and several other universities NSF data, in FY2011 Caltech reported $377.1 announced a $10 million gift from Dow, mostly The energy portfolio encompasses generation, million in research expenditures, and of this dedicated to graduate student support as well as storage, transmission, and conservation. that are prominent in this area. This focus on expanding our understanding of the universe 90.8% came from the Federal government, with funds for the Resnick Sustainability Institute. 4.4% coming from nonprofit organizations, and • Earth and Environment. “More than three dozen includes emphases on the cosmos, the quantum a very modest 2.1% of the total from business. To close this section on Goals and Aspirations, Caltech faculty members” execute a portfolio universe, galaxies, stars, black holes, and planets. here are excerpted comments from Ares J. Rosakis, of research that includes Earth’s origin and While these six Research Priority areas Looking more closely at data on Federal funding (Division Chair of Engineering Applied Science) evolution, global climate, atmospheric chemistry at Caltech4 we can derive additional conclusions. on what Caltech is all about.5 The bolded sections and physics, seismology, and instrumentation. represent compelling questions and problems at the frontiers of human understanding, it Two Federal agencies account for the over $165 are emphases from Professor Rosakis not from the Much of this work also involves the Jet million of total contract and grant funding: the authors of this chapter: Propulsion Laboratory (JPL), a NASA-funded should be re-emphasized that Caltech’s goals and aspirations are all about talented people National Science Foundation ($100.2 million) research and development laboratory that is and the National Institutes of Health ($65 …I encourage you to think about the operated by Caltech, and involves collabora- finding innovative solutions as well. This seems Engineering and Applied Science to be happening on several levels at Caltech. million). The Department of Energy and NASA tion with the U.S. Geological Survey. are tied for third at $37 million each. So how (EAS) Division and Caltech’s greatest

54 55 INNOVATION U 2.0: New University Roles in a Knowledge Economy California Institute of Technology

achievement—the creation of new schools in the previous section. As described below, for As described by Chameau in a LA Times It should also be mentioned that Stanford, Purdue of thought. These schools of thought a faculty that numbers less than 300 there are a article:7 and Georgia Tech were selected by two independent reflect our combined achievements and surprising number of leadership venues, particularly panels for inclusion as exemplary cases in the excellence in both research and education. the centers and institutes that are perhaps the When I finished my PhD at Stanford, I took 2002 predecessor8 to this volume, as well as in primary vehicle for executing the Caltech vision. a position at Purdue, in a very good research this volume. Dr. Chameau spent large portions And more: In addition, while this is a case description of the program. I was in a research group of very of his career at all three institutions. A strongly current Caltech, amazing visionary leaders that senior faculty members, very good in their held assumptionof this book is that the prevailing First, by design, we don’t cover all areas stayed long and did much have blessed the Institute field, but they could not get along. One day, cultures and values of universities cling to the of engineering and applied science. We throughout its history. Jean-Lou Chameau, the department chair said, ‘You know, your mindsets of attentive people who pass through. dynamically choose only the ones that the current President, was preceded by David colleagues – I’m tired of them. They’re like we consider the most important, and we Baltimore, a Nobel Laureate, and a long line of chief children. There’s only one thing they agree So how does the leadership philosophy of an are ready to retire the ones that are not executives who added to the vision of scientific upon, and that is that they seem to be able to engaging, arguably brilliant and visionary president intellectually stimulating. Our faculty excellence tied to real-world importance that began work with you. I’m making you in charge of like Dr. Chameau get expressed substantively at do not represent a continuum of research with Robert Millikan, who served as Chair of the group.’ Since I was still young and foolish Caltech? One useful example of that mindset interests and specialties. We are in the words the Executive Council (equivalent to president) and didn’t know better, I agreed to it. That’s was expressed in a co-authored article by him of my old Caltech mentors, Professors Jim from 1921 to 1945. Millikan (also a Nobel Prize the beginning of this career in administra- on “the transformative impact of fundamental 9 Knowles and Eli Sternberg, a collection winner) was perhaps the primary shaper of the tion. I enjoy doing my own work, but also scientific research.” The basic point of view is that of isolated singularities. However, in legacy handed down to President Chameau. realized that I am more and more rewarded Caltech’s pursuit of large, high-risk and complex order for these isolated areas of excellence personally by seeing the successes of others. basic science problems has the most potential to to be effective, the second principle has to be Jean-Lou Chameau became Caltech’s make the most significant differences in solving introduced. This principle dictates that the president on September 1, 2006, and he has And so it went from there. Chameau ended up real-world problems. The argument assumes a barriers between disciplines, departments benefited from strong leadership mentors as heading the Geotechnical Engineering program technology transfer and commercialization function and even divisions remains very low so well as the organizational cultures of prior at Purdue, and in 1991 was asked to lead the that has “trusting, collaborative relationships with that both faculty and students can cross postings. For example, while finishing his School of Civil and Environmental Engineering the scientists” and that there is a “natural give and them, if they wish, without spending PhD at Stanford, Dr. Chameau co-authored a at Georgia Tech, where later on he re-united with take between basic and applied research” as well unnecessary energy. This is a principle that journal article6 with a Stanford professor, Wayne Wayne Clough, who became President in 1994. as strong linkages to undergraduate and graduate is also shared throughout the Institute and Clough, who within two years was on his way to In 1995, after a stint as president of a geotechnical education. It also cites the work of the late Donald necessitates the existence of a truly interdisci- Virginia Tech, where he moved from professor consulting company, he was named a Georgia Stokes10 who argued for “Pasteur’s quadrant” plinary culture in which turf and labels to dean within a decade, and then was a very Research Alliance (GRA) Eminent Scholar. The and “use-inspired” basic research and bringing become secondary to intellectual exchange. successful Georgia Tech president (as described GRA endowed chairs are dedicated to individuals together the world of science and the world of Other major engineering schools speak in the Georgia Tech case in this volume). who have carved out careers that metaphorically applications. As are a lot of things at Caltech these of the value of interdisciplinary research; have one foot in early-stage science and another concepts are often better understood by example. our difference is that we have practiced it There are also many examples of Dr. Chameau’s in “real world” applications. In 1997 Chameau since our founding over 100 years ago. early talents in leadership. After Stanford was named Dean of the College of Engineering Boundary Spanning: he was a faculty member in civil engineering at Georgia Tech, one of the largest in the country, Entrepreneurship at Purdue, where he was asked to lead a very before becoming Provost in 2001. Throughout his Leadership Technology entrepreneurship, which requires talented but apparently irascible group of faculty career at Georgia Tech he significantly emphasized a diverse range of skills (organizational, financial, Many individuals currently in positions of members and enable them to pull together. the linkages between science and applications via management, marketing, product design and authority throughout the Institute enable the enhancements in policy, program and mindset. Caltech culture, goals, and aspirations described development, for example) as well as deep technical 56 57 INNOVATION U 2.0: New University Roles in a Knowledge Economy California Institute of Technology expertise, can be considered a quintessential industry research labs disappeared and scientific country (frequently India, as many of the participat- groups fostering entrepreneurship in the region. boundary-spanning phenomenon. Nonetheless, posts became harder to find in academia and the ing students are of Indian descent). The students Entrepreneurship Club activities include: university entrepreneurship programs are frequently private sector, more and more graduate students, travel to the host country, observe and experience • Business plan competitions centralized, usually within a business school. post-docs, and occasional undergraduates began the needs of the community, and then return One of the more interesting and noteworthy to pursue careers based on technology start-ups. to school with ideas, designs, and new solutions • Field trips such as to Silicon characteristics of Caltech is the extraordinary and technologies to address these needs. Valley and San Diego level of student entrepreneurship that occurs in The course that Professor Baldeschwieler spite of not having a business school. Caltech pioneered has been picked up and expanded into a While these three course offerings provide • Entrepreneurship boot camps 12 alumni have started an estimated 400 companies, three-course group by Professor Ken Pickard, that a formal introduction to entrepreneurship, for according to statistics published by the student now incudes: E102 Entrepreneurial Development; the most part learning about entrepreneurship • Entrepreneurship Seminar Series E/ME 105 Engineering Design of Products for the happens naturally as students’ book knowledge and entrepreneur club. With no entrepreneurship • Networking events, including the large Developing World; and E/ME 103 Management experiential learning grows over their individual silo in the form of a major or department at network of Caltech alumni entrepreneurs Caltech, student entrepreneurship seems to live of Technology. Development support has also courses of study. In virtually every class there is anywhere and everywhere on campus, arising come from the NSF Partnerships for Innovation the expectation and opportunity for hard-nosed One organization that has been particularly organically from within the six global challenge Program. That program provided fellowship research projects, which have a way of morphing visible and helpful is Pasadena Entretec, founded as areas and permeating Options and Divisions. support for participants from Caltech, USC, into something that has a glimmer of commercial a member-based organization in 2000, which offers UCLA, and the Art Center to work together in potential. Stories abound at Caltech of research networking events, training workshops, and leads Curricular Programs teams to commercialize promising technologies groups working on a wide range of experimental and to financing and connectivity among a membership coming out of all four institutions. While that theoretical research projects and spinning out new Academic majors at Caltech are known as of 275 companies, units of governments and program ended, the curriculum that was developed, companies, as faculty and graduate students build higher education institutions. Enabling the Options and there are roughly two dozen to lessons learned (such as the value of mentors), new applications leveraged off earlier discoveries. choose from, with some specialized sub-choices recruitment of talent for startups is a primary and the inter-campus partnerships survive to focus of its “in the trenches” work. Its primary within options that expand the menu. Students Co-Curricular Programs support today’s entrepreneurship offerings. Today geographic focus is the Pasadena area, which must choose an Option by the end of their all three courses are team-based and assume freshman year. While there is no Entrepreneurship In addition to coursework and formal makes it a significant partner of Caltech and JPL. deliverables that are analytically dense and rely opportunities, a number of mostly student-run Option at Caltech, students can avail themselves heavily on interactions with “real world” people One program that has probably received the of a sequence of three entrepreneurship courses programs and activities have filled the role of as well as readings. E102 assesses the viability of entrepreneurship education and information most national play recently, because of its support within the Business Economics and Management yet-to-be commercialized Caltech technologies by the National Science Foundation, has been the Option of the Humanities and Social Sciences sharing at Caltech. The Caltech Entrepreneurship and students build a business case around them Club (http://caltecheclub.tumblr.com/) modestly Innovation Corps training program originally Division. These courses arose from a single which could lead to a viable company. E/ME 103 developed and co-taught by Silicon Valley engineering class taught in the 1990s (E102) by “aims to provide aspiring Caltech entrepreneurs is designed for students considering working in with the knowledge and connections to help veterans Steve Blank and Jon Fieber. It involves John Baldeschwieler, a very distinguished chemist technology companies, startups, or interested in an intensive 5-day Lean Launch Pad boot camp (National Medal of Science winner) who also launch the companies of the future.” A large going to business school. Student teams either part of its approach involves introducing aspiring offering at NSF-sponsored institutions. Thanks holds the informal Caltech record for leading assess a technology or technology field or perform to the efforts of the Caltech Entrepreneurship the most startup companies. Dr. Baldeschwieler entrepreneurs to the regional network of supportive an innovative capabilities consulting audit for an infrastructure in which Caltech is embedded. Club and its faculty advisors, Lean Launch Pad also is a convincing witness in his oral history for existing technology company. The early partnership is being offered on campus. A more tradition- the dramatic cultural changes at Caltech over This includes partnerships with Caltech’s Office with the Art Center in Pasadena evolved into E/ of Technology Transfer, Idealab, the Pasadena al, but equally important, kind of offering by the his long career11 that have enabled Caltech to be ME 105, which teams Art Center design students Angels, SoCalBio, TechZulu, LARTA, both Club has been a series of lectures labeled Startup a more entrepreneurial place. In his view, as the with Caltech students on location in a third-world USC and UCLA business schools, and other Law 101 and offered by DLA Piper, a prominent post Bayh-Dole period played itself out, and as 58 59 INNOVATION U 2.0: New University Roles in a Knowledge Economy California Institute of Technology law firm that has a significant business presence academia, it brings connections to UCLA, USC, students had served as President of the Caltech allows student teams as well as faculty to apply in entrepreneurship. Another club activity this and business leaders across greater Los Angeles. Entrepreneurship Club, and the two original for an award of $50,000 to support a promising year was a field trip toSpace X, the space travel inventors expanded their team with recruits from startup. (More about this program below). startup, for a tour and a discussion with Elon Musk, Another example of Caltech’s regional the Club and made further technical improvements boundary-spanning efforts in entrepreneurship founder of Space X (also co-founder of PayPal to the technology. They then competed in FLoW Boundary Spanning: and Tesla Motors, and Chairman of SolarCity). is a three-year project, First Look West (FLoW), (above) and although they didn’t win, they got University, Industry and Community supported by a U.S. Department of Energy grant many suggestions on how to sharpen the technology Each of the six Priority Areas of research One interesting thing about the Caltech secured by the Resnick Institute, in partnership and the business model. From that experience, mentioned above has a range of boundary-spanning Entrepreneurship Club is the composition of with USC and UCLA. FLoW builds on an existing they then participated in the Lean LaunchPad structures and processes, labeled by Caltech as the officers, which consists of undergrads as well five-year business plan competition organized by (above) five-day boot camp, and received significant Research Centers and Partnerships. Sometimes as a healthy percentage of doctoral candidates the three southern California technology-intensive feedback from potential customers and partners. they involve industry relationships, sometimes and post-docs. This suggests that entrepreneur- universities, and others in the western region, in As a follow-up the team is now working with they involve other major R&D performers, ship as a career path is much more on the short an effort to produce clean technology businesses. several Caltech faculty members who are providing sometimes they involve connections to major list of options for this cohort at Caltech, perhaps Specifically, the funds will support student groups, technical advice about the app, significantly government research agencies and uniformly, more so than at other institutions (echoing Dr. including Caltech’s Entrepreneurship Club and enhanced by testing it in their own homes. The given the culture of the university, they involve Baldeschwieler’s comments from ten years ago). Engineers for a Sustainable World, in their efforts most recent step was admission to the Los Angeles participation of faculty, graduate students, and to start new businesses around green energy CleanTech Incubator, with office space, wireless, Extra-Curricular Programs post-docs from across the university. We will technologies. The program culminates annually ongoing coaching, and the benefits of comparing not describe each, but will attempt to focus on The Caltech/MIT Enterprise Forum is part of with a western region student business plan notes with other tenants of the incubator. There those that seem to have more participation and a national network of events, modeled after ones competition (seven western states and two Pacific seem to be many stories like this at Caltech. support. For purposes of continuity, this section pioneered by the MIT Alumni Association in territories) focused on clean energy solutions, will parallel the order of Priority Areas as above: Cambridge and New York in the 1970s. The Forum with winners awarded cash prizes and a chance to Finally, it’s worth noting the expanded role compete for a National Grand Prize. The initial of other Caltech organizations in promoting is co-sponsored by the Caltech Industrial Relations • The Joint Center for Artificial Photosynthesis. competition, held in the spring of 2012, drew 100 and supporting entrepreneurship education in Center and the alumni associations of Caltech and This is a Department of Energy Hub, that student teams from 34 universities in 12 states. a university with no business school. Caltech MIT. It is a monthly event during the academic year, is budgeted for $122 million over five years, librarians, for example, take an active role, lecturing typically involving a panel of speakers, networking involves over 120 scientists and engineers, and An illustration of how the different parts of the in classes and speaking at student club events. The and often food. Topics include entrepreneurial includes Lawrence Berkeley National Lab as a entrepreneurial infrastructure, and individuals of library offers a Business Resources workshop in issues, such as finance, marketing, and business lead partner, as well as working relationships disparate disciplines and levels of training, can come researching businesses and industries, conducting planning, discussed by experts and practitioners. with Stanford, UC Berkeley, UC Santa Barbara, together was recently described on the Caltech market research with business databases, business Companies are featured and new opportunities in 13 UC Irvine, UC San Diego and the Stanford website that features Campus Life and News. The planning and business resources for engineers.14 life sciences, entertainment, medicine, energy, IT, Linear Accelerator. The Joint Center also serves story, How to Grow an Entrepreneur, opens with One of its workshops, on the patenting process, is and tapping into global markets are identified. as a hub for other DOE research teams across two students participating in a Caltech class project conducted by members of the staff of the Office the US. The program leverages recent advances The Forum is currently under the leadership that involved building a house to compete in the of Technology Transfer (OTT). Unlike many in chemistry, materials, and nanotechnology. of a Founding Executive Director of Pasadena 2011 Department of Energy Solar Decathlon. Their universities, the OTT is robust enough to critique contribution was an iPad-based energy control app Entretec, and operates an ambitious agenda and support student patenting and business • Light-Material Interactions in Energy Conversion. that seemed to pique the interest of people who of events. In addition to providing practical plan development, as well as faculty invention. This is a DOE Energy Frontier Research Center, toured the house. The two inventors concluded that support for local entrepreneurs both in and out of Even more significant, the OTT’s Grubstake which involves scientific collaboration with there was a need and potential market for “active program, a fund raised by university alumni, Lawrence Berkeley National Laboratory, and monitoring” of energy use in a home. One of the 60 61 INNOVATION U 2.0: New University Roles in a Knowledge Economy California Institute of Technology

the University of Illinois at Urbana-Champaign. via satellite, movements and height changes ago via a private grant, the TO has been involved from the Chair of the Engineering and Applied The Center is “creating new methods and of ice sheets to potentially predict eventual in a multidisciplinary program of research Science Division framed the mission: architectures for complex photonic materials ice loss; studying lignocellulose degradation addressing the question of how and why the for solar energy conversion”. The vision is by termite gut microbiota; and winning the earth’s crust and lithosphere are deforming over We have gathered people from computer to enable “light conversion to electrical and Reinventing the Toilet Challenge issued by timescales ranging from seconds to millions science, physics, biology and bioengineer- chemical energy with unprecedented efficiency.” the Bill and Melinda Gates Foundation. of years. Research involves both laboratory ing, economics, applied mathematics, science as well as field data gathering across computation and neural systems, • • Powering the Planet Center for Chemical Terrestrial Hazard Observation and Reporting the world; projects typically involve collabora- applied physics, control and dynamical Launched in 2010 via two major gifts, Innovation. This is supported under the NSF (THOR). tion with researchers from other institutions. systems, and electrical engineering to Center for Chemical Innovation Program, the THOR mission is to study, in an interdisci- think together about the fundamental and focuses on the production of fuel from plinary approach, how to anticipate, prepare • Beckman Institute. Endowed in the 1980s theoretical underpinnings of information sunlight, with emphases in oxidation catalysts, for, and address large-scale natural hazards. by the aforementioned Arnold Beckman, the as well as it practical applications… reduction catalysts and solar capture and This includes floods, wildfires, earthquakes, and Beckman Institute (BI) mission is “to invent charge separation. There are several university extreme weather. Current lines of work include methods, instrumentation and materials that • Kavli Nanoscience Institute (KNI). The Insti- partners including: Wisconsin, MIT, Penn the Caltech Virtual Shaker, which will be a will open new avenues for fundamental research tute is fostering cross-disciplinary collaborative State, Wisconsin and Texas A&M. gateway to a global database of building and in the chemical and biological sciences, and research in nanoscience, with emphases in bridge models, plus a capacity to analyze their to provide technological support for these nanobiotechnology, nanophotonics, and • Center for Bioinspired Wind Energy. In the performance under earthquake shaking via a activities.” It is particularly focused on “early large-scale integration of nanosystems. Its rich tradition of Caltech science going in the high-performance computing cluster (HPCC). development of research thrusts too innovative core research staff of over two dozen draws direction where ingenuity takes it, this center or too ‘high-risk’ for the regular sources of from physics, materials science, applied seems to have morphed into a component of • Seismological Laboratory/Southern California research support…” Organizationally, the physics, electrical engineering, aeronautics, a parent Center for Bioinspired Engineering. Seismic Network (SCSN)/Community Seismic BI operates across the Divisions of Caltech biology, geobiology, chemistry, mechanical Nonetheless, in the wind area work is underway Network. These facilities and research as a research facility and research-enabling engineering, bioinspired engineering, on more efficient designs of vertical-axis wind activities encompass Caltech’s longstand- organization. There are three major programs computational mathematics, information turbines and wind farms, partially inspired by the ing, since the 1920s, work in geophysical in the BI: five Facilities that provide instrumen- science, and technology. Recently reported spatial arrangements of schooling fish. Related phenomena tied to community earthquake accomplishments include the development work proceeds on flow control systems and information. Research foci include: earthquake tation and methodologies across the campus, of microscale accelerometers and the bio-inspired propulsion that mimic the shape early warning, engineering seismology, including within the BI; the Pilot Program, and kinematics of flying and swimming animals. geodynamics, and earth structure. Work by which accepts proposals annually for study creation of a mechanical device that can This is a great example of how the interdisciplin- SCSN in monitoring earthquakes in Southern projects (1-3 years, up to $200K annually); and measure the mass of a single molecule. ary culture of Caltech enables the leapfrogging of California involves a close partnership with nine Resource Centers that carry out research, • Materials and Process Simulation Center (MSC). the U.S. Geological Survey, as well as working develop new methods, instrumentation and concepts and findings across research problems. The MSC is one of the more long-lived centers relationships with several University of materials, and maintain and operate facilities. or institutes at Caltech, as well as one with the • The Ronald and Maxine Linde Center for Global California campuses, the National Science • Annenberg Center for Information Science and most continuity in leadership, and a distinctive Environmental Science. Founded in 2008, the Foundation and FEMA. The Community Technology. This initiative is an investment in model of sponsorship and agenda-setting. The Center’s research is wide-ranging in terms of Seismic Network (CSN) is an ongoing effort facilities as well as an intellectual framework that Director, William Goddard, is a Professor of problems, methods, and settings, but all are to provide 1,000 community volunteers with will guide work among individuals in several Chemistry, Materials Science and Applied addressing questions of past and future global in-home sensors, and thereby to enable creation associated disciplines. In 2009 the Walter and Physics. The objectives of the MSC are: climate change. Examples include: measuring of denser block-by-block Shake Maps. the isotopic composition of iron in the ocean to Leonore Annenberg Center for Information To develop methods required for first explore its impacts on marine plants; measuring, • Tectonics Observatory (TO). Founded a decade Science and Technology was opened. Comments 62 63 INNOVATION U 2.0: New University Roles in a Knowledge Economy California Institute of Technology

principles multiscale multi-paradigm are joint appointments that tie the two average in terms of various technology transfer Team, and has the distinction of being a founder, based predictions of the structures and organizations together and over 200 collabora- indicators is equally excellent. Illustratively, based over 30 years ago, of what is now the Association properties of proteins, DNA, polymers, tive projects have been conducted. Substantive on FY 2012 AUTM statistics,15 the Office of of University Technology Managers (AUTM). ceramics, metal alloys, semiconductors, collaboration is conducted through five NASA Technology Transfer (OTT) worked with some He came to Caltech from MIT. Fred Farina is organometallics and to apply these facilities at Caltech: the Infrared Processing and fraction of the 300 Caltech faculty members and the Chief Innovation Officer at Caltech and the methods to design new materials for Analysis Center; the NASA Exoplanet Science 600 research scholars, to execute 37 licenses or Executive Director of OTT. Previously he worked pharma, catalysis, microelectronics, Institute; the Spitzer Space Telescope Science options, 136 issued patents, 588 patent applications, as a research engineer in the GPS field and as a nanotechnology, and superconductors. Center; the NASA Herschel Science Center; and 343 invention disclosures, and 7 startups. No other patent officer in industry. He is a Caltech graduate, the Galaxy Evolution Explorer Science Science major university can claim that level of productiv- with an MS in Electrical Engineering. The rest In contrast to many other centers at Caltech, Center. The extent to which these relationships ity per faculty headcount. If one looks at similar of the licensing team has similar backgrounds of the MSC has been supported primarily by have resulted in technological innovations indicators, albeit computed per unit of research formal certification and private-sector experience. industry funding. At any given time, upwards with commercial applications is unclear. expenditures, the normalized statistics are equally of 10-12 industrial companies have supported impressive when compared to other universities. The OTT will work with faculty inventors the center, along with various R&D groups One factor that is unclear from this discussion How does this happen, particularly when one to orchestrate a licensing relationship with an within the federal government that have a of various centers and institutes (plus others realizes that Caltech did not have a technology established larger company, when the nature particular interest and mission in technology that were not discussed) is the modalities of direct transfer office until 1995, well past the founding of the invention and relevant markets suggest transfer. The Beckman Institute also provides private-sector participation. One, the Materials and bubble of new technology transfer offices that this is the best strategy; there is a parallel and logistical and some financial support for the Process Simulation Center (MSC), seemed to have followed the passing of Bayh-Dole in 1980? strongly preferred path to technology transfer MSC. Two levels of industrial participation significant financial and substantive involvement where the entity taking the invention to market have been used. Corporate Associates of the on the part of private industry, although many One answer can be found in all the cultural and is a start-up company. When working with an Center ($35K annually) attend an annual others have considerable substantive involvement. leadership factors described above. Caltech is a established company the typical outcome is a MSC workshop, receive reports and reprints This pattern of engagement contrasts with many university that does cutting-edge, basic science but license agreement that compensates Caltech for of publications, and establish contacts with of the cases in this volume. There are several also with an eye to solving the big problems that patenting expenses accrued in developing the graduate students. Corporate Participants will possible explanations for this history. One might confront society. Its history, particularly its more intellectual property, plus royalties and other fees directly fund (or co-fund) one or two specific be the disciplinary mix of Caltech, particularly the recent history, and its leadership have reinforced based on some formula mutually agreed upon. The projects ($120-200K per year), and have a prominence of some disciplines that have limited this mindset. It has also led to a technology licensing agreement will also preserve publishing much more extensive working relationship traditions of engagement with business. Other transfer organization that has amiable and mutually rights for the faculty inventor, and specify with the postdocs, MSC scientists, and MSC reasons might be the extensive focus on—and supporting relationships with faculty and students. various commercialization milestones. Examples Corporate Advisory Board. Various approaches startling success in—theory-driven fundamental An important operating principle seems to be cited by OTT include “licensing the automated to proactive technology transfer are built into science. Universities differ on this for many reasons. spending a lot of time with inventors, working DNA sequencer to Applied Biosystems and the MSC operations Nonetheless, Caltech has been very successful in closely with them throughout the technology JPL MEMS gyroscope to Boeing Hughes.” moving science-based innovation into the world transfer process, and trying to maximize the • Caltech and JPL. Caltech and the Jet Propulsion via technology transfer, as per the next section. commercialization potential of their research. However, there is a strong impetus both within Laboratory have what might be described OTT and among Caltech faculty inventors to take as a separate-but-together relationship. JPL Boundary Spanning: A second answer can be found in the staffing an entrepreneurial approach to commercialization. is a division of Caltech, was founded with Technology Transfer of OTT, which is technically deep and very Here the typical transaction vehicle will be an Caltech scientists, but is a NASA-funded experienced. The Licensing Team is composed option (usually 12 months) with the startup, facility, primarily focused on space exploration As noted in the introductory section of this of eight professionals, and the Administrative specifying milestones such as raising development and related research and development. There case, Caltech has a commendable record in terms Team consists of seven individuals. Of note, Larry funds sufficient to last up to two years, a modest of research funding per faculty member. Its batting Gilbert is a Senior Director on the Licensing option fee, moderate equity for Caltech, significant

64 65 INNOVATION U 2.0: New University Roles in a Knowledge Economy California Institute of Technology equity for the inventor(s), technology development 5. What are the present commercial resources in the cause of creating an entrepreneurial of today is different from the Caltech of the milestones, and the like. This kind of arrangement techniques for solving the problem? culture and ecosystem, but one aligned with their 1980s. In fact, the Caltech of that era was can take some time to play itself out and OTT staff mission of discovery. As a result, entrepreneurship somewhat of a laggard in getting involved in will articulate a road map for the faculty inventor. 6. Describe a plan or protocol for solving is organic at Caltech. It naturally spans boundaries, the technology transfer activities enabled by Caltech has had equity in over 80 startup companies the problem that is target-specific. perhaps because there is no business school. Recall Bayh-Dole, much less than the growth of the since 1995 when OTT was founded. As an excellent that this operational approach fits perfectly with the faculty and student culture of entrepreneur- culture building practice one can peruse thumbnail Summary and Parting Comments Engineering and Applied Science Division Chair’s ship of the last decade or so. Nonetheless, there descriptions of these startups on the OTT website, observation that innovation requires “the barriers is no doubt that Caltech is now a leader in all the and see how they have blossomed. One of the The Caltech case is an example of a small, elite between disciplines, departments, and even divisions organizational, leadership, and cultural ingredients descriptors is “current status” and for many of the university that has leveraged its distinguished remains very low so that both faculty and students necessary to address innovation, entrepreneur- spinoff companies there will be a “Acquired by XYZ history of basic science excellence into a can cross them if they wish.” The interdisciplinary ship, as well as the grand challenges of science. Company” note. An operating premise of the OTT campus-wide innovation culture that is having culture at Caltech “necessitates that turf and labels focus on startups is that a “reasonable success rate huge impacts on regional economies as well as become secondary to intellectual exchange.” commensurate impacts on some of the largest over a 10-year period will add $50 million to the Endnotes Caltech general funds.” OTT describes its program problems confronting American society. In This offers the intriguing possibility that the strategy as enabling “two bites of the apple.” That 1993, while chairman of the board at Intel, placement of a boundary-spanning discipline 1 Moore, G. E. (1994). The Accidental (entrepreneurship) within a business school silo is, enable startups that allow faculty inventors to Gordon E. Moore said, in a talk at Caltech: Entrepreneur. Engineering and Science, Summer. acquire significant equity and downstream payouts, may actually inhibit technology entrepreneurship, Most of what I learned as an entrepreneur 2 and then assume that many of them will make especially to the degree that turf issues prevent These are fromAt a Glance, based on the was by trial and error but I think a lot of this significant turnaround donations to Caltech. the collegial interaction of the entrepreneurship 2010-2011 academic year at Caltech. really could have been learned more efficient- students with the technical science and engineering 3 One activity that is being executed by OTT ly. At a place like Caltech, broadening the students and faculty. Many current thinkers National Science Foundation, National to facilitate inventors developing an idea is the curriculum to include some instruction in in entrepreneurship (including the Kauffman Center for Science and Engineering Statistics, Technology Transfer Grubstake Program. This business…would certainly be useful….But Campuses Program) suggest that technology FY2011. Table 14. Higher education R&D is an endowed fund to provide grants of “about a technical education is probably the best E-ed is best centered outside of business schools. expenditures, ranked by all R&D expenditures, $50,000” to better support faculty and student start for an entrepreneur in a high-tech Recent research suggests that while business skills by source of funds: FY2011. Table 15. Higher entrepreneurs/ licensees in their efforts to move business. Don’t change the basis of what indirectly support entrepreneurial creation (startups, education R&D expenditures, ranked by all an idea along the path to viable commercial- you do well. For Caltech, what it does well new products/services), the greater impact comes R&D expenditures, by R&D field: FY2011. is train the best scientists and engineers in ization. Proposal guidelines include: from supportive entrepreneurial networks and 4 Office of Research Administration. Stanford the world. My advice to Caltech is this: ecosystems. It may be easier to teach business University (2012, February 22). Annual Report - 1. Be brief. help students a bit if they want to move in skills to scientists and engineers than it is to teach Fiscal Year 2011. entrepreneurial directions, but don’t change science and engineering to business students. 2. Be specific. the basic nature of a Caltech education. Universities that integrate entrepreneurship into 5 Rosakis, A.. Caltech, Division of Engineering technical schools may see improved entrepreneurial and Applied Science. Chair’s Message. Retrieved 3. Identify and describe a specific problem in Perhaps one secret to Caltech’s success is that it production over those attempting to integrate from http:www.eas.caltech.edu/about/chair need of a better solution (s). Does the solution has taken the above advice of one of its most famous science and engineering into business schools. have application to the problem in general? alumni. They still don’t have a business school. But 6 Clough, G. W. and Chameau, J.-L. (1980, they have broadened their curricula to include some The Caltech experience is also an interesting October). Measured effects of vibratory sheetpile 4. Describe what you have done to date that business entrepreneurship instruction, and they story of important shifts in the organizational driving. Journal of the Geotechnical Engineering relates to a possible solution to the problem. have enrolled their sizable and diverse institutional culture and mindset of an institution; Caltech Division. Vol. 106, No.10, pp.1081-1099. 66 67 INNOVATION U 2.0: New University Roles in a Knowledge Economy

7 Morrison, P. (2009, June 13). Jean-Lou 15 Association of University Technology Chameau: Cooking up ideas. Los Angeles Times. Managers. (2013). AUTM U.S. Licensing Activity Survey: FY2012. Deerfield, IL: Association 8 Tornatzky, L.G., Waugaman, P. G. and Gray, of University Technology Managers. D.O. (2002). Innovation U: New University Roles in a Knowledge Economy. Research Triangle Carnegie Mellon University* Park, NC: Southern Growth Policies Board.

9 Chameau, J. A. and Carmichael, C.S. (2010). Curiousity and the transformative impact of fundamental scientific research. In Weber, Carnegie Mellon University (CMU) is a small Carnegie Institute of Technology, College of Fine L. E. and Duderstadt, J. J. (Eds.). University private university of 12,000 students (half Arts, Dietrich College of Humanities and Social Research for Innovation. Paris: Economica. undergraduates, half graduate students) and 1,400 Sciences, Tepper School of Business, H. John faculty that is located in Pittsburgh, Pennsylvania. Heinz III College, Mellon College of Science, and 10 Stokes, D. (1997). Pasteur’s Quadrant. The University began as the Carnegie Technical the School of Computer Science. Interestingly, Washington, D.C.: The Brookings Institution. Schools in 1900 with a $1 million donation in addition to the Pittsburgh campus, CMU has made by industrialist and philanthropist Andrew offered since 2002 graduate programs in computer 11 Baldeschwieler, J. (2003) John Baldeschwieler Carnegie. Carnegie, a self-described “working boy,” engineering and software systems in Silicon Valley, Interview by Shirley K. Cohen. Pasadena, emigrated from Scotland with his family in 1848, enrolling about 200 MS and PhD students. Many California, January-February, 2001. Oral History settling near Pittsburgh. He was self-educated, yet of the enrollees are from the ranks of CMU Project, California Institute of Technology Archives. nonetheless became the entrepreneur who founded alumni working in the area. A similar program 12 As this case was being written, all three classes what became US Steel, the world’s largest producer is being launched in Rwanda, starting in 2014. are being taught by Ken Pickard, Visiting of steel by the end of the nineteenth century. A variety of national rankings attest to the Professor of Mechanical Engineering, who Perhaps because of his modest roots, Carnegie quality of CMU’s programs. has a PhD in Physics from the University of was not interested in supporting the nation’s most Times Higher ranked CMU 22nd in the Pennsylvania, and an extensive corporate and esteemed universities, which he felt were already Education of London world and 15th in the US in 2012. In 2010, entrepreneurship background. He has been “large enough” and too purely academic in focus. according to a Wall Street poll of job recruiters, affiliated with Caltech for over 12 years. The need, as he saw it, was to create technical institutes to provide a more practical education CMU was ranked 1st in computer science, 4th in 13 Motrunich, A. (2012, November 8). to local workers in the “crafts and scientific finance, 7th in business and 10th overall. Reflecting How to grown an entrepreneur. Caltech vocations so as to produce skilled workmen, such its excellence in the arts, the Hollywood Reporter News. Retrieved from http://www.caltech. as machinists, mechanics, decorators, and so on.”1 rated the CMU School of Drama 4th in the world. edu/content/how-grow-entrepreneur CMU was one of 25 universities in the world invited In 1908 Carnegie increased his endowment by the World Economic Forum to join its Global 14 Ramachandran, H., Toot, L. and Smith, of Carnegie Tech to $8 million and in 1912 the University Leaders Forum. It has consistently C. (2002). Developing E-Business renamed Carnegie Institute of Technology granted placed highly in the U.S. News & World Report Information Without a Business School. its first 4-year degree. The Institute merged with university rankings. Computer science, computer White paper presented at Special Libraries the Mellon Institute of Industrial Research in engineering, and business programs are considered Association (SLA) 2002 Conference. 1967 to become Carnegie Mellon University. among national leaders, as are its programs in art, CMU is made up of seven colleges and schools: design, and associated disciplines. CMU is also

68 * This case was written by Elaine Rideout and Louis Tornatzky. INNOVATION U 2.0: New University Roles in a Knowledge Economy Carnegie Mellon University known for its strengths in interdisciplinary and and enhanced commitment to local economic local community, CMU’s historic roots, both on its traditions of innovation, problem multidisciplinary education and scholarship. development, have allowed it to become a as a technical institution and as an institution solving, and interdisciplinarity. major regional asset. According to the Carnegie established to meet the educational needs of a CMU’s ratings are also matched by more Mellon University website, in the past 15 years, local, working population, have fostered a tradition In a more elaborate section of prose in an objective indicators of its science and technology CMU has helped to create more than 300 of engagement. CMU’s unique spin on what it Overview section of the 2008 document, the above accomplishments. Per National Science Foundation new companies, adding approximately 9,000 means to be engaged can be seen in its current Vision is broadened by noting, “we collaborate FY2011 data,2 CMU’s total research expenditures new jobs to the US economy. In Pennsylvania vision and historic mission and values statements. across disciplines, and the initiative to do so comes were $242.8 million, ranking 84th. Not surprising, alone, CMU spin-offs represent 34 percent of Two important documents speak to these issues. from the ground up, not the top down. We are 82.7% was from Federal government sources, the total companies created based on university One is the Carnegie Mellon Strategic Plan for nimble and entrepreneurial, moving quickly but a respectable 7.3% came from Business. In technologies over the past five years. 1998; the second is the Carnegie Mellon Strategic and prudently when we see an opportunity.” terms of R&D fields, the strengths of CMU are apparent, with the total of Math and Computer CMU’s pragmatic education approach has Plan for 2008. Since the meetings, processes and The Mission statements are relatively Sciences ($98.9 million), and Engineering ($93.5 produced educational innovations over the interactions that led to these documents usually consistent over the two time periods. The million) accounting for 79.2% of all R&D. Life years. Today cross-disciplinary study is the preceded the unveiling of the final product by 1998 statement included the following: Sciences accounted for another 6.3% and Physical norm rather than the exception. CMU offers at least many months, these two documents are Sciences 4.9%. Interestingly, Psychology was nine interdisciplinary Bachelor’s degrees and useful for understanding the goals and aspirations To create and disseminate knowledge a shade below the Physical Sciences at 4.0%, 19 advanced interdisciplinary degrees. These of CMU over much of the last two decades. and art through research and artistic likely reflecting the role of cognitive science in include, for example, combined degrees in design expression, teaching and learning; and to Let’s first look at the CMU Vision as expressed software development and expert systems. and communications, arts and technology, and transfer intellectual products to society. in these planning documents. The 1998 science and informational technology. But despite statement was: CMU is located in the Oakland section of these and other changes, the Carnegie Mellon To serve our students by teaching Pittsburgh. Pittsburgh itself had a population of them problem-solving, leadership and University of today has much in common with Carnegie Mellon will be a leader among 305,704 per the 2010 census, while the Metropo- the Carnegie Technical Schools of 1900. The teamwork skills, and the value of a educational institutions by building on litan Statistical Area (MSA) that includes several school still encourages great thinkers with diverse commitment to quality, ethical behavior, its traditions of innovation, problem contiguous Pennsylvania counties, plus two West backgrounds to collaborate toward practical society and respect for one another. solving and interdisciplinary collabora- Virginia counties and one Ohio county, had a 2012 goals. It preaches collaboration and innovation tion to meet the changing needs of society. To pursue the advantages provided by a population of 2,360,733. The industrial heyday across traditional barriers of knowledge, and is diverse and relatively small university of Pittsburgh proper was most prominent in the dedicated to enhancing undergraduate education In clarifying paragraphs, the 1998 Vision community, open to the exchange of ideas, mid-20th century when it was still a major durable so that students can explore other disciplines proclaims “we can continue to lead advances where discovery, creativity, and personal goods producer, particularly in steel. Since then the while maintaining a core focus on their primary in educational and technological innovation, and professional development can flourish. economy has significantly transitioned to healthcare, subject. Realizing that today’s graduates must scientific discovery, creative expression and artistic financial services, education, technology, robotics, understand international issues, Carnegie Mellon production by fostering an atmosphere of intellectual There was also some interesting prose that and allied businesses. The major institutions is now a global university with an ever-expanding followed the 1998 Mission statement and added of higher education in the metropolitan area, presence across international borders. excitement, innovation and entrepreneurship.” including CMU and the University of Pittsburgh, some operational clarity such as “we are interested The 2008 Vision statement is similar have played significant roles in these transitions. University Culture: not only in theory and practice, but also in and consistent: production, or making, for example, making Goals and Aspirations While CMU does not have great size, devices and processes, art, hardware and software, Carnegie Mellon will meet the its commitment to excellence in a variety of While some private universities have a tradition new management tools and literary works…[but] changing needs of society by building technical and scientific areas, supportive culture, of remaining aloof from outside interests and the also nurture a concern for the welfare of others

70 71 INNOVATION U 2.0: New University Roles in a Knowledge Economy Carnegie Mellon University and a commitment to improve the world.” This is There is substantial evidence that faculty have Leadership an advocate for applied science. Baker resigned in ambitious stuff. The 2008 Mission statement is very embraced and internalized organizational norms and 1935, during the depths of the Great Depression. similar to the 1998 version, except that sustainabil- values of innovation, problem solving, interdisci- In his letter to the mayor of Pittsburgh ity is added as a benefit of knowledge transfer. plinary focus, entrepreneurship, and engagement. establishing the Carnegie Technical Schools, Robert Doherty, the third president, served As one informant reported, “When your current the early 20th century precursor to CMU, from 1936 to 1950, out of the depression and The evolution and consistency over time of the department chairperson spent several years as a Andrew Carnegie wrote, “My heart is in the through World War II and into the post-war Mission, Vision and associated action strategies principal in a start-up, you figure out that asking work.” The influence of Carnegie’s leadership period. As part of the national defense effort, the assumed a certain kind of university capable of for a leave isn’t going to be a big deal.” A practice continues, as this hands-on creed is the official university established a number of government- their execution. For much of its history CMU that requires new faculty appointments to be University motto that students, faculty and staff funded research programs including the Nuclear was not a research-intensive institution. In fact endorsed by other academic departments is a good of Carnegie Mellon University live and work by. Research Center. Doherty’s long-term impacts its transformation in this direction was enabled example of the CMU culture of interdisciplinarity. on curriculum and community engagement by two influences. One was the merger of the CMU’s technical, problem-solving tradition were also significant. The Carnegie Plan, which mostly undergraduate-focused Carnegie Institute Since this section is about issues of organization- began with its first president, Arthur A. he championed, linked fundamental technical of Technology with the Mellon Institute. In al values and culture, it is probably appropriate to Hamerschlag, who led the founding and uneven knowledge to practical problem-solving and 1913 Andrew and Richard Mellon established insert here some lighter themes that are integral growth of Carnegie Technical Schools from mandated that students take courses outside their the Mellon Institute of Industrial Research as to what CMU is all about. CMU is a university 1903 until 1912, and then Carnegie Institute of core discipline. Thus, for science and engineering an independent contract research organization. that honors the cultural traditions of its founders. Technology until 1922. He was chosen because majors a quarter of their courses had to be in the It flourished for many years and worked with Andrew Carnegie’s Scottish heritage and Andrew of his extensive background in trade schools in social sciences and humanities. This “liberal/ companies nationwide. The merger in 1967 had the Mellon’s Scots-Irish ancestry are celebrated with New York. He supervised the building of the professional” curriculum was a major contributor to effect of accelerating the transition of CMU into vigor to this day. For example: The CMU Kiltie original campus, started the original schools: the current interdisciplinary orientation of CMU. a much more research-intensive university because Marching Band dresses in full Scottish regalia; School of Science and Technology, School of Fine of the infusion of people and facilities. The second Scotty, the Scottish Terrier, is the school’s mascot; and Applied Arts, the School for Apprentices and John C. Warner served as president from 1950 influence was the role played by several key leaders the annual Ceilidh celebration takes place at the Journeymen, and the Margaret Morrison School to 1965, topping off a long and distinguished during the next two decades. Between 1972 and CMU Tartans homecoming football game; the for Women. Nonetheless it quickly became clear career at CMU as a productive professor and 1990 CMU’s research expenditures leaped from Tartan is also the name of the student newspaper; that the three-year very hands-on program did then department head of Chemistry, dean of $12 million to $110 million. Thus by the time of The Thistle is the school’s yearbook; and finally, not create the career opportunities for graduates graduate studies, and vice president at the Institute. the 1998 Strategic Plan, CMU was well along as a Skibo Gymnasium bears the moniker of Carnegie’s that were anticipated. Hamerschlag then led the Important for this discussion, during World War research-intensive, graduate training university. Scottish Highland estate. CMU is the only US development of bachelor’s and master’s degree II he played a key role on the Manhattan project, college offering a Master’s degree in bagpiping, and programs, and the renaming of the school as leading the research on the purification and Over the course of the maturation of the CMU the University’s Scottish Pipes and Drums Band, Carnegie Institute of Technology in 1912. metallurgy of plutonium. He understood the mission, the strategy and goals around innovation one of the nation’s best, actively competes in Grade Enrollment grew, as did the physical size of the processes of well-funded industry-scale research implemented by several institutional leaders during III Highland Games competitions across the eastern campus. A Division of Applied Psychology was and its implications for the Institute. Working the post WWII period included a number of US and Canada. It is not clear whether or how these formed which began a research tradition that was with Herbert Simon and Allen Newell, he faculty inducements. While traditional academic activities relate to innovation; however they are to grow significantly later on. Hammerschlag enabled the growth of computer science research expectations and standards remained very high, illustrative of a playfully creative culture and a school served until 1922, and was followed by the fairly and coursework throughout the university. norms and policies (leaves-of-absence, for example) that has stayed true to, and continues to celebrate, placid 13-year administration of Thomas S. Baker, Warner helped raise the funds to establish the have traditionally been supportive of faculty its roots, a surprising commonality of a number who improved the physical appearance of the Computation Center, and encouraged the entrepreneurship. As a consequence, the typical of the successful Innovation U’s in this volume. campus. He also established research laboratories partnership between the Graduate School of technical, scientific, and business department can for metals, coal, chemistry and physics, and was Industrial Administration, and the departments lay claim to its fair share of successful entrepreneurs. of psychology, electrical engineering and 72 73 INNOVATION U 2.0: New University Roles in a Knowledge Economy Carnegie Mellon University mathematics to make a robust growing initiative. small size, stressed the importance of achieving a Science, the School of Computer Science, and plinary focus, and community engagement were CMU’s leadership in this area started here. comparative advantage, a focus on excellence in the College of Humanities and Social Science’s reinforced and reaffirmed by successive incoming certain fields so that CMU could outdistance its Psychology Department. In addition, he was Presidents. Struggling to emerge from the past And it continued during the presidency of H. competitors. Although CMU’s historical strengths a supporter of the university’s commitment to decade’s economic downturn appears to have Guyford Stever, from 1965 to 1972. A Department as a pragmatically oriented technical institution entrepreneurship. At least as important, he became reaffirmed University leaders’ convictions about of Computer Science was established in 1965 helped dictate some of its foci, the specific choices a role model for the CMU scholar: a problem how closely intertwined CMU’s future is with and began offering a PhD program. The College made by Cyert and his colleagues and successors solver of unbounded curiosity who works at the the health of local industry and community. To of Humanities and Social Sciences was formed, were nonetheless visionary. Early and significant intersection of various disciplines yet simultane- date, this recognition has resulted in an expanded, as was the Mellon College of Science and the entry into emerging fields like robotics and software ously achieves the pinnacle of scholarly recognition. more deliberate, more focused commitment to School for Urban and Public Affairs. The most engineering, encouragement of entrepreneurial impacting local and regional economic development significant organizational change under the Stever activities and, later on, development of “Andrew,” During the Presidency of Robert Mehrabian outcomes through entrepreneurship and other administration was the merger in 1967 of the one of the nation’s first campus-wide computer (1990-1997) a number of undergraduate academic kinds of town-gown-industry partnerships. Mellon Institute and the Carnegie Institute of networks, were by-products of this approach. The programs were enhanced and several building Technology, to form Carnegie Mellon University. Computer Science department in the College projects were undertaken. In terms of innovation- In July 2013, Subra Suresh became the ninth The College of Engineering morphed into the of Science became the School of Computer focused activities, a technology-transfer program president of CMU. He took the helm at a time Carnegie Institute of Technology (engineering) Science in 1988 and the Robotics Institute was was started and the President and the University when Pennsylvania and Pittsburgh are faced with and the Mellon College of Science. A biographi- established in 1988 as well. The payoffs from these became involved in regional development through particularly intransigent economic challenges. cal note on Stever is also important: during World investments are easy to see: CMU’s robotics and the Pittsburgh Technology Center and the Before coming to CMU, Dr. Suresh previously War II he was a member of the staff of the famous computer/software programs are ranked among Regional Economic Revitalization Initiative. served as director of the National Science radiation laboratory (“RadLab”) at MIT, and then the best in the world and are vehicles for intensive Foundation, and Dean of the School of Engineering Subsequently, during the presidency of Jared L. scientific liaison officer for the National Research interaction with industry. At the close of the at MIT where he helped create two new state-of- Cohon (1997-2013), research expenditures grew to Council, based in London. So, like John Warner Cyert administration CMU had reached the status the-art laboratories, the MIT Transportation $242.8 million in FY2011 and the performance of (above), he was part of the network of individuals of a nationally prominent research university. Initiative, and the Center for Computational linked to the big-dollar big-mission R&D of the the Center for Technology Transfer and Enterprise Engineering. He also led MIT’s efforts in establish- war years, and by extension to people like Vannevar While not a President, Dr. Herbert Simon Creation (CTTEC) reached national prominence ing the Singapore-MIT Alliance for Research Bush, who left MIT to be the federal science also had a profound and lasting impact on CMU’s for its performance in launching startups as well and Technology (SMART) Center; and oversaw czar for Franklin Roosevelt. President Stever left culture. Simon was an intellectual giant whose as implementing novel policies to enable faculty the recruitment of a record number of women CMU to become Director of the National Science interests and curiosity about human decision- entrepreneurship. He also played a leadership faculty members in engineering. At NSF, he Foundation and then Presidential Science Advisor. making and problem-solving processes could role in two Strategic Plans (1998 and 2008) that established several new initiatives, in particular the not be confined to a single field or discipline. A were participative, inclusive and set new directions NSF Innovation Corps. Most of these programs The six-year Stever presidency transitioned political scientist by training, Simon received the for the University, particularly in innovation- seem to emphasize substance or goals that are to the eighteen-year presidency (1972-1990) of Nobel Prize for economics and major national related activities. In June 2013, the University Richard M. Cyert. This was a period of rapid very consistent with what CMU is all about. awards for his work in cognitive psychology, completed “Inspire Innovation: The Campaign growth in research and programs for CMU. In automation, computer science, political science, for Carnegie Mellon University,” exceeding its Boundary Spanning: 1972 CMU was performing $12 million in management, and operations research. Simon is $1 billion goal to build its endowment, support research, but at the close of the Cyert presidency Entrepreneurship also considered one of the founders of the field of faculty, students and innovative research, and it was doing $110 million. He was one of the first artificial intelligence. Simon influenced CMU in enhance the physical campus with equipment Because of CMU’s pragmatic approach to university CEOs to embrace a business model several ways. First, he played a major role in the and facility improvements. CMU’s commitment education and its focus on what students do for running a university. He was a pioneer in the formation of the Graduate School of Administrative to innovation, problem solving, multidisci- with their education, entrepreneurship is a use of strategic planning and, because of CMU’s 74 75 INNOVATION U 2.0: New University Roles in a Knowledge Economy Carnegie Mellon University natural priority university-wide, not just in the establishment of programs and centers that can meet entrepreneurs and business leaders, and Non-profit organizations, schools, and business school. For example, entrepreneurial “boundary-span” across departments or colleges. test theories, models, and strategies learned government agencies improve their technology startups are mentioned in the second sentence Some involve course credits and are organized into in the classroom in the real world. The early use, management, planning and integration of the first statement about the University that majors, minors or concentrations. Others may Carnegie tradition of requiring engineers to by working with Carnegie Mellon students. visitors see on the CMU main webpage: have nothing to do with courses or degrees, but are take liberal arts classes to ensure a well-rounded Students develop technical consulting and delivered by a University function or organization. education has spread to the other disciplines management skills while collaborating on-site CMU has been a birthplace of innovation CMU has also developed collaborative relationships as well. Today Tepper business students must with a leader of a local organization. Student throughout its 113-year history. Today, we with entrepreneurial programs that have limited or also choose a minor from another college on Consultants are on-site weekly to work with are a global leader bringing groundbreak- no formal linkage with the University, but which campus and take a variety of supplemental community leaders to identify, plan, and ing ideas to market and creating successful students may nonetheless affiliate with and use. breadth courses outside of the business programs. implement ways in which technology can startup businesses. Our award-winning Likewise, the entrepreneurship courses taught at help the organization better fulfill its mission. faculty members are renowned for In sum, entrepreneurship learning opportuni- Tepper’s Don Jones Center (both undergradu- There is no fee to participate, but organizations working closely with students to solve ties at CMU involve a mix of three approaches: ate and graduate) are open to all students, not must invest significant time and effort during major scientific, technological and societal • Course-based learning related just business school students. Undergraduate the semester-long partnership so as to achieve challenges. We put a strong emphasis Curricular. to getting a credit, completing a major or a students who wish to graduate with an sustainable technology improvements. on creating things—from art to robots. minor, or meeting a degree requirement; entrepreneurship “track” in their discipline take Our students are recruited by some of the six courses, beginning with the introductory • Graduate Entrepreneurship Curricula. At the graduate level, the MBA program has three world’s most innovative companies. • Co-Curricular. Activities that are offered or Entrepreneurship for Engineers, or Scientists, tracks focused on innovation commercializa- enabled by CMU organizations but which are or Computer Scientists. They take a market tion, including the Entrepreneurship Track, As in other areas, entrepreneurship instruction generally separate from courses and degrees research and finance course, as well as “Funding the Management of Innovation Track, and the has reaped the benefit of being an educational (e.g., a club, a business plan competition); Entrepreneurial Ventures,” and “New Ventures innovation “first mover.” Formal courses in Creation.” Then they take two of nine electives Technology Leadership Track. Non-MBA entrepreneurship have been offered at CMU since • Extra-Curricular. This includes activities that which include International Management, graduate students are also encouraged to 1972. Recognized as one of the first business may be “outside the walls” in location and Open Innovation, Entrepreneurship Practicum, enroll. Science, engineering, computer schools to focus on entrepreneurship as a distinct governance and are likely to be “real business” Negotiation and Conflict Resolution, and science, robotics, fine-arts and design school arena of management study, the entrepreneurship in terms of intent and desired outcomes, but Web Business Engineering. students, as well as MBAs, learn about program has consistently been ranked as one of the which nonetheless have linkages to CMU. technology commercialization, marketing, best in the country. On the social enterprise side, the Heinz finance, organization development, and Curricular Programs School offers six undergraduate (and two business planning, and they work in teams Entrepreneurship instruction is also more easily on capstone projects. Required courses The curricular programs in entrepreneurship graduate) courses in Social Innovation that integrated into the disciplines at CMU than at include: Commercialization and Innovation at CMU, described below, tend to be scattered are open to any student campus wide. The other universities, perhaps because of a longstand- Strategy, Business Planning and Management, around the University and reach both courses cover topics including Microfinance ing tradition of interdisciplinary studies and Contracts, and the Swartz Entrepreneurial undergraduate and graduate students. and Development, Entrepreneurship, the historically pragmatic, applied research and Technology for Developing Countries, and Leadership Speaker Series. The curriculum education culture. Many universities have struggled • Undergraduate Entrepreneurship Curricula. Social Enterprise Incubator. The Technology combines theory with practice through a and often failed to overcome bureaucratic inertia CMU’s undergraduate courses in entrepreneur- Consulting in the Community course (TCinC) mix of coursework, hands-on venture capital and turf obstacles in order to establish entrepreneur- ship teach students to think like an entrepreneur, is a special university-community learning exposure, corporate consulting, and the close ship initiatives outside of business schools. solve problems, and create solutions. Students partnership jointly taught by instructors at interaction with a world-class faculty, all having CMU has successfully integrated entrepreneur- write business plans, work on field projects, Heinz and the Computer Science School. successful VC or entrepreneurial backgrounds. ship education across the disciplines through the

76 77 INNOVATION U 2.0: New University Roles in a Knowledge Economy Carnegie Mellon University

An excellent example of a structured, interdisci- tailor the degree to their personal interests, CMU tradition of innovative and pragmatic McCune Foundation to provide financial plinary collaboration approach to teaching background and professional goals. design and engineering. The MII-PS has aid for undergraduate and graduate students innovation creation and commercialization become a pioneer in the field of integrated who are entrepreneurs and seed money (up to is CMU’s Master of Integrated Innovation Each entering student already has an undergrad- product development, and has become so $50,000) for the most promising companies for Products and Services(MII-PS), formerly uate degree, skills and experience in one of popular that in 2013 it evolved into its own they and faculty establish. Another goal of the known as the Master of Product Development the three areas, which allows them to build Institute with programs in executive education, grant is to make the region a launching pad program (MPD). The MII-PS is supported skills and knowledge in each of the other two and applied research including industry for companies and to keep these businesses by the Integrated Innovation Institute, a critical innovation fields. Courses include consortia, in the works. The Institute will be and jobs in Western Pennsylvania. All too joint initiative of the Carnegie Institute of Industrial and Engineering design fundamentals housed in its own building at the main campus often in the past, CMU spinout companies Technology, the College of Fine Arts, and (Design students take the engineering course entrance, to provide a “gateway highlighting and their employees have left the state for the Tepper School of Business. The Institute and Engineers take the design course), New CMU’s interdisciplinary innovative culture.” Silicon Valley or other greener pastures. also houses the MS in Software Management Product Planning and Management, Innovation In 2014 its enrollment will double. As at the Silicon Valley campus. The program and Entrepreneurship, and Market Research/ other universities replicate or build on this The new center enables the sharing of connects CMU Innovation MBAs with Ergonomics. MII-PS students also take two three-discipline teaching/learning commercial- resources, bringing together a broad spectrum other creative and innovative Master’s Degree electives from a wide array of options. ization approach, it may well prove itself of educational and experiential activities focused on innovation and entrepreneur- students from across the disciplinary spectrum. In the spring they also take the capstone to be one of the more effective educational The curricular focus is at the intersection approaches to innovation and entrepreneurship ship. It is a “one-stop shop” for CMU faculty, Integrated Product/Service Development students, staff, and alumni. CIE connects of three disciplines—Design, Engineering, (IPD) course with 2nd-year MBA students. production. The MII-PS /MPD program has and Business—and Institute Directors and consistently been ranked in the top three Best students to real-world entrepreneurial Working in interdisciplinary teams on industry- opportunities including: starting a venture, faculty come from these areas. The program’s Graduate Programs in Industrial Design by U.S. sponsored projects, the emphasis of the course joining an emerging company, bringing an directors include a Professor in the School is on the early, “fuzzy front end” stage of News & World Report, and is one of the Top of Design in the College of Fine Arts, a 30 World’s Best Design Programs as reported entrepreneurial perspective to corporations, product development. Each team focuses on or starting a business right after graduation. Professor in the Department of Mechanical identifying, understanding, conceptualizing, by Bloomberg Businessweek magazine for its Engineering who also has appointments in integration of design, business, and engineering. Other opportunities are found in the venture and realizing new product opportunities capital/private equity industry, consulting the School of Design and Computer Science, for their industry sponsor. Teams develop a Co-Curricular Programs sector, and through social entrepreneurship. and a Professor who has appointments in form model, function model, marketing plan, both the Tepper School of Business and the and manufacturing plan for the product. The most significant co-curricular programs The CIE serves the entire University, allowing Department of Mechanical Engineering. Each year, student inventions lead to patent supporting entrepreneurship include the following, both students (undergrad and grad) and faculty MII-PS is a one-year professional degree applications. This combination of structure although this is a fluid and changing support members a central place to pursue commercial- program that focuses on the creation of and flexibility, combined with interdisciplinary environment. ization of research and entrepreneurial projects. products, services, and interactive experiences teamwork and interaction with industry The objective is to “speed advances from the lab • The Center for Innovation and Entrepreneurship that define new product opportunities that professionals on real-world product to the marketplace” and all University resources development, gives students a distinctive (CIE). A major campus hub for co-curricular and schools are collaborators in this effort. exceed user expectations. The program support of entrepreneurship education is immerses students in an interdisciplinary experience and competitive advantage. CIE’s Oakland-based incubator is a converted the CIE, a program that operates under the horse barn, set up for CMU entrepreneurs. environment at both the program and The Integrated Innovation Institute and its co-leadership of the Tepper School of Business university level. Students complete a series of The incubator provides technological and MII-PS transdisciplinary approach encompass- and the School of Computer Science. The business know-how, and makes available required courses in design, engineering, and ing three core product-innovation disciplines CIE was created in 2013 with the support business, and then select key electives that mentors, a network of resources, and seed is an innovation in itself, emerging from the of a $7 million “Big Ideas” grant from the money. Oakland is Pennsylvania’s third

78 79 INNOVATION U 2.0: New University Roles in a Knowledge Economy Carnegie Mellon University

largest economic center behind center-city alumni mentors, and a network of economic program. The most impressive testament to the in applying social innovations to some of the Philadelphia and downtown Pittsburgh. development partners. Out of the 121 PROBE Center’s success, however, is the growing list of world’s biggest problems relating to basic Oakland is an easy walk west of the CMU projects since Project Olympus started in successful start-up ventures it has spawned. For human needs. Sponsored by the Idea Foundry campus; it’s a trendy, urban neighborhood, 2007, more than 70 turned into startups, example, CMU’s professors and student body incubator and organized by CMU’s Institute home to the University of Pittsburgh and drawing in over $60 million of funding. together produce 10 to 20 new companies each for Social Innovation and Project Olympus, its medical center (UPMC), the Carnegie year, a number that has risen consistently over the competition features teams of students Museums and a cultural complex offering • The Donald H. Jones Center for Entrepreneurship the last decade. Of the 300 companies spun from across the University competing for cash theaters, festivals and arts activities. It is also (DJCE). This center is a program of the out of CMU over the past 15 years, 10 have prizes. The 2011 competition attracted 8 teams home for the huge amount of innovation Tepper School of Business at CMU that been acquired by companies, including Cisco, of Master’s and PhD students from across coming out of the neighborhood’s universities was endowed by Mr. Jones, a successful local Google, IBM, LinkedIn and Boeing, and CMU campus. The teams were organized by geography (including the University of Pittsburgh) and entrepreneur. It brings entrepreneurship startups have attracted over $500 million in (Africa, India, Latin America, US inner city, students together with faculty and practitioners other institutions, such as the Revv Oakland funding over the past decade, according to the and China) and pitched ideas for new products doing groundbreaking research, and offers and Idea Foundry incubators that support winter 2013 issue of the DJCE E-Newsletter. that addressed basic human needs such as food, Pittsburgh’s entrepreneur community. graduate, undergraduate, and continuing education, healthcare, water, and shelter. education programs in entrepreneurship. The The DJCE also hosts seasonal Show & Tell • Project Olympus. This program was created Center also conducts research on entrepreneur- events in which students and faculty present • McGinnis Venture Competition. Organized by the School of Computer Science in 2007 ship. The Center’s interdisciplinary academic their ideas directly to regional investment by the School of Computer Science, this to augment and accelerate the process of approach, coupled with experiential learning, and business leaders. Other student events competition has been an annual program moving basic research into development and is geared towards students leading innovation, include combined activities with the University since 2004. It involves a three-round, business stages. The core of the program is a change, and growth in start-ups, emerging of Pittsburgh’s Institute for Entrepreneurial five-month long format focused exclusive- “proof-of-concept” Innovation Lab where the companies, and mature organizations. Students Excellence, Pittsburgh Startup Weekend, ly on CMU students. The program includes commercial potential of university innovations graduate equipped with the tools necessary and Pittsburgh Web Design Day. an entrepreneurial boot camp and targeted are explored by students, graduates, faculty to start a business and the ability to become workshops that connect students with top • members, board members, and a network leaders and innovators in whatever field they Business Plan Competitions—The Tepper Venture entrepreneurs, venture capitalists, business CMU’s largest business plan of off-campus partners. Olympus provides choose. The DJCE was led in the 1990s by John Challenge (TVC). leaders, and university experts to explore idea competition brings together students from start-up advice, micro “Spark” grants, incubator Thorne, a pioneer professor of entrepreneur- generation, opportunity identification, venture all fields to pitch their best ideas to a panel of space, and connections for faculty and ship at CMU. At the time the Tepper School pitching, strategy, and team formation. In judges for cash prizes and an opportunity to student entrepreneurs with alumni and local, was one of the first business colleges to 2013 nine teams were selected from 30 entries attend larger business plan competitions. These national, and global business communities. offer formal entrepreneurship education. to compete for $60,000 in cash prizes. undergraduate competitors range from freshmen The most important way that Project Olympus Perhaps the one thing that sets DJCE apart to fifth-year seniors, in majors ranging from • The Undergraduate Entrepreneurship goes about accomplishing this goal is by from other entrepreneurial programs is the business to computer science, political science, Association. UEA is a student run organization teaming up faculty and students together amount of entrepreneurial experience possessed mechanical engineering, and English. The TVC dedicated to fostering the entrepreneurial into PROBEs (Problem-Oriented Business by its faculty. Virtually all of its associated is also open to those who attend other Pittsburgh spirit at Carnegie Mellon University through Explorations) that assess the commercial faculty are founders, co-founders, CEOs, universities such as the University of Pittsburgh, competitions, business development, and viability of their inventions. Faculty and presidents, and/or board chairs of a long list Duquesne University, and Carlow University. networking opportunities. The UEA hosts student PROBE teams from across campus of successful high-technology start-up firms. the annual Tepper Venture Challenge (TVC), • explore the commercial potential of their DJCE courses have a significant experiential The Social Innovation Solutions Challenge. CMU’s largest business plan competition, This is a competition for graduate students at research and ideas under the guidance component to complement the in-class part, as well as an elevator pitch competition, a Carnegie Mellon University who are interested of in-house Entrepreneurs-in-Residence, including the Project Olympus accelerator lecture series, a book club, and movie night.

