During fiscal year 2008, 595 companies were formed as a result of U.S. university research, according to the AUTM U.S. Licensing Activity Survey: FY2008, released by the Association of University Technology Managers in Deerfield, IL. Nearly three-fourths (72%) of these companies had their primary place of business in the university’s home state — sound evidence that university TTOs also contribute to local economic development. The survey also indicated that 648 new commercial products were introduced and 5,039 licenses and options were executed during FY2008. All told, 3,381 start-up companies founded with U.S. university IP were operating at the end of FY2008, according to the report. U.S. university TTOs that started 10 or more companies in FY2008 included Boston University/Boston Medical Center, California Institute of Technology, Carnegie Mellon, Columbia, Harvard, Johns Hopkins, MIT, Purdue, SUNY, University of Alabama in Huntsville, University of California system, University of Colorado, University of Florida, University of Illinois, University of Michigan, University of Texas at Austin, and University of Utah.
The survey’s 191 respondents reported 2,092 full-time licensing employees — an average of 11 FTEs per office. Many university TTOs still operate lean programs, however. Approximately 44% of university respondents (69 of 155) reported three or fewer staff members. Survey participants reported $51.47 billion in total research expenditures — an increase of $2.7 billion, or 5.5%, over FY 2007. Federal government sources accounted for $32.7 billion, or 63%, of total research dollars, compared to $31.7 billion in 2007 — an increase of 3.2%. Industry-sponsored research grew by 9%, to $3.73 billion.
Of the 20,115 disclosures filed by AUTM survey participants during FY 2008, the therapeutic/medical category accounted for 27% (5,393), followed by computer/electronic at 9% (1,890), research tools at 8% (1,562), and finance/education/art/music and plant at 1% each. “Other” disclosures accounted for 14% (2,771), while 40% (7,995) were unclassified. Institutions reported that 9% (1,885) of the disclosures received in FY2008 were closed, compared to 10% (1,932) in FY2007.
The number of annual patent filings by U.S. TTOs has nearly doubled over the past decade, according to AUTM, from 9,557 in 2000 to 18,949 in 2008. Although the number of U.S. patents issued has been relatively constant — 3,280 in FY2008 compared to a low of 3,255 in FY2006 and a high of 3,933 in FY 2003 — “this has not prevented licensing professionals from continuing to outlicense technology,” the report points out. Not surprisingly, U.S. patent applications (12,072) greatly outpaced non-U.S. patent applications (848), which continued to fall from a high of 1,403 in FY 2006.
Licensing to small companies was the dominant licensing transaction for U.S. TTOs, representing 48.2% of licensing activity during FY2008. Licensing to start-ups and large companies represented 15.8% and 35.1% of transactions, respectively. Total license income for survey respondents was $3.4 billion, up 26% from $2.7 billion in 2007. The increase was due in large part to income reported by Northwestern University from the licensing of the technology underpinning Pfizer’s epilepsy and pain drug Lyrica, according to AUTM. University standouts in licensing activity, with 100 or more licenses and options executed during FY 2008, included North Dakota State, Stanford, the UC system, University of Georgia, and University of Washington. University TTOs with $100 million or more in FY2008 licensing revenue included Columbia, NYU, Northwestern, and the UC system.
Although the level of TTO activity in Canada was predictably smaller, the pace was healthy. Thirty-nine companies were formed in Canada during FY2008 as a result of university research, according to the AUTM Canadian Licensing Activity Survey: FY2008. Of these, 37 were principally located in the institution’s home province. Discoveries at Canadian institutions also spawned 52 commercial products during FY2008. All told, 608 start-ups launched by Canadian institutions were operating at the end of FY2008.
Canadian institutions totaled $5.52 billion in research expenditures during FY2008 — a 7.8% increase over the previous year. Research expenditures funded by the federal government rose by 3.4% over the previous fiscal year, to $2.43 billion, while industry-sponsored research grew by 33.4%, to $610 million. Thirty-five institutions reported 1,820 disclosures in FY2008, compared to 1,844 disclosures by 39 institutions the previous year, with three institutions — the universities of Guelph, British Columbia, and Toronto — leading the pack. As with U.S. institutions, therapeutic/medical device led the categories, with 25% of FY2008 disclosures, followed by plant at 17%, computers/electronics at 11%, research tools at 6%, and finance/education/art/music at 2%. Sixteen percent of disclosures fell into the “other” category, and 22% were uncharacterized.
Patent activity increased at Canadian institutions, with 1,029 total patent applications filed and 890 new patent applications filed by participating institutions. On the human resources side, institutional TTOs saw a shift during FY2008. Overall numbers of licensing staff increased but there was an equivalent decrease in the numbers of administrative staff, maintaining the overall staffing at the survey’s 37 reporting institutions at 365 FTEs.
Sources: AUTM and AUTM
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