A study by the Washington, DC-based Biotechnology Industry Organization (BIO) provides first-of-its-kind data on the value of university/industry research and development partnerships to the U.S. economy. “The Economic Impact of Licensed Commercialized Inventions Originating in University Research, 1996-2007″ shows an $82 billion dollar impact on the U.S. gross domestic product and a $196 billion addition to gross industrial output, using conservative models. “It has long been believed that the Bayh-Dole Act, which permits and encourages industry to partner with research universities to turn federally funded basic research into new and valuable products, is a critical factor in driving America’s innovation economy,” says Jim Greenwood, president and CEO of BIO. “This new study provides the evidence to back up that belief.”

During the 12-year study period, university-licensed products commercialized by industry created at least 279,000 jobs across the U.S. The annual change in U.S. gross domestic product due to university-licensed products grew each year. The study, funded by BIO and directed by David Roessner, professor of public policy emeritus at the Georgia Institute of Technology, assesses the economic impact of university licensing solely based on royalty data. It does not attempt to value other economic contributions of university-based research. Thus, the estimates are considered to be conservative. “We cannot take tech transfer, or the U.S. patent system upon which it is based, for granted — particularly in the current economy,” Greenwood says.

BIO also released a survey of member companies indicating that university-based tech transfer spurs the creation of many biotech companies and the growth of industry jobs. Half of surveyed companies were founded on the basis of obtaining an in-license agreement, resulting in significant job creation, according to “Technology Transfer and the Biotechnology Industry.” Survey responses demonstrate that flexible licensing practices, including the ability to obtain exclusive licenses where necessary, represent a critical component of successful tech transfer and product commercialization.

Source: Reuters

Posted November 4th, 2009 under Tech Transfer

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