(66a) Role of University Startup Companies In Technology Commercialization (keynote talk)

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Role of University Startup Companies in Technology Commercialization

Robert F. Anderson

Technology Transfer Director Illinois Institute of Technology

Chairman, Hybrid Electric Vehicle Technologies, Inc.

The traditional university role of performing fundamental research leaves a large gap between the laboratory stage “proof of principle” and producing economic benefits in the commercial marketplace. Companies usually prefer to license technology with most of the risk taken out. This risk reduction normally occurs via the development component of the research and development process. Unfortunately, the cost of D is often 10 plus times the cost of R, which puts this effort out of reach of most universities. In addition, the opportunity for publication and contribution to the state of the art science (the usual focus of university research) is limited as the development activity concentrates on such issues as economic tradeoffs, catalyst life, feedstock impurities, manufacturing processes, corrosion and other materials of construction issues, product specifications, and mechanical hardware issues.

To bridge this gap, Illinois Institute of Technology has put in place a series of solutions to the problems that stand in the way of commercial success for new technology. This presentation describes how these solutions have also provided benefits to our development partners. Among these opportunities are the mutually beneficial participation of undergraduate students working on these more-practical problems, the mutual benefits of strategic alliances with existing commercial companies, the importance of incubator facilities with their ancillary networking potential, the contribution that senior executives and alumni can provide as friends of the university in mentoring entrepreneurial faculty, the supportive role of the technology transfer function of the university, access to the university’s marketing and communications professionals, and alignment of startup company interests with the university’s goals via equity investment in the company.