80 81 INNOVATION U 2.0: New University Roles in a Knowledge Economy Carnegie Mellon University

• Enactus. Entrepreneurs in Action for the mechanics, and many others. The deliverables for purposes of this case, that network is a • Innovation Works (IW). This is a seed-stage Greater Good (Us) is CMU’s local Students of these relationships include modes of inquiry, significant asset for early-stage companies investment fund and assistance provider that is In Free Enterprise (SIFE) chapter. The evidence gathering, and communication. These emerging from CMU. Western Pennsylvania part of the Ben Franklin Technology Partners national organization focuses on empowering may be embodied into computerized tools activities include a venture fair, networking in Pennsylvania, a program largely funded by local and international communities through that can be used in a community. For example, events, a membership directory, and award the Pennsylvania Department of Community applied business strategies and enterprise the Message from Me sends a five-year old’s ceremonies for successful entrepreneurs. and Economic Development. Funding is also creation. Each year at CMU Enactus initiates voice home to her parents daily, enhancing her received from regional non-profit foundations. outreach projects around the world, and ability to engage her parents about the school • Open Field Entrepreneurs Fund. The Open Field AlphaLab is also part of Innovation Works and also participates in regional and national day. The CREATE Lab is both a technology Entrepreneurs Fund (OFEF) is part of CMU’s provides business assistance, advisors, space, and competitions for recognition and prize developer and a community partner. Greenlighting Startups initiative, and was a supportive community to increase the chances money. Carnegie Mellon’s team recently endowed by CMU alumni entrepreneurs who that the IW investments will take hold. IW placed within the top 15 nationally. Extracurricular Programs hope it will make CMU a destination of choice has been in operation for over 13 years and has for young entrepreneurs. The fund provides CMU has been organizationally engaged invested over $52 million in 168 companies. • Idea Lab. This program is located in the H. early-stage business financing to alumni who have with the greater Pittsburgh region for many John Heinz III College, but serves students graduated from CMU within the past five years, Boundary Spanning: years. Partnerships run the gamut from campus-wide in a semester-long structured through a new early-stage business financing University, Industry and Community program. Its mission is to create a cluster of industrial-sponsored research relationships model. The OFEF provides $50,000 in matching social entrepreneurs at CMU by providing to classroom guest speakers from Pittsburgh funds, and recipients also gain access to other University outreach at CMU goes well a forum for graduate students to bring their companies. Many organizations that are not funding sources, receive personalized mentoring, beyond MBA courses involving a consulting concept-level ideas for a social venture to formally part of CMU are nonetheless engaged and attend an annual OFEF business workshop. arrangement with local entrepreneurial the next level. Idea Lab student-facilitators in the general area of entrepreneurship and CMU provides legal and accounting support for companies, and faculty involvement in local guide entrepreneurs through the business complement the University’s initiatives. OFEF recipients. Since June, 2012, the program and community service. Innovation outreach development pipeline with practical tools has awarded $500,000 in support to 21 startup also involves university technology-transfer • Idea Foundry. This is a not-for-profit 501(c)(3) activities, industrial research partnerships, and and exercises to help them conduct market funded by the Pittsburgh Urban Redevelopment companies from across the country and in a formal economic-development partnerships research, develop business models and plans, Authority, the University of Pittsburgh, and variety of industries. While awardee locations with state and local government partners. and build their entrepreneurial networks. various foundations. It provides infrastructure range from New York to Silicon Valley, seven are from Pittsburgh. The startups represent a support, mentoring and modest financial support A number of factors appear to have contributed • The CREATE Lab. Officially known as diverse range of industries, including medical, for early stage companies. It also operates to CMU’s strong performance in industrial research. the Community Robotics, Education and technology, consumer, and educational fields. Technology Empowerment Lab (thus CREATE several accelerators focused on Life Science, First, CMU has historically emphasized programs Entertainment and Ed Tech, and Intelligent Lab), this program of the CMU Robotics • Enterprise Forum Pittsburgh. This is the that appeal to industry. It has maintained that Institute has forged long-term working Systems respectively. It has invested in more local manifestation of the MIT Enterprise focus to the present with its three largest colleges relationships with communities in the Pittsburgh than 85 companies since its founding in 2002. Forum that has in effect been franchised to a (engineering, computer science, and business) all area. The model is to work with residents in number of metropolitan areas across the US having direct relevance to industry. In addition, the • Pittsburgh Venture Capital Association (PVCA). quality of CMU’s engineering, science, and business the design and implementation of various data The PVCA has been active in the metro area since and around the world. Forum events typically curricular programs serves as a magnet for industrial gathering tools around issues of concern in their the early 1980s, with a mission to energize and involve a panel presentation, give-and-take involvement, sponsorship and hiring of CMU community. Members of the CREATE team enable VC investing and entrepreneurship. discussion, networking, and often food and graduates. A long list of programs in engineering, encompass many disciplines and fields. External Its membership consists of regional and other refreshment. In Pittsburgh regional science, computer science, and business are ranked partners include school districts, teachers, national venture-investment firms and, entrepreneurs often present their strategies communities, early childhood care facilities, local to a live audience of peers and experts. among the best in the nation. One of the reasons

82 83 INNOVATION U 2.0: New University Roles in a Knowledge Economy Carnegie Mellon University behind the high ranking of CMU degree programs and NSF. The Robotics Institute is the only Coordination Center documents thousands nearly twenty research units. Each of these is the fact that there is a major emphasis on students’ entity in the US that awards the PhD in of software vulnerabilities, many of which centers or labs is typically led and staffed by acquiring breadth across substantive disciplines. Robotics. The National Robotics Engineering are a function of poor software engineering faculty members from across the campus. Center (NREC) is a technology-transfer practice. SEI has over 500 employees, the Research support has come from a number of This multidisciplinary/interdisciplinary tradition organization that develops and tests robotic majority at CMU. It received a five-year Federal (NIST, DARPA, NSF, Office of Naval is also a major strength of CMU research. There systems for a wide range of users. To date, contract extension of $584 million in 2010. Research) and state government agencies, as are now approximately 120 research centers and the Robotics Institute has been involved in well as via many industry affiliate companies. institutes at CMU. Their attractiveness to industry creating more than 30 startup companies in • Institute for Complex Engineered Systems and community stakeholders lies in the fact that robotics-related fields, employing over 1000 (ICES). The Institute is organizational- • Quality of Life Technology Center (QoLT). This the center/institute model enables researchers people. The operations structure is complex. ly a department in the Carnegie Institute of is a National Science Foundation Engineering and graduate students from various fields to Thus, within the Institute there are currently Technology (the engineering college at CMU) Research Center (ERC) founded in 2008. bundle theory, concepts and research methods in eight centers ranging, for example, from the but has 100 affiliated faculty members from It aspires to transform lives in a large and ways that permit tackling bigger problems. Big Field Robotics Center to the Medical Robotics several departments and all seven colleges. The growing segment of the population (people problems, whether they are the theory-driven “grand Technology Center. Each center conducts Institute occupies 12,074 sq. ft. of contiguous with reduced functional capabilities due to challenges” of various fields of scientific inquiry or a number of projects; for example, the Field space. The origins of ICES date to 1974 when aging or disability) through the development the major industrial problems of a more practical Robotics Center (FRC) lists over 30 projects, an informal group of faculty members launched of assistive technologies that draw expertise nature, are more likely to yield to interdisciplinary ranging from Assistive Educational Technology the Design Research Center (DRC), with the from across the University. It focuses on and multidisciplinary approaches. It is also often to Lunar Regolith Excavation and Transport. goal of exploring cross-disciplinary design a range of human functionalities (vision, more challenging and interesting for the faculty And each project has a number of clients, research using computational techniques. The mobility, dexterity, memory) and multidisci- members and graduate students involved. partners, participants, and diverse outcomes. DRC evolved into a successful NSF Engineering plinary inputs including engineering, design, Research Center (ERC) proposal which was marketing, and service delivery. It involves social Centers and Institutes. In this section we will • The Software Engineering Institute (SEI). funded in 1986 as the Engineering Design and clinical professionals from a number of describe a small number of centers and institutes to The Institute was established in 1984 as a Research Center (EDRC). Accomplishments member companies and non-profit organizations illustrate how this works at CMU, particularly in federally-funded research and development of the Center were significant and exciting, in terms of agenda-setting, feedback, and terms of enabling interdisciplinary and multidisci- center (FFRDC) sponsored by the U.S. leading to “ubiquitous networking” of design, field-testing. Membership enables participation plinary involvement, engaging business and industry Department of Defense and operated by prototyping, and manufacturing functions on several levels, with a wide range of fees for stakeholders, addressing big needs and problems, Carnegie Mellon University, with offices in via information technology. After 11 years of participant organizations. Commercialization and producing graduates who will make bigger and Pittsburgh, Arlington, VA, and Frankfurt, NSF support, the EDRC was “graduated,” and of research results has been an important goal sooner contributions after they leave. These are Germany. The mission of SEI is “to improve the then was transformed into and renamed the for QoLT, and one that has been realized. There some of the activities that Carnegie Mellon believes state of the practice of software engineering.” ICES. In 1999-2000 the research structure are currently nine spin-off companies in the are “Inspiring innovations that change the world.”3 The DOD’s primary interest is in enhancing was also reorganized into several focus market with a range of products and services. software engineering within the DOD supplier laboratories or centers, an approach that has • The Robotics Institute. Perhaps the crown jewel continued. The Institute’s vision is “an academic • CyLab. This center was founded in 2003 and among CMU centers is the Robotics Institute chain. This yields two foci: improvement of organization which effectively stimulates and it has been a leader in cybersecurity R&D ever (RI). Started in 1979, RI is among the world’s software engineeringmanagement practices; fosters multidisciplinary engineering research since. CyLab is a National Science Foundation largest and most productive robotics research and improvement of software engineering and collaboration between students, faculty, Cyber Trust Center, a National Security Agency labs. It encompasses 187,000 square feet of technical practices. Shortcomings in staff, industry and government agencies.”3 (NSA) Center of Excellence, and an affiliate space at three sites. Its current annual budget software engineering manifest themselves The mix of constituent centers and clusters of the Software Engineering Institute (above). is over $65 million, with research support in functional defects (“bugs”) and needs for changes periodically, but currently includes Advances in computer technology unfortunately coming from DOD, DARPA, NASA, NIH rework (60-80% of development costs). SEI’s come along with security vulnerabilities that 84 85 INNOVATION U 2.0: New University Roles in a Knowledge Economy Carnegie Mellon University

can harm everyone from the home computer boundaries of its departments and schools involved in the CNBC research program. driven regional economic growth;” (2) “continue user to small businesses, large corporations, to form cohesive teams toward a common to support improvement of K-12 education in • Wilton E. Scott Institute for Energy Innovation. federal agencies, and anyone dependent on goal. For this reason the Cosmology Center the region through both research and community The Wilton E. Scott Institute for Energy the cyber infrastructure. The CyLab research will thrive at Carnegie Mellon because like service;” (3) “enhance the region’s quality of life, by Innovation is a university-wide research initiative program is organized around seven Research few universities research that will be needed working in our areas of strength, such as visual and at CMU that was established in 2012 and is Areas and leverages CMU multidisciplinary to understand the Cosmos can work better performing arts, environmental issues, and public focused on improving energy efficiency and expertise in several cross-cutting thrusts. CyLab here than at any other institution I know of. policy initiatives;” and (4) “pursue those activities developing new, clean, affordable and sustainable involves more than 50 faculty members and 100 in which the region becomes both a laboratory for energy sources. Its initial Co-Directors are two graduate students from across the University. And that is pretty much what has happened research and a site for collaborative inquiry and engineering department heads, from Chemical Carnegie Mellon’s College of Engineering, over the last 5 years. The Center research education innovation.” Many CMU officials focus Engineering, and Engineering and Public Policy, School of Computer Science, H. John Heinz program is a mixture of particle physics, on engagement as an integral part of CMU’s culture. respectively. The initial founding endowment III College, and the CERT Coordination astrophysics, computer science, and statistics. from Sherman Scott and Joyce Bowie Scott was The H. John Heinz III School of Public Policy Center are participants. The research agenda is It draws faculty and graduate students from all established in 2013 and supplemented with a and Management serves as a critical resource organized into the five Centers and Programs. those areas. Local partners at the University $30 million gift from the Richard King Mellon and linking mechanism for regional economic- Corporate and public-sector stakeholders of Pittsburgh include the Department Foundation. Building on Carnegie Mellon’s development activity. This school and its faculty can more fully access the work of CyLab via of Physics and Astronomy as well as the expertise in integrated systems, problem-solving have a great deal of expertise in technology- 3-year Memberships (with fees ranging from Pittsburgh Supercomputing Center. rigor, and an understanding of the intersection based economic development. For instance, $35,000 to $350,000 per year). Membership • Center for the Neural Basis of Cognition (CNBC). of energy and public policy, the work of the one of CMU’s two Sloan industry centers, the includes various combinations of the following: The Center is a joint initiative of CMU and Institute will concentrate on four problem Software Industry Center, is actually housed in the access to seminars, reports/tools, meeting the University of Pittsburgh. Departments domains: efficient use of energy; sources of Heinz School. More importantly, the Regional participation, access to restricted portions involved at CMU include: Biomedical energy; delivering energy; and innovation for Technology Policy Group within the Heinz of the CyLab website, internal-use license of Engineering; Biological Sciences; Computer energy. The new Institute will capitalize on School’s Center for Economic Development is project results, executive education participa- Science; Electrical Engineering and Computer the more than 100 faculty members in the 34 also heavily involved in the study, development, tion, sponsorship of PhD students, input to Engineering; Machine Learning; Psychology; energy-related research centers that span the and dissemination of policies and practices that Master’s or doctoral level project topics, and Robotics; and Statistics. Departments campus. This is a great example of how CMU promote technology-based economic development. reduced tuition for member-company employees from the University of Pittsburgh include: organizes around a big problem, in a collabora- enrolled in graduate study at Carnegie Mellon. Bioengineering; the Center for Neuroscience; tive multidisciplinary manner, and with an The technology-based state and local economic- development agencies that have linkages with • Mathematics and Psychology. The CNBC eye to moving solutions out to the world. The Bruce and Astrid McWilliams Center for Carnegie Mellon are many. In addition to The McWilliams Center was is also programmatically linked to twelve Cosmology. Community Partnerships. Regional impact some of the organizations described in the founded in 2008 via a major gift from Mr. and research centers, institutes or lab facilities at is one of the areas highlighted by the University’s Extracurricular Programs in Entrepreneurship Mrs. McWilliams. Bruce Williams, a CMU either Carnegie Mellon or the University of latest strategic plan. The plan acknowledges the section above, here are a few other illustrations: alum, member of the CMU Board of Trustees, Pittsburgh. Allied with CNBC activities, symbiotic relationship that exists between CMU and a very successful Silicon Valley entrepreneur a PhD program in Neural Computation is and the region and asserts the University’s intention • Pittsburgh Technology Council. This is a regional opined the following at the founding, which offered jointly by the two schools, and targets to address local and regional issues, particularly trade association that focuses primarily on says much about the purpose of this case entry: students with strong quantitative backgrounds economic growth, and improved quality of life. technology-based member companies located pursuing a career in experimental neuroscience. in the contiguous 14-county region. It has Ingrained into the basic DNA of Carnegie Over 200 faculty members and trainees at Strategies proposed to address these goals been in existence for 29 years and has 1400 Mellon is its ability to work across the CMU and the University of Pittsburgh are include: (1) “continue to encourage technology member companies.

86 87 INNOVATION U 2.0: New University Roles in a Knowledge Economy Carnegie Mellon University

• TiE-Pittsburgh. This is a relatively new NASA Ames Research Center has led to in new companies plus, in some cases, a board seat. However, that is really the purpose of this book. (founded in 2000) not-for-profit network significant collaboration in developing projects. But in order to cut red tape and ease relations with If more universities adopted the policies, practices of entrepreneurs, corporate executives, faculty members who wanted to start companies, and culture of the institutions described in this investors and senior professionals who are Boundary Spanning: the university decided to create a policy where there volume, we might be closer to a more robust involved in fostering the tech-based startup Technology Transfer was no negotiation. The new policy calls for a flat and innovative economy. As the founder of community in the Pittsburgh area. five-percent equity participation (“Five Percent, Go Carnegie Mellon’s Center for Technology Transfer The Center for Technology Transfer and in Peace”) capped at a $2 million dilution event for and Enterprise Creation opined in 1993: • Keystone Innovation Zones. Pittsburgh’s Enterprise Creation (CTTEC) facilitates the the University along with no company interference.3 Urban Innovation 21 links innovation licensing of CMU intellectual property. To help In the end, the inventor is still economy clusters with the needs and assets ensure that CMU inventions will have the greatest While most university TTOs focus on licensing the hero and always will be. of underserved communities, by designing chance of commercial success, the Center provides a deals with established companies, CMU’s relatively programs, building strategic bridges, and set of guidelines in five steps: Disclosure, Evaluation, recent policy promoting commercialization via Distinctions between “faculty” entrepreneur- teaming up with existing organizations. Marketing Strategy, License Negotiation, and startups has caused the rate of spinoffs to soar since ship and “student” entrepreneurship, created Enterprise creation. It has also decided to focus the University revamped its licensing policy in when technology-transfer offices serve primarily • The Allegheny Conference on Community on technologies in five broad strategic research 2004. Start-ups emerging from university research faculty inventors, don’t seem to exist at CMU. For Development. The Conference’s affiliates include areas, which reflect CMU’s areas of expertise as have jumped from one in 1995 to approximately faculty members and students alike, the CTTEC the Greater Pittsburgh Chamber of Commerce, well as expanding opportunities for commercial- 10 annually from FY2006 onward, according to gets out of the way when it comes to intellectual the Pennsylvania Economy League of Greater ization: (1) computation; (2) sustainability; (3) historical Association of University Technology property, thus allowing it to concentrate its Pittsburgh, and the Pittsburgh Regional health and quality of life; (4) social and behavioral Managers (AUTM) data. The “Five Percent, Go resources on supporting university startups and Alliance. All these organizations work together sciences; and (5) global and cultural issues. in Peace” model not only attracts top inventor spinouts. Using a standard (or “express”) deal to stimulate economic growth and improve the talent, but also helps solidify CMU’s position as approach to spin-off licensing, CTTEC offers quality of life in southwestern Pennsylvania. Carnegie Mellon’s technology transfer a US leader in turning federal and state funding a fair deal, a transparent process, and years of program started in 1992, with a focus on licensing into sustainable economic growth. Per FY20124 data and experience through multiple rounds of • Carnegie Mellon Silicon Valley. While not technology to existing companies and forging follow-on funding and company acquisitions. located in greater Pittsburgh, CMU’s Silicon AUTM statistics this policy, as well as the culture partnerships with corporations. Since then, the of the CTTEC office, continues to buttress CMU’s Valley campus enrolled 133 students in 2013 concept of commercialization in technology transfer Summary and Parting Comments and offered degree programs in software technology-transfer performance. For example, has shifted to include a much greater emphasis during that fiscal year CMU realized 172 invention engineering, software management, information Carnegie Mellon University, a relatively on learning how to launch new companies to disclosures, which in terms of “batting average” technology, and electrical and computer young institution for a university located in the transfer university research into the marketplace. means one disclosure for every $1.6 million of engineering. Both part-time and full-time eastern part of the US, has gone through many This is consistent with the entrepreneurial research expenditures. With 10 startups its ratio of programs reflect the University’s ongoing abrupt changes in mission course and program culture and scope of entrepreneurial curricular startups to invention disclosures was one for every focus on creating and implementing solutions development. It was nearly 10 years into its and co-curricular activities described above. 17 disclosures, and one startup for every $27 million for real problems. CMU SV research centers existence before it evolved from being mostly a trade of research. CTTEC also executed 37 licenses include the Cylab Mobility Research Center This is especially true at CMU where the school, and well into the 1970s before it began to hit and options, and 99 new patent applications. and the Disaster Management Initiative, traditional approach to tech transfer, which its stride as a research university on the move. There as well as work on context-aware mobile emphasized licensing to existing companies, was These are all very good numbers. It is tempting are many parts of the CMU story that are attractive systems, statistical methods, natural-language literally ‘junked’ in favor of an approach that was to speculate on what the national harvest of and worthy of emulation. One is the strong translation, mobile health, security, hardware- more attuned to enabling startup companies and disclosures and startups would be if all of the top commitment to a multidisciplinary and interdisci- optimization, and open-source software thereby contributing to the regional economy. 100 universities had AUTM “batting average” plinary perspective that characterizes its approach environments. The campus’ location at the CMU used to take as much as a 20 percent stake statistics that approximated those of CMU. to both undergraduate and graduate education.

88 89 INNOVATION U 2.0: New University Roles in a Knowledge Economy

Students and faculty have easy access to all things education R&D expenditures, ranked by all entrepreneurial on campus. Undergraduates have R&D expenditures, by R&D field: FY2011. few barriers to adding entrepreneurship to their 3 course programs. Of the nine interdisciplinary Mark Kamlet, Provost and Executive Vice majors offered to undergraduates, all are conducive President, Carnegie Mellon University. Supporting to boundary-spanning entrepreneurial creation. Innovation in the 21st Century Economy: Perspectives Clemson University* on the Carnegie Mellon Experience. Testimony to Boundary spanning has served to strengthen the Subcommittee on Technology and Innovation, this research-intensive university. Carnegie Mellon Committee on Science and Technology, U.S. knows how to do this very well, particularly with House of Representatives, March 24, 2010. Clemson was established via a grant after the Civil both the institution’s military tradition and high its connections to where it lives. Andrew Carnegie 4 War from Thomas Green Clemson, a wealthy patriotism, in 1917 the entire graduating class was very much involved in creating the industrial Association of University Technology planter in the “up country” region of western South enlisted for the World War. Similarly over 6000 and technological strengths of greater Pittsburgh, Managers. (2013). AUTM U.S. Licensing Activity Carolina. Mr. Clemson wanted to both foster students and alumni served in World War II. and CMU has likewise maintained, improved, Survey: FY2012. Deerfield, IL: Association higher education in the state and have an impact In 1955 the military tradition and the cadet corps and built on that heritage. Carnegie Mellon is of University Technology Managers. on the economic prospects for its citizens. In his were dropped and shortly thereafter Clemson especially strong in fostering entrepreneurship, will, Clemson set aside monetary assets, as well became a co-educational institution. In 1964 it in both curricular innovation and related as the land encompassing his plantation, for the was renamed Clemson University and henceforth approaches. Among those are its ongoing purposes of teaching “scientific agriculture and the has built a growing reputation as an academic center successes in building the entrepreneurial mechanical arts” to South Carolina’s young people. of research and service to the state and region. and tech-based economy of the region. Upon his death in 1888 the South Carolina Clemson has achieved a growing number of Because of the limitations of time, resources legislature and the governor took up the matter, positive national ratings regarding its academic and necessary restraint, this chapter could and in 1889 a bill was passed and signed accepting programs, its research competencies, and not describe all the success stories of how the gift, which established what came to be known particularly relevant for this book, its engagement Carnegie Mellon University does what it as Clemson Agricultural College. The current with the local community and regional economy. does. We urge the reader to pick up some of designation as Clemson University did not come For example, there are several plaudits from the threads of this narrative and discover more to pass until well into the 20th century. e , such as a 4th place of the “inspiring innovations” of CMU. U.S. News & World R port ranking in U.S. News & World Report’s 2012 “up The new college started business in 1893 with an and comers” category for institutions that made initial enrollment of 493 students. The student body the most promising and innovative changes in Endnotes was composed entirely of males, and the college was areas such as academics, faculty, student life, and launched as a military school with a corps of cadets. campus facilities. Clemson was ranked 4th by 1 Nasaw, D. (2006). Andrew Carnegie (p. 600). In the late 19th century, Clemson also became a the Huffington Post for students’ “approachable, New York: The Penguin Press. Land Grant institution encompassing an experimen- supportive, and charitable nature along with their tal farm and the typical extension activities that 2 National Science Foundation, National deep love for other students.” Similarly, the school go along with this type of institution elsewhere. Center for Science and Engineering Statistics, received a fourth-place rating of “happiest students” FY2011. Table 14. Higher education R&D Clemson students’ connection to the University from the 2013 Princeton Review. In another expenditures, ranked by all R&D expenditures, has always been fervent. For example, reflecting ranking by the 2013 Princeton Review, Clemson by source of funds: FY2011. Table 15. Higher

90 * This case was written by Louis Tornatzky and Elaine Rideout. INNOVATION U 2.0: New University Roles in a Knowledge Economy Clemson University was described as a school that “runs like butter,” Two other R&D data points are worth noting • What are the enabling structures, The subsidiary goals in the Roadmap that will presumably administratively. Clemson’s recent as they pertain to the growing role that Clemson systems and processes? need to be realized in order to achieve that top 20 ranking are noteworthy. Clemson’s goals are aspiration to be a “top 20” institution underlies is playing in technological innovation, regional • What are the shared language and concepts? many of the changes described in this chapter. economic development, and entrepreneurship. One much more oriented towards making a difference is the extent to which R&D expenditures come from • What are the processes and procedures in the world, via technological innovation and Clemson enrolled 19,914 students in 2011, different categories of funding sources. Clemson by which groups engage? economic growth, to create a better place to live an increase from 17,101 in 2001. Three colleges in many ways differs from its peers. For example for the citizens of South Carolina. The 2020 In contrast to many universities, Clemson dominate student enrollment. The College as per FY2011 NSF data, across all institutions Roadmap goals also champion addressing the has been very deliberate and organized about of Engineering and Science enrolled 30.5% 4.8% of research expenditures came from business “great challenges” of science and research. terms and understandings such as these. It is of all students in 2011, up slightly from 2001 and industry. These national figures of funding now in its second decade of a very significant So the goals are as follows, with emphases when it enrolled 27.1%. Second in size is the sources have hovered around that level for several change process during which the university added by the authors of this chapter: College of Business and Behavioral Science years, although the longitudinal trend has been a experienced massive core funding disruptions which enrolled 23.8% of students in 2011 slight decline. Looking at the same FY2011 NSF and at the same time was trying in many ways to Fulfill Clemson’s responsibility to students versus 26.7% in 2001. The third-largest college data, 6.8% of Clemson’s research expenditures came transform itself from a good university to a great and the state of South Carolina; is the College of Agriculture, Forestry and Life from industry, which is above the national average. one, as well as becoming an institution focused Sciences, which in 2011 enrolled 18.1% of Clemson, and other universities in this volume, have on innovation and economic development. To provide talent for the new economy students up from 13.7 % of students in 2001. also argued that some corporate research funds are Two other colleges enroll somewhat smaller by recruiting and retaining outstanding coming from private industry foundations, which Most importantly, Clemson has utilized a fractions of students—the College of Health students and faculty and providing then gets tallied in the non-profit total. In any “roadmap” approach to articulating and engaging Education and Human Development, and the an exceptional educational experience case, Clemson is above the national average in institutional goals, and these are replete with words, College of Architecture Arts and Humanities. grounded in engagement; terms of research partnering with business and has phrases and concepts that are quite instructive for Somewhat more germane for our purpose processes in place to attract more corporate funding. understanding the culture of change that has To drive innovation, through research of understanding technological innovation at unfolded. For example, the Clemson 2020 and service, that stimulates economic University Culture: Clemson is the distribution and growth of research Roadmap was approved on April 15, 2011 and growth, creates jobs and solves problems; and development over the recent history of the Goals and Aspirations will be cited herein extensively. It should also be University. Per National Science Foundation As discussed in the introductory chapter, noted that the 2020 Roadmap was preceded by a To serve the public good by focusing on 1 statistics for FY2011 Clemson reported $166.3 the development of a university into something 2010 Roadmap with similar language and impact, emphasis areas that address some of the great million in total R&D expenditures with 36.8% that we have labeled an Innovation U, requires which was rolled out in 2001. At that point challenges of the 21st century–national Clemson announced its aspirations to become priorities such as health, energy, transporta- of that in engineering and 28.9% of it in the an organizational culture that energizes its life sciences. This was close to a doubling from aspirations and behaviors. In other words, it “one of America’s top public universities” and tion and sustainable environment. FY1999 when Clemson reported $99.3 million should be very clear when the University talks and also its goal to be involved in “research-driven The reader will note that the economy and in total research expenditures. During that era thinks about itself that it articulates certain key economic development.” 54.3% of total research expenditures were in the economic growth are mentioned twice, innovation mutual understandings, such as the following: In the 2020 Road Map Clemson is very life sciences compared to 30.7% in engineering. is mentioned, and terms such as public good and straightforward in its vision about what it Clemson does not have a medical school and • What is its mission? national priorities suggest that this future vision aspires to be: is more oriented to the world beyond the walls thus the life science totals primarily reflect its • What are the goals it aspires to? of the university than the more typical university strengths in agriculture and related biological Clemson will be one of the nation’s • What are the short and long term strategic planning document. The document goes sciences, and not necessarily research that is top 20 public universities. more closely aligned with clinical medicine. strategies for getting there? on to identify substantive specifics, as follows: 92 93 INNOVATION U 2.0: New University Roles in a Knowledge Economy Clemson University

Objectives Connecting intellectual and economic have implications for other goals and investments. and enhance the financial situation of the university, development through innovative research The general financial downturn in the 2007-2008 and enable the institution to better accomplish Invest in four strategic priorities: and education.” [Emphasis added] period hit South Carolina particularly hard, its goals for quality education, innovation, and which in turn yielded a precipitous decline in economic impact. For example, a fully endowed ▶▶ Enhance student quality and performance; So too, in an R&D-intensive and graduate state appropriations, which adjusted for inflation professorship removes much of that budget line out ▶▶ Provide engagement and leadership education-oriented institution such as Clemson, were much less than what they were a few decades of the state-funded side of the ledger. Moreover, if opportunities for all students; there are even more explicit expressions of prior. This funding environment demanded a new wise choices are made in recruitment, a nationally innovation aspirations in the R&D Centers and and more aggressive approach to fundraising and prominent professor in certain fields can bring in ▶▶ Attract and retain and reward top people; Institutes where external partners in business and the launch of The Will to Lead – A Campaign for annually significant grant or contract revenues, ▶▶ Build to compete–facilities, industry are engaged on a routine basis. Clemson. Accomplishing the fundraising goal which can support graduate students, equipment, infrastructure and technology. For example: of $600 million to be realized by 2012 was not and defray costs of research administration. In a cover letter for the Clemson 2020 Road only highly desirable but essential for realizing • At its launch the Advanced Fiber-based Moreover, if campaign funds result in Map, President James F. Barker reviewed the the goals embedded in the Clemson 2020 Road Materials Center of Excellence staked out its securing talented people in mission-focused hardships that accompanied major state budget Map. Assuming that the goals of impacting its vision and goals: “The center will be a focal point R&D, then the other goals of the university cuts necessitated by the national recession, environment by research and innovation still for existing and emerging research activities will be realized, such as to “address some of but in closing reiterated goals and tactics to held, Clemson required new investments in examining new fibrous materials systems the great challenges of the 21st century.” implement the 2020 Roadmap, as follows: faculty and facilities, supported by new financial and manufacturing technologies, including vehicles such as endowed chairs, increased Leadership We will make investments to: discovery and initial commercialization of federal and private research funding, enhanced technical innovative materials and processes… revenue from summer and online courses, and The president of Clemson is into his second creating superior industries that will support Provide talent for the new economy; creative partnerships with industry. Nonetheless, decade of leadership, having assumed the the retooling and retraining of skilled workers, during the dark days of 2007-2008, positions position in 1999. However, James F. Barker is leading to business growth, job retention and Drive innovation that stimulates were eliminated, functions were outsourced, not new to campus. He received a Bachelors further job creation.” [Emphasis added.] economic growth; construction projects were put on hold, and degree in Architecture in 1970 from Clemson • The more mature CU-ICAR captures itself restrictions on travel and hiring were imposed. and then a Master of Architecture and Urban Serve the public good by addressing some Design from Washington University, St. Louis as follows: “CU-ICAR is as much an idea as The good news is that the initial fundraising of the great challenges of our time. in 1973. From 1973-1974 he was an Assistant it is a place. It is a unique blend of four things: goal for The Will to Lead: A Campaign for Clemson Professor at the University of Tennessee; then education, research, economic development of $600 million was reached and exceeded by $9 And: from 1974 through 1986 he moved through and a magnet venue for the automotive million by spring 2012. Moreover, the fundraising the professorial ranks and became Dean of the We will make divestments and generate industry. Each of these elements interacts in goal was raised to $1 billion. Funds from the School of Architecture at Mississippi State new revenue to pay for those investments. such a way that the whole is much greater than campaign are already being used to permanently University. In 1986 he became Dean of the the sum of the parts.” [Emphasis added.] change the fiscal situation and associated goal In parallel with the goals and aspirations College of Architecture at Clemson, and then of Virtually every one of the industry-oriented accomplishment in several areas. Thus 357 new expressed at an institutional level, such as in the the consolidated College of Architecture, Arts, centers and institutes at Clemson has comparable scholarships and fellowships were created, 95 2020 Road Map, there are comparable statements and Humanities. He still teaches in the College. vision, mission or goal statements. faculty positions (endowed chairs and professor- at other levels. For example, the College of ships) were funded, and several capital projects were It would be fair to conclude that without Engineering and Science, with the largest student As these meta-goals of the university are phrased launched or are in planning. The point of this is the vision, leadership, and agenda-setting that head count and the largest fraction of sponsored in terms of innovation and economic impact, they that many of these investments permanently relieve President Barker has articulated during his tenure, research expenditures, had the following Vision: 94 95 INNOVATION U 2.0: New University Roles in a Knowledge Economy Clemson University things would be different. However, this has and innovation including the Governors Science a more typical position description. Creating Curricular Programs not been a one-person show. Clemson seems and Technology Advisory Council. His recent a Vice President for Economic Development to have enjoyed an effective and talented senior successor has over a decade of experience at the perhaps sends a different message than a vice The Spiro Institute also seems to be the entity leadership cohort. There are four areas in which the chief research officer level, and the two patents president for community partners. Creating whose “brand” is on the different course packages that are offered through the College of Business leadership cadre of Clemson—president and key he holds demonstrate his innovation orientation. a Watt Family Innovation Center for Academic and Behavioral Science. Particularly notable is appointed administrators—has moved an agenda. The Provost is ten years in her current position, Collaboration and Student Engagement (actually although 39 years at the University. She played a recently launched) is a different message than the fact that most entrepreneurship classes are Management of the budgeting and reorganizing major role in crafting the Emphasis Areas that have a mere center for academic collaboration and open to students from across the campus and not process. While precipitated by a national and state enabled substantive clustering of disciplines in ways student involvement. So too when the family just in Business, a program strategy that is likely economic collapse, the process of deciding what that track with economic clusters in the state. The spokesman (and distinguished Clemson professor) to have significant “culture-changing” impact to do ended up with a university laser-focused outgoing Dean of Business and Behavioral Science Charles Watt describes the center’s purpose as on the Clemson community at large as opposed on innovation, technology, and knowledge- held the position for a decade, and recently moved follows, it says something about Clemson: to one that is focused primarily on business based economic revitalization. Over a period of to a college president job. His interim replacement students. While there does not appear to be an a few years a cohort of senior leaders, including was founder and chairman of four technology We want to create an intellectual center Entrepreneurship major, an Entrepreneurship the president, deans, and senior administrators companies, has several awards for technological that will prepare a new generation Minor is offered for nonbusiness majors, consisting held frequent face-to-face meetings down to the accomplishments, and has served in technology of scholars who will take ideas from of 15 credit hours. A Technology Entrepreneurship level of departments. The latter were particularly management positions at Georgia Tech and the concept to the marketplace. This will Certificate is offered to graduate students in intense SWOT analyses, and usually involved Office of the Secretary of Defense. The outgoing be a place to demonstrate and enable engineering and science programs, consisting of the VP for Research, the Provost, the Vice (on medical leave) Dean of Engineering and Science education, discovery and innovation. nine credit hours of graduate level coursework. President for Economic Development, and the (since 2006) has served on the National Science A recent program innovation involving the Chair of the Faculty Senate. The discussion Board and while on the faculty of Wayne State Boundary Spanning: topics included departmental strengths and Spiro Institute and the College of Business is the University started a technology-based company. Entrepreneurship establishment of a 1-year MBA in Entrepreneurship weaknesses, national stature, opportunities to She has been at Clemson since 1985. Her interim Entrepreneurship programs at Clemson are and Innovation, which has several novel features. be significantly better, and change strategies. replacement serves on the Board of Oak Ridge nominally centered in the College of Business and One, it is located in Greenville at the new off-site Upwards of 100 meetings like these were held and Associated Universities (ORAU), is Chairman of Behavioral Science but in fact the scope and reach campus facility known as Clemson at the Falls, hard choices were made that would determine the Bioengineering Alliance of South Carolina, of their activities is campus-wide and closely linked which also houses a Small Business Development the direction of Clemson for years to come. and coordinates the College’s research centers, to other innovation activities on campus and in Center. Two, it is conceived as a full-time alliances, and institutes. He has been at Clemson Continuity of Innovation Leadership. During the community. The Arthur M. Spiro Institute experiential program personalized to a small cohort for over 25 years and has served as President of the last 10-12 years of significant change Clemson for Entrepreneurial Leadership, in operation for of applicants (25 students) who have a business Clinical Microsystems, Inc, a technology company. has been blessed by a leadership group that has had 15 years, is in many ways the entrepreneurship idea in mind or in the planning stage. Three, in years of innovation-relevant experience. In addition addition to class-based experiences, a key feature Creation of New Positions and/or Program center of gravity at Clemson. Internal members to the President’s background, the former Vice of the program is the expectation that over the Descriptors. While this may be a minor footnote of the Leadership Board include an Academic President of Research and Innovation (notice title), to the Clemson story, often when universities Director, an Associate Dean of the college, an year enrollees will work closely with a mentor who retired two years ago, had been at Clemson create or re-engineer themselves, they also typically entrepreneur-in-residence, a visiting scholar, a network of established entrepreneurs to nurture for 29 years. He was nationally prominent as an create a leadership position that has a relevant Program Director, and the Executive Director of the and develop the business idea. Students also advocate for innovation (chairing the American name. That name can also send a message internally Board. The Leadership Board also includes a dozen receive hands-on real-world skills development in Society of Mechanical Engineers Innovation and externally. So a Vice President of Research seasoned entrepreneurs from various industries and areas that include legal and regulatory aspects of Committee), and he participated in various regional business development, web design, fundraising, and Innovation means something different than companies, most with a South Carolina presence. and national boards concerned with invention 96 97 INNOVATION U 2.0: New University Roles in a Knowledge Economy Clemson University rapid prototyping, and a summer internship and entrepreneurial insights. It sponsors a Launch average, which we would argue favors real world matters (e.g., Rutland Institute for Ethics); and experience. The initial class started June, 2012. Pad competition, now in its second year, that innovation. Industry sponsored research conducted some are relatively inactive either because they are features prizes of over $20,000. Participants include by faculty tends to come in several modes: contract in the formative stage or have not been successful Another program innovation launched at students and state residents. Other events include research arrangements that involve one company in connecting with partners. Nonetheless the fact Clemson at the Falls is a “Mini MBA,” essentially Network Mondays, Venture Fridays, Lunch Studios and one university research team; research that Clemson has a large number of centers and a certificate program for fully employed students. with Practitioners, and a guest lecture series. conducted in the context of a university center or institutes indicates that the culture and administra- It consists of five all-day Saturday instructional institute, sometimes involving several companies tion encourage cross-disciplinary cooperation. sessions around business fundamentals, as well as The Spiro Institute works with the Clemson and several faculty members; or consulting networking activities with local entrepreneurs. It University Research Foundation (CURF), relationships between a faculty member and a There are also a small number of Centers that is being offered through Clemson’s Professional the Clemson technology transfer program, by company (or companies) where the work may be have higher profiles and more financial support. Advancement and Continuing Education program. serving on the CURF board and as an occasional performed during the summer or on the generally For example the Clemson University Centers of resource in cases where the commercialization accepted “consulting days” that all universities Economic Excellence are participants in a State Co-Curricular Programs route for a student invention is likely to be a permit. The fees transacted in this last category of South Carolina initiative, the Smart State SC Centers of Economic Excellence program. While not formally linked, Clemson’s startup. It selects Student Entrepreneur of the are rarely counted in a university’s research totals. Smart State receives state lottery funds that are entrepreneurship activities in Greenville are also Year awards for both undergraduate and graduate dispensed on a matching basis. For example, it enabled by NEXT which is an initiative of the students. It recognizes notable Clemson Alumni Centers and Institutes. The center/institute has supported 16 endowed professorial chairs Greenville chamber in partnership with a large Entrepreneurs. It spotlights various award and model of faculty research with companies has in 13 key areas and centers. These include: number of local entrepreneurs as well as major scholarship programs. It holds speaker and been important for Clemson and is nationally panel events to inform the Clemson community very important for fostering university-industry technology-based companies with facilities • The International Center for about entrepreneurship issues and thinking. It innovation outcomes. One reason for the greater in the area (3M, Lockheed, GE). The NEXT Automotive Research (CU-ICAR) Innovation Center is an incubation facility as informs and helps organize various contests that impact is that R&D problems in business and well as a network of mentoring relationships and are open to students and the community. industry tend to span academic disciplines • Advanced Fiber-based Materials programs. Greenville has become a robust center and concepts, and centers or institutes often Center of Economic Excellence Clemson benefits from a well-organized and have more conceptual or methodological of job growth and investment in the upstate veteran set of entrepreneurship activities and region, and a significant partner for Clemson. bandwidth to accommodate them. Illustratively, • Advanced Tissue Fabrication Center programs that mesh with a range of other programs when an industrial problem gets solved in a (in collaboration with the Medical The Spiro Institute also recently introduced and activities to build an innovation culture in novel way and the solution leads to a patent, University of South Carolina [MUSC] a pilot class in social entrepreneurship and the university and in the larger community. very often the list of inventors is multidisci- and the University of South Carolina) established a MAD (Make a Difference) video plinary. Clemson’s approach to Emphasis Areas Boundary Spanning: competition where student and community teams (described above) may enable them to be more • Cyber Institute University, Industry and Community each create a 3-minute video showing the impact nimble in developing these partnerships. • Health Facilities Design and Testing (also of their new social venture on the community. One of the better indicators of academia’s Clemson, like many research intensive in collaboration with USC and MUSC) inclination to be technologically innovative is In addition to its involvement in educational universities, has a multitude of centers and the extent to which its core activities—teaching • Optical Materials and Photonics, which is part programs and research the Spiro Institute is engaged institutes “on the books.” Per a Clemson roster and research—are engaged with inputs from the of the Center for Optical Materials Science in a number of activities that foster entrepreneur- dated 8-13-2012 there are 88 centers or institutes. outside world, particularly business and industry. and Engineering Technologies (COMSET) ship at Clemson and in the larger community. It Not all of these are strongly related to R&D and Consider research and the extent to which has published an online newsletter, Entrepreneurial fostering technological innovation (e.g., Clemson • Optoelectronics (COMSET) university research involves industry funds. For Leader, which informs the community about Institute for the Study of Capitalism); some seem several years Clemson has exceeded the national events, people, program opportunities, research to have a stronger linkage to teaching or academic • Regenerative Medicine 98 99 INNOVATION U 2.0: New University Roles in a Knowledge Economy Clemson University

• SeniorSMART (with University …are notable for their direct economic in that area have been identified. For example, the agents in the field. One REC, located in the West of South Carolina) development potential because of Advanced Materials Emphasis Area has identified Indies, was established via a donor gift and is the combination of the University’s the following related Centers and Programs: operated with regional collaborators. In addition to • Sustainable Development strength in the field and a related publications, information-sharing, and instructional • Advanced Materials Center programs about agriculture , the extension • Supply Chain Optimization and Logistics industry presence in the state. per se • Center for Advanced Engineering activities extend to helping clients succeed in new • Tissue Systems Characterization In a parallel manner, the office of the Provost Fibers and Firms companies related to the sector. Reflecting its at Clemson, which traditionally has responsibili- statewide economic-development mission, a study • Urban Ecology and Restoration ties for instruction, professional development, • Center for Optical Materials Science was recently completed looking at the ingredients and the curricular structure of the University, has and Engineering Technologies of prosperity across 46 South Carolina counties.2 Inter-Disciplinary Clustering and Center adopted the same Emphasis Areas that define the Reflecting the changing vision of extension, a Linkages. Generally universities organize their work activities of the office of research. Since • Clemson Institute for Advanced program growing out of the Sandhill REC, the operating structures around discrete academic another responsibility of the Provost is to oversee Materials and Manufacturing Gussie Greene Technology Center, is expanding disciplines, sometimes thought of as “silos.” Thus graduate education, there has been an effort to technology-related skills in the community of traditional engineering disciplines will be bundled • Clemson University Restoration Institute identify centers and programs related to each of Chicora/Cherokee in North Charleston. The city into a college of engineering; likewise traditional the emphasis areas. For example, a dissertation and some technology companies are partners. business disciplines will be grouped into a college of • Electron Microscope Facility project being developed by a graduate student business and so on. The problem for business and in department X might benefit from committee • Laboratory for Advanced Plastic Since 2006 Dr. John Kelly has led Clemson’s industry is that knotty problems tend to involve a members who are affiliated with centers or Materials and Technology research, extension, and community engagement wider range of academic disciplines. For example, institutes A, B, and C. The articulation of these in agriculture. Recently Kelly has acquired new to design, manufacture and effectively reach • Sonoco Institute of Packaging Emphasis Areas, listed below, involved dialogue duties that leverage his years of experience in markets for a new biomedical device may require Design and Graphics among the VP for Research, Provost, college deans, ag-related outreach but extend his responsibili- innovation in materials, sensors, computer software, department chairs, and key faculty researchers: ties—and an enlarged Clemson vision—into new logistics, market research and sales. All things In a like manner each of the other Emphasis Areas has been linked to a small number of centers, territory. This includes the establishment of large equal, universities need to do better at this creative • Advanced Materials R&D facilities, away from the campus and often at bundling. institutes and programs. This approach is not only neat and tidy, but it seems to make sense the other end of the state, that have both technologi- • Automotive and Transportation Technology cal and economic implications. Appropriately, As noted above, the research administration to industry partners—and potential funders, Kelly’s revised title is Vice President for Economic function of Clemson has approached its work • Biotechnology and Biomedical Sciences as per the Will to Lead campaign. Development (formerly Vice President for Public in terms of broader Emphasis Areas rather than • Information and Communication Technology Services and Agriculture), with a reporting the discipline and sub-disciplinary structure that Expanding and Re-Inventing Extension. relationship primarily to the President. In addition typically drives relationships in a more traditional Clemson has been a center for Extension activities • Sustainable Environment to the agriculture-related activities described above, academic setting. This is not to say that colleges for much of its history. In addition to campus-based he has assumed additional responsibilities pertaining and academic departments should not exist; they • Leadership and Entrepreneurship research in the agriculture-related sciences, it has led to R&D facilities and programs that are not on do work together to achieve teaching, research, statewide extension services that serve thousands of campus, some of which are urban-located and most and public service goals. But many R&D activities • Family and Community Living individuals and enterprises across South Carolina of which are not closely linked to agriculture. demand a more inclusive structure that crosses as well as operating six Research and Education • General Education Centers (REC). Each REC tends to be a hub for a boundaries within the academic setting. From One way to think about these programs is akin the perspective of the office of the Vice President And for each of these Emphasis Areas a small different agricultural and climatological zone. They house resident faculty and coordinate with extension to chunking content together for greater scope for Research office the Emphasis Areas: number of Centers, Institutes or programs that work and impact, and physically locating the programs

100 101 INNOVATION U 2.0: New University Roles in a Knowledge Economy Clemson University in venues where they might reach more people • The Clemson University International Center the South Carolina Research Authority, the economic development via studies, funding and and companies. These activities can be large and for Automotive Research (CU-ICAR) is Applied Research and Development Institute, advocacy. These included the Southern Growth facilities-based; others can be more distributed and also located away from campus, in this case the National Brick Research Center, the Tile Policies Board, the Southern Technology Council, utilize media and the Internet. An example of the Greenville, which is 50 miles from Clemson Council of America and in a new facility the South Carolina Council on Competitiveness, latter is the Technology Village concept that is being near the intersection of two Interstate Duke Energy Innovation Center. The facility South Carolina Department of Commerce, brought to bear in rural and small-town areas and highways, 90 miles from Charlotte, and 150 has over 100,000 square feet of lab and office and Southern Rural Development Center. is focused on new technology companies. Using miles from Atlanta. CU-ICAR has received space. All programs are structured for significant Clemson also maintains connections with a a hybrid mix of Internet-mediated consultant “best practice” plaudits from the National industry involvement. In particular, COMSET wide variety of industry associations, national and services and “storefront” incubation assistance, the Academy of Sciences, and encompasses research, (with Rutgers) is a National Science Foundation regional, that map well against the R&D emphases program is reaching a wide range of clients. Service development, graduate education, and a venue Industry/University Coperative Research of the university. One interesting example is a topics include intellectual property, technology (“magnet”) for auto industry meetings and Center, which is structured with paying industry “quango”3 evaluation, seed financing and human resources. conferences. It sits on a green-field 250-acre members who play a strong role in defining the based in Charleston, the South Carolina site that includes laboratories, conference Center research agenda and reviewing results. Research Authority (SCRA). SCRA was birthed by There are also larger, more technology facilities, and instructional settings. The The Center is also under the purview and the South Carolina legislature with a grant of $500K intensive activities: plus a grant of 1,400 acres. While a 501( c )(3), research program is organized into “clusters” that benefits from the strategic guidance of Dr. Kelly. include manufacturing and materials, advanced SCRA has a distinctly private sector, technology- • The Clemson Restoration Institute is an interdisci- powertrain, vehicular electronics, human State and Local Programs. Clemson has a variety oriented set of mission goals. It assists early stage plinary program that aspires to “drive economic factors, and component testing. CU-ICAR has of program and policy links to public and non-profit and startup companies in conducting applied R&D growth in the natural, built and restoration organizations that enable its mission of innovation that typically involves federal or private sector by developing and fostering restoration accelerated the development of an automobile economy” and economic development, as per the Clemson clients and it builds and manages R&D facilities, via industries and environmentally sustainable economic development cluster in the upstate 2020 Road Map. For example, the University a range of partnership arrangements. For example, technologies in South Carolina. Vice President region that includes OEMs, suppliers, and Center for Economic Development (UCED) is a it has dozens of contracts with federal agencies as Kelly was involved in the development of the industry research organizations. About half of joint program of the Clemson Regional Economic well as with over 200 corporations. Much of the Institute and is the Executive Director. The the students receiving graduate degrees through Development Research Laboratory (CREDRL) work is performed in South Carolina where SCRA Institute recently received a $5 million gift from ICAR end up working in the region. There are and the Clemson Institute for Economic and is located. For example SCRA is working with the Zucker family to contribute to a graduate several buildings and facilities on the site. Most Community Development (CIECD). It is Clemson’s Advanced Materials Center in Anderson education center, as well as a $700K planning recently, in May 2012, ICAR opened a 60,000 supported with funds from the university as well as to significantly enhance R&D space and programs. grant from NSF for curriculum development. square foot multi-tenant building, which will support from the U.S. Department of Commerce Two R&D launch activities will include a ease participation for its 17 resident partners The most significant partnerships between Economic Development Administration (EDA). wind turbine drivetrain testing facility, which and 24 research partners. Vice President Kelly Clemson and state government have been embodied played an important role in launching ICAR is being built with $45 million in Department UCED conducts research and provides in the Smart State program noted briefly above. and building the facilities and the clientele, of Energy funds supplemented by $53 million technical assistance to local economic entities— The history of that large and diversified program and has ongoing strategic responsibilities. in private and public funds, and another $3M urban and rural—in the form of workshops, goes back over 10 years. Some of the analytic project to use Intelligent River technology— rationale was reportedly provided by a cluster • The Advanced Materials Center is located in training, evaluation, and strategy building. UCED a battery-powered MoteStack to monitor 312 Anderson, SC, less than 10 miles from campus, also maintains links and information-sharing study performed with Michael Porter, which miles of the Savannah River for water quality. and is an external outpost for Clemson’s with other centers and institutes on campus led to the identification of a small number of The MoteStacks are anchored to the stream significant strengths in this R&D area. It that are working in the general area of economic industry clusters as well as some greater attention bed, take sensor readings, and then transmit houses the Center for Optical Materials Science development, for example the Clemson Center to how the R&D assets of the South Carolina data to the Clemson computing system. and Engineering Technologies (COMSET), for Workforce Development. It also links to university community—Clemson, University of regional and national organizations that pursue South Carolina, and Medical University of South 102 103 INNOVATION U 2.0: New University Roles in a Knowledge Economy Clemson University

Carolina—could be brought to bear. The clusters Faculty research in universities is typically focused staff (counting the Director) plus two support community—potential investors, commercial- are: advanced materials and nanotechnology; on theoretical and empirical questions in a discipline staff. The newly hired Director has significant ization partners, entrepreneurs and so on. automotive and transportation; biomedical; future or area of study. Sometimes findings emerge that experience at Carnegie-Mellon (one of the cases in fuels; information science; and pharmaceutical. also seem to have implications for the world of this volume), Oak Ridge National Laboratory, and Disclosing, patenting and licensing activities The Smart State Program was created in 2002 with business and industry. The technology transfer Case Western Reserve. These capacities and people have increased significantly over the years. On the funds from the South Carolina Education Lottery. function in a university is the entity that works represent a significant institutional investment by Technology Search page of the CURF website 6 with faculty (and student) inventors and potential Clemson, which is paying off. A decade ago the there are over 160 inventions listed as available In addition, four other programs were users of that invention in the external world. staff was not as deep and even as recently as the for licensing. Of these 74 were in the area of established via the following legislation, as follows: FY2010 AUTM statistics Clemson was reporting advanced materials, 43 in biomedical sciences and The Organization. The technology transfer only three FTE professional staff members. 31 in biotechnology. Not surprisingly, these also • The Research University Infrastructure Act function and associated activities at Clemson reflect the core R&D strengths of the institution. . This created a pool of funds for (2004) are organizationally located in the Clemson Performance. Clemson’s technology transfer the three research universities, awarded University Research Foundation (CURF), which performance has improved markedly over the So too do the increasing number of on a matching basis for facilities and other is a 501 ( c )(3 ) not-for-profit corporation. CURF past decade so as to be clearly among the most technology-based early stage companies that are investments in areas where the institutions has a reporting and coordinating relationship with effective offices. Looking at FY2012 data from populating the area and the state and have some already have some established credentials; the senior leadership of Clemson. It is governed the Association of University Technology Transfer linkage to Clemson. Thumbnail descriptions of by a Board of Directors (currently 18 members), Managers,4 it is clear that Clemson does well on several early stage companies are found on the • The Life Science Act (2004). This program 5 CURF website under Cluster Companies. As created a pool of funds available to life science half of whom are from external organizations several normalized metrics of performance. For (primarily technology-based companies) and example, its rate of invention disclosing is better above, the technological business opportuni- companies, for capital investment, that meet ties that these companies are chasing tend to certain criteria of economic impact; the balance are mostly Clemson senior leaders than the majority of the top-100 research-intensive (President, Chief Financial Officer, Comptroller, universities. An invention disclosure seems to reflect the core R&D strengths of Clemson. • The Venture Capital Investment Act (2004). Vice President for Research, Vice President for emerge for about $1.1 million of reported research CURF is moving toward a somewhat more It created a pool of funds for equity investment Economic Development, two deans, and one expenditures. So too its normalized rates of aggressive and externally engaged approach to its in SC-based firms, ranging from seed professor/department chair). In effect, CURF securing patents and option agreements compares technology transfer work. That is, rather than investments to larger equity levels. It also is able to conduct its mission for Clemson, favorably to the majority of top-100 schools and waiting for faculty disclosures to come in the provided small grants for incubator facilities without being hampered by the departmen- also holds up against the distinguished company door or over the transom, CURF staff will be and services in state universities; tal and college level politics and processes. This of this case sample of Innovation U institutions. engaging researchers in the centers and institutes is a common format for technology transfer where many of them perform their research, and • The Innovation and Research Centers Act It should also be noted that the academic operations among leading universities. trying to identify invention ideas as they are still (2005). While administered by SCRA members of the CURF Board are primarily (above) it supported research, product CURF is physically located off-campus, drawn from those colleges and areas that are most emerging. They will then work with the faculty development and commercialization with approximately eight miles away, contiguous likely to be sources of invention and intellectual member to move the commercialization process links to the three research universities. with the Advanced Materials Research Center. property. As such, they often function as informal along. In parallel, there will be efforts to reduce This kind of physical location tends to facilitate early links (“scouts”) to research activities and “false positives” in the innovation process. For Boundary Spanning: interaction with potential technology transfer people who are potential sources of invention example, if a faculty member discloses an invention Technology Transfer partners from the private sector. with commercial potential. Similarly, the business that CURF sees as having marginal commercial and industry members of the CURF board have potential, it may choose to not pursue patenting A central enabling function in fostering and Over the last decade the scope and capacities of the technical backgrounds that map well with and in effect give it back to the inventor, although enabling innovation and economic impact in a the CURF organization have grown. Depending on what Clemson does in research and development, it will retain some modest share in royalties or university is the technology transfer function. how one counts, there are currently five professional and can thus broker connections in the larger other returns realized by the faculty member.

104 105 INNOVATION U 2.0: New University Roles in a Knowledge Economy Clemson University

Another locus of activity in which the office of In summary, technology transfer at Clemson 3 Also known as a quasi-autonomous-non- the VP for Research and CURF are coordinating is is a robust and growing activity. It also benefits government-organization. when Clemson is on the brink of signing a contract considerably from the larger culture of the 4 research agreement with a company and where institution and the many cross-functional linkages Association of University Technology Managers. the company is pushing very hard for advance between the university and the community. It (August, 2013). AUTM U.S. Licensing Activity agreements and special treatments regarding IP. benefits from imaginative leadership within Survey: FY2012. Deerfield, IL: Association Sometimes the VP will convene an informal “task the office and across the university. of University Technology Managers. force” to review the contract terms and decide 5 Normalized metrics are equivalent to batting Summary and Parting Comments whether the agreement involves too much “give” averages in baseball. For example, the total to accept—or to come up with a creative solution The Clemson case is an enlightening example number of invention disclosures is a poor way that will enable the project to go forward. of a university that over a relatively short period to compare university A and university B, particularly if B performs 10 times the research Technology Transfer Adjunct Facilities. In order of time—less than 15 years—has expanded to enhance the entrepreneurial side of its activities, the scope and quality of its R&D, enhanced that A does. The better comparison is the rate or CURF also operates or participates in facilities and its instructional programs, adopted a daring incidence of disclosing. For example, if university programs that supplement what the office does. and novel mission that is much more oriented A produces a disclosure (or license or whatever) to technological innovation and economic for every $2 million of research expenditures, it For Example, the Center for Applied Technology outcomes and—at the same time—managed an is doing better than B which has one disclosure (CAT) is an incubation facility that is located in unprecedented decline in state funding in the for every $4 million of research expenditures. Pendleton, South Carolina. It includes roughly midst of a national recession. For those universities 6 This was as of mid-September 2012. 30,000 square feet of space, including 8800 square that are confronting similar goals and challenges, feet of wet lab facilities, and 10,500 square feet there is much to learn from the Clemson story. of office space. Its clientele includes early-stage companies, mostly with a direct link to Clemson, but also “soft-landing” companies that simply Endnotes need time, space and support to grow. There is a receptionist and the typical office features (internet, 1 National Science Foundation, National FAX, audio conferencing, etc). A regional Small Center for Science and Engineering Statistics, Business Development Center (SBDC) also FY2011. Table 14. Higher education R&D works with tenants and clients of the CAT. expenditures, ranked by all R&D expenditures, by source of funds: FY2011. Table 15. Higher Another parallel facility also is located in education R&D expenditures, ranked by all Pendleton, albeit this is a “mixed use” program R&D expenditures, by R&D field: FY2011. with a wider variety of tenants and disciplines. It encompasses 18,100 square feet, with 4,100 2 Lipford, J. W., Watkins, T. and Yandle, B. (2011). square feet for offices, 6,100 square feet of lab Prosperity in South Carolina: An Analysis of 46 space, and 8,000 square feet of common areas. Counties for 2000 and 2008. Clemson University, The range of services is comparable to those Office of Economic Development. Retrieved in CAT. The conference space also includes from http://www.clemson.edu/economic- smartboard, polyboard and overhead services. development/files/2011_prosperity_report.pdf

106 107 University of Florida*

The University of Florida’s (UF hereafter) rise from educational ventures were consolidated into the a meager, men-only, and poorly supported college University of Florida. UF was still a males-only, to a nationally significant institution parallels in whites-only institution, and was eventually many ways the burgeoning growth of the state that designated the Land Grant campus for the State. it serves. After a fruitless search for gold and silver It welcomed 102 students in September of 1906. by Juan Ponce de Leon and Hernando de Soto during the 16th century, the area that was to become The University of Florida continued for much the state of Florida settled into a long Spanish of the twentieth century as primarily a modest occupation,1 marked mostly by the establishment enrollment, mostly teaching institution—as did of Catholic missions. That lasted until 1821 when many public universities across the US Between Florida became a US territory. Andrew Jackson 1906 and 1945 the student head count never figured significantly in the territorial period, which exceeded 3,300 students. In 1946 it jumped to was notable for immigration from the rest of the 6,634, nearly doubled by 1956 and jumped to south as well as attempts to evict Seminoles from 18,309 in 2006. The GI Bill was part of this, but so the region, which met with mixed success. In 1845 too was the rapid population growth in the state— Florida was admitted to the union and by 1850 from 1.8 million residents in 1940, to 4.9 million in the resident population was 87,445 including 1960, 9.7 million in 1980 and 19 million in 2011, 39,000 African American slaves. This gave the new as the 4th most populous state in the country. The state one seat in the House of Representatives. 2012 fall term enrollment at the University of Florida was 50,086. The institutional precursors to UF emerged during the mid-19th century. In 1853 the The composition of the state economy was governor signed a bill that provided public support also evolving throughout the post-World War II to college education. Concurrently the East decades, from an early reliance on agriculture, Florida Seminary (EFS) was opened in Ocala as a construction, and later on the space industry, to males-only institution of higher education. That a much more diversified mix of knowledge-based college was closed during the Civil War period services, technology, and health systems. As of 1861-1865 and reopened in 1866 at a new these economic changes took hold, so too did the site in Gainesville. Florida Agricultural College university structure in the state. By 2011 the state opened in 1884. Eventually in 1906 these various of Florida had become the home for four top-100

* This case was written by Louis Tornatzky, Elaine Rideout, and Olena Leonchuk. INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Florida universities (in terms of research expenditures) University Culture: student entrepreneurial behavior. So we dug deeper • By 2008 or so, the University of Florida had with the University of Florida leading the pack Goals and Aspirations for how other goals and aspirations entered in. become a “top-20” university or thereabouts, in 18th place nationally (from 40th in 1992). and was in some fairly distinguished company. After the current UF president, Bernie Machen, Between 2002 and 2009 UF increased its research The “culture” of a university, or any large Most members of that cohort of institutions came to the university in 2004 he executed a expenditures by 53.3%, exceeding the national organization, is an amalgam of what it values, what have a broader and more expansive notion of highly participative strategic planning process growth rate. In FY20112 the University had it aspires to in terms of its goals and strategies, what the research, education and service functions that resulted by 2007 in a University of Florida research expenditures of $739.9 million, with the it does and intends to do more of, and what it talks of a university. They have found, for example, Mission Statement (the above) and an accompany- lion’s share (81% ) in either the life sciences ($506.8 about. The University of Florida has historically, up that if they want to lure and retain a growing ing set of 48 Goals that constituted the Strategic million) or engineering ($92.8 million), reflecting until the last decade or so, been mostly concerned fraction of outstanding (and well-funded) Work Plan for the University going forward. Few its historic Land Grant history, its emphases in about the quality of its educational experience, the faculty members, they will have to be good had anything to do with the focus of this book, biomedical research, as well as a growing concentra- scope and excellence of its research and scholarship, at innovation, particularly in activities like and most had to do with the normal business of a tion on sustainability issues and problems and its service to the public good via an educated technology transfer, enabling faculty startups, citizenry and workforce. Like nearly every US large energetic institution. Digging into the details, and private sector relationships. Otherwise Currently the University is structured into 16 University, UF’s goals are articulated around pretty only Goal #38 mentioned innovation as follows: people may leave. It should be noted that two colleges supplemented by upwards of 150 research much the same themes of teaching, research, and of the more interesting and strategic steps taken Increase extramural funding and scholarly centers and institutes, all of which is enabled by service. In fact, in virtually every professor’s by UF in the past decade relevant to our topic productivity for agricultural research, a distinguished faculty of roughly 4200. So too evaluation for promotion and/or tenure across the is a major enhancement in the leadership and extension and academic programs that has the University garnered a growing number of country, those same domains are the key dimensions. staffing of the Technology Licensing office3 span basic discovery, innovation and accolades and awards. U.S. News & World Report which shortly followed the appointment of So, the University of Florida Mission application. [Emphasis added.] ranked it #19 among Top Public Universities in a Vice President for Research who was very 2011, #7 by Princeton Review as Best Value Public Statement for 2010-2011 closes as follows: 4 Since this is a book about Innovation U, what knowledgeable about university technology College 2012, and #2 in Kiplinger’s Best Values in These three interlocking elements—teaching, else was going on in 2007 at the University of transfer and “best practices” therein. Public Colleges 2012. Among its faculty 40 are research and scholarship, and service—span Florida and since then to assume that UF had classified as Eminent Scholars, 27 are members of • Sometimes the world changes. Historically, all the university’s academic disciplines and evolved into an “innovation culture” as sketched either the National Academy of Sciences, National most university senior administrators could opt represent the university’s commitment to lead in above? We will argue the following: Academy of Engineering, Institute of Medicine, to be weakly interested, effective or supportive and serve the State of Florida, the nation or the American Academy of Arts and Sciences, regarding innovation, entrepreneurship or and the world by pursuing and disseminat- • First of all, it is safe to assume that President plus two are Pulitzer Prize winners. Faculty technology transfer and still be OK with their ing new knowledge while building upon the Machen, who came to the University of Florida excellence is matched by student excellence, with constituencies in state legislatures and governors’ experiences of the past. The university aspires in January of 2004, was already very supportive the Fall 2011 entering class havingaverages of a offices. But that state of affairs changed quite to advance by strengthening the human of and experienced in fostering an “innovation 4.23 high school GPA and a SAT score of 1920. a bit in the last several years. As the national condition and improving the quality of life. agenda” at UF. He was previously President of the University of Utah, an institution that economy has weakened and nearly collapsed, While all of the above depicts a distinguished along with declining state support of universities, The three “elements” noted above are pretty was very active and successful in many of university, it does not necessarily describe a more people became interested in how to much standard fare for US universities everywhere. the elements of innovation discussed in this university that is deeply involved in innovation leverage the university’s intellectual assets into However, the case analysis that went into this volume. Notably, the University of Utah was and economic impact. In the following sections the private sector. Thus visions and programs chapter uncovered many stunning examples in one of the 12 cases presented in the 2002 we will elaborate on the energy and talent that that mentioned innovation, commercialization, which the UF is delving deeply and effectively edition of Innovation U: New University Roles the University of Florida has deployed toward and entrepreneurship entered the university into innovation, the active commercialization of in a Knowledge Economy (while Machen was those goals. and public policy lexicon more frequently. invention and the encouragement of faculty and President) and continues in this edition.

