- Biotech in North Carolina Gets $64.5M Boost
- TBED's Role in the Commercialization of Academia
- Capitalizing on the Academic Research Enterprise
- Arizona Study Examines Impact of Public Investments in University S&T
- Commerce Accepting Nominations for 2004 National Medal of Technology
- Useful Stats: 2001 Academic R&D Expenditures from Industry Sources
- Research Park News
Copyright State Science & Technology Institute 2003. Information in this issue of the SSTI Weekly Digest was prepared under a cooperative agreement with the U.S. Department of Commerce, Economic Development Administration. Redistribution to all others interested in tech-based economic development is strongly encouraged — please cite the State Science & Technology Institute whenever portions are reproduced or redirected. Any opinions expressed in the Digest do not necessarily reflect the official position of the U.S. Department of Commerce.
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Biotech in North Carolina Gets $64.5M Boost
More workers in North Carolina will be trained for jobs in biotechnology, thanks to the Golden LEAF Foundation's recent $60 million commitment to the emerging industry. In all, $64.5 million is going toward a training initiative, with North Carolina's biotech industry expected to contribute $4.5 million.Golden LEAF (Long-term Economic Advancement Foundation), created in 1999 as a nonprofit corporation, receives one-half of the funds coming to North Carolina from its settlement with tobacco companies. The Foundation's mission is to help the state transition out of a tobacco-based economy while creating new jobs in tobacco-dependent areas.
As part of the biotech initiative, North Carolina State University in Raleigh will receive $36 million to build and equip a center to train workers. North Carolina Central University in Durham will receive $19.1 million to establish graduate and undergraduate degree programs in biotechnology. The remaining $9.4 million will go to the State Community College System to implement training programs in local communities, serving as a feeder system to NC State and North Carolina Central.
"It will allow biomanufacturing, pharmaceutical and other biotech-related companies to locate or expand in any area of North Carolina and know they will have immediate access to skilled workers with training in state-of-the-art technologies and manufacturing processes," Sam Taylor, Executive Vice President of the North Carolina BioSciences Organization, said of the initiative.
More information on Golden LEAF is available at: http://www.goldenleaf.org/
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TBED’s Role in the Commercialization of Academia
Perhaps most state and local technology-based economic development (TBED) professionals are not aware of a debate going on within academia, but some of the finger-pointing is directed toward you.America’s institutions of higher education are undergoing a tremendous transition as the image of an independent and objective Ivory Tower morphs into a structure more closely resembling the modern corporate research facility.
The debate centers on whether or not this change is a positive one. Proponents applaud universities and colleges becoming more relevant in strengthening America’s competitive position in a global innovation economy — and more efficient or accountable in the process. Opponents point to increasing conflicts of interest, profit-driven decision-making, and corporate influence in curricula content and design as weakening academia’s ability to encourage critical thinking, new ideas, spontaneous innovation and free scientific discovery.
The shift toward more business involvement in universities and colleges began more than 100 years ago with athletics but has accelerated and spread, according to Derek Bok in Universities in the Marketplace: the Commercialization of Higher Education, since federal and state government policies first adopted in the 1980s encouraged stronger industry-university research partnerships and commercialization of university-generated technologies.
A former president of Harvard University and dean of the Harvard Law School, Bok points directly to the success of three actions by federal and state governments over the past two decades as among the principal causes for the debate:
- Passing the Bayh-Dole Act, which facilitated university ownership and licensing of inventions derived from federally funded research, state and federal programs;
- Creating state and federal programs, beginning in the 1980s, that encourage and subsidize university-industry collaboration; and,
- Enacting state tax credits to spur increased industrial investment in university-based research.
Bok writes, “Public officials intent on economic growth are undoubtedly pleased with the vigor universities have shown in placing their discoveries and expertise at the service of private industry. By all accounts, corporate investments in academic science have yielded a handsome return in new products and improved technology.”
