Alternative Revenue Sources to Fund Research Geoffrey S. Chatas Senior Vice President for Business and Finance and Chief Financial Officer

Research at The Ohio State University

Research Across a Large University Targeted Investments in Excellence (TIEs) A 5-year, $110 million investment targeting major global concerns through multidisciplinary work: Climate, Water, and Carbon Mathematical Biosciences Institute Public Health Preparedness Program Center for Cosmology and Astro-particle Physics Center for Clean, Sustainable Energy Advanced Materials Initiative Population and Health Initiative Translational Plant Sciences Initiative The Music Industry Program Micro-RNA Project

Centers for Innovation: Leading Innovation and Discovery to Address Problems of Global Dimension Poverty Hunger Health and disease Climate change Economic systems Industrial competition Art and culture Access to energy

Collaboration Across Disciplines Food Innovation Center Designing foods for health Food safety Biomedical nutrition/ disease prevention Global food strategy and policy

Finding Solutions to Global Challenges Health and Wellness Food Production and Security Energy and the Environment Photo courtesy of the Ohio State Medical Center Photo courtesy of the Ohio State Office of Energy and Environment Discovery Themes

Ohio Third Frontier Program 60+ Ohio State projects 60+ Ohio State projects Facilities and laboratories Industry-university collaborations Product development

“Partnerships With a Purpose” The Ohio State University Industry Liaison Office Accelerating Innovation… Connections Strategic Partnerships Project Collaborations Student Opportunities Sponsored Research Support Services Opportunity Assessments …building global leadership 8

“The Gateway” to Ohio State Innovation and Expertise More than 400 New or Renewed Connections

Ohio Research Industry Partnerships More than 340 Industry Partnerships

more than 760 partnerships Ohio State is actively engaged in more than 760 partnerships with industries representing 40 states The number of industry partners are represented in each state

One example of a College investing in faculty research - Medicine The College of Medicine (COM) invests in its researchers via three programs Equipment/Shared Resource Program Created to support the purchase/upgrade of shared equipment or the development and dissemination of innovative methodologies expanding Core use Applications are reviewed by COM Core Oversight Committee $475,000 have been awarded since FY10 to 16 researchers

COM Research Investments Bridge Funding Grant Program Created to provide short-term bridge funding to faculty with favorably reviewed but unfunded federal research Goal: Support research that is likely to be federally funded All applications are peer reviewed.. Since FY10, 13 researchers have received more than $780,000 4 of these researchers have subsequently secured federal funding. Enhancement of review process recently implemented to increase this success rate. Pilot Funding Grant Program Recently created to fund preliminary data collection for proposal development First round of application due September 2012

Technology, Commercialization, and Knowledge Transfer Great economies are built around great universities, which attract: Capital Industry Funding Entrepreneurs Excellent Faculty Great Minds

The Transformative Opportunity Universities become the drivers Almost 85% of capital and companies stay within 50 miles of universities Top 25 Large Metros: Forbes Best Places 2011

The Transformative Opportunity So why do so many universities fail? Less than 7% make over $20 million What will it take to make OSU a driver? Why universities fail? What’s broken? Risk Averse Don’t invest in early innovation – invest in “sure things” Lonely – they don’t engage; they pick

