MIT, the ILP and R&D Pablo Delgado deTorres
MIT Senior Industrial Liaison Officer
COEPA 21 de Julio 2009
Why Industry Comes to Academia
•
Expose management to leading-edge thinking, technology
• •
Gain insight from internationally-recognized experts Strengthen strategic decision-making: – development of new products and processes – implementation of innovative management practices – achievement of effective growth strategies – New market and social ideas
• • •
Create research synergies Recruit future company leaders Maintain Technological awareness
2
MIT Research Funding -- FY 2008
•
On-Campus R&D: $643 million
Industry Sponsored R&D $100.3 million (16%)
HHS 30%
Source: MIT Data Warehouse -- FY08 Expenditures by Sponsor
3
MIT Total Industry Support -- FY 2008
•
Total Industry Support -- $241.3 million
Industry Sponsored R&D -- $100.3 million
Licensing -- $89.1 million
Gifts -- $42.3 million Source: OCR FY08 Industry Support
Other -- 9.6 million
4
Solving Real-World Problems
•
MIT Industry Alliances – Amgen, Merck, Ford Motor Company, Nippon Telephone and Telegraph, Merrill Lynch, DuPont, Microsoft, Hewlett-Packard
•
708 companies provided R&D/gift support in FY 2008 – 30 companies funded $1M+ – 158 companies funded $100K - $1M
Source: OCR FY08 Industry Support
5
MIT - functional organization •
71 MIT-related Nobel Prize winners –
•
Including 7 current faculty members
5 schools, 34 departments/divisions/sections/other programs –
57 interdisciplinary research units
Chemical Engineering
Biology
Computer Science
Electrical Engineering
Research Center
Mathematics
Management
Economics Materials Science
Source: MIT Facts 2008
6
MIT Organization
7
Research Sponsorship
• •
Many mechanisms and models exist Typically support ongoing investigations by individual faculty or groups of faculty • excellent leverage of corporate R&D funds
•
Examples of sponsorship options available at MIT single company (higher cost but more exclusivity) multi-company (leverage costs and share results)
Small group of companies with common interests band together with faculty to develop a focused collaboration on a narrow topic, outside a consortium model Organized like single-sponsor projects, through participants’ or faculty members’ own networks
consortia and collegia (multi-sponsored shared arrangements)
8
Consortia
• Bring multiple companies together to sponsor research •
in a field of inquiry Examples at MIT:
– closed consortia fixed number of members define and share all research and administrative expenses and share all pre-publication results and licensing opportunities example: Consortium for Advancement of Manufacturing in Pharmaceuticals (8 companies) – open consortia open membership current members pay annual fee and share all pre-publication results and licensing opportunities, with right to sponsor additional projects example: Media Laboratory (>100 companies)
9
Confidentiality in University/Industry Relationships
•
NDA’s – Single Faculty or University – Normal Protocols – Caution on Both Sides – Short term – Specific and event driven.
•
Research Publication – Essential to Faculty/Mission of University – Review Period for Sponsor Prior to Publication
10
Exchanging Personnel • •
Usually arranged as part of sponsored research
•
Allows company scientist:
Company sponsors a senior scientist to participate in the research at the university as a “visiting fellow” – to participate directly in the research to enhance transfer of learning back to the company – to participate in other university activities and develop a broad network at the university
•
Provides a prestigious benefit to top corporate researchers
11
Consulting
•
Most faculty seek private consulting relationships with industry – – – – –
at MIT: 20% of faculty time for consulting helps faculty be aware of real-world challenges helps keep research current, meeting needs broadens faculty professional networks helps develop placement opportunities for students and graduates
12
Consulting
•
Benefits for companies: – brings in valuable outside expertise to solve current, shortand long-term problems – helps broaden corporate vision for planning – allows company to protect confidentiality and ownership of intellectual property – usually negotiated as personal services contracts with individual faculty
13
The Environment •
Venture capital firms, investment bankers, law firms and others.
