Entrepreneurial Universities and KnowledgeBased Economic Development

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Entrepreneurial Universities and Knowledge-Based
Economic Development

• Janet Bercovitz
• Duke University

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Entrepreneurial UniversitiesThe Black Box of
Technology-Transfer
RD Funding Faculty -- Quality, Disciplines
Organizational Factors University Policy,
Tech-Transfer Office Structure, Routines,
Culture, Cohort
Know-How Students, Publications Patents,
Licenses, Spin-off Cos.
Economic Development
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Creating Entrepreneurial Universities A Process
of Change at Three Levels
Environmental
Institutional
Individual
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Changing Environment for University-Industry
Relationships

• Universities Have Long Served as a Source of
  Scientific and Technical Knowledge
• Recent Environmental Changes. . .
• Emergence of New Technology Platforms
• Legislative Mandate -- Bayh-Dole Act of 1980
• Greater Knowledge-Based Competition
• . . .Have Catalyzed a Shift in Emphasis
• Dissemination of Knowledge Dissemination of
  Commercializable Knowledge

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University Technology-Transfer Process

• Inventor is a Faculty Member
• Eureka Moment!
• Faculty Files Invention Disclosure
• Federal requirement
• Low cost procedure, 0n-line forms
• Technology Transfer Office Evaluates
• Is it new? Useful? Non-obvious?
• If yes, then patent
• If Patent, then the Desired Outcomes
• Licenses
• Licensing revenues
• Start-up companies

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Trends in Academic Patenting(AUTM Recurrent
Respondents 1991-2001)
Source AUTM 2001 annual survey (69 recurrent
respondents)
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Trends in Academic Disclosure and Licensing(AUTM
Recurrent Respondents FY1991-2001)
Source AUTM 2001 annual survey (71 recurrent
respondents)
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Industry Sponsored Research
Millions of Current 1992 Dollars
Source NSF Science and Engineering Indicators
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Progress Is Not Uniform

• Overall, we see a significant increase in the
  level and formalization of knowledge transfer
  activities at the university-industry interface
• However
• There remains great variation in level of
  technology transfer activity across universities

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Variation in Tech-Transfer Activity
Source AUTM 2002 annual survey
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Change at the University Level

• Establishment of a Dedicated Technology-Transfer
  Office
• Experience, Size, and Structure Effects
• Adoption of Royalty-Sharing Incentives
• Academic research, inventive, and spin-off
  activity respond to monetary incentives.
• Willingness to Offer Equity-Based Licenses
• Influenced by TTO Budget Policy
• Supports Spin-Off Activity

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Equity Deals Per University
Source Research University TTO Survey
(Feldman, Feller, Bercovitz, and Burton, 2002)
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Influence of Benchmarking

• Tech Transfer Benchmarking is important
• Comparison are rampant
• Universities who lag their cohort made greater
  use of new technology transfer mechanisms

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University Technology-Transfer Process

• Inventor is a Faculty Member
• Eureka Moment!
• Faculty Files Invention Disclosure
• Federal requirement
• Low cost procedure, 0n-line forms
• Technology Transfer Office Evaluates
• Is it new? Useful? Non-obvious?
• If yes, then patent
• If Patent, then the Desired Outcomes
• Licenses
• Licensing revenues
• Start-up companies
• We care about outcomes, but they are predicated
  on faculty disclosing inventions

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Change at the Individual LevelGetting Faculty
Invention Disclosures

• Seemingly Straightforward
• Its the law
• Articulated university goal
• Just about anything can be disclosed
• But, In Practice, Has Proven Difficult
• Only a subset of research with commercial
  potential disclosed
• Perceived Barriers
• Basic research is not amenable (wrong)
• Risk of publication delays (wrong)
• Just not appropriate older norms of science
• Invention Disclosure as a Measure of
  Entrepreneurial Behavior

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At Issue

• What factors influence an individual faculty
  members disclosure decision?
• Technical Opportunity?
• Financial Resources and Incentives?
• Social Imprinting and Social Learning?

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Disclosures are Differentially Concentrated
within Medical School Department
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Within Department Variation in Disclosure
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Imprinting Entrepreneurial Activity

• Social Imprinting.
• An Individual is Shaped by the Norms and Values
  Prevalent
• In Key Social Institutions
• During Formative Stages of Development

Training Institution Active in Tech-Transfer
()
Likelihood of Disclosure
Completed Training Recently
()
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Social Learning Entrepreneurial Activity

• Individuals Learn How to Behave in Organizations
  by Observing the Behavior of Referent Others
• Leaders
• Build/Define Culture
• Act as Role-Model
• Peers
• Information Source
• Influence Decisions

Leader is Active in Tech-Transfer
()
Likelihood of Disclosure
Peers are Active In Tech-Transfer
()
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Data

• Observation Individual Faculty Member
• Duke University and Johns Hopkins University
• Same financial incentives at time under
  consideration
• Fifteen Matched Medical School Departments
• Basic, Nexus, and Clinical Departments
• Research is expected from all faculty members
• 1779 Individuals
• Administrative Records
• Technology Transfer Office Database

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Findings

• The Decision to Participate in Technology
  Transfer is Influenced by
• Imprinting Where and When an Individual
  Trained.
• Social Learning What their Chairman Does What
  Others Like Them Do.
• Individual Inventive Capacity is Also Key
• Dual Degree
• Boundary-Spanning
• Non-US Degree
• Selection and Socialization

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The Broader Message

• Multi-Level Change is Necessary in the
  Development of Entrepreneurial Universities
• Environmental, Organizational, Individual
• Creating Entrepreneurial Organizations and/or
  Promoting Organizational Change Requires
  Understanding and Management of both Individual
  Motivations and Departmental Composition

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Entrepreneurial Universities and Knowledge-Based
Economic Development

• Universities are necessary -- not sufficient for
  knowledge-based economic development
• Places of Invention ? Places of Innovation
• Spin-offs are a local phenomena
• Regions have differential capacity to absorb
  university outputs
• Ability to retain university graduates
• Ability to grow companies
• Availability of VC/Angel Funding
• Availability of Experienced Management