110 111 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Florida

• Not only have universities changed but so too transfer, and entrepreneurship, as he became are available and a range of related topics. which argued that the innovation activities have contiguous communities and political a significant advocate for these activities: that are now underway—incubators, startup • In June 2010, President Machen presented at the bodies. In many town and gown settings, the companies, advancements in instructional Innovation Hub Groundbreaking, a partnership extent of serious collaboration between the • In a 2007 eulogy for Gatorade Inventor delivery—are the logical successors to what between UF and Gainesville, that would two worlds has been minimal or sometimes Robert Cade, the President lauded his many was launched by the Morrill Act in 1862. encompass the redevelopment of downtown prickly. That has changed significantly across the invention triumphs, as well as how “From and will include UF facilities and programs In terms of what UF is talking about country, including at the University of Florida our experience with Gatorade, we learned focused on the development of UF spinoffs, via and doing, it is relatively clear that while the and metro Gainesville. In effect, the culture of a lot about the right ways to support our Innovation Square, Innovation Hub, and the core traditional mission goals of instruction, university-community interaction has changed. faculty in nurturing their inventions.” growth of a contiguous “creative community.” research, and community services go on and The argument here is that because of internal • In a 2008 eulogy Celebrating the Life of dominate the attention of the institution, S. Clark Butler, he remarked on his many • In October 2010, President Machen presented and external events over the past several years the new mission elements are emerging. accomplishments as an entrepreneur and at a Lake Nona Groundbreaking (in Orlando), culture of UF has shifted in a more positive direction which involved a programmatic collaboration Moreover the president is being an effective regarding innovation, technology commercializa- praised his role in supporting the UF Center with Sanford-Burnham Institute for Medical advocate for the University’s innovation goals, tion, and business and social entrepreneurship, and for Entrepreneurship and Innovation. Research, UF and the University of Central that are being helped by an ambitious fundraising that these activities are a growing fraction of the • In a 2008 speech for Dedication of the Florida, that will foster “research and innovation effort. Only three years after its launch in 2010, institutional culture. Moreover, President Machen Cellulosic Ethanol Pilot Plant, he mentioned, that elevates our ambitions, magnifies our the “Florida Tomorrow” campaign had, as of has led that process of culture change, in concert “Lonnie Ingram, a distinguished professor strengths, accelerates our achievements…” early 2013, already reached and exceeded its with a cohort of internal and external advocates. of microbiology, [who] came up with five-year goal, raising $1.6 billion for research and • In November 2010 the President spoke to the One interesting way to track this at UF is to scan the invention to make this possible.” education. These funds have helped to endow Clay County Chamber of Commerce Economic 5 Presidential speeches and attributions over the last 292 professorships, up from 170 in 2004. • In March of 2009, as the recession kicked Development Luncheon. His talk was a few years. Let’s start with something from C. David in with a vengeance, the President made a free-ranging overview about UF accomplish- Brown, II, Chairman of the University of Florida UF excels at quantifying the economic results presentation to the Heart of Florida Economic ments and aspirations in research, development Board of Trustees, in a July 17, 2012 press release that fundraising and public investments yield. Summit, about the need to be “willing to and entrepreneurship, and how they will “create announcing the formation of a search committee The Florida Tomorrow campaign, for instance, innovate to meet new consumer demand jobs, economic opportunities, and a unique to identify President Machen’s replacement: notes that for each state dollar appropriated, for products that are smaller, more efficient identity and brand for Gainesville and Florida.” the university generates $8.80 for Florida’s and cleaner.” He went on to talk about the President Machen’s tenure has been economy. Other measures of success include the technology incubators available for these tasks • In August 2011 the President made a extraordinarily successful. Under his 140—and growing—start-up companies that at the University of Florida, and then handed presentation to the Southern Governors’ leadership we have built new state-of- have been created using UF technology, and the off the UF message to David Day, of the Office Association Annual Meeting that reviewed the-art sustainable educational and $100 million in venture capital investments that of Technology Licensing, “to give you a more the UF experience in technology commercial- 6 research facilities, significantly increased the university’s spinoff companies attracted. detailed look at our innovative technologies.” ization with a particular emphasis on the cost research funding and embraced Further, an economic impact study notes that of benefits of startup companies, incubators, innovation and entrepreneurship. the $8.76 billion that university-related activities • A month later, President Machen presented and other support services. at the UF Technology Showcase and talked generated in fiscal year 2009-10, 16 percent (or And in fact if we go back over the years about various UF emerging technologies, • In August 2012, welcoming everyone back to $1.43 billion) was contributed by UF technology to speeches by President Machen, there has UF spinoff companies, the extent of venture campus for the fall term, President Machen spin-off companies located in Florida. been a slow but increasingly prominent theme capital funding achieved by UF startups, made a presentation on The State of the centering around innovation, technology the incubation facilities and services that University: The Morrill Act and the Path Ahead, 112 113 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Florida

The University is also experimenting with over $1 billion in annual sales. Mr. Ring eventually Then there isoperational leadership, which toward innovation and industry engagement have other ways to maximize revenue and increase relocated to Florida, became active in politics involves actually doing innovation—whether occurred over the past dozen years. One “double efficiency—most notably by experimenting with a and a champion of a larger role for universities in in terms of creating a science-based innovation, play” combination was exceedingly important: 12-month calendar. Beginning in 2013, a section the growth of a knowledge-based economy. He commercializing it via licensure, or building Phillips to Day. Dr. Win Phillips became Vice of the freshman class will take on-campus courses was instrumental in creating the Florida Institute a new enterprise around an innovation and President in 1999, and during the subsequent years in the spring and summer semesters, but not in the for Commercialization and the Florida Growth getting directly involved in its success or failure. UF research expenditures more than doubled, fall. This program, known as Innovation Academy, Fund. Especially pertinent to the development of This kind of leadership from a system change while the institution moved into the cohort of elite enables the institution to enroll 2,000 additional an innovation culture at UF, Mr. Ring, as a first perspective is very powerful in that it involves one research institutions. Dr. Phillips is not only an students by maximizing space that until now has term state Senator, also took it upon himself to of the more effective modes of learning, whereby outstanding research administrator, but he is also been underutilized during the summer. The cohort organize a small study team, including President others can model the constituent behaviors. a knowledgeable advocate for an expanded role for will minor in entrepreneurship, innovation, and Machen, to visit the Sand Hill Road investment the university in regional economic development Historically UF leadership had not focused creativity, and receive encouragement to launch community in Palo Alto, CA, and later on to their through innovation and technology, promoting on technological innovation as a mission priority. their own ventures (more on this later). This is an counterparts in greater Boston. Arguably the road his views both on campus and around the state. The University of Florida traditionally has had interesting way to marry the economies of better trips had lasting impacts on what was happening at He has been very active in state policy discussions presidents of similar background, with strengths facility utilization with a novel curricular direction the University of Florida and elsewhere in the state. about making Florida a more knowledge-intensive in academic fields such as philosophy, math, that expands the innovation agenda of the campus. economy and has participated actively in regional Leadership medicine, or economics, who eventually moved up and national organizations focused on these It is also likely that the innovation culture the academic career path to become a president. issues. Notably, he participated extensively in What kinds of leadership enable a university of the University of Florida was enhanced by These experiences shaped the main goals of the Southern Growth Policies Board and the to broaden its goals and aspirations to extend to important external relationships and friendships. their leadership: reaching the highest academic Southern Technology Council, two regional policy innovation and engagement with regional economic Two are particularly noteworthy: Manny standards in instruction and scholarship, leading organizations that have been active for over 40 challenges and industry? The “kinds” as plural Fernandez and Jeremy Ring. Mr. Fernandez was the university to a higher emphasis on R&D, years in understanding policies and practices to is intentional. For one, there are several levels a member of the UF Board of Trustees from and being of service to the state and region. foster innovation-based economic development. 2001-2007 and its Chairman from 2003. Mr. of university leadership that can influence these UF has realized significant gains in technologi- Fernandez was the son of a Cuban immigrant and issues, from president, provost, vice presidents Dr. Phillips and President Machen have effec- cal innovation knowledge, attitudes, and behavior the family’s rise to business success is inspiring. and other comparable perspectives at a senior tively teamed up in fostering a more interdisci- across the university. For example, as described Mr. Fernandez received a BS in computer level, plus leaders at the college or department plinary approach to research and development, in the previous section, President Machen has engineering in 1967 and had a meteoric career as a level, who can be very influential. For example, which has brought faculty members of disparate been extraordinarily effective, and increasingly technology entrepreneur and CEO of Dataquest, in the Stanford case in this volume there were epistemological points of view together to pursue visible via his speeches and addresses to various Gavilan Computer, and Zilog. He played a historically important deans many years ago much larger research problems—the “grand audiences, in raising the consciousness of the strong personal role in recruiting Dr. Machen who helped to make Stanford what it is today. challenges.” These efforts have also enriched the campus and the community about technological to the University and has been a strong voice breadth of graduate and undergraduate education. There are also different domains of leadership. innovation. Dr. Machen’s leadership in this area for the changes at UF described here. For example, the Digital World Institute has For example, university officials as well as has been both cultural, and operational, being both joined together faculty and graduate students community leaders can teach or advocate around the Jeremy Ring has been a Florida state Senator a design advocate in the development of campus from engineering, computer science and fine processes of technological innovation. If this is done since 2006, and has also been an advocate for a more initiatives that will lead to innovation outcomes arts to use interactive tools and technologies for frequently, it can start to change the culture of the ambitious role for technology-based economic and playing a role in their implementation. “creative collaborations (using visualization) and development in Florida, as well as a major role for institution—as well as the contiguous community— UF’s most significant leadership accomplish- creation of digital products.” The facilities include UF therein. Mr. Ring was an early member of the in terms of what is important and valuable. ments in becoming a university more oriented the Polymodal Immersive Classroom Theater, founding team of Yahoo, during which it grew to 114 115 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Florida the Virtual Production Studio and the Digital designed and implemented that foster technologi- entrepreneurship out of disciplinary silos so that degree programs and complementary activities such Media Suite of production and post-production cal innovation for UF participants and concurrently it may be accessible to all university students and as speakers and workshops, in the start-up, social, systems. This center, along with others that are enable community economic development. These faculty, regardless of department or position. and corporate venture/entrepreneurship arenas. The similarly organized, has proved to be a magnet for community relationships contribute to shifting the CEI currently serves more than 2,000 undergraduate Within the past few years, this has resulted fund-raising efforts that result in major gifts and culture of the University and vice versa. Perhaps and graduate students per year and offers every in a plethora of programs and partnerships, position endowments. most notable has been Innovation Gainesville graduate student at the University of Florida the including the refurbishment of the CEI, the or IG. The organization operates and facilitates option to earn a certificate in new venture creation. 7 launch of a new Engineering Innovation Institute When he was the VP for research Dr. Phillips business incubation services, connects early stage at the UF College of Engineering, and the new The Engineering Innovation Institute, a second implemented or facilitated a variety of program companies to potential investors via the Innovation Innovation Academy (IA). The multi-disciplin- CEI-like center, was recently established on campus enhancements that had university-wide impacts, Gainesville Angel Network (IGAN), and thus ary IA is one of the most interesting examples (with some parts rolled out in spring, 2012) in the including the expansion of industry-linked research fosters a “collaboratory” of R&D, networking, of the University of Florida’s commitment to UF College of Engineering. Institute curricula centers, the crafting of technology-focused endowed and commercialization in Health Sciences and in innovation, leadership, and entrepreneurship. and activities focus on engineering innovation and chairs, the promotion of research partnerships Green Technology. In the sense of getting things The cross-campus program, which is open to entrepreneurship, with an objective to produce with other institutions, and partnering in several done, the innovation leadership and culture of all undergraduate students, was designed with innovation, engineering, and entrepreneurial technology initiatives with the State of Florida. the University of Florida has merged with its the objective of making the university’s diverse leaders. All engineering majors are required to take counterparts in the Gainsville community. Aside from the above, one of Dr. Phillips’ innovation resources more accessible to catalyze a 1-credit course as freshmen on leadership and more significant accomplishment was to In addition to leadership that is exercised innovation and entrepreneurship. The first innovation. Engineers may also earn a certificate in hire David Day as Director of the Office of by individuals who hold official positions freshmen class of 320 (admitted last year) received engineering entrepreneurship. Experiential student Technology Licensing (OTL). Day re-organized of prominence in the University, there has a pre-enrollment small-college experience focused offerings include an internship at a local company or the office, expanded services and activities and also been a growing cadre of peer leadership on innovation, creativity, and entrepreneurship venture firm and the Integrated Technology Venture led UF into a position of national leadership within the UF community, particularly on on a unique spring-summer semester schedule. Program (ITV), a year-long program bringing in technology transfer performance. His role the part of successful technology innovators/ together business, law, and engineering students The ongoing partnership between the UF goes beyond running OTL, and extends to entrepreneurs among faculty and students. The onto a multi-disciplinary project team to develop a and the Gainesville community includes plans pulling people together to accomplish larger late Professor Robert Cade (Gatorade) was technology commercialization plan and prototype to build an Entrepreneur’s Residence Hall, for initiatives. Illustrative is the Florida Institute for an early pioneer of success, whose experiences for a sponsoring company. Program partners include students, faculty, and business professionals in the Commercialization of Public Research, which ultimately conveyed lessons of why and how the the Office of Technology Licensing, the College Innovation Square, co-located in the city with the is a non-profit organization that has responsibili- University of Florida should do all this stuff. of Engineering, and the Levin College of Law. ties for fostering technology transfer between Hub community incubator. While most of this industry and the 11 state universities in Florida, Boundary Spanning: expansion is still in the works, when it is completed The Engineering Entrepreneurship Certificate as well as administering the Florida Research Entrepreneurship UF will have produced an entrepreneurial is quickly being followed, beginning in 2013, Commercialization Matching Grant Program ecosystem that will be worth watching. with a Certificate in New Venture Creation and the Seed Capital Accelerator Program. Their Entrepreneurship at the UF originated in and open to all university graduate students. This website has been likened to an invention catalog is anchored by the Center for Entrepreneurship Curricular Programs certificate will require two courses, and three and Innovation (CEI) within the Warrington for investors and commercialization partners. Historically the focal point for entrepreneurship electives. Another certification option available College of Business Administration. As program at UF, the CEI was established to teach, coach and to graduate students is a business concentration/ One of the more interesting aspects of UF offerings have grown and increasing numbers of inspire students pursuing entrepreneurial careers. minor in entrepreneurship (4 courses including: leadership has been their joint initiatives with their students have sought out entrepreneurial experienc- Partnering with other colleges at the University, business planning, social entrepreneurship, venture counterparts in the city of Gainesville. Several es, student demand and receptive university CEI delivers introductory and specialized courses, analysis, and venture finance). The objective is town-gown projects have been cooperatively leadership have begun the process of getting to provide graduate students the opportunity to

116 117 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Florida pursue careers in the new entrepreneurial economy Live Entrepreneurship Case Lecture Series, are designed to introduce students to global and the mentoring experience). or to pursue their own venture either upon Writing, Communications, Product Development entrepreneurial perspectives, cultural differences, • brings graduation or at some point later in their careers. and Management, Venture Finance, Business and to special issues, such as doing business in a The Entrepreneur-In-Residence Program seasoned entrepreneurs to campus for a week Plan Formation, the Integrated Technology sustainable manner and in an international context. to work one-on-one with students in the UF students also have access to numerous social Venture (ITV) Program, Law for Entrepreneurs, CEI Learning Laboratory. Entrepreneurs-In- entrepreneurship course offerings. Academic Strategic Management for Entrepreneurs); as Co-Curricular Programs courses available in social entrepreneurship include Residence also conduct classroom lectures, advise well as electives (Global Entrepreneurship, Social The focal point for many of the CEI’s an introductory course and a course in Business student teams, and facilitate networking with UF Entrepreneurship, High Tech Entrepreneurship, experiential learning offerings is the Jeff Gold Ethics and Corporate Social Responsibility that faculty involved in entrepreneurship education. Small and Family Business, Venture Analysis, Experiential Learning Laboratory located inside explores ethical and moral problems in business. Cases in Competitive Sustainability, and The the Center, next to the offices of faculty and • Other social entrepreneurship course options The JumpstART Workshop in Creative Technion Exchange Program in Israel). staff as well as the student Innovation Café. The is a one day arts event that include independent studies, applied field studies, Entrepreneurship Lab is home to a number of entrepreneurial attracts more than 70 students and community and internships. The CEI’s Innovative Sustainability In addition, all MSE students must support services and activities including: artists to a campus venue. The program of and Social Impact Initiative is the experiential complete two terms of participation in the Lean presentations, networking, and mingling learning component of the social entrepreneurship Entrepreneurship Accelerator Program (LEAP), a • The Case Lecture Series includes a luncheon series is a collaborative effort involving the CEI, program. The Initiative teaches students to use live interactive team-based experience focusing on and a Thursday “Startup Hour,” both of which the College of Fine Arts’ School of Art/Art the skills and strategies of business leaders to solve the identification and launch of an actual business bring prominent practitioners, government History, the School of Music, the School of social, environmental, and economic problems, venture. As part of this program, student teams support organizations, and service providers Theater and Dance, the Harn Museum, and locally and around the world. Activities include can receive startup grants and have the opportunity to campus to network with students about the Gainesville Fine Arts Association. Topics webinars, a speaker series, a film series, and to access incubation facilities. In parallel with real-world entrepreneurship topics. Other have included creativity and the brain, design “Dinner with a Social Entrepreneur.” The MSE these student-centered activities, the College of networking events include off-campus visits and commerce, and panel discussions hosted by Ethics Fellows Sustainable Lunch seminar series, Engineering has recently included inventorship and tours of entrepreneurial corporations, successful local visual and performing artists. for example, brings MSE students together with and entrepreneurship into tenure consideration. business incubators, venture firms, startups, small guest speakers for 8 discussions annually on topics businesses, and investment firms. One of the In addition to hosting entrepreneurial teams, Students also have the opportunity to take including sustainability, ethics, and corporate more successful networking events has been an the CEI’s Learning Lab serves as a focal point for a Global Connections course that covers the social responsibility in an entrepreneurial setting. informal meet-and-greet hosted by the UF Office student groups on campus, including United World intersection of entrepreneurship, international Beginning in 2013 the CEI plans to offer a summer of Technology Licensing (OTL) that introduces Social Entrepreneurs, the UF NetImpact Chapter business, and global strategy. It is taught utilizing Social Entrepreneurship Study Abroad in India, UF students seeking internships to local tech (graduate students), and Change the World UF: the case method where students complete a via a partnership with the Ashoka Youth Venture. entrepreneurs in need of student interns. Student Social Entrepreneurs (undergraduate market-entry report. The course is also linked to the students). Another student group, the CEI One of the most comprehensive graduate- opportunity of a week-long international immersive • The Venture Analysis, MSE Mentoring Program Ambassadors student organization, is charged level entrepreneurship offering is the Thomas study tour. The Global Entrepreneurship Study is a 16-week program that connects new with promoting CEI activities, entrepreneurship, S. Johnson Entrepreneurship Master’s Program Program has sent students to Chile, Ireland, and MSE students with mentors in respective and innovation beyond the business school to (MSE), a one-year experiential curriculum, with elsewhere in the EU. Students interested in social areas such as small businesses, high-growth students and faculty campus-wide. The ambassadors a focus on ethics and international entrepreneur- entrepreneurship may instead participate in the enterprises, socially-responsible companies, participate in and organize speaking events, ship. The MSE requirements include: core Sustainability Study Program offered in Costa Rica, and the investment community. Mentors peer-to-peer mentoring and learning workshops, business courses in accounting, economics, which has a deliberate national strategy of balancing support students via one-on-one advisement, and social activities (BBQ, bowling, dinners, etc.). finance, marketing, and entrepreneurship; a business competitiveness and considerations networking activities, and organized panel They also conduct a semester project, including selection of entrepreneurship courses (Creativity, of humane labor practices and protecting the discussions (for example on ethical challenges the annual Technology Entertainment and Design Entrepreneurship, Entrepreneurial Selling, The biologically diverse natural environment. The trips 118 119 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Florida

(TEDx) program, which is a one day event to perfectly with the department and college structure programs and research emphases. In addition, • Particle Engineering Research Center (PERC) showcase the “best of Gainesville” startup scene, of the university, and thus enable interdisci- not all of the short-listed centers or institutes are • Powell Center for Construction from engineering and science to music and art. plinary research, service and engagement. equally active in terms of sponsored research or in and Environment Particularly noteworthy, for our purposes here, terms of industry connectivity. In fact, looking at Centers and Institutes. As per data from is the Ambassadors’ stated mission to “transcend the FY2011 NSF research expenditures for UF, • Public Utility Research Center the silos of UF, synergizing the entrepreneurial UF there are 183 “officially recognized” centers industry sponsored research accounts for 3.1% of efforts of students from different areas of campus and 31 institutes. UF also has well-established the total which is below the national average, From the perspective of Innovation U it is while exponentially increasing their network.” rules and procedures on what a center or institute useful to look at the different centers and institutes can or cannot do, and how one attains and Another list from the VP for Research from the perspective of funding and stakeholders, UF Students also are invited to participate maintains that status. In order to help internal identifies major research centers with active such as the mix of private sector versus public in the CEI-sponsored and campus-based Young and external potential partners sort through this faculty/industry research collaboration, although agency funding and possible implications for Entrepreneurs for Leadership and Sustainability large menu, the UF Office of Research provides not necessarily industry financial support. That commercialization of products/processes. Summer Program. Now in its sixth year, the information about the scope and mission of the seems to vary widely, with several of these centers summer program offers full and partial scholarships larger or more important centers and institutes. working with but not funded by companies. For example, UF has several centers that are to 40 college-bound high school students who participants in the National Science Foundation • Center of Excellence for Regenerative would otherwise be unable to afford an on-campus For example, the following have campus-wide (NSF) Industry-University Cooperative Research Health Biotechnology (CERHB) leadership development experience. For five missions and a reporting relationship to the Centers (IUCRC) program, or the NSF VP for Research: weeks each summer, the students learn about • Center for International Business Engineering Research Center (ERC) program. Both programs demand extensive industry entrepreneurship and social entrepreneurship, • Center for Smell and Taste Education and Research become inspired to solve social problems, and involvement; in the IUCRC program companies practice sustainability. In the summer of 2012, • Center of Excellence for Regenerative • Center for Particulate and (in a consortium arrangement) also supply the program was expanded to other Gainesville Health Biotechnology (CERHB) Surfactant Systems (CPaSS) the majority of project funding. Consider area high school students, who were placed the following UF NSF-related centers: as volunteers in local nonprofits and service • Clinical and Translational • Clinical and Translational organizations, where they learned about leadership Science Institute (CTSI) Science Institute (CTSI) • The Advanced Space Technologies Research and Engineering Center (ASTREC) has been an and sustainability while working 100 community • Emerging Pathogens Institute (EPI) • Florida Center for Renewable service hours. The program is co-sponsored by IUCRC program since 2008 with nine Chemicals and Fuels partner companies. two local nonprofits and private donations. • Florida Climate Institute • Florida Energy Systems Consortium (FESC) • Boundary Spanning: • Florida Energy Systems Consortium The Cloud and Autonomic Computing Center (CAC) has been an IUCRC program since 2008, University, Industry and Community • Interdisciplinary Center for • Interdisciplinary Center for Biotechnology Research (ICBR) in collaboration with 6 major companies as well There are many ways in which universities Biotechnology Research (ICBR) as researchers from Mississippi State University, engage business, industry and the community. • Hinkley Center for Solid and University of Arizona, and Rutgers University. • Nanoscience Institute for Medical and Outside of the rich linkages involved in the Hazardous Waste Management Engineering Technology (NIMET) • The Center for High-Performance Reconfigurable educational mission, there are also opportunities • NSF Center for High-Performance Computing Center (CHREC) has been an for boundary spanning in terms of research and • UF Genetics Institute (UFGI) Reconfigurable Computing (CHREC) IUCRC since 2006, in collaboration with service. Often these activities are conducted via Brigham Young University, George Washington centers and institutes. Centers and institutes are As can be seen this short list reflects the life • NSF Cloud and Autonomic University, and Virginia Tech University, organizational entities that typically do not match sciences strengths of UF in terms of instructional Computing Center (CAC) 120 121 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Florida

plus 30 industry and government partners. • The Florida Center for Renewable Chemicals its grand opening in January 2012, and is home to span the life science disciplines and at various stages and Fuels is supported primarily by grants and the UF Office of Technology Licensing (OTL) and of business development. It has launched a number • The Center for Advanced Forestry Systems contracts from several federal agencies (NIH, UF Tech Connect, dozens of startup companies, of companies, many of which are now part of the (CAFS) has 9 university partners and DOE, DOD, NSF, USDA, NASA) as well as laboratories, and a variety of ancillary services. expanding life science cluster in the region. As several industry participants. private sector entities in the alternative fuels area. Rent for offices started at $230, lab space at $575. the pace of regional growth in housing and office This will be a space where companies grow, deals space continues, the distance between the Sid • The Center for Particulate and Surfactant • The Florida Energy Consortium enables are brokered, and UF students and faculty can Martin facility and greater Gainesville diminishes. Systems (CPASS) was launched in 2008 in cooperative R&D among state-based universities have a larger venue to practice entrepreneurship. collaboration with Columbia University and other entities in the area of energy systems. The OTL also participates in BioFlorida which is with over 25 member companies. This is a great example of the mission and cultural merging of the community and the university. a not-for-profit organization that is predominately • The Interdisciplinary Center for Biotechnology • a bioscience industry association that has grown The Particle Engineering Research Center (PERC) Research (ICBR) is in effect an internal contract was launched as an Engineering Research The development of the Innovation Hub in prominence over the last decade, as Florida lab that provides over 250 types of services also has been conducted in concert with a much has become a national leader in that domain. Its Center in 1994, “graduated” from the program for UF faculty and staff in DNA sequencing, in 2005, but has continued as a very viable larger UF/Gainesville initiative: Innovation activities focus on workshops, conferences, and genomics, proteomics, mass spectrometry, and Square. This is a novel urban redevelopment effort fostering connectivity among companies, investors research center with 40 participating (financially several other areas. It also works with other and substantively) company members. focused on 12 underutilized square blocks in the and the university research community. David Day research partners across the state and nation. city of Gainesville that includes the Innovation is now Vice-Chair of the Board of Directors, as • Hub. The project received the 2012 Donald E. well as serving on the Florida Research Consortium The Center for Nanostructured Electronic • The Hinkley Center for Solid and Hazardous was launched in 2011 as Hunter American Planning Association award for board, the Innovation Gainesville board as well Materials (CNEN) Waste Management is funded by the an NSF Center for Chemical Innovation. Florida Department of Environmental Excellence in Economic Development Planning. as working closely with the Florida Chamber of The vision is an urban research and development Commerce on the 2030 plan. These are examples of There are other notable examples on the VP Protections, and explores new practices and technologies in this area. district that addresses the issue of “where do the “lateral” connections that strengthen the university’s for Research list that utilize third party, primarily graduates of the Innovation Hub incubator go after activities in both culture building and leadership. public sector, funds to enable technology • The Powell Center for Construction they get technically and business viable?” Answer: innovation, development and commercialization: and Environment is primarily focused they move across the street or down the block Boundary Spanning: on sustainable policies, principles and into more business-appropriate space. In 2013 an • The Center of Excellence for Regenerative Technology Transfer practices in the built environment. event billed as A Celebration of Innovation 2013 Health Biotechnology is mostly supported In a little over 10 years the University of Florida Technology Showcase was held to spotlight the by federal and state funds, as well as the has dramatically increased the scope and success • The Public Utility Research Center conducts progress and accomplishments of OTL and startup University, and plays an important role in of its Office of Technology Licensing (OTL). As research, training and policy analysis in companies associated with UF and Gainesville. translational research, drug development the area of public utilities and services. per FY2012 and earlier data from the Association services, training, and the improvement of It should be noted that the Innovation Hub of University Technology Managers8 the picture biopharmaceutical manufacturing practices. Community Partnerships. An important is not the only or first UF-related incubator. In is one of increasing excellence. For example, the Its impacts are regional and national. community asset has been the Innovation 1995 the Sid Martin Biotechnology Incubator was number of technology licenses and options in Hub, located in Gainesville, and developed as a opened for business in the Progress Corporate Park FY2000 was 23, in FY2010 it had climbed to 92 • The Clinical and Translational Science partnership between the city and the University in Alachua, twenty miles from the UF campus. It and in FY2012 it was 101. Moreover, the rate Institute is supported significantly by NIH (http://floridainnovationhub.ufl.edu/). One of innovation, which seeds the whole licensing grant monies and is focused primarily on has specialized facilities that include 40,000 square way to capture the mission and services of the process, and for which the pace of invention enhancing the development of new therapies, feet of lab/office space, a fermentation facility, a Innovation Hub is to think of it as a supercharged disclosures by faculty members is a good proxy, including field-testing and field trials. small animal facility, a large animal facility, and a business incubator. The $13.2 million facility had climate-controlled greenhouse. Resident companies had climbed to one for every $2.1 million of

122 123 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Florida

NSF-reported research expenditures in FY2012. some overlap with the faculty one, plus additional involves connecting (or reconnecting) successful that UF has not been involved in these activities to Most university “batting averages” on this metric choices. For example, the Industry and Investors/ technology entrepreneurs in the community the extent and duration as some other cases in this are much poorer. The UF technology transfer Entrepreneurs sub-menu enables the user to do a with emerging opportunities. For example, volume. The next few years will be an important operation has a high rate of patent applications, search of available inventions, using very customer- Jamie Grooms had founded Regeneration period for UF to build on its accomplishments to enviable levels of overall license income, plus friendly tools. In addition, there are links to a Technologies based on UF technology, and date and become even more a national exemplar. 15 startup companies realized in FY2012. wide range of organizations and services, local realized a very lucrative public offering return, as and national that have positive relevance to the did the university based on stock that they held There are several factors that account for these technology transfer process. Much of this is via Grooms. The returns enabled UF to build Endnotes successes. For one, UF has been smart about staffing “culture-building,” such as clips about thriving a new orthopedic building and support new its office. The UF Office of Technology Licensing startup companies that derive from UF innovations. lab facilities. David Day was able to convince 1 Britain gained control of Florida in 1763, (OTL) had a ratio of research expenditures (in Grooms to invest in the creation of another new in a trade for Cuba after the Seven Years war, millions) to professional staff of $37 million to For example, working in tandem with the university related company, Axo Gen Inc. but Spain regained control in 1784 as an one. That relatively rich staffing level compares OTL is an EDA University Center—UF Tech aftermath of their support of the American favorably to the majority of institutions, including Connect—that operates out of the Office of With its database of successful entrepreneurs Revolution and the peace treaty. all of the schools in this study sample save one. Technology Licensing and features news squibs and venture investors, the OTL has been at the OTL also benefits from a very amiable and and links about business events that concern the center of efforts to match scientists with community 2 National Science Foundation, National supportive relationship with the office of the Vice technology transfer outcomes of OTL. Looking partners. Grooms eventually became CEO in Center for Science and Engineering Statistics, President for Research. As OTL Director David at the invention disclosures and deals enabled 2012 of the Institute for Commercialization of FY2011. Table 14. Higher education R&D Day comments: “Win Phillips is equivalent to the by OTL there has been a growing dominance Public Research, a non-profit organization with a expenditures, ranked by all R&D expenditures, RAF in World War II for me; provides air cover.” in the life sciences, particularly biomedical. A statewide mandate to connect university technology by source of funds: FY2011. Table 15. Higher recent perusal of the Available Technologies and inventors with investors and successful education R&D expenditures, ranked by all However, UF excellence in this area is only partly pages yielded over 150 inventions in the human entrepreneurs to orchestrate these partnerships. R&D expenditures, by R&D field: FY2011. a simple function of staffing ratio and administrative biomedical area, far and away the largest category. support. The OTL is imaginatively led, and invol- Summary and Parting Comments 3 David Day was hired in 2001 to head the ved in a wide range of campus and community Many universities would relish telling a technology transfer function at UF. By 2006 Over the last decade the University of Florida activities that seed the flow of inventions as well as story comparable to the one sketched in thus far the University of Florida was ranked 5th in has established a remarkable record of not only ease the process of getting deals done. about technology transfer at UF. However, UF a national empirical study of the effective of being a great university in terms of traditional through OTL, has significantly extended itself university technology offices: DeVol, R, and The OTL website (www.research.ufl.edu/otl/) metrics, but also a great university that is doing into a much wider array of services, facilities and Bedroussian, A. (2006). Mind to Market: A is informative, easy to navigate and is organized very well in fostering technological innovation. partnerships that are community based. Perhaps Global Analysis of University Biotechnology Transfer into “stakeholder” groups: UF Inventors; Investors Moreover it has commendable programs that span most important for OTL’s success has been the and Commercialization. Milken Institute. and Entrepreneurs; Industry. Each stakeholder culture and practices of the office. Getting out the traditional university functions of instruction, group has sub-menus, although all benefit from a of the office and into the labs and community are research, and community service, but also has 4 Dr. Phillips had participated in Southern Growth very professional background video featuring the an expectation of staff and a perquisite of success. become a place that is involved in doing technologi- Policies Board and Southern Technology Council Office Director, David Day. The sub-menu for Moreover, as ancillary community programs cal innovation in novel and impactful ways. As a during the 1990s and was aware of the NSF-funded faculty inventors, has information on: Working expand so also do the activities of OTL staff. very large university in terms of student head count research that led to Innovation U. in 2002. with OTL; Reporting a New Discovery: IP and the scope of its research, there are many parts 5 Policies; Patents, Copyrights and Trademarks; The OTL has become much more aggressive of the university that seem relatively untouched Machen, B. (2007, May 18). Florida Tomorrow and Faculty/Student Entrepreneurs; plus a link to at using startups as the preferred approach to by the initiatives and culture of innovation and the Value of Volunteering. Retrieved from http:// UF Tech Connect. The other sub-menus have commercializing UF inventions. Part of this entrepreneurship. That is to be expected given president.ufl.edu/initiatives/florida-tomorrow/

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6 University of Florida Foundation. Numbers. Retrieved from http://www.floridatomorrow.ufl .edu/numbers.html

7 Phillips is now Senior Vice President and Chief Operating Officer. Georgia Institute of Technology* 8 Association of University Technology Managers. (2013). AUTM U.S. Licensing Activity Survey: FY2012. Deerfield, IL: Association of University Technology Managers. The precursor to what is now known as the Although Harris and his committee had the Georgia Institute of Technology (Georgia Tech) model pretty much nailed by 1883, it took until was legislatively authorized in 1885 although it 1885 to pass a bill that authorized its founding, did not open its doors until 1888 as the Georgia plus a $65,000 appropriation from the state School of Technology, with 129 students originally legislature to build the original facilities as well enrolled. Two former officers in the Confederate as provide ongoing operating funds. After some army—John Fletcher Hanson and Nathaniel Edwin political wrangling the location was set in Atlanta, Harris—were the champions of the idea to create and the Georgia School of Technology was open a school that would enable the growth of a “New for business in the fall of 1888, with a “shop South” replacing the agrarian, slavery-enabled building” and an academic building side-by-side. economy that had been the social and economic model for generations. Harris was elected to the Over the next 50-75 years what was to become state legislature in 1882 and ended up leading a today’s Georgia Tech sorted out its curricular committee to develop an approach to technical- options and mission, but continued to struggle based higher education. Interestingly, the to balance the practical issues of technology committee visited several institutions in the and classroom knowledge delivery. Thus in the North—the early MIT, Worcester Free School, 1890s and early 20th Century the Schools of Stevens Institute, and Cooper Union. The dilemma Mechanical Engineering, Civil Engineering, that the committee was addressing was whether Electrical Engineering, Chemical Engineering, a new school in Georgia would emphasize a Chemistry, and Textiles were established. But practical/hands-on approach to education (“shop enrollment was very low, with 500 students school”) or a more academic, classroom-based enrolled in 1905. A School of Commerce was approach. They ended up opting for both, and established in 1913, and notably for this chapter, this historical tidbit has in many ways defined in 1919 the state legislature authorized (but did the culture and development of what has become not fund) an Engineering Experiment Station Georgia Tech—a place that is both theory and (more on the EES later on). Post WW I student science-driven but also a place that has become enrollment reached 2,579 in 1921 (including night very good at fostering technological innovation, and summer school students). In 1924 a School applications, and knowledge-based enterprise. of Ceramics was established, and a year later the first Master of Science degrees were awarded.

126 * This case was written by Louis Tornatzky. INNOVATION U 2.0: New University Roles in a Knowledge Economy Georgia Institute of Technology

By the 1930s the university had begun to branch graduate engineering college, the #5 undergraduate Virtually every combination of industry As envisioned by our founders, Georgia out from its initial trade school orientation, expand- engineering college, the #1 industrial engineering relationships or economic development Tech will continue to be an economic ing in a number of substantive and programmatic program, #1 in bachelor’s engineering degrees to activity can be found at Georgia Tech, and driver for Atlanta, the state of Georgia, directions. A School of Aeronautics was formed, all minority students, #2 in bachelor’s engineering in a very real sense the school is an operating and the nation…we will create a culture and the Engineering Experiment Station (EES) degrees to African Americans, and #1 in doctoral partner with Georgia state government in where students and faculty are both opened for business in 1934, providing engineering engineering degrees to African Americans, Asian the implementation and management of scholars and entrepreneurs. assistance on a contract basis to the Federal Americans, and all minority students. Georgia a variety of technology-focused activities. government and Georgia industry, a mission that Tech also has 27 faculty who are members of In a section subtitled Vision the following: continues to this day in a new organizational the National Academy of Engineering, and is We think this is still true, and even more so. form. While enrollment growth was relatively among the top ten universities in the country Twelve years ago those goals and aspirations were Georgia Tech will define the technological stagnant during the depression years, and mostly in terms of faculty receipt of Presidential Early articulated by then President Wayne Clough; more research university of the 21st century. focused on military-related educational programs Career Awards in Science and Engineering. recently they have been extended and championed As a result, we will be leaders in influencing during World War II, such as Army and Navy by the current leadership. President G. P. “Bud” major technological, social and policy ROTC and the Navy V-12 program, the school Georgia Tech is in the top ranks of universities Peterson has been very aggressive and articulate in decisions that address critical global was poised for a much larger future. in the scope of its R&D activities. Thus in the developing a new Strategic Vision and Plan4 that challenges. ‘What does Georgia Tech think?’ 2 FY2011 National Science Foundation survey of has been an early centerpiece of his administra- will be a common question in research, During the mid to late 1940s a few other schools academic research and development, Georgia Tech tion. The goals and aspirations of that plan are business, the media and government. were added to the campus including Architecture, reported research expenditures of $655.4 million, consistent with the Georgia Tech history. From Industrial Management, and Social Sciences. which ranks 26th among all US universities and President Peterson’s introductory comments: From these introductory sections, the document As peace was breaking out in 1945-1948, the 17th among public universities. Georgia Tech goes on to articulate five major Goals and Strategies newly renamed Georgia Institute of Technology ranks in the top 3 among universities without a Invoking Georgia Tech’s motto of Progress to accomplish each. Goal 3, “Ensure That Inno- was ready to embark on an amazing 60-year sprint. medical school. Reflecting its acumen in industry and Service, we embrace the task of guiding vation, Entrepreneurship, and Public Service are This resulted in a steady growth in quantity and partnering and engineering R&D, of that total an the way the world changes for all our Fundamental Characteristics of our Graduates,” quality of undergraduate and graduate students, above-average 6.4% reflected business funding and constituents. As leaders, designers, and is particularly pertinent to this chapter, and three national and international prominence as a center 68.9% of all R&D funding was in the engineering innovators, our role is not only to solve strategies are articulated. In the introductory prose, of science and engineering education, and more sciences. In 2010 Georgia Tech was invited to problems, but also to shape our world. the section makes some important distinctions: germane to this chapter, a locus of technological join the Association of American Universities Invention transforms the world of ideas, innovation that was enabled by inspired leadership, (AAU), a significant institutional honor. Later on in the body of the plan, the plea is a supportive culture, and many novel programs made about the stance that Georgia Tech should but innovation transforms society by and initiatives. Georgia Tech went through an University Culture: take vis-à-vis the changing world: fundamentally changing established norms. expansion from a primarily engineering institution Goals and Aspirations ....Our campus culture needs to be one that to one that embraced the physical and behavioral As we look to our future, it is imperative supports innovation, entrepreneurship, and Technological innovation and economic sciences, computing, and much more. that we recognize that a great university public service just as it does teaching and impact are integral and critical components of the should not merely respond to changes research. In doing so, Georgia Tech becomes Before we detail those ingredients in subsequent mission of the Georgia Institute of Technology, and after the fact, but in reality must a leader among universities in innovation. sections of this chapter, it would be timely to this has been true from its very inception, along anticipate change and shape the future. summarize some of the rankings and ratings with its commitment to exemplary academics. Under Strategy 1 of Goal 3, “establish world- currently enjoyed by Georgia Tech. For example, As was summarized in the Georgia Tech entry In a section subtitled Economic Impact the class initiatives to serve Georgia Tech, the state, and U.S. News & World Report1 recently rated Georgia in the 2002 Innovation U book of cases:3 document goes on: other strategic national and international partners,” Tech the #7 public university in the country, the #4 the document calls for a bold change approach: 128 129 INNOVATION U 2.0: New University Roles in a Knowledge Economy Georgia Institute of Technology

In addition to classroom experiences, For solutions to the grand challenges facing A long list of other actions was suggested, at Palo Alto. Under his leadership Georgia Tech Georgia Tech will enable faculty and the human community today and for reflecting the fact that at the unit level things get dramatically increased research funding (exceeding student interaction in venues such as innovations to meet the needs of tomorrow. pretty specific and detailed. Nonetheless, the point $100M for the first time), saw a significant growth competitions, short courses, co-curricular of this section is to illustrate that Georgia Tech in the founding and success of research centers activities, and workshops aimed at fostering The most pertinent section of the COE plan takes its innovation mission seriously, and has and institutes, became much more involved in a culture of innovation and encouraging for this chapter is under Objective 3, “ensure done so for a long time. technology initiatives that involved an entrepreneur- student creativity and entrepreneurship. that innovation, entrepreneurship, and public ship approach, and saw growing expertise and service are fundamental characteristics of our Leadership results in technology transfer activities. Thus Under Strategy 2 of Goal 3, “innovate in graduates.” It goes on to identify pertinent Goals in 1981, the Engineering Extension Service As suggested above, the die was cast for Georgia how we incentivize and support commercializa- that the COE must accomplish, including: expanded to include one of the first technology Tech evolving into a center of technological inno- tion,” the document advances some future steps: business incubators, the Advanced Technology vation during World War II, when the Engineering • Incorporate aspects of innovation, Development Center (ATDC). In 1984, the Experiment Station had developed a fairly robust Activities that advance Georgia Tech’s entrepreneurship, and public service into Engineering Experiment Station was renamed the body of contract research to support the war effort. reputation in innovation and entrepre- the COE’s core academic mission. Georgia Tech Research Institute (GTRI), reflecting However, the university was blessed in recent neurial leadership will play a role in the its growth and expansion. The ATDC and other • Emphasize research that leads to decades by two visionary long-term leaders that review, promotion, and tenure process. elements were moved out of GTRI to form what is commercialization. ensuredd that the promise would become reality. ..Including flexible work status, leaves now the Enterprise Innovation Institute in 1995. They included: Joseph Pettit (1972-1986) and of absence to pursue entrepreneurial Moreover, what Strategies might be deployed, Wayne Clough (1994-2008). Together their interests, and sabbaticals with companies including: Wayne Clough. Dr. Clough was the first that are partnering with Georgia Tech leadership encompassed 28 years out of the last Georgia Tech graduate to become President of on intellectual property development. • Establish core intellectual activities for four decades. During that period Georgia Tech the university. Growing up in Georgia, he went innovation, entrepreneurship, and public became the innovation colossus that it is now. on to earn a bachelors and masters degree in Civil The above citations from the presidential-led service in grand challenge application areas. Current President Peterson, who is also expanding Engineering, and a doctorate at UC Berkeley. 2010 Strategic Vision and Plan are illustrative of the scope of Georgia Tech innovation activities, Interestingly, Dr. Clough was also steeped in the the campus-wide culture and goals. However, • Form a COE committee to vet invention followed them. entrepreneurial/innovation culture of Stanford, it is also useful to look at a follow-on strategic disclosures for Office of Technology Licensing. as was Joe Pettit. After a five-year stint as an Joseph Pettit. President Pettit came to Georgia planning5 document that has emerged from the Assistant Professor at Duke, he returned to the • Ensure that incentives for innovation, Tech with as ideal a learning experience one could Georgia Tech College of Engineering (COE). As Bay area as an Associate Professor at Stanford, entrepreneurship, and public service are properly have if the objective was to lead the institution to the largest and arguably most influential college getting promoted to a Full Professor and staying aligned with the promotion and tenure process. a new plateau in research, innovation, and culture on campus, it has much to say. The structure eight years (1974-1982). This was during the early change. He was at Stanford for 25 years, from generally follows that of the 2010 university-wide • blossoming of Silicon Valley and the many roles Support student design competitions that promote 1947 to 1972, and Dean of Engineering from 1958 plan, and there are several elements that comment played by Stanford therein. And the evidence entrepreneurship, innovation, and public service. on. This was during the period in which Wallace and expand upon the issues of innovation, is strong that his leadership at Georgia Tech Sterling and Frederick Terman were inventing a new entrepreneurship and external engagement. • Increase the number of internal awards focused on embraced many of the similar goals and practices. innovation, entrepreneurship, and public service. model of that institution, and Pettit was a significant Under a Vision section, the COE document participant. What they accomplished is described in During his tenure, Georgia Tech research opines that it will be globally recognized as the • Establish venues to connect faculty/students detail in the Stanford case in this volume. However, expenditures doubled and the university became a preferred institution: with venture capital firms and angel investors. it is safe to assume that the leadership initiatives model of technology transfer success. The Millken undertaken by Dr. Pettit at Georgia Tech were Institute ranked Georgia Tech 11th nationally for influenced by the experiences and lessons learned technology transfer performance. It was a strong

130 131 INNOVATION U 2.0: New University Roles in a Knowledge Economy Georgia Institute of Technology participant in the Georgia Research Alliance, the enterprise startup experience, as addressed by Management for Engineers; Principles of techniques and products. Students study along with its sister institutions in greater Atlanta. curricular and co-curricular programs operating Management; Technology Ventures); and with clinical practitioners, device designers, Student enrollment increased by 30% and there were mostly within the university or closely linked Sustainability with two courses (Business engineers, device manufacturers, and technology strong efforts to increase the quality of undergradu- thereto. Nonetheless, Georgia Tech has a long Sustainability Ethics; Special Topics-Business commercialization experts. The program ate instruction as well as student involvement in history of partnering with the private sector and the Environment). There is also a provides a bridge between the traditional research. Major physical enhancements to the including companies large and small, and among the Study Abroad opportunity in Budapest. disciplines of medical research and practice, campus were implemented, as were novel programs “small” enterprises some are truly new companies and the commercialization of biomedical In order to get the Graduate Certificate in to increase student financial support. Georgia while others are decades old but nonetheless products. Clinical team projects are conducted Entrepreneurship, a graduate student in engi- in a wide variety of Atlanta-based settings. Tech became even more of a model of a locally, engaged with the university in very creative ways. neering would be required to take Principles of nationally, and internationally engaged institution. Management for Engineers, and Technology • Curricular Programs. TI:GER (Technological Innovation: Generating Ventures, plus two courses from a long list of Economic Results). TI:GER teaches students “Bud” Peterson. Two relatively recent advanced courses in the Management Area. that the main hurdles to commercializing initiatives undertaken by Dr. Peterson in his There are various mixes of courses focusing more or less on entrepreneurship along with parallel foci research are seldom technology-related. three years as President are particularly relevant • Denning Technology and Management Program. on technological innovation. Given the history More often they involve legal issues and for this chapter. One is the new leadership and This is a 22 credit undergraduate minor program and substantive orientation of Georgia Tech that problems interfacing with the public and integrating role of the Enterprise Innovation within the Scheller College of Business that is should not be a surprise. The following is a good market. TI:GER takes an interdisciplinary Institute (discussed in the next section). Second offered to business majors as well as students sampling of what currently exists in this domain: approach to surmounting those obstacles, is the speed and scope of the new Strategic Plan from the college of engineering and the college assembling students who win acceptance into that reinforces the progress of the recent past and of computing. The structure of the curriculum • Institute for Leadership and Entrepreneurship the program into five-person teams. These sets new goals and directions. President Peterson includes required courses that are limited to (ILE). The ILE is located in the Scheller teams include two Georgia Tech MBA students either business, engineering or computing has also been very forthcoming in crediting the College of Business and was founded in 2006, and two Emory Law students who focus over students, as well as required courses where long line of previous Georgia Tech leaders who and in many ways represents the vision of a two-year period on the commercialization business students, engineering, and computing have added to the success of the institution. Terry C. Blum who was Dean of the Scheller of a Georgia Tech PhD student’s research. students work together. One of the major Upon joining the AAU in 2010 he noted: College until 2006. The mission is to “enhance TI:GER teams work together in the classroom goals of the Denning program is to create leadership and entrepreneurship for socially and the research lab to learn how to: It is truly a credit to those who have worked cross-functional leaders via the mixing process. responsible value creation.” In addition to so hard to make Georgia Tech the institution ▶▶ Advance early-stage research into an ambitious menu of course offerings, it it is today. In particular, President Emeritus • Georgia Tech Master of Biomedical Innovation real business opportunities; operates the IMPACT Speaker Series and This is a one-year Wayne Clough and former Georgia Tech and Development (BiolD). the Leadership Roundtable. Its courses are a program that is offered via the Wallace H. ▶▶ Comprehend the economic, regulatory Provost Jean-Lou Chameau6 played resource not only within the Scheller College Coulter Department of Biomedical Engineering, and legal mechanisms affecting a vital role in Georgia Tech achieving the venture-creation process; but also across the campus. A Leadership a novel joint department of Georgia Tech’s this wonderful accomplishment. Minor is offered as well as Certificates College of Engineering and the Emory ▶▶ Maximize the commercial potential of University School of Medicine. Between emergent research by considering market Boundary Spanning: (Graduate, MBA and Undergraduate) in Entrepreneurship. The courses tend to cluster the two partnering organizations, over 100 goals at an early stage of innovation; Entrepreneurship into three areas: Leadership with two courses academic and research faculty, plus post-docs, ▶▶ Understand how the potential market bring extensive expertise to the program. The In the last few years Georgia Tech has evolved (Impact Forum; Servant Leadership, Values and application of technology can influence focus of the yearlong masters experience is the a much more inclusive approach to programs Systems); Entrepreneurship with six courses research directions and priorities. (Social Entrepreneurship; Entrepreneurship “bench-to-bedside” progression that transforms oriented toward entrepreneurship. In most TI:GER students benefit from assigned Forum; Entrepreneurship; Principles of research into better and more practical universities these activities are mostly focused on business and legal mentors as well as meeting 132 133 INNOVATION U 2.0: New University Roles in a Knowledge Economy Georgia Institute of Technology

with industry representatives at biannual and extra-curricular programs, and are intermingled investment and created over 5,500 jobs. recognition, VentureLab was ranked 1st among advisory board meetings. The program has in the following several pages. So the programs early-phase university-linked programs. received funding from a variety of sources, include the following with interconnections noted: • Innovation Corps (I-Corps). Georgia Tech including the National Science Foundation, the was one of the two original I-Corps “nodes” • Georgia Tech Integrated Programs for Startups Alan and Mildred Peterson Foundation, the • Advanced Technology Development Center established by the National Science Foundation, (GT:IPS). Housed in the Georgia Tech Hal and John Smith Chair in Entrepreneurship, (ATDC). This program was founded in 1980 and the total at Georgia Tech is now five. The Research Corporation, this jointly supported and others. They also engage in consulting and is one of the oldest and one of the most I-Corps more generally is focused on identifying program offers training to Georgia Tech projects for startup companies associated with acclaimed business incubators in the country, product opportunities deriving from academic inventors interested in commercializing or ATDC, a business incubator located at and Forbes magazine has argued that it is one science, along with entrepreneurship training to licensing university intellectual property for Georgia Tech. of the best in the world. The ATDC now has students, and thereby fostering the commercial- a startup. While offering some traditional three facilities serving somewhat different ization of NSF-supported science. Activities guidance, like formulating a business plan or Co-Curricular Programs and constituencies. Its headquarters facility is focus on input from experienced entrepreneurs pitching an opportunity, this program largely Extra-Curricular Programs located in Atlanta’s Technology Square and and investors. The I-Corps national program focuses on navigating unique challenges an serves as a hub for incubation activities more has also been supported by the Ewing Marion academic entrepreneur faces in establishing The Enterprise Innovation Institute, or EI2, is generally across the Atlanta metro area and Kauffman Foundation and the Deshpande a new company. Courses such as how to headed by a Vice President with deep experience across the state, with also strong linkages to Foundation. appropriately access campus resources, and in technology commercialization and venture later stage ventures emerging from the Georgia effective management of conflict of interest, are investing. It has ten Directors and two other Tech campus. The ATDC Biosciences Services • VentureLab. This is a campus-based program taught by experts in the field. Upon completion senior staff personnel carrying out the significant facility is located in the Ford Environmental that primarily focuses on emerging technologi- of the program, participants may enter into a management responsibilities of the fourteen Science and Technology building on campus cal innovation that derives from Georgia Tech well-vetted facilitated license with the Office of programs that come under the Institute purview. and caters to ventures in the biomedical and sponsored research. As such, the participants are Industry Engagement that has been developed The programs are quite diverse in terms of clients biological sciences. A third facility, ATDC typically faculty members, graduate students, or to streamline the negotiation process. or participants, physical and organizational Savannah, provides a physical location for research staff who are very early in the process location, and collectively they encompass a startups in coastal Georgia, and assists with of developing a business concept. Thus NSF • AMAC (Accessibility Solutions). The University continuum that extends from early technology statewide outreach and services to entrepreneurs Innovation Corps (I-Corps) funds and program System of Georgia established this organization and venture development to established firms in art and design. ATDC programs in services are administered primarily through in 2006 with a mission to develop technologies, with significant history. These programs leverage each location typically include a mix of the Venture Lab. So too is a 6-week activity called technical systems, and training programs to a mix of state, Federal and private sector funding following: educational programs; mentorship Startup Gauntlet which involves field-testing enable organizations to accommodate the special to enhance economic development in the state of via entrepreneurs-in-residence; linkages to angel of business models/customer problems by needs of disabled workers. To accomplish Georgia. Conceptually, the programs and clients investors and large partner companies; facility actually talking with real people. VentureLab this goal AMAC develops new approaches are all united by the emphases on innovation and rentals, office space, and wet lab space; startup also has links to Georgia Research Alliance to materials such as textbooks and manuals, entrepreneurship, and the structure enables program circles, composed of smaller groups of client Venture Fund support for emerging enterpris- real-time captioning, assistive technologies, leadership to share best practices and policies across companies organized around focus areas or es. Finally, GT:IPS (described above) is a key and worker accessibility. AMAC works the heterogeneous mix. Among the cases in this geography; SBIR grant assistance; co-working component of VentureLab that is also joined with universities, educators, corporations, volume this is probably the most novel organization- relationships; and brokering expertise in the to the technology transfer function of Georgia and government entities. It is in effect doing al solution to the inherent diversity of activities that University and across the community. ATDC Tech. Recently, VentureLab was ranked 2nd innovation that serves larger social goals. fall under the labels of innovation and entrepreneur- works with over 300 companies annually and in the world in a benchmarking comparison ship, and one that seems to have enough authority conducted by UBI Index, a Stockholm-based • The Contracting Education Academy. This has been instrumental in launching over 150 organization was launched in 2011 to provide to give it a fair trial. As structured, EI2 has ventures that have attracted $2.5 billion in organization that works with incubation responsibilities that encompass both co-curricular programs. In addition to the overall 2nd place professional education on the how and why of

