Defending the University Tech Transfer System

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To suggest a connection between technology transfer performance and the rate of FDA approvals indicates a lack of understanding of the complex dynamics at play and the role of university technology transfer offices.

Competition Among Licensing Offices

Kauffman leadership also states in The Wall Street Journal editorial that "Currently, a university professor with an idea may commercialize it only by using his university's technology licensing office … this is an inefficient, monopolistic arrangement … university inventors should be able to use the licensing office of any other university or licensing agents not affiliated with universities." And in the Harvard Business Review article, they advocate a "free agent" system in which any faculty inventor could approach other licensing offices rather than using his or her own university office.

Such a system would create serious conflict of interest and personal benefit issues as well as potentially generate unrelated business income for the agent. Most importantly, historical analysis shows that both inventor ownership and "free agency" have not been successful. Finally, because a university's mission is to serve its faculty, it would be inappropriate for the university to handle technology from outside inventors. Other than a few faculty members who report issues with their respective institutions, there is no evidence that university technology transfer offices are doing a poor job.

Universities have strong incentives to license inventions. Licensing is a means to advance local economic development, benefit society, and meet federal regulations. The true rate-limiting factors in entrepreneurship and commercialization are threefold: 1) the significant gap between the nature of research funded by the federal government and the product development needed to obtain private investment; 2) the challenge of finding early-stage venture funding and experienced startup company management; and 3) competing priorities and intensive time commitments of faculty related to writing competitive grants, securing tenure, publishing, and teaching. With that in mind, it is clear that the critics again demonstrate a significant misunderstanding of the primary mission of universities and the nature of faculty's interest in commercialization and entrepreneurship.

Impressive Data

Based on aggregate numbers, there is nothing inherently inefficient about the licensing process. In the period 2000-08, U.S. universities received 147,515 invention disclosures, filed 83,988 new patent applications, and signed 41,598 license and option agreements, of which 4,566 were with startup companies based on university research.

AUTM knows that the process and profession of academic technology transfer can be improved and is, in fact, the world's leading provider of professional training in this field. Our efforts help to ensure that successful practices are shared throughout the U.S. and the world. These practices are the standard at many, if not most, technology licensing offices. We also believe that laws affecting our profession may be improved in the future. With this in mind, we encourage the critics to bring forward truly informed and constructive proposals that are based on actual data, evidence, and, indeed, common sense. To date, they have neither done so nor engaged technology licensing professionals in a constructive dialogue to identify pertinent issues.

Since 1980, the Bayh-Dole Act has effectively leveraged the tremendous value of academic research to create American jobs, economic growth, and public benefit. The Act has resulted in a powerful system of knowledge transfer unrivaled in the world. If policymakers choose to explore changes to this legislation, they would be well advised to study closely its past and current benefits. But modifications should be made only after an unbiased and informed look at the Act and careful consideration of the potential for unintended effects that might undermine the Act and our economy. If we really want to take the next step in spurring technology-based economic development, let us identify where the real stumbling blocks are and concentrate effort and resources in addressing them rather than opining without data.

Arundeep S. Pradhan is president of the Association of University Technology Managers.

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