Interface between Universities
and the Marketplace
The Interface In Scotland
November 2007
I can … and will talk about a range of
projects and initiatives operating at the
interface, including:
• Major Research Collaborations
• Dialogues with SMEs
• Even one called Interface
….but first
We need to understand what the interface is for:
This is a key question
- Revenue for Universities?
- Academic reasons?
- Contribution to the Economy?
Most people will answer yes to all three
BUT – the three are profoundly different in
terms of objectives, management and
measures of success
Let me explain …
Public Good
Academic
Revenue/Profit
Reasons
Student
yes
?
placements
no
Economic
yes
?
no
development
SME networks
yes
?
no
Contract
no
yes?
yes
research
no
no
yes
Licences
Spin-outs
no
no
yes
The motivations, objectives and partners differ
hugely
Activity
SME
Collaborative
Licensing/
support/student
research
Spin-outs
enterprise
Partners
SMEs/
Company
Investors/
Research
Students/
Entrepreneurs
Partners
RDAs
Aims
Economic
Research
Financial
Development/
Outputs
returns/
Public Good
Private Gain
Measures
Socio-
Academic
Financial
Economic
(outcome)
(Outreach)
Objectives
OUTREACH
Knowledge
OUTCOME
Creation
Can think of it as a spectrum of activity
- knowledge is created at the centre and then
transferred either
Outreach
Knowledge
Outcome
Creation
The University creates knowledge through research
then EITHER
- behaves like an Economic Development Agency – and
does ‘Outreach’ activity
OR
– behaves like a Venturer – and does ‘Outcome’ activity
This is important because …
… it defines what success is – it tells you how to
measure performance
… and financial measures are limited
Financial
Return to the
University
£
SME/
Collaborative
Licensing
Students
Research
Spin-outs
Knowledge
Creation
OUTREACH
OUTCOME
Economic
Venturing/
Development
Enterprise
Knowledge Transfer – financial measures?
•
So the more Economic Development we do, the more
money we lose. Economic Development is a money-
losing game
•
Venturing can make money, but on a very small
number of projects
- These have significant policy implications
PLUS …
For most Universities Economic Development
and commercialisation are marginal
£ Turnover
SME/
Collaborative
Licensing
Students
Research
Spin-outs
BUT
Knowledge Transfer is increasingly important
•
key to development of the Knowledge Economy
•
key to wealth creation and prosperity
So we must find ways of balancing the University
Knowledge Transfer portfolio:
-
Sometimes we do it for the public good
-
Sometimes it is straightforward research collaboration
-
Sometimes we want to make money
In Scotland we have examples in all 3 categories:
Outreach
Collaborative
Outcome
Research
Dialogues
TMRC
IP2IPO
Interface
Student
Enterprise
OUTREACH
Dialogues
•
Facilitate knowledge transfer to help build a knowledge economy
•
Dedicated business development support for SMEs, primarily
focused on the West of Scotland - helping the University create
links with businesses
OUTREACH
Dialogues – the benefits
The SME….
Access to University facilities, improved service/product/process
development, business growth, student placement/expert
consultancy
The University….
Building better relationships with the business community through
learning from Industry, personal development for academics
…NOT MONEY
The local economy…
Increased investment in R&D, a knowledge rich environment to
encourage innovation and development within SME community
OUTREACH
Dialogues – Measures
-
Number of companies dealt with
-
Number of new enquiries
-
New projects initiated
-
US award for economic development and Scottish
Government’s Regiostars nomination
….income from SMEs indicates activity, and profit from the activity
would be –ve.
Volume and quality are positive indicators – income not.
OUTREACH
Interface
A collaborative service to:
•
Provide a
free, rapid and confidential central point of access to the
Scottish research base representing
all Scottish Universities.
•
Provide information in response to enquiries on research capabilities,
consultancy, technology, access to equipment, facilities etc.
•
Filter and direct enquiries as appropriate to each institution offering a
one-stop matchmaker service.
•
Offer support and guidance throughout process including information
on potential funding sources and legal issues.
OUTREACH
Interface - engagement
•
Direct contact or referral
•
Establish requirements
•
Search for expertise initiated or signposted elsewhere
•
Expertise identified suitable for collaboration
•
Additional information provided (e.g. finance)
•
Company decides how they wish to proceed
•
Introductions facilitated
•
Project scoped out
OUTREACH
Interface - measures
•
Numbers of contacts
•
Numbers of referrals
•
Numbers of Additional information provided (e.g. finance)
•
Numbers of companies initiating projects
•
Numbers of Project scoped out
Value of projects initiated would indicate volume of activity…again the
actual return from the project would be –ve. The benefits are to the SMEs
and the economy.