134 135 INNOVATION U 2.0: New University Roles in a Knowledge Economy Georgia Institute of Technology

contracting and subcontracting, particularly the initial 30 participants are still in business, of this organization within EI2 is to develop, clients overseas—in fostering technology-based with state and federal agencies. The Academy and participants in the first cohort have landed disseminate, and implement healthcare-focused economic growth and entrepreneurship. delivers best practices in government jointly more than $8 million in investor funding. information technologies. It works with practi- Top emphases include incubation practices, acquisition and strategic sourcing. As a tioners, hospitals, healthcare providers, and faculty startup programs, commercialization Defense Acquisition equivalency provider, • Georgia Manufacturing Extension Partnership health-related IT companies. It is supported by research, feasibility studies, strategic planning, the Academy’s course work satisfies both the (GaMEP). The Manufacturing Extension federal programs and initiatives, Georgia-based policy research, and organizational development. FAC-C and DAWIA certification programs. Partnership has been a program of the National government, and private entities including The Academy helps private entities of all sizes Institute of Standards and Technology (NIST) startups and early stage companies. • InVenture Prize. The InVenture Prize at that are engaged in government contracting. for 16 years, and the Georgia program has Georgia Tech is a faculty-led innovation been in operation for over five decades, with • Minority Business Development Agency competition for undergraduate students. • Energy Management and Technology. This nine offices around the state. Services include (MBDA) Business Center-Atlanta. As noted Students can work independently or in teams program is engaged in projects that are staffed by coaching and training that focus on process elsewhere in this chapter, Georgia Tech has to develop and present inventions that will faculty and staff from across the Georgia Tech improvement, ISO standards, sustainable had significant success in recruiting and be judged by experts. The students introduce community. The goal is to enhance efficiencies manufacturing processes, and energy efficiencies graduating minority students as well as their inventions in preliminary rounds and in energy production and use, across the in manufacturing and innovation management. engaging the minority communities of greater eventually the competition is whittled down economy. Thus activities range widely in kind In the last year GaMEP worked with 1,770 Atlanta. This program works with existing to approximately eight. They advance to a final (e.g., developing and implementing standards small and medium-sized manufacturers, with minority business enterprises (MBEs) in metro round which is televised live by Georgia Public for new energy technologies), and target large significant impacts on cost savings, increased Atlanta, via a training/technical assistance Broadcasting. Final round prizes include: corporations to startups. Current initiatives sales, and jobs created or retained. Most MEP model, to increase their likelihood of success. include: smart grid; bioenergy/biofuels; solar, program activities are not extensively linked The activities cover issues such as access to ▶▶ A cash prize of $20,000 for 1st place wind and water alternatives; and various to that part of the Institute mandate that capital and finance management, access to or $10,000 for second place; strategic analyses. A major objective of Energy focuses on start-up ventures, but there have markets, business strategy, business process ▶▶ A free US patent filing by Georgia Management and Technology is to provide been some novel exceptions. For example, improvement (e.g., ISO-9000), and business Tech’s Office of Technology Licensing; focused expertise on energy-related issues as the GaMEP staff provides direct assistance to model assessment. The MBDA-Business ▶▶ A People’s Choice Award of $5,000 they pertain to other programs of the Institute. startups in SBIR proposal development and Center Atlanta has helped create over 3,700 selected by text voting during the event; manufacturing startup plans. The GaMEP jobs and contributed to obtaining finance, ▶▶ The winner(s) of the InVenture Prize • Flashpoint. Launched in 2010, Flashpoint also funds a start-up mentor within the contracts and sales of $600 million. will automatically be accepted to the is an intense, 4 months long accelerator ATDC incubator for product-based firms. experience for a competitively selected group • Southeastern Trade Adjustment Assistance Summer Class of Flashpoint, a Georgia of 12 startups. Participants get access to and • Georgia Tech Procurement Assistance Center Center (SETAAC). This center is part of a Tech startup accelerator program. advice from mentors, subject matter experts, (GTPAC). This program component is focused national network of 11 centers that provides Looking across the various programs managed and experienced investors. This includes a on enabling Georgia-based companies— financial assistance of up to $75,000 to and led through the Enterprise Innovation weekly cohort dinner with startup founders large or small—to win government contract companies within a nine state region that have Institute the outcome accomplishments have been from around the country, as well as ad hoc competitions at federal, state, and local levels. experienced economic decline in sales and notable. During Fiscal Year 2012 the Institute: engagements. Participant startups are drawn In a recent program year GTPAC worked employment as a result of import competition. from across the state, with a strong preference with 2,900 companies, conducted 150 • Evaluated 199 research-based innovations for technology-focused endeavors. Each training seminars, and helped participants • Startup Ecosystems. This program assists and helped form 30 new companies that in Flashpoint cohort concludes with “investor win $559 million in contracts. communities, governments, universities, turn attracted $21 million in investment; demo days” in Atlanta, New York City and the entrepreneurs, and small business—most • Helped 261 companies interested in collabora- San Francisco Bay area. Thus far, over 90% of • Health IT Outreach Partnership. The mission outside of the Atlanta metro area, including 136 137 INNOVATION U 2.0: New University Roles in a Knowledge Economy Georgia Institute of Technology

tion with Georgia, yielding over $1 billion research contracting in a timely and efficient University, Georgia Health Sciences University, and 1946-1947 time frame. The Georgia Tech Research in investment and saving 3,342 jobs; manner, GTRC also assists the University in Clark Atlanta University). The primary program Corporation (GTRC) became the contracting start-up costs for new faculty hires, appropriates strategy has been to support senior faculty hires entity for Georgia Tech, and the EES became • Helped 322 startup companies develop funds for purchase or lease of research facilities and outfit them with state-of-the-art laboratory the Georgia Tech Research Institute (GTRI), Small Business Innovation Research and equipment, handles travel advances and facilities and equipment. Over the years, 60 Georgia the applied research entity to serve industry and proposals, leading to $7 million in awards; reimbursement for faculty expenses, addresses Research Alliance Eminent Scholar Chairs have government clients, particularly in the defense area. compliance issues with State or Federal agencies, been endowed across the six member universities • Assisted 85 minority entrepreneurs, who As GTRI grew and evolved it became the and more germane for this chapter, obtains patents of the Alliance, and over 150 companies have been realized over $77 million in new contracts, “part-of-but-separate-from” Georgia Tech. It has on Georgia Tech inventions and serves as the launched. Since 1990 the GRA has raised $525 increased sales, new bonding or new financing; a full time staff of scientists and engineers who entity for licensing of intellectual property. million in state funds, and leveraged it into $2.6 are not members of academic departments or • Served 1,370 manufacturing companies billion of federal funding and private investment. units of Georgia Tech. The total head count as in Georgia reduce operating costs by Within the Georgia Tech Research Corporation, The Georgia Research Alliance also funds a of June 2012 was 1,642 staff, of which 799 were $38 million, increase sales by $451 the Office of Industry Engagement is responsible commercialization grants and loans program to full time scientists and engineers. Of the latter, million, and create or save 978 jobs; for negotiating sponsored research agreements assist university researchers in translational research with industry. In addition to more traditional for turning inventions into startup companies. An 72 percent hold advanced degrees, and many have • Assisted 3,056 students via technology accessi- contract vehicles, GTRC offers a suite of agreements affiliated venture capital fund, the GRA Venture joint appointments with Georgia Tech academic bility services, and saved the University System (referred to as the Contract Continuum) that Fund, can make follow-on equity investments, either departments. In addition, Georgia Tech faculty of Georgia $1.4 million by reusing textbooks allows researchers to engage with industry across a solo or in syndication with other venture firms. members and students (over 350 annually) are converted for students with disabilities. spectrum of research opportunities. By providing often deployed on projects on a part-time basis. potential sponsors with appropriate intellectual Georgia Tech Research Institute. Continuing So the links between GTRI and the academic Boundary Spanning: property access for the contemplated research, the historical narrative that started on the first units of Georgia Tech are indeed strong. GTRI University, Industry and Community the negotiation process has been streamlined and page of this case, the Engineering Experiment had $248 million of research revenue in FY2011, the transfer of technology has been facilitated. Station (EES) that was established in 1934 with Federal agencies accounting for over 90% In addition to EI2 there are several slowly gained momentum during the WW II of that total. The U.S. Air Force accounted for organizations and programs that enable what has Georgia Research Alliance. A major contribut- years as a problem-solving practical-oriented 31% of grants and contract income in FY2011. been for Georgia Tech an ongoing and robust ing factor to Georgia Tech’s excellence in industry R&D facility. While much of its work in the presence in the world outside the gates. This research partnerships has been the presence of the 1930s was agriculture-related, the wartime GTRI’s applied research program complements section will highlight several of those enabling Georgia Research Alliance (GRA). While not an growth of projects moved into helicopter the main foci of the campus academic research organizations, programs, and services. While the organization of the University, it is a very important research, radar, and defense-related electronics, and instruction program, as well as the needs discussion of the Enterprise Innovation Institute partner of Georgia Tech, as well as other research with the majority of its projects funded by of its major clients, and is organized into eight in the previous section was likewise all about universities in the state. Founded in 1990, the government and industry. In a way, the rise of laboratories: Advanced Concepts Laboratory; externally focused activities, most of those were GRA is a 501c3 that makes strategic investments— the Engineering Experiment Station (EES) was Aerospace, Transportation and Advanced Systems; “entrepreneurial” in focus, and the ones below in people and facilities—in order to build centers an instantiation of the shop skills plus academics Applied System Laboratory; Cyber Technology for the most part are administrative-enabling. of research excellence in Georgia universities. vision that characterized the original conceptual- and Information Security Laboratory; Electronics GRA also fosters research partnerships among ization of the university in the 19th century. Systems Laboratory; Electro-Optical Systems Georgia Tech Research Corporation (GTRC). the participating institutions. Research foci have Laboratory; Information and Communications Originally chartered in 1937 as the Industrial tended to be concentrated in a small number of After World War II, Georgia government Laboratory; and the Sensors and Electromagnetic Development council, a not-for-profit organization, strategic areas, that also reflect key areas of expertise wanted to protect itself from being the contract- Applications Laboratory. In addition to the the GTRC serves as a supporting organization among the participating universities (Georgia liable organization for research at Georgia Tech, Atlanta-based facilities and organizations, GTRI for Georgia Tech. In addition to handling Tech, University of Georgia, Emory, Georgia State and two important changes occurred during the has over a dozen smaller business and research 138 139 INNOVATION U 2.0: New University Roles in a Knowledge Economy Georgia Institute of Technology service facilities scattered around the country, Many of the most visible and more broadly NSF Engineering Research Centers, the ERC for Square can access the main campus via a pedestrian mostly contiguous with military operation- interdisciplinary centers have a reporting Compact and Efficient Fluid Power (with two plaza bridge. Georgia Tech buildings located there al or technical centers around the US. GTRI relationship directly to the Executive Vice other schools) is at Georgia Tech. Among NSF include: the College of Management, notably the also operates an applied research facility in President of Research and are designated as Science and Technology Centers, Georgia Tech Ferris-Goldsmith Trading Floor; the Advanced Ireland, as part of Georgia Tech partnerships Interdisciplinary Research Institutes. There are ten is a participant in the following: the Center for Technology Development Center; Venture Lab; with the University of Limerick and the in this category, and they tend to have many more Emergent Behaviors of Integrated Cellular Systems the Technology Square Research Building, that National University of Ireland, Galway. faculty, graduate students, and industry partners (with several other schools); and the Center for is home to five research centers with 500 faculty involved, as well as links to external agencies and Materials and Devices for Information Technology members and students; and the Georgia Tech Hotel Supplementing the organizational structure other universities. Thus the Institute for People Research (with several schools). These involvements and Conference Center. Technology Square also of the Laboratories are 25 physical facilities and and Technology involves several dozen faculty put Georgia Tech in fairly exclusive company among houses extensive retailing, restaurants, condomini- capacities that are very interdisciplinary in nature. members and researchers, with approximately the institutions that are able to launch and maintain ums, and office buildings. Technology Square is They range widely in what they do, as per the same number of companies and other organizations these fairly complex partnership relations with other still only 10 years old. It is early and the aspiration following illustrations: the Accessibility Evaluation involved. Likewise, the Parker H. Petit Institute for institutions as well as corporate technology leaders. is that this area will evolve into a high tech bazaar Facility; the Environmental Radiation Center; Bioengineering and Bioscience involves over one with a large variety and number of entities involved. the Food Processing Techology Division; the hundred researchers from 10 departments across Taking Innovation to the Community: Interoperability & Integration Innovation Lab; six universities, as well as a large and changing Technology Square. Many universities located Boundary Spanning: the OSHA Training Institute; the Unmanned and mix of corporate and institutional involvement. in urban areas become space-constrained as Technology Transfer Autonomous Systems Group; and many others. Many of the other multidisciplinary centers and they expand student head count, as well as There are two organizational paths within institutes at Georgia Tech have comparable breadth greater involvement in research and technology Interdisciplinary Centers and Institutes. Georgia Tech when it comes to moving novel of involvement. For example, one of the indicators development. One design choice becomes whether One of the assumptions and themes of this book solutions into the marketplace that emerge from of external and internal breadth of involvement the new space is to be a functional extension of the of cases is that innovation, entrepreneurship, and research conducted by faculty as well as students. that we have watched among the cases in this book existing campus, primarily dedicated to classrooms, private sector interest is enhanced when universities One is embodied in those programs and services is the extent of direct financial and substantive labs, and student housing. Alternatively, the new do more research and problem-solving in the of the Enterprise Innovation Institute, which are involvement (e.g., project agenda-setting) space can be more physically separated from the context of interdisciplinary centers and institutes. described in great detail above. Before that however, on the part of private-sector participants. campus and also include “civilian” activities, such Georgia Tech has wholeheartedly embraced as private sector offices, housing, restaurants, bars, emergent faculty inventions are evaluated in terms of that assumption. There are over 200 centers and In universities with rich engineering traditions etc. One potential benefit of the latter course is that their true novelty and their potential for intellectual institutes that cut across intellectual boundaries of the extent to which there are National Science the new space becomes more genial for inter-sector property protection via patenting and other methodology, conceptual frameworks, as well as the Foundation Industry-University Cooperative interaction, “connecting,” and doing deals. For mechanisms. Assuming that an invention can be scope and affiliation of those participating. Some on Research Centers (IUCRCs) or Engineering example, El Camino Real adjacent to Stanford, protected, there is also an evaluation of whether it is the list are primarily facilities, as opposed to more Research Centers is an interesting indicator of and the Oakland neighborhood by Carnegie worth protecting in terms of potential impact. And organizationally complex centers and institutes. private sector participation. At Georgia Tech the Mellon, have witnessed many deals cooked. finally, assuming a viable and protectable invention, what is the best path for commercialization. Most centers are still within a college in terms of following IUCRCs are in place: the Center for Pharmaceutical Development (CPD); the Power Technology Square can be seen as an intentional a reporting relationship, and the range of interdisci- A second organization that comes to the fore Systems Engineering Research Center (with other design effort by Georgia Tech to foster inter-sector plinary mixing therein is somewhat less. Of the in making these decisions is located in the Office collaborating schools); the Center on Optical engagement by creating a mixed-use district. The 200 centers at Georgia Tech, the vast majority of Industry Engagement, within the Georgia Tech Wireless Applications (with Penn State); and the plan was announced in 2000 and much of the have a reporting relationship with the College Research Corporation (briefly described above). Hybrid Multicore Productivity Research Center site was built out by 2003, although additional of Engineering, with the College of Computing Here the Innovation Commercialization and (with several collaborating schools). Among buildings are still being constructed. Much of the and the College of Sciences distant seconds. site was originally vacant surface parking lots. Tech Translational Research group functions as Georgia

140 141 INNOVATION U 2.0: New University Roles in a Knowledge Economy Georgia Institute of Technology

Tech’s technology transfer unit in the usual sense the technology as a licensing opportunity. Should 3 Tornatzky, L., Waugaman, P. and Gray, D. of the term. This team, with a combination of legal a company be formed around the technology, then (2002). Innovation U: New University Roles and technical backgrounds, annually evaluates the nascent company is coached by VentureLab, in a Knowledge Economy. Research Triangle hundreds of potentially patentable Georgia Tech and will seek to license the technology from Park, NC: Southern Growth Policies Board. inventions. To execute that process the group works the Office of Industry Engagement, using the 4 closely with the Enterprise Innovation Institute. GT:IPS program and standard license. Georgia Institute of Technology, Office of In FY20127 the Office received 408 invention the President. (August, 2010). Designing the disclosures, was awarded 79 patents, successfully Summary and Parting Comments Future. A Strategic Vision and Plan. Retrieved negotiated 130 licenses or options, and was from http://www.strategicvision.gatech.edu/ One of the more heartening aspects of the involved in 13 startup companies. Users can search 5 Georgia Tech story is that the institution has largely Georgia Institute of Technology, College of via Techfinder an online cumulative data base of stayed true to the aspirations of the founders back Engineering. (2012). Defining Tomorrow. A inventions that are still available for exclusive or in the 19th century. Those aspirations were to Strategic Plan. Retrieved from http://coe.gatech. nonexclusive licensing arrangements. Of note, develop a first class technological university, one edu/content/defining-tomorrow-strategic-plan roughly 50% of licenses executed by Georgia Tech that combines excellence in academic education in 2012 were granted to Georgia companies. 6 Since a redundant theme of this book is the with a hand “in the shop,” and one that will enable importance of visionary leadership, it should Georgia to create a modern economy. All those As is the case with most university technology be noted that after playing an important role things have been achieved and the bar continues transfer offices, most of the inventions managed by at Georgia Tech, Jean-Lou Chameau went on to be raised as its impact is felt throughout the the Office of Industry Engagement end up being to do the same at Cal Tech. See the Cal Tech world. Georgia Tech is one of the great American licensed by established corporations, in either chapter in this book for further discussion. exclusive or nonexclusive licensing arrangements. stories of sustained inspired leadership, diligence However, as noted above, the Office also claims in execution, and an ever-expanding vision 7 Association of University Technology Managers. several startups that resulted from their work. and culture can accomplish amazing things. AUTM U.S. (2013). Licensing Activity And it is in this domain that the programs of Survey: FY2012. Deerfield, IL: Association the Enterprise Innovation Institute, especially of University Technology Managers. VentureLab and I-Corps, play a key partnering role Endnotes in fostering the entrepreneurial agenda at Georgia 1 Te c h . Georgia Institute of Technology. Facts and Figures. Retrieved from http://www. All unencumbered inventions disclosed to the gatech.edu/about/factsandfigures.html Office of Industry Engagement are passed along 2 to VentureLab for assessment. This assessment National Science Foundation, National includes not only the traditional technologi- Center for Science and Engineering Statistics, cal evaluation, but, borrowing from the I-Corps FY2011. Table 14. Higher education R&D process, an assessment as to the viability of a startup expenditures, ranked by all R&D expenditures, within the intended field of use of the technology. by source of funds: FY2011. Table 15. Higher By working closely on mitigating the market and education R&D expenditures, ranked by all technological risk, VentureLab and the Office R&D expenditures, by R&D field: FY2011. of Industry Engagement reach the decision as to whether to initiate company formation or regard 142 143 Massachusetts Institute of Technology*

After several years of relentless campaigning by MIT’s exploitation of the Morrill Act was William Barton Rogers, an academic scientist and unique. Firstly, because it was the only educator, the Commonwealth of Massachusetts federal land grant extended to a private passed a bill that was signed by the Governor on university, and secondly, because MIT April 10, 1861, chartering the “Massachusetts was the only land grant school founded Institute of Technology and Boston Society of by industrialists for industrialists. In Natural History.” However, since the Civil War other words, the Institute would develop started within the week, the new school didn’t get technology and train engineers to serve underway until four years later. Nonetheless, the the needs of established industry. MIT’s institution was to be a contrast to the prevailing technology was not initially developed for norm of higher education in the late 19th century. engineers to start their own companies. It would be: Neither were industrialists funding MIT labs to give science away to farmers, A school of industrial science [aiding] the like most of the agricultural land grant advancement, development and practical schools in the Midwestern states. To MIT application of science in connection with arts, corporation members, technology was a agriculture, manufactures, and commerce. means to improve the fortunes of privately held industrial enterprises, just like the In other words, as a polytechnic institution, enterprises they founded themselves.1 it would be distinctly different from Harvard and other private institutions of the times. One The entering class of 1865 numbered 15, and of the little-known and novel strategies that the school struggled during its early years. But President Rogers and the other founders pulled “learning by doing” (Mens et Manus—“mind and off was to use the Morrill Act, passed in 1862, as hand”) became a path for a new kind of university. a financial and organizational vehicle for starting MIT was an early innovator in the use of laboratory- the university. The basic purpose of the Act was based instruction and project emphases, as well to enable, via the sale of federal land for cash, the as warm working relations with private industry. establishment of Land Grant campuses all over the However, economic conditions during the 1870s country. But the MIT situation was different: hampered the growth of both funding support and enrollment, with the latter inching up to * This case was written by Louis Tornatzky and Elaine Rideout. INNOVATION U 2.0: New University Roles in a Knowledge Economy Massachusetts Institute of Technology only 253 by 1880. Finally, beginning in 1887, the Per National Science Foundation (NSF) University Culture: industry. One competing intellectual movement Commonwealth of Massachusetts started a series of statistics2 MIT ranked 20th in terms of total R&D Goals and Aspirations that emerged was a demand for greater student grants to MIT that lasted until 1920, and enabled expenditures for FY2011, with a total of $723.6 exposure to the basic sciences and the scientific MIT to begin to grow and achieve some financial million. Interestingly, in terms of funding sources, The MIT motto,Mens et Manus, is an excellent method, coupled with an expanded emphasis stability. Total enrollment was 1277 in 1900, 3,436 like all research-intensive universities, most research shorthand descriptor of the key elements of the on graduate education. A second group wanted in 1920, and maintained that approximate level funding comes from the Federal government. MIT culture and history. The current expression to increase MIT’s engagement with industry, on through the 1930s. Through this period there However, MIT currently ranks the second highest of that culture applauds daring research that including both small and large companies, in what were major investments in laboratory facilities and among the top-100 schools in terms of the pushes the envelope of science, but also focuses amounted to a service relationship. A third group program development, all of which was accelerated fraction of research funds from industry sponsors on moving that work into applications in the of faculty wanted to modernize and enhance when MIT moved in 1916 to a mile-long tract of (15.2%). In addition, reflecting rankings by R&D real world. Those cultural values also support the scientific and technological position of the land along the Charles River in Cambridge that field, MIT’s research expenditures are mostly in technology entrepreneurship across the campus. university, but also develop a service relationship was gifted to the university by George Eastman. engineering (42.2%), followed by life sciences with companies, particularly smaller ones. The Some additional history is useful here. During (16.4%) and physical sciences (15.9%). Over the emphasis on service relationships evolved into the time MIT was going through its founding Over the latter half of the 20th century the MIT recent past, research involvement in the life sciences the Tech Plan and a centrally managed Division struggles in the late 19th century, when it was enrollment mix between graduate students and has accelerated, a trend that is likely to continue. of Industrial Cooperation and Research (DICR), receiving repeated offers from Harvard for undergraduates shifted significantly. By the 1960-61 which grew to working with over 200 companies. consolidation, the cultural values of academic year, the student breakdown was 55.5% Significant financial sponsorship of university Mens et The companies involved were very diverse in size that have been depicted in the MIT seal undergraduates to 44.5% graduate students. By research in the US, by either government or Manus and the sophistication of their interests. This since 1864 (the tradesman leaning a hammer 2010 the fractions had flipped with 59.3% graduate industry, was limited until the 1950s. This was approach was at odds with those who wanted to on the anvil; the scholar deeply into the book) students to 40.7% undergraduates. Most recently, not the case for MIT. Early in the buildup to and increase the science and methodological sophistica- were revisited again and again. After fending there have been extensive efforts to enrich the onset of World War II, as a function of campus tion of what MIT was all about. The Tech Plan off Harvard, and launching the new Cambridge undergraduate laboratory and project experience as research leadership, the institution got a very large and DICR grew and by the late 1920s exceeded campus, the years between the early 1910s and the well, along with a growing Institute-wide focus on head start in government-funded military research $700K in volume (equivalent to several millions late 1930s involved an intense period of further technological innovation and entrepreneurship. contracts. As postwar Federal research became a in current dollars). It also became, in the eyes of discussion around how would be more regular process, executed by established and Mens et Manus many faculty members, intrusive and controlling. In terms of student breakdown across MIT’s operationalized. Christophe Lecuyer describes3 new Federal R&D agencies, the mix of science Central administration could prevent publication separate colleges, the 2012-2013 total enrollment this as three visions in competition. It should funding sources for MIT shifted. Thus in the 1970s and academic freedom of action, and the role of of 11,189 included 6,686 graduate students, with be pointed out that at the onset of this period, the largest sponsors of MIT research were the companies in the University was becoming intrusive. 3,166 in the School of Engineering, at either Department of Defense and NASA, while in the last MIT was basically an undergraduate teaching doctoral (2,093) or Master’s (1,070) levels. This few decades the importance of HHS sponsorship institution, preparing engineers with practical Beginning in the late 1920s and on into the was followed by Master’s (1,241) or doctoral (138) has grown. Nonetheless, MIT maintains its skills who could move directly into industry. 1930s, the terms and goals of these external students in the Sloan School of Management, national standing in total research funding and engagements with industry changed significantly, The culture that got established in the 1920s and doctoral students (1,086) in the School of has become very adept at expanding the fraction particularly during the presidential administration and 1930s and during the World War II years, as Science. The School of Architecture & Planning, sponsored by industry. MIT also continues to of Karl Compton starting in 1930. This process these sub-cultures competed and consolidated, was and the School of Humanities, Arts & Sciences, increase its research volume per faculty member. was influenced by advisory roles played by the instrumental in making MIT what it is now. Early accounted for the balance of graduate enrollment. MIT has very entrepreneurial faculty members senior leadership of General Electric, Bell Tele- in this period MIT was a very practical hands-on Among the 4,503 undergraduates, the dominant and research staff, as we shall describe below. phone Laboratories, and other well-established undergraduate teaching institution that covered the major was Engineering, followed by Science. science and technology-focused companies. They, science and engineering basics, and mixed in a lot of and others, advocated a more science-based practice-oriented instruction and interactions with

146 147 INNOVATION U 2.0: New University Roles in a Knowledge Economy Massachusetts Institute of Technology curriculum (particularly physics), in a research- professors are much lower as well. These policies students learned. Relationships with industry rapid build-up of R&D leadership and capacities. oriented university. enable faculty to spend more time in a research continued and grew, but were less premised Bowles offered up his lab space and within a week productive manner.5 Leave policies, performance on a practice-oriented service relationship. a contract to MIT was signed for $455,000. This MIT was to be a university deeply involved reviews, and salary structure are all also supportive would be equivalent to about $7.5 million today. During this period Compton enjoyed a strong in scientific research that addressed very complex of a more venturous approach to a research career, partnership with his Vice President and Dean MIT, Bush, and Ernest Lawrence (an NDRC and little understood phenomena, but where novel as are policies encouraging cross-disciplinary of Engineering, Vannevar Bush, another key member from the University of California) results could be applied to big problems in the collaborations and lab sharing. Karl Compton leader in the MIT story (as well as other cases in immediately moved to hire Lee DuBridge from real world. MIT would lead in both the science was the champion who enabled all of these things this volume). Beginning in the late 1930s and Rochester as lab director. Other key individuals and the engineering of solutions. MIT would to blossom, and put forth a more substantive and become more involved in graduate education, accelerating at an extraordinary pace during the were hired from across the country and from forward-looking interpretation of Mens et Manus. but science-linked engineering would be part of 1940s and thereafter, MIT become a university MIT, and the lab was operational within weeks. both the undergraduate and graduate educational Leadership leader in research and development focused on Named the Radiation Laboratory, or “Rad Lab,” experiences. While solving complex problems in the national defense. Bush left MIT in 1938 to be the facility not only accomplished its focal real world required innovative thinking, teaching, In all the cases in this volume we have tried to President of the Carnegie Institution for Science mission but also established an organizational and cross-disciplinary collaboration within the describe the roles that key leaders have played in in Washington and, as preparations for war model for how MIT would work with Federal University, it also required working directly with enabling their universities to become focused and increased, was made Chair of the National Defense contractors within the defense system. Within industry partners. A culture unique to MIT arose effective in fostering innovation and entrepreneur- Research Committee (NDRC) working closely a year of its founding the Rad Lab had: that rewarded out-of-the-box thinking and taking ship. The MIT history is long and colorful and, with President Roosevelt. President Compton action to turn research into novel real-world for the most part, we will concentrate on those was an NDRC member and chair of a committee …employed 466 staff members, including solutions. Leadership committed to these things, leaders who have been most important during the concerned with instrument and controls. 320 scientific personnel. Seventy of implemented policies and procedures to help make last few decades. Nonetheless much of the current the scientific staff members….were At a top-secret meeting held on September 19, them happen and these, in turn, soon became culture of MIT starts with Karl Compton, who MIT employees who now split their 1940, Compton and other participants from MIT traditions and part of the MIT culture. from 1930-1954 was the dominant voice and guide time between teaching and research of the Institute. But first a little background. and industry were introduced to work pioneered activities at the Rad Lab.” 6 For example, in the MIT of today, faculty can use in Britain that had resulted in a prototype cavity a fraction of their time to engage in work outside of Karl Taylor Compton was born in Ohio in magnetron, which would eventually be the key The Rad Lab went on to extraordinary the University itself, to consult, or to work at their 1887, trained as a physicist, and had a nationally technology in radar systems that, in turn, would accomplishments during the World War II years. own startups.4 Faculty members have continued prominent career—National Academy of Science be instrumental in winning the forthcoming Battle It transitioned to a huge operation, employing a to work at MIT while also serving as co-founder member—at Princeton before he became MIT’s of Britain and the worldwide air war later on. The large percentage of the country’s physicists. So and CTO of a successful startup built around a President in 1930. He held that position until question was where and how could a development too did what became known as the Draper lab technology they invented. Rodney Brooks, for 1948, which was followed by being Chairman of laboratory be established by NDRC to quickly move (led by MIT professor, Stark Draper), which rose example, was Director of the Computer Science the MIT Corporation until his death in 1954. In the technology beyond the prototype stage into to national prominence in the area of instrumen- and Artificial Intelligence Lab at MIT while he those years MIT became the MIT that we now production-readiness. At a follow-on meeting on tation. The scope of war work at MIT was launched iRobot, which, among other things, know: a full-fledged research university that October 17, (attended by Compton and Bush, MIT phenomenal, and as noted by President Compton:7 produces the popular Roomba vacuum cleaner. joined science and engineering into a national Electrical Engineering professor Edward Bowles, and Furthermore, tenure at MIT is not necessarily exemplar of research and graduate education. MIT Frank Jewitt, President of the National Academy of The Institute spent on its war contracts based on teaching skills as much as it might be joined the Association of American Universities Sciences and Chairman of Bell Laboratories, and as much money as it had spent elsewhere, but by virtue of a person’s being at the in 1934 and restructured its undergraduate others), a key question discussed was where 10,000 on its normal activities during its top of their field. In general, teaching loads may and graduate curricula to make fundamental square feet of lab space could be made immediately previous 80 years of existence. be lower at MIT, and the administrative duties of science a more central component of what available and what organization could manage a 148 149 INNOVATION U 2.0: New University Roles in a Knowledge Economy Massachusetts Institute of Technology

While defense contracts dipped significantly adept at rolling with the punches while retaining on Science and Technology. He also served as and the IEEE John von Neumann Medal for work immediately after the end of World War II, they its basic orientation—Mens et Manus—intact. president of the National Academy of Engineering. on distributed computing. She is 73. Mildred rose again during and after the Korean conflict, Dresselhaus works on the physics and properties Paul Gray must also be mentioned as a key leader and continued at a relatively high level. During Different institutional leaders have played of nanomaterials, and was the “first scientist to in the flourishing of MIT, particularly among the the politically tumultuous 1960s and 1970s, MIT significant roles. Susan Hockfield, MIT’s recent exploit the thermoelectric effect at the nanoscale.” cohort of undergraduate students. Not only did went through a tortuous self-examination process, 14th President, played a special role in bridging She is 82 and is usually in her office by 6:30 AM. he serve as President for 10 years, and Chairman of fueled by the times and growing disenchanment the life sciences and engineering. A particular the Corporation for seven years, but he had been 10 with the scope of DOD-related research and accomplishment, for instance, is the thriving David Robert Langer is only 64, but is known at MIT since the 1950s as an undergraduate and development on campus. That eventually led H. Koch Institute for Integrative Cancer Research, for his extensive patent portfolio (over 800 and graduate student, an instructor, through the faculty to the divestiture of the Instrument Lab, which where life scientists and engineers are working to counting), his role in starting 25 companies, and ranks, an Associate Dean, an Associate Provost, had been officially renamed the Charles Stark develop new solutions to diagnosis, treatment, and the 250 companies that have licensed or sublicensed and Dean of Engineering. After retiring from the Draper Laboratory. The DOD-funded Lincoln prevention. Dr. Hockfield was also an effective Langer Lab patents. Graduate students, post-docs, Corporation, he returned to classroom teaching Laboratory, which was established in 1951 and advocate and enabler for the flourishing of the and faculty members populate his lab. He works and graduate student advising, with a particular was more physically separated from the MIT Kendall Square locus of life science and biotech actively and regularly with lab members who love for expanding the quality of the undergraduate campus, was nonetheless retained as a part of the companies. Her presence speaks to the larger role come to him with an idea or a proposal, and is experience. This included establishing the MIT family (See Industry and Community, below). of life sciences at MIT, as well as a dramatically famous for returning his feedback within 24 increased number of women students. Before Undergraduate Research Opportunities Program hours. The Langer Lab has a research budget In discussing what happened after the 1970s, her departure in 2012 she was also instrumental, (UROP) as well as efforts to enhance the undergrad- of over $10 million, primarily from Federal and what leadership came to the fore, it is in a time of major economic dislocation, to uate curriculum in the social sciences, humanities, agencies, and is housed in the David H. Koch instructive to review how the MIT R&D portfolio see an ambitious advancement campaign—the and biology. Dr. Gray’s academic field is in electrical Institute. Dr. Langer also has extensive relations and priorities changed over time. An analysis Campaign for Students—achieve its $500 million engineering, and he served as a co-chair of the with the venture capital community in greater conducted a few years ago is useful.8 Starting in goal. In parallel, in a carefully orchestrated Council on Competitiveness. He also apparently Boston and elsewhere. The Langer Lab approach, FY 1957, federal support accounted for 89% of management effort, she balanced the General knows everything and everybody that pertained to and its close links between cutting-edge science, research expenditures, and has stayed pretty much Institute Budget (for the first time in 10 years). MIT, which came out of his 40-year connection. invention, commercialization, and startups, in the 70-80% range since. In FY 1970, the largest provides a good transition to the next sections. Gray’s career, from its humble roots within the sponsor of MIT research was the Department of Her predecessor, Charles M. Vest, served a University to the Presidency to his current position Defense, at 28% while the total of agencies that 14-year term as President. Dr. Vest came from the Boundary Spanning: illustrates the incorrectness of the assumption that are the current equivalent to HHS was 16%. In University of Michigan, where he had been provost Entrepreneurship the only important leaders in the story of MIT are contrast, by FY 2006 the DOD share had dropped and a professor of engineering. His MS and PhD those in high office. For example, in a recent issue As noted above, MIT is, by headcount and to 15% and HHS was at 33%. In the 1970s the in engineering were earned at Michigan, and he had of MIT Technology Review,9 mission, predominately involved in graduate edu- fraction of MIT research funded by industry stood a long and deep involvement with the manufactur- the editor highlighted cation, with a heavy concentration in engineering. at 3%; more recently, the fraction in FY2011 ing sector, particularly during its transition to some MIT faculty members who have been The culture also supports and encourages techno- was 15.2%. Also, per NSF data, the fraction of advanced computer-based technologies. It is not extraordinarily productive innovators far into their logy entrepreneurship among faculty, graduate research expenditures categorized as life science coincidental that industry financial support of senior years. Carver Mead (79 years old), electrical students, undergraduates, and throughout the MIT increased from 11.7% in FY1992 to 16.4% in MIT research reached its current level of national engineer, has cofounded over 20 companies, community. While a thousand pages could be FY2011. So, to some degree, major sources and leadership during his presidency. He also was an developed the first software compilation of a silicon written about the MIT entrepreneurial ecosystem, substantive foci of sponsored research have shifted effective advocate and advisor on the national chip, and is now working on how animal brains some of the curricular and co-curricular highlights, over the years, and despite occasional periods of science policy in roles such as vice chair of the work. He is also trying to figure out a better way that are most illustrative of the MIT approach, retrospective controversy, MIT has been very Council on Competitiveness for eight years and to teach freshman physics. Barbara Liskov won the member of the President’s Committee of Advisors Turing Award for work on programming languages, are described below. 150 151 INNOVATION U 2.0: New University Roles in a Knowledge Economy Massachusetts Institute of Technology

Curricular Programs courses—Medical Device Design, for example— managing innovation, entrepreneurial finance and practice of entrepreneurship education has evolved undergrad and graduate students work together marketing, supply chains, pricing, etc. According considerably. The Trust Center prides itself on The Martin Trust Center for Entrepreneur-ship, to apply mechanical and electrical engineering to their website, OCW remains one of the most inventing a “disciplined approach” to entrepreneur- located in the Sloan School of Management, is the fundamentals to the design of medical devices widely used digital resources on campus, accessed ship education. The Center’s flagship program is the primary enabling organization for Entrepreneur- that address clinical needs. However, graduate regularly by 92% of students and 84% of faculty. Entrepreneurship & Innovation (E & I) Track of the ship courses and programs. One of the more inter- students do complete additional assignments. Sloan MBA program. One feature of the curriculum Building on the success of OCW, in 2012 esting things about MIT is the relative dearth of Learning labs are widely utilized at MIT as is the use of “dual-track faculty” for courses and MIT and Harvard University launched edX, formal entrepreneurship degrees, majors, minors, curricular mechanisms to provide instruction course activities. One track is populated by a Massively Open Online Course (MOOC) and certificates in comparison with some of and entrepreneurial experiences customized to tenure-track faculty; the other track involves adjunct platform that offers 75 interactive online classes the other schools featured in this volume. For student interests, regardless of their level. instructors and lecturers who are experienced example, the only formal entrepreneurship degree in subjects that include law, history, science, entrepreneurs, investors, and inventors. Many of offered is the major in entrepreneurship offered The office of undergraduate education’s D-Lab engineering, business, social sciences, computer the Sloan entrepreneurship courses are open to all as part of the Sloan MBA, Entrepreneurship program offers courses to any student interested science, public health, and artificial intelligence MIT students, undergraduate and graduate, from & Innovation (E & I) Track. Apparently, no in the design, development and dissemination of (AI). The courses are free and anyone anywhere in all disciplines. To illustrate how this works out degree programs, minors, or even certificates in technologies that meaningfully improve the lives of the world with an internet connection can enroll. in practice, the Martin Trust Center posted the entrepreneurship are offered at the undergraduate people living in poverty in South America, Africa, The nonprofit enterprise has already attracted 18 27 courses offered during fall semester of 2013, of level, even to undergraduate business students. India, and Southeast Asia. Classes in technology additional education providers, including UC which a third (9 courses) had no prerequisites. The development in areas including health, energy, waste Berkeley, Caltech, and universities in China, the courses were offered in the following four categories: Entrepreneurship learning opportunities management, education, agricultural, and assistive UK, France, Australia, Germany, and others. abound at MIT but in nontraditional ways. For technologies are cross-listed across a number • Foundation subjects (practice and theory) While we are interested here in the approach example, while there may be a shortage of degrees of academic departments. In addition students MIT takes in teaching entrepreneurship, the • Entrepreneurial skill sets (e.g., finance, law, and certificates, there does not appear to be a can take courses in design, creativity, business school, more than any of the other cases described leadership, marketing) shortage of courses in entrepreneurship available venture development, supply-chain management, herein, epitomizes what happens to institutions to undergraduates; nor is there a shortage of extra cross-cultural dialogue, and can study abroad, of higher education that operationalize their • Industry focus (e.g., construction, energy, and co-curricular opportunities. Outside of the working with social entrepreneurs to support youth entrepreneurialism internally into university medical device, drug development, materials, business school, several entrepreneurship courses entrepreneurship and help scale up other social operations and teaching practice. For example data analytics etc.) are offered within the disciplines—for example, the innovations. Founders Journey course for undergraduates in the there is an applications course in entrepreneur- • Other entrepreneurship electives school of engineering, as is a product development/ Other curricular innovations that offer ship where students can consider projects that design course that includes prototype development. entrepreneurship education to any MIT student, may lead to a solution that significantly enhances One likely advantage of this situation is that Undergraduate engineers can also take advantage and any student anywhere for that matter, include the MIT environment for entrepreneurial activity it mixes up students from different methodological of the Gordon Engineering Leadership program, the MIT OpenCourseWare (OCW) initiative. among students. MIT instructional delivery and and substantive backgrounds, which arguably which promotes innovation and leadership, OCW has posted all of the materials used in the pedagogy has clearly evolved into new approaches enables creative solutions. including innovation in the established firm. teaching of over 2,000 courses on static course and modalities. One particularly important asset of the websites. The curricula are free and available to As noted above, the core of curricular Martin Trust Center is its ample entrepreneur- But intentionally or unintentionally the teachers and students anywhere with an internet entrepreneurship at MIT is the Martin Trust ship incubation space where students can meet approach that appears to be working at MIT, in connection. In entrepreneurship and related Center for Entrepreneurship at the Sloan School 24/7 to scheme, design, prototype, and move their view of the relative lack of structured curricula, is subjects 66 courses are offered, including product of Management, which launched its first class in entrepreneurial visions forward. The Center also the willingness to blur the traditional boundaries development and design, invention creation entrepreneurship in 1990. Since then, the Center’s offers grants, mentors, a speaker series, a newsletter, between graduates and undergraduates. In some and development, patents, business planning, 152 153 INNOVATION U 2.0: New University Roles in a Knowledge Economy Massachusetts Institute of Technology and networking events, with an emphasis on printing, smart airbags, glucose-powered • MIT $100K Entrepreneurship Competition. The Lemuelson Foundation also supports a team activities that, again, result in mixing of prosthetic limbs, fabric-based computers, etc. This program has been around for 23 years number of much larger and more visible awards, students from different disciplines and interests. and counting, and is primarily focused on which are implemented on a national basis. Similarly, the Biomedical Enterprise Program working with and mentoring student teams Sloan MBA students also have access to the MIT (BEP) is jointly administered by the Harvard-MIT developing technology-based entrepreneurial • Martin Trust Center’s Entrepreneurs in Global Entrepreneurship Lab courses to engage Division of Health Sciences and Technology ventures. Mentoring and advice is provided by Residence (EIR) Network. This program in experiential learning in international settings, (HST) and the MIT Sloan School of Management. a large network of “world-class entrepreneurs, is administered through the Martin Trust particularly in less-developed countries. These The program exposes graduate students to an investors and potential partners” over a year’s Center in the School of Management, but include innovation development and consulting integrated curriculum focused on the complex time, which then leads to a competition of team its services are available to all current MIT with companies and other institutions in China, process of product development and commercial- presentations and pitches. The program has students. An initial meeting is held with a India, Africa, and Southeast Asia. One such lab, ization in the health care industry. Graduates are enabled the birth of “over 160 companies with “student evangelist” during which the scope or the GlobalHealth Lab, pairs faculty-mentored trained to identify and pursue new ideas, manage aggregate exit values of $2.5 billion captured level of needs are assessed. The student is then student teams with enterprises on the front lines scientific and clinical research, procure resources, and a market cap of over $15 billion.” The referred to an EIR, with a level of experience of health care delivery in sub-Saharan Africa and and build successful biomedical businesses. success of the Competition has spawned several appropriate to the student’s situation. These South Asia. Or, students can join an E-Lab team other similar programs including its social include: highly experienced entrepreneurs with Co-Curricular Programs working closer to home with high-tech startup entrepreneurship counterpart, the MIT Global significant success in entrepreneurship (Gurus); entrepreneurs whose companies are a few years companies on targeted projects. The goal of the Much of the student-based entrepreneurial Challenge, as well as the MIT Clean Energy old but experiencing some success (Coaches); Labs is to have students interact directly and experience at MIT (especially at the undergrad- Prize, and the Creative Arts Competition. current students or recent grads who have just deeply with actual companies to experience what uate level), comes via co-curricular programs • MIT offers a summer completed some early stages in launching a a startup is really like, and to be able to work rather than formal courses. Some include Founders Skills Accelerator. program sponsored by all five MIT schools for company (Peer-to-Peer). Meetings take place effectively in ambiguous and dynamic situations. programs focused on faculty inventors, with any team of student entrepreneurs. And students either on campus or in the EIR workplace. graduate students along as a team member. Other courses and programs allow MIT need not worry about giving up their summer The most significant programs include: graduate students to team with other technical jobs as $1,000/month fellowships are available • MIT Venture Mentoring Service (VMS). Since and scientific graduate students (from MIT and 2000, the VMS has been offered to faculty, • MIT Deshpande Center for Technological to help cover living expenses. Furthermore, elsewhere) on a number of lab-style courses and students, local alumni, staff, and local licensees of Innovation. This program provides seed teams that meet summer milestones on MIT inventions. A cadre of volunteer mentors programs. For example, the School of Architecture grants to faculty-led teams, that can include their startup ideas can secure significant works with teams to address business and and Planning has a Media Lab entrepreneurship students as well as faculty, trying to develop additional financial support from external technological problems of a startup, (product program that offers courses to graduate students novel technologies with the potential to solve partners. Student teams receive instruction, development, IP, finance, human resources, from Harvard and MIT in media arts and sciences, very big problems. The grants are at two mentors, and an advisory board (a simulated management, leadership, etc.). Volunteers are in an effort to develop novel technologies that levels: $50K Ignition Grants, to demonstrate board of directors) to keep them on track. obligated to subscribe in writing to a Statement span disciplinary boundaries. The program’s proof-of-concept and/or a working prototype; • This program was of Principles that defines the responsibilities courses include Development Ventures, Imaging and $250K Innovation Grants, to refine and Lemuelson-MIT Program. endowed by Jerome Lemuelson and his wife and obligations of all involved. VMS has Ventures, and Neurotech Ventures, together develop the innovation, explore markets and in the 1990s and is administered through been generous in passing on its methods and with the flagship Media Lab Enterprise course. develop a business model over the course of MIT’s College of Engineering. The $30,000 approach to other academic institutions. Since its inception in 1985 the Media Lab has one year. The Center also offers mentors, Lemuelson-MIT Student Prize is awarded Often those engagements may begin with an become famous as a “factory” of innovation, corporate sponsorship, and hosts various annually to a “full-time MIT senior or graduate intensive Immersion Training experience and (See University and Industry, below), spawning events and presentations of interest to the student” who has been involved in creating a then follow-up advising. No fees or equity over 120 startups around ideas that include MIT entrepreneurship community. wearable wireless biosensors, digital holographic “key invention within a team environment.” participation is required for VMS services to 154 155 INNOVATION U 2.0: New University Roles in a Knowledge Economy Massachusetts Institute of Technology

MIT-linked would-be entrepreneurs. Virtually Engineers; 3 Day Startup Entrepreneurship local and national. The VCPE Club’s study11 reported in 2009 by an MIT professor, all of the mentors have MIT lineage. Program; Beating the Corporate System: major activities include: an annual Edward B. Roberts, and a then-doctoral candidate, An Engineers Guide; Coolhunting and MIT Venture Capital Conference, a Charles Eesley. Two tranches of data collection • Enterprise Forum; Enterprise Forum of Coolfarming through Swarm Creativity. day-long widely attended gathering that were reported on. One was a survey sent in 2001 to Cambridge. The original Enterprise Forum event includes prominent speakers, panels, 105,928 living MIT alumni, which yielded 43,668 and format was founded at MIT in 1978, but has • Student Clubs. Several entrepreneurship- and a “pitch-off ” event; a Private responses, 34,846 of which had answered a question now in effect been franchised around the US and oriented clubs exist at MIT and cater to different Equity Symposium, involving over 400 on whether or not they had become entrepreneurs. internationally. Attendees are not restricted to cohorts of students interested in entrepreneur- investment professionals and students, Of those, 8,176 responded in the affirmative. In people with MIT ties, and community participa- ship, with each club having somewhat different with panels, individual speakers and 2003 these individuals were followed up with a tion is widely encouraged from anyone interested program activities and participants. Some networking events; the annual MIT more detailed survey about their entrepreneurial in entrepreneurship. The format is generally current examples, large and small, include: Sloan Venture Capital Investment experiences, yielding 2,111 responses from alleged the same. It is a late afternoon/early evening Competition, in which dozens of ▶▶ The Entrepreneurs Club (EClub), in founders. Based on their analyses, the investiga- event, some modest meal is served cafeteria student MBA teams from across the operation for 25 years, is based in the tors concluded that companies founded by MIT style often accompanied by beer or wine, there country compete while pretending Sloan School and many of its activities graduates would constitute the 11th largest is a panel of speakers who hold forth on some to be VCs and making investment happen in the Martin Trust Center. economy in the world, and when the sample findings issues pertaining to technology entrepreneurship decisions about actual companies. were extrapolated to the total population of alumni, (and with each other), and then discussion is It holds weekly meetings, enables ▶▶ The MIT VentureShips Club enables the group likely founded 25,800 active companies opened up for Q & A, audience comment, etc. undergraduate seminars, convenes networking events, provides practice teams to focus on business issues of and those that survived likely employed upwards of 3.3 million people with revenues approaching $2 • Independent Activities Period (IAP). This is sessions for presenters, and participates in existing entrepreneurial companies in trillion. Other analyses suggested that the fraction an established tradition and program, going the Independent Activities Period (IAP). various stages of development. Students of MIT graduates who go on to start companies back nearly four decades, not focused primarily work with company personnel and ▶▶ The Sloan Business Club (SBC), formerly seems to be accelerating, and that those new on entrepreneurship per se, that provides a entrepreneurs from the MIT Venture Science and Engineering Business entrepreneurs seem to start companies at an earlier novel platform for co-curricular activities. The Mentoring Service to solve real-life Club (SEBC), encompasses both age. Moreover, while students who come to MIT January-February break between fall and spring problems, usually during a semester time undergraduate and graduate students are from everywhere in the US and the world, the semesters constitutes a special “term” in which frame. Over its history VentureShips from the Sloan School as well as the entrepreneurial activities after they graduate seem to literally hundreds of how-to sessions, forums, has worked with dozens of companies, science and engineering community be heavily concentrated in Massachusetts (just under seminars, films, tours, etc. are offered either and involved hundreds of students. within MIT. Its activities include focus 1 million jobs) and a few other places domestically, credit or non-credit (http://web.mit.edu/iap/ groups, an occasional newsletter, a Fall principally California (526,000 jobs), New York about/index.html). Faculty, staff, students, The Roberts-Eesley Impact Report. While the Networking BBQ, student workshops, (231,000), Texas (184,000) and Virginia (136,000). and MIT alumni develop offerings in a kind courses, experiences and co-curricular opportunities and speaker events. It has secured The reader is encouraged to peruse the entire of a free-market bazaar. Posted standards described in this Entrepreneurship section arguably industry sponsorship for larger and report. It comments extensively on the cultural and procedures provide some guidance on have impacts on the propensity and odds for MIT more ambitious events. The SEBC influences within MIT that enable these trends. appropriateness. During a recent IAP, a number claims to have over 1650 members. students to become successful entrepreneurs, so of activities were proposed that were relevant too does the Leadership and Culture of the MIT ▶▶ The MIT Venture Capital & Private Boundary Spanning: to entrepreneurship, including: Management have complementary impacts. And arguably, Equity Club (VCPE) is one of the and Entrepreneurship, with over 30 offerings; the MIT organization as a whole has impacts on University, Industry and Community larger clubs and has extensive financial Sales Boot Camp; Patents & Pizza: Careers in faculty and staff that last after students graduate There are several boundary spanning and substantive involvement on the Intellectual Property Law; Design Thinking and go on with their lives. Those suppositions, in organizations through which the university part of the venture capital community, for Scientists; Entrepreneurial Strategy for fact, find supportive evidence in a large empirical 156 157 INNOVATION U 2.0: New University Roles in a Knowledge Economy Massachusetts Institute of Technology engages business and industry, the larger research of Illinois. It also is a partner institution on an programs and services to help companies get corporate partnering. To that end it has community, and the contiguous business and NSF Science and Technology Center focused engaged. They include the following: posted on the OCR website a recent Sloan political community. It will be recalled that MIT on the Science of Information, as well as being Management Review article13 on Best Practices gets special plaudits for the fraction of its research a partner member of a Science and Technology • MIT Industrial Liaison. These personalized for Industry-University Collaboration. expenditures that are supported by industry, which Center on Microbial Oceanography, led by the services enable companies to get engaged places it highest among the research-intensive University of Hawaii. MIT partners on a third with centers, departments and faculty MIT Industrial Liaison: Brokering University- institutions that do not have a medical school. Science and Technology Center for Biophonics, (discussed in more detail below). Industry Partnerships. Over 200 companies Industry-funded research was 3rd, just behind the led by the University of California, Davis. MIT are now paying and participating members of the • MIT Industry Briefs. These mini reports provide Departments of Defense and Health and Human also operates an NSF Materials Center on Industrial Liaison Program (ILP). The ILP serves as a potential corporate partner with several a facilitated gateway to a wide range of services and Services sponsors of MIT research, and ahead of Materials Science and Engineering. Among NSF pages of thumbnail descriptions of centers, NSF. These working relationships with the private Engineering Research Centers (ERCs), MIT is connections. Each member company is assigned departments, groups, and labs conducting to an Industrial Liaison Officer (ILO) who is a sector are a key relative advantage. So how do well represented: it is a partner on the Synthetic research and education relevant to a particular the 1,022 MIT faculty members, 3,077 research Biology ERC, led by UC Berkeley; a partner on full time facilitator of company engagements with industry. They are concise and readable, faculty members and center expertise. Members staff and research scientists (including post-docs), the ERC for Sensorimotor Neural Engineering, and enable MIT-industry connections. and 2,490 graduate student research assistants (as led by the University of Washington; and a core are free to search the ILP Knowledge Base to 12 become familiar with centers and individuals who enumerated in the 2013 MIT Briefing Book ) work partner on the ERC for Quantum Energy and • Industrial and Other Non-Federal Collaborations might be a good fit with their needs for particular with industry? Cutting through the complexity, Sustainable Solar Technologies, led by Arizona and Agreements. Produced by the Office of there are essentially two organizational formats in State University. Other federal funding agencies Sponsored Programs, this is a thumbnail guide areas of expertise. In addition, the ILO can set up which industry-sponsored research happens. One is also have portfolios of centers and project-funding to over a dozen types of agreements that cover face-to-face meetings involving member-company the one-time project, in which a team is assembled initiatives that involve MIT, many with opportuni- most all activities in which a company might personnel and members of the research community to perform a project that is contracted or otherwise ties for companies to be part of the mix. be interested, including cooperative research of MIT. The latter are guided in these interactions supported by a company. Often a project leads contracts, but also gifts, student placements, etc. by the ILO, and MIT researchers involved in these to follow-up work, but there is less likely to be an The above is just a sample of one Federal science interactions can accumulate Revenue Sharing ongoing organization set up to serve that company. agency’s investments in MIT-based centers or • Recruiting MIT Students. The OCR also tries Points, which amount to a fixed percentage of gross The other approach for industry-sponsored research programs. A perusal of the results that emerge from to guide industry partners to several programs revenues realized via ILP membership fees. A wide is in the context of a center, institute, laboratory, typing in “MIT labs, centers and programs” on one’s that are operated mostly out of the schools range of events, conferences, and briefings is also or program. In this case, the organizational search engine produces several hundred listings, each and colleges, and enable student placement, available to ILP member companies. This system is relationship may continue on for years, with of which necessitates a deep dive into the particular either pre-graduation or post-graduation. designed to replace the informal, oftenad hoc, way different MIT investigators and private sector clients center, lab or program. The interesting question The Sloan Career Development Office and in which industry technologists get connected with passing through, and a changing menu of projects from an industry perspective is how to navigate this the Bernard M. Gordon-MIT Engineering faculty, staff, and students at many universities. diversity of richness. MIT has one great answer: Leadership Program are examples. going on at any given time. Some centers last a long The ILP seems to be having an impact that is time, and become part of an ongoing portfolio of a the Office of Corporate Relations (OCR), which has several component programs and activities. • Interdisciplinary Research at MIT. The OCR likely to grow. In FY2013, ILP member companies funding agency, with industry involvement built in. posts lists and thumbnail descriptions of those accounted for “approximately 54% of all corporate For example among center programs operated Office of Corporate Relations (OCR). In units that are heavily involved in interdisci- gifts and single-sponsored research expenditures by the National Science Foundation (NSF), MIT addition to the MIT culture, which tends to plinary work and are also significantly at MIT.” In many universities the facilitation has a Science and Technology Center in Emergent reinforce a mindset among faculty, staff and involved in working with companies. of industry partnerships is managed at the unit Behaviors of Integrated Cellular Systems, in students that industry partnering is a mutually (college or department) level and with widely • Disseminating Best Practices. MIT also collaboration with Georgia Tech and the University beneficial activity, the Office of Corporate varying effectiveness. The centralized, seemingly Relations operates or brokers a number of aspires to raise our understanding of very professional approach of the ILP could be

158 159 INNOVATION U 2.0: New University Roles in a Knowledge Economy Massachusetts Institute of Technology adopted elsewhere. The other thing to re-emphasize initiative with significant involvement on Academy of Engineering are either MIT information companies. These working is that, generally-speaking, relationships enabled the part of then-President Susan Hockfield. alumni or faculty, and 10% of alumni are relationships enables some joint intellectual by competent human beings are likely to be more The Report of the Energy Research Council, senior executives in industry. In 2012 the property to emerge from the funded projects, effective than those enabled by Web sites. convened to develop a preliminary plan, cited department performed $53 million of many of which involve collaborative work. MIT’s “capacity to work across disciplinary research, with industry as a significant sponsor. In addition to contract and grant-funded Departments, Laboratories and Centers boundaries, our long-standing focus on Working across fields and disciplines, as well activities, an Industry Affiliates Program enables with Major Industry Funding. Listed below are innovation and ‘technology transfer’, and as with research and commercial organizations companies and other organizations to preview the departments, laboratories and centers that in our demonstrated willingness to work with outside the university, are important values emerging research findings and technologies, to FY2013 were the ten highest at MIT in receiving industry and government…” as a major part of in ChemE at MIT. The research activity of connect with CSAIL students, to convene and industry financial support for their research. the rationale of what has happened in the last MIT Chemical Engineering covers these discuss future technology trends, and to explore These programs are significant not only by dint of seven years. MITEI has developed 16 research problem domains: thermodynamics and potential project collaborations or sponsorships. their demonstrated industry partnering behavior focus areas, and is implementing an ambitious molecular computation; catalysis and reaction More than 20 organizations are involved. but also in terms of the scope of their support by program involving 20 departments and 37 engineering; systems design and engineering; • For nearly 30 years the $45M Federal agencies and non-profit organizations. laboratories, centers and programs as well as transport processes; biological engineering; MIT Media Lab. Media Lab has gone beyond interdisciplinary dozens of faculty and students on campus. Three materials; polymers; surfaces and structures; • MIT Energy Initiative or multidisciplinary approaches to implement main thrust areas are: science and technology and energy and environmental engineering. an “antidisciplinary” problem-solving and • Chemical Engineering department for a clean energy future; improving today’s There are many research partnerships between design culture. Over 100 Master’s and PhD energy systems; and energy utilization in a ChemE and other units on campus. students work with a few dozen faculty in 25 • MIT Computer Science and Artificial rapidly evolving world. Resources to support • work groups, and 100 members and partners, Intelligence Laboratory the activities of the Initiative have been garnered Computer Science and Artificial Intelligence This organization has a long which at any given time are deployed on from several federal agencies, foundations, and Lab (CSAIL). • MIT Media Laboratory and rich history at MIT, originally founded several dozen projects. The core of students, the private sector, and a growing number of in 1963 as Project MAC, which contributed faculty and permanent staff, is supplemented • Koch Institute for Integrative Cancer Research reports and studies have been completed. A to the development of UNIX. The AI Lab by dozens of research affiliates, postdoctoral Membership Program provides a vehicle to was founded separately in 1959. With the researchers, visiting scientists, plus graduate • School of Management support graduate students and post-doctoral funding and erection of a building to house students from a variety of MIT departments. Energy Fellows, as well as funding of research • Mechanical Engineering department the information sciences in 2003, a merger led The research program is coupled to a graduate projects. Support as a Founding Member to the formation of CSAIL. The lab has over degree program in Media Arts and Sciences. • Aeronautics and Astronautics department involves a commitment of $5 million per year 100 Principal Investigators who, in turn, work An important theme of the Lab is how people for five years; a Sustaining Member commits together via 50 research groups organized into experience their environment and how that can • Research Laboratory of Electronics to $1 million per year for 5 years; an Associate three broad focus areas: AI, Systems, and Theory. be enhanced with technology and design. The Member provides $100,000 per year; and an • Materials Science and Engineering department Cross-area research initiatives are also focused projects typically play out at the intersection Affiliate Commitment is $5,000 per year. on issues of BigData, Robotics, and Wireless. of disciplines such as computer science, design Why are they so effective? Below is more CSAIL has spun off over 100 companies, thinking, ergonomics, urban anthropology, detail on the research programs of several of • Department of Chemical Engineering. including: 3Com, Lotus Development psychology, or whatever seems most relevant these organizations and how they operate A good argument could be made that the field of chemical engineering was largely Corporation, iRobot, and many others. CSAIL to the problem at hand. Some research foci vis-à-vis business, industry and government. invented at MIT in the 1920s, and it has continues to be financially supported via a wide include: the City Science Initiative, trying to • MIT Energy Initiative (MITEI). This program been a national exemplar ever since. About range of collaborative research partnerships, develop a data-driven approach to urban design was launched in 2006, as a major campus 20% of chemical engineers in the National including both government agencies and and planning; the Autism and Communications

160 161 INNOVATION U 2.0: New University Roles in a Knowledge Economy Massachusetts Institute of Technology

Technology Initiative, focused on technologies over 100 radar systems, and constructed $1.5 Contiguous Science Partner Organizations. sciences with extensive connections to investiga- to impact autism therapy; and the Center for billion of radar equipment. The RadLab closed Outside the doors of MIT other science-performing tors and institutions around the world. Its Civic Media, creating technical tools to address at the end of 1945, and a small basic-science organizations leverage MIT’s assets and vice versa. scientific focus is primarily at the cellular and the information needs of communities. division continued. That division became RLE They are mostly physically near, independent molecular level, seeking to discover causes of on July 1, 1946. The $30M RLE is focused on organizations that nonetheless have evolved dense inherited diseases and various types of cancers • David H. Koch Institute for Integrative Cancer seven research themes: atomic physics; circuit, and mutually advantageous relationships with MIT. and infectious diseases. The Broad Institute’s Research. Launched by a $100 million gift in systems, signals and communications; quantum core scientific and administrative leadership • The MIT Lincoln 2007 from David H. Koch, an MIT graduate computation and communication; energy, Lincoln Laboratory. is drawn from Harvard and MIT, although Laboratory is a large (3,700 total personnel) in Chemical Engineering, the Institute brings power and electromagnetics; photonic materials, its corporation is separate from MIT. DOD-funded research and development center together research faculty from a wide range of devices and systems; nanoscale science and (FFRDC) located in Lexington, MA. Since disciplines including: electrical engineering engineering; and multiscale bioengineering and Boundary Spanning: 1951 the Lincoln Lab has been a venue for and computer science; mechanical, chemical biophysics. There are 72 principal investigators University and Community. MIT faculty, staff and students to get involved and biological engineering; and materials (64 MIT faculty members) who primarily in DOD research projects. In addition, the To one degree or another, all of the universities science and engineering. The core cancer come from nine academic departments and MIT Technology Licensing Office (TLO) profiled in this volume make a concerted effort research team at MIT includes five current divisions. The $30 million in annual funding has worked collaboratively with the Lab in to conduct themselves in ways that help support and former Nobel Prize winners, 17 current for RLE research comes primarily from three patenting and licensing for many years. The the social and economic advancement of their faculty who are National Academy of Science Federal agencies: DOD (33%), NIH (20%), Lincoln Lab also partners with MIT on surrounding communities. Some universities members, five current faculty members elected and NSF (15%), and private companies professional education short-courses, student have adopted elaborate projects and partnerships to the National Academy of Engineering, (10%). About 20% of RLE projects involve capstone projects, and a variety of joint efforts. going beyond their immediate locales to benefit and nine Howard Hughes Medical Institute collaboration with other universities, private Investigators. The five strategic research foci of surrounding regions and even their home companies, or government in their execution. • Founded in 1982, the Koch Institute include: nanotechnology- The Whitehead Institute. states (Carnegie Mellon and Purdue are good and handsomely endowed ever since, the based cancer therapeutics; novel devices for • Department of Materials Science and Engineering examples). On the other hand MIT is unique Whitehead Institute is a numerically small but cancer detection and monitoring; the molecular (DMSE). This academic department executes among its peers, (perhaps with the exception scientifically prominent research institution and cellular bases of metastasis; personalized approximately $40 million of research of Stanford and Caltech), in that its impact on focused on basic biomedical research. It is medicine through analysis of cancer pathways annually, with a third of its support coming seeding the Route 128 Tech Corridor, spawning staffed by a small cadre of sixteen world-class and drug resistance; and engineering the from industry. Its Graduate Program has the Massachusetts Economic “Miracle” and principal investigators, supported by state-of- immune system to fight cancer. The Koch been consistently ranked 1st nationally by advancing the fortunes of Boston and even Western the-art research facilities and a generous Institute has 180,000 square feet of lab and U.S. News & World Report. The program Massachusetts, is widely known and even considered support staff. It was founded as a free-standing workspace, and also houses the Swanson views materials science and engineering from a a fait-accompli. What is less known is how this self-governing MIT affiliate. Despite its modest Biotechnology Center; the MIT-Harvard life-cycle approach encompassing mining and impact continues to grow and spread beyond size, the Whitehead Institute has world-class Center of Cancer Nanotechnology Excellence; processing, production and utilization, and the state of Massachusetts into New England, to standing in its current focal research areas: the Integrative Cancer Biology Program; and recycling and disposal. It also looks at materials California, and beyond, as will be described next. cancer research; Parkinson’s disease; stem the Ludwig Center for Molecular Oncology. science and engineering from different disciplin- cells; obesity and diabetes; and autism. • Kendall Square. MIT is involved in one of the ary perspectives, including history, design, • Research Lab of Electronics (RLE). This lab has most robust technology-cluster communities and entrepreneurship. Each DMSE graduate • perhaps the most remarkable history of any at The Eli and Edythe L. Broad Institute of in North America. Kendall Square has been receives a bronze medallion of the MIT seal, The Broad Institute is MIT, being the successor of the RadLab that Harvard and MIT. a locus of commerce and technology for over which is made in the department foundry. a creative partnership of Harvard and MIT employed 4,000 people during World War II. 200 years, starting as a wagon route, and then researchers in the biological and medical The RadLab developed microwave radar, created a canal network in the early 19th century, and 162 163 INNOVATION U 2.0: New University Roles in a Knowledge Economy Massachusetts Institute of Technology

then home to distilleries, brewers, and the Miracle.” Whole new industries sprung from a network of corporations, universities, and this dissertation is that a fundamental Kendall Boiler and Tank Company. When these efforts, including computers, biotechnol- research institutes, and then matches faculty and transmogrification occurred: In 1931, MIT moved to its Cambridge campus in ogy, and artificial intelligence, among others. students to develop and implement R&D ventures, MIT’s interest in patents was essential- 1916 it became a neighbor. Today, Kendall And while the largest Route 128 corporations international economic development, human ly passive. After a period of about Square is visible confirmation that MIT is as may have produced a disproportionate share capacity building, and network building. REAP 15 years, those passive interests were much about the life sciences and biomedical of the region’s wealth generation at the time, enrolls participants from countries including transformed into an enthusiastic culture innovation as it has traditionally been in other the plethora of small firms that emerged to Spain, China, Finland, Turkey, and Mexico who of technology transfer. Administrative areas of science and engineering. Moreover, service the giants over the years grew to be learn how to mobilize key players, collaborate practices for technology transfer in 1946 the MIT Investment Management Company substantial employers in their own right. The cross-regionally, and leverage best practice to conceptually resemble those of today. (MITIMCo), which has responsibility for development of electronics-related companies catalyze regional action. MIT faculty experts in managing MIT’s endowment and associated on the 65-mile highway surrounding Boston engineering and technology work with teams made While this 15-year period of discussion and capital investment, is an active partner, with and Cambridge made the area comparable only up of government, economic-development officials, wrangling may seem inordinate, it needs to be the Kendall Square Association (KSA) in to Silicon Valley in technology startups. But in entrepreneurs, universities, risk capital, and large put into context. In fact, before the passage of planning the future of the area. MIT has built fact, many of the California-based technology corporate stakeholders, and conduct training in Bayh-Dole in 1980 only a handful of universities and staffed several research facilities in the firms, also have roots in MIT research. cultivating entrepreneurial and innovative capacities. were ahead of the curve in terms of establishing complex, including the David H. Koch Institute patent offices or technology offices (U. Wisconsin/ for Integrative Cancer Research, as have several • And the World Beyond. Like many of the other Boundary Spanning: WARF, Iowa State, Washington State, Kansas major biomedical, life-science, and information universities profiled here, MIT has established a Technology Transfer State, University of Minnesota, University of technology companies. The count of resident number of “beachhead” campuses, institutes, and Utah, Stanford). MIT was clearly an innovator in MIT was one of the handful of universities companies is over 150. Current planning efforts, education programs outside of Massachusetts terms of its supportive culture and early establish- that established technology-licensing operations with MIT playing an active role, are focused and around the world. In consort with its Mens ment of policies and procedures. It is not widely way in advance of the Bayh-Dole legislation on making the Square richer in amenities, et Manus philosophy, MIT has focused beyond known, but Karl Compton, the President who was in 1980 that launched university technology public spaces, cultural settings, food, retail and education in their global activities to action by instrumental in making MIT the MIT we now transfer on a national basis, and the origins of a more interactive hub of street-level activity. providing venues and assistance for research know, was involved after leaving the Presidency in its patent policy go back to the early 1930s. and entrepreneurial engagement. MIT’s Global creating an early venture-capital firm—American Apparently, a group of entrepreneurially inclined • Route 128. One of the principal technology Education & Career Development organization Research and Development (ARD)—that professors and administrators engaged in a corridors in the US, Route 128 is named for thus has a more global footprint with job went on to be an important investor in Digital running debate to define what the patent policy the partial beltway around Boston where many placements, internships, and study-abroad Equipment. Compton16 was also significantly would be and how it would be executed. A 1996 of the innovative companies spun out from experiences than many. But even beyond this involved in overseeing the development of policies study15 of the period concluded the following: the Cambridge-based Universities settled. In are MIT’s International Science and Technology and procedures that became MIT technology 1957, there were 99 companies employing (MISTI) and Regional Entrepreneurship Committee debates centered on the transfer. The initial planning effort resulted in the 17,000 workers along Rt. 128; in 1965, 574; Acceleration Program (REAP) Initiatives. distribution of equity in patents, on the Patent, Copyright and Licensing Office, which in 1973, 1,212.14 In the 1980s, the Reagan-era terms of licenses, and on public relations apparently had somewhat of a legal staffing and military buildup pumped hundreds of millions MISTI is an applied international studies concerns. Over time, the Patent Committee mindset, and was located in the MIT Division of DOD, DOE, and NASA expenditures program (in Mexico, South and Central America, began discussing potential revenues and of Sponsored Research. In 1985 the function into MIT and the area’s defense contractors Russia, China, India, Southeast Asia, a number the financial risks of litigation. Research was renamed the Technology Licensing Office (Raytheon, Rockwell International, McDonnell of African countries, Israel, Japan, and several Corporation, a non-profit patent agent (TLO), along with new leadership and staffing. Douglas, Digital Equipment Corporation, European countries) that connects MIT students with close ties to MIT, further influenced etc.) creating the so-called “Massachusetts and faculty with research and innovation around the world. In each country, MIT brings together MIT’s patent policy....The premise of 164 165 INNOVATION U 2.0: New University Roles in a Knowledge Economy Massachusetts Institute of Technology

Currently, the MIT Technology Licensing issues, marketing the invention, license agreements, Summary and Parting Comments As a function of the World War II Rad Lab Office is an esteemed and very productive operation. commercialization, conflict of interest, revenue experience, MIT was early out of the starting Illustratively, per FY2012 statistics from the distribution and reinvestments of revenues. These few pages cannot do justice to the gate to transform itself into a modern, research- Association of University Technology Managers17 story of MIT as it pertains to technological intensive university—and one that was dedicated MIT had the largest number of startups (16) among The 27-page Inventors Guide to Startups was innovation and its links to entrepreneurship. to innovation in most things. There were many We urge the reader to do a deep dive into the institutions listed, the highest number of invention developed and written at MIT, and now is being talented and prescient leaders throughout the MIT history and current operations of the Institute. disclosures (690),,18 and the highest number modified and its content used at other universities history, and this narrative has only quickly described Few other universities have been quite as explicit of patents issued (219). It also had 426 patent (with MIT permission). In addition to providing a few. There is a lot of useful homework that the at the outset of their founding to embrace applications, 107 licenses and options executed, information and guidelines on intellectual property interested reader should pursue. For one, the MIT something as simple and eloquent as Mens et and $137 million in 2012 license income. These issues, the guide digs deeply into organizational organizational infrastructure is particularly dense. Manus, and all that it implied regarding higher are all excellent process and outcome metrics. issues pertaining to the startup path to commercial- As noted above, the institution is home to dozens izing an invention, including a delayed schedule education, approaches to understanding science of centers, institutes, labs and programs, each with a The office is very well led, staffed and organized, of financial payments to the university until the and technology, and connections to the world vision, structure and set of operations to conquer its with 21 licensing FTEs reported to AUTM, and venture raises sufficient capital. It goes on to address outside the walls of academe. Moreover, MIT’s part of knowledge, understanding, technology, and a total staff complement that is much larger, but knotty problems that might confront a startup, such story is also a tale of how the institution stayed innovation. The interested reader should spend time which includes a number of non-technical support as whether a license can be granted if the venture is true to the basic rationale of its founding. exploring each organization in their area of interest, staff. There is a strong emphasis in the MIT not incorporated (no, but maybe an option would and reach out to the talented people there, to learn A university founded to work with industry TLO on supporting and enabling entrepreneurial be better) and so on. There is a very useful section more about how they work and what they do. has, by definition, been interested in innovation outcomes as well as the more traditional focus on ownership of the invention, particularly if the and entrepreneurship for decades. In this regard, on licenses to established companies. inventor is a student (Answers: MIT might own MIT could be considered the earliest innovator it if the student works for MIT, if MIT resources There are two documents that are available among the other cases in this volume, and in Endnotes were used in developing the inventions, or if the some respects it may illustrate the direction that from the MIT Technology Licensing Office web 1 invention was created under a contract or grant to other schools are evolving toward. At MIT the Fishman, E., Allen, T. J. and O’Shea, R.P. (2013). site (http://web.mit.edu/tlo/www/) that pretty MIT). Conflicts of Interest or Commitment may institution of higher education itself has changed in The historical development of an entrepreneurial much summarize everything that they do plus the pertain to any technology-transfer situation, but ways that include novel organizations, boundary- university: a study of MIT. In Allen, T. J. & “why” of their doing. These are:An Inventor’s are often more prominent in a startup situation, spanning functions, and policies and procedures O’Shea, R. P. (Eds). Building Technology Transfer Guide to Technology Transfer at the Massachusetts so the Guide addresses this area as well. for faculty that not only support but help to within the Research University: An Entrepreneurial Institute of Technology,19 and An Inventor’s Guide catalyze invention and subsequent entrepreneurial Approach. UK: Cambridge University Press. to Startups: for Faculty and Students. The Guide to Startups also provides members of execution. The institution has also had a major 2 the MIT community with information on the National Science Foundation, National impact beyond the campus itself. This includes The Inventors Guide to Technology Transfer MIT Entrepreneurial Ecosystem and many of the Center for Science and Engineering Statistics, the transformation of Kendall Square from wagon was, as described in the endnote, based on the organizations described above, as well as MIT’s FY2011. Table 14. Higher education R&D route to smokestack to a thriving biotechnology original version that was developed at the University most prominent and long-lived co-curricular expenditures, ranked by all R&D expenditures, city-center, and outward to Route 128, America’s of Michigan. Several leading universities have organizations that provide information, network- by source of funds: FY2011. Table 15. Higher other Silicon Valley, and its thriving suburban adopted the booklet and made minor changes education R&D expenditures, ranked by all ing, competitions, and various experiential communities. MIT continues to do what it has that reflect local policies and approaches. In 32 learning opportunities. This is a useful document R&D expenditures, by R&D field: FY2011. succinct pages—starting with stirring mission always done, but on a larger canvas. It has made and one that other universities should a huge commitment to sharing its experience and 3 Lecuyer, C. (2010). Patrons and a plan. In language from the MIT President—the guide consider emulating. covers the tech-transfer process, disclosures, patent involving students and faculty in Mens et Manus Kaiser, D. (Ed.). Becoming MIT. Moments of efforts in many countries interested in learning how. Decision. Cambridge, MA: The MIT Press. 166 167 INNOVATION U 2.0: New University Roles in a Knowledge Economy Massachusetts Institute of Technology

4 Etzkowitz, H. (2002). MIT and the rise of industry-university collaboration. MIT Sloan Institute of Technology. Undated. The booklet entrepreneurial science. NY: Routledge, p. 38. Management Review. Vol. 51, No.4, 83-90. is based on the University of Michigan’s publication “Inventor’s Guide to Technology 5 14 Sieh, K. A. (2007, October 2). The Rosegrant S., and Lampe, D. (1992). Route 128. Transfer,” whose development was led by Ken Entrepreneurial University: What the University NY: Basic Books. Nisbet and Robin Rasor of the University of of Colorado Has to Learn from MIT and Stanford. 15 Fishman, E. A. (1996). MIT Patent Policy, Michigan Office of Technology Transfer. Silicon Flatirons Center. Retrieved from SSRN: http://ssrn.com/abstract=2298739 or 1932-1946: Historical Precedents in University- Dissertation, http://dx.doi.org/10.2139/ssrn.2298739 industry Technology Transfer. University of Pennsylvania. 6 Douglas, D. (2010). MIT and war. In Kaiser, 16 Fishman, E., Allen, T. J. and O’Shea, R.P. (2013). D. (Ed.). Becoming MIT. Moments of Decision. Cambridge, MA: The MIT Press, p. 88. Building Technology Transfer within the Research University: An Entrepreneurial Approach. op. cit. 7 Douglas. ibid., p. 95. 17 Association of University Technology 8 Canizares, C. R. (2007, January). Sixty-six years Managers. (2013). AUTM U.S. Licensing Activity of sponsored research. MIT Faculty Newsletter. Survey: FY2012. Deerfield, IL: Association Vol. XIX No. 3. of University Technology Managers.