Increased business involvement with universities has brought tremendous results. Bok warns, however, there are limits to how far a business approach can extend within the university structure. Given states’ declining shares of support for higher education, the need to identify alternate funding sources may cause some schools to consider business alliances that could compromise their missions. The challenge lies in achieving an appropriate balance, Bok asserts.
The corporate impact on collegiate athletics is widely recognized and most often viewed negatively, Bok holds, while commercial influence on scientific research is still evolving and holds the same negative potential. He points to three areas of growing concern:
- Increased secrecy, withholding or delaying research results to capitalize on patenting or licensing opportunities or avoid negative implications for existing commercial interests of the university or faculty researcher;
- Conflicts of interest, whether real or perceived, arising from researchers’ financial or professional relationships or affiliations potentially influencing the results of funded research and clinical trials; and,
- Corporate sponsors exerting or attempting to exert control over the design of research projects, the interpretation of the results, and editorial control of content in the publication of findings.
While not elucidated further in the book, scientific research is the area most affected by the efforts of state and local tech-based economic development officials. Numerous states have developed programs to encourage, facilitate and, in many cases, financially support closer relationships between industry and academia. So, too, have several federal agencies, such as the Department of Defense, the National Institutes of Health and the National Science Foundation, invested millions of dollars to strengthen corporate-university collaboration.
A concern for tech-based economic development professionals could be how well any of these public programs have adopted policies and procedures to avoid compromising the pursuit of science and discovery in the manners outlined by Bok.
The issue may not have arisen yet within most programs promoting government-university-industry partnerships. Bok writes, “Most universities have not done all they should to protect the integrity of their research. Many have not even shown that they are seriously concerned about doing so. As in athletics, officials have been willing to cut corners and wink at potential problems in an effort to gain additional resources. Unlike athletics, however, commercialization of research is still relatively new, and universities are not yet bound irrevocably to indefensible policies. Only time will tell if they manage to do a better job of maintaining appropriate standards for science than they have done in upholding academic value on their playing fields.”
After discussing the ways commercial interests have influenced athletics, scientific research and education, Bok presents strategies for protecting each aspect of higher education while maximizing the benefits of business involvement. To protect research, he recommends the following:
- To address conflicts of interest, “universities should flatly prohibit their scientists from performing research on human subjects if the work is supported by companies in which the researchers have significant financial interest, whether from consulting arrangements, gifts, retainers, or stockholdings.”
For research not involving human subjects, universities should “insist that professors with substantial and continuing ties to any organization with an interest in the results disclose the nature of those ties or funding sources in any publications or official testimony containing their views.” Also the university, faculty or staff should disclose financial interests to potential funders to limit conflicts from arising.
- Avoid allowing funding from a single company or group of companies from representing too significant share of a department’s research budget or which comes with too many controlling strings (such as seats on committees allocating funding). And,
- Develop stronger relationships with angel and venture capitalists in lieu of creating university-owned entities to encourage the the commercialization of faculty research.
Bok closes with some discussion of the need for active involvement of trustees, presidents and deans, faculties, universities collectively and the public sector to work together to capture the benefits of stronger industrial research collaboration without sacrificing the larger goals inherent to higher education.
Universities in the Marketplace: The Commercialization of Higher Education and other related titles can be purchased directly from SSTI’s bookstore: http://www.ssti.org/Publications/universities.htm
Academic Research and Development Expenditures: Fiscal Year 2001 is available at: http://www.nsf.gov/pubsys/ods/getpub.cfm?nsf03316
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Sneak Peek at SSTI's Annual Conference
Capitalizing on the Academic Research Enterprise
Balancing the role of universities and colleges in economic development can be tricky, as Dr. Bok points out in his new book (see article above), but its important role in building stronger tech-based economies cannot be overstated. SSTI’s 7th annual conference, to be held in Seattle on October 21-22, presents the best opportunity of the year for developing a great understanding of the most effective ways for local and state economies to benefit from the academic research enterprise. Five interactive sessions have been scheduled to help participants capitalize on this enterprise:
- Universities as Partners in Local TBED. Across the country in widely varying regions, universities of all kinds are playing an active role in building tech-based economies. In this session, we'll explore the results of new research that looks at factors for engaging a university as an active participant and making a difference for the local economy. We'll also consider in-depth one of the best known examples: San Diego and the University of California-San Diego's CONNECT program.
