The Diverse Roles of Universities in Regional Innovation Ecosystems: Case Studies from University of California Campuses*
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1 The Diverse Roles of Universities in Regional Innovation Ecosystems: Case Studies from University of California Campuses* Martin Kenney Department of Human and Community Development University of California, Davis & Berkeley Roundtable on the International Economy Prepared for
2 Plan of Talk California knowledge economy University-industry relations The linear and other tech transfer models The reality in other domains Who starts firms Commercialization vs. engagement Concluding remarks
3 California s Knowledge Economy
4 Axis Title California s Share of USPTO Patents Is Growing Patents Filed at US PTO by Nation and State, Selected Years, California Germany Japan Massachusetts New York Texas California U.S. (Minus CA, TX, NY, MA) World Total (Minus U.S., Japan, Germany)
5 Global Top 50 Universities* CA: Stanford, UCB, CalTech, UCLA, UCSD, UCSF, UCSB, UCI, USC, UCD (10 total) UK (5 total) New York (4 total) * Shanghai Jiaotong University AWRU 2014
6 Venture Capital Disbursements by Region, SoCal # Silicon Valley Massachusetts New York Texas S. Calif Source: VentureExpert 2014
7 University-Industry Relations
8 First Principles -- U.S. Universities Bulk of funds come from four sources: Tuitions Research (Federal government) Services such as academic medical center hospitals Endowments
9 Licensing Income as a Percentage of University R&D Expenditures, 2007
10 The Private Sector Does Not Support R&D! Federal government State/local government Industry Academic institutions All other sources NSF 2014
11 Benefits Flow from Core Missions Research and Teaching Research and training dwarfs formal transfer activities Licensing income is far less than that from sponsored research and philanthropy University extension can be an important contributor to local industry
12 The Linear and Other Tech Transfer Models
13 The Linear and Biotech Models Biotech Model Vannevar Bush Model University Lab Basic Research Patents Tech Transfer Office VC-Funded Start-Up Direct license To big pharma Applied Research Development Big Pharma Product Time Horizon 8-12 years New Drugs
14 Reality in Other Technologies
15 The Engineering and Scientific Instruments Model Engineering Model Scientific Instruments Model Academic Research Basic Research Results Scientific Instrument Open Source Firms Boot-Strapped Firm Product Time Horizon 2 years Time Horizon Sell what is made Product
16 UCB EE&CS Case Study Students in industry continuing relationship w/ professors Consulting bi-directional tech and problem transfer Professors hired from industry Professors take sabbaticals in industry Industry researchers take sabbaticals at university and vice versa Industry contributes software, money and equipment to university Importance of open source Source: Kenney et al. 2014
17 Berkeley Unix The Simplified Version Software developed at Bell Labs UCB Prof sees asks for copy and UCB licenses UCB grad students Intern etc. at Bell With students improve at UCB Bell Labs researcher teaches Unix at UCB for year UCB provides version to public for free SendMail Program UCB Ph.D. student takes BSD and founds Sun Micro Basis for Linux Basis for Apple OS 10 Adapted from Kenney and Mowery 2014
18 UCB Profs and the EDA Industry E. Kuh Ecad P. Huang P. Chao G. Antle A. Sangiovanni -Vincentelli SDA J. Solomon Synopsys A. De Geus R. Newton C. Hu Celestry Design Solutions ProPlus Design Zhijian Ma E. Lee Agile Design Berkeley Design Tech Jeff Bier Cadence Gradient Design Automation R. Chandra ReShape CoWare Simplex Solutions Res Saleh Sequence Design (A) PDF Solutions Averant Ramin Hojati CommandCAD Frank Gennari Matt Moskewicz C. Spanos R. Brayton K. Keutzer R. Rabaey = founder UCB Professor = merger/acquisition = advisor Firm Founder (red = UCB grad) Amnocore Source: Kenney and Mowery 2014 O-in-One Design Automation (M)
19 Wine Industry UC Davis and Napa In early years industry leaders had little formal knowledge UC Davis provided the practical tools Even ran wine tasting events at State Fair Later industry became more capable needed less practical training University scientized and continued to develop new techniques 2012 study of Napa winery websites showed almost 80% claimed winemaker trained at Davis. Source: Lapsley and Sumner 2014
20 UC Davis Napa Valley Interactions Evolve Napa $6 billion in wine and tourism revenue Deep interaction mutual learning Trained students critical Technology Transfer Office plays no role
21 Who Starts Firms?
22 Place Where People Can Experiment Companies University Dell Microsoft Facebook Linkabyte//Qualcomm Broadcom Genentech Chiron Yahoo Google Cisco Sun Micro Bose Akamai Biogen University of Texas* Harvard* Harvard* UCSD UCLA UCSF UCSF Stanford* Stanford* Stanford Stanford* MIT MIT Harvard Red = Unlicensed Yellow Star = Students
23 Universities as Industry Seeders Personnel leaving university are knowledge carriers Many disciplines Statistics SAS and Quintiles Entrepreneurial cascades (Klepper 2009) Universities creates the seeds The cascade comes from already operational firms
24 Commercialization Versus Engagement
25 Engagement Vs. Commercialization Bi-directional Importance of interacting with local industry People as conduits Consulting as learning Porous boundaries Patenting and licensing are only complements to university research and training missions
26 But!!! Universities can act like patent trolls Sue their own professors Reward professors who have valuable inventions not great research Professors with firms can act unethically Withhold information Stop contributing to information commons Exploit students In worst cases, lie, cheat, etc.
27 University and Social Good Train great employees? Increase the social knowledge base? Upon which commercialization can occur? Commercialize research and earn money for university? Provide private sector with patentable knowledge? Be an economic development pole? Educate aware and engaged citizens?
28 Most Important In a knowledge society we cannot force the multifaceted role of university into one small narrow box need to encourage experimentation
29 Questions?
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