1. www.uottawa.ca Innovation in Universities and the Drive towards Commercialization Gilles G. Patry – Rector and Vice-Chancellor – April 27, 2004

2. 2 Outline 1.Introduction 2.Context 3.University and Commercialization 4.Potential Barriers and Opportunities 5.Recent initiatives at U of O 6.Conclusions

3. 3 The Responsive University To survive and thrive, colleges and universities will have to be responsive. Responsiveness is in the eyes of those being served: Students Parents Governments Businesses non-profit organizations. Each of these publics will judge the university in terms of the quality of their relationships with the university, and the quality of the outcomes of those relationships.”

4. 4 Innovation Strategy Goals of the 2002 Federal Innovation Strategy rank among the top five countries in the world in R&D performance (we currently rank 14th) at least double the Governments current investments in R&D rank among the world leaders in the share of private sector sales attributable to innovations raise venture capital investments per capita to prevailing US levels.

5. 5 Research and Innovation – Budget 2004 $90 million annually to the budgets of Canada’s three federal granting councils $20 million a year to help Canada’s universities and research hospitals offset the indirect costs of research $60 million to Genome Canada to strengthen research in genomics

6. 6 Commercialization of Research $50 million over five years to improve the capacity for commercialization at universities, hospitals and other research facilities $25 million over five years to support proposals by federal science-based departments and agencies aimed at improving their research commercialization activities $5 million per year to IRAP to strengthen its support for the regional innovation initiatives sponsored by NRC

7. 7 Universities and Commercialization “Universities are starting to learn … (some universities have) set-up commercialization (units) in their universities through technology transfer officers.” “… we need to create partnerships to allow them to commercialize. …” “… I think it’s going to take a three-way partnership: the private sector, the academic community, and the government, all working together to create the economy that we want.” The Hill Times – Monday, February 16, 2004 The Hon. Joe Fontana – Parliamentary Secretary for Science and Small Business

8. 8 Universities and Commercialization “The key drivers of prosperity in a knowledge- driven economy are factors which contribute to innovation such as Federal R&D expenditures, the production of R&D personnel, … … the government-university partnerships are not simply about the procurement of research results. It is about nurturing and maintaining the human strengths of a great technological nation and sowing the seeds that will ultimately bear fruit in new products and processes to fuel our economy and improve our quality of life.” James J. Duderstadt (2003) former President of the University of Michigan

9. www.uottawa.ca Universities and Commercialization

10. 10 Universities and Commercialization Concept extends beyond science, technology and health (NSERC, CIHR) Social Sciences and Humanities Research Council [1] Consultation Framework where one reads … “A new university landscape. [Universities]cannot be ivory towers, disengaged from their community or the knowledge economy. They are called to be at the heart of both.” On the new research environment, the document states “A new collective culture of “research entrepreneurship” is emerging as an important dimension of research activity in Canada.” [1][1] Social Sciences and Humanities Research Council (SSHRC). “From Granting Council to Knowledge Council”, Volume 1. Consultation Framework on SSHRC’s Transformation. January 2004

11. 11 The Pillars of the University Mission LearningDiscoveryEngagement

12. 12 Learning and Innovation Entrepreneurship concepts transpire across our curricula – fine arts, engineering, law, science and health Innovative teaching methods and curricula are also the object of commercialization

13. 13 Engagement Universities are key economic and cultural engines of our communities (UofO economic impact in excess of $1.6 billion) Commercialization key element of the economic benefits to the community

14. 14 Discovery Curiosity driven research is critically important raison d’être of universities – basis upon which future commercialization opportunities rest Commercialization potential of curiosity driven research discoveries Commercialization in Canadian universities is at its infancy wrt to US universities

15. 15 Licensing Income/Research Expenditures US Universities

16. 16 Licensing Income/Research Expenditures Canadian Universities

17. www.uottawa.ca Potential Barriers and Opportunities to Commercialization

18. 18 Barriers to Commercialization (1) Commercialization will detract from the core mission of the university (learning, discovery and engagement) A focus on commercialization will undermine and diminish the importance of basic research As publicly-funded institutions (at least in part), universities should not compete with the private sector in bringing ideas to market

19. 19 Barriers to Commercialization (2) As publicly-funded institutions, universities and faculty members should not profit from discoveries Graduate students and faculty members will be taken advantage of in the process.