• Collaborative Science Across disciplines Across institutions Across borders
• Most research intensive area in the country (6% of state product) “Academic research is especially effective as an engine of economic growth in the Boston area precisely because it takes place not in an ivory tower, but in a complex network of relationships among universities, hospitals, other affiliated institutions, corporations and Entrepreneurs”
Appleseed Report
14
Culture • MIT culture supports innovation • Organizational boundaries are very permeable • Intra/inter linkages easy to form and numerous • Environment forces random interactions • Cost of failure is low • Entrepreneurship is holographic at M.I.T.
15
MIT ECOSYSTEM Supporting environment with complimentary assets
L ECOSYSTEM E TECHLINK D Supporting environment with complimentary assets O ENTREPRENEURSHIP M VCPE S CENTER S E IN INNOVATION X-Prize SEBC MIT VMS S MIT SLOAN U B CLUB $100K BP SCHOOL D D-Lab Lab E T A COMPETITION MIT D I-Teams I L ENTERPRISE A V MIT TLO FORUM DESHPANDE CENTER
Innovation
Idea for a company
Legatum Center Industrial Liaison Program
Business Plan
Customers Funding
Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology
Slide courtesy of Prof. Charles Cooney 16
Growth
Many forms of “Technology Transfer” from Academia to Industry
• • • • • •
The graduating student Publication The consulting professor Collaborative/sponsored research with industry University seminars/courses for industry Intellectual Property licensing to – Existing companies – Spin-Outs
17
What is the Industrial Liaison Program?
•
The ILP is industry’s chief gateway and guide to MIT. COMPANY Company
ILP
ILP
• •
Provides expert counsel on building productive partnerships Develops customized, cost effective programs – assess, address strategic research needs – facilitate faculty, researcher interactions – monitor emerging technologies and innovative management practices
18
ILP Facts
• • •
Founded in 1948 Largest program of its kind in the world Worldwide industry membership – 33% N. America, 33% Asia, 30% Europe, 4% Other – broad range of industrial sectors, both traditional and high-tech
•
20 Industrial Liaison Officers* – average 15 years of industry experience – most with advanced degrees
*as of January 23, 2008
19
Typical ILP Services and Deliverables
• • • • • • •
On-campus sessions with faculty and research staff Faculty visits to company sites Executive research briefings Video/Web sessions with faculty and research staff Customized research reports Symposia and conferences Publications – ILP edition of Technology Insider – Web reports and digital presentation archive – Technology Review
• •
Facilitated access to MIT people, resources News and details of relevant MIT activities and programs
20
Typical Benefits Companies Receive • • •
Monitor emerging/disruptive technologies
• • • • • •
Solve short term technical problems
Discover new technologies to strengthen existing businesses Validate or invalidate key investment decisions/ new product development Identify new industry partners Use faculty for consulting/ advice Participate in new industry standards setting Train employees Recruit new employees
21
Deshpande Center for Technical Innovation Launched with a initial $20 million gift •
Nurtures marketable inventions by: – Engaging established industry to spark inventions that solve existing needs – Funding proof-of-concept explorations with Ignition Grants
•
Fuels market-driven innovation by: – Funding research with Innovation Program Grants – Getting the business community involved at an early – stage to help shape the direction of research – Educating the research community about – commercialization to focus efforts in the right areas
•
Implements innovation in the marketplace by: – Catalyzing collaborations with partner companies and entrepreneurs – Directing researchers to appropriate business and entrepreneurial resources – Serving as a liaison between MIT and the local business community – Showcasing MIT technologies via symposia and workshops
•
Expanding to Singapore and Portugal 22
MIT Deshpande Center BRIDGING THE GAP: WHAT CAUSES IT?
Slide courtesy of Prof. Charles Cooney 23
Corporate Licensing
VC Funding
The Market is about Products and Services
Angel Investing
Marketplace
SBIR
Corporate Sponsored Research
Federal grants
Academic Research
The University is about Knowledge Creation and Education
MIT Deshpande Center
InnovationTeams Events
Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 24 Slide courtesy of Prof. Charles Cooney
Corporate Licensing
Grant Program
24
Marketplace VC Funding
Catalyst Program
Angel Investing
Corporate Sponsored Research
Federal grants
Academic Research
SBIR
HOW?
