Stanford panel focused on how universities are leveraging scholarship to make a difference in the world and the communities in which they are located. This presentation describes the "Utah model" and the changes the University of Utah made to become one of the top public university commercialization programs in the nation.

1. Papers, Patents and …
Products
Jack Brittain, PhD
Pierre Lassonde Presidential Chair
University of Utah
http://www.techventures.utah.edu/

2. Economic Significance
“The economic significance of the research university goes
far beyond its role of education and training. For several
decades, university research has increasingly formed the
foundation of significant technological advancements.
These technologies enter the marketplace through research
collaborations with industry, licenses, and to an increasing
extent, university-driven efforts to turn new ideas into start-
up companies.”
Jan Crispin, Senior Research Economist.
The Economic Impact of Startup Companies
and Invention Licensees Originating from
Research at the University of Utah.
Bureau of Economic and Business Research,
2011.

3. Technology Value Curve
Spinoff Value
Generation Venture Bench Services
• Prototype
Where Universities
Traditionally Add Value
• Incorporation
• Logo/website
• Corporate Secretary
• CFO Solutions
• Umbrella Insurance
• Market research
• Grants programs
PROOF OF COMMERCIAL MARKET
IDEA PROTOTYPE
CONCEPT LAUNCH EXPANSION
Commercialization Stage

4. Small-Light-Fast
Money
• Small amounts with immediate
milestones (4 months or less)
 money chases success as milestones accumulate
• Light regulation and administration
 little administrative overhead in making awards
 universities recommend
 accountability is for university’s portfolio results
• Fast decisions sustain technology development
momentum, facilitate continuity of effort

5. Spinoff Development
Spinoff Value Generation
Phase 1 Phase 2 Phase 3 Phase 4
Up to $500,000
Formation Business Operating
Seed Funds, e.g. Kick Start Market
• Legal • Business • Customers Entry Total Potential
$50,000 Foundation
Formation Plan Testing • Marketing/
• Technology
Virtual Incubator Program Grant
• Product Product
Startup Funding 5
Phase
Sales
License Up to $1.2 Million Investors
Validation • • Strategic
$1,945,000 Term
Long
Federal SBIR/STTR
• Product • Product • Key ($1,445,000 is
Partnerships Growth
Development development
$40,000 Utah Managers • New Grant Funding)
• Logo, web grants • Board of
Technology Commercialization Products &
• Product • Angel &
and Innovation Program (3 times)
Directors IP in
development $35,000 Foundation • Bank Credit
Seed development
grants
$5,000 Investors
Technology Commercialization
Micro Grant Grant (2 times)
COMMERCIAL MARKET
PROTOTYPE
LAUNCH EXPANSION
Commercialization Stage

6. Accelerators, Incubators and Start-ups
1. 2005 Micro Grants
2. 2006 Venture Bench
1970-2005 (36 years): 79 Start-ups 3. 2009 Medical Device Accelerator
• Average 2.2 per year 4. 2010 Software Development
2006-2012 (7 years): 144 Start-ups Center
• Average 20.8 Start-ups 5. 2011 StaC Student Technology
Assistance Center
6. 2011 DOE Energy
Commercialization Center
7. 2012 Hospital Innovation Center
Start-ups

7. Tech Ventures Team
Glenn Prestwich >$1.2 million >$100 million
Presidential Professor
Presidential Special Assistant Software Dev Center Seed Funds
Entrepreneurial Faculty Scholars Ron Weiss, MD Medical Accelerator • KickStart
retired ARUP CEO Energy Comm. Center
• UpStart
≈420 faculty Faculty Outreach Venture Bench
• Lineagen
15% total faculty 5-8 faculty case load • Vendice
Troy D’Ambrosio
• Navigen
Seasoned Entrepreneur Doug Lloyd/David Dolan • Founder Fund
Serial Entrepreneurs
Raised Capital
Entrepreneur in Residence
• UVF
Director of Education Programs
> 100 business people
> 2600 students
Bryan Ritchie, Director and Associate VP
25 fulltime professionals + 30 student interns
Research Technology Commercialization/Commercial Research
$300 million 300 “Inventions” 120 Potential Licenses
federal research
Commercialization 30 Potential Companies
Company

8. Leading Indicator: Investment

9. Grants as a Foundation for
$1,600,000,000
Investment
$1,400,000,000
$1,200,000,000
$1,000,000,000
$800,000,000
$600,000,000
$400,000,000
$200,000,000
$0
2005 2006 2007 2008 2009 2010 2011 2012
Cumulative Grants Funding Cumulative Investment Funding Value Private Companies

10. Net Results
• Spanning Valley of Death
• The Gully of Inconvenience
• Leverages investor dollars
• Community engagement
• Student Opportunities:
Pole Vault Media
• Entrepreneurs In Residence
• Commercialization Advisory
Board/Company Collaborations

11. University Inventors, Startups, & Revenue
Faculty Inventors Revenues
$90,000,000
180
$80,000,000
160
$70,000,000
140
$60,000,000
120
$50,000,000
100
$40,000,000
80
$30,000,000
60
$20,000,000
40
$10,000,000
20
$0
0
FY FY FY FY FY FY FY FY
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 2004 2005 2006 2007 2008 2009 2010 2011
Repeat Inventors New Inventors
Licensing Commercial Clinical Research Commercial Research
Start-ups
25
20
15
10
5
0
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011

12. Total Mission Integration
• Educational programs > 2600 students
 Defining educational experience
 Huge positive for faculty
• Donor gifts over $35 million
 Lassonde Center
 Sorenson Discovery Center
 Annual sponsorships over $1 million
• University Venture Fund
 manages $18.5 million in Fund I
 Fund II target is $30 million

13. Returns from
Commercialization
• Dollars are in
– Equity and royalties
– Research back to the University
– Donations and other support
• Industry-sponsored
research yields more than
license income

14. Utah Economic Impact from
University of Utah Research
Total External Operating Total
FY 2010 Research Funds Spinoff Total Annual Total Tax
Spent in Utah Companies Employment[1] Payroll Contribution[2]
External Research
Funding (total = $388 million 8,906 $378 million $33.4 million
$451 million)
Technology
Commercialization 150 19,818 $947 million $96.2 million
(19 new in FY10)
Total $388 million 150 28,724 $1.3 billion $129.6 million
[1] Bureau of Economic and Business Research, 2010 and 2011. Includes direct, indirect, and induced employment.
[2] State and local taxes.

15. What Worked for Utah
• Leverage/OPM
– Grants
– Donors
– Effort
• Fund Critical Paths
– Monitor milestones
– Do not fund “no results”
– Post performance funding:
money chases success
• Outcomes depend on shots on goal
– control strangles speed and momentum
– place small bets with immediate milestones
• Capital formation is about outcomes

16. Reinvented University
Commercialization
• Changed from cost recovery to investment model
– Cost recovery is inevitably a failure
– Changed the nature of our work to the positive
• Commercial sponsored research
= sustainable business model
• Total mission integration
= strategic engagement
• Evolved structure

17. Universities and the
Innovation
Ecosystem
“Universities do not get enough credit for
the fact that as players in our innovation
ecosystem, they’re willing to gamble on
cash-strapped startups. At the end of the
day, who else is offering to pick up the
tab? … Warts and all, universities remain
willing to pay patent costs to support
expensive and increasingly sophisticated
IP strategies for startups who will likely
never be able to pay them back.”
- Melba Kurman, Triple Helix Blog, 25 Feb 2011