20. 20 Barriers to Commercialization (3) Commercialization inevitably brings in partnerships with the corporate sector and corporate science corrupts (Ralph Nader) On universities and corporations working together – Feb. 23, 2004 – University of Ottawa[1] … “The purpose of universities dedicated to truth becomes undermined. [Corporate and academic sciences] are not compatible. Corporate science is secretive due to more propaganda [and] power from the government. Academic science is open, part of the common, [and] tends to address the needs of the people”[1] [1] Ralph Nader. “The Scholar and the State.” GSAED Multidisciplinary Conference. University of Ottawa February 20, 2004.

21. 21 The Way Ahead Be Strategic Align the commercialization strategy with the strategic areas of development Provide support and resources to researchers Bring people together – multi-disciplinary Recognize and reward the contributions of faculty to innovation Partnership: A Key to Success

22. www.uottawa.ca Commercialization at the University of Ottawa

23. 23 The University of Ottawa Technology Transfer and Business Enterprise Office (TTBE) Strategic Focus Research Cluster Communication Strategy Policy Review Recognize the Contributions of Faculty Entrepreneurship Centre

24. 24 Conclusions Universities are not Development enterprises Critical that we harness the benefits of university-based discoveries – potential returns are important A three-way partnership involving Government – Private Sector – Universities where all are rewarded for their contributions Special thanks to Dr. Jean Farrall and Mr. Sean Flanigan of TTBE for their assistance

25. 25 Acknowledgements

26. 26 Canada’s Place in Intensity of Research (OECD, 1996) 3,7 3,01 2,89 2,73 2,61 2,55 2,31 2,18 2,04 1,95 1,93 1,84 1,83 1,66 1,62 Suède* Japon Finlande Suisse** É.-U. Corée Allemagne France OCDE Islande Pays-Bas Danemark Belgique R.-U. Norvège* CANADA 012345 Percentage of GDP 15 5 5 *1997 **1996 Industry Canada, 2001 2. Innovation Strategy

27. www.uottawa.ca Commercialization of University Research

28. 28 Evolving Role of Universities Universities have added to their mission Advancement of knowledge and education of a skilled labour force Actively engaging in commercialization activities  university-industry partnerships 3. Commercialization Univ. Research

29. 29 A Focus on Economic Growth Universities Creation of New Knowledge Economic Growth Need to stimulate the creation of knowledge as well as the diffusion and adoption of new technologies. Need to bridge the innovation gap relative to other major industrialized countries. (OECD, 1996) 3. Commercialization Univ. Research

30. 30 Innovation Gap Lower overall rate of adoption of high technology vs. low technology in the production of goods and services Small and medium-sized enterprises understaffed in terms of professional engineers and technologists compared to other OECD countries Lower national effort in R&D Smaller number of researchers per capita Smaller number of inventions per capita (x10) Lack of entrepreneurship focus in engineering curricula Financial community less prone to investing in technological innovation 3. Commercialization Univ. Research

31. 31 The Way Ahead Reinforce the research capacity of universities and government labs Accelerate the commercialization of new knowledge Need of a global science and engineering strategy 3. Commercialization Univ. Research

32. 32 University Technology Transfer Process University Research Publication of Results Transferred to Company Invention Disclosure Initial Technology Assessment Further Research Returned to Inventor 3 rd Party Commercialization Prototype Development Commercialization Process Licensing Options 3. Commercialization Univ. Research

33. 33 University Technology Transfer Process Licensing Options Spin-Off Company Direct Licensing To an Existing Co. Direct Licensing To Spin-Off Co. 3. Commercialization Univ. Research