Taking Intellectual Capital to Market
Research and economic development are about the pursuit of scientific discovery that can forever change the course of humankind for the better, and then taking that discovery and making it available to the public.
As the state’s only land-grant, doctoral-granting research institution, the University of Missouri is an economic growth engine for the state. The university elevated the role of economic development to the fourth mission of the university in 2004. Since then, the university has strengthened its focus on innovation-based economic growth by championing research at its four campuses and finding ways to market that research through public/private partnerships.
There is more work to be done, however. As the world transitions to a knowledgebased economy, intellectual property assets are increasingly recognized as key business assets. In fact, it is estimated that greater than 70 percent of the market value of publicly traded companies is attributable to intellectual property. The university is in need of a new intellectual property management paradigm that will sustain a repeatable process across campuses and a breadth of intellectual property, facility and operational needs of the inventors, outside organizations and corporations. This will increase economic growth by stimulating technology transfer activity, including invention disclosures, patents, licenses and business start-ups.
Request
The University of Missouri is requesting $1.5 million from the state. One million dollars will be used to fund additional staff in the areas of innovation, commercialization and portfolio management, and legal, marketing and new product support. Funds also will be invested in software resources to establish a systemwide pipeline of research that can move from the lab to the marketplace.
The remaining $500,000 would provide grants to faculty to accelerate proof of technology demonstrations, market research for identification of market entry points, and start-up funds for new company formation issues and challenges that have been identified. This investment fund would be managed by a 501c(3) System Foundation Board of Directors and provide for investments in research incubators, accelerators, research parks and overall commercialization of scientific discoveries in Missouri’s labs.
Fast Facts
The University of Missouri infuses nearly $572 million in the Missouri economy from outside
sources, including federal grants, private donations and out-of-state tuition. This money ultimately creates almost $1.1 billion in economic activity and more than 13,000 jobs.
- The university generates a 5-to-1 return in annual operating revenues for every dollar appropriated. With nearly 26,000 in-state employees, the payroll alone accounts for $940 million annually with a direct return of $126 million in taxes.
- Public universities like the University of Missouri conduct two-thirds of the country’s basic research and are the primary source of technology development.
- Research funding at the university topped $326 million in 2007, up from $170 million just 10 years before.
- Licensing revenues from Missouri research are expected to reach $7 million this year, up from $1.5 million in 1997.
- The university currently maintains research parks and incubators at eight sites around the state that foster human discovery and bring new products to market.
Profile
“As a researcher at a University of Missouri campus, I am making an impact on the health and well-being of Americans. I recently invented a new infrared optical device for a pain-free, non-invasive way to check blood glucose levels for both Type 1 and Type 2 diabetes, which is estimated to affect more than 24 million children and adults in the United States. An initial pilot study is currently being conducted, which is producing even better-than-expected results, and we are currently working on raising capital for a larger clinical trial in early 2009.
“I also have invented a range of optical technologies with a colleague that increases the sensitivity of certain devices, enabling better measurement of minute compounds in solutions. This invention was licensed by a Chicago-based company, and the university has received $415,000 in royalty revenue since late summer 2004, along with annual sponsored research funding for further development.”
— Dr. Zhi Xu, associate professor of chemistry and biochemistry at the University of Missouri-St. Louis and
winner of the 2004 UM Faculty Entrepreneur of the Year award
and the 2004 St. Louis Business Journal Inventor of the Year award