OUTREACH
Student Enterprise
Glasgow Student Enterprise aims to help students develop new skills by
taking part in social events, competitions, training and hands on learning
experiences as well as offering them an opportunity to start their own
business.
GSE’s aims are to help students:
•
Be more confident, creative and inspirational
•
Develop skills that will help with employability
•
Gain from opportunities to manage and work with small businesses
•
Take advantage of business start up opportunities
•
Meet some of Scotland's most entrepreneurial and motivational speakers
•
Travel the world and have fun!
OUTREACH
Student Enterprise - measures
•
Numbers of students engaging
•
Numbers of business plans created
•
Quality of plans as measured by competition results
•
Numbers of companies formed
Students involved in enterprise
1,086 last academic year – 20% growth
Student BP competitions won
13 in last four years
Student companies started
38 in last four years – +80% last year
Turnover or investment are indicators of activity, but again, return to University
would be –ve….but it is good for Scotland and the students
Collaborative Research
TMRC & Wyeth
‘Development and commercialisation of Translational
Medicine in Scotland to deliver substantial long-term
Research and development and educational
programmes in Scotland, and accelerate
access to new medicines for Scottish patients’
Collaborative Research
TMRC – Wyeth contributions
Wyeth:
•
$6m for TMRC set-up
•
$500k each year of five year initial period for running costs
•
$45m in Translational Programmes (TPs) at FEC over five year initial
period
•
4-10 Wyeth full time collaboration staff in Scotland
Other Benefits:
•
Technology and informatics training; share best practice in clinical ops,
protocol design, study management
•
Access to proprietary scientific databases and software
•
Reasonable endeavours to commercialise IPR, Data, TTB
SE:
•
£17.5m funding over initial five year period
Collaborative Research
TMRC - University contributions
•
Access to world-class academic and clinical researchers and
facilities
•
Background and Foreground IP (licenses or rights) relating to
the TP’s
•
University / NHS in kind contributions of £16m million over five
years
•
Host institution set-up costs of £4.5m over five years
•
Help get £5m in third party funding from non-industrial research
bodies
Collaborative Research
TMRC – Measures
1.
Number of new applications
2.
Number of new awards
3.
Value of new projects
4.
Quality of research (publications and IP generated)
…classical research measures. Note projects are
FEC….do not make any ‘profit’.
OUTCOME
ILT – Off-the-shelf Licences
• Designed to address business ‘complaints’
• Designed to maximise deal-flow and reduce costs
• Intended to make licensing easier and cheaper
• Patented technology available to licence on pre-
agreed terms and price at the click of a button
• Removes bureaucracy and time and COST for all
OUTCOME
ILT – Measures
• Numbers of enquiries
• Deals done
• Revenue to University
…commercial measures.
NOTE we have had great numbers for traffic and
enquiries…not a single deal done…so we are
revisiting the business model.
OUTCOME
IP2IPO
• LSE Listed; £300m
• Specialist investor in University spinout companies
in
partnership with the University.
• Currently in partnership with: Oxford (Chemistry),
Southampton, KCL, York, Leeds, Bristol, Surrey,
Bath and Queen Mary’s (London)
OUTCOME
IP2IPO – key partnership terms
•
£5M Initial Seed Investment Fund
•
25 year deal – but regular reviews
•
Spin-out option university decision
•
Exclusive first option to invest in all spin-outs
•
Up to £500k per spin-out
•
Joint decision making on investments
•
IP2IPO 12% Founding share
•
Significant fixed pre-money valuation/investment pro-rata
•
Provision of one FTE member of staff to support projects
•
No follow-on funding – aligned to maximise returns for founders
•
Support for spin-out management team and networking to 2nd round
investors
…it’s like a business plan!
OUTCOME
Commercialisation - measures
•
Numbers of spin-outs
•
Investment in spin-outs levered
•
Value of portfolio
•
Returns to the Founders
…exactly the measures any venturer/investor would use
In Summary:
•
We understand the nature of the interface and the
different objectives/requirements.
•
We believe we have in place mechanisms to
support the different objectives and the right
measures for each.
•
YOU MUST KNOW WHAT SUCCESS LOOKS
LIKE TO KNOW WHETHER OR NOT YOU ARE
SUCCEEDING….
•
The right measures suggest we are doing well.
Thank you
Dr Kevin Cullen
Director, Research & Enterprise
University of Glasgow
[email address]
Interface between Universities and the Marketplace
November 2007