- Financing University Technology Commercialization. Nearly every university wants to commercialize more of its technologies. Most tech-based economic developers wouldn't mind seeing them succeed. Whatever approach is taken, a good pool of capital – whether public, private, institutional or angel – is a critical ingredient for success. But cash isn't as plentiful as it was a couple of years ago, so we'll spend this session exploring ways universities have been successful financing commercialization of lab-generated technology during the down economy.
- Industry Perspectives on Working with Universities: What You Need to Know. Trying to foster relationships between universities and businesses? Industry representatives who have successfully worked with universities will share frank insights about these relationships, how they succeeded, and what professionals like you need to know to encourage productive industry-university partnerships.
- University Research Parks: A View from the Field. Establishing university research parks is one of the hottest trends in tech-based economic development. It seems a new park is being announced every week. But is a research park the right thing for every area? How can you tell if one may be right for your community or organization? What are the critical factors for success? These are some of the questions that we'll explore with a distinguished practitioner and observer of the field. And,
- Encouraging the Entrepreneurial Spirit Among Faculty. Transferring technology from the laboratory to the marketplace is a critical step in building a tech-based economy. When that lab is at a university, encouraging faculty members to take the steps required to commercialize the technology – whether it's starting with invention disclosure or ending with company spinoff – can be a significant challenge. In this session, we'll learn about the surprising results of new research on what encourages the entrepreneurial spirit among faculty and the successful experiences of one faculty member.
Whether it is increasing research activity within the institution or commercializing the results of university research, SSTI’s conference provides the best forum for academic researchers, administrators and local tech-based economic developers to engage in active dialogue for maximizing economic impact. More information on each of the above sessions and others, as well as registration materials, is available at: http://www.ssti.org/conference03.htm [expired]
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Arizona Study Examines Impact of Public Investments in University S&T
New university-based research efforts in biodesign, nanotechnology, embedded systems and virtual manufacturing show that Arizona has stepped forward to compete in the knowledge economy, according to a recent study by Morrison Institute for Public Policy, a unit of Arizona State University.The Institute's 44-page report, Seeds of Prosperity: Public Investment in Science and Technology, uses the research projects that ASU initiated with voter-approved Proposition 301, proceeds from a sales tax, as a lens for understanding the value of science and technology (S&T) research to Arizona's economy. It also introduces "CAT measures" designed to assess the lasting economic value of such research for the state and region. The CAT measures are intended to help assess whether connections were made among ASU researchers and external groups, attention was attracted to ASU's research, and talent was recruited, retained or developed.
The researchers argue, "The CAT measures provide Arizona with a truly original way to evaluate the long-term economic development contribution of public investment in university research." They suggest a variety of indicators to be used for the CAT measures, including:
- Connections
- University researchers on boards of companies
- Private sector participation in university lab work and events
- Joint presentations by university and private sector
- Attention
- University exposure in national, state, and local media
- Hits on university research web sites
- Industry recruitment of science and technology students
- Talent
- Successful hiring and retention of top research faculty
- Science and technology grad students attracted and retained
- Private sector individuals trained
ASU's projects have nearly doubled the state's investment by attracting $14 million in outside grants, according to the report. To determine whether this investment will be a long-term economic development success, Morrison Institute analysts recommend that such research initiatives be regularly and systematically assessed not only on the products they develop and the external funding they generate, but also on the CAT measures.
