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University technology transfer offices

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the patents and licenses a university issues, there may be a limited number of inventions that actually yield enough revenue to cover or surpass these costs. Research has shown that larger, more established TTOs are sufficiently profitable, whereas many smaller, more recent TTOs are not, and that an estimated half of TTOs retain losses in their commercialization activities (of those that do not have losses, a majority do no better than to cover their costs). Even the most profitable TTOs only produce revenue that amounts to 1-3% of the total research expenditures at the university. Moreover, less than 1% of licensed technologies actually yield over $ 1M in revenue. Another criticism of TTOs is its role in the research atmosphere of the university, with many scholars arguing that its presence and purpose of engaging in commercialization activities conflicts with a university's mission of furthering knowledge and objective academic inquiry.
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partner or back to the university inventor if the inventor started a company (i.e. a university spin-off). Through this approach, TTOs can bring university technologies to market without having to engage in production and distribution themselves. TTOs can also take an equity stake in the spin-off company rather than licensing the technology. Some research has suggested that equity in spin-off companies may provide higher returns than licensing, but this strategy seems to be more common with TTOs that are financially independent from the parent university (i.e. external TTO structure). While these strategies vary greatly among TTOs at different universities, a majority of them employ some combination of licensing and equity stakes, with licensing being a more standard practice.
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Countries such as France and the UK, which already had policies in place that grant intellectual property rights to universities during this period, began heavily encouraging and enforcing these institutional ownership rights. As of 2011, most European countries grant universities the rights to the intellectual property of inventions developed by faculty researchers, yet a few countries such as Italy and Sweden still employ professor's privilege. Hence, there has been a marked increase in the commercialization activities of universities and creation of TTOs in Europe.
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and other aspects of the commercialization of research that takes place in a university. TTOs engage in a variety of commercial activities that are meant to facilitate the process of bringing research developments to market, often acting as a channel between academia and industry. Most major research
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nations have created legislation that emulates Bayh-Dole, in an attempt to increase the commercialization activities and impact of their respective research universities. Denmark was among the first to abolish professor's privilege, followed by Germany, Austria, Norway and Finland between 2000-2007.
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An important task of many TTOs is to create and maintain industry partnerships that may be crucial for collaboration and bringing technologies to market. Some universities such as MIT and Northwestern have separate offices for industry and corporate relations which typically work in conjunction with
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at high levels, arguing that while the US no longer had a geographic frontier, extending the boundaries of science would allow the creation of new technologies, which in turn would spur new industries, create jobs, generate wealth, and maintain US power. As the US worked out its approach to funding
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Although universities created TTOs with hopes of financial gain, many TTOs have retained losses in their commercialization activities and have not generated significant local economic development. It has been argued that protecting intellectual property and patenting is a costly process, and of all
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TTOs attempt to capitalize on the research developments made at the university by employing strategies focused on providing the university with opportunities for financial gain and increased research impact. A common strategy that TTOs engage in is licensing their inventions, either to an industry
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Several Asian countries such as Japan, China, and India have also shifted towards a Bayh-Dole type legislation, although some countries such as Malaysia have a shared ownership model. Moreover, there has been a general shift towards increased commercialization and the establishment of TTOs across
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the TTO of the institution. In this case, TTOs often exploit the relationships developed by the corporate relations office, focusing more specifically on the technology transfer process itself. TTOs often employ two methods when engaging with industry partners: 1) the "pull" method, in which TTOs
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The structure and organization of TTOs can affect its overall performance and can vary among universities. Since TTOs deal with both academic research and industry, they consist of a diverse set of individuals, including scientists, lawyers, analysts, licensing experts, and business managers. By
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of 1980 led many US universities to set up tech transfer offices. The Act was created to try to spur the stagnant US economy of the 1970s, harking back to Vannevar Bush's vision of the role of federal research funding in the US economy. The Act decentralized ownership of inventions funded with
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While the broad goal of TTOs is to commercialize university research, they engage in numerous activities that not only bring these developments to market but also encourage and support faculty and students in the entire technology transfer process. Such encouragement may increase the chances of
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Federal research funding drove the growth of the research university. Many universities in the early 20th century did not engage in patenting and licensing, since the government owned most inventions, and out of fear of interfering with their missions of supporting the growth of knowledge and
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having individuals (particularly different scientists, engineers, and analysts) with varying sets of expertise in research, TTOs attempt to more effectively assess, protect, and profit from the research developments taking place in multiple disciplines throughout the university.
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As many major research universities across the US began to adopt TTOs, institutions outside the US became attracted to the idea of taking control of their commercialization activities as well. Prior to the 2000s, many German-speaking and Scandinavian countries had a
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federal grants, allowing universities that received federal grant funding to maintain ownership of such inventions, obligating them to try to patent and license the inventions to US companies, and requiring universities to share license income with inventors.