9 Editor. (2013, September/October). Seven over 18 One metric that can be computed is the “batting 70. MIT Technology Review. Vol.116, No.5. average” of disclosures relative to millions of research expenditures. Thus MIT reported 690 invention 10 Seligson, H. (2012, November 24). Hatching disclosures in FY2012 and its level of research ideas, and companies, by the dozens at M.I.T. expenditures for the university was $723.6 million . The New York Times (NSF FY2011 data), which is almost one disclosure 11 Roberts, E. B. and Eesley, C. (2009). per million of research spending—a phenomenonal Entrepreneurial Impact: The Role of MIT. The Ewing rate. However, the Technology Licensing Office Marion Kauffman Foundation. Copyright, Edward at MIT also has IP responsibilities for the Lincoln B. Roberts. In addition to describing the survey Laboratory FFRDC, which adds several hundred results this 74-page report is an excellent history million of expenditures to this computation, despite and current status summary of the entrepreneurship the fact that FFRDC scientists tend to make fewer infrastructure at MIT as of a few years ago. disclosures, because of the nature of their work and the prevailing DOD culture. So, MIT’s record 12 Massachusetts Institute of Technology. (2013, here is either phenomenal or just very good. September edition). MIT Briefing Book 2013. 19 Massachusetts Institute of Technology. 13 Pertuze, J.A., Calder, E.S., Greitzer, E. M. and Technology Licensing Office. An Inventor’s Lucas, W.A. (2010, Summer). Best practices for Guide to Technology Transfer at the Massachusetts 168 169 North Carolina State University*

Like many of the nation’s major land grant back-and-forth discussion with state government universities, North Carolina State University began during the 1960s, North Carolina State College as a small, primarily agricultural and technical officially became North Carolina State University college. Founded in 1887 as North Carolina at Raleigh in 1965. NC State continues to College of Agriculture and Mechanic Arts, the emphasize its scientific and technical strengths and school was conceived as a “people’s college” and as its focus on outreach-based economic impact. a vehicle for promoting the economic and cultural transformation of the state during the post-Civil NC State is part of the 16-campus University War period. It was also established as a Land of North Carolina system. It is the system’s largest Grant institution under the Morrill Act, which university, enrolling 34,767 students in fall of 2011. included donated land and a mandate for education It is the system’s flagship science and engineering in “agriculture and mechanic arts.” Its first class university. While it does not have a medical school, of 72 students was admitted in 1889, served by it contains 12 colleges, offers doctoral degrees in 6 faculty members in one building in Raleigh. 61 programs and houses four different extension programs. Total enrollment in 2011 was heavily The university experienced gradual growth concentrated in the College of Engineering (8,765), for much of its early years, and did not exceed College of Agriculture and Life Sciences (5,583), the a thousand students until after World War I, College of Humanities and Social Sciences (5,047) when it became known as State College. It also and the College of Management (3,205). Reflecting began involvement in the USDA Cooperative its heavy technological emphasis, of a 2011 graduate Extension Service established by the Smith-Lever student enrollment of 9,591 most was concentrat- Act of 1914. Like many state schools of its type ed in the College of Engineering (2,804) and the NC State participated in the post-World War College of Agriculture and Life Sciences (1,039). II enrollment surge fueled by the GI Bill and its student head count grew significantly. Beginning Unlike many land-grant universities, North in the 1950s there was a concomitant growth in Carolina State is located in an urban and industrial- sponsored research fueled by new federal research ized setting. The campus is in the state’s capital, agencies. This helped accelerate its transformation Raleigh, and constitutes one defining point of the from a small, primarily technical college into research triangle area along with Duke University a comprehensive research university. After a (in Durham) and the University of North Carolina

* This case was written by Louis Tornatzky and Elaine Rideout. INNOVATION U 2.0: New University Roles in a Knowledge Economy North Carolina State University

(at Chapel Hill). Research Triangle Park is now “knowledge-economy Land Grant” institution, provides leadership for social, economic companies and encourage the success of home to 170 global companies primarily in the one that has moved from a primary focus on and technological development across start-up companies in North Carolina and information, and technology fields, and Federal agriculture to one that is oriented to industry. North Carolina and around the world. beyond. Located on Centennial Campus Government research laboratories, including IBM, Illustratively, the school was involved in agricultural we will be a leader in developing innovative GSK, RTI International, Cisco, the National extension early in its history, and later on was a So too is the associated NC State Vision ways of partnering with industry and Institute of Environmental Health Sciences of the pioneer in providing industrial extension services. from the same planning document: government to enhance economic well-being. NIH, and EPA. Nearly 40,000 people are employed In addition, its location in an urban setting and full-time in the 7,000-acre Research Triangle Park its proximity to high-technology industry, has NC State University will emerge as Another example is a Mission statement from campus, many with connections to NCSU. caused it to respond to the more intense demands a preeminent technological research the North Carolina Industrial Extension Service: for interaction that have helped to shape an university recognized around the globe In the FY2011 National Science Foundation engaged institution. While the technology- for its innovative education and research We engineer success for North Carolina 1 survey of academic research and development intensive research triangle area has been a major addressing the grand challenges of society. business one solution at a time by NC State reported research expenditures of focus for NC State, it has nonetheless stayed true understanding our partners, building Those two statements came out of a strategic $378.2 million, which placed it 57th among all US to its statewide mission. Early in its history, the long-term relationships, crafting planning effort led by a new Chancellor two years universities. Of that total, 48.1% of expenditures University played a role in the founding and growth meaningful sustainable solutions, and ago. They are echoed by recent comments3 from were in the life sciences, and 30.1% in engineering. of the tobacco, textile and furniture industries; later inspiring continuous learning. Terri Lomax, the Vice Chancellor of the Office of Interestingly 10.8% of research expenditures came on in the post-World War II period, particular- Research, Innovation & Economic Development: From a skeptical standpoint one might argue from business, a high fraction among the top-100 ly in the 1980s, NC State played a significant that all the above mission and vision statements are research universities and an accomplishment that role in launching a technological revolution, As a land grant university, NC State has fairly recent­—which would be correct—and wonder reflects a long history of external research partnering. concentrating on electronics, chip design, materials, an important mission: to support research; what has been the long-term record of NCSU, and more recently biotechnology. NC State NC State does fairly well in national rankings translate research into products and since chancellors, VPs, deans and department chairs University has had a decades-long involvement and ratings. U.S. News & World Report ranked it services that benefit the public; and support come and go. In fact, the longitudinal success of in innovation-related activities and programs. 5th in terms of “best value” (2013), 1st in graduate entrepreneurs and aid in job creation. NC State as an innovation-oriented university textiles (2007), 3rd in graduate veterinary medicine University Culture: has been consistent and getting better in many (2013), and 10th in undergraduate biological and And in a Dean’s mission statement areas and for many years, as will be seen below. agricultural engineering (2013). The university Goals and Aspirations for the College of Engineering: has 20 faculty members who are members of the 2 Leadership The NC State Mission is consistent with Creating a better future through discovery, National Academies. The University’s College these themes: learning and innovation is the core of of Design is internationally recognized, and the The NC State innovation story is somewhat our mission in the College of Engineering engineering program draws the largest fraction of As a research-extensive land-grant different than other cases in this volume in the at North Carolina State University. undergraduate students and is one of the largest university, North Carolina State University extent to which its growing success in innovation in the United States. There are 57 multidisci- is dedicated to excellent teaching, the has been linked to major ventures in infrastruc- Which in turn is elaborated in an plinary institutes or centers on the campus. creation and application of knowledge, and ture and what might be thought of as “technology Envisioned Future document written by engagement with public and private partners. real estate” championed by far-sighted and a faculty committee in Engineering: In some respects, NC State can be seen as a By uniting our strength in science and persistent leadership that went beyond the hybrid of the major types of institutions found university and started over fifty years ago. NC technology with a commitment to excellence We will be a global leader in facilitating in this volume. For example, its service-oriented State would not be achieving extraordinary in a comprehensive range of disciplines, NC intellectual property and technology vision and mission and diverse suite of industry- innovation successes today without the blossoming State promotes an integrated approach to transfer, involving faculty, staff, students, oriented outreach services clearly mark it as a of Research Triangle Park in the 1960s and problem solving that transforms lives and industry and government to assist existing 172 173 INNOVATION U 2.0: New University Roles in a Knowledge Economy North Carolina State University beyond, nor without the successful launch and This morphed into an implementation effort led areas matched well with the strengths of the three Hunt. Hunt talked about how earlier in his growth of its Centennial Campus 20 years later. by Mr. Guest that began by acquiring options on research universities that, in effect, serve as the political career he had been a champion, land through a private development group named points of the research “triangle.” Archie Davis led tilting against real-estate developers, for the The deep background of Research Triangle Pinelands Inc. Eventually it was concluded that another university-bridging innovation in 1974 setting in which he was speaking:8 4 Park goes back to the post-World War II era of the private investors, many out-of-state, could not carry in his role as President of the Research Triangle 1950s. North Carolina was a low-wage low-tech forward the vision. In 1958 Governor Hodges5 Foundation. He set aside 120 acres in the Park for The easy thing to do was to give them state, with an economy anchored by tobacco, turned to Archie Davis, a senior banking executive dedicated use as the Triangle Universities Center for the land, take the money, put it in the furniture, and textiles, and which ranked near (also with Wachovia), to pursue a different course Advanced Studies, Inc. (TUCASI). This eventually state treasury, and cut taxes. But that’s the bottom nationally on most important social that ultimately involved state-based donations, became the home base in the Park for Duke, the not how you build a great state. The and economic indicators. In addition, there was the buyout of Pinelands, and the transfer of University of North Carolina, and NC State, as well right thing to do was to think about the growing concern about the brain-drain of university development into a nonprofit organization named as for the National Humanities Center, the National public purpose; how does this serve the graduates leaving for jobs elsewhere. In 1954 an the Research Triangle Foundation.6 In addition Institute of Statistical Sciences, the North Carolina public, the vision, and what we can be? enterprising State Treasurer, Brandon Hodges, to raising money to acquire the targeted land, the Biotechnology Center, and MCNC (the non-profit That vision, which came to pass, was the met with Romeo Guest, a major contractor, and Foundation also established the Research Triangle organization that provides broadband communica- Centennial Campus at North Carolina State Robert Hanes, the president of Wachovia Bank, and Institute (RTI) and constructed a building to house tion technology services and support to K-12 school University, an exemplar of university, industry puzzled over ideas to promote economic growth. both RTI and the Foundation, all this by 1959. districts, higher education campuses, and academic Some sort of a research park idea emerged from research institutions across North Carolina). and community boundary spanning. those meetings. Hodges and Guest went on to Luring additional tenants was slow-going for the The Centennial Campus. As described above, confer with deans and faculty at North Carolina first few years, but in 1965 the Federal Department Currently RTP encompasses 7,000 acres and Research Triangle Park has, since the mid-1970s, State College, and persuaded Chancellor Bostian of Health, Education and Welfare announced is home to over 170 companies and 39,000 full become a major venue for NC State research, to take that message to Governor Luther Hodges plans for a major facility in the Park, and in the time employees. Most pertinent to this chapter, it student instruction, and industry partnering. (no relation). A 10-page concept paper was written same year IBM decided to build a major R&D also became a national model for the research park However, by the 1980s, the main campus of by the Director of the Textile Research Center facility. Terry Sanford, Governor Hodges’ successor, movement, a locus for untold R&D partnerships the University was expanding and pushing at NC State and delivered to the Governor in played a major leadership role in these catches, and with NC State faculty and students, and a place for against the boundaries of its historic footprint in early 1955. While initially skeptical, Governor in inducing other companies and organizations its graduates to secure rewarding jobs. It was also an urban Raleigh. In 1980 Jim Hunt had won his Hodges eventually became a champion of the idea, to settle in the park. From the beginning, the organizational-design learning experience for what second term as North Carolina governor, and after getting endorsements from the presidents organizations that were recruited were to be North Carolina State was to eventually try closer his administration was very focused on building of Duke and the University of North Carolina. R&D-oriented, not involved in mass production to home, and that would involve many of the same what would later be called a knowledge economy, on-site, but able to do product development and campus and community leaders. In the chapter requiring increased educational attainment across Over the next two years a Research Triangle prototype manufacturing. Companies bought sections that follow there will be many examples the state, more research, and expanded university- Development Council was formed, transformed park land for their facilities, but in order to retain of instances where leadership and an innovation industry partnering. Since 1856, in an area called into the Research Triangle Committee, and an the campus and park atmosphere, there were culture came together to perform remarkable feats. the Lake Raleigh basin, only a few miles from the effort was made to implement the park idea land limitations and other architectural rules. as a private real estate development that was Boundary Spanning: main NCSU campus, the Dorothea Dix Hospital premised on companies moving their operations After the important arrivals to Research Triangle University, Industry and Community 7 had operated as a large treatment facility for the into the triangle area, connecting to the expertise Park in 1965 the next few decades witnessed slow mentally ill. Through various land acquisitions of the three major universities and making and then accelerating growth. By 2006 there were On October 23, 2009 a groundbreaking the Dorothea Dix property had grown to several investments in the area. An extensive campaign 134 companies and 37,485 employees engaged ceremony was held at North Carolina State hundred acres, located in the middle of a dense of mailings and corporate visits was conducted, in information technology, health sciences, University for a new library to be named urban area. Eventually the treatment program led by a Sociology professor at UNC. pharmaceuticals, and environmental science. These after former North Carolina Governor Jim was attenuated and in 1974 most of the parcel was 174 175 INNOVATION U 2.0: New University Roles in a Knowledge Economy North Carolina State University transferred to the Department of Agriculture of research, workforce partnership, and other partnership relationships in this section, many growth of the Centennial Campus and RTP have the State of North Carolina. This was followed service are benefits of such interaction. are tied to the assets of the Centennial Campus. undoubtedly been a major factor in this accom- by a variety of informal uses (jogging, walking, plishment. Given the rich regional connectivity picnicking) by people living in the area, as well The Centennial Campus project became a very Today over 11,000 employees and students between adjacent technology companies and a number of suggestions for more structured large and lengthy architectural planning effort to work at the Centennial Campus, and the site NCSU faculty, graduate students, and post docs, applications: a state-run farmers market, a vocational apply high standards of physical design, optimal now includes over 1200 acres, 1013 on the main ongoing project-based support is very robust. training school, real-estate development, etc. usage patterns, and environmental stewardship, campus, and 214 on the biomedical campus. Sixty for the R&D stakeholders that were to use it— partner organizations have a presence on the NC State has also carved out a niche in On December 18, 1984, in the last few graduate students, faculty members, and their campus, including corporations such as ABB, Red developing cooperative research relationships in 9 weeks of his 2nd term, Governor Hunt allotted counterparts from the private sector. It also Hat, WebAssign, and Eastman Chemical. The the form of centers, institutes and the like that a 355-acre parcel of the site to North Carolina had to be economically viable. The model for College of Engineering has moved its operations involve financial and substantive relationships State University. Bruce Poulton, then NC State achieving the latter was for the university to lease from main campus to Centennial. Centennial is with companies. In addition to the large number Chancellor, had actively campaigned for the buildings and land to private industry and other also home to a number of centers and institutes, of such organizational relationships, there has transfer. In early 1985, in the new administration organizations, similar to the Stanford Research including two major NSF-funded Engineering been notable success in maintaining center-based of Governor James Martin, a second transfer of Park model. New state legislation ended up being Research Centers and the Nonwovens Institute, one programs that may last for years—even decades. 450 acres was made, subject to certain contingen- necessary for that revenue model to be possible. of the largest centers in the country operating in a The university boasts of 60+ interdisciplinary cies articulated by Bill Friday, the head of the consortia model. The newly opened Hunt Library research centers across a a number of disciplines. University of North Carolina system. Eventually As the Campus has been built out and supports teaching and research at Centennial, Of these, 14 have a home base in the College of the plot was expanded to over 1000 acres. There developed, the R&D objectives have been achieved and student dormitory housing and apartments Engineering, nine are in the College of Agriculture were some knotty legal and policy issues raised via mixed-use clusters, including university and have been built to meet the needs of students and Life Sciences, and nine have a reporting/ about the transfer, but eventually the State Attorney corporate tenants, laboratories, offices, classrooms, who call Centennial Campus home, in terms of coordinating relationship with the Office of General’s office ruled the exchange legal. and space for informal interactions among the their program and interests. Two Innovation various tenants. As the campus evolved, some Hall dormitories making up the Entrepreneurship Research, Innovation and Economic Development NC State moved carefully and deliberately to important milestones were achieved to accelerate Live and Learn Center, one for undergraduates (ORIED). Others are scattered across the campus. develop a program model and plans for building the goals of the project. The College of Textiles and the other for graduate entrepreneurs of all The ORIED is itself worth commenting on in out the site. Bruce Poulton, Chancellor from moved from the main campus to Centennial in majors, are under construction. Adjacent will more detail, since it represents a more elaborate 1982 to 1989, led the planning process. However, the 1990s. The National Weather Service became be a hub for student entrepreneurs on campus way of structuring the functions that typically are early on, the creation of the master plan and its a tenant. More space and programming became in the form of the freestanding Entrepreneurs’ associated with the chief research officer. One way implementation was fraught with some controversy. dedicated to entrepreneurial activities and startup Garage design-build center. Construction is of thinking of this office is as the head, hand, and Claude McKinney, Dean of the School of Design tenants including a technology incubator. also underway on a “town center” retail district, voice of innovation at NC State. It positions itself who eventually became Director of Centennial which will be rounded out with a hotel (under as a one-stop shopping site for industry, government Campus, saw the challenge in the following terms: All the NC State Chancellors since Bruce construction). Already completed are a townhome agencies, non-profit organizations, and the faculty Poulton contributed to the further growth and residential community, two campus-based We are clearly doing something different and research staff of NC State. It encompasses refinement of the Centennial Campus. During K-12 schools, and a full 18-hole golf course. from any other university in the nation; Larry Monteith’s administration there was “explosive not only the centers and institutes, but also that is, seeking to create an environment in growth,” and during Marye Anne Fox’s tenure there Industry-University Research Partnerships. technology transfer, the Centennial Campus, and which scientists from university, industry, was a doubling of buildings on Centennial. Across As noted above, NC State has been very successful the Small Business and Technology Development and government can work together in town, the College of Veterinary Medicine became with the scope of industry funding of campus Center. Too often, on many campuses, doing close proximity: multi-disciplinary the Biomedical Centennial Campus. As we describe research, ranking consistently in the top ten among business with these disparate functional areas is research universities in the US. The existence and very difficult, but at NC State interested persons

176 177 INNOVATION U 2.0: New University Roles in a Knowledge Economy North Carolina State University can engage the Office of Research, Innovation and Self-Powered Systems of Integrated Sensors and goal is to “solve the grand challenges of society” on best practices, policies and organizational Economic Development (ORIED) via an email Technologies (ASSIST). While led by NC State, in its R&D domain. Projects will be selected by configurations to foster technology transfer and ([email protected]), a call to its Partnership other partner schools include Penn State, the a joint steering team from the University and university-industry research. This has resulted Concierge, or through the Springboard portal (see University of Virginia, and Florida International. Eastman, with participating scientists from at in informal on-campus sharing of how-to-do- Entrepreneurship and Innovation, below). The least six colleges at NC State. The interactions it wisdom, management guides10 and ongoing Office also has an active program of disseminating NCSU’s Future Renewable Electric Energy will be guided by cost formulas and intellectual research on the topic. Most recently the latter information about campus accomplishments Delivery and Management (FREEDM) Systems property agreements already in place. has resulted in a series of case studies of NSF in the form of a periodic journal aptly named Center is also an NSF Engineering Research industry-university centers that have lasted 20-30 Center. It has support from 46 participating Another initiative launched concurrently, was the Results that is disseminated digitally (www.ncsu. years, a commendable accomplishment that seems edu/results/) and in more traditional forms. companies as well as the NSF, and program funds Laboratory for Analytic Sciences, primarily funded to be a function of the way that the centers are will approximate $10 million annually. The Center’s by the National Security Agency (NSA). The managed and led, with the report11 being circulated One interesting example of how well NC goals encompass fundamental research in energy award was for $60.75 million, and the program is widely by the National Science Foundation. State does in fostering and maintaining industry storage, and power semiconductor devices, as well as expected to involve a range of government agencies research partnerships is its success in the National partnerships to accelerate the commercialization of as well as companies in the information industry. Similarly, the Center for Innovation Science Foundation (NSF) Industry-University intellectual property and foster start-up companies. Management Studies (CIMS) is a distinguished Cooperative Research Center (IUCRC) program. Partner organizations range from energy The North Carolina Research Campus at research center that is focused on better understand- These centers, as mentioned in other case chapters, companies to technology incubators and venture Kannapolis is another major initiative that involves ing corporate innovation. CIMS is a 29-year old consist of a consortium of member companies capital firms, and the initiative has contributed NC State in a unique university-industry R&D industry-university research center (originally working with (and financially supporting) to the development of a green technology partnership. This one is located in Kannapolis, launched at Lehigh University) that has focused faculty-based researchers to execute an agenda cluster in the Research Triangle Park area. close to Charlotte, and involves researchers and on processes of product and process innovation of projects which both decide are particularly graduate students from across the UNC system, in corporate settings. Launch funding came important to an industry or problem. The Among other center programs with a strong including NC State, UNC Chapel Hill, UNC from the National Science Foundation and IUCRCs in which NC State participates are: industry component, NCSU also operates Charlotte, UNC Greensboro, North Carolina there are continuing collaborative ties. It has a (with Duke University and the University of Central, North Carolina A&T, and Appalachian small number of company members and a core • The Center for the Integration of Composites North Carolina) the National Evolutionary State. The research program focuses on the fields of NCSU-affiliated faculty researchers and into Infrastructure (with Rutgers, West Virginia Synthesis Center, and the Nonwovens Institute. of biotechnology, nutrition, and health. The has developed a portfolio of evidence-based University, and University of Miami); The Nonwovens Institute works in collabora- Campus offers over a million square feet of lab best-practice strategies, tools, and assessments to tion with over 40 companies and executes a $3 and office space, including the David H. Murdock enable industry and corporate managers to better • Advanced Processing and Packaging Studies million budget of research and development. Research Institute, that encompasses state-of-the- (with Ohio State and UC-Davis); understand, organize, manage, and ultimately art facilities that enable research in proteomics, improve their innovation processes and outcomes. In addition to the multi-company center or genomics, and metabolomics. Graduate students • Silicon Solar Consortium (with Georgia Tech); institute model, NC State is also experiment- (Kannapolis Scholars) are supported in on-site Industrial Extension. The fact that NC • Center for Advanced Forestry Systems ing with expanded one-on-one longitudinal research funded by a major USDA grant, and State is a Land Grant campus, and thus has more (with eight other schools). research partnerships with large technology-based work closely with faculty from across the involved than a century of experience providing technical companies. Particularly notable is the Eastman institutions, as well as private sector scientists. assistance to agriculture, has also enabled the Another NSF program that emphasizes industry- Chemical Innovation Center launched in 2013. university to extend that mode of outreach to university cooperation is its Engineering Research Eastman will provide $10 million in research One unique advantage that NCSU has in the technology-based business and industry outside Centers (ERC) program. A recently established funding for NC State researchers over a six-year area of industry research partnerships is a 20-year of agriculture. Industrial extension is the vehicle ERC at NC State, with 30 industry partners period that will link to the Eastman Chemical applied behavioral science program, in the College by which this happens, and this activity has involved, is the Nanosystems Center for Advanced Company Center of Excellence. The overarching of Humanities and Social Sciences, focusing been ongoing at NC State for over 50 years.

178 179 INNOVATION U 2.0: New University Roles in a Knowledge Economy North Carolina State University

The Office of Research, Innovation and ing businesses and government agencies across addition to these textile-oriented programs, TexEd research and outreach activities throughout North Economic Development is the entity that oversees the state. IES operating revenue comes from state offers Lean Six Sigma training to manufacturing, Carolina that have been in place for decades, the industrially oriented extension activity at appropriations, federal agency funds (primarily healthcare, and transactional industries, as well many built from the historic role of NCSU in NC State, consistent with its mission to enable via the contract with NIST to operate the North as government and service organizations. TexEd agricultural extension that are now strengthened a coordinated set of activities pertaining to Carolina MEP), state and industry contracts, also offers companies the ability to tailor any by NC State’s parallel work in industrial extension. innovation. NC State pioneered extension beyond direct sales of services, and other supplemental program in its catalog and provides staff to deliver it The boundary-spanning of North Carolina State the farm with the establishment of the Industrial funds. Its engagements with clients cover the gamut on-site. Finally, TexEd offers a range of eLearning, University, locally and across the state, is likely to Extension Service in 1955. The North Carolina from on-site problem diagnosis and implementa- featuring detailed videos and animations of textile remain a strong asset for the foreseeable future. State Industrial Extension Service (IES)12 was tion to a wide range of courses and events. machinery and processes and provides learning the first extension program in the nation to offer opportunities for organizations across the country Boundary Spanning: technical and management services to industry, As an advocate for the state’s manufacturers, IES and internationally, reaching hundreds of Entrepreneurship particularly manufacturing. It has a strong working created the Manufacturing Makes It Real Network participants each year through its programs. Boundary-spanning across this broad area is relationship with the College of Engineering and in 2011 to promote the image of manufactur- Community Partnerships. Given the incredible achieved at NCSU via the Vice Chancellor of its research and expertise. Reflecting the needs ing. The Network hosts events at manufactur- richness of technological organizations in the RTP Research, Innovation, and Economic Development of the North Carolina industry base, IES services ing facilities across the state about six times a region plus the fact that the NC State campus is office’s Springboard group, which is charged with address issues of manufacturing cost, product year that attract more than 100 manufactur- less than 15 minutes away from the state capital on more readily connecting the University’s disparate development, process efficiencies, and the growing ers to benchmark and share best practices. a busy traffic day, the extent of boundary-spanning technology innovation and entrepreneurship concerns regarding environmental impact. For While the IES has long been a bulwark of between the University and the levers of political activities. The Springboard to Job Creation effort nearly 18 years the IES has been the state’s agency direct assistance to North Carolina companies, activity are extensive. Moreover, as illustrated in created one-stop-shop access to the University’s for the National Institute of Standards and it has been joined within the last decade by a the previous few pages, town-gown linkages and New Venture Services of university resources Technology (NIST) program in Manufacturing partner extension program that operates out of connections go back to 1955 and the administra- designed to facilitate and support business Extension Partnership (MEP) activities. the College of Textiles, a prominent curricular and tions of Governor Hodges and Chancellor Bostian, partnerships and speed up flow through the pipeline IES administers the Technology Incubator research entity at NC State for many years. The and for the most part have continued to this day. via which research becomes reality. The hub of the located on NC State’s Centennial Campus and Zeis Textile Extension Education for Economic Most recently, the University has partnered effort is physically co-located with the University’s the Minerals Research Lab in Asheville. The many Development department was formed in 2006, with Raleigh’s Economic Development Office, Office of Technology Transfer on Centennial partners of the North Carolina MEP include the although the College’s extension work with the Wake County, and the Downtown Alliance to Campus. The New Venture Services include: Business and Industry Development Division of industry goes back over 50 years. TexEd fulfills its help support a new Innovate Raleigh initiative. • A sounding board for faculty and students the NC Department of Commerce, the Polymers external extension role to the textile industry in Innovate Raleigh is built around a capital-intensive evaluating a startup opportunity; Center of Excellence in Charlotte, NC, and the North Carolina and beyond primarily through a investment strategy, leveraging the innovative professional education program, providing topical Manufacturing Solution Center in Conover, NC. architecture and design of Centennial Campus to • Workshops on spin-outs, company industry courses covering the entire gamut of attract innovators to the city, and begin to build an formation, NSF Innovation Corps, In 2011-12, IES served a total of 2,295 textile processing. These courses, typically held on entrepreneurial ecosystem that potentially connects and SBIR/STTR grant programs; organizations. Of those, 1,236 were manufacturing campus, are integrated with the TexLabs facilities. innovations born in the University to new products, companies. In 2011, 159 companies responded The facilities, comprised of yarn spinning, knitting, new companies, and jobs based in the community. • Mentoring and supporting the launch of to the MEP surveys and reported $313 million weaving, dyeing, and finishing, plus physical NC State Fast Fifteen Venture Teams; in economic impact from IES activities and the testing laboratories, not only provide support to However, while North Carolina State is a creation of 1,146 jobs. While much of the IES the academic and professional education courses, major innovation presence in Raleigh and the • Linking NC State entrepreneurs with program is focused on small to medium-sized but are also available to industry for research, larger Triangle community, it is also an asset for subject matter experts and plugging them manufacturers, IES also serves non-manufactur- analysis, and product and process development. In communities across North Carolina. There are into University programs campus-wide. 180 181 INNOVATION U 2.0: New University Roles in a Knowledge Economy North Carolina State University

• Marketing NC State Technologies to the world. and centered on actual IP that is in some stage of will need to become successful entrepreneurs. frequently several continue their venture beyond commercialization. Teaching faculty come from These include market research, leadership, graduation, some with help from the Fast Fifteen, Springboard also includes a virtual counterpart, the College of Management (Department of management, pitching and presenting, business the Chancellor’s Fund, alumni mentoring, and the Springboard portal, where local community Management, Innovation and Entrepreneurship), plan writing, as well as engineering design and RTP and Silicon Valley support systems. members, regional/RTP partners, other US the College of Engineering (Department of build. Conversely, TEC’s graduate student teams universities, and even interested persons and Materials Science and Engineering), and there divide up the work of product development and While the business and engineering programs institutions from around the world can get a is curriculum sharing with the College of enterprise creation along team-member skill sets. are arguably the most robust on campus, given their window into the university through which they can Management MBA program. The basic approach success in producing new companies and new jobs, learn how to access and take advantage of university of the TEC Curriculum was developed nearly 20 The EEP underclassmen get a taste of the and their highly regarded pedagogy, a course in research, training opportunities, courses, labs, years ago with backing from the National Science program by developing their own product (e.g., entrepreneurship is also a requirement for students engineering, prototyping and business support, just Foundation. It has been taught on four continents. a toy for local Kindergarten students) based on in Fashion and Textile Management, Textile Design, as university members and partners are able to do. customer-development curricula, while working and Fashion Design. Teams of students develop The undergraduate Engineering Entrepreneurs as “employees” for the higher level senior design novel textile products and write a business plan. Fast Fifteen awardees receive business support, Program (EEP) in the College of Engineering students. This is one of the few pedagogical incubation, mentoring from a regional pool of takes a different experiential learning approach. models we’ve found that explicitly emphasizes Co-Curricular Programs veteran entrepreneurs, sector expertise and alumni Undergraduate engineers (all majors with the team-building, leadership, and employee coaching, and even acceleration with help from exception of Civil and Aerospace engineers) The Entrepreneurship Initiative (EI) provides the management skills development, as well as business the $1.2 million Chancellor’s Innovation Fund. may take two capstone courses as an alternative entire student body with a variety of co-curricular instruction and engineering design-and-build in to Senior Design, the more typical curricular events and activities that cut across the University Curricular Programs a single technology entrepreneurship course. path. They consist of Entrepreneurship and New so that entrepreneurially inclined individuals— The cross-campus Entrepreneurship Initiative Product Development, I & II, three credits each. EEP students have access to a multifaceted students or faculty— can be plugged into what (EI) currently offers two open enrollment General While not a requirement, most of these Seniors Engineering Entrepreneurship Lab, as well as others are doing. For example, the EI sponsors the Education Program entrepreneurship survey also take a one-credit course, An Introduction to the Entrepreneurs Garage where they can use Entrepreneurship Lecture Series, which features Entrepreneurship and New Product Development, courses, which count toward a Certificate in 3-D printers and scanners, SolidWorks and prominent leaders in innovation and entrepreneur- Entrepreneurship. NC State’s curricular programs as underclassmen. The entrepreneurial version similar software, ShopBot Desktop, PCB milling ship and showcases them among University alumni, in entrepreneurship primarily reside in the of Senior Design requires students to form teams software, laser cutters, electronic components, students, and partners. The EI has operated the College of Engineering and the Poole College of around student innovation ideas, many of which ultrasonic bath, vinyl cutter, drill presses, “Entrepreneur’s Garage,” a meeting, design, and Management, although design, veterinary, textile, are tied to “grand challenge” themes to which they routers, lathes, machining equipment, hand prototyping center for student venture development and music students all have access to courses on have been exposed to in various courses in their tools, workbenches and other equipment. and creation. Currently the Garage is located in entrepreneurship within their disciplines. For program. The core of the educational experience temporary space on Centennial Campus, but it undergraduates, the business school offers both a in the entrepreneurial course, however, is the fact In the spring semester the EEP students will soon be located in a new Innovation Residence Concentration and a Minor in entrepreneurship. that students work on their own IP (unlike TEC, have an opportunity to take the annual Silicon Hall, which is currently under construction. Many For graduate students, the Technology Education where students work on existing unexploited IP) Valley Trip, which has helped a number of them of the Garage activities are in turn sponsored and produce technology prototypes and a credible Commercialization (TEC) Graduate Certificate establish network relations. One successful by students, in particular the EI Ambassadors is offered “especially for graduate students with business plan. EEP entrepreneur, upon achieving a lucrative student group. Student ambassadors take it upon backgrounds in management, engineering, science company exit, has returned from Silicon Valley themselves to catalyze student entrepreneurship or other technology related fields that are interested EEP, unlike TEC, does not use multidisci- to the Triangle as an angel investor and supporter on campus and to inform the student body in developing entrepreneurial ventures based on plinary teams, and intentionally so. Instead of NC State’s current crop of EEP students. about all things entrepreneurial. Among the intellectual property.” Teaching is project-based the objective of EEP is to provide all engineers with exposure to the multifaceted skills they The EEP enrolls nearly 100 students annually, activities they help to organize and champion 182 183 INNOVATION U 2.0: New University Roles in a Knowledge Economy North Carolina State University are fireside chats in the Garage with Research Boundary Spanning: • US patents issued: 820 up to $75,000 is provided to faculty, staff, or Triangle entrepreneurs, angels, and supporters, students who have disclosed IP to the OTT, Technology Transfer • US patents pending: 256 and the Local Tours program, which involves a and where commercialization potential Like other activities described in this case, day-long tour of entrepreneurial companies in • IP disclosures: 3,450+ has been established via proof-of-concept/ the Research Triangle, lunch, and one-on-one the Office of Technology Transfer (OTT) product-development work. These awards chats with company founders and funders. benefits from being a program component of the • Products to market: 400+ are for less than one year and are made by a Office of Research, Innovation and Economic CIF Selection Committee that includes NC A number of co-curricular activities and events Development by virtue of spatial location and • Startups launched: 100+ State personnel as well as external partners. in the entrepreneurship area support all of the lateral working relationships within Springboard • Jobs created: 6800+ above curricular offerings, including the following: and the University’s other “way stations” in • The Daugherty Endowment provides the processes of technological innovation. • Jobs created in NC: 3,250+ grants of up to $25,000 to emerging • The Poole College of Management holds an companies and early-stage companies at annual Leadership and Innovation Showcase OTT is a well-staffed, energetic operation • Financing raised: $1.5 billion NC State to enable them to mature their and Venture Pitch Competitions, which involve that has had a good record of success in enabling innovation and organizational base. The most recent FY2012 statistics14 from the student pitches and poster presentations that technology transfer at NC State. The staffing of the Association of University Technology Managers • The NCSU Technology Incubator is located on compete for scholarship awards and cash office is reasonably rich in terms of the number of (AUTM) provide some additional perspectives. the Centennial Campus and, as of this writing, prizes. The University also hosts regional senior staff (e.g., Directors, Licensing Associates) For example, the ratio of invention disclosures to has 20 startup client companies involving not competitions including Startup Madness, and most came to NCSU with significant research expenditure is quite commendable, in just members of the NC State family—faculty, Triangle Startup Weekend, and the ACC experience in technology transfer with other top-tier research universities and/or the private sector. effect one disclosure per every $1.47 million dollars staff, current students, and post-docs—but Clean Energy Challenge competition. In terms of the usual ratios of professional staff of research. Similarly, the pace of licenses and also companies that are community-based, • The University is experimenting with a to scope of research portfolio, NCSU compares options executed is high, with one license or option with minimal NC State staff or students Global Health Case Competition in which favorably to the other institutions discussed in this executed per $6.8 million of research expenditures; involved. Services include business and financial planning, mentoring, and technical/ interdisciplinary teams of undergraduate and volume. Notably, given the relative emphasis on or looked at another way, one license or option for every 4.6 invention disclosures. These are all good engineering services via the NC State Industrial graduate students present their proposals entrepreneurial ventures at every level at NCSU “batting averages” for a technology-transfer office. Extension Service. The university has no “cut” to address a global health challenge. (and in the larger RTP area for that matter) the OTT also has an experienced Director of New in the business proceeds of these startups. While the above accomplishments are • University students campus-wide have their Venture Services. The office emulates other impressive, it is also appropriate to note that • The OTT has been working with a number own entrepreneurship competition program nationally prominent technology-transfer offices OTT also does its work in a setting in which of IP brokers and service providers. These are complete with $50,000 in prizes. The Lulu in various best practices. Illustratively, it makes there are many other programs that arguably organizations external to the University that eGames Competition, jointly sponsored by available to the campus community an Inventors impact or connect with technology transfer, and have ongoing relationships with companies the Entrepreneurship Initiative, the College Guide to Technology Transfer that is very similar to where OTT may play an advisory, collaborative, in a technology or business domain and those of Stanford, MIT and Michigan13 and is an of Management, and a local e-publishing or beneficiary role. Several were mentioned in that can function as an entry point for excellent quick-study tool for first-time inventors company begins with students elevator- the previous section dealing with entrepreneur- NC State technology transfer. Examples as well as the campus community more generally. pitching their way into the finals in three ship activities. Here are a few more: include Southeast TechInventures (STI), the events. Finalists compete on the basis of their Periodically the OTT publishes several Council for Entrepreneurial Development, business plan, arts venture feasibility plan, • The Chancellors Innovation Fund (CIF) cumulative statistics (presumably over the history of UK-based Plant Bioscience Limited, and and/or the quality of a design-prototype. is an initiative launched in 2010 by the the office). These are commendable to say the least: North Carolina Centers for Innovation incoming Chancellor. Financial support of (nanobiotechnology, design, marine biotechnol-

184 185 INNOVATION U 2.0: New University Roles in a Knowledge Economy North Carolina State University

ogy, etc.). A strategic partnership with Nagoya Laboratory, and U.S. Naval Research Laboratory) from http://info.ncsu.edu/strategic-planning/ and similarity of the processes that created University in Japan has the potential for and 18 companies including Delphi, Delta Products, overview/pathway-to-the-future/ RTP and those involved in developing the John Deere, Monolith Semiconductors, and others. Centennial Campus. enhancing licensing and technology bundling. 3 Five federal agencies will provide $70 million in Lomax, T. (2012, Spring). InnovateRAL: 8 Summary and Parting Comments support over five years, with the Department of The Start of Something Big. Results. Research, This quote, and the context, is drawn from: Energy the major funder. Others involved include: Innovation, and Economic Development at North Pearce, G. (2010). Jim Hunt: A Biography. On many dimensions North Carolina State NASA, National Science Foundation, DOD, and Carolina State University. Retrieved from http:// Winston-Salem, NC: J.F. Blair. University provides a model for an Innovation U www.ncsu.edu/research/results/vol12n1/index. the Department of Commerce. The participating 9 campus. Along with its sister institutions, Duke and This sub-section draws heavily from: companies and university partners will match html. It should be noted that relatively few chief UNC, it demonstrates how universities can engage Meszaros, P. (2004). The History of North federal funds. As per the White House press release, research officers at universities have Innovation with an industrial research park for mutual benefit. Carolina State University’s Centennial Campus. the focus is on “enabling the next generation of and Economic Development in their position It is living proof that the traditional activities and Centennial Campus Documentation Project. energy-efficient, high-power electronic chips and title. This says something about NC State. orientation of a Land Grant school can be enhanced North Carolina State University Libraries, devices by making wide bandgap semiconductor 4 so as to serve technology-based industry and Much of the material in this section is drawn from Special Collections Research Center. technologies cost-competitive with current build knowledge-based economic growth across three sources: Hardin, J. (2008). North Carolina’s silicon-based power electronics in the next five 10 Gray, D.O. & Walters, G. (Eds.). (1998). a state and a region. NC State provides a model Research Triangle Park. In Hulsink, W. & Dons, years.” The State of North Carolina is also a partner Managing the Cooperative Research Center. for how industry-university cooperative research H. (Eds.). (2008). Pathways to High-tech Valleys in the effort. This is another current and huge Columbus, OH: Battelle Press. relationships can be conducted such that they are and Research Triangles: Innovative Entrepreneurship, example of all the things that NC State does well, long-lived and high-leverage organizational models. Knowledge Transfer and Cluster Formation in 11 and have been discussed in this chapter: Industry Gray, D., Tornatzky, L. and McGowan, L. Its Centennial campus is a successful model of Europe and the United States, 27-51; Dordrecht, partnering, large technology development and (2013). Managing the Path to Self-sufficiency: how physical propinquity and joint tenancy is a The Netherlands: Springer Publishing. Leyden, commercialization thereof, partnering with public Case Studies in Fidelity and Reinvention of great way to develop innovation and cooperative D. P. & Link, A. N. (2011, December). Collective and private R&D organizations, developing industry Industry/University Cooperative Research Centers. research between academia and industry. While Entrepreneurship: The Strategic Management consortia, and engagement with the manufacturing Industry-University Cooperative Research all of these initiatives develop quirks and wrinkles of Research Triangle Park. Unpublished paper sector. NC State just keeps on rolling. Center Program, National Science Foundation. that need to be fixed and ironed, the long term presented at Strategic Management of Places Retrieved from http://www.pse.umass.edu/ trajectory of NC State as a place for collaboration Conference, La Jolla, CA; Link, A. N. & Scott, cumirp/FinalReport-GraduatesCases.pdf in innovation with industry and its community has J.T. (2003). The growth of Research Triangle 12 many features that could be emulated elsewhere. Endnotes Park. Small Business Economics, 20, 167-175. We are thankful to Jane Albright, of the NC State Industrial Extension Service, who 1 5 As this book was going through its last pre- National Science Foundation, National For the RTP story from the political trenches, the provided much of the detail for this section. publication scan, big and positive news came Center for Science and Engineering Statistics, reader might consult Governor Hodges’ memoir: 13 via a White House release that illustrates all the FY2011. Table 14. Higher education R&D Hodges, L. (1962). Businessman in the Statehouse. The originalInventors Guide was written by points of NC State’s excellence in being a center of expenditures, ranked by all R&D expenditures, Six Years as Governor of North Carolina. Chapel Ken Nisbet at the University of Michigan, and innovation. On January 15, 2014 the White House by source of funds: FY2011. Table 15. Higher Hill, NC: University of North Carolina Press. other institutions have subsequently replicated announced the award of $150 million to support education R&D expenditures, ranked by all that effort and used much of the text (with 6 Archie Davis became President of the a Manufacturing Innovation Institute that will be R&D expenditures, by R&D field: FY2011. modifications ) while acknowledging the fine work Research Triangle Foundation and continued led by NC State and involve 6 universities and labs of Mr. Nisbet. This is a great example of righteous 2 North Carolina State University (2011). The in that leadership position for many years. (Arizona State University, Florida State University, free transfer of valuable intellectual property. Pathway to the Future. North Carolina State 7 University of California at Santa Barbara, Virginia This section has been put in this place in the 14 University Strategic Plan 2011 – 2020. Retrieved Association of University Technology Polytechnic University, National Renewable Energy NC State narrative for thematic continuity

186 187 INNOVATION U 2.0: New University Roles in a Knowledge Economy

Managers. (2013). AUTM U.S. Licensing Activity Survey: FY2012. Deerfield, IL: Association of University Technology Managers. Purdue University*

Purdue University was founded four years after 1960s and 1970s operated its own charter business, the end of the Civil War, thus taking advantage Purdue Airlines. In addition several regional or of the Morrill Act and becoming a Land Grant national companies use the facility, and it is one of university. The Indiana General Assembly passed the busiest airports in the state in terms of aircraft founding legislation in 1865, but did not formally operations. Consistent with the rest of the Purdue establish the institution until May 6, 1869. Classes culture, a certain amount of panache has been a did not begin until September 16, 1874 with 39 part of the operation. (Amelia Earhart was an students served by six instructors. The university adjunct faculty member in the 1930s and prepared was located in West Lafayette, with initial financial for her attempted around-the-world flight there.) support of $150,000 from John Purdue, a Lafayette businessman, $50,000 from Tippecanoe County, From the onset the vision for Purdue was to and 100 acres donated by local residents. fulfill the intent of the Morrill Act and focus on practical education and innovation that emphasized Even today, Purdue’s location is demographically agriculture, science and technology. Engineering modest. West Lafayette has a population of roughly was an emphasis from the beginning. Thus a 30,000 (topped by the student population of nearly Department of Practical Mechanics was established 40,000) and Tippecanoe County’s population is in 1879, which developed into a mechanical approximately 175,000. The university is 60 miles engineering curriculum, and by the turn of the from Indianapolis, the largest Indiana city and century the university had formed colleges of 120 miles from Chicago, a major economic center agriculture, engineering, and pharmacy. A College and travel hub. There is no air service but there of Science was established in 1907 and a College of are bus shuttles to the Chicago and Indianapolis Education in 1908. Not until 1953 was a College airports, and the semi-isolation of the university, of Liberal Arts established (Purdue’s first B.A. coupled with its grand ambitions and the average degree), followed by the College of Veterinary January maximum temperature of 31.5 F, have led Medicine in 1959, the Krannert School of to novel solutions for enhanced access. Since Management in 1962, the College of Technology the 1930s the university has operated Purdue in 1964, and the College of Health and Human University Airport to support both educational Sciences in 2010. Some of these colleges, as at most and research pursuits. It currently has a training universities, involved consolidation of existing fleet of 25 aircraft and 8 simulators, and during the departments as well as adding new departments.

188 * This case was written by Louis Tornatzky and Elaine Rideout. INNOVATION U 2.0: New University Roles in a Knowledge Economy Purdue University

From its founding the university’s enrollment historic mission priorities of Purdue, only the academics, faculty and student life.” The College campus in Indianapolis. In effect, Purdue (and did not exceed 5,000 students for the first 70 years. College of Liberal Arts awards the Bachelors of Engineering was ranked 10th and the Krannert Indiana University) worked cooperatively to create The original complement of campus buildings was of Arts degree in any significant number. School of Management was 21st. In engineering and grow a competitive institution and thereby constructed in the late 19th and early 20th century, specialties Purdue was ranked first in biological/ expand services to a key urban constituency. While with modest incremental expansion over the next Expanding upon its traditional orientation agricultural, 4th in aerospace/aeronautical, and Indiana University (IU) is the managing entity half century. There was a temporary enrollment towards the sciences and engineering, Purdue has 4th in industrial. Also U.S. News & World Report for the IUPUI campus, Purdue has responsibility bump of non-traditional and short-term students become a research and development powerhouse. placed the Pharmacy doctoral program 7th, and for engineering and science. In another joint 2 during World War II when the campus hosted Per FY2011 National Science Foundation statistics the graduate program in Analytic Chemistry agreement for a smaller but significant branch Army and Navy training programs, whose student Purdue had research expenditures of $578.3 2nd. According to Smart Money the university campus, IU-Fort Wayne, Purdue is the operating headcount accounted for more than 50% of total million for the West Lafayette campus, which gives was ranked 8th nationally as a “best buy” and by manager and IU a partner. This campus has enrollment in 1943.1 During this period Purdue it a national ranking of 32nd. Expenditures in Kiplinger’s as among the top 100 in the country. strengths in engineering and technology, and good also operated a number of short-term technical engineering accounted for 37.5% of this total and Financial Times ranked the Krannert School relationships with regional business and industry. training programs, scattered around the state, for life sciences another 34.8%. In terms of funding MBA program 12th among public universities sources indicated on NSF statistics, 44.9% came These themes have been articulated by Purdue defense workers. As will be described, this tradition and the Wall Street Journal ranked Purdue among leadership for years. From the 2005-2010 from Federal sponsored programs and 4.5% from of statewide technical education partner-ships has the top four universities favored by corporate Strategic Plan for the Purdue Research Foundation Business funding. It should be noted that at continued, particularly through the College recruiters. A large number of other programs also (itself created to enable the university to be Purdue, as well as other cases in this volume, much of Technology. placed highly among national peer institutions. responsive to the “outside” world), then Purdue of the industry financial support for research President Martin Jischke opined the following: Like a number of other state Land Grant comes via nonprofit transactions, such as from University Culture: universities, the post-World War II decades saw corporate foundations, and may be allocated to Goals and Aspirations At Purdue, we believe that our university massive growth in terms of students, as well the Nonprofit column. Under the pre-2010 NSF belongs to the people of Indiana and that One of the themes that cut across Purdue’s early as research activities and graduate education. approach to accounting funding sources the Purdue it exists to make their lives and their history up through the present day is to be a science From fewer than 5,000 students in 1944-1945 2011 percentage of business support of research futures better. One of the ways Purdue and technology asset to the State of Indiana and the (and negligible graduate enrollment) total would have been much larger. In fact, the internal serves its state and community is by enrollment climbed to 30,000 by the 1979-80 Purdue University Data Digest for 2010-2011 world. This is demonstrated by the robust presence having a positive economic impact. academic year, including 5,000 graduate students. indicates the same total of $578.3 million, but of adjunct facilities and curricular programs, as And: Several colleges were added, or formed via indicates a much larger portion of funding (11.5%) well as many service programs located around the consolidation, during the next few decades. coming from “industrials.” The National Science state. These include activities such as technology Today we have the opportunity in Indiana Foundation was the largest Federal funder, followed problem-solving for established companies as to harness the sciences and technologies that Today, Purdue University is composed of ten by Health and Human Services, Department of offered by the Technical Assistance Program (TAP) are driving changes throughout the world. academic colleges or schools, with a headcount Defense, Department of Energy and Department now going on 30 years, as well as services focused We can start by coming together as a people enrollment for Fall 2012 of 39,256, of which 30,147 of Agriculture. The level of industrial support on startup companies offered by a large, decentral- and deciding what we want Indiana to be. were undergraduates and the balance consisted of exceeds all Federal agency expenditures except NSF. ized system of new business incubators located graduate or professional students. The 2012-2013 around the state. Both are consistent with Purdue’s The Purdue Research Foundation Strategic Plan enrollment was heavily concentrated in four In terms of rankings and ratings Purdue mission to be a center of technology invention and itself staked out the following vision at that time: colleges: Engineering at 10,173; Health & does quite well. In the 2012 U.S. News & commercialization. Perhaps the most interesting Human Sciences at 4,862; Science at 4,570 and World Report the institution was commended example of Purdue’s ongoing goal to serve the The Purdue Research Foundation will Liberal Arts at 4,514. The next tranche included in several areas. It was ranked 25th among all people of Indiana is its important role in enabling be recognized as the national leader in Technology at 3,658, Agriculture at 3,289 and US public universities, and 11th for “the most the establishment and growth of the IUPUI university-stimulated entrepreneurship Management at 3,137. To better appreciate the promising and innovative changes in the areas of 190 191 INNOVATION U 2.0: New University Roles in a Knowledge Economy Purdue University

and economic development through the is no more tangible way to demonstrate to 5,628 to 25, 582, the budget increase tenfold, and strategic plan that involved a dramatic increase commercialization of science and technology. our fellow citizens the high return their the establishment of new schools of Industrial in faculty positions, an upgrading of campus investments of tax dollars in us can bring. Engineering, Materials Engineering, Technology, infrastructure, and growing sponsored research. These goals have been approximately repeated and Veterinary Medicine. Research expenditures Part of this vision was to be supported by a in many similar forms, before and since. After Leadership increased significantly as did the reputation of Campaign for Purdue, which Jischke launched France Cordova became Purdue’s 11th President Purdue throughout the nation and state as the with a $1.3 billion goal and which raised in 2007 within a year she led the development The University has been blessed throughout harbinger of science, engineering and technological $1.5 billion. He was also a strong and visible of a “New Synergies” strategic plan. One of the its history by consistently able and often brilliant excellence. One of the most important accomplish- advocate for continuing and expanding Purdue’s three major goals articulated therein was: leadership that has enthusiastically embraced ments of the Hovde administration was the establish- partnerships with private and public sector Purdue’s role as a Land Grant institution focused ment of the Purdue Research Park in 1961 and its leaders around the state. New construction for Promoting discovery with delivery on engineering and the sciences, along with rapid climb to national prominence. core labs as well as instructional facilities was by conducting field-defining research a very conscious mission to build the human significant, with the most notable example being with breakthrough outcomes and assets and economic prospects of Indiana. Arthur Hansen, a former Marine pilot in Discovery Park, a $300 million central campus catalyzing research-based economic WW II, was an advocate for high performance initiative that is described in more detail below. This leadership tradition started with the computing and was president from 1971 to 1982. development and entrepreneurship. 19th century administrations of Emerson White His founding of the President’s Council buttressed France Cordova’s administration, 2007-2012, Just five years later Mitch Daniels, coming and James Smart (“the engineers’ president”) Purdue’s already strong linkages to private sector succeeded in dramatically increasing the scope of from a successful political background, was that firmly launched the university. When a fire research and technology partners, as well as private research funding as well as private philanthropy. named university president in 2012. In an Open destroyed Havilon Hall in 1894, Smart vowed research funding which is strong to this day. Dr. Cordova also was a strong advocate of techno- that it would be rebuilt “one brick higher,” which logical innovation and the commercialization of Letter to the People of Purdue dated January 18, The Steven Beering administration (President 2013, he articulated many issues and problems has been pointed to as defining the Boilermaker faculty inventions, and those activities grew during spirit.3 This was followed by a 21-year period of from 1983 to 2000) was significant on several her administration. The College of Health and facing Purdue and other institutions of higher counts. The Purdue Research Park significantly education, but did note, relevant to this chapter: continuous growth, particularly in agriculture Human Sciences and the Global Policy Research and engineering, led by Winthrop Stone. expanded its physical and programmatic assets Institute were initiatives that she supported. via a business incubation facility, a multi-tenant An area of much recent success, but requiring During the roaring twenties, and the dismal building, and a gateway program. Also guidelines The current Purdue President is Mitch Daniels, continued emphasis and development, depression on into the WW II era, Purdue was led and procedures were developed to clarify how who was most recently the Governor of Indiana. lies in the more rapid and continuous by President Edward Elliott for 23 years. The vision faculty-owned businesses were to be treated. As this chapter is being written, Mr. Daniels and transfer of Purdue technology into the and the process of building continued around the Since the early post Bayh-Dole years coincided Purdue are still early in their joint engagement. marketplace. We must produce and recruit themes of technology and external engagement. with Dr. Beering’s administration, and Purdue Nonetheless, given his background, it can be scholars imbued with a passion to see their The School of Aeronautics and Astronautics aspired to be active and effective in technology expected that President Daniels will be a strong genius converted into goods and services was established, as was the Purdue Research transfer and entrepreneurship, much of Purdue’s advocate for programs and activities that enable that improve human life…. As one of Foundation, which was an early model of how policy and program foundation in this area was the state of Indiana to prosper from the intellectu- Purdue’s most renowned faculty leaders the modern university would manage its research buttressed during his tenure as President. al assets of Purdue. Recently, for example, he has said to me, ‘It’s not an innovation until transactions with funders and industry partners. engaged university leaders to tackle and tear down Martin Jischke, Purdue’s 10th president from it’s useful to someone.’ There is no greater any obstacle, bureaucratic or otherwise, in the way The 25-year (1946-1971) post-war period was 2000 to 2007, also accomplished several significant societal contribution we could make to a of commercializing Purdue innovation. Rules marked by a much more ambitious flowering of goals relevant to technological innovation and nation struggling to maintain economic and procedures are being re-written to get the the Purdue vision and mission. It was ably led by building a supportive organizational and cultural university “out of the way” of inventors, to reward opportunity and upward mobility, and there Frederick Hovde, and saw enrollment grow from framework. For one he completed a “next level” entrepreneurial behaviors, and to raise significant