Seeds of Prosperity is available for download at: http://www.asu.edu/copp/morrison/seedsofprosperity.htm
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Commerce Accepting Nominations for 2004 National Medal of Technology
The Department of Commerce is accepting nominations for the 2004 National Medal of Technology awards, the nation’s highest honor awarded by the President to America's leading technological innovators.The Medal was first awarded in 1985 following its creation in 1980 by Congress. It is given annually to individuals, teams, or companies for accomplishments in the innovation, development, commercialization, and management of technology, as evidenced by the establishment of new or significantly improved products, processes or services.
Past awards have been made in five main areas: technology product and process; technology management and policy; technology concepts; technology and human resource development; and environmental technology.
The deadline for submitting 2004 nominations is October 30, 2003, and nominations should be submitted by e-mail. Nomination forms and guidelines may be downloaded from the National Medal of Technology website at http://www.ta.doc.gov/medal.
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Useful Stats: 2001 Academic R&D Expenditures from Industry Sources
Alaska, with 25.7 percent of its academic R&D expenditures coming from industrial sources, ranks first in the U.S. in the amount of industry-funded R&D at its academic institutions, according to new data released by the National Science Foundation (NSF). An NSF report, Survey of Research and Development Expenditures at Universities and Colleges, FY 2001, shows $28.4 million of Alaska's $110.2 million in academic R&D expenditures in 2001 were industry-supplied.The U.S. as a whole saw more than $32.2 billion go toward R&D activities in its research institutions, with almost $2.2 billion coming from industry, according to the report. Nineteen states ranked above the U.S. average of 6.82 percent.
North Carolina finished runner-up to Alaska at 15 percent while Massachusetts, Georgia and Pennsylvania rounded out the top five, percentage-wise.
SSTI has prepared a state-by-state table that depicts the share of total academic R&D expenditures stemming from industry sources. The table is available at: http://www.ssti.org/Digest/Tables/082203t.htm
Survey of Research and Development Expenditures at Universities and Colleges FY 2001 can be downloaded at: http://www.nsf.gov/pubsys/ods/getpub.cfm?nsf03316
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Boston
The Mystic Valley Development Commission (MVDC) recently secured a $5.5 million loan from Citizens Bank of Massachusetts to finance the final land acquisitions for the first phase of TeleCom City, a 200-acre technology development project along the banks of the Malden River in the cities of Medford, Malden and Everett. MVDC was created by an act of the state legislature in 1996. With the loan from Citizens, the Commission will purchase the project's remaining three parcels of land, which total about eight acres in Medford. The project also has received more than $25 million in state support and $13 million in federal funding. Phase One, the construction of four 110,000-square-foot buildings on about 29 acres in Medford, is scheduled to begin in 2004.Jefferson Parish, LA
Two sites in Jefferson Parish are among the frontrunners being considered by local economic development officials for a technology park, the Times-Picayune recently reported. Both sites could enable a campus of at least 25 acres to be built in the Avondale-Waggaman-Bridge City area and a less congested section of the parish, the newspaper states. A real estate consultant conducted a $95,000 survey that was funded by private donations in evaluating 19 potential sites for the park. The next step is to assess local demand. The park is expected to stimulate "good-quality, high-end" jobs and workforce development programs in area schools.Piedmont Triangle, N.C.
A research park planned for North Carolina's Union Cross area is expected to bring jobs to the region's biotechnology and medical research industries, according to the Greensboro News & Record. The Alliance Science and Technology Park, named after the Winston-Salem Alliance Inc. economic development group that is spearheading its creation, will benefit the Winston-Salem, High Point, Greensboro and Asheboro communities once construction of a nearby bypass is complete. The nonprofit Alliance has agreed to purchase 190 acres for a variety of possible uses for the park, including testing and research labs, academic medical centers, warehousing and medical and dental labs or offices. As many as 600 additional acres could provide room for expansion of the park, the News & Record reported.return to the top of this page
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