USA Perspectives & Success Stories: TTO-Science Park-Incubator

Dr. Brad Zehner PBICA Conference Gliwice, Poland 19-21 May 2011

Historical Perspective Technology Transfer Office Science Park Business Incubator Observations

Agenda

Recognition of & IP Patent Protection

• 1776 - Revolution • 1783 – US Government 1776-1783 1790 Recognized IP • April – Patent Act – “to promote the useful arts” • July – Patent #1 - potash • Patent #72 – Eli Whitney – Cotton Gin • Improved productivity 50X • Licensed to users for 40% profits • Failed financially 1794 First Patent Significant Commercial Value

Creation of Research Universities

• Created public land grant universities “to teach such branches of learning as are related to agriculture and the mechanics arts...to promote the liberal and practical education of the industrial classes” 1862 Morrill Act Catalyzed founding of today’s US research universities •MIT -1865-George Eastman – Eastman Kodak •Cornell – Ezra Cornell- Western Union Telegraph •University of California, Berkeley – 1868- George & Phoebe Hurst •Johns Hopkins – 1876 - John Hopkins – B & O Railroad •Stanford – 1891 - Leland Stanford – Union Pacific Railroad / Wells Fargo Bank • Science & technology • Strong relationship with business & commerce University Focus

Commercialization Begins

• Dr. Frederick G. Cottrell - UC Berkeley chemistry professor • Invented electrostatic precipitator – Patent #895,729 • Funded Robert Goddard rocketry experiments & Ernest Lawrence cyclotron 1912 – The Research Corporation 1924 – First Technology Transfer Office • University of Wisconsin Alumni Research foundation • Manhattan project • NASA – Moon Shot 1940 -1970 – US Government Funds Research

Commercialization Accelerates

• Stanford Industrial Park • Foundation for Silicon Valley 1951 - First Science Park 1959 – First Business Incubator • Upstate New York • Gave universities intellectual property rights to government funded R&D 1989 - Bayh Dole Act

TTO Licensing

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The “famous Silicon Valley garage”

• Google started in Susan’s Wojcicki’s rented garage. Today, she is one of Google’s 12 senior vice presidents. • Susan’s sister, Anne Wojcicki, is married to Sergey Brin, Google’s cofounder.

Successful Licensing

• • • • • Patent: #6,285,999 Inventor: Lawrence Page Owner: Stanford Stanford Licensed Google – Exclusive term – 2001 to 2011 – Non exclusive term – 2012 to 2017 – – Applied: 1998 - $25K / €17.5K

Granted: 2001 - $25K / €17.5K

– Google enforces patent – Product liability insurance – Terms – royalty & stock Stanford Received: – ~$337 million USD / €235 million – TTO - 15% – Inventor – 33% – Computer Science Department – 33% – University – 33% • • • • • • Revenue: Net income: Cash: Market value: Employees: Stanford grads: ~$32 billion USD / €22.3 billion ~$9 billion USD / €6.3 billion ~$37 billion USD / €22.3 billion ~$172 billion USD / €120 billion ~26,000 ~6,000

Research Triangle Park

Successful Science Park

• • • • • • • • • Founded 1959 Duke University North Carolina State University University of North Carolina – Chapel Hill Academic & industry – IBM, Cisco, Credit Suisse Land: 2832 hectares Buildings: 2.09 m 2 Government incentives 87% success rate • • • • 170 companies 38,000 employees +2.6 jobs per RTP employee North Carolina Developing: – Centennial Campus – Gateway University Research Park – – Charlotte Research Institute Piedmont Triad Research Park

Austin Technology Incubator

Successful Business Incubator

• • • • • • 1989 founded Dr. George Kozmetsky Non profit - University of Texas at Austin Funded by: – City of Austin – Austin Energy – State of Texas Focus: – Clean Energy – Wireless – – IT Biosciences Applicants screened: – – 5% admitted 1 to 5% equity • • • • Since founding: – 200 companies incubated – – $750 million / €523 million investments 4 IPOs Last 3 years – 50 companies – – $70 million / €48 million $300 million / €209 million investments – 75% funding success 100 + student interns annually TechBA – 30 Mexican companies

Observations

IP Protection is part of USA’s DNA Cultural respect for “practical knowledge” Excellent research universities Strong ties between academics and business Success: Clarity of purpose + Firm financial foundation + Entrepreneurial ecosystem + Time to succeed

Questions

Thank you!

Questions?