192 193 INNOVATION U 2.0: New University Roles in a Knowledge Economy Purdue University seed funds to help move ideas into commercial 2005, the program now has involved thousands then travel to Hangzhao, China for the organize advice on business plan preparation, reality. There has also been an increasing emphasis of students “from every college, school, and spring semester. They complete the program and facilitate access to startup capital. to enhance organizational efficiencies to serve both department at Purdue,” which would arguably at Purdue University’s Krannert School of Some MBA club members also work at internal and community-based constituencies. The make it one of the largest in the country. The Management during the summer. Students the BDMC where they serve as entrepreneur- Purdue Innovation & Commercialization Center Certificate involves 5 classes, two core courses, graduate with a Master of Science degree with ship consultants and help other entrepreneurial (ICC) is an example of “one-stop shopping” in the two option courses, and an experiential a specialization in Global Entrepreneurship. students with their business planning, area of technology commercialization and services capstone. The list of approved options changes marketing, and finance information needs. for start-up companies that come out of Purdue. regularly, and the student can take an additional Co-Curricular Programs • The Purdue Realization and Entrepreneurship capstone course as a substitution for one of These organizations provide a number of Boundary Spanning: the required options. The options can vary Postdoctoral/Doctoral Fellowship Program competitions and events that supplement the is a Kauffman-funded program Entrepreneurship widely, such as an internship (e.g., facilitated (PREPP) ongoing programs described above. These include: that offers workshops and seminars to by either Interns for Entrepreneurship or the In 2007, with funding from the Ewing Marion graduate students, and provides financial Lilly Endowment-funded Purdue Interns • Purdue Innovation and Commercialization Kauffman Foundation, Purdue became a “Kauffman support for competitively selected postdocs for Indiana program), a consultancy, or a Center. This is an organizational and Campus” charged with creating a culture of entre- or doctoral candidates for up to a year, study-abroad program. The approved option information entity that brokers and facilitates preneurship in the business school and beyond to while they work on the commercialization courses also vary widely, and might be in health, innovation and commercialization partnerships benefit the entire campus, the local community, of their research-derived invention. education, languages, and media as well as across the campus. It provides online links to and citizens statewide. One hub of entrepreneur- business, science, engineering, and technology. 37 “resources” which includes every program ship education on campus, and of the Kauffman • Purdue University’s Elevator Pitch Competition activity described in this chapter and more. Its was created in 2006 and is hosted by the initiative, is the multidisciplinary Burton D. • Krannert School of Management MBA in Leadership Team is composed of on-campus Certificate in Entrepreneurship and Innovation Morgan Center (BDMC), the first building to open Technology Innovation and Entrepreneurship. individuals with significant experience Program. The competition gives participants in Discovery Park. A second organizational locus This program includes topics such as technology in information systems, innovation, and two minutes to describe the value of their of entrepreneurship education is the Krannert planning, new product management, patents, entrepreneurship. That Team is also linked to an entrepreneurial business venture to a panel School of Management. Perhaps the most pervasive capitalization, venture formation, commercial- Operating Committee that includes on-campus of judges. There are two divisions in this program in student entrepreneurship curricular ization, and related issues. Ten hours of as well as community experts in comparable competition: one for Purdue Certificate in programs at Purdue is the Certificate in Entrepre- coursework are required, including two domains. The Center has been operational since Entrepreneurship and Innovation undergrad- neurship, available to all students, and operated Foundation Seminars focusing on Technology 2012. In addition to its information systems uate students and another for staff/faculty out of the Burton D. Morgan Center. Purdue’s Realization Topics. The program is linked and connectivity activities, the Center also hosts entrepreneurs, graduate students, representa- programs in entrepreneurship are more numerous to various mentoring opportunities, hosts various face-to-face meetings and consultations. tives from Purdue Research Park companies or in co-curricular activities as opposed to curricular entrepreneurship activities and events, and Certificate Program Alumni. Winners in each ones, although the latter may reach more students. generally facilitates the transition of campus • The Purdue Entrepreneurship and Innovation category receive prizes of $1,000 for first place, research findings to real world applications. Club, and the Krannert Entrepreneurship and CURRICULAR PROGRAMS $500 for second, $250 for third, and $500 for Venture Clubs, are designed to provide students • Krannert School of Management MS in Global most entertaining. The competition has several • Certificate in Entrepreneurship and Innovation. with the knowledge, resources, and first-hand Entrepreneurship Program (GEP). The GEP sponsors including the Otis Elevator Company. This program is organizationally attached to experience in launching a startup company is a year-long program that begins every the Burton D. Morgan Center. It provides while at Purdue, but in a club context. The • The August and is delivered in partnership with Burton D. Morgan Business Plan the opportunity for undergraduate students clubs provide a campus forum for networking is the third oldest business plan EMLYON Business School in France and Competition to take a tightly focused group of courses that and collaboration, host events featuring guest contest in the US. Graduate and undergradu- Zhejiang University in China. GEP students is complementary to all majors. Launched in speakers, enable networking opportunities, ate student teams develop and present business begin their studies in the fall at Lyon, and 194 195 INNOVATION U 2.0: New University Roles in a Knowledge Economy Purdue University

plans to a panel of judges and compete for cash the Social Entrepreneurship and Education and events that enhance their knowledge Young Entrepreneur’s agreeing to locate their and in-kind awards to further the commercializa- Consortium, National Collegiate Inventors and about available resources, the processes of start-up business within their community. tion of their inventions. “Gold” or open-division Innovators Alliance, Kauffman Foundation, commercialization, and the development of The Indiana Small Business Center, Indiana teams comprise undergraduate students, graduate and a National Science Foundation grant networks of like-minded faculty members. Economic Development Corporation, and students, or a combination of both. Staff and through the University of Texas, Austin. the Office of Community and Rural Affairs • faculty of Purdue University may be included The Entrepreneurship Bootcamp for Veterans help communities prepare bids and compete offers free, experiential in the team. Off-campus personnel may also be • The Faculty Boot Camp is conducted during the with Disabilities (EBV) financially with larger communities to attract training in entrepreneurship and small included, but cannot make up more than 50% fall break and attracts over 70 participants. The a Young Entrepreneur. Qualified participants business management to post-9/11 veterans of the team. Student members of the team must program educates faculty, staff, and graduate must be enrolled in an educational institution with disabilities from their military service. be enrolled at Purdue University at the time of students about sources and processes of seed and located in the state of Indiana or have graduated Participants develop entrepreneurial knowledge, registration. “Black,” or undergraduate division venture capital, company formation, company from an educational institution located in the tools, and skillsets in new venture creation and teams, must be wholly made up of currently valuation, and various other topics. Assistance is state of Indiana within the last three years. growth, gain university and peer supporters, enrolled undergraduate students. All members also provided online through Kauffman-funded and make connections with other programs of the team must be enrolled undergraduate Purdue portals. The program also supports Boundary Spanning: available to veterans with disabilities. Purdue students at the time of registration. test marketing, business plan development, and University, Industry, and Community The team must have a faculty advisor. brokering linkages to funding and mentors. • The Purdue Research Park offers a summer Throughout its history Purdue has had • Established in 2012, academy program to Indiana high school juniors • The Purdue Entrepreneurship and Innovation The Docking Station. an extensive record of connecting to external with sponsorship by the Burton D. Morgan and seniors who demonstrate aptitude in the Learning Community (ELC). This is a residence constituencies. Two areas that are among the areas of math, science and technology along with hall located near the Burton D. Morgan Center Center and the Purdue Research Foundation, most active and extensive involve partnerships an interest in entrepreneurship. High school for students enrolled in the Certificate program, this off-campus facility is a co-working and with industry and significant educational students accepted into the Purdue Research Park or for those otherwise interested in entrepreneur- networking space for students, faculty members, partnerships with Indiana communities Entrepreneurship Academy spend five days at the ship. It serves to enhance networking among and community entrepreneurs. It is walking outside of the West Lafayette main campus. Purdue Research Park, led by Purdue Research would-be student entrepreneurs. distance from the main Purdue campus, has high-speed broadband Internet, and is open Foundation staff with critical assistance from Industry Partnering and Centers. In terms of • The Student Soybean and Corn Product 24/7. It is a place to work and connect. Purdue University faculty, industry leaders and the scope of industry-sponsored research, Purdue Innovation Competition offered by the successful high-tech business entrepreneurs. does very well in operating R&D programs in Agricultural and Biological Engineering • The Entrepreneurship Leadership Academy which companies are both substantive and financial • established Program is open to all students with ideas (ELA), another project of the Kauffman The Young Entrepreneur Program, partners. Some of this activity takes place in by the State of Indiana in 2011, is an innovative for novel, economically and technically Foundation Campus Initiative, leverages the context of one-time research contracts, with approach to increase student entrepreneurs’ feasible new soybean and corn products. off the Faculty Boot Camp experience, a company working with a professor or research ability to continue with their projects after The contest is sponsored by the Indiana providing support for up to ten mid-career staff person. There is a dedicated Assistant Vice graduation, and actually launch the ventures Soybean Alliance and Indiana Corn Marketing or senior faculty members annually. Faculty President for Industry Research who provides they worked on in college. A panel of judges Council, and offers a $20,000 first prize. The interested in cultivating their own leadership leadership in this area. In addition, Purdue is reviews student business plans and selects contest has resulted in the commercializa- and entrepreneurial skills apply for seed adept and aggressive in launching multi-year entrepreneurs with the top proposals to tion of a number of new products. funding for a commercialization project multi-participant research centers and institutes. derived from their science. Fellowship participate in a state-wide, tradeshow-style Within the Office of the Vice President for Research • The Burton D. Morgan Center also hosts awards are $5,000 while Scholars can win event. Community officials then compete by there are two Managing Directors for Launching the National Idea-to-Product Competition $15,000 for continued project work. Fellows offering incentives including free rent, grants, Centers and Institutes. Not surprisingly, the for Social Entrepreneurship. Sponsors are and Scholars also participate in discussions loans, and utility support, in exchange for the number of centers and institutes, and the aggregate

196 197 INNOVATION U 2.0: New University Roles in a Knowledge Economy Purdue University scope of their R&D, has increased significantly over enabling research contracts with the university. services for 21 early stage companies, plus facilities original six centers. This gift was supplemented the last decade. Many of these are interdisciplinary It also is the organizational home of the Purdue for four established companies. The Purdue by Lilly in 2005 with another $25 million, which or multidisciplinary in foci, and the extent of Office of Technology Commercialization. Research Park Indianapolis opened in 2009 led to the creation of more centers as well as the industry participation, substantive and financial, is on 78 acres and includes a 55,000 square foot consolidation of programs across the Park. high. For several years the Office of Research and Perhaps the largest—clearly the most visible— incubation facility. The fourth leg of the Purdue After consolidation and reorganization, Technology programs has published an industry- contribution of the Purdue Research Foundation Research Park is located in southeast Indiana on to Purdue was its role in the establishment in Discovery Park is now a self-sustaining entity targeted online newsletter entitled Purdue/Industry 40 donated acres and includes 18,000 square feet 1961 of the Purdue Research Park system, with consisting of the following eight core centers, plus Partnerships to pique the interest of companies. of incubation space. This pattern of statewide the largest component in West Lafayette, and partnering in programs and facilities repeats itself their seven subsidiaries: Bindley Bioscience Center; Over recent decades the successful development three ancillary facilities elsewhere in the state. in other domains, as will be described below. Birck Nanotechnology Center; Burton D. Morgan of centers and institutes has accelerated and they The Purdue Research Park system was designed Center for Entrepreneurship; Discovery Learning now number 116 University-approved initiatives. to enable working relationships between mostly Discovery Park. The development of Research Center; Global Sustainability Initiative; Of these, several are explicitly organized to technology-based companies and the R&D Discovery Park over the past dozen years Advanced Computational Center for Engineering maximize industry involvement, including the and human resources of Purdue. To that end has given Purdue a capacity that has many and Sciences; Oncological Sciences Center; and NSF Industry-University Cooperative Research it has succeeded in a spectacular manner. similarities to the NC State Centennial Campus the Regenstrief Center for Healthcare. Each of Center model, where Purdue participates in the but without the need to get in your car and these centers encompasses human assets as well as Cooling Technologies Research Center and the The 725-acre Purdue Research Park in West drive there. It is also attaining comparable facilities and laboratories. There is also reportedly Center for Advanced Forestry Systems. Purdue Lafayette has over 160 resident companies, most of outcomes in terms of research scope, commercial a robust organizational culture among the centers also participates in a Quantum Information which are technology-oriented. It also hosts one of outcomes, and cultural change on campus. in Discovery Park that encourages and enables Center for Quantum Chemistry, another NSF the largest clusters of business incubation facilities interdisciplinary science and problem solving across Discovery Park is an on-campus R&D “district” program. The Purdue Center for Cancer Research in the country, over 350,000 square feet. More than the 4000+ faculty and students who work there. of 40 acres that is anchored by eight centers, each has been supported for many years by the National 3,200 people work in the park’s tenant companies. of which is aggressively interdisciplinary, as well as As Discovery Park has evolved and grown, Cancer Institute. Research funding from Federal The Purdue Research Park in West Layayette conceived so as to address the “grand challenges” so too have the resultant outcomes since 2001: agencies is led by the National Science Foundation, is arguably, in terms of size and international of the planet, and to do that in such a way as to over 40 companies seeded or assisted; over followed by HHS. Reinforcing Purdue’s capacities acclaim, on a par with Research Triangle Park in nurture the technology sector of Indiana. The $500 million in externally sponsored research; to conduct cutting edge science are the nearly 100 North Carolina. Unlike the Purdue park, RTP— core labs, centers and related facilities are clustered 174 invention disclosures; and 27 licenses/ core labs that enable access to instrumentation, as has been noted in the NC State chapter— in the central campus, and thereby benefit options from Discovery Park research. equipment, facilities, analysis and expertise. is in the middle of a major technology cluster considerably from the propinquity of talented community. Nonetheless, Purdue Research Park Technical Assistance and Extension. Somewhat Purdue Research Foundation and Purdue people pursuing large problems and ambitious has received the following awards: Association of an anomaly in the context of the contemporary Research Park. Insightful leadership, coupled business opportunities. The Park encompasses research-intensive university, since 1986 Purdue has with a desire to make Purdue more relevant to of University Research Parks’s Creating the 113,000 square feet of laboratory space and 93,000 operated a set of outreach and assistance programs industry, led to the launch of the Purdue Research Culture of Innovation Award, 2011; International square feet of office and meeting space. Over $30 designed to improve the economic performance Foundation in 1930, at the low point of the Great Economic Development Council’s Excellence million in equipment has been acquired thus far. of Indiana companies and organizations. In terms Depression. Two enabling gifts of $25,000 each, in Economic Development Award, 2012. In Discovery Park planning was initiated in of operations there are many similarities with the from J.K. Lilly and David Ross, led to its establish- addition, several of the resident companies in 2001 via $5 million in state support, initially traditional agricultural extension programs that ment. The Foundation is organizationally separate the Park have received various national awards. for a nanotechnology center. Lilly Endowment have been in existence for many years in Land Grant but linked in mission to Purdue University. As such The Purdue Research Park Northwest Indiana got things rolling with a $26 million gift, also in universities. The mission of the Technical Assistance it plays a role in managing external relationship, occupies 393 acres and provides incubation 2001, which in turn led to the founding of the Program (TAP) is “to advance economic prosperity, gifts, acquiring and managing property as well as 198 199 INNOVATION U 2.0: New University Roles in a Knowledge Economy Purdue University health and quality of life in Indiana and beyond.” Consistent with other technology programs at West Layayette less attractive. All three of these (President Joseph Sutton) and Purdue (President TAP is financially supported by a changing mix of Purdue the TAP activities and offices are scattered campuses have majors that have high employment Frederick Hovde). A major impetus for this state, Federal, university and client service fees. Its around the state, again with the intent to serve potential in technology-based industry. unusual partnership was to more directly serve activities have gone through many reconfigurations the economic geography of Indiana. While TAP the population center of the state, and a large Another example of broad regional outreach, over the years, but it nonetheless claims to have: is not a major set of activities in the grand scheme live-at-home potential student body in Indianapolis. coupled with a non-traditional applications- of Purdue, its existence and robust program attest oriented approach to engineering education, is the …assisted over 12,000 organizations, trained to how Purdue defines its mission and culture. IUPUI has now grown to a campus with an over 26,000 employees, created or retained College of Technology. Since its founding Purdue enrollment of over 30,000 undergraduate and $872 million in sales, increased capital Statewide Community Engagement. has struggled and worked with how to address graduate students, a curriculum that accommodates investments by $217 million, contributed More than many public flagship universities engineering as a scientific discipline as well as a over 250 degree programs, and a sponsored-research to cost savings of $107 million, and created in other states, Purdue has taken very seriously practical skill set. Some research universities leave portfolio that is significant and has national or retained over 11,000 jobs in the state… the challenge of delivering undergraduate and the field and opt primarily for the scientific path. recognition. The somewhat novel organizational graduate education around the state, via the In the 1960s, influenced by the national Grinter arrangement for operating “Yooey-Pooey” includes The constituent program activities include: Regional Campus System. This is consistent with report which advocated a dual path for engineering the offering of degrees by both Indiana University its geographic dispersion of satellite incubation education, a College of Technology was launched at and Purdue, with the positive result for students • Technical Assistance Projects. These are activities and industrial extension. There are Purdue that encompassed programs that were more of having access to a very broad curriculum and essentially problem solving consulting efforts three smaller campuses, and an additional very pragmatic than scientific in focus. Currently the selection of majors. The college of engineering that include up to 5 person-days gratis. large partnership with Indiana University. College is organized into seven departments, offers is the Purdue College of Engineering, as is the programs in nine locations around the state, and Purdue College of Science. Most of the other • Manufacturing Extension Partnership. • The Calumet campus, located in Hammond, enrolls nearly 5,000 students with the majority on colleges and units have Indiana University in their This is a long-standing Federal program enrolled 10,054 students in fall 2012-13 managed and supported by the National the West Lafayette campus. The seven departments nomenclature and linkages. Perhaps reflecting its and offers programs in six Schools at the and programs therein are very applications- parentage, IUPUI has become increasingly active in Institute of Standards and Technology Associate, Baccalaureate, and Master’s levels. (NIST) which is very oriented toward oriented. The 14 majors are structured around technology transfer, working through the Indiana specific areas of technology and related issues, University Research & Technology Corporation. process improvement, quality management, • The North Central campus, located in Westville, such as: Aviation Flight Technology; Computer Curricular, research and innovation partnerships and related issues in sub-tier supplier firms. enrolled 6,048 students in fall 2012-13 and Graphics Technology; Industrial Distribution; and with Purdue (and Indiana University) are a major offers programs in a dozen Schools at the Organizational Leadership and Supervision. This theme of the IUPUI Strategic Research Roadmap • Energy Efficiency & Sustainability. This program Associate, Baccalaureate, and Master’s levels. tends to be workshop-oriented and delivered is a major commitment on the part of a research- and its vision of how to make a difference. While in collaboration with the U.S. Department of • The Indiana-Purdue Fort Wayne campus oriented institution to address the staffing and an entire case history can be written about IUPUI Energy, and is mostly focused on energy savings enrolled 13,771 students in fall 2012-13 problem-solving needs of Indiana business and the role that Purdue has played in its success coupled with productivity improvement. and offers programs in ten Schools at the industry, including a commendable effort to bring also speaks to its own mission of serving the Associate, Baccalaureate, and Master’s levels. courses and curriculum to locations around the state. educational and technology needs of Indiana. • Green Enterprise Development. This program focuses on environmental best practices that It should be noted that each of these institutions IUPUI. The most significant example of Boundary Spanning: also benefit general enterprise productivity. is located in a mid-size Indiana city with established Purdue bringing education to where the student Technology Transfer business, industry, and employment prospects. market and employment opportunities exist • Purdue Healthcare Advisors. This activity However, a niche that these campuses are filling is is the Indiana University/Purdue University The Office of Technology Commercialization helps healthcare entities to utilize lean and six for students who have educational aspirations but at Indianapolis (IUPUI). This university was (OTC) operates out of the Purdue Research sigma concepts to streamline, reduce costs, and constraints of family income or social situation launched in 1968 as a joint partnership between Foundation, which as noted above is a separate increase efficiencies in healthcare services. that make enrolling in the residential campus in the city (Mayor Richard Lugar), Indiana University entity that is linked to the University and assists 200 201 INNOVATION U 2.0: New University Roles in a Knowledge Economy Purdue University in management of gifts, contracts, corporate can receive up to three awards to a maximum activity includes investment opportunities at the line of forceful visionary leadership, and the relationships, and business incubation. An of $150,000. A 10-member Trask Innovation incubator facilities located around the state, but many programs and activities that have been advantage of having OTC attached to the Advisory Council is the primary entity making managed by the Purdue Research Foundation. launched to enable Purdue to have a positive Research Foundation is that this kind of structure decisions on the TIF proposals. It is composed There is also a Technology Roadshow program that impact on the lives of Purdue students and Indiana often helps to keep the tech transfer functions of external business leaders, leaders of the Purdue is led by the Foundation and involves the OTC residents. As suggested many times, Purdue is a out of college or department politics. Research Foundation, representatives from the as well. These are free events (including lunch) place that seems to reach farther and try harder office of the Vice President for Research, and that are open to investors and potential business than many other institutions. It is not located OTC has compiled a commendable record of Purdue faculty and staff members with knowledge partners, and which feature presentations by in a large and rich metro area. West Lafayette, intellectual property management and transfer, about technology commercialization. Purdue faculty and staff of emerging technologies Indiana has more in common with Clemson, including a growing practice in commercializing with significant business potential. Consistent South Carolina than with Santa Clara County, inventions via startup companies. In terms of either In addition to the TIF administered through with Purdue’s statewide orientation discussed CA or Raleigh-Durham-Chapel Hill, NC. But, gross metrics or better yet, normalized measures of OTC, the Purdue Research Foundation has other above, these are located in various venues all starting early in its history, Purdue has consistently “base hits” per unit of research expenditures, Purdue programs to foster innovation and commercial- over the state and happen several times a year. reached out farther across its state, nurtured more does well. In FY2012 data from the Association of ization. The Emerging Innovations Fund (EIF) is 4 creative partnerships, and succeeded in creating University Technology Managers, the university primarily focused on companies that are based on The Purdue Technology Centers are incubating reported 356 invention disclosures, 77 licenses Purdue inventions and/or early stage companies that more productive industry-business partnerships high-technology companies throughout Indiana. involving technology and innovation than most or options, 54 US patents secured, gross royalty are based in the Purdue Research Park. Support can With locations in West Lafayette, Indianapolis, income of $4.85 million and 5 startup companies. be in the form of seed investments or loans, with US universities. It is rare to find a university as Merrillville, and New Albany, the centers create active as Purdue is in incubating startup companies, These outcome metrics are commendable, and even funding ranging up to $150,000. Support is often dynamic entrepreneurial business environments to more so when one looks at normalized “batting linked to various milestone events and the OTC is offering industrial extension services, operating attract high-technology companies and to launch averages” such as inventions per unit of research the entity that typically works with applicants in regional educational delivery programs, and new startups. The Purdue Technology Centers expenditures. OTC engages faculty, staff and the development of proposals. Applications include running research parks in several locations around offer business coaching, access to capital and talent, student inventors, would-be entrepreneurs and an approximation of a full business plan, including the state. Its efforts to enable the launch and meeting space, business equipment, and a variety potential external partners and licensees via a very proposed financial plan, management team, IP flourishing of IUPUI are particularly noteworthy. of offices and laboratories. Other joint efforts informed and experienced staff, on-line tools and description, and proposed capital expenditures. between Purdue and other Indiana campuses And Purdue continues to push that agenda series of outreach events. License revenues (minus The applicant must also specify the customer include: the Nanotechnologies New Ventures further with new program ideas, new relationships, OTC costs) are distributed in a formula of 1/3 to problem, the solution being developed, the market Competition, a partnership with the University of and new approaches to doing better at what inventors, 1/3 to the inventor’s department and opportunity, illustrative customers, business model, Notre Dame, for nanotechnology researchers and it already does well. To a significant degree 1/3 to the Trask Innovation Fund (TIF), which and other aspects of the enterprise. Interestingly, innovators from across the State of Indiana; the Life the case histories in volumes like this too supports Purdue technology commercialization. a Student-Managed Venture Fund graduate course Sciences Business plan Competition, which draws often sound like a mishmash of descriptions offered in the Krannert School of Management The primary tools of the Trask Fund are in the involves students in conducting the due-diligence, participants from around the country to compete of worthy activities, with sometimes little form of grants up to $50,000 to campus inventors reviewing startup funding applications, and for $100,000 in prizes; and, the Purdue University understanding of how these things fit together. to support commercial development such as Calumet Big Sell Entrepreneurship Elevator making funding award recommendations One of the more interesting developments in developing working prototypes, and reducing the to the Purdue Research Foundation. Pitch Competition with $60,000 in cash prizes. invention to practice. If license royalties come to universities “doing technological innovation” is pass, the inventor has agreed to dedicate the initial OTC also works with accredited investors Summary and Parting Comments the continuing effort to engineer collaboration and communication across different program funds to repay the TIF award. Competition for looking for opportunities among businesses located The previous several pages have attempted components. Purdue’s relatively new Innovation the TIF award includes a written proposal plus a in the Purdue Research Park, as well as emerging to document the historical evolution, the long and Commercialization Center provides short “pitch” to a TIF Advisory Council. Inventors companies coming out of OTC activities. This 202 203 INNOVATION U 2.0: New University Roles in a Knowledge Economy centralized coordination and online access to nearly 40 Resources (programs and activities; most described above) and a fairly slick website to compare, contrast and engage. Purdue continues to be a benchmark campus in terms of fostering and enabling technological innovation, and via Stanford University* that activity, serving the people of Indiana.

Endnotes From its onset, the history of Stanford University is In 1885 Jane and Leland executed a deed of replete with aspirations and visions to join scholarly trust transferring the Stanford land and a financial 1 Wood, K.M. (2011). Gridiron Courage: The Navy, pursuits and real life outcomes. The university was bequest that mandated the development of a Purdue, and World War II. (Masters of Arts thesis, established in 1891 by Leland and Jane Stanford “university of high degree.” In addition to money, Department of History, Indiana University). in honor of their only son, Leland Stanford Jr., the bequest included 8,800 acres in Palo Alto, 2 National Science Foundation, National who died at a young age of typhoid fever. Leland California. The availability and use of this “private Center for Science and Engineering Statistics, Stanford Sr. was an entrepreneur who made his land grant” has played a significant role in Stanford’s fortune supplying goods to gold prospectors and impact on the regional economy to this day. FY2011. Table 14. Higher education R&D as one of the “Big Four” investors in building expenditures, ranked by all R&D expenditures, the Central Pacific link of the transcontinental The bequest launched an intensive six-year period by source of funds: FY2011. Table 15. Higher railroad. He had also been a Governor of California of planning and building. For the latter Stanford education R&D expenditures, ranked by all and a US Senator. Prior to the founding of the brought in Frederick Law Olmstead to design the R&D expenditures, by R&D field: FY2011. university, Leland Stanford acquired extensive campus layout and develop the architectural style. 3 This was mentioned in Acting President acreage in the vicinity of the small community of FLO, as he was known, was generally considered Timothy Sands’ commencement speech Palo Alto, with aspirations to develop a world-class among the leading lights of planning and design, of December 16, 2012. stock farm to raise trotting horses. That plan with New York City’s Central Park as one of his came undone with the death of Leland Jr. in projects. David Starr Jordan, a Cornell graduate and 4 Association of University Technology Managers. 1884 while the family was traveling in Europe. then President of Indiana University, was brought (2013, August). AUTM U.S. Licensing Activity in as the initial Stanford President. In his opening Survey: FY2012. Deerfield, IL: Association The impetus for the university came out of the day speech Jordan set the goal of developing a of University Technology Managers. parents’ grief and the idea that “the children of unique university with the following challenge California shall be our children.” The parents to the small group of faculty and students: toured some of the more prominent East Coast institutions to develop their own vision of what the It is hallowed by no traditions; it is hampered new university should become and how it might by none. Its finger posts all point forward. be different from the established models of the era. And it was to be different. It was to be He was to stay for 22 years and is an icon co-educational, non-denominational, and emphasize in the university’s history. After the founding a “practical education to produce cultured class of 555 students in 1891, served by 15 and useful citizens.” professors, the university slowly grew, although

204 * This case was written by Louis Tornatzky, Jennifer Fuss, and Elaine Rideout. INNOVATION U 2.0: New University Roles in a Knowledge Economy Stanford University it was resource-constrained. Leland Stanford Between the early 1900s and mid 20th century most anywhere. A part-time program, Stanford Bush, a person who was to play an important died in 1893 and the financial uncertainties Stanford also defined itself in terms of the colleges Ignite, is oriented toward entrepreneurship. The role in moving US universities into more active continued until the estate went through probate and schools that would comprise its intellectual School of Earth Sciences enrolls 150 undergradu- participation in research and technological in 1898. In 1899 Jane Stanford transferred $11 agenda. There are currently seven schools. The ates and 350 grad students, including a doctoral innovation, particularly during World War II. million in funds to the university. She continued largest is the School of Humanities and Sciences, program. The Graduate School of Education has an After MIT Terman returned to Stanford to to hold a guiding and loving connection to the encompassing 50 departments and degree programs enrollment of roughly 400 students at Masters and teach electrical engineering, becoming a leader university, particularly to see out the initial and awarding about 75% of all degrees. The broad doctoral level, with a significant orientation toward in that field. In addition, he tirelessly worked to tranche of construction, until her death in 1905. mandate of the college spans the humanities, leadership development in educational settings. languages and literature, and the physical and life link the university’s research and education efforts Stanford University went on from this start sciences, as well as several research centers that One of the things that characterizes the to the interests of business and government. He to develop and establish the schools that defined are interdisciplinary. The College of Engineering educational and research programs at Stanford is a was concerned that there be jobs in the region for its mission, including engineering, medicine, is the second largest academic unit, enrolling very energetic and accepting interdisciplinary and Stanford graduates, as the contiguous Santa Clara education, and law. While building out the core over 4,500 students. It is organized into nine multidisciplinary approach. Current President John valley of that era consisted of a sleepy small town campus continues up until the present, much departments and 84 centers, institutes, laboratories Hennessy has opined and advocated that he would in a rural region. In 1939 he encouraged students of the land grant has yet to be developed. The and programs. The 3rd largest school is the School like to produce “T-shaped” students, with expertise William Hewlett and David Packard to commercial- university is now the largest private owner of of Medicine, which encompasses about 450 medical in a core discipline, but extensive involvement in a ize their work in audio oscillators, which led to the undeveloped land in Santa Clara County. Stanford students as well as 700 M.S. and PhD students in broad array of disciplines, and the ability to work garage founding of what became Hewlett-Packard University land holdings are parts of one other allied disciplines. Clinical training is provided with others on significant problems that are not and some consider the birthplace of Silicon Valley. county, two cities, and two towns. As we shall understood or solved from a narrow perspective.1 through Stanford Hospital and the Lucille Packard During World War II Terman returned east see other portions have been strategically utilized Children’s Hospital. As with all Stanford schools to head the Radio Research Laboratory (RRL) to advance its historic vision of being connected Stanford has been notable from its founding there are a wide range of interdisciplinary research at Harvard that focused on radar countermea- with the real worlds of business and technology. and struggling early years for engaging in creative opportunities that connect medical students and practically-oriented partnerships with sures and by the end of the war had a budget and Enrollment grew slowly well into the 20th and faculty members across the campus. This is business and industry. It also should be noted that staff larger than that of Stanford. The relevance century, with 3,460 undergraduates and 1,782 likewise true with the Law School which, while California was “out there” on the Pacific Coast of this to Stanford’s history is that it enabled some graduate students enrolled as late as 1940. Like enrolling less than a few hundred J.D. candidates, when Stanford was founded and many relatively reconnection between Terman and Bush who was all American universities, the post World War II is also involved in 21 joint degree programs that adjacent areas were yet to become states. From playing a major role in the Manhattan Project period was marked by rapid growth in enrollment reach every other School across the campus. The the beginning faculty members and leadership and the general ramp-up of US R&D to support as well as the process of becoming a world-class Law School is also a partner in research centers encouraged engagement with real world issues. the war. It was also an opportunity for Terman to research university. The latter was of course and projects that involve students and faculty become more familiar with the robust technology helped along by the newly available and rapidly members elsewhere in the university. In addition Dr. Fredrick Terman, who joined the faculty partnerships with industry that MIT had been increasing opportunities for Federal research to the J.D. degree, the Law School offers Masters in 1925 and later on served as dean of engineering successfully forming. Vannevar Bush had also laid funding. Between 1940 and 1970 undergraduate programs more oriented toward legal research and and provost, was possibly the most important out a blueprint for the growth and development enrollment increased nearly 80%, but in comparison policy issues. The Graduate School of Business leader in the development of the university’s role of America’s post-war scientific enterprise in his as an engine of economic growth and innovation. 2 graduate student enrollment increased 192%. serves about 1,000 students in an MBA program, report Science, the Endless Frontier.” The report Since 1990 graduate student enrollment has an M.S. in Management, a PhD program, and Terman received his undergraduate education at was commissioned by Franklin Roosevelt but exceeded undergraduate student enrollment by a part-time program focused on entrepreneur- Stanford (where his father was a distinguished implemented by President Truman when the a significant margin. Fall 2012 enrollment was ship and innovation. The School also offers a faculty member) following World War I—and National Science Foundation was established in 15,871 of which 55.8% were graduate students. wide range of executive education programs that went on to MIT for graduate work. While there 1950. It proposed an intensive effort to advance serve Silicon Valley as well as executives from he was the first dissertation student of Vannevar science and technology in the service of the nation’s

206 207 INNOVATION U 2.0: New University Roles in a Knowledge Economy Stanford University foreign policy and welfare that would include example, as per National Science Foundation oriented college of medicine; 2nd in graduate Propinquity to Stanford also seemed to play an unprecedented and significant increase in the FY20113 data on higher education research level entrepreneurship; 3rd ranked law school; a significant role in where respondents started funding of university research by the Federal expenditures, Stanford ranks 9th at $907.9 1st in environmental engineering, and so on. companies, particularly those who graduated government. After NSF was launched, the Federal million, with the substantive foci concentrated since 1990, with 25% of that group forming their government went on to found the many academic in the life sciences ($555.9 million), engineering However, returning to the primary focus of this companies within 20 miles of the campus. Of research funding programs that we see now. ($121.7 million), physical sciences ($97 million) book—how, via leadership, vision and exemplary all alumni-started firms 39% were within 60 and math and computer sciences ($30.9 million). programs, universities can influence the pace of miles. Estimates drawn from the data suggest that Terman returned to Stanford after the war, However, while some have argued that Stanford innovation—Stanford has done detailed and recent 39,900 “active companies can trace their roots to and as Dean of the College of Engineering, he is excessively focused on serving Silicon valley assessment of that question. This is particularly Stanford. If these companies collectively formed an was determined to enhance the scope of research and the technology clusters therein, it is worth so in terms of trying to document the extent independent nation, its estimated economy would and industry partnering. Those aspirations were noting that the social sciences draw $22.7 million of campus impact on regional and national be the world’s 10th largest.” The report also goes matched by J. Wallace Sterling who became in funding, non-science and engineering fields innovation outcomes. This is found in a 103-page on to note that in addition to for-profit enterprises 4 President in 1948. Terman is credited with such another $39.5 million, and environmental sciences project report available on the Stanford College the Stanford experience also seems to accelerate programmatic innovations as the Research Park, the $26.1 million. It sounds like the kind of breadth of Engineering website. The second author is alumni involvement in social entrepreneurship Engineering Honors Cooperative Program, and the that was a goal at the founding of the institution. William Miller, a professor emeritus of computer and innovative non-profit organizations. concept of building academic “steeples of excellence,” While the bulk of research funding comes from science and a former provost, who was there composed of clusters of nationally prominent the Federal government (72.2%) a reasonably when Silicon Valley blossomed; the first author, The authors took great pains to argue that it is professors and research collaborations. The policy healthy fraction comes from business (6.4%) which Charles Eesley, is an Assistant Professor and the total “entrepreneurial ecosystem” of Stanford that permitted faculty members to consult one exceeds the national average and which may be Faculty Fellow in the School of Engineering. and not just its strengths in engineering and the day a week was established. Salary-splitting was sciences. Thus students benefit from “a robust underestimated since it is not clear how much of The survey on which the report was based introduced that encouraged faculty members to this percentage includes funding through affiliate liberal arts environment that gives them the broad secure external funds to buy out a portion of their was sent to all living Stanford alumni for whom world view they need to be innovators and leaders of relationships, corporate foundations, and the like. contact information was available, or 143,482, and salary, which enabled more time spent on research tomorrow…” In effect, it is the culture of the place. and more potential faculty hiring slots. Similarly, Other indicators attest to Stanford’s status as the overall response rate was 19%. Surveys were graduate students were encouraged to work with a first rank institution. Among its “community also sent to 1,903 Stanford faculty members, and University Culture: industry partners in the area who could enable or of scholars” there are 19 Nobel Laureates, 24 resulted in returns of 59.6%. Some findings: Goals and Aspirations financially sponsor their thesis or dissertation work. MacArthur Fellows, 3 National Humanities Medal • 29% of respondents had founded a To a significant degree the organizational Industrial Associates (now Affiliates) programs winners, 18 National Medical of Science awardees, for-profit or non-profit organization; were established to support faculty research via 152 members of the National Academy of Sciences, culture of Stanford today is derived from the one tax-deductible gifts to the University. Terman 95 National Academy of Engineering members, 66 • 32% of alumni “described themselves” as that began to evolve during the Sterling-Terman served as dean of the School of Engineering until members of the Institute of Medicine, 31 National having been at some point an investor, early period after World War II and has matured ever 1955 and as provost until his retirement in 1965. Academy of Education members, 51 members employee or board member in a startup, since. After boiling down the history, current No other person could more legitimately claim the of the American Philosophical Society and 4 and 25% of responding faculty attested to activities, notable triumphs, and marker events, this is what the chapter authors see as some of the most title of father of Silicon Valley, and much of what Pulitzer Prize winners. TheU.S. News & World having founded or incorporated a firm; important elements of the culture at Stanford: followed over the next nearly 50 years at Stanford Report ratings and rankings are replete with high has origins in this period. These will be detailed in placements by Stanford Schools and Programs, too • Among respondents who had become an • Stanford’s culture is about a liberal, interdisci- this chapter, but some highlights are worth noting. many to list all of them but some illustrations: tied entrepreneur in the preceding 10 years, “55 percent reported choosing to study at Stanford plinary and multidisciplinary mindset approach for 1st with Harvard as best Business School; 2nd to everything. From the founding years the For one, in the current age of now research- in undergraduate engineering; 2nd as research- because of its entrepreneurial environment.” intensive universities, Stanford stands out. For expectation has been that faculty and students 208 209 INNOVATION U 2.0: New University Roles in a Knowledge Economy Stanford University

would be engaging the world from many and a set of activities pursued by the entire million in 1992 to Silicon Graphics. President and faculty through fellowships, research grants, perspectives, methods and premises, and would University community. It is part of the Hennessy also co-founded a semiconductor scholarships, and campus renovations.10 endlessly fuss over the differences. For example, culture; it is also enabled and enhanced by company in 1998, Atheros Communications, which the most recent major multi-year fundraising the interdisciplinary mindset of the campus. was bought in 2011 by Qualcomm for $3.1 billion. At this point let us turn the calendar back to campaign ($6.2 billion), The Stanford Challenge, continue the Terman- Sterling story that we began had as a key priority “to reduce traditional Leadership Keeping with the Stanford tradition of faculty a few pages back. To stretch a metaphor, the disciplinary and organizational boundaries to engagement with real problems in both public Sterling-Terman era and the Hennessy administra- The university’s leadership has built a significant and private sectors, President Hennessy sits on the tion, can be understood as the most visible bookends bring together experts from all across campus.”5 portion of Stanford’s unique culture, both past board of directors of both Cisco and Google. He of a line of leadership that has fostered the Stanford An example will be a Center on International and present. What sets these leaders apart is argues that companies such as these face a similar culture and institutional accomplishments. It would Security and Cooperation that blends experts a tradition of leading by example. Stanford’s challenge to that of a university: “How do they be fair to say that Wallace Sterling and Fredrick from political science, engineering and physics. current president John L. Hennessy, now into maintain a sense of innovation, of a willingness Terman were significantly responsible for launching • Stanford is and has been for most of its history his second decade in office, brings to the table to do new things?”7 President Hennessy’s the entrepreneurial culture, now so prevalent at a place that welcomed many kinds of people, a background not only in academics but also in experience in the startup world has furthered his Stanford, that President Hennessy and others have in terms of gender, beliefs, backgrounds, technological innovation and entrepreneurship. ability to lead a university with a culture so rich expanded to the university’s benefit. Inaugurated and wealth. After all, Stanford had women Dr. Hennessy received his bachelor’s degree in in innovation. This real world experience has as Stanford’s fifth president in 1949, Sterling went students from day one while many of its elite electrical engineering from Villanova University first and foremost led to a greater understanding on to serve the university for almost twenty years, brethren on the East Coast would debate that before moving on to earn his master’s degree and of organizational change and development: “For until 1968. For many of those years Sterling and prospect for another 60 or 70 years. While doctorate in computer science from the State large organizations, change is a very hard thing. Terman overlapped one another with Terman perhaps too much has been made of it, the University of New York at Stony Brook. He arrived So you can learn in a smaller company how to serving as Dean of Engineering from 1946 to 1955, early Stanford was only a few decades removed at Stanford as an assistant professor of electrical deal with that kind of change.” Working with and then as Sterling’s Provost and Vice President from gold-seeking rascals and the nearest city engineering in 1977 and reached the rank of full Silicon Valley companies has also taught the during a solid decade of major culture-changing rife with madames, hookers, and hustlers. professor in 1986. Dr. Hennessy also rose through president how to recruit and retain a talented and institution-building accomplishments. the leadership ranks to serve as chair of Stanford’s university faculty as well as budget management.8 • Stanford is engaged concurrently in the world computer science department from 1994 to 1996 Sterling entered into the presidency with the of scholarship and the world of business and and then as dean of the School of Engineering President Hennessy’s leadership has certainly university facing financial difficulties still left over community. This is reflected in the mindsets of beginning in 1996. From dean he progressed provided him with a significant budget to manage. from World War II and before. The university’s many of its key leaders, as well is in the changes to Provost in 1999 before his appointment as The president serves on Stanford’s endowment endowment was struggling and faculty salaries that they have wrought in various academic Stanford’s tenth president in October 2000.6 board, and from 2000 to 2012, Stanford’s also felt the pain of the university’s financial programs and outreach functions. Illustratively, endowment grew to nearly seventeen billion condition.11 During his time as president, it was an early adopter of practices and policies Much of Hennessy’s academic work has been dollars. Stanford arguably benefits from Dr. Sterling addressed the issue of money through that were used to commercialize faculty in the area of computer architecture design. Hennessy’s Silicon Valley ties in the form of gifts, the fundraising of millions in gifts and bequests. inventions in Silicon Valley and throughout In addition to co-authoring two textbooks on the donations, and fundraising help from Stanford Sterling also significantly improved the graduate the world. In effect, Stanford and a few subject, he has performed research on a revolution- alumni and local companies.9 President Hennessy program as well as the student-professor ratio other universities—several in this volume— ary piece of computer technology, reduced has also demonstrated his own abilities as a gifted and pushed Stanford towards a reputation as a invented university technology transfer. instruction set computer (RISC) architecture, fundraiser through The Stanford Challenge, a world-renowned university, including the establish- designed to increase processor efficiency. Based successful five-year program that raised $6.2 billion ment of many branches overseas.12 Richard • Stanford, because of fate and leadership, on this research, President Hennessy co-founded for the university from 2006 to 2011. The funds Lyman, Stanford’s seventh president, credits the has also been an early leader in fostering MIPS Computer Systems in 1984, a designer of from this program encouraged interdisciplinary university’s “phenomenal rise in the later 1950s entrepreneurship as both a field of instruction microprocessors. The company sold for $333 and collaborative interactions among students and 1960s” to the ability of Terman and Sterling

210 211 INNOVATION U 2.0: New University Roles in a Knowledge Economy Stanford University to work together. One of the greatest accomplish- After Kennedy stepped down, the less exciting (STVP), which is located in the department consist of individuals with significant operating ments resulting from this partnership was the but heartening administration of Gerhard Casper of Management Science & Technology in the and/or investment experience in a startup. establishment of the Stanford Industrial Park, (1992-2000) ensued. Casper was an international School of Engineering. However, STVP is visible One of the more interesting information utilities now known as the Stanford Research Park. legal scholar, and his leadership was characterized by and accessible campus wide. Moreover, many that is enabled by STVP is ECorner (http:// steady growth in Stanford’s reputation, innovations of its activities are available to students, faculty ecorner.stanford.edu), an online compilation of Between 1970 and the onset of the Hennessy in instruction, and the founding of several centers and entrepreneurship programs everywhere. thousands of free videos and podcasts available administration, Stanford presidential leadership and programs that reached national prominence. to anyone. There are thousands of plays per day was more visibly preoccupied with issues somewhat Caspar also addressed issues of student financial Curricular Programs distant from technological innovation. The and millions over the years. All of the materials support, including the creation of a Graduate STVP offers roughly thirty courses that range Richard Lyman presidency (1970-1980) was have to do with entrepreneurship and the topics Fellowship program. A program of small group from introductory to graduate level, with many successful in completing a $300 million Campaign include: Creativity and Innovation; Opportunity studies, Stanford Introductory Studies, was launched being delivered multiple times over the academic for Stanford, then the largest fundraising effort Recognition; Product Development; Marketing for students during their first years at Stanford. Part year. Engineering faculty provide instructional in the university community. However, much of and Sales; Finance and Venture Capital; Leadership of Caspar’s mission, which he clearly accomplished, leadership to most of the courses but there is the campus was preoccupied with the national and Adversity; Team and Culture; Globalization; was to maintain Stanford’s burgeoning relationship also extensive involvement of venture founders political turmoil over the Vietnam War, which Social Entrepreneurship; and Careers/Life Balance. with the technological colossus of Silicon Valley, and investors from the contiguous Silicon Valley accelerated during his decade as president. Lyman Most of the presenters are experienced and active but also maintain and enhance Stanford’s presence community. The courses are also balanced between was dedicated to maintaining order while strongly entrepreneurs, and the material is presented and programs in the humanities and undergradu- undergraduate and graduate levels. A few are supporting peaceful dialog about the war and in a fairly lively manner. There are relatively ate teaching. President Caspar was an excellent particularly tailored to PhD-level students. For civil rights issues. Peter Bing, a Trustee in that fewer presentations by university professors or and popular leader who fixed many problems and example, one seminar is built around presentations period, described Lyman’s role as a “hero in an era administrators (unless your President is a successful continued to build the reputation of Stanford. from entrepreneurial thought leaders, drawing when very little was heroic.” Sensitive to ethnic serial entrepreneur, like John Hennessy). heavily on Silicon Valley connections. The course slights, he banned Stanford’s use of the Indian Boundary Spanning: is sponsored by an internationally prominent as a team symbolic mascot, earning the scorn of Co-Curricular Programs Entrepreneurship venture capital firm, and the connectivity to many alumni. Despite these distractions, Stanford material and participants is fairly profound. The The Stanford Entrepreneurship Network was still growing in prominence as a center of Given the pervasive culture and practice of thought leaders’ seminar is also open to the public. (https://sen.stanford.edu/members) is run by research and innovation. As discussed below, it entrepreneurship on the Stanford campus and in STVP, and is a good place to start in order to link was during the Lyman era that the Stanford Office the contiguous Silicon Valley, it should not be In addition to these more widely available to dozens of entrepreneurship activities elsewhere of Technology Licensing was formed, having surprising that both curricular and co-curricular courses, STVP offers on a very competitive basis in the university. For example, the Graduate School increasing successes in patenting and licensing. programs in entrepreneurship are well represent- the Mayfield Fellow Program (MFP). Admission of Business has a number of organized activities This included the Cohen-Boyer technology deal ed on campus. Interestingly, Stanford does not to the program is determined during winter that include a Center for Entrepreneurial Studies late in the decade, which not only resulted in have formal undergraduate or graduate degree quarter, via application documents as well as that enables students and faculty to get further handsome financial returns to the inventors and programs in entrepreneurship. Instead, Stanford in-person interviews with faculty members networked within the College, as does the Graduate the universities, but also helped to accelerate the excels in an informal ubiquitous approach that and industry mentors. Fellows are chosen by School of Business Entrepreneurship Club, which growth of biomedical industry in Silicon Valley. offers a number of experiential courses, networking March, and start the program during the spring has been around for decades and boasts a rich menu Unfortunately, after these successes the wheels events, and other opportunities around the theme quarter. Summer employment consists of a paid of talks, presentations and events. So too does the came partly off as a function of an indirect cost of entrepreneurship. Many of these are also placement at a start-up company pre-screened by Center for Social Innovation, with a little different controversy with the Federal government during available in executive education programs and via the program directors. In fall quarter students substantive tilt. Another high point for the Stanford the Donald Kennedy presidency (1980-1990). online communication offerings. Most prominent take a required “debriefing” course. Mentors Entrepreneurship Network is Entrepreneurship is the Stanford Technology Ventures Program Week, held during winter quarter. Dozens of

212 213 INNOVATION U 2.0: New University Roles in a Knowledge Economy Stanford University events—lectures, panel discussions, hands-on work. In the following pages we will describe a few Research Park. Recalling the original vision of particular projects. Affiliate program contributions engagements—draw in hundreds of participants. illustrative examples, historical and contemporary. the Stanford land grant, companies could not are treated as gifts by Stanford, and are subject buy building sites but could get long-term leases. to a modest (8%) indirect cost fee. (Stanford Outside of the GSB and School of Engineering Stanford Research Park. An important benefit Early occupants, in addition to Varian, included also encourages sponsored projects in which a there are other entrepreneurship-oriented of having available land since Stanford’s founding Hewlett-Packard (whose world-wide headquarters company negotiates a particular project, pays full organizations that have multidisciplinary was the ability to create facilities-based programs are still in the park), Eastman Kodak, Beckman direct and indirect costs, but has options to license orientations. The Hasso Plattner Institute of that reinforced and expanded the university’s Instruments, Syntex Pharmaceuticals, and Xerox inventions deriving from the work.) Over the Design at Stanford (d.school), which is discussed aspirations and culture. One important example Corporation. The original park, although modest years hundreds of companies have participated in 14 in more detail below, is a center which bridges was the contiguous research park implemented in by today’s standards, served as a prototype for Affiliate Programs, with the relationships having design thinking and entrepreneurship. Of note, the 1950s. The idea of a park setting for industry later ventures such as North Carolina’s Research positive benefits for company and university alike. 13 Tina Seelig, Executive Director of the STVP, partners developed when Varian Associates, an Triangle Park and became a de facto incubator for is one of the key instructional leaders in the early technology spin-off company, approached science-based technology innovation in Silicon Honors Cooperative Program (HCP). Given d.school. She is also Director of the Center for the university with a proposal to build its facility Valley. In addition to being a national model for the significant degree of substantive commonality Engineering Pathways to Innovation (Epicenter) an on leased university land in order to be adjacent to a research park, it led to a number of Stanford between Stanford and the companies that have NSF-supported initiative to improve engineering the intellectual resources of the institution. Plans programmatic innovations that had linkages to Park populated Silicon Valley and the technology education by inserting more innovation and were already afoot to build the Stanford Shopping tenants as well as to other companies in Silicon industry more generally, it is not surprising that entrepreneurial content therein. Recently the Center as an income-producing investment. Dr. Valley. These include the Industrial Affiliates creative vehicles for educational partnerships Stanford Law School announced a new senior Fredrick Terman, who was then dean of the School Programs and the Honors Cooperative Program. have blossomed at Stanford. The HCP is the faculty appointment to also head the Juelsgaard of Engineering and a supporter of the Varian most prominent partnership, with 175 participat- Intellectual Property and Innovation Clinic, a new brothers’ venture, built on this proposal with a Industrial Affiliates Programs. As the Stanford ing companies. Graduate course work is offered component of the Mills Legal Clinic. The Juelsgaard concept that companies with technological interests Research Park blossomed, along with the meteoric primarily via instructional television by the Clinic will work with law students on complex complementary to Stanford would also be interested growth of Silicon Valley, many companies wanted Stanford Center for Professional Development. issues in how the law can “promote (or frustrate) in locating near the university. Since the founding a closer relationship with Stanford-based research Each academic quarter approximately 70 graduate the inventiveness, creativity, and entrepreneurship charter specified that these lands could not be programs and activities. There are currently over courses are offered, with electrical engineering that provide the real engine for economic growth.” sold, the concept of long-term leases to partner 50 Affiliate Programs in operation, with opportuni- accounting for a plurality. Some courses are The Graduate School of Business and the School of companies and other entities became the vehicle ties for companies to link with academic teaching offered on campus as well. Individuals study for Engineering offer a joint two-quarter course entitled of choice. The Master Plan of 1953 specified most departments, centers, forums or institutes. For the MS degree as well as Graduate and Professional Entrepreneurship Design for Extreme Affordability. partnership objectives, expectations and procedures. an annual fee that ranges considerably, companies Certificates. In any given quarter, enrollment is Industry tenants would be technology-focused, support research, attend meetings and events, well into the hundreds. Tuition is typically paid Boundary Spanning: preferably with some link to Stanford programs and receive copies of reports (including preprints by companies that are members of the HCP, and University, Industry and Community and curriculum. Land leases were to be signed for yet to be published) and program-related students can only enroll if they are working for an a maximum of 99 years, and tenants were restricted publications. Nonetheless, this access is not HCP member company. Annually, several thousand Given the generally accepted notion that by various regulations (limited building heights, privileged, as presentations and reports are routinely individuals take at least one class through the HCP. Stanford was a major “inventor of Silicon Valley,” facilities would occupy only a fraction of the made available to other interested parties. One along with the many examples of Stanford leadership Centers and Institutes. In most research- leased parcel, mandatory setbacks of construction, additional and very positive feature of the Affiliates being deeply involved in the contiguous region, intensive universities the “center” or its equivalent parking not visible from the street, etc.). relationship is the opportunity to interact with this boundary-spanning section will be somewhat students who might be potential hires. The financial has become the venue in which interdisciplin- delimited compared to other cases in this volume. Subsequently, the university planned and support that companies provide typically is tied to ary and multidisciplinary research and education The boundary-spanning episodes involving Stanford developed a 700-acre park, known first as the a multi-project program of research, rather than takes place. As the other cases in this volume have over the last few decades could fill a multi-volume Stanford Industrial Park, then later as the Stanford illustrated the center/institute organization has also 214 215 INNOVATION U 2.0: New University Roles in a Knowledge Economy Stanford University often been the place where technological innovation on design thinking, the method is distinctly Faculty members and students associated with provides a vehicle for companies to participate. takes place. Not all centers or institutes are focused action-oriented. Again, from the self-description: the Ginzton Lab are primarily drawn from on technological issues; many are wrestling with Electrical Engineering or applied Physics. • Spectrum. This is a center within Stanford important epistemological and substantive issues At the d.school, we learn by doing….. that supports and enables translational in the humanities, the arts, and the social and Our bias is toward action, followed by • The Stanford Woods Institute for the Environment. research that moves basic science findings behavioral sciences. Some centers or institutes reflection on personal discoveries about This is arguably Stanford’s primary locus into practical solutions to improve human are heavily facilities-based, where significant process. Experience is measured by for interdisciplinary research concerning health. Spectrum is significantly supported investments have been made in state-of-the-art iteration: students run through as many environmental sustainability issues. Affiliated via a Clinical and Translational Science Award 15 instrumentation made available to a range of users. cycles as they possibly can on any project. fellows and faculty members are drawn from (CTSA) award from NIH. In addition, all of Stanford’s seven schools, and comprise Stanford researchers also utilize the facilities There are approximately 100 Research Centers The most formidable cohort of centers and roughly 10 percent of faculty and research and staff of the Jill and John Freidenrich Center at Stanford. They are not evenly distributed institutes at Stanford are the provost-approved professionals. The Institute was formed in for Translational Research, which is located across the colleges and schools, and some centers Independent Laboratories, Centers and Institutes, 2004 and its vision is to “create a healthier adjacent to the Stanford Hospitals. The facility have participation from departments and schools of which there are now 17. This initiative was environment now and richer possibilities for includes patient bays, a sample selection lab, across the university. This is a good sign from the launched in 1982, with significant leadership by generations to come.” The research program is pediatric study rooms, remote observation perspective of interdisciplinary and multidisci- then-provost Al Hasdorf. The key organizing organized into the following Centers, Programs, facilities, and various other data collection plinary richness. In addition there are some features of this program are the explicit and strong or Projects: Center for Ocean Solutions; Center capacities. Spectrum is led by a multidisci- centers, labs or institutes that have particular emphasis on interdisciplinary research and the on Food Security and the Environment; Global plinary team of faculty and technical staff. relevance for this project, in that they are tied strong emphasis on “finding solutions” to big Freshwater Initiative; Natural Capital Project; more directly to innovation, technological or problems. As has been noted throughout this OSA and Golfito Initiative; Water, Health • Precourt Institute for Energy. Since 2009 the otherwise. One is the Hasso-Plattner Institute volume the nature of technological innovation is and Development; and Water in the West. Institute has served as a hub and organizing of Design. While organizationally located in often found in work that cuts across substantive and entity for energy-related research and education the School of Engineering, the d.school, as it methodological boundaries, a point of view that has • Stanford Bio-X. Located primarily in the James at Stanford. As an Institute, it coordinates is fondly known, brings “design thinking” to been part of the Stanford culture since its founding. H. Clark Center, Stanford Bio-X pursues a with over 22 academic departments, two dozen courses that are available to students from across broad spectrum of research activities associated centers and institutes, and over 200 faculty and the University. In their self-description: Below are listed a sample of the provost- with human health and disease. It draws staff. A smaller group of 24 Stanford faculty approved programs that clearly exemplify inter- faculty (over 500 to date from 60 departments) members serve as Precourt Institute Fellows, who The d.school does not grant degrees; disciplinary problem-solving. and graduate student participation from help the organization identify new directions instead it serves as a university-wide across the university, although principally in and build connectivity within the University. • This lab works in three hub for innovation where students from The Ginzton Laboratory. the biosciences, medicine, engineering, and The Institute also operates a seed grant, proof-of- intersections of science and engineering fields: engineering, the arts, medicine, education, computational sciences. Its Interdisciplinary concept program for faculty researchers, as quantum science and engineering, photonic law and the social sciences come to take Initiative Program (IIP) funds collaborative well as various activities designed to facilitate science and engineering, and nanoscience classes together and work on projects. research projects (about $150,000 and 2-3 connections and research partnering across and engineering. It explores applications in years in duration) that are so “forward-looking disciplines. These include a weekly Energy The d.school draws heavily from the intellectu- areas such as sensing, communication, biology it may not work,” but which might yield huge Seminar program, a Stanford Energy Newsletter, al tradition of IDEO, a Palo Alto-based, and and medicine, energy, and environment. The benefits. The Bio-X Stanford Interdisciplinary and an annual one-week Energy Conference. Stanford-linked, design firm. David Kelley founded lab has a 50 year history at Stanford, but Graduate Fellowships (SIGF) supports It also supports the Stanford Energy Club IDEO and now heads the d.school. While the recently occupied new laboratory facilities in dissertation projects that have the potential that involves upwards of 600 students, intellectual traditions of the d.school are centered the Spiker Engineering and Applied Science for significant benefit and which often also cut researchers, and local energy professionals. building, in the Science and Engineering quad. across disciplines. The Bio-X Corporate Forum

216 217 INNOVATION U 2.0: New University Roles in a Knowledge Economy Stanford University

SLAC-Stanford’s DOE Partnership. In a An Almost Community Partnership: proposal and negotiation process was well worth the In addition, Stanford faculty will be available to manner not unlike Cal Tech’s Jet Propulsion Lab, StanfordNYC. Stanford recently engaged in a bold investment. The StanfordNYC team declared in a advise CCNY students in marketing technological Stanford has benefitted from a 50-year working venture to develop a partnership with New York press release that Stanford “received tremendously innovations. Juniors, seniors and recent graduates relationship with a Federal agency through a City and establish a presence on the East Coast. In positive visibility” on the East Coast and maintained from New York will also have the opportunity to university-based state of the art facility. The early 2011, the university submitted an expression its “reputation for exploring bold ideas.”17 Stanford participate in the Stanford Research Experience partnership was enabled by Stanford’s land of interest to the city of New York to compete believes it has stayed true to its founding principles for Undergraduates Program as well as attend holdings as well as the leadership of the university with other universities for the chance to build a through this venture. Alyson Yamada, president the Summer Institute for General Management when this all came to pass in 1962. Now known graduate school of applied sciences and engineering. of Stanford Women in Engineering, agreed in through the Stanford Graduate School of Business. as SLAC National Accelerator Laboratory, the Stanford’s final proposal in October of 2011 her statement to the Stanford Daily, “Stanford facility occupies 430 acres of Stanford land, discussed a $2.5 billion, 1.9 million square-foot teaches its students to be entrepreneurial like Stanford and CCNY believe students and west of the main campus. It is one of the U.S campus on Roosevelt Island that would provide an that…practice what you preach, right?”18 faculty from both locations will reap the benefits of Department of Energy’s 10 national laboratories opportunity for over 2,000 graduate students and the partnership through more research opportuni- and is operated by Stanford, under contract 200 faculty members. “StanfordNYC” planned Stanford@CCNY. Stanford is persistent. It is ties and a chance to bring Silicon Valley to the 20 with the DOE. Approximately 1500 full time to offer graduate degree programs in engineering, still pursuing a “boundary-spanning” presence on East Coast. The partnership also provides a employees work at SLAC, and the laboratory is applied sciences, technology and business.16 The the East Coast through community partnerships chance for both universities to contribute to the structurally a department of Stanford. Annually, a New York campus would enjoy significant ties with in NYC despite the fact that StanfordNYC will New York economy and to cultivate technological large number of researchers from other universities Palo Alto through videoconferencing for faculty no longer become reality. In a University press innovation and entrepreneurship in New York City. and other federal facilities spend weeks or months members, as well as online classes for students and release following Stanford’s withdrawal from the Boundary Spanning: working at the facility. On three occasions connections to Silicon Valley venture capitalists for competition, Stanford officials announced that individuals associated with SLAC have become startup companies. In addition, Stanford would the partnership with CUNY and CCNY that was Technology Transfer part of the StanfordNYC proposal, “will absolutely Nobel prize-winners in Physics, based on work partner with the City University of New York Stanford was both an innovator in and an early continue.” The strengths of both universities are conducted there. Building and operating the and the City College of New York to create an adopter of the practice21 of technology transfer in aligned, as President Hennessy declared that CUNY world’s longest particle accelerator was the original undergraduate degree program for city students a university setting. Stanford’s efforts in this area and CCNY “share [Stanford’s] commitment to impetus for the laboratory, but over the years a and establish a presence in New York before the were initially led by Niels Reimers in the late 1960s, innovation and technology commercialization.”19 number of ancillary facilities and capacities have completion of the campus on Roosevelt Island. which really anticipated the passage of Public Although not directly related to the proposal for been added. These included its X-ray free-electron Law 96-517, the Bayh-Dole Act. Reimers was However, on December 16, 2011, Stanford the Roosevelt Island location, Stanford@CCNY laser, the Stanford Positron Electron Asymmetric an Associate Director of the Sponsored Projects unexpectedly announced the withdrawal of its bid, originally would have provided space for faculty and Ring (SPEAR), the Linac Coherent Light Source Office, but had industrial experience in technology soon after which Cornell University and its partner, classes prior to building StanfordNYC. In addition, (LCLS), and FACET, a test bed for accelerator areas. Heretofore invention licensing at Stanford the Technion-Israel Institute of Technology, were highly qualified CCNY students would have the technologies. Recently, Stanford and DOE have had been farmed out to an external contractor, with selected to build the NYC campus. President John opportunity to participate in joint CCNY-Stanford agreed to extend the lease and operating agreement little visibility, less activity, and not much success. Hennessy stated in a press release that Stanford B.A./M.A. and B.S./M.S. degree programs. another 33 years. The intellectual foci of the In addition, this was the era in which inventions and the city of New York “could not find a way to research conducted here will ensure that Stanford developed under Federal research funding realize [their] mutual goals.” Stanford’s administra- Without Stanford’s physical presence in NYC, will play a significant partnership role in energy would nominally be controlled by the involved tion ultimately determined that the risks and costs this degree program will need to be reworked. solutions that will affect the planet. Moreover, government agency, and very little was successfully to build a campus aligned with the demands of the Although CCNY students will no longer be able the terms of this recent lease allow that further commercialized. In addition, during this period city outweighed the benefits for the university. to pursue a Stanford master’s degree in New York, extensions can be crafted as “mutually beneficial” Stanford and CCNY intend to move forward most universities questioned whether it was to Stanford and the Department of Energy. Despite the failed negotiations, the university with the joint development of undergraduate appropriate to get involved in technology transfer, claims that the $3 million it spent throughout the curriculum in entrepreneurship and technology. as it came to be known. Prior to 1969 only a few

218 219 INNOVATION U 2.0: New University Roles in a Knowledge Economy Stanford University institutions were involved in technology transfer: a non-exclusive licensing offer from the OTL Royalties from licensing deals are designed although the financial returns from those deals Iowa State, MIT, Kansas State, the University with a 12-15-81 deadline, which resulted in 73 to maintain and enhance the science assets via equity participation therein has been exceeded of Minnesota and Wisconsin (e.g., WARF). companies signing agreements and two positive that led to the invention and to maintain by returns from straight licensing royalties. The outcomes: it contributed to the launching of a OTL operations. Thus 15% of gross royalties recent very large exception was of course Google. After surveying university policies and practice major worldwide industry; and it put the OTL on are dedicated to the Office of Technology around the country, Reimers proposed (and the the map both on the campus and nationally.22 Licensing and the net is distributed equally The Stanford OTL also operates a separate Stanford administration approved) the creation to the inventor, the inventor’s school, and the LLC to work with nonprofit organizations that of an Office of Technology Licensing (OTL). The Since then the Stanford OTL has had over 40 inventor’s department. The expectation is that this have developed intellectual property, but have office was officially launched on January 1, 1970, years of growing success. As of 2010 there had formula will incentivize schools and departments neither the wherewithal nor the assets to license it with Reimers as the sole professional staff person been 8,000 inventions and $1.3 billion of royalty to be strong supporters of technology transfer, or otherwise commercialize. Stanford OTL-LLC and Director plus one assistant, and a modest income. It has a staffing ratio that is rich when which appears to be the case at Stanford. performs that function on a limited basis. budget. This was 10 years before Bayh-Dole, but the benchmarked nationally (e.g., professionals per office in that year received 70 invention disclosures, unit of research funding). OTL staff typically The university has also successfully developed As one of the more distinguished and long-lived licensed 3 inventions, and was beginning to realize bring advanced science and technology degrees a number of policy and practice innovations that technology transfer offices in the US, the OTL royalty income ($50K). It was not until 1975 when as well as intellectual property and industry have extended benefits to the university and to also takes it upon itself to document and opine on policy and practice issues in the field. The leadership a permanent licensing associate was added to the experience. The office had a staff of 40 as of early OTL licensees. ThePresident’s Venture Fund makes staff. Nonetheless, some early accomplishments 2013. Most deals end up as royalty-based license equity investments in early stage companies that and staff of the office has been very active in the paid off handsomely later on. One 1971 invention agreements, but the office will participate as an have licensed Stanford technologies. The ability Association of University Technology Managers disclosure concerned computer-based sound equity partner as appropriate. Google was an to do so is stipulated in the license agreement, (AUTM) and OTL staff members publish in the synthesis, with a particularly novel application in example, and Stanford’s equity cash return was and these investments are made prior to an practice and research literature on technology music. In 1974 a demonstration to Yamaha led to $335 million, which far exceeded the norm. acquisition or an IPO. As of early 2011 over $21 transfer. Perhaps the most compelling written an eventual license and later on to $23 million in million had been invested in 28 companies, with product of the office is the series of Annual Reports Stanford, like most of the cases in this volume, 26 royalties. investments ranging from $600,000 to $5 million. that are available on the OTL website. While most has superior “batting averages” for its technology readers think about annual reports with a big yawn, Things picked up around 1979-1980. One transfer office. For example technology transfer The Stanford OTL has also been effective in these are way different. They are written with almost important chapter involved the recombinant DNA outcomes in a university are complex indices that the promulgation of very well-written “guides” for lyrical prose, accompanied by compelling graphics research led by Stanley Cohen of Stanford and are a function of culture at both the institutional members of the university community. One, the and each tells a different story. While the annual Herbert Boyer of UC Berkeley; the second was and unit level, as well as the quality and promptness 24 44-page Inventors Guide, was adapted from one statistics are there, every issue focuses on a theme the passage of Bayh-Dole which gave universities of technology transfer practices and reasonable produced by the University of Michigan and written that illustrates an important goal and accomplish- the rights to inventions produced from federally policies. However, one can compute “batting 25 by Ken Nisbet. A second, Start-Up Guide, was ment of OTL but also of Stanford. For example, sponsored research with the proviso that faculty averages” of things such as disclosures. For recently developed, largely because of the very large the 2010-2011 report is titled Entreprenurture; the inventors would receive a share of licensing example if one divides total research expenditures interest among members of the Stanford community 2008-2009 report addresses What is value? and revenues. Federal funding agencies were also in millions by number of invention disclosures in starting technology-based companies, as well as drills down into the dollars and cents, but also the given a royalty-free license and “marching in” or patents, there are huge differences across the significant curricular and co-curricular activities relationships; the 2002-2003 report focuses on rights—both of which did not prove to be a big universities. The former index for Stanford for at Stanford focused on entrepreneurship. Recently Imagine the World in terms of “discoveries that will disincentive. Stanford was already advantaged by FY201223 is 1.7, or for every $1.7 million of available, it draws on information (with permission) change the world.” These reports are commenting 10 years of experience in working with its growing research an invention disclosure results. For most that MIT developed into An MIT Inventor’s Guide on the ebb and flow of Stanford research and cadre of inventors, and was moving forward on universities that number is much higher. Another to Startups: For Faculty and Students. The OTL has innovation, but also contributing more generally the Cohen-Boyer patent commercialization. The metric is number of licenses, and Stanford reported been active for many years in licensing to startups to the enabling culture of the institution. latter commercialization strategy ended up being 137 licenses and options executed in FY2012. 220 221 INNOVATION U 2.0: New University Roles in a Knowledge Economy Stanford University

Other writings are available on the OTL website without the administration of John Hennessy, http://news.stanford.edu/news/2012/february/ 14 Sandelin, J. (2004). The Story of the as well as in the larger literature, that discuss or a number of other key events and people. stanford-challenge-concludes-020812.html Stanford Industrial/Research Park. Paper issues about the practice of university technology presented for International Forum of 6 transfer. The late Jon Sandelin, a staff member It will be recalled from the introduction to For Dr. John Hennessy’s full biography, visit University Science Parks, China. since 1984 (along with the current OTL Director, this volume that a premise of our analysis is that Stanford’s Office of the President page at http:// 15 Katharine Ku) continued his contributions after university leaders can learn from the fortunate, www.stanford.edu/dept/president/biography/ Stanford University Institute of Design, lucky, or wise decisions that others in comparable (2013). Retrieved from http://dschool. retirement as a Senior Associate Emeritus and 7 Aulett, K. Get Rich U, op. cit. produced a number of very readable analyses that positions have made. In summary, the Stanford stanford.edu/our-point-of-view/ story is not about a formal, deliberate approach— 8 range from a history of the Stanford Research Park, For more on how Hennessy’s involvement 16 Galagher, B. (2011, October 27). Stanford buttressed by carefully wrought mission and vision in Silicon Valley has influenced his time as a history of technology transfer in the US, and Submits Final NYC Proposal. Stanford Daily. a thoughtful piece about the role of technology statements. Rather it is a story of timing, leadership, president, see Banerjee, D. (2011, January transfer offices in new business formation. In and the triumph of a robust entrepreneurial culture. 10). Atheros Deal Highlights Hennessy’s 17 Stanford Report. (2011, December 27). sum the OTL’s influence has been both local Role in Silicon Valley. Stanford Daily. Stanford Team Answers Questions About and national in scope, and continues to be. NYC Proposal, Process and Withdrawal. 9 Hechinger, J. & Buckman, R. (2007, February Summary and Parting Comments Endnotes 24). The golden touch of Stanford’s president. 18 Chen, C. (2012, February 3). NYC bid Wall Street Journal. This article includes detailed informs future, admins say. Stanford Daily. 1 Auletta, K. (2012, April 30). Get Rich U. The Stanford story is an enlightening narrative information regarding the president’s activities . It both praises and questions Stanford’s 19 of how a mostly regional, good but not yet great, New Yorker and their financial benefits for Stanford. Stanford Report. (2011, October 11). Stanford university transformed itself into one of the classic role vis-à-vis Silicon Valley. Teams Up with The City University of New York examples of university-linked innovation and 10 For more information on the Stanford Challenge, and The City College of New York in a New 2 Mazuzan, G. (1994, July 15). The National entrepreneurship. Of course the “Stanford story” is see http://thestanfordchallenge.stanford.edu Engineering and Science Collaboration in NYC. Science Foundation: A Brief History. National also the Silicon Valley story, as they are hopelessly Science Foundation. NSF 88-16. 11 Lyman, Richard W. (2009). Stanford in 20 Zaw, C. (2012, January 10). CCNY Partnership intertwined. Furthermore it is a case in which Turmoil: Campus Unrest, 1966-1972. Redwood will “absolutely continue.” Stanford Daily. early on the outcomes to be achieved decades later 3 National Science Foundation, National City, CA: Stanford University Press. were heavily contingent on certain leaders being Center for Science and Engineering Statistics, 21 Many will recognize the voice of the late in place in the 1950s, and in the critical decades FY2011. Table 14. Higher education R&D 12 For a more detailed account of Dr. Sterling’s Everett Rogers whose classic The Diffusion of thereafter . Would Stanford today be what it has expenditures, ranked by all R&D expenditures, life, see Malnic, E. (1985, July 3). Stanford’s J. Innovations, 5th Edition, has informed much of become if Fred Terman had stayed on the East by source of funds: FY2011. Table 15. Higher Wallace Sterling dies: widely honored educator what happens in the technology transfer business. Coast after peace broke out? But similarly, could education R&D expenditures, ranked by all headed university for 19 Years. Los Angeles Times. 22 Terman have been Terman without Wallace Sterling R&D expenditures, by R&D field: FY2011. For a brief summary of the historically and Vannevar Bush? And what if the development 13 Dr. Seelig is also author of two recent very important roles played by Reimers and OTL 4 of the Stanford lands had stopped with a great Easley, C. E. and Miller, W. F. (2012). readable books that are targeted for young in Cohen-Boyer, see Bera, R. K. (2009). The shopping center, some student housing, and a Impact: Stanford University’s Economic Impact people and students generally trying to figure story of the Cohen-Boyer Patents. Current handful of administrative buildings in 1955? via Innovation & Entrepreneurship. Stanford out what they might do in school and life: Science, Vol. 96, No. 6, 26, 760-763. University School of Engineering. Retrieved Seelig, T. (2009). What I Wish I Knew When 23 Association of University Technology Nonetheless, those people were in place, smart from http://engineering.stanford.edu/about I Was 20. New York City: Harper Collins; Managers. (2013). decisions were made, and the rest is history. Of Seelig, T. (2012). InGenius: A Crash Course On AUTM U.S. Licensing Activity 5 Stanford Report. (2012, February 8). Stanford Deerfield, IL: Association course, the history keeps reliving and renewing Creativity. New York City: Harper Collins. Survey: FY2012. itself. Stanford might not be what it is now concludes transformative campaign. Retrieved from of University Technology Managers.

