In today’s “knowledge-based” society, it is becoming increasingly imperative for companies to “mine” the new knowledge and technology generated by universities. Why? Because the knowledge and technology transfer that result from industry-university collaborations can be used by companies to accelerate innovation and deliver business impact.
There are various ways that companies can tap into the new knowledge and technology generated by universities – from hiring graduates to commissioning contract research. But, only a small fraction of universities in Europe and the US participate in collaborative research with companies. According to a 2009 AUTM report (www.autm.org), in the most active cases, the amount funded by the private sector represents only about 6% of the total research budget of those universities. Most research funding comes from the public sector, with a very small number of universities capturing the bulk of private sector funding. When it comes to patent-based licensing and/or selling intellectual property (IP), most universities do not generate enough income to cover the expenses of their technology licensing office. A noted exception is Northwestern University, which received more than $480 million in licensing income and royalties in 2008. Additionally, universities typically don’t have the business acumen to embark on the complex process of spinning out companies. Therefore, they tend to engage external partners to help them commercialize their research outcomes. The pharmaceuticals and biotech sectors are prime examples of companies that engage in such science-to-cash processes.[This article has been reproduced with permission from IMD, a leading business school based in Switzerland. http://www.imd.org]