The majority of US universities are failing to break even on technology transfer, a new report has indicated.
The majority of US universities are failing to turn their research into income with a select few claiming most of the rewards, according to a report from think tank the Brookings Institution.
The report, called University Start-Ups: Critical for Improving Technology Transfer, slammed the conventional licensing route for tech transfer offices (TTOs) as ‘unprofitable’ and at risk of alienating the private sector. It suggested that TTOs need to do away with licensing patents to the highest bidder, and focus on nurturing spin-outs and startups.
Figures from the report indicated that the licensing route is only a viable option to the highest tier universities. In 2012, the top 5% of earners in the US (8 universities), received half of the total licensing income, while the top 10% (16 universities) took 70%. Furthermore, the report’s author Walter D. Valdivia estimates that 130 universities did not generate enough income in 2012 to cover their tech transfer costs (staff, legal, etc). Also, although 84% of universities were operating tech transfer in the red during 2012, this was deemed a good year as over the past 20 years, on average, 87% did not break even.
The report advocates startups and spin-outs leading the way over licensing, and suggests three recommendations to help foster a better climate for university-linked businesses, including Small Business Technology Transfer funds specifically for spin-outs and startups, a universal equity rule for the distribution of funds, and patent use exemption for non-profit research organisations.