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24 Stanford University, Office of Technology Licensing. (May, 2012). Inventors Guide. Retrieved from http://otl.stanford.edu

25 Stanford University, Office of Technology Licensing. (December, 2012). Startup Guide. University of Utah* Retrieved from http://otl.stanford.edu

26 See http://otl.stanford.edu/about/ resources/about_res_archives.html The precursor to what is now the University of in which several faculty members were dismissed Utah, and the flagship public institution in the state after an apparently politically incorrect speech of Utah, was founded in 1850 as the University after the 1915 commencement, which in turn led of Deseret, in the then proposed State of Deseret. to a third of the faculty resigning in protest. Some What became the state of Utah 50 years later was attributed this event to the ongoing adjustment only a part of the vast, largely unsettled Mormon issues of a public university in the midst of a very claim that encompassed parts of what are now religious state. Operations were also temporarily several western states. A petition to become interrupted during World War I, and later on a state, under that name and at that time with during the depression. In a pattern similar to many those territorial aspirations, was rejected by the universities in this volume, enrollment reached its US Congress, along with many petitions that nadir during World War II, with 3,418 students followed. This led to several decades of political in 1945. Also, like most other universities in and sometimes military conflict, mostly focused on that period, enrollment climbed rapidly during Mormon religious practices. Utah finally became the decades after the war, reaching 12,000 in the a state in 1896 with all traces of polygamy and mid sixties. The GI Bill was a major factor in other religious/political obstacles out of the way. changing the age and experience mix of the student body. As the university expanded into a research- In the meantime, the fortunes of the University intensive institution, and Utah became a more of Deseret waxed and waned. Three years after technology-intensive state, enrollment climbed. its 1850 founding in what was to become Salt Lake City, the school closed, opened again on an In a pattern similar to a number of public intermittent schedule, and then was reestablished universities the University of Utah (“U of U”) in 1867. It was finally re-named as the University transformed itself into an institution that is in of Utah in 1892, a few years before President the first rank among its peer institutions. Total Cleveland proclaimed Utah a state. Land was enrollment in Autumn 2012 was 32,388, which acquired on the east end of Salt Lake Valley, and the included 7,548 graduate students. Of the total, university set down roots there in 1900. Enrollment 83% were Utah residents. The 15 colleges awarded growth was encouraging in the early years of 7,444 degrees in 2011-2012, including 1,342 the new century, with some ups and downs. Of bachelors in Social and Behavioral Sciences, 925 these, most notable was a “speakers controversy” in the Humanities, 686 bachelors in Business (plus

224 * This case was written by Elaine Rideout , Louis Tornatzky, Katie Brennan, and Rachel Fukuyama. INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Utah

482 MBAs), 444 in Health, 442 BS in Engineering The University of Utah is a top-50 university in established, although the program was attenuated nonetheless the U of U has linked its mission to (plus 202 MS and 77 PhDs), and 332 BS degrees the scope of its R&D activities. Thus in the FY2011 during the 1917-1919 war years. The two-year statewide economic improvement via research in Science. The the highest number of doctoral National Science Foundation2 survey of academic medical program persisted until 1942. However, and development. Thus, and not surprisingly, the degrees awarded by college were in Medicine research and development, it reported research this arrangement demanded that students needed current Mission Statement3 of the University of (149), Law (130), Engineering (76), Health (76), expenditures of $414.3 million, of which 63.9% to do their clerkships out-of-state, and transfer, Utah, as articulated by the new President is: Pharmacy (62), Science (52), and Nursing (50). was in the life sciences, reflecting its increasing in order to finish their medical degrees. Clinical Over the years, Utah has become an institution very work in the biomedical sciences. Next highest was training experiences were enabled via an affiliation To serve the people of Utah and the world much oriented to the life sciences. For example, engineering, with 17.4% of total expenditures. Of with the local VA hospital in 1945, and other local through the discovery, creation, and the top three departments in terms of doctoral total research expenditures, 3.1% was from business hospitals. Residency programs expanded, but there application of knowledge; through the degrees awarded in 2011-2012 were in Chemistry, funding, which is below the national average of were few on-campus teaching/treatment facilities dissemination of knowledge by teaching, until 1965 when University Hospital opened. Educational Psychology, and Bioengineering. As 4.8%. This may partially be a function of Utah’s publication, artistic presentation and relative geographic isolation, as well as the increasing technology transfer; and through of 2011 the number of faculty elected to one of During the 1960s the first significant medical focus of the university on medical science. community engagement. [Emphasis added] the National Academies stood at 36, including research grants were awarded in a stream that was present and former U of U faculty members. to grow into a river over the ensuing decades. The The U of U Health Care system was ranked Furthermore: 1st by the University Health System Consortium, scope of clinical and research training expanded Looking at the regular faculty roster for a rating which focuses heavily on clinical services significantly, as did the founding and funding 2012-2013 the life science tilt is again apparent. In its role as a research university, the but is still notable nonetheless. In the highly cited of various centers and institutes, including the Of 728 full professors, 262 were in the College of University of Utah fosters the discovery national ratings the following: the Huntsman Cancer Institute; the Medicine, and of the 830 Assistant and Associate U. S. News & World Report and humane use of knowledge and artistic university was ranked 2nd in Physician Assistant Utah Diabetes Center; the Eccles Critical Care Professors across the University 283 were in the creation in all areas of academic, profession- Training, 8th in Nursing-Midwifery training, 5th Pavilion; the Eccles Health Sciences Building; al, and clinical study….The University also College of Medicine. The College of Science is a and the Moran Eye Center. In parallel with in Family Medicine, and 9th in Physical Therapy. cooperates in research and creative activities distant second. This degree and disciplinary tilt these facility expansions, the U of U medical It also was rated 3rd by the U.S. Environmental with other agencies and institutions of higher is also reflected in innovation outcomes such as complex achieved national status for its Protection Agency for Green Power on Campus. education, with the community, and with technology transfer and entrepreneurial activity. wide-ranging programs of clinical and laboratory private enterprise. [Emphasis added] Notable among the university’s accolades above science. All of these accomplishments were The University of Utah has become nationally is the prominence of its biomedical programs, consistent with the increasing focus of the visible among the many university ratings and And: and that is one of the more interesting themes in University on becoming a national leader in rankings that have been noted for other cases the history of the University of Utah, given that research, innovation, and entrepreneurship. in this volume. Thus for FY2012 as per the In its role as contributor to public life, much of Utah and the Salt Lake area were just this the University of Utah fosters reflection Association of University Technology Managers University Culture: side of unsettled wilderness in the 1890s. Starting on the values and goals of society. The (AUTM) Licensing Survey1 the University of early in the 20th century the U of U slowly took Goals and Aspirations university augments its own programs Utah technology transfer office reported 14 several organizational development steps that, and enriches the larger community with startup companies, which places it tied for 3rd As the largest university, and the largest along with a sharpened set of goals and aspirations, its libraries, hospitals, museum, botanical among all universities. However, if one looked employer in a sparsely populated state, the made it a major biomedical center in the west and gardens, broadcast stations, public lectures, at this from the perspective of startups per unit University of Utah could hardly abstain from then in the nation. A two-year medical course continuing education programs, alumni of research, the University of Utah has a superior being engaged with its community. The fact was established in 1905 in the College of Arts and that it is located in the largest Utah city, which programs, athletics, recreational opportuni- “batting average,” since the other highly productive Sciences, and then incorporated freestanding into is also the State Capital, contributes to that ties, music, theater, film, dance, and other universities in terms of startups were much larger a two-year Medical School to satisfy accreditation posture. While state financial support is a cultural events. The University facilitates in terms of their sponsored research portfolio. organizations. In 1916 a School of Pharmacy was relatively small fraction of the university budget, the application of research findingsto

226 227 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Utah

the health and well being of Utah’s citizens community, private, and philanthropic partners. campus building effort, as well as a community his departure in 2011, was able to point to the through programs and services available The activities range from the encouragement of education campaign focused on the benefits number of spin-off companies from U of U research, to the community.[Emphasis added] university-industry research relationships via centers of hosting a research-intensive university. the growth of the sponsored research portfolio, or project partnerships, cooperative relationships and significant growth in national rankings. Another physicist, James C. Fletcher, who As is normal practice among universities, the that define and enrich curricula, and the fostering of led the university for 7 years, succeeded Olpin. The University of Utah is now early into the University of Utah identifies three broad focus engagements in support of faculty invention of new Fletcher went on to serve two terms as NASA administration of President David Pershing, who areas: teaching, public life, and research. Each products and new companies. Those relationships Administrator, as well as several years as an executive took office in 2012. It is not clear how the mission of these foci has innovation or entrepreneurial to a significant degree define what the University in the aerospace industry in California and Virginia. statements he articulated above will specifically play expressions. During the 1980s, James Brophy, a is, what it values, and what goals it holds close. Notably, one of the space companies that he led out in the context of innovation, entrepreneurship, senior research administrator at the University, was an entrepreneurial venture that he co-founded and the like. At his inauguration on October 26, used the term “academic capitalism” by way of Leadership and then led to a merger with another company 2012 he did state that: “I will continue to champion encouraging faculty to pursue active relationships Since its inception, but most prominently in in the industry. There are clearly some themes in basic research as well as technology innovation.” with business and industry, particularly in areas the last few decades, the University of Utah has Fletcher’s career that resonate with what U of U That is very consistent with the views of his that would have an impact on state economic been blessed by a series of leaders, particularly at has become: research, technology, private sector predecessors. development. This long-stated goal has manifested the presidential level, who have championed the partnerships, entrepreneurship, and public service. itself in a variety of practices and policies at It is also worth mentioning that Pershing is a development of the university into a first-rate The 13-year era of Bernie Machen (1998-2004) veteran U of U hand, having spent over 35 years at institutional and unit levels, and still does. research institution, and also one that is connected through Michael Young (2004-2011) was another the University encompassing his appointment as with social and business innovation. Those For example, the University confers annually period in which the university made great strides an Assistant Professor in 1977, his rise through the themes are illustrated in the following presidential a Distinguished Innovation and Impact award to in terms of focusing on innovation processes, and ranks to Dean of the College of Engineering after vignettes, drawn from the post-World War II recognize “faculty innovators for contributions achieved national visibility in terms of tangible only 10 years on campus, and then to Vice President era, in which the University achieved its most that improved the lives of people.” It considers accomplishments from those initiatives. For of Academic Affairs in 1998. Dr. Pershing’s career significant growth. This expansion was not only innovation in all disciplines and markets “entrepre- example, the U of U was one of the featured cases has included traditional academic accomplishments in student head count, but also in the amazing neurial activities that resulted in innovations with in the 2002 edition of Innovation U. Both of these and honors, as well as winning several patents, and strides that were achieved in R&D, and in engaging a measureable societal impact.” At an institutional presidents pointed to their administrations’ records the Governor’s Medal for Science and Technology. in innovation processes of various types. level the Carnegie Foundation for the Advancement in increasing the university’s R&D, its contributions Several of his predecessors mentioned above have of Teaching recognized the University for its Ray Olpin was President from 1946 to 1964, to the Utah economy, and in turning out science and deep Utah backgrounds and connectivity. Thus the era in which the modern American research engineering graduates who tended to stay in Utah. Community Engagement. Ray Olpin grew up in Pleasant Grove, Utah and university was being created on campuses across the There were also direct impacts from the University secured his undergraduate degree from Brigham In summary, the goals, culture, and key values country. A physicist by training, during the World of Utah’s national prominence in technology Young. David Gardner, although not born in of the University of Utah are significantly aligned War II years, he worked on the Manhattan project, transfer and startup companies. Moreover, the Utah, got his bachelor’s degree at BYU and was with community engagement. This is expressed and was connected with many of the individuals U of U was accomplishing these things with a lifetime member of the LDS Church. After his in how the instructional programs are delivered, likewise deployed on large scale war-related a relatively modest portion of its total budget stint as U of U president, and after his time as as well is in the many cultural and artistic events research, and who returned to their universities coming from State of Utah funding. As another President of University of California, he returned that enrich the City of Salt Lake and communities and transformed them into R&D powerhouses. It indicator of leadership continuities, after Bernie to the University of Utah as a senior professor. across the state. For the purposes of this chapter, it should also be mentioned that after the war ended Machen left the University of Utah in 2004, in the Chase Peterson, Gardner’s successor as President, in Japan, he spent some time there, contributing to years since he has been instrumental in leading the is also true that the U of U is significantly engaged also had a Utah background, growing up in Logan, its recovery in rebuilding efforts, before returning University of Florida in its climb to research and in innovation and technology with a host of and a lifetime LDS member. Michael Young, to university life. Olpin orchestrated a massive innovation prominence. Michael Young, upon 228 229 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Utah

President from 2004-2011, had a BA from BYU. It Center recognizes that while classroom education concepts and markets that they build business In addition to three prerequisite classes in is noteworthy to see the many ties that leaders of is important, applied experience is critical. models around. Evidence-based research supports economics and management, students take the University of Utah have had to the state, what it the effectiveness of this curricular approach.4 courses in Fundamentals of Entrepreneurship, stands for, and how it contributes to technological Curricular Programs. As part of the validation process, the U of U is New Venture Finance, Business Discovery, Entrepreneurial Marketing, along with a innovation tied to economic growth. There is Entrepreneurship courses are offered at both notable in that it practices the accountability it Global Perspectives business course. The a certain continuity of culture over many years graduate and undergraduate levels. Originally, teaches by collecting data about actual student minor in Entrepreneurship (for business and among the leaders of the University of Utah. entrepreneurship courses were designed by, and entrepreneurial outcomes—businesses created, non-business students) provides base-level taught primarily by, adjunct faculty selected money raised, employees hired, for example. Boundary Spanning: content on entrepreneurship and start-up from the entrepreneurial, small business, and • Graduate Programs. The MBA degree includes businesses. Students in the program focus on Entrepreneurship venture-finance communities in the Salt Lake course offerings, and a minor in entrepreneur- analysis, decision making, and business planning As discussed in other cases in this volume, City region. Today, the University is taking a ship at the graduate level is in the works. In skills that support their academic major. there are two strands of entrepreneurship different approach. While other Universities addition to classroom work, the Lassonde activities that are focused primarily on students. ramp up their hiring of seasoned entrepreneurs New Venture Development Center connects • Certificate Program. Beginning in the fall of One is the curricular activities that include courses, to serve as adjunct instructors, the U of U has graduate students in engineering, business, 2013 a Certificate program was made available degrees, and minors that are typically found in concluded that a different strategy works better. law, and science, with faculty researchers with to all students regardless of major as part of a academic units across a campus. The second is the As stated by Bill Schulze, Entrepreneurship breakthrough technologies. They team up to campus-wide Entrepreneurship Initiative. co-curricular activities that tend to be more in the professor and Director of the Foundry incubator: determine the commercialization potential To earn a Certificate, undergraduates take vein of learn-by-doing opportunities for students of those ideas while providing students a three business/entrepreneurship courses, two Adjuncts telling war stories is not the (and sometimes faculty as well), which include unique educational experience in new business “tools” classes, two classes in their home college, way to go about that. It turns out competitions, incubation opportunities, forums, development. The Center is managed by an and a capstone venture creation course. learning how to teach entrepreneurship and speaker series. The curricular offerings in accomplished local entrepreneur, with an is very difficult if the outcome is a entrepreneurship at the U of U are many in number advisory board made up of venture capitalists, • Innovation Scholar Program. At the undergrad- business, and not just a business plan. and rich in scope. The University’s entrepreneur- inventors, and entrepreneurs. During a year-long uate level, the Innovation Scholar program ship curricular programs, in both its graduate and allows undergraduate students interested in The University is increasing the role of tenure program, students receive weekly mentoring undergraduate colleges, ranked in 2012 among entrepreneurship and innovation to build their track faculty teaching in the discipline. Because and teaching from both the executive director the top 20 by the . Key factors undergraduate experience around big questions Princeton Review there are so few faculty candidates familiar with and local professionals. Students work in leading to the prevalence of entrepreneurship at and problems that inspire them. The students solid curricular theory and practice in entrepreneur- teams to evaluate business opportunities, the University were academic programs, faculty begin by enrolling in the Innovation Scholar ship, they have adopted a strategy of “developing engage in market research, research funding entrepreneurship, and, in particular, the experiences Road Map course where they map out a course of their own” entrepreneurship scholars. opportunities, and develop business models and partnerships available outside of the classroom. and plans based on real technologies coming study (major and general education courses) for The pedagogy being designed and built by out of the labs at the University of Utah. finding innovative solutions to these questions. James Brophy’s “academic capitalism,” which faculty takes a two-pronged action-oriented In addition, students identify extracurricular has become institutionalized over the years, may approach. Students learn that opportunities can • Undergraduate Programs. At the undergraduate activities to engage within the larger university help explain the University of Utah’s unusual be created by direct action, not simply objectively level the UU offers both a major and minor in community around innovation. The experience ability (compared to other schools) to successfully observed; they practice developing opportunities, Entrepreneurship. The major prepares students culminates with an Innovation Scholar Portfolio, integrate curricular and co-curricular resources then plan and implement business strategies to to follow trends, identify emerging opportuni- that summarizes their innovative experiences and for both student and faculty entrepreneurs. The exploit that opportunity. Students work in teams, ties, and pursue those possibilities through the the product/service solutions they have created. focal point for this effort is the David Eccles employ tools to conduct experiments, and validate creation of new products and services and/ School of Business ‘s Pierre Lassonde Center. The or with the creation of one’s own company. • BlockU Program. The success of the Innovation

230 231 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Utah

Scholar program in retaining students, making • Lassonde Living Learning Center. Students Co-Curricular Programs. The cornerstone competition of the Utah their college experience more relevant to their interested in starting a business will soon be Entrepreneur Series is the Utah Entrepreneur In addition to entrepreneurship classes, lives, and improving 4-year graduation rates, able to live, work and perfect their ideas in one Challenge (UEC), which is one of the larger the Pierre Lassonde Center offers a number of led to a brand new approach offered in the fall place at the Living Learning Center on-campus business plan competitions in the nation. In co-curricular activities, including TechVentures, of 2013 to all entering freshmen. The BlockU dormitory, which is slated to house about 400 2013, the UEC saw 121 submissions competing the Utah Entrepreneur Series (UES), the Student program attempts to make required General students from all campus disciplines when it for a grand prize of $40,000. The competition Entrepreneur Conference, The Foundry Accelerator, Education (GE) prerequisite courses more opens in Fall 2016. The $45 million project includes awards for Best Presentation, Best and the Lassonde alumni mentor network. The relevant to students’ future lives and issues will be funded by a $15 million donation Technology, and Best Bootstrap, among others. Center also serves as a clearinghouse for information they care about. Interestingly, entrepreneur- from mining magnate Pierre Lassonde and about scholarships, courses, and financial resources. • Bench to Bedside Competition. The U ship (business and social) is a multidisciplinary, $30 million in bond proceeds to be paid off The Technology and Venture Commercialization of U’s Center for Medical Innovations integral component of the program. The through housing revenue. The new project will (tech transfer) office also hosts a variety of faculty Bench-to-Bedside competition is a medical BlockU Program establishes for each freshman be similar to the Marriott Honors Residential and student programs at a separate location. device innovation competition designed to enrollee a 2-year multidisciplinary curriculum Scholars Community that opened its doors attract teams of medical, engineering, and organized around a number of specific last year, but would instead offer workshops, • Student Entrepreneur Conference and Business business students. The multidisciplinary themes: Entrepreneurship and Society, Global materials, computers, and business lunch space, Plan Competitions. The Entrepreneur teams’ first task is to identify an unmet clinical Citizenship, Sustainability, Medical Humanities, as well as venues for competitions and events. Conference and Utah Entrepreneur Series (UES) need. They are then given six months and Art and Science, and Creativity and Community. business plan competitions are the best-known $500 to develop medical device concepts that • Campus-Wide Entrepreneurship Initiative. BlockU students participate in a core learning co-curricular programs offered by the Lassonde address that need. Teams are given access to The Initiative ties together each of the above community and a set of general education (GE) Center. The Conference showcases local over 100 University physicians from a broad programs in an attempt to scale the homegrown courses organized around a central theme, and professionals and entrepreneurs who share with area of specialties to serve as their consultants, U of U curricular approach beyond the business, have the support of peer mentors and student students their knowledge in business formation, and stakeholders. The program culminates engineering, and health disciplines into the success advocates. For example, an incoming business plan creation, marketing, and finance. in a formal presentation of all team projects humanities, social and behavioral sciences, and student interested in the issue of poverty might The business plan competitions offer students at an annual awards competition. The event fine arts. The University has built a culture take an Entrepreneurship and Society course statewide the chance to compete for cash and draws participation from faculty physicians, around the belief that by making entrepreneur- in the fall, then do a social venture project in in-kind prizes. Students who hope to enter into community residents, industry leaders, venture ship a ubiquitous part of the campus experience, the spring. They will take their GE courses a competition are first encouraged to attend capital firms, and University leaders. The team they will create, from the ground-up, a university organized around poverty as a theme, and will a spring orientation conference. Round one projects are evaluated and scored for business community that will naturally self-organize engage in research during the second semester of of the techTITANS (tT) competition is held strategy, design quality, and potential healthcare itself into an entrepreneurial ecosystem that the core learning community in a problem-based each fall. Students at this stage of the business impact by a panel of judges. The top teams learning research project. BlockU students will attract outside interest and investments. process receive mentoring and support to fully are awarded over $70,000 in prizes intended also take an international trip abroad (a service The hoped-for result will be the realization develop their ideas, and successfully compete to support further project development. project in Peru, for example), then complete of Brophy’s vision of “academic capitalism”— with other teams. Round two, the Opportunity uest (O ) competition, occurs in the winter. • Foundry Utah is a business a capstone course where they document their University as institutional economic dynamo— Q Q Foundry Utah. Students receive coaching on how to prepare accelerator educational program funded research on the problem, their analysis, and their serving Utah’s citizens and communities by their business plans for the final round. They and supported by the David Eccles School enterprising solution into a learning portfolio. literally catalyzing state economic development, attend forums where they meet industry of Business, Chase Bank, and Ally Bank. Students receive a designation on their transcript particularly so via its emphasis on entrepreneur- mentors and investigate local opportunities The program provides an experience-based upon the completion of two semesters of BlockU. ship and technology development. within the surrounding community in order to educational community where entrepreneurs make their business plans feasible and realistic. (either university or community) can start

232 233 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Utah

acting on their business ideas and access • TVC Student Internships and University Venture That spirit, along with our state’s into the foci of startups and patenting/licensing resources to help them along the way. More Fund. Another TVC program for students sustained commitment to fostering activities they tend to track major center programs, than a dozen Utah business leaders have helped includes a TVC Student Internship Program economic development, has made Utah as do the emphases of doctoral dissertations. launch the program and others participate as (summer and during the school year) where a premier destination for business. This In 2012, three Utah state agencies commissioned coaches, provide targeted training, invest in students assist in the analysis and commercializa- is exemplified by the University of Utah’s the Battelle Technology Partnership Practice (TPP) Foundry startups, provide internships, and tion planning of University technologies. Legal, record of technology commercializa- to conduct a study5 of the life science industry hire Foundry participants. Entrepreneur MBA, and science interns learn how to perform tion. The University of Utah is not only in Utah, and in particular how it interfaced with teams enter a 12-week cohort with an idea patent searches, conduct market analyses, doing innovative and groundbreaking state-based universities as well as private sector for a company. Cohorts complete a discovery work with companies, and assist with licensing research, they’re using that research to companies and organizations. Since the life science process in an effort to develop their idea and agreements. In addition, student internships form successful start-up companies that industry has had healthy growth in Utah, and the U assess the market. They attempt to validate their are available via the University Venture Fund generate jobs and boost the economy. customer, their market, and their profitabil- (UVF). The program enables students to of U has been a significant player therein, the study identified centers and institutes at the University ity, before assembling the company, filing perform real-time due diligence and actively The U Of U has indeed been involved in of Utah that are key assets in the life sciences and articles of incorporation, or soliciting for participate in direct investment deals, working a range of initiatives that engage processes developed strategies for enhancing their impacts. funding. Since the beginning of the program, alongside professionals in the firms they assist. of technological innovation and the external The University of Utah served as a “convening the Foundry has served 259 entrepreneurs, Students work with mentors who bring industry community. Many are similar to those operated institution” in the project. The report identified 59 companies were incorporated, and nearly expertise in venture capital and entrepreneur- by other universities, along with many features four strengths that were seen as key to life science $3.2 million in external funding was raised. ship across a wide array of industries. The and wrinkles unique to Utah. They include: experience allows students, who come from growth: medical devices; molecular diagnostics • The Student Entrepreneur Club and StaC. Like several Utah universities, and from various Centers and Institutes. As has been and personalized medicine; molecular medicine, the Foundry, the Student Entrepreneur Club disciplines, to understand how to effectively emphasized elsewhere in this volume and in the drug discovery, development, and delivery; and at the University of Utah has partnered with identify successful companies, as well as the larger literature on innovation, technological natural products and dietary supplements. a community lender (Zions Bank) to provide principles upon which successful companies are innovation is often interdisciplinary or multidisci- The following centers, institutes or units at seed grants to students who need cash to start built. To date, UVF has invested in eighteen plinary in content; new areas of understanding the University of Utah were identified in the a business. To date the Club has funded 30 companies; three of which experienced or application often cannot be understood in the Battelle report as key U of U research centers teams an average $2,000 each to help develop successful exits via two initial public offerings, context of established departments or colleges. in one or more of those four areas, and several a viable proof-of-concept. The Club partners and one acquisition by a financial buyer. The answer for this need is found in the form of have wider links across the University. with the Startup Center for Students (StaC), centers, institutes, or other organizational forms which is a program offered by the Technology It should be noted that a number of other where faculty members and graduate students can • The University of Utah Nano Institute. The and Venture Commercialization (TVC) office. activities and programs are more closely address research questions from new perspectives. Nano Institute is less than four years old, but has StaC helps students execute their business ideas aligned with TVC, and are described later. grown in size and intellectual stature. Roughly and development, and provides seed funding, As of late 2013 the U of U listed 91 Centers 70 individuals are Members of the Institute, mentoring programs, business and legal services, Boundary Spanning: and Institutes that were in operation on campus. primarily faculty members drawn from across and marketing advice. The StaC walks students University, Industry and Community These ranged across many departments from the the University in fields such as computing, through the funding process, beginning with humanities to engineering and the physical and life In 2011, Utah governor Gary Herbert said engineering, medicine, materials science, biology, an easy application in which they present their sciences. In fact, if one does a crude sort among of the U of U: energy, and other disciplines. The Institute is a idea as a three-slide pitch and brief question categories of research it appears that the life and State of Utah Science and Technology Advanced and answer. StaC’s expertise is building Utah has always possessed a unique medical sciences accounts for a plurality of centers Research (USTAR) program, and as such has companies around ideas that are scalable and pioneering and entrepreneurial spirit. and institutes. Not surprisingly, when one digs both scientific and technological goals, including have an intellectual property component. 234 235 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Utah

advancing the state of knowledge about nano Response and Regulation (e.g. cell turnover status at the University of Utah. It involves release systems. The Center for Human materials and processes, fostering a Utah-based in cancer, tumor microenvironments); over 200 faculty, students, and staff, with 16 Toxicology (CHT) is an independent non-profit nanotechnology industry, as well as accelerat- Experimental Therapeutics (e.g., individual- tenure tract faculty members drawn from laboratory that is nonetheless administratively ing the commercialization of U of U nanoscale ized approaches to diagnosis and treatment, the School of Computing, the Department part of the College of Pharmacy, and which invention (over 40 disclosures). There is a bidirectional collaboration between clinic of Bioengineering, the Department of provides various analytic and research services strong emphasis on industry partnerships and and laboratory); and Nuclear Control of Cell Mathematics, and the Department of Electrical for a variety of public (NIDA, NIST) and involvement. USTAR funds many of these Growth and Differentiation (e.g. fundamental and Computer Engineering. It has been named private (Eli Lilly, Hoffman LaRoche) clients. activities, particularly the recruitment and processes in the cell nucleus that go awry in by the State of Utah Science and Technology The CHT is developing a Sports Medicine support of nationally prominent researchers as the cancer cell). The HCI also benefits from Advanced Research (USTAR) program as a Laboratory, which will focus on the detection of USTAR Professors at the U of U. The research the availability of 18 core labs associated with Cluster Performer in imaging technology, an performance-enhancing drugs; various US and program of the Nano Institute is organized the Health Sciences Center, plus other core honor that comes with resources to expand international sports organizations are partners. around the following Centers and research facilities that are available campus-wide. faculty positions in this area. Its expertise in foci: Nanomaterials; Interfacial Science; visualization, scientific computing, and image The University Research Park. As another Nano BioSensors; Nanomedicine; and System • University of Utah Cardiovascular Research and analysis have been applied to a wide range of boundary-spanning strategy in the service of Integration. A director and small administrative Training Institute. The CVRTI is co-located problem areas. The Institute has developed a innovation and economic development, the staff manage the ongoing Institute business, with the University of Utah School of Medicine, number of software packages for applications University has operated a research park since as well as a number of integrating activities and occupies 27,000 of space that houses 19 in domains such as fluid dynamics, parallel 1968 that is open to both university and private which include a newsletter, workshops and experimental laboratories, an operating room, computing, neuroimaging, and electrophysiol- sector organizations. The Park is located adjacent conferences, and the planning and implementa- a computer core, and associated offices and ogy. It is associated with many other institutes to campus on 320 acres close to Lake Bonneville, tion of projects, proposals and events. meeting rooms. Research at CVRTI is focused and centers, both at the U of U and nationally. and the business tenants include established on problems of cardiac electrophysiology and corporations as well as early stage ventures, • The Huntsman Cancer Institute. The Institute is ion transport, encompassing levels of analyses • University of Utah College of Pharmacy. The typically with some link to the University. The designated by the National Cancer Institute as from whole heart to molecular. Researchers College of Pharmacy is nationally ranked University thus provides an environment that both a both a treatment and a research Cancer associated with the Institute have published (10th of 125 Doctor of Pharmacy programs fosters entrepreneurial growth, practical research, Center, and is prominent in the intermountain widely on a range of specific research questions. by U.S. News & World Report in 2013) in both and business and career opportunities for both west. It was founded with a philanthropic gift These include computational modeling, tissue its educational programs (PharmD, Master graduate and undergraduate students. The mission from John Huntsman, Sr., with continuing gifts and organ level electrophysiology, regulation of Science, PhD) as well as its research and of the park is to promote connections and foster totaling $250 million. In addition the NCI of intracellular pH and calcium, cardiac development activities (3rd nationally in growth between industry and the University and Cancer Center Support Grant (CCSG) has chromatin remodeling, mathematical modeling research awards in this field from the National to provide a space that brings industry and outside enabled a longitudinal research program that and computational simulation, excitation- Institutes of Health). The College is organized companies closer to student entrepreneurs. As involves over 135 faculty and staff associated contraction coupling, and others. The Institute into four academic departments, and 8 centers of spring 2013 the University Research Park was with the Institute. Major thrusts of the Institute has been in operation at the U of U for over 40 or programs. For example, the Center for home to 82 University organizations—including are in human genetics and the understanding years, and associated with the research program Controlled Chemical Delivery (CCCD) has many academic departments—with 3,554 of cancer at a molecular level. There are four are faculty members, post docs, graduate developed a national reputation and a diverse employees, and 53 businesses with another 6,174 interdisciplinary areas that constitute the students, core personnel and support staff. portfolio of funding, in research focusing on employees. Since its establishment in 1968, the park research programs of the Institute: Cancer the use of different types of polymers for more reportedly has aided companies that have added Control and Population Sciences (e.g., genetic • University of Utah Scientific Computing and efficacious drug delivery and release. Other an estimated 6,000 jobs to the economy. A quick risk factors, genotype-phenotype associations, Imaging Institute. The SCI Institute has been research is developing ways to enable drug scan of the companies in the Park suggests—as and gene-environment interactions); Cell in operation for over 15 years, and is one of delivery to specific organ targets or via long-term above—that the plurality of innovation activities eight research institutes having permanent 236 237 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Utah focuses on the life and medical sciences, with innovation and commercialization. Recall that the technology-oriented community across the example, if one quickly divides current research engineering and information systems close behind. U of U takes seriously its connection to the state state. It has become an essential business resource expenditures in millions by the number of invention economy and citizen well being, and keeps track for high-tech, clean tech, and life science companies. disclosures, the U of U index number is 1.4, which In addition to the apparent continuing success (and regularly posts online) its contributions in Its emphases tend to cluster around issues of suggests that for every $1.4 million of research an of the University of Utah Research Park, one of terms of numbers of faculty inventors, invention talent shortage and investment funding, and invention disclosure seems to emerge. This suggests the things that is remarkable relative to many disclosures, startup companies, jobs created, its annual agenda of activities is impressive. a very robust entrepreneurial culture as well as a other universities is how early in the game that personal income, and state tax revenues. very responsive technology transfer office. The the Park was launched. This was 12 years prior Technology Commercialization and TVC also has a rich collaborative relationship to the passage of Bayh-Dole, and the U of U was USTAR- The Utah Science Technology and Innovation Program (TCIP). This is a linking with the Pierre Lassonde Entrepreneur Center, among the “early adopter” cohort of universities Research Initiative. USTAR has been a novel and and funding program that operates out of the Utah which is located within the David Eccles School that likewise took the step of a co-located research moderately successful partnership between Utah Governor’s Office of Economic Development. The of Business, but operates university-wide. park, many of which are described in this volume. state government and research-intensive university TCIP conducts three proposal solicitations a year programs around the state. The program rationale for grants that will enable the commercialization of Technology and Venture Commercialization Entrepreneurial Faculty Scholars (EFS). is based on the observation that Utah has been technology innovations emerging from Utah (TVC) receives program guidance from both an The EFS is a self-generated linking organization notably successful in launching and nurturing universities. While not exclusive to the U of U, internal steering committee that is drawn from that works in the community and with faculty and technology-based companies around the state and it has been a significant source of resources to colleges and academic units across the campus, as students on campus. It was started by 12 faculty that the state’s universities have played important enable the innovation process. Historically, well as an external advisory board that includes members as a pilot in 2007 and now has grown roles. Program monies tend to be focused on grants went to universities, but starting in the investors, intellectual property experts, and to a voluntary membership of 100 that includes building R&D capacities in conjunction with 2010-2011 fiscal year, proposals were welcomed entrepreneurs drawn from both Utah and around representatives from across the campus. Each of the universities via investments in state-of-the- from Utah-based companies, including startups. the country. those individuals is a person who has had some art laboratories, as well as in supporting startup Other administrative changes in the program made The TVC staff offers procedural and strategic significant experience in some aspect of technologi- packages to enable the hiring of established the proposal process more flexible, and faster. guidance that includes well-articulated policies, cal innovation, either via invention, starting a investigators—in both research and commercial- procedures, forms, and staff advice. Reflecting company, or fostering interdisciplinary inquiry ization—from elsewhere around the country. The Boundary Spanning: its parallel involvement in commercialization around an important problem. The EFS works with premises and operations of the program have Technology Transfer and through existing campus organizations (e.g., The of IP via licensing as well as help in launching some similarities to the activities of the Georgia innovation-based startups, the office provides Lassonde Center, Technology Commercialization Technology transfer at the University of Research Alliance which is discussed in the Georgia two online guides for its customer. One is an Office) and often at the request of the office of Utah is housed in the Technology and Venture Tech case. USTAR claims to have attracted “50 Inventors Guide that covers general principles of Commercialization (TVC) office, which serves as the Vice President for Research. EFS members leading researchers from MIT, Harvard University, IP, the licensing process, inventorship, technology an interdisciplinary vehicle for connections between work as volunteers and without any alteration UCLA, Case Western, University of Arizona, Oak disclosures, and various approaches to protection research within the University and its commercial of their faculty position description. In 2010 Ridge National Laboratory, and other top research and commercialization of an invention. In parallel, development via either license partnerships with the EFS created a Distinguished Innovation institutions…” to the universities and the state. TVC offers a Startup Guide that covers many of and Impact Award (DIIA) to recognize faculty existing companies or increasingly via startup the same issues but focuses more attention to the accomplishment beyond the usual measures of Utah Technology Council (UTC). The ventures. It also places a major emphasis on serving processes, decision criteria, business development academic excellence and which improve the lives U of U has no official linkage to the Utah a very technology-savvy entrepreneurial cohort processes, and planning necessary to commercial- of average citizens. EFS members also often Technology Council, however on a selective and of faculty members and graduate students. Its ize an invention via launching a new enterprise. serve—as requested by the VP for Research—on voluntary basis university staff and leadership performance has become noted by the Association The guides are similar to those available at other the Internal Commercialization Advisory Board, tend to be plugged in to what the UTC is doing. of University Technology Managers and others universities in this volume, but these are unique which has the mission of continuous improvement The Utah Technology Council has a tiny staff, in terms of metrics such as disclosures, licenses, to the U of U. These are excellent guides and have links to other TVC tools, procedures, and policies. in how the University of Utah does technology but hundreds of participants, mostly from the startups, and commercialization revenues. For

238 239 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Utah

In addition, the TVC has a number of events typically includes a guest speaker, “speed pitches” someone who has the will and business experience of these sections contains material and contact and services open to students, faculty and the by TVC staff, technology showcases and exhibits, to potentially be the startup manager; lastly is the information in order to further pursue areas of larger Utah community. They include: and opportunities for networking. Generally Tech Subject Matter Expert, who could either be a U of commercialization or tech transfer. This is reflective Tuesdays are by-invitation events and reach out U faculty member or researcher or a private sector of the overall facilitative culture discussed previously. Boot Camp. One of the most informative to those most active in developing inventions and expert in the technical domain. If the Engine workshops put on by the TVC is their Boot pushing their commercialization. Attendance is Committee feels that the ingredients are in place to The primary aim of TVC is to foster Camp program that occurs several times during usually around 100. Each Tech Tuesday is built move forward, funding will be allocated to finance commercialization of University technology the year. Boot Camp is targeted at University of around a theme, which may be an area of technology an approved set of tasks, deliverables, and milestones through connections between student teams, Utah faculty, researchers, graduate students, and or an issue in commercialization. The events are that will be monitored by the Engine Committee. faculty, and industry partners. TVC also enables other interested parties in the U of U community. designed to foster connections and deal-making. An innovation can receive more than one Engine students (Innovation Scholars in particular) Throughout this program, faculty members learn funding round. Engine Fund projects must involve to participate in various competitions and more about TVC and the services that it provides. Commercialization Interchange. This is a limited a U of U affiliation and a principal investigator. internships in a wide variety of disciplines. This program also provides informative seminars participation event, with registration costs in the Various technologies are highlighted and featured on patent law, opportunities for funding, and the range of $2,000 per person. Events unfold over Software Development Center (SDC). This by TVC each month to foster marketing and University’s intellectual property and disclosure 3-4 days, and draw participants from universities Center works separately from, but in collaboration partnerships. TVC also sponsors the Student procedures. The benefits of Boot Camp include and companies across the country. The focus of the with, the Technology and Venture Commercial- Entrepreneur Conference and programs such evaluating the potential of faculty inventions and event is to spotlight and discuss best practices in the ization office. Substantively, it is a creature of the as the Startup Center for Students (StaC). University based start-ups, grant and funding commercialization of university-linked technologies. Scientific Computing and Imaging Institute (SCI) analysis, and an introduction to Business and Participants are “technology managers of all types”. and is organizationally linked to the many pockets Summary and Parting Comments Technology Development (BTD) Teams. of software development across the U of U campus. While the state of Utah’s sustained commitment Utah Innovators Showcase. This two-hour The SDC staff of a half-dozen individuals is deep These units guide faculty and to fostering economic development has made Utah BTD Teams. event features “speed dating” pitches by university in terms of academic and business perspectives on graduate students through the commercialization a premier destination for business, the University of technology representatives, faculty, and student software development. They have been involved process. Each team falls under one of three Utah has established a complementary campus-wide inventors to venture capitalists and angel in software development across a wide range of categories: Health Sciences; Science, Business and culture of “academic capitalism,” as championed investors. This program is early in its history but problem domains, and all have deep entrepreneurial Humanities; and Engineering. Depending on the by James Brophy in the 1980s. This is exemplified has made a number of successful placements. experience in the software space. Most have type of intellectual property, one of these teams by its record of technology commercialization advanced degrees from a Utah-based institution, will serve as the point-of-contact between faculty The Engine Funding Program. The Engine and entrepreneurship education programs. The and one had served former Governor Huntsman and industry, including the pursuit of funding is a novel approach to accelerate the appraisal, University of Utah is not only doing innovative as State Science Advisor and Director of the and the steps from disclosure to commercializa- business vetting, and commercialization of early and groundbreaking research, they’re using that Utah Economic Clusters Initiative. The SDC tion. BTD Teams also work in conjunction with stage inventions that come to the attention of the research to form successful start-up companies team works with early stage ideas for application the University’s Entrepreneurial Faculty Scholars TVC office. The approach is based on progressive that generate jobs and boost the economy. software—and their inventors—with the goal (EFS) and the Entrepreneur-in-Residence program. technical and business development milestones, being the development of a working prototype. One of the clearest concluding statements about Through working with a BTD Team, a faculty plus developmental funding. A U of U inventor technological innovation at the University of Utah is or student inventor will be able to formulate an can apply for the program whenever the Engine The TVC office clearly plays an important role that there is a lot going on and it changes pretty fast. IP strategy, a commercialization strategy, and a Committee meets. There are also three key roles in the technology transfer of University inventions. Among all of the cases in this volume this university funding strategy vital to the technology’s success. and role incumbents that seem to make the program Listed on the TVC website are the available is also perhaps the truest reflection of the culture work: One is a private sector Sponsor, who has the technologies from student and faculty inventors. These are networking events held and development of its setting. The state of Utah Tech Tuesdays. assets and experience to potentially be an investor in The site also extensively details areas of interest weekly at the end of the workday. The program has been a risk-taking, entrepreneurial place since its an innovation; another role is a Champion, who is for students, faculty, start-ups, and partners. Each

240 241 INNOVATION U 2.0: New University Roles in a Knowledge Economy University of Utah founding, which in turn is a reflection of the people program and service models to accomplish those 4 Rideout, E. C. (2012, March 21). Bounded who settled there and their struggles to survive, ends. Several of the cases in this volume describe Rationality and the Supply Side of Entrepreneurship: and their ability to establish a culture that reflected schools in which the primary organizational Evaluating Technology Entrepreneurship their values and outlook. It is no coincidence and service models for fostering innovation Education for Economic Impact SSRN: that our case selection process for this project have been in place for several years and undergo http://ssrn.com/abstract=2027023). ended up with two institutions from one relatively as-needed changes in a fairly deliberate manner. low population state characterized by lots of dry The University of Utah setting seems a little 5 Battelle Technology Partnership Practice. country and many rugged mountains. Innovation different. To stretch a metaphor, the Utah (2012). Accelerating Utah’s Life Science and struggle have always been part of the deal. innovation dish is more like a creative bouillabaisse Industry. Columbus, Ohio: Battelle. org that changes spices, protein sources, and And in fact the struggle continues. However, vegetables depending on what was snagged in one of the challenges of being in a place like the most recent hunting or fishing expedition. Utah is that there are limitations on the scope of potential community partnerships in the corporate The culture of the University is amazingly environment. Salt Like City is not a Chicago, caught up in innovation and change, as is the nor a Santa Clara County, nor a greater Dallas. In evolving culture of the metro area and the state that context it is interesting to note the relatively for that matter. So, this chapter represents what modest amount of industry sponsored research at was happening in and around the U of U in early the University of Utah. As the state and the metro 2013. It will likely be a different mix next year. area mature, that will likely change, and partnership opportunities will expand in scope and variety. The perspectives, creativity, and out-of-the-box thinking Endnotes that characterize Utah are needed to tackle global problems. But the U of U seems to understand 1 Association of University Technology this; they are bending over backwards to encourage Managers. (2013). AUTM U.S. Licensing Activity diversity, creative boundary-spanning, and divergent Survey: FY2012. Deerfield, IL: Association thinking. One of their key challenges will be to of University Technology Managers. ensure that their corporate partners expand in number and will support cutting edge research 2 National Science Foundation, National requiring diverse approaches, unconventional Center for Science and Engineering Statistics, students, and independent faculty. Another key FY2011. Table 14. Higher education R&D challenge as the U of U continues its path of growth expenditures, ranked by all R&D expenditures, and competitive excellence is to stay entrepreneur- by source of funds: FY2011. Table 15. Higher ial and innovative in research and technology, education R&D expenditures, ranked by all as well as in organization and management. R&D expenditures, by R&D field: FY2011.

On the other hand, a very positive characteristic 3 University of Utah. Mission Statement. of the University of Utah case is that while the Retrieved from http://admin.utah.edu/ University has been innovative in developing office_of_the_president/university-mission-statement technologies and business models, it has been likewise innovative in developing the mix of

242 243 Summary and Recommendations*

As promised in the Introduction, this book show- Our team’s goal was really to facilitate doing cased twelve case studies of exemplary innovation- rather than pondering. The case studies were producing universities in the United States. Based intended to pique the interests of readers who on the selection and data collection methodologies might be motivated to perform their own analyses described earlier, we make no claims that this and plot their own change efforts. As discussed dozen has cornered the market on innovative in the Introduction chapter, we hope that the universities. Notwithstanding the methodological book reaches non-university people, such as limitations discussed in Chapter 1, we do believe legislators, community leaders, corporate R&D that the universities are very good indeed at managers, and technology entrepreneurs, who converting discovery and instruction into real appreciate the roles and constraints of academe, inventions, products, services and enterprises, and but who also want to nudge the change process. ultimately impacting economic development. We are pleased that our sample of cases and our Our case studies demonstrated the following: data collection yielded great diversity in schools (1) that there are universities that are demonstrably and practices. The schools are public and private, more “innovative” than most of their peers (even large and small (Arizona State with 73,000 students; those that are at about the same level of research Cal Tech with 2,200, graduate and undergradu- spending); (2) that there are policies, practices ate). Some schools have a predominant engineering and behavioral patterns that may have a causal history (Georgia Tech, MIT), Land Grants relationship to “innovativeness;” (3) that despite are well represented, while others have a more the page count, we have probably only dented the humanities and life science orientation (Stanford, range of innovation-related policies, practices and University of Utah). Some schools were born behaviors that are out there; (4) but nonetheless, the out of and retain a religious mission (Brigham practices, policies and behaviors that we did discuss Young) and others emerged from an historical are promising, as well as fungible and adaptable desire to foster the ranks of “skilled workmen, such (other universities can emulate and flat out copy as machinists, mechanics, decorators” (Carnegie them, and we encourage our readers to do exactly Mellon).1 The cases are geographically diverse that). That is really theraison d’etre of the project. and come from all regions in the US.

* This case was written by Elaine Rideout , Louis Tornatzky, and Denis Gray. INNOVATION U 2.0: New University Roles in a Knowledge Economy Summary and Recommendations

In the next few pages we would like to being of their region, their state and the nation, and Among our Innovation U 2.0 schools these promote the planning of interdisciplinary curri- revisit the themes or domains that structured widely proclaim those goals. It is also expressed value statements are constantly being refreshed cular and research initiatives during the depths our information collection and writing, and in historical themes and slogans that can capture a and expanded, coupled with efforts to align the of a recession; mounting the bully pulpit and remind our readers of why each is important. mindset for generations of students and faculty— encouraging words with how things are actually enabling dozens of curricular and technology We will point out some compelling anecdotes like Mens et Manus at MIT, My Heart is in the Work done. For example, in support of faculty entre- program innovations to bloom at Arizona State; and findings that emerged during the case study at Carnegie Mellon, or Think and Do at NC State. preneurs, Georgia Tech enables flexible work status, or doing the deal to turn Carnegie Institute of process. We will discuss some of the strategies, leave policies, as well as sabbaticals with companies. Technology into Carnegie Mellon University. policies, and best practices that seemed to be most Sometimes people pooh-pooh the existence Purdue’s rules and procedures are being re-written While our cases are not rich in detail on leadership important in that they involved commonalities or power of organizational culture and associated to “get the University out of the way” of inventors, behavior at the level of deans, department heads across a number of schools. Finally, we will offer values. But in addition to university cultures and to better reward entrepreneurial behavior and and faculty, ancillary data indicated that there are some suggestions and action steps within each and values that encourage innovation and private actualizing ideas in the real world. Innovative many; the brief story of Bob Langer at MIT is one. domain for readers interested in implementing sector engagement, there have been instances of universities even turn the spotlight on themselves Moreover, when one sees inordinately large chunks some of the strategies in their own institution. university cultures that actively discourage activities by encouraging new and novel ways of operating. of industry-sponsored research in a department, such as technology patenting and licensing, or MIT’s academic experimentation has resulted and faculty feeling comfortable asking for leaves The Key Role of Culture students starting companies, as being dangerously in open courseware including Massive Open of absence to do a start-up, you can surmise that contrary to the core objectives of fundamental Online Courses, new education technologies, the there is an effective and effectual chair involved. The “culture” of a university, or any organization, science and education. More recently, that creative use of time (Intersession courses), and is an amalgam of what it values, what it aspires to in argument is not carrying the day as it once did. unorthodox student groupings, to name a few. A theme that was very prominent in these case terms of goals, what it intends to do more of, and studies, more so than in 2002, was the massive what it talks about. In the context of an Innovation Academic culture goes beyond the articulation To summarize, university culture goes beyond growth of research activity and organized research U, culture consists of norms, standards, and aspira of what’s right and righteous for faculty members; the articulation of what’s right and righteous units that cut across disciplines, departments, and tions that energize innovation-related planning it also encompasses the goals and practices of for faculty members and students; it includes colleges. There were many examples of leaders and actions. It includes, but goes beyond, what undergraduate and graduate education. It is aspirations of how the institution wants to impact extolling this way of doing impactful research to comprise the standard goals and aspirations of the arguably harder to “do innovation” when students the surrounding community and the larger world. both address the “grand challenges” of science, as “typical” university. Innovation culture is identified (and faculty members) are locked into narrowly It is the fuel that drives behavior. well as to be more responsive to industry partners not only by poring over innovation outcomes construed, discipline-bound programs of study and who don’t usually address R&D opportunities (e.g., invention disclosures), but also by reviewing research. It is encouraging to hear the President of The Importance of Leadership from the perspectives of academic disciplines. each university’s most cherished institutional Stanford (who is both a serial entrepreneur and a An academic discipline or body of fundamental Although from one perspective it seems that declarations including its mission statements, goals prominent scholar) advocate making students into science is typically structured to focus on methods, some of our schools have benefitted from having the and strategies, press releases, shared language, and “T-shaped people,” who have deep competence in a theoretical frameworks, modes of analysis, and key ingredients for innovation in their organizational reward structures as they pertain to innovation. key discipline and also breadth in knowledge across questions as defined by members of its “invisible DNA, all of the universities benefited from having other fields. Culture is illustrated when the vision of college;” it is not necessarily an approach that While leadership is about making things effective leaders at critical periods. These often a New American University at Arizona State calls for translates well in understanding innovation that happen; organizational culture is the juice that were most apparent during significant shifts in the academic enterprise and societal transformation, or cuts across bodies of knowledge and changing makes people want to make things happen. It is direction and growth of the university, and the cases when the Georgia Tech Strategic Plan and Vision problems, as they unfold in a business or application manifested in our case universities when professors illustrate current and historical examples. These states that the “campus culture needs to be one that setting. Innovation leaders recognize this. A look strongly believe that entrepreneurship competencies included: RadLab veterans who impacted events supports innovation, entrepreneurship, and public across the exemplary universities identified several are a worthy thing to impart to students. It is when they went back to their home universities service …. [and be] a leader among universities in key leadership strategies, practices, and results: revealed when universities decide forthrightly to innovation.” Those are allcultural value statements at the end of World War II; senior administrators be a major player in enhancing the economic well that reinforce innovation-related behaviors. at Clemson reaching across the departments to 246 247 INNOVATION U 2.0: New University Roles in a Knowledge Economy Summary and Recommendations

Big Transformational and Durable Changes. Stanford. After the war he returned to be Dean or technology transfer programs, who have been are literally hundreds of departments, labs, centers, Each of the institutions experienced several of Engineering and then Provost, established the serial entrepreneurs themselves. A very effective and institutes. Many of these, perhaps a majority leadership episodes that dramatically and Stanford Research Park, among many accomplish- Senior Director of the Cal Tech technology transfer in some settings, are interdisciplinary or multidisci- permanently changed the course of the university. ments that included the positive inoculation of office had an extensive MIT leadership experience plinary, and often cut across organizational Some had to do with leaders successfully and people passing through. Before becoming Cal and was was one of the founders, 30 years ago, of the boundaries within the university. Aside from the significantly bringing in new resources, such Tech’s President, Jean-Lou Chameau had been at Association of University Technology Managers; role that such structures play in fostering technolog- as research funding. The rapid acceleration of Stanford, Purdue, and Georgia Tech. Petit and the head of the BYU technology transfer office ical innovation, these flexible arrangements are DOD-related research during WW II and afterward Clough (Georgia Tech Presidents in different is a serial entrepreneur and venture investor. also common where the focus is not within the in the Cold War years is an example; some schools, periods) had been at Stanford in faculty and boundaries of existing theory and epistemology. effectively led, did much better. So too were administrative roles for several years, and were The point of these case examples is simple. If Some universities have established campus-wide the significant bumps of research and curricular exposed to the culture and accomplishments of the one is interested in moving a university into an boundary spanning strategies. Stanford, for program development at Georgia Tech during the Terman era. The former president at the University innovation performance level commensurate with example, has reduced traditional disciplinary and presidencies of Joseph Petit and Wayne Clough. of Utah (which was one of the schools featured in our case study exemplars, leadership is critical, organizational boundaries by successfully bringing The transformation of Carnegie Institute of the 2002 book, as well as this volume) subsequently and simply tapping into the modal network of together experts from across campus in an effort Technology into Carnegie Mellon University during moved over to the University of Florida where academics or administrators is unlikely to show to increase research productivity, and to address the presidency of Guy Stever was a major change he worked with a talented cohort of innovators much in terms of results. However, hiring strategies bigger problems. Arizona State reorganized its that had permanent consequences. The launch of to dramatically change that school. There are that are open to a larger and more diverse pool, college and school structure from one based on the Centennial campus at NC State, which had many other examples. Any university wanting to including non-academics, can make a big difference. traditional academic disciplines to one based more on shared interests. It thus devolved to 23 several godfathers (including a Governor), was go down the Innovation U “path” needs to look Boundary Spanning is a Key another game-changing step. Innovation U progress closely at the lineage of potential leadership hires. interdisciplinary and transdisciplinary schools and seems to be built on big jumps in performance. One useful selection criterion in hiring for a senior Component colleges, each “…a unit of intellectual connectivity… academic position might be what famous and As both a rationale for the study project, and a around a theme or objective.” Faculty members Intergenerational and InterUniversity Leadership effective leader has the candidate worked with. focus of data-gathering, the notion of “boundary can affiliate with more than one faculty group, Modeling. One fascinating phenomenon that spanning” got a lot of play both in what we which appears to be a more productive approach we observed is the networking of innovation Private Sector Operational Lineage. Much of the described and studied, as well as providing a to teaching, research, and graduate training. leadership, both concurrently and over time. For key performance domains of innovation (industry- key explanatory component of innovation. We example, leaders at universities engaged in the university cooperative research, technology Secondly, disciplinary boundary-spanning is believe that boundary-spanning across disciplines defense science buildup during and after WWII transfer, entrepreneurship) will be strengthened if not a sport that is just reserved for faculty members or domains of behavior is a key component of moved on to become pioneers and innovation incumbents actually have had successful leadership and post-docs conducting large research projects; innovation. Empirical and theoretical understand- leaders at other campuses. Fred Terman had been a experiences in the private sector. There are many it is more inclusive. In the Overview section of ing of innovation processes2 assumes that different graduate student at MIT of Vannevar Bush (MIT case examples in positions ranging from tech CMU’s 2008 Strategic Plan, a very participa- levels, phases, and modalities of behaviors are Dean of Engineering and later President of the transfer director, departmental chair, provost, vice tive approach to boundary-spanning is suggested: involved. Those organizations that “do innovation” Carnegie Institution for Science in Washington, president to president. These include: University “Building on deeply grounded disciplinary better are likely to be more adept at designing plus an important leader of the Manhattan Project). of Utah President Fletcher, a former aerospace strength, we collaborate across disciplines, and the and implementing new organizational procedures Terman returned to Stanford with his degree, entrepreneur; Stanford’s President Hennessy, initiative to do so comes from the ground up, not that bridge disciplines, phases of the innovation succeeded handsomely in a faculty role, and then co-founder of MIPS Computer Systems and the top down.” Increasingly boundary-spanning process, and their associated structures. with the outbreak of WW II left campus to become Atheros Communication; Bob Langer, famous for is becoming a fact of graduate and undergraduate head of the Radio Research Laboratory (RRL) the “Langer Lab,” at MIT; and the many examples of The university cases in this volume are very curriculum, particularly those courses and programs in Cambridge, an R&D operation that dwarfed heads of university-based entrepreneurship centers, good at this. Across the dozen universities there that touch upon innovation, entrepreneurship,