Cradle-to-Grave Manager for OSU Inventions The Technology Commercialization Office (TCO) at Ohio State supports all phases of university technology commercialization and start-up development. The Technology Commercialization Office functions as a “cradle to grave” manager for OSU inventions. We are responsible for handling all patent and licensing activities and distribution of royalties and payments received related to industrial partnerships. Upon disclosure of a technology to our office, we assess its patentability and commercial potential by evaluating the technology from a business perspective, looking at the prior literature to determine if patent rights exist, and performing a preliminary search for potential commercial partners. We are responsible for working with patent counsel for all the filings and prosecution of the patent application. We market the invention, seeking industrial partners for further development and commercialization of the technology. This may be in the form of an outright license, sponsored research agreement, or in some cases, formation of a spin-off company. TCO Mission To foster an entrepreneurial culture, university-wide catalyze faculty, staff, and student inventions; to maximize the value of Ohio State developments; to accelerate transition of new developments into products, services, and new or expanded jobs Our Service Offerings to OSU Inventors and Entrepreneurs Cultivate partnerships and inventions CDAs and MTAs — guidance, negotiation, and execution Consulting arrangements — guidance and language assistance Corporate Sponsored Research — intellectual property and structure advice Invention capture and refinement — training and facilitation Establish and protect market differentiation Value propositions — cultivate and articulate Intellectual property positions — guide and develop Financial models — commission or complete Market research — commission or conduct Establish commercialization pathways Marketing — develop strategies and collateral Partners — identify and qualify Licenses — develop and negotiate Deals — nurture, finalize and monitor Secure revenue streams to inventors, university, colleges, and departments

TCO: Changing Our Industry Partnerships INSIGHT Research/IP Protection Industry Prototype Launch/ Customers Idea Lab Prototype Beta Growth Changing the interactions with industry allows you to create value beyond contract services and increase revenue, F&A, and joint IP – Intellectual Property – for long-term royalties, but you need support from senior leadership and a strict adherence to research, not Work for Hire. Market Directed Research Product Development Basic Research Applied Research Companies Ideation $$ Students Researchers

New Partnerships Identify strategic partners who can: Enhance research Accelerate product development Increase impact Increase return on investment Identify strategic partners who can:

New Partnerships OSU-Battelle Innovation Center is a unique public/private partnership built to: Attract outside capital for R&D Invest in and commercialize technology breakthroughs Educate and train the next generation of entrepreneurs and translational scientists Set a standard in commercialization leadership Expedite product development and prototyping The John Glenn School of Public Affairs, The Ohio State University, and Battelle Memorial Institute are partnering to create the Battelle Center for Science & Technology Policy. A new policy center that will foster innovation in science and technology by linking groundbreaking research at Ohio State and Battelle, connecting both public and private sectors with new discoveries and providing science and technology information to policymakers at all levels of government.

Supporting Structures The Ohio State Innovation Foundation (OSIF) provides OSU with a structure for: Investment in its most promising technologies and start-ups Fund-raising and Education endowments Partnerships to create and manage equity investments Greater responsiveness and flexibility Increased security for corporate partners Under the new Ohio State Innovation Foundation (OSIF), the university will begin to invest in start-up companies and invest $20 million in funding and facilities to kickstart entrepreneurial activity and venture generation in Ohio. The overall goal of the OSIF is to create a platform that can support the commercial efforts of OSU’s tech transfer office, enabling the university to accept equity as compensation for licensing its technology.

Faculty Innovation Scorecard   2012 2013 2014 Total Number of Patents Number of Patents Issued in the Last Five Years Number of Full Patent Applications Filled Number of Start-Ups Number of Licenses to Industry Number of Licenses for Tangible Property Number of Licenses for Software Number of MTAs on File Number of Start-Ups that have Received SBIR/STTR Funding Amount of SBIR/STR Funding Received Number of Start-Ups that have Received VC/Angel Funding Amount of VC/Angel Funding Number of Industry Sponsored Projects Monetary Amount of Industry Sponsored Projects Number of Projects with Clinicians with Governmental Funding Monetary Amount Received from Government for Projects with Clinicians The use of a faculty scorecard to promote clear commercialization metrics can be used for P&T and helps promote industry relations and sponsored-research tracking.

Challenges and Opportunities Federal budget Federal regulations State budget Faculty retirements Change in focus of Ohio Third Frontier program Opportunities Collaboration (big projects) across colleges Industry downsizing in-house R&D Medical Center expansion and Nationwide Children's expansion Creation of office to pursue large grant opportunities Innovation opportunities with Battelle

Questions and Discussion Thank you.