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universities have established TTOs in the past decades in an effort to increase the impact of university research and provide opportunities for financial gain. While TTOs are commonplace, many studies have questioned their financial benefit to the university.
193:. Research has suggested that incubators at TTOs have not had a high incidence of technology transfer, despite this being one of the reasons they were established, and may even negatively impact the success of TTOs and technology transfer at the university. 147:
protection, when appropriate, for inventions to which they elect title; after passage of the Bayh-Dole Act many US universities created intellectual property policies that obligated faculty to assign inventions to the university. Universities typically
101:, had active licensing programs of their own. There was a shift in universities' approaches to technology transfer between 1970-1980. During this period, universities began taking commercialization efforts into their own hands and setting up TTOs. 152:
the patent to a company that will invest money in developing the invention into a product, which it will then be able to sell at a premium, recouping its investment and making profit before the patent expires.
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Mowery, David C; Nelson, Richard R; Sampat, Bhaven N; Ziedonis, Arvids A (2001-01-01). "The growth of patenting and licensing by U.S. universities: an assessment of the effects of the Bayh–Dole act of 1980".
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the existing organizational forms of each TTO are maintained and the single organizations operate together in a virtual manner creating a subset of links between the existing TTOs involved in the consortium
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a new central TTO with the functions of a hub is created, but each university involved in the consortium maintains internally some technology transfer activities in a dedicated internal office.
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and programs for faculty and students in an attempt to enhance the entrepreneurial atmosphere among researchers at the university. Some examples of such incubators and programs include the
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TTOs at many universities often provide general business and legal counseling to foster entrepreneurship among faculty and students. By providing resources, funding, and connections to
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O'Shea, Rory P.; Allen, Thomas J.; Chevalier, Arnaud; Roche, Frank (2005-09-01). "Entrepreneurial orientation, technology transfer and spinoff performance of U.S. universities".
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success, which may result in financial gain if the university owns the intellectual property of the invention or has an equity stake in the company. Hence, many TTOs establish
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Battaglia, D.; Landoni, P.; Rizzitelli, F. (2017). "Organizational structures for external growth of university technology transfer offices: an explorative analysis".
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Feldman, Maryann; Desrochers, Pierre (2003-03-01). "Research Universities and Local Economic Development: Lessons from the History of the Johns Hopkins University".
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Macho-Stadler, Inés; Pérez-Castrillo, David; Veugelers, Reinhilde (2007-06-01). "Licensing of university inventions: The role of a technology transfer office".
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Mowery, David C.; Sampat, Bhaven N. (2004-12-01). "The Bayh-Dole Act of 1980 and University–Industry Technology Transfer: A Model for Other OECD Governments?".
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Brescia, F.; Colombo, G.; Landoni, P. (2016). "Organizational structures of Knowledge Transfer Offices: an analysis of the world's top-ranked universities".
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of "professor's privilege", in which faculty retain the right to control the intellectual property of their inventions. In addition, in recent years many
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science in the 1950s, Congress decided that the federal government should maintain ownership of patents on inventions funded by the federal government.
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interest from industry partners in bringing specific technologies at the university to market, and 2) the "push" method, in which TTOs actively
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TTOs of different universities can also collaborate between them to grow, thus originating new organizational structures. Such structures are:
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Mok, Ka Ho (2013). "The quest for an entrepreneurial university in East Asia: impact on academics and administrators in higher education".
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objective inquiry. Prior to the postwar period, universities relied mostly on external patent management organizations such as the
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Etzkowitz, Henry (1998-12-01). "The norms of entrepreneurial science: cognitive effects of the new university–industry linkages".
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Bray, Michael J; Lee, James N (2000-09-01). "University revenues from technology transfer: Licensing fees vs. equity positions".
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Sampat, Bhaven N. (2006-07-01). "Patenting and US academic research in the 20th century: The world before and after Bayh-Dole".
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faculty and students creating research developments that can be commercialized. Some of the major functions of TTOs include:
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have argued that the Bayh-Dole Act spurred university tech transfer offices to become too aggressive in patenting, creating
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Phillips, Rhonda G. (2002-08-01). "Technology business incubators: how effective as technology transfer mechanisms?".
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Rothaermel, F. T.; Agung, S. D.; Jiang, L. (2007-08-01). "University entrepreneurship: a taxonomy of the literature".
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Lockett, Andy; Wright, Mike; Franklin, Stephen (2003). "Technology Transfer and Universities' Spin-Out Strategies".
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Trune, Dennis R; Goslin, Lewis N (1998-03-01). "University Technology Transfer Programs: A Profit/Loss Analysis".