248 249 INNOVATION U 2.0: New University Roles in a Knowledge Economy Summary and Recommendations and projects conducted in collaboration with Tech, headed by a Vice President, coordinates and The most robust and most dynamic but if it inhibits the ability of any student in any companies. Thinking beyond your intellectual oversees 14 programs dealing with innovation component of these trends lies in co-curricular discipline to practice entrepreneurship within home base is strongly encouraged and promoted and entrepreneurship, most of which involve and extra-curricular activities that supplement that discipline (for example if turf issues limit at Cal Tech. As a Division Chair described it: partnerships with external organizations. At MIT academic courses in entrepreneurship. The the number of courses/seats offered), this may the Office of Corporate Relations, particularly majority of schools sponsored incubators and/ not be a good thing. At Cal Tech entrepreneur- This principle dictates that the barriers its Industrial Liaison Program, provides a “guide” or accelerators for student and faculty startups, ship outcomes are facilitated by not forcing a between disciplines, departments and even service for companies trying to find their way and most sponsored business plan competitions boundary spanning discipline (entrepreneurship divisions remains very low so that both through the dense organizational underbrush of with sizeable cash awards. A few have established education) into a disciplinary specialization (such faculty and students can cross them, if they a very complicated university in order to connect innovation scholar programs, fellowships, university as a business school). Stanford similarly offers wish, without spending unnecessary energy. with a professor, department or center to sponsor venture and seed funds, and mentoring programs. ubiquitous entrepreneurship education opportuni- a research project. Working another angle of In terms of the latter, Brigham Young University’s ties even while its degree programs in entrepreneur- Thirdly, much boundary-spanning among our these relationships, with faculty and industry Venture Mentoring Services, and MIT’s Venture ship are limited by comparison. CMU creates cases involved partnering with entities external to seeking each other within Purdue’s research Mentoring Service and its national Enterprise entrepreneurs by providing intensive hands-on the university, such as private, public, or non-profit management operation, there are two individuals Forum network, are impressive practice examples. instruction across three disciplines simultane- organizations. This occurs more frequently in the with the title of Managing Director for Launching Some of the more creative support strategies offered ously (design, engineering, and business). context of industry-sponsored centers and research Centers and Institutes, who work with both to student entrepreneurs include a mandated Entrepreneurship education is a relatively recent projects, as well as in activities associated with the companies and faculty members to do just that. course for all entering freshmen (ASU), U of learning and practice of entrepreneurship, involving phenomenon and as such there are no pedagogical U’s BlockU program, special summer programs both faculty and students. There is also interesting The Rise of Entrepreneurship including high school outreach and sessions for standards of practice and little consensus on 3 variety in the physical locations where boundary- Instruction and Practice incoming student entrepreneurs, and MIT’s curricula or approach. In fact this volume’s spanning takes place. Several of our university summer “internships” that allow students to collection of in-depth descriptions of our twelve As described in the chapter cases were involved in research parks, physically Introduction be paid as they start their own ventures. case institutions’ approaches to entrepreneurship separated from the main campus, where companies we felt that entrepreneurship programs were education is the first cross-university collection on —large and small, including startups—can lease, “burgeoning” and needed “expanded coverage.” There are several clear advantages in the the subject that we know of. To summarize, it is and sometimes purchase, space and often laboratory Both of those assumptions turned out to be increased emphasis on co-curricular and extra- hard to “do innovation” when students are locked facilities. University research organizations are also correct. Our case study institutions take diverse curricular activities. One is the typically slow into narrowly construed, discipline-bound programs tenants. Thus Research Triangle Park in North approaches to entrepreneurship education, process necessary to get a new course, major, minor, of study. It is encouraging to hear academic leaders Carolina, the Innovation Hub in Gainesville, the ranging from formal courses, degrees, majors, and or concentration approved. More than one faculty champion fewer restrictions on what classes students Stanford Research Park, the Purdue Research Park, programs (Arizona State and the University of member has viewed curriculum committees as take. Clemson makes an entrepreneur-friendly the University Research Park in Utah, and the Florida for example); to a more informal approach the place where good ideas go to die. In addition, instructional approach explicit with its goals that Centennial Campus at NC State are all examples. with limited or no degrees/majors (Stanford, aside from more flexibility in launch, co-curricular education at Clemson be “grounded in engagement.” CalTech); to a focus on scientific evidence-based programs have an easier time of pulling in different In fact nearly all of the schools recognize the Finally, notable among our cases has been approaches (University of Utah, MIT); to novel disciplinary perspectives, not unlike research importance of university research and teaching in the growth of boundary-spanning enabling cross-disciplinary approaches (CMU, MIT, centers or institutes. Third, the evolving consensus local job creation, although for some the connection organizations and activities. Heretofore, most and Purdue). Most schools seemed to integrate in entrepreneurship education is that skills and was more implicit than explicit. The University of universities developed external partnerships on mentoring, co-curricular and extra-curricular knowledge are best acquired via “learning-by- Utah is one of the more explicit examples. Years a case-by-case base; several of the universities activities, and community engagement into doing,” as opposed to learning about doing. ago an academic administrator at the University in this volume have established centralized and their entrepreneurship education programs. encouraged the campus to engage in “Academic consolidated organizations to function as enablers. The placement of entrepreneurship within a Capitalism” and pursue active relationships The Enterprise Innovation Institute at Georgia business school silo is the conventional arrangement,

250 251 INNOVATION U 2.0: New University Roles in a Knowledge Economy Summary and Recommendations with business and industry. The message is still they will share procedures, lessons, and time. Also, another institution, it is useful to understand swaths of the university. Hire people who have part of the culture and lore of the institution. the programs and activities that have been around all the staffing and spending implications. been successful in promoting, championing, for a few years, with growing positive impacts, are and better yet, doing and inspiring innovation. Best Practices and Policies are the ones that are most likely to have procedures Becoming an Innovation U? manuals, examples of what worked, and so on. • Build a Culture. If you are able to develop Fungible and Adaptable We do not presume to be able to give To take another example, in the entrepreneur- or hire innovation-oriented leaders, then over A guiding premise of this project was that if readers a surefire path to become more like our ship sections of each case there are various centers time mission statements, goals, core values, we spent a year or so trying to identify worthwhile case study universities. In fact, even with the and all the rest will begin to cluster around and curricular programs briefly described, each things that innovation-oriented universities are mini-histories that are part of each case, causality of which might be a good “fit” with what might innovation. Try to spread those values and goals doing, then universities could adopt those and paths are obscure. This section can only other work in one’s own institution. Same drill: call, throughout the university. Make sure internal policies and practices, accelerate their own provide our take on what things might help. email, download, and maybe get on an airplane. policies and procedures are increasingly aligned planning processes, and then move rapidly into with those new goals and mission statements. • Encourage an External, Private Sector implementing new ways of doing innovation. One of the big debates in the literature Orientation. Being innovative and inculcating We knew that the response of some academic on organizational innovation is the relative • Practice What You Teach. Innovate by that mindset in faculty, students and staff can leaders would be: “We could never do what importance of maintaining strict fidelity to the reinventing internal operations. At MIT be tough sledding, and one needs to be more they are doing at X; we are different in these target innovation, versus promoting reinvention for example, entrepreneurship students attuned to the world outside the university. That are encouraged to identify ways that the ways and constrained in these other ways.” or adaptation4 thereof. In our view, not only are might mean many things: in entrepreneurship university itself could change to better the programs and practices described in the cases However, while that response may be accurate education, focus more energies on real-world support student innovation. Implement fungible, but they are also adaptable. That is, most for some, others will see opportunity. Yes, we agree simulations and experiential coursework, as policies that reward innovation mindsets program practices and details can be tuned and that some things are hard to move or change, and well as co-curricular experiences; in developing and entrepreneurial practice. Engage with changed to be a better fit with the culture and ways the bureaucracies of universities can be unwieldy. centers and institutes, make sure that a large the outside world not only for the sake of of doing things at another institution. Admittedly, High on the roadblock list are culture and fraction of the stakeholders and participants innovation but also to help make student it is possible to steer so far off course—in other leadership. When those shift, things start moving. are from the private sector; encourage faculty learning more effective and relevant. Model words to lack fidelity with the organizational or research that has links to both conceptual the behavior that you are trying to encourage. policy innovation described—that outcomes are We also think that most practices and policies questions and problems out in the world, and attenuated. It also may be easier to adopt and adapt in universities are fungible, as in “capable of being reward and encourage faculty and students • Take Advantage of Innovation-Focused Federal program practices from a Georgia Tech to another replaced in kind, as movables.” Change can be accordingly; conduct more use-inspired and State Initiatives. As we pointed out in our engineering-intensive institution, and so on. incremental, and maybe accelerate later on. For research, and support entrepreneurial Introduction chapter, federal and state agencies example, one could read about technology transfer have become more proactive in promoting an One implementation issue that cannot be problem-solving initiatives to address them. policies and practices pertaining to student innovation agenda at universities over the past ignored is the requisite staffing level of newly inventions, for instance from Clemson and Purdue, • Hire Talent. Many of the Innovation U stories decade, as reflected in a variety of new program adopted programs and policies. For example, and fairly quickly have 2 or 3 good ideas that might involve transformational leaders, who are initiatives like the NSF’s I-Corps program and if changes are made to increase invention improve deal flow in one’s own school. Make a few hired and then have major roles in influencing the Department of Energy’s Public-Private disclosures (e.g., a more functional Web site) phone calls, explore respective web sites, and fairly a university to change. If you really want to Manufacturing Innovations Institutes. Most of in a technology transfer office, that will impact quickly there could be some specific improvements move a campus into a more energetic embrace the universities included in this report are well staffing needs in terms of both quantity and that might be made in one’s own institution. of innovation-related activities, you should try aware of these funding opportunities and have credentials of office personnel necessary in order to find experienced and proven innovators, who made it a priority to pursue those resources. to move those disclosures along. If new program Moreover, most or all of our case universities are can enhance a function, grow new capacities or innovations are in effect “transferred” from so pleased with what they have accomplished that organizations (centers, institutes), or lead large • Adopt Outcome-Based Orientation. Having

252 253 INNOVATION U 2.0: New University Roles in a Knowledge Economy Summary and Recommendations

an outcomes-based orientation allows for the is important. Innovation is born in university labs, on our public and private universities will be even & E. Seidman (Eds.). The handbook of development of quantitative metrics such involves inventive professors, and graduate and more apparent and visible, and many more people community psychology. NY: Plenum Press. that you can benchmark your progress toward even undergraduate students. Sometimes it leads will benefit. If we, or someone else, were to tackle 5 becoming an Innovation U. Some schools to patents and licensing deals with companies; an Innovation U 3.0 project in a decade, perhaps Audretsch, D. B. & Keilbach, M. (2007). The have an outcomes orientation due to historic sometimes faculty and students come up with we will find order-of-magnitude improvements theory of knowledge spillover entrepreneurship. or cultural values that emphasize concrete, their own ideas about how to apply scientific in the innovation outcomes that matter most— Journal of Management Studies, 44(7), 1242-1254. measureable outcomes over process (U of U, breakthroughs in the real world. The epistemology new products, services, companies, and jobs— Brigham Young). The examples set by Stanford of the process by which start-up companies plus an enhanced quality of life for all of us. and MIT in conducting huge surveys of all become the byproduct of university-generated new living alumni to assess business, career, and knowledge has been described in a robust literature innovation outcomes should be replicated widely. that we need not summarize here.5 Suffice it to say Endnotes Quantifying the economic and social impacts that the technology clusters of companies around of university innovation-related programs and major research universities are no accident. They 1 One of the biases of the senior author is to activities should be routine. Unfortunately, the are evidence of what happens when boundary spend more words on institutional histories, extent to which impacts and outcomes are spanning between abstract theory and applied since universities often seem to be reliving what assessed varies from not at all to some. science occurs. University innovation matters transpired long ago. Illustratively, if you ever because it is an important engine to generate have the pleasure of visiting the University of • Strategic and Tactical Budgeting. Many schools entrepreneurial ecosystems within local economies. Virginia, you will discover that many people realized the futility of trying to be all things there talk about Mr. Jefferson as if they had to all people and sharpened their innovation The major goals of writingInnovation U 2.0 profile by strategic and tactical budget decisions as articulated in the Introduction were several: to just lunched with him in the next room. that focused investments in core competency summarize new or larger domains of innovation 2 Rogers, D. M. (2003). Diffusion of Innovations areas, while concurrently retiring other areas activity in universities (particularly entrepreneur- (5th edition). New York, NY: Free Press; that were no longer cutting edge. At Clemson, ship); to look more closely at the roles of leadership Tornatzky, L.G. and Fleischer, M. (1990). a reorganization, prompted by state budget and culture to foster university innovation; and The Processes of Technological Innovation. cuts, tracked the most promising technology to look at some different universities that, for Lexington, MA: Lexington Books. clusters within the state, consistent with an various reasons, were missing from the 2002 case “outward focus” orientation. Clemson also sample. This book is larger and more ambitious 3 Rideout, E. & Gray, D. (2013). Does implemented courageous divestments (which for than the 2002 volume, and we hope that the Entrepreneurship Education Really Work? public institutions can be politically difficult). additions provide valuable information. A Review and Methodological Critique of CMU takes a “comparative advantage” These case studies should not be considered the Empirical Literature on the Effects of focus, building excellence in core fields; at University-based Entrepreneurship Education. Cal Tech, specialization has always been a as either “complete” or current. Any major US university is always in the process of trying to make Journal of Small Business Management, fact of life:“First, by design we don’t cover all itself better—for its students, faculty members, Special Issue: Measuring the Impact of areas of engineering and applied science.” industry and community partners, and for people Entrepreneurship Education, 51(3), 329-351. whose taxes and checks pay a lot of the bills. If Looking Ahead 4 Mayer, J.P. & Davidson, W.S. (2000). the small fraction of university discoveries that Dissemination of innovation as social We conclude as we began, with a reiteration of are commercialized today could be increased change (pp. 421-438). In J. Rappaport why descriptive research on university innovation substantially over the next ten years, the impacts 254 255 About the Authors

Louis G. Tornatzky. Dr. Tornatzky was born and reared in Cleveland, Ohio, served in the United States Marine Corps, has a BA Cum Laude from Ohio State University, and a PhD from Stanford University. His field is social and organizational aspects of technological innovation. He was a Professor at Michigan State University; Group Leader in Innovation Processes Research at NSF; Lab Director at the Industrial Technology Institute in Ann Arbor; Director of the Southern Technology Council; Senior Associate with Battelle Memorial Institute; Senior Scholar and VP for Research at the Tomas Rivera Policy Institute; VP at Select University Technologies; and Department Chair, Professor, and Co-Director of the Center for Innovation & Entrepreneurship at California Polytechnic State University, San Luis Obispo. Dr. Tornatzky has authored over 100 books, journal articles, and monographs on innovation. He has consulted with over 50 universities and regional technology organizations in the US and abroad.

Elaine C. Rideout. Dr. Rideout holds the MPP from the University of Michigan’s Ford School of Public Policy, and the PhD in Psychology from NC State University where she is a Kauffman Fellow in Entrepreneurship and Adjunct Professor with the Entrepreneurship Initiative. Her field is enterprise generation for economic growth. She formerly served as President of Economic Investment Strategies (EIS) Associates and Interim Director of NC State’s Engineering Entrepreneurs Program. A founder of 8 companies or non-profits and one government agency (the Federal Retirement Thrift Investment Board), her current venture, WISERsystems Inc., is an award-winning NC State Centennial Campus technology startup that is also a USDA Phase II SBIR grantee. Dr. Rideout serves as Founder and CEO of the company. She has authored over 20 journal articles and book chapters, and a comparable number of technical reports and white papers. About the Contributors

Scott Doron is Assistant Director, Office of Science and Technology, North Carolina Department of Commerce, as well as with the North Carolina Board of Science and Technology, where he works to promote technology industries and jobs. Previously he was Director of the Southern Technology Council, in Research Triangle Park, NC, a multi-state consortium of public and private organizations interested in enhancing the role of technology in economic development. Scott has worked in this field for over two decades, including at the technology office of Oxford University, and with the South Carolina Department of Commerce.

257 Denis Gray is Alumni Distinguished Graduate Professor, Psychology in the Public Interest, at North Carolina State University. For two decades he has led a unique, multi-faceted, “improvement focused” evaluation of the National Science Foundation’s (NSF) longest-running cooperative research center program, the Industry-University Cooperative Research Centers (IUCRC). His PhD is from Michigan State University, in Ecological Psychology, and he has spent the past 35 years at NC Stare in various teaching, research and program leadership roles.

Drew Rivers received his PhD in Psychology at North Carolina State University, and is now a Post Doctoral Scientist and Research Associate with NC State. He continues to work in the area of industry-university research partnerships and innovation, from the perspectives of both analysis and consulting.

Olena Leonchuk is a PhD candidate at North Carolina State University; Elizabeth Ann Pitts is a PhD candidate at North Carolina State University.

Katie Brennan, Rachel Fukuyama, Jennifer Ann Fuss, Toby Reaper, and Wayne Wilks all suffered through Dr. Tornatzky’s class, Industrial Technology 428, Commercialization of New Technologies, at Cal Poly, San Luis Obispo. They all ended up receiving fine grades therein, and then worked on this project.

258 For downloadable PDF copies of this book, please visit: www.Innovation-U.com NIH Office of the Ombudsman: Collaboration and Team Science: A Field Guide

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Our Services by L. Michelle Bennett, Howard Gadlin, and Samantha Levine-Finley Frequently Asked Questions As modern research methods have become more specialized and the true complexity of today’s most pressing health issues and diseases is revealed, collaborations among scientists trained in Tools for Handling Conflict different fields have become essential for exploring and tackling these problems. This specialization NIH Employee Resources of research methods has made interdependence, joint ownership, and collective responsibility between and among scientists near requirements. These features of team science may not suit Code of Ethics everyone, but given these current trends, it is increasingly likely that most researchers will find Alternate Dispute Resolution Links themselves asked to participate on or lead a research team at some point in their careers. NIH and Federal Resources As the focus on research teams sharpens, questions are emerging about what constitutes a successful team and how research teams can maximize their effectiveness and experiences. Not About Us every team is successful—some are able to achieve only some of their goals, or fail and dissolve. Other teams are highly successful—reaching and often exceeding their recognized goals and creating positive experiences for team members and the institutions that support them. Why is this the case? What constitutes a successful research team? Why do some research teams succeed while others do not? What factors maximize a research team’s productivity or effectiveness? How can research teams be best recognized, evaluated, and rewarded?

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Best US Universities for Innovation Transfer?

Posted on December 14, 2011 by Melba Kurman

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Comparing Innovation Transfer Activities of U.S. Research Universities Categories A university’s ability to create and share innovative technology and know-how should be evaluated in a holistic way that includes both academic and commercial activities. In this article I compare the innovation transfer activities of U.S. research universities in a new, multi-faceted way: by counting and Archives mapping universities according to their ability to:

1. Publish Papers 2. Generate New Inventions, and 3. Attract Industry Research Funding IX COMMUNITY MEMBERS

Why these three axes? A university’s scholarly publishing equals its ability to share knowledge via traditional channels; its invention activity reflects faculty interest in, and whether commercialization activity is valued on campus; industry funding equals the value of informal interactions between university and industry scientists (I’ll explain this one later). Combined, these arenas provide a holistic picture of a university’s activity in generating and sharing new technologies and scientific know-how.

To visually depict these comparisons, I made four bubble charts. The first bubble chart maps the usual

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suspects — the top 22 best-funded large U.S. research institutions. The remaining charts look at a new playing field, one where universities are compared according to their performance per million dollars of federal research funding, a view that triggers the emergence of a refreshing new set of highly performing universities.

This analysis represents university activity for the year 2010. The data on publications comes from the ISI Web of Science database. The data on disclosures and industry funding come from annual metrics JOIN THE COMMUNITY collected by the Association of University Research Managers (AUTM, 2010). (If you spot data oddities or omissions for your university, let me know.)

1. Comparing the top 22 research universities

This bubble chart compares the biggest U.S. research universities. Here’s how to make sense of this chart (it’s best to view this on a large screen):

the vertical axis represents total number of publications for the year 2010 the horizontal axis represents how many inventions university researchers disclosed that year the size of the bubble represents how much industry funding Your hosts, Braden Kelley, the university got that year Julie Anixter and Rowan Gibson, are innovation writers, So, if a university bubble is high up on the chart, that university speakers and strategic advisors produces a lot of papers. If a university sits out to the far right, it to many of the world’s leading creates a lot of new inventions. The bigger the bubble representing companies. a particular university, the more industry funding that university Click to Enlarge received in 2010. “Our mission is to help you achieve innovation excellence Not surprisingly, Harvard researchers publish a significantly larger inside your own organization total number of papers than those at other universities. Duke, University of Colorado and Washington by making innovation University of St. Louis have high levels of research funding from industry sources. CalTech researchers resources, answers, and best are strong in both paper publishing and creating inventions: on average, for each invention reported by a practices accessible for the CalTech researcher, six scholarly papers were published. greater good.”

The University of Texas and University of California systems aren’t depicted here for the simple reason that their numbers are so large they compress the rest of the university bubbles into a messy blob. If you’d like to imagine these two gargantuan university systems in this chart, visualize two bubbles roughly one-third larger than the big red bubble that depicts the University of Colorado floating in the upper right hand corner. In other words, when it comes to the absolute number (not corrected according to federal funding) of papers published, new inventions and industry research funding, Texas and California perform very well.)

2. Universities that publish the most papers per federal dollar

Scholarly publications, or what some people call “open science” remains the largest, most critical source of university research to industry product development efforts. For this chart, I set up a level playing field. To figure out a university’s publication activity independent of the size of its federal research budget, I calculated how many publications each university churned out per million dollars of federal funding. This way, a new group of universities emerge as top performers.

On this chart, the venerable Harvard shrinks in comparison to the Universities of Arkansas and Alabama. In fact, the number of publications from the University of Arkansas was so large — 165 papers per million dollars of federal research, almost three times more than the next-up university — that I checked and double- checked the count in ISI’s web of Science. (If this number is incorrect or deserves further explanation, please let me know or comment below. I can re-make the chart if needed.) The University of Akron appears to be a well-rounded university as it ranks in the top twenty Click to Enlarge according to publishing per federal dollar, and also dominates its peers according to new inventions and industry funding.

3. Universities that attract the most industry research funding per federal dollar

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To represent the informal interactions between university and industry scientists, I chose to map how much industry funding a university receives. First, I’ll explain what went into this chart, then I’ll explain why industry research funding represents the vitality and quality of the informal relationships between university and industry scientists.

To make the chart, first, I pulled out the 20 universities that attract the most industry funding per million dollars of federal funding. To do this, I divided their total 2010 industry funding by their 2010 federal funding. In other words, the universities depicted on this chart are high performers, attracting large amounts of industry funding for their size and amount of resources.

Next, I charted the top 20 universities in this group according to their publications (vertical axis) and invention disclosures (horizontal axis). In this chart, the size of the bubble represents each university’s industry funding divided (or normalized by) how much federal funding it received in the same time period. The numbers of publications and new inventions on the axes in this chart, however, are the actual number generated by each university. The size of the bubbles represents how much industry funding that university received, again, a larger bubble representing a greater amount of money.

Out of this group, Duke receives the most industry research funding per million federal dollars. Next are the West Virginia University and University of Alabama. Out of this group of 20 well-funded universities, the Columbia and the University of Maryland generate high numbers of both scholarly publications and new inventions.

Quantifying informal knowledge exchange between university and industry scientists is notoriously difficult (for example, how would one measure conversations, consulting engagements, informal collaborations?). Yet, industry funding is a strong proxy that indicates the value and intensity of the informal interactions between a university’s and industry scientists. Turns out that the amount of funding a university researcher receives from a company is likely to be the downstream result of having strong connections in the chimerical, yet widely acknowledged informal channel of university knowledge transfer. Why?

According to research described in a February, 2007 article by Branco Ponomariov and P. Craig Boardman, “We find that involvement in informal interaction is associated with higher probability of undertaking collaborative research with industry as well as with a higher allocation of research time to collaborative research with industry.” In other words, if individual faculty members are intensely and productively involved with their industry-based colleagues, they are more likely to eventually attract an industry sponsor for their on-campus research.

Interestingly, this research offers another compelling reason that university patents are not good measures of innovation. Ponomariov and Boardman discovered that although active faculty partnered with industry scientists to bring a commercial product to market, these joint research projects did not involve university-owned patents. Nor did owning or working in a private company (e.g. a startup) increase the odds that a university researcher would have strong connections to industry. Instead, researchers state that

Click to Enlarge “Curiously, having worked with industry personnel in work that

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has resulted in a patent does not have a statistically significant effect on the dependent variable. Having worked at a private company as an owner, partner or employee is also not statistically significant.”

4. Universities that invent the most new inventions per federal dollar

Finally, new university inventions. I selected this group of 20 universities by dividing their total number of formally disclosed new inventions by how much federal funding they received. Similar to the chart above, the vertical axis = number of publications per million dollars of federal funding; the horizontal axis = number of inventions per million dollars of federal funding; the size of the bubble = industry research contracts.

First, a disclaimer on counting new inventions as a measure of university innovation transfer: reporting a high number of invention disclosures is a laudable achievement. It’s a good sign that university researchers trust and value their university’s formal technology transfer process. However, keep in mind that the majority of university researchers (even those considered high-performing) disclose few or no inventions to their university’s technology transfer office. Yet, university faculty and graduate students are keenly aware of how their research applies to real-world challenges, and they continue to perform cutting-edge research that makes tremendous contributions to industry innovation.

The reason I chose the number of new inventions a university generates each year as a meaningful measure of a university’s innovation transfer ability is that new inventions serve as a significant indicator of a university’s commitment to, and skill in commercializing research. For this reason I like new inventions more than patents as a measure of a university’s innovation climate; patents tend to reflect local policy and the size of a university’s patent budget.

Here’s what I like about correcting for differences in federal funding: some of these universities actually disclosed a relatively small absolute number of total inventions. Yet, if you count invention bang for the buck, these small schools are actually turning their research into reported inventions at a brisk rate, e.g. University of Akron, Michigan Tech and South Dakota State.

Overall, Brigham Young University turns its federal funding into the largest number of new inventions, disclosing on average, five Click to Enlarge inventions per million dollars. Louisiana Tech, Auburn and the New Jersey Institute of Technology do well here too, although the relatively small size of their bubbles indicates that they earn somewhat less in industry funding.

What’s next?

Policy makers, university administrators and others spend a lot of time and effort trying to figure out how to track and chart a university’s skill in generating and sharing new knowledge. Where they fall short is that most metrics today count contractual units of knowledge, for example patents issued, new startups and license revenue earned by university-owned patents. Instead, we need to expand how we measure how effectively universities translate federal research funding into new knowledge and new technologies by honoring channels that do not involve intellectual property. Of course the formal university technology transfer process is a valuable channel that should be valued and maintained. However, the fact remains that most industry scientists keep tabs on innovative university research by reading scholarly articles, informally interacting with their university-based colleagues and if that goes well, by eventually funding on-campus research.

image credit: amars-world.com

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Melba Kurman writes and speaks about innovative tech transfer from university research labs to the commercial marketplace. Melba is the president of Triple Helix Innovation, a consulting firm dedicated to improving innovation partnerships between companies and universities.

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This entry was posted in Feature Of The Week and tagged Association of University Research Managers, AUTM, Federal Research Funding, Industry Research Funding, Innovation Transfer, ISI Web of Science, Joint Research Projects, New Inventions, Open Science, Published Papers, U.S. Research Universities, universities. Bookmark the permalink.

7 Responses to Best US Universities for Innovation Transfer?

James Mawson says: December 27, 2011 at 9:30 am

Hi Melba, really interested in your consulting work. I edit a trade paper on corporates backing entrepreneurs and am launching a new one on university venturing given the number of CVCs trying to help in the latter area. Keen on your thoughts as a result! cheers, Jim

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tanford University is so startlingly RELATED LINKS paradisial, so fragrant and sunny, it’s AUDIO: KEN AULETTA ON SILICON VALLEY AND STANFORD UNIVERSITY. Sas if you could eat from the trees and TABLET & MOBILE KEYWORDS live happily forever. Students ride their STANFORD UNIVERSITY; SILICON VALLEY; JOHN EDITIONS bikes through manicured quads, past HENNESSY; EDUCATION; ENTREPRENEURS; blooming flowers and statues by Rodin, to DISTANCE LEARNING; TECHNOLOGY buildings named for benefactors like Gates, Hewlett, and Packard. Everyone seems happy, though there is a well-known phenomenon called the “Stanford duck syndrome”: students seem cheerful, but all the while they are furiously paddling their legs to stay afloat. What they are generally paddling toward are careers of the sort that could get their names on those buildings. The campus has its jocks, stoners, and poets, but what it is famous for are

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http://www.newyorker.com/reporting/2012/04/30/120430fa_fact_auletta?currentPage=all[3/1/14 8:38:36 PM] Is Stanford Too Close to Silicon Valley? : The New Yorker

Innovation comes from myriad sources, including the bastions of East Coast learning, but Stanford has established itself as the intellectual nexus of the Available to subscribers via the complete archive. information economy. In early April, Facebook acquired the photo-sharing service Instagram, for a billion dollars; naturally, the co-founders of the two-year-old MORE FROM THE NEW YORKER company are Stanford graduates in their late twenties. The initial investor was a THE “GOINGS ON” APP Stanford alumnus. What to do in New York City, now with movie times/theaters, save-to-calendar, and bar reviews. The campus, in fact, seems designed to nurture such success. The founder of Sierra THE CARTOON BANK Ventures, Peter C. Wendell, has been teaching Entrepreneurship and Venture License New Yorker cartoons for professional use: Capital part time at the business school for twenty-one years, and he invites sixteen Add humor to ad campaigns, books, newsletters, and more. venture capitalists to visit and work with his students. Eric Schmidt, the chairman of Google, joins him for a third of the classes, and Raymond Nasr, a prominent THE NEW YORKER STORE communications and public-relations executive in the Valley, attends them all. Scott Shop this week’s issue.

Cook, who co-founded Intuit, drops by to talk to Wendell’s class. After class, “THE NEXT NEW THING” faculty, students, and guests often pick up lattes at Starbucks or cafeteria snacks and Stories on innovation, in The New Yorker Reader make their way to outdoor tables. series for tablets and smartphones. THE COMPLETE ARCHIVE, 1925-2014 On a sunny day in February, Evan Spiegel had an appointment with Wendell and A Web-based archive of issues from our first to this Nasr to seek their advice. A lean mechanical-engineering senior from Los Angeles, week’s. in a cardigan, T-shirt, and jeans, Spiegel wanted to describe the mobile-phone AUDIO EDITION application, called Snapchat, that he and a fraternity brother had designed. The idea Subscribe to a weekly download of selected articles came to him when a friend said, “I wish these photos I am sending this girl would from the magazine, at Audible.

disappear.” As Spiegel and his partner conceived it, the app would allow users to ON THE TOWN avoid making youthful indiscretions a matter of digital permanence. You could take Exclusive events and offers from The New Yorker’s advertising and promotion department. pictures on a mobile device and share them, and after ten seconds the images would disappear.

Spiegel needed some business advice from campus mentors. He and his partner already had forty thousand users and were maxing out their credit cards. If they reached a million customers, the cost of their computer servers would exceed twenty thousand dollars per month. Spiegel told Wendell and Nasr that he needed investment money but feared going to a venture-capital firm, “because we don’t want to lose control of the company.” When Wendell asked if he’d like an introduction to the people at Twitter, Spiegel said that he was afraid that they might steal the idea. Wendell and Nasr suggested a meeting with Google’s venture-capital arm. Spiegel agreed, Nasr arranged it, and Spiegel and Google are now talking.

Spiegel knows that mentors like Wendell will play an important part in helping him to realize his dreams for the mobile app. “I had the opportunity to sit in Peter’s class as a sophomore,” Spiegel says. “I was sitting next to Eric Schmidt. I was sitting next to Chad Hurley, from YouTube. I would go to lunches after class and listen to these guys talk. I FROM THE ISSUE BUY AS A PRINT E-MAIL THIS met Scott Cook, who’s been an incredible mentor.” His faculty adviser, David Kelley, the head of the school of design, put him in touch with prospective angel investors.

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If the Ivy League was the breeding ground for the élites of the American Century, Stanford is the farm system for Silicon Valley. When looking for engineers, Schmidt said, Google starts at Stanford. Five per cent of Google employees are Stanford graduates. The president of Stanford, John L. Hennessy, is a director of Google; he is also a director of Cisco Systems and a successful former entrepreneur. Stanford’s Office of Technology Licensing has licensed eight thousand campus-inspired Medical Billing inventions, and has generated $1.3 billion in royalties for the university. Stanford’s public-relations arm proclaims that five thousand companies “trace their origins to Coding Stanford ideas or to Stanford faculty and students.” They include Hewlett-Packard, educationconnection.com Yahoo, Cisco Systems, Sun Microsystems, eBay, Netflix, Electronic Arts, Intuit, Free Course Information. Study Fairchild Semiconductor, Agilent Technologies, Silicon Graphics, LinkedIn, and Medical Billing & Coding E*Trade.

John Doerr, a partner at the venture-capital firm Kleiner Perkins Caufield & Byers, which bankrolled such companies as Google and Amazon, regularly visits campus to scout for ideas. He describes Stanford as “the germplasm for innovation. I can’t imagine Silicon Valley without Stanford University.”

eland Stanford was a Republican governor and senator in the late nineteenth century, who made a fortune from the Central Pacific and Southern Pacific L railroads, which he had helped to found. Stout and bearded, he could be typecast, like Gould, Morgan, and Vanderbilt, as a robber baron. Without knowing it, this man of the industrial revolution spent part of his legacy establishing a center for what would become the Age of Innovation. After his only child, Leland, Jr., died, of typhoid fever, at fifteen, Stanford and his wife, Jane, bequeathed more than eight thousand acres of farmland, thirty-five miles south of San Francisco, to found a university in their son’s name. They hired Frederick Law Olmsted, who designed Central Park, to create an open campus with no walls, vast gardens and thousands of palm and Coast Live Oak trees, and California mission-inspired sandstone buildings with red-tiled roofs. Today, the campus extends from Palo Alto to Woodside and Portola Valley, spanning two counties, three Zip Codes, and six government jurisdictions.

Stanford University opened its doors in 1891. Jane and Leland Stanford said in their founding grant that the university, rather than becoming an ivory tower, would “qualify its students for personal success, and direct usefulness in life.” From its early days, engineers and scientists attracted government and corporate research funds as well as venture capital for start-ups, first for innovations in radio and broadcast media, then for advances in electronics, microprocessing, medicine, and digital technology. One of the first big tech companies in Silicon Valley—Federal Telegraph, which produced radios—was started by a young Stanford graduate in 1909. The university’s first president, David Starr Jordan, was an angel investor.

Frederick Terman, an engineer who joined the faculty in 1925, became the dean of the School of Engineering after the Second World War and the provost in 1955. He is often called “the father of Silicon Valley.” In the thirties, he encouraged two of his students, William Hewlett and David Packard, to construct in a garage a new line of audio oscillators that became the first product of the Hewlett-Packard Company.

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Terman nurtured start-ups by creating the Stanford Industrial Park, which leased land to tech firms like Hewlett-Packard; today, the park is home to about a hundred and fifty companies. He encouraged his faculty to serve as paid consultants to corporations, as he did, to welcome tech companies on campus, and to persuade them to subsidize research and fellowships for Stanford’s brightest students.

William F. Miller, a physicist, was the last Stanford faculty member recruited by Terman, and he rose to become the university’s provost. Miller, who is now eighty- six and an emeritus professor at Stanford’s business school, traces the symbiotic relationship between Stanford and Silicon Valley to Stanford’s founding. “This was kind of the Wild West,” he said. “The gold rush was still on. Custer’s Last Stand was only nine years before. California had not been a state very long—roughly, thirty years. People who came here had to be pioneers. Pioneers had two qualities: one, they had to be adventurers, but they were also community builders. So the people who came here to build the university also intended to build the community, and that meant interacting with businesses and helping create businesses.”

President Hennessy believes that the entrepreneurial spirit is part of the university’s foundation, and he attributes this freedom partly to California’s relative lack of legacy industries or traditions that need to be protected, so “people are willing to try things.” At Stanford more than elsewhere, the university and business forge a borderless community in which making money is considered virtuous and where participants profess a sometimes inflated belief that their work is changing the world for the better. Faculty members commonly invest in start-ups launched by their students or colleagues. There are probably more faculty millionaires at Stanford than at any other university in the world. Hennessy earned six hundred and seventy-one thousand dollars in salary from Stanford last year, but he has made far more as a board member of and shareholder in Google and Cisco.

Very often, the wealth created by Stanford’s faculty and students flows back to the school. Hennessy is among the foremost fund-raisers in America. In his twelve years as president, Stanford’s endowment has grown to nearly seventeen billion dollars. In each of the past seven years, Stanford has raised more money than any other American university.

Like other élite schools, Stanford has become increasingly diverse. Caucasian students are now a minority on campus; roughly sixty per cent of undergraduates, and more than half of graduate students, are Asian, black, Hispanic, Native American, or from overseas; seventeen per cent of Stanford’s undergraduates are the first member of their family to attend college. Half of Stanford’s undergraduates receive need-based financial aid: if their annual family income is below a hundred thousand dollars, tuition is free. “They are the locomotive kids, pulling their whole family behind them,” Tobias Wolff, a novelist who has taught at Stanford for nearly two decades, says.

But Stanford’s entrepreneurial culture has also turned it into a place where many faculty and students have a gold-rush mentality and where the distinction between faculty and student may blur as, together, they seek both invention and fortune. Corporate and government funding may warp research priorities. A quarter of all undergraduates and more than fifty per cent of graduate students are engineering majors. At Harvard, the figures are four and ten per cent; at Yale, they’re five and

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eight per cent. Some ask whether Stanford has struck the right balance between commerce and learning, between the acquisition of skills to make it and intellectual discovery for its own sake.

David Kennedy, a Pulitzer Prize-winning historian who has taught at Stanford for more than forty years, credits the university with helping needy students and spawning talent in engineering and business, but he worries that many students uncritically incorporate the excesses of Silicon Valley, and that there are not nearly enough students devoted to the liberal arts and to the idea of pure learning. “The entire Bay Area is enamored with these notions of innovation, creativity, entrepreneurship, mega-success,” he says. “It’s in the air we breathe out here. It’s an atmosphere that can be toxic to the mission of the university as a place of refuge, contemplation, and investigation for its own sake.”

n February, 2011, a dozen members of the Bay Area business community had dinner with President Obama at the home of the venture capitalist John Doerr. I Steve Jobs, who was in the late stages of the illness that killed him, eight months later, sat at a large rectangular table beside Obama; Mark Zuckerberg, of Facebook, sat on the other side. They were flanked by Silicon Valley corporate chiefs, from Google, Cisco, Oracle, Genentech, Twitter, Netflix, and Yahoo. The only non- business leader invited was Hennessy. His attendance was not a surprise. “John Hennessy is the godfather of Silicon Valley,” Marc Andreessen, a venture capitalist, who as an engineering student co-invented the first Internet browser, says.

Hennessy is fifty-nine, six feet tall, and trim, with thinning gray hair and a square jaw. He talks fast and loud, one thought colliding with the next; he bubbles over with information and data points. His laugh is a sharp cackle. Hennessy grew up in Huntington, Long Island. His father was an aerospace engineer; his mother quit teaching to rear six children. As a child, he read straight through the sixteen-volume encyclopedia his parents gave him. He studied electrical engineering at Villanova University and went on to earn a doctorate in computer science at Stony Brook University. He married his high-school sweetheart, Andrea Berti, and, in 1977, became an assistant professor of electrical engineering at Stanford.

Hennessy’s academic work focussed on redesigning computer architecture, primarily through streamlining software that would make processors work more efficiently; the technology was called Reduced Instruction Set Computer (risc). He co-wrote two textbooks that are still considered to be seminal in computer-science classes. He took a year’s sabbatical from Stanford in 1984 to co-found mips Computer Systems. In 1992, it was sold to Silicon Graphics for three hundred and thirty-three million dollars. mips technology has contributed to the miniaturization of electronics, making possible the chips that power everything from laptops and mobile phones to refrigerators and automobile dashboards. “risc was foundational,” Andreessen says. “It was one of the maybe five or six things in the history of the industry that really matter.”

Hennessy returned to teaching at Stanford, and became a full professor in 1986. In 1996, he was elevated to dean of the School of Engineering. He had little time to teach, but he marvelled at the inventions of his graduate students. He describes the time, in the mid-nineties, when Jerry Yang and David Filo took him to visit their campus trailer, which was littered with pizza boxes and soda cans, to show off a

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directory of Web sites called Yahoo. He calls this an “aha moment,” because he realized that the Web was “going to change how everyone communicated.”

In 1998, Larry Page and Sergey Brin, who were graduate students, showed Hennessy their work on search software that they later called Google. He typed in the name Gerhard Casper, and instead of getting results for Casper the Friendly Ghost, as he did on AltaVista, up popped links to Gerhard Casper the president of Stanford. He was thrilled when members of the engineering faculty mentored Page and Brin and later became Google investors, consultants, and shareholders. Since Stanford owned the rights to Google’s search technology, he was also thrilled when, in 2005, the stock grants that Stanford had received in exchange for licensing the technology were sold for three hundred and thirty-six million dollars.

In 1999, after Condoleezza Rice stepped down as provost to become the chief foreign-policy adviser to the Republican Presidential candidate George W. Bush, Casper offered Hennessy the position of chief academic and financial officer of the university. Soon afterward, Hennessy induced a former electrical-engineering faculty colleague, James Clark, who had founded Silicon Graphics (which purchased mips), to give a hundred and fifty million dollars to create the James H. Clark Center for medical and scientific research. Less than a year later, Casper stepped down as president and Hennessy replaced him.

Hennessy joined Cisco’s corporate board in 2002, and Google’s in 2004. It is not uncommon for a university president to be on corporate boards. According to James Finkelstein, a professor at George Mason University’s School of Public Policy, a third of college presidents serve on the boards of one or more publicly traded companies. Hennessy says that his outside board work has made him a better president. “Both Google and Cisco face—and all companies in a high-tech space face—a problem that’s very similar to the ones universities face: how do they maintain a sense of innovation, of a willingness to do the new thing?” he says.

But Gerhard Casper worries that any president sitting on a board can pose a conflict of interest. Stanford was one of the first universities to agree to allow Google to digitize a third of its library—some three million books—at a time when publishers and the Authors Guild were suing the company for copyright infringement. Hennessy says that he did not participate in the decision and “never saw the agreement.” But shouldn’t the president of a university see an agreement that may violate copyright laws and that represents a historic clash between the university and the publishing industry? And shouldn’t he worry that those who made the decision might be eager to reach an agreement that would please him?

Debra Satz, the senior associate dean for Humanities and Arts at Stanford, who teaches ethics and political philosophy, is troubled that Hennessy is handcuffed by his industry ties. This subject has often been discussed by faculty members, she says: “My view is that you can’t forbid the activity. Good things come out of it. But it raises dangers.” Philippe Buc, a historian and a former tenured member of the Stanford faculty, says, “He should not be on the Google board. A leader doesn’t have to express what he wants. The staff will be led to pro-Google actions because it anticipates what he wants.”

Hennessy has also invested in such venture-capital firms as Kleiner Perkins, Sequoia Capital, and Foundation Capital—companies that have received investment

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funds from the university’s endowment board, on which Hennessy sits. In 2007, an article published in the Wall Street Journal—“the golden touch of stanford’s president”—highlighted the cozy relationship between Hennessy and Silicon Valley firms. The Journal reported that during the previous five years he had earned forty- three million dollars; a portion of that sum came from investments in firms that also invest Stanford endowment monies. Hennessy flicks aside criticism of those investments, noting that he isn’t actively involved in managing the endowment and likening them to a mutual fund: “I’m a limited partner. I couldn’t even tell you what most of these investments were in.”

Perhaps because his position is so seemingly secure, and his assets so considerable, Hennessy rarely appears defensive. He knows that questions about conflicts of interest won’t define his legacy, and they seem less pressing when Stanford is thriving. Facebook’s purchase of Instagram made millions for, among others, Sequoia Capital—which means that it made money for Hennessy and for Stanford’s endowment, too.

wo decades ago, when the Stanford humor magazine, the Chaparral, did a spoof issue with the Harvard Lampoon, the Chappie, as it’s called, rearranged T Harvard’s logo—“Ve Ri Tas”—to “Ve Ry Tan.” Sometimes the campus stars are athletes. This year, the quarterback Andrew Luck is the likely No. 1 pick in the N.F.L. draft. He stayed through his senior year to earn a degree in architectural design. “I sat next to him in a class once,” Ishan Nath, a senior economics major, says. “I didn’t talk to him, but I sneezed and he said, ‘Bless you.’ For the next month, like, ‘I got blessed by Andy Luck!’ ” But, at Stanford, star athletes don’t always have the status they do at other schools. When Tiger Woods was a student, in the mid-nineties, not everyone knew who he was. One classmate, Adam Seelig, now a poet and a theatre director, spotted Woods practicing in his hallway one night and returned to his own dorm to ask who “this total loser practicing putts at 11 p.m. on a Saturday night” was.

Thirty-four thousand high-school seniors applied for Stanford’s current freshman class, and only twenty-four hundred—seven per cent—were accepted. Part of the appeal, undoubtedly, is the school’s laid-back vibe. There are nearly as many bicycles on campus—thirteen thousand—as undergraduate and graduate students. Flip-flops are worn year-round.

“To me, it felt like a four-year camp,” Devin Banerjee, who graduated last year and is now a reporter for Bloomberg News, says. “We had so many camp counsellors. You never felt lost.” Michael Tubbs, a senior who was brought up by a single mother and whose father has been in prison for most of his son’s life, says that he could not have attended Stanford without a full financial-aid scholarship. He is an honors student, and marvels at how financial aid has produced a campus of diverse students who are unburdened by student debt—and who thus don’t have to spend the first five years of their career earning as much money as they can. After he graduates, Tubbs plans to return home to Stockton, California, to challenge an incumbent member of the city council this fall.

To listen to students who are presumably in the most anxious, rebellious period of their lives express such serenity is jarring. One afternoon, I met with some undergraduates at the CoHo coffee-house. They almost uniformly described an

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idyllic university life. Tenzin Seldon, a senior and a comparative-studies major from India, was one of five Rhodes Scholars chosen from Stanford this year. She said that Stanford is particularly welcoming to foreign students. Ishan Nath, who also won a Rhodes Scholarship, disagrees with those who say that Stanford is a utilitarian university: “There are plenty of opportunities for learning for the sake of learning here.” Kathleen Chaykowski, a junior, was a premed and an engineering major who switched to English, and last year was the editor-in-chief of the Stanford Daily. She spoke about the risk-taking that is integral to Silicon Valley. “My academic adviser said, ‘I want you to have a messy career at Stanford. I want to see you try things, to discover the parts of yourself that you didn’t know existed.’ ”

Each year, Hennessy visits four to five freshman dormitories to field questions. When he visited the Cedro dorm, on January 30th, the forty or so students gathered around him in the recreation room often asked the kinds of benign question posed to celebrities on TV shows: Did he miss computer science? Or they sometimes asked the questions of young careerists: To be successful, what should we do?

The students’ calm, however, belies the stress that they are under. “Looking around, most everyone looks incredibly productive, seems surrounded by friends, and ultimately appears to be fundamentally happy. This aura of good cheer is contagious,” the editorial board of the Stanford Daily wrote in early April, in an essay that described the Stanford duck syndrome in detail. “Yet this contagious happiness has its dark side: Feeling dejected or unhappy in a place like Stanford causes one to feel abnormal and out-of-place, so we may tend to internalize and brood over this lack of happiness instead of productively addressing the situation.”

n late 2010, Mayor Michael Bloomberg announced that New York wanted to replicate the success of Silicon Valley in the city’s Silicon Alley, and he called I for a public competition among universities to build an élite graduate school of engineering and applied sciences on city-owned land. Seven universities submitted proposals for a campus on Roosevelt Island, and Stanford was widely viewed as the early front-runner.

Stanford’s proposal contained a cover letter from Hennessy that conveyed his sweeping ambition: “StanfordNYC has the potential to help catapult New York City into a leadership position in technology, to enhance its entrepreneurial endeavors and outcomes, diversify its economic base, enhance its talent pool and help our nation maintain its global lead in science and technology.” Stanford proposed spending an initial two hundred million dollars to build a campus housing two hundred faculty and more than two thousand graduate students. It pledged to raise $1.5 billion for the campus.

This was not to be a satellite campus. It would be solely an engineering and applied-science school. Hennessy proposed that each department base three-quarters of its faculty in Palo Alto and a quarter on Roosevelt Island. Nor was it to be solely a research facility. (Stanford has one at Peking University, in Beijing.) Faculty members across the country would share videoconference screens, and students in New York would be able to take online classes based in Palo Alto. Stanford’s chief fund-raiser, Martin Shell, who is the vice-president for development, says, “New York City could be the place we could begin to put into place a truly second campus. One hundred years from now, we could be a global university.”

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Not everyone on Stanford’s campus shared Hennessy’s enthusiasm. Members of the humanities faculty were upset that Stanford proposed to create a second campus without including liberal-arts faculty or students. Casper, the former Stanford president, asked whether the Roosevelt Island project would “reinforce the cliché that we are science and engineering and biology driven and the arts and humanities are stepchildren.” According to Jeffrey Koseff, the director of Stanford’s Woods Institute for the Environment, there were “mixed feelings,” because of fears that resources would be drained from the Palo Alto campus. And there were additional questions: Would Stanford be able to recruit top faculty and students to New York when the technological heart of the country was in Silicon Valley? Could Stanford really reproduce in New York its “secret sauce,” a phrase that university officials use almost mystically to describe whatever it is that makes the school succeed as an entrepreneurial incubator?

Exactly what that sauce is provokes much speculation, but an essential ingredient is the attitude on campus that business is a partner to be embraced, not kept at arm’s length. The Stanford benefactor and former board chairman Burton McMurtry says, “When I first came here, the faculty did not look down its nose at industry, like most faculties.” Stanford’s proposal to New York, almost as a refrain, repeatedly referred to the “close ties between the industry and the university.”

eople may remember Hennessy’s reign most for the expansion of Stanford into Silicon Valley. But his principal academic legacy may be the growth of Pwhat’s called “interdisciplinary education.” This is the philosophy now promoted at the various schools at Stanford—engineering, business, medicine, science, design—which encourages students from diverse majors to come together to solve real or abstract problems. The goal is to have them become what are called “T-shaped” students, who have depth in a particular field of study but also breadth across multiple disciplines. Stanford hopes that the students can also develop the social skills to collaborate with people outside their areas of expertise. “Ten years ago, ‘interdisciplinary’ was a code word for something soft,” Jeff Koseff says. “John changed that.”

Among the bolder initiatives to create T-students is the Institute of Design at Stanford, or the d.school, which was founded seven years ago and is housed in the school of engineering. Its founder and director is David Kelley, who, with a thick black mustache and black-framed eyeglasses, looks like Groucho Marx, without the cigar. His mission, he says, is to instill “empathy” in his students, to encourage them to see the human side of the challenges posed in class, and to provoke them to be creative. Stanford is not the only university to adopt this approach to learning— M.I.T., among others, does, too. But Kelley’s effort is widely believed to be the most audacious. His classes stress collaboration across disciplines and revolve around projects to advance social progress. The school concentrates on four areas: the developing world; sustainability; health and wellness; and K-12 education. The d.school space is open, with sliding doors and ubiquitous whiteboards and tables too small to accommodate laptops; Kelley doesn’t want students retreating into their in- boxes. There are very few lectures at the school, and students are graded, in part, on their collaborative skills and on evaluations by fellow-students.

Sarah Stein Greenberg, who is the managing director of the d.school, was a student and then a fellow. Her 2006 class project was to figure out an inexpensive way for

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farmers in Burma to extract water from the ground for irrigation. Greenberg and her team of students travelled to Burma, and devised a cheap and efficient treadle pump that looks like a Stairmaster, which the farmer steps on in order to extract water. A local nonprofit partner manufactured and sold twenty thousand pumps, costing thirty-seven dollars each. In his unpretentious, book-filled office, John Hennessy displays items that have been produced, at least in part, by Stanford students to assist developing countries, including a baby warmer for premature babies; the simple device’s cost is one per cent of an incubator’s.

In late January, a popular d.school class, Entrepreneurial Design for Extreme Affordability, taught by James M. Patell, a business-school professor, consisted of thirty-seven graduate and three undergraduate students from thirteen departments, including engineering, political science, business, medicine, biology, and education. It was early in the quarter, and Patell offered the students a choice of initial projects. One was to create a monitoring system to help the police locate lost children. Another was to design a bicycle-storage system.

David Janka, a teaching fellow, who walked about the class’s vast open space wearing tapered khakis and shoes without socks, invited the students to gather in groups around the white wooden tables to discuss how to address these challenges. Patell and Janka were joined by David Beach, a professor of mechanical engineering; Julian Gorodsky, a practicing therapist and the “team shrink” at the d.school; and Stuart Coulson, a retired venture capitalist who volunteers at the university up to fifty hours per week. “The kinds of project we put in front of our students don’t have right and wrong answers,” Greenberg says. “They have good, better, and really, really better.”

Justin Ferrell, who was attending Stanford on a one-year fellowship, on leave from his job as the digital-design director at the Washington Post, said that he was impressed by “the bias toward action” at the d.school. Newspapers have bureaucracy, committees, hierarchies, and few engineers, he said. At the Post, “diversity” was defined by ethnicity and race. At the d.school, diversity is defined by majors—by people who think different.

Multidisciplinary courses at Stanford worked for two earlier graduates, Kevin Systrom and Mike Krieger, the founders of Instagram. In 2005 and 2007, respectively, Systrom and Krieger were awarded Mayfield fellowships. (Only a dozen upperclassmen are chosen each year.) In an intense nine-month work-study program, fellows immerse themselves in the theoretical study of entrepreneurship, innovation, and leadership, and work during the summer in a Valley start-up. Tom Byers, an engineering professor, founded the program in 1996, and says that it aims to impart to fellows this message: “Anything is possible.” Byers has kept in touch with Systrom and Krieger and remembers them as “quiet and quite humble,” by which he means that they were outstanding human beings who could get others to follow them. They were, in short, T-students.

he most articulate critic of the way the university functions might be the man who used to run it. Gerhard Casper, who is a senior fellow at Stanford, is full T of praise for Hennessy, and the two men clearly like each other. Nonetheless, it wasn’t hard to find a few daggers in a speech that Casper gave in May, 2010, in Jerusalem. The United States has “two types of college education that are in conflict

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with each other,” he said. One is “the classic liberal-arts model—four years of relative tranquility in which students are free to roam through disciplines, great thoughts, and great works with endless options and not much of a rationale.” The second is more utilitarian: “A college degree is expected to lead to a job, or at least to admission to a graduate or professional school.” The best colleges divide the first two years into introductory courses and the last two into the study of a major, all the while trying to expose students to “a broad range of disciplines and modes of thought.” Students, he declared, are not broadly educated, not sufficiently challenged to “search to know.” Instead, universities ask them to serve “the public, to work directly on solutions in a multidisciplinary way.” The danger, he went on, is “that academic researchers will not only embrace particular solutions but will fight for them in the political arena.” A university should keep to “its most fundamental purpose,” which is “the disinterested pursuit of truth.” Casper said that he worried that universities would be diverted from basic research by the lure of new development monies from “the marketplace,” and that they would shift to “ever greater emphasis on direct usefulness,” which might mean “even less funding of and attention to the arts and humanities.”

When I visited Casper in his office on campus this winter, I asked him if his critique applied to Stanford. “I am a little concerned that Stanford, along with its peers, is now justifying its existence mostly in terms of what it can do for humanity and improve the world,” he answered. “I am concerned that a research-intense university will become too result-oriented,” a development that risks politicizing the university. And it also risks draining more resources from liberal arts at a time when “most undergraduates at most universities are there not because they really want to get a broad education but because they want to get the wherewithal for a good job.”

John Hennessy is familiar with Casper’s Jerusalem speech. “It applies to everyone —us, too,” he says. Getting into college is very competitive, tuition is very expensive, and, with economic uncertainty, students become preoccupied with majoring in subjects that may lead to jobs. “That’s why so many students are majoring in business,” Hennessy says, and why so few are humanities majors. He shares the concern that too many students are too preoccupied with getting rich. “It’s true broadly, not just here,” he says.

Miles Unterreiner, a senior, fretted in the Stanford Daily that students spent too much time networking and strategizing and becoming “slaves to the dictates of a hoped-for future,” and too little time being spontaneous. “Stanford students are superb consequentialists—that is, we tend to measure the goodness of actions by their eventual results,” he wrote. “Bentham and Mill would be proud. We excel at making rational calculations of expected returns to labor and investment, which is probably why so many of us will take the exhortation to occupy Wall Street quite literally after graduation. So before making any decision, we ask one, very simple question: What will I get out of it?”

“At most great universities, humanities feel like stepchildren,” Casper told me. Two members of the humanities faculty—David Kennedy and Tobias Wolff, a three-time winner of the O. Henry Award for his short stories—extoll Stanford’s English and history departments but worry that the university has acquired a reputation as a place for people more interested in careers or targeted education than in a lofty “search for truth.”

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Attempting to address this weakness, Stanford released, in January, a study of its undergraduate education. The report promoted the T-student model embraced by Hennessy. The original Stanford “object” of creating “usefulness in life,” though affirmed, was said to be insufficient. “We want our students not simply to succeed but to flourish; we want them to live not only usefully but also creatively, responsibly, and reflectively.” The report was harsh:

The long-term value of an education is to be found not merely in the accumulation of knowledge or skills but in the capacity to forge fresh connections between them, to integrate different elements from one’s education and experience and bring them to bear on new challenges and problems. . . . Yet we were struck by how little attention most departments and programs have given to cultivating this essential capacity. We were also surprised, and somewhat chagrined, to discover how infrequently some of our students exercise it. For all their extraordinary energy and range, many of the students we encountered lead curiously compartmentalized lives, with little integration between the different spheres of their experience.

ike any president of a large university, John Hennessy is subject to a relentless schedule of breakfasts, meetings, lunches, speeches, ceremonies, L handshakes, dinners, and late-night calls alerting him to an injury or a fatality on campus. His home becomes a public space for meetings and entertaining. He juggles various constituencies—faculty, administrators, students, alumni, trustees, athletics. The routine becomes a daily blur, compelling a president to want to break away and seek a larger vision, something that becomes his stamp, his legacy. For a while, it seemed that StanfordNYC might provide that legacy.

Hennessy declared that a New York campus was “a landmark decision.” He invested enormous time and effort to overcome faculty, alumni, trustee, and student unease about diverting campus resources for such a grandiose project. “I was originally a skeptic,” Otis Reid, a senior economics major, says. But Hennessy persuaded him, by arguing that Stanford’s future will be one of expansion, and Reid agreed that New York was a better place to go first than Abu Dhabi.

On December 16, 2011, Stanford announced that it was withdrawing its bid. Publicly, the university was vague about the decision, and, in a statement, Hennessy praised “the mayor’s bold vision.” But he was seething. In January, he told me that the city had changed the terms of the proposed deal. After seven universities had submitted their bids, he said, the city suddenly wanted Stanford to agree that the campus would be operational, with a full complement of faculty, sooner than Stanford thought was feasible. The city, according to Debra Zumwalt, Stanford’s general counsel and lead negotiator, added “many millions of dollars in penalties that were not in the original proposal, including penalizing Stanford for failure to obtain approvals on a certain schedule, even if the delays were the fault of the city and not Stanford. . . . I have been a lawyer for over thirty years, and I have never seen negotiations that were handled so poorly by a reputable party.” One demand

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that particularly infuriated Stanford was a fine of twenty million dollars if the City Council, not Stanford, delayed approval of the project. These demands came from city lawyers, not from the Mayor or from a deputy mayor, Robert Steel, who did not participate in the final round of negotiations with Stanford officials. However, city negotiators were undoubtedly aware that Mayor Bloomberg, in a speech at M.I.T., in November, had said of two of the applicants, “Stanford is desperate to do it. Cornell is desperate to do it. . . . We can go back and try to renegotiate with each” university. Out of the blue, Hennessy says, the city introduced the new demands.

To Hennessy, these demands illustrated a shocking difference between the cultures of Silicon Valley and of the city. “I’ve cut billion-dollar deals in the Valley with a handshake,” Hennessy says. “It was a very different approach”—and, he says, the city was acting “not exactly like a partner.”

Yet the decision seemed hasty. Why would Hennessy, who had made such an effort to persuade the university community to embrace StanfordNYC, not pause to call a business-friendly mayor to try to get the city to roll back what he saw as its new demands? Hennessy says that his sense of trust was fundamentally shaken. City officials say they were surprised by the sudden pullout, especially since Hennessy had an agreeable conversation with Deputy Mayor Steel earlier that same week.

Steel insists that “the goalposts were fixed.” All the stipulations that Stanford now complains about, he says, were part of the city’s original package. Actually, they weren’t. In the city’s proposal request, the due dates and penalties were left blank. Seth Pinsky, the president of the New York City Economic Development Corporation, who was one of the city’s lead negotiators, says that these were to be filled in by each bidder and then discussed in negotiations. “The more aggressive they were on the schedule and the more aggressive they were on the amount, the more favorably” the city looked at the bid, Pinsky told me. In the negotiations, he said, he tried to get each bidder to boost its offer by alerting it of more favorable competing bids. At one point, Stanford asked about an ambiguous clause in the city’s proposal request: would the university have to indemnify the city if it were sued for, say, polluted water on Roosevelt Island? The city responded that the university would. According to Pinsky, city lawyers said that this was “not likely to produce significant problems,” and that other bidders did not object. To Pinsky and the city, these demands—and the twenty-million-dollar penalty if the City Council’s approval was delayed—were “not uncommon,” since developers often “take liability for public approvals.” To Stanford, the stipulations made it seem as if the goal posts were not fixed.

Three days after Stanford withdrew, the city awarded the contract to Cornell University and its junior partner, the Technion-Israel Institute of Technology, the oldest university in Israel. Not a few Hennessy and Stanford partisans were pleased. “I am very relieved,” Gerhard Casper said.

Jeff Koseff, who played golf with Hennessy within a few days of Stanford’s withdrawal, recalls, “He was already talking about what we could do next.” One venture that Hennessy was exploring, though there is as yet no concrete plan, is working with the City College of New York to establish a Stanford beachhead in Manhattan. Deputy Mayor Steel says, “I’d be ecstatic.” Still, a Stanford official is dubious: “John’s disillusionment with the city is pretty thorough.”

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nother person who is pleased with the withdrawal is Marc Andreessen, whose wife teaches philanthropy at Stanford and whose father-in-law, John A Arrillaga, is one of the university’s foremost donors. Instead of erecting buildings, Andreessen says, Stanford should invest even more of its resources in distance learning: “We’re on the cusp of an opportunity to deliver a state-of-the-art, Stanford-calibre education to every single kid around the world. And the idea that we were going to build a physical campus to reach a tiny fraction of those kids was, to me, tragically undershooting our potential.”

Hennessy, like Andreessen, believes that online learning can be as revolutionary to education as digital downloads were to the music business. Distance learning threatens one day to disrupt higher education by reducing the cost of college and by offering the convenience of a stay-at-home, do-it-on-your-own-time education. “Part of our challenge is that right now we have more questions than we have answers,” Hennessy says, of online education. “We know this is going to be important and, in the long term, transformative to education. We don’t really understand how yet.”

This past fall, Stanford introduced three free online engineering lectures, each organized into short segments. A hundred and sixty thousand students in a hundred and ninety countries signed up for Sebastian Thrun’s online Introduction to Artificial Intelligence class. They listened to the same material that Stanford students did and were given pass/fail grades; at the end, they received certificates of completion, which had Thrun’s name on them but not Stanford’s. The interest “surprised us,” John Etchemendy, the provost, says, noting that Stanford was about to introduce several more classes, which would also be free. The “key question,” he says, is: “How can we increase efficiency without decreasing quality?”

Stanford faculty members, accustomed to the entrepreneurial culture, have already begun to clamor for a piece of the potential revenue whenever the university starts to charge for the classes. This quest offends faculty members like Debra Satz, the senior associate dean, who regards herself as a public servant. “Some of the faculty see themselves as private contractors, and, if you are, you expect to get paid extra,” she says. “But, if you’re a member of a community, then you have certain responsibilities.”

Sebastian Thrun quit his faculty position at Stanford; he now works full time at Udacity, a start-up he co-founded that offers online courses. Udacity joins a host of companies whose distance-learning investments might one day siphon students from Stanford—Apple, the News Corp’s Worldwide Learning, the Washington Post’s Kaplan University, the New York Times’ Knowledge Network, and the nonprofit Khan Academy, with its approximately three thousand free lectures and tutorials made available on YouTube and funded by donations from, among others, the Bill & Melinda Gates Foundation, Google, and Ann and John Doerr.

Since so much of an undergraduate education consists of living on campus and interacting with other students, for those who can afford it—or who benefit from the generous scholarships offered by such institutions as Stanford—it’s difficult to imagine that an online education is comparable. Nor can an online education duplicate the collaborative, multidisciplinary classes at Stanford’s d.school, or the personal contact with professors that graduate students have as they inch toward a

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Ph.D.

John Hennessy’s experience in Silicon Valley proves that digital disruption is normal, and even desirable. It is commonly believed that traditional companies and services get disrupted because they are inefficient and costly. The publishing industry has suffered in recent years, the argument goes, because reading on screens is more convenient. Why wait in line at a store when there’s Amazon? Why pay for a travel agent when there’s Expedia? The same argument can be applied to online education. An online syllabus could reach many more students, and reduce tuition charges and eliminate room and board. Students in an online university could take any course whenever they wanted, and wouldn’t have to waste time bicycling to class.

But online education might also disrupt everything that distinguishes Stanford. Could a student on a video prompter have coffee with a venture capitalist? Could one become a T-student through Web chat? Stanford has been aligned with Silicon Valley and its culture of disruption. Now Hennessy and Stanford have to seriously contemplate whether more efficiency is synonymous with a better education.

In mid-February, Hennessy embarked on a sabbatical that will take him away from campus through much of the spring. His plans included travelling and spending time with his family. The respite, Hennessy says, will provide an opportunity to think. Of all the things he plans to think hard about, he says, distance learning tops the list. Stanford, like newspapers and music companies and much of traditional media a little more than a decade ago, is sailing in seemingly placid waters. But Hennessy’s digital experience alerts him to danger. He says, “There’s a tsunami coming.” ♦

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