BRIDGING THE GAP: HOW WE ADDRESS IT
TLO’s Mission
Bring about commercial investment to develop inventions from MIT research –To bring therapies and other products into public use –To show the public, Congress, and funding agencies tangible results of basic research –To allow faculty and students to see realworld results of their research –For economic development—in Massachusetts and nationally
Content courtesy of Lita Nelsen director of the TLO 25
Technology Licensing Office Statistics
• • • • •
500 new invention disclosures/year 100 new technology licenses/year 15-30 new companies/year Over 650 active licenses About 300 spinout companies total Spinouts particularly important for “Break-through” technologies – Investments are large – Time-to-market long – Risk of success very high – Large, existing companies reluctant (or unable) to invest at such an early stage Effect on earnings Disruptive to their own R&D agendas – But ready to buy products/company at substantial price when spin-out reduces risk and time-to-market Content courtesy of Lita Nelsen director of the TLO 26
MIT’s Patent and Licensing Goals
• • • • • •
See that ideas are practiced broadly Maximize benefits to general society Enhance the educational process Create companies and jobs Provide funds to patent future ideas Provide modest income to MIT
Content courtesy of Lita Nelsen director of the TLO 27
The Tech Transfer Bargain
•
University research leads to patent—but technology is unproven and high risk
•
University is willing to grant exclusive patent license to Company who will commit to the risk of developing the technology
•
If development succeeds, the patent protects the Company from competitors
•
University benefits from product being developed and from royalties (shared with inventor)
Content courtesy of Lita Nelsen director of the TLO 28
Strategy: do a lot! The Volume Strategy
•
Aim to maximize the number of technologies being developed – Rather than try to pick a few “winners” and concentrate on them
•
100 license/year—20-30 startups
Why are we able to do so much?
•
LOTS of world-class technology—dependent on government support of basic research
• •
Good IP protection
•
An experienced Technology Licensing Office
Consistent Tech Transfer policies throughout the university – It’s about Impact, not (primarily) Income
Content courtesy of Lita Nelsen director of the TLO 29
Advantages of the “Volume Strategy”
•
Maximizes participation of faculty and students in the technology transfer process
•
Maximizes number of technologies invested in by companies and VC’s
• •
Maximizes probability of hitting a home run Technology is probably too early to be able to pick the winners!
Content courtesy of Lita Nelsen director of the TLO
30
Helping Inventors
From the TLO Inventors guide 31
Biotechnology Cluster, Cambridge Mass.
32
Emerging Energy Cluster in Greater Boston
33
100K Student Business Plan Contest
• •
Over 100 entries/year
•
Over 500 people (mostly from business community) attend the final awards ceremony
Volunteers from business community serve as mentors and judges
34
Venture Mentoring Service
•
Over 100 volunteers from the entrepreneurial, angel investing, venture capital and other businesses provide mentoring to entrepreneurs (including alums) associated with MIT.
35
MIT Enterprise Forum
•
Founded and run by volunteers from the business community
•
Run separate monthly clinics for – “concept companies” – Startup companies – Early growth-stage companies
• •
Annual instructional and networking conference Several hundred audience attendees per month
36
And Many Others
•
Entrepreneurship Center: Matches MBA students with internships with entrepreneurial Company CEO’s
•
Student Venture Clubs at undergraduate, graduate levels in b-School, School of Engineering, etc.
•
…….
37
Economic Engine
38
First Time firms
39
Age of Founders
40
Alumni Companies by Industry
41
Startup Funding
42
Sales
43
Where
44
Out of State Sales
45
MIT: References
Bank Boston Study (1997) http://web.mit.edu/newsoffice/founders/ Multi-University Study (2003) http://www.masscolleges.org/Economic/default.asp Technology Licensing Office http://web.mit.edu/tlo/www/ Industrial Liaison Program http://ilp-www.mit.edu $50 K Competition http://50k.mit.edu
46
Remember – When you reach the summit you are only half way thru your journey
47
47
Copyr ight 20022005 Desh pand e Cente r for Techn ologic al Innov ation, Mass achus etts Instit ute of Techn ology
Slide courtesy of Prof. Charles Cooney