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existing as an independent company that does not operate under the control of university administration
17: 761:. The Creation of Spin-off Firms at Public Research Institutions: Managerial and Policy Implcations. 602: 411: 90: 560: 311: 162: 94: 44: 1134:"Asian Initiatives on Bayh-Dole, with Special Reference to India: How Do We Make It More "Asian?"" 1175: 967: 878: 623: 527: 427: 182: 170: 105: 1355: 1324: 1316: 1297: 1278: 1254: 1236: 1114: 838: 615: 519: 365: 73: 719: 1287: 1244: 1205: 1167: 1104: 1040: 997: 959: 932: 905: 870: 830: 796: 766: 734: 681: 607: 565: 511: 481: 419: 357: 212:
existing as an integrated part of the university and controlled by university administration
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a new central TTO is created and it works for each university involved in the consortium
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The Chicago Handbook of University Technology Transfer and Academic Entrepreneurship
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The history of technology transfer is intimately linked with the history of the
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Ehlers, Vernon (16 January 1998). "The Future of U.S. Science Policy".
149: 1274:"Can Patents Deter Innovation? The Anticommons in Biomedical Research" 834: 144: 80:. In that letter, Bush advocated that the US should continue to fund 60:. The foundation for modern American science policy laid way out in 274: 816:"The Effects of Academic Incubators on University Innovation" 718:
Siegel, Donald S; Waldman, David; Link, Albert (2003-01-01).
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research projects as part of the war effort, including the
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As of 2012 the "internal" type was most common in the US.
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Property rights dynamics a law and economics perspective
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Farnstrand Damsgaard, E.; Thursby, M. C. (2013-02-01).
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Kolympiris, Christos; Klein, Peter G. (2017-06-01).
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having components of both internal and external TTOs
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(May 1998). 1248: 1223:Fleischut, Peter M.; Haas, Scott (2005). 1108: 701:"Interface: The Push and Pull of Patents" 601: 559: 1315:Mahoney, Julia D; Clark, Pamela (2007). 583: 581: 579: 335: 1153: 1151: 1056: 1054: 983: 981: 782: 780: 157:Counseling and incubation for startups 18:University Technology Transfer Offices 1191: 1189: 1083: 1081: 1019: 1017: 1015: 1013: 1011: 856: 854: 852: 752: 750: 748: 497: 495: 7: 650:Shapin, Steven (11 September 2003). 645: 643: 641: 639: 637: 467: 465: 463: 461: 459: 343: 341: 339: 135:industry partners for this purpose. 58:science policy of the United States 1323:. London: Routledge. p. 141. 863:The Journal of Technology Transfer 823:Strategic Entrepreneurship Journal 590:The Journal of Technology Transfer 25: 175:Blavatnik Biomedical Accelerator 1097:Industrial and Corporate Change 350:Industrial and Corporate Change 937:10.1016/j.ijindorg.2006.06.001 910:10.1016/j.techfore.2017.06.017 452:. National Science Foundation. 450:"Science the Endless Frontier" 78:Science - the Endless Frontier 68:, which had coordinated large 1: 1210:10.1016/S0040-1625(97)00165-0 1160:Asia Pacific Education Review 1002:10.1016/S0883-9026(98)00034-2 990:Journal of Business Venturing 801:10.1016/S0160-791X(02)00010-6 739:10.1016/S0048-7333(01)00196-2 686:10.1016/S0048-7333(98)00093-6 570:10.1016/S0048-7333(99)00100-6 424:10.1126/science.279.5349.302a 163:university spin-off companies 1293:10.1126/science.280.5364.698 1045:10.1016/j.respol.2011.05.008 771:10.1016/j.respol.2005.05.011 486:10.1016/j.respol.2006.04.009 448:Bush, Vannevar (July 1945). 324:Intellectual property policy 37:technology licensing offices 516:10.1080/1366271032000068078 310:especially in the field of 29:technology transfer offices 1382: 308:tragedy of the anticommons 197:Structure and organization 70:private-public partnership 1172:10.1007/s12564-013-9249-x 875:10.1007/s10961-014-9384-5 612:10.1007/s10961-004-4361-z 1229:Biotechnology Healthcare 952:Small Business Economics 825:(Submitted manuscript). 43:), are responsible for 964:10.1023/a:1022220216972 504:Industry and Innovation 99:University of Wisconsin 1132:Stephen, Tina (2010). 298:Rebecca Eisenberg and 189:, affiliated with the 1066:www.oecd-ilibrary.org 789:Technology in Society 242:Strong Hub structure: 191:University of Chicago 139:Intellectual property 122:Industry partnerships 76:. 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Index

University Technology Transfer Offices
technology transfer
science policy of the United States
Vannevar Bush
Office of Scientific Research and Development
private-public partnership
Manhattan Project
basic research
Research Corporation
Stanford University
University of Wisconsin
Bayh–Dole Act
patent
license
university spin-off companies
startup
business incubators
Blavatnik Biomedical Accelerator
Physical Sciences and Engineering Accelerator
Harvard University
Fab Lab MSI
University of Chicago
policy
OECD
EU
Michael Heller
patent thickets
tragedy of the anticommons
biomedical research
Intellectual property policy

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