the March 24 Council meeting, Bonnie Gibson gave an extended
report on the University's budget (see Almanac March 30, 2004 available online), and Vice Provost for Strategic
Initiatives Les Hudson gave a presentation (see below).
and Security Committee's interim report indicated that
they are exploring issues such as lighting, safety in parking
lots, diversity, safety of women on campus, international
students' concerns, traffic safety and bicycle safety.
Judith Rodin spoke about Penn's new urban research institute
(Almanac March 30) that is sponsoring a symposium
on April 14. Dr. Rodin and the institute's co-chairs will
be in Washington, D.C. for congressional briefings later
this month. The institute will provide an umbrella for
the many Penn/West Philadelphia initiatives and aspirations
yet to be fulfilled." The Urban Agenda is one of the five
new academic priorities, along with The Arts (Almanac September 23, 2003).
March 24 was the second annual Arts Day at Penn (Almanac March 16, 2004).
Beck, vice president for ISC, gave a presentation on campus-wide
electronic mailings and explained that there are more than
30,000 e-mail users at Penn. She said that there are two
different services offered by ISC for large mailings. Those
who send campus-wide mailings to predetermined lists such
as all faculty and staff are charged $250 to cover costs
to send the e-mail in stages to the different servers on
campus, often overnight. However, those who set up e-mail
lists that are hosted on ISC servers are charged a $30
one-time fee and an annual $40 fee.
then presented a resolution, and seconded by PPSA, on
e-mail access for Council constituencies to have a fee
waiver or the allocation of sufficient funding to e-mail
their members, ie., GAPSA, UA, PPSA, WPSA and the faculty.
It received widespread approval from Council.
on the PennPass Program was also presented by GAPSA, and
seconded by the UA, to make SEPTA passes more cost-effective,
more flexible and more widely used by Penn students, faculty
and staff. It received nearly unanimous approval.
students from The Ivy Council--an organization of student
representatives from the Ivy League holds an annual Ivy
Leadership Summit--explained their need for support from
the administration for their endeavors. VPUL Val Cade then
volunteered to work with the UA to assist them and Senate
Chair Lance Donaldson-Evans offered the expertise of the
Faculty Senate leadership.
to Council on Strategic Initiatives, Dr.
Leslie Hudson, vice provost for Strategic Initiatives
Transcribed and condensed
from Dr. Hudson's
oral presentation to the council
new Office of Strategic Initiatives is part of the expanded
role of the provost's office and brings together functions
that existed but had never been operated in an integrated
way. The responsibilities include managing technology commercialization
and providing economic leadership. Penn has not held itself
separate from its surrounding community and the southeast
corner of Pennsylvania has gained a great deal from the
presence of Penn.
in a sense, in this new decade we are going into with a
new president coming we'll actually have an enviable position
to be able to leverage the tremendous advances and indeed
the models that were built from the previous presidency
in how a university can engage with the community for the
betterment of both.
refine and improve ongoing operations, to help revenue
sources to contribute to our core mission--that of scholarship
in teaching and research is the driver that is important.
This is not an office which is there simply to drive revenue,
it's to drive revenue with a purpose related to our core
gifts will continue to be an extremely important means
by which Penn will be able to grow its core mission but
commercialization of it's intellectual property generated
from federally-funded research grants and to increase access
to industrial partnership is one major area where we can
grow revenue and engage in research scholarship and training
of a type that we have not really plumed as deeply as we
will going forward.
IBM company is extremely interested in trying to investigate
new types of relationships with universities like ours
at a time in American history when we are starting to transform
many of our technology-based industries in a way which
probably 20 years ago would have been impossible to predict.
IBM at that stage and for the following 10 years made and
sold computers. Now IBM is a major life sciences research-based
company and it sells consulting services. Something that's
becoming hugely important for the country going forward.
manufacturing industries now are being off-shored at increasing
rates. We are seeing a tipping point of the change of the
basis of American competitiveness. I should note that in
spite of my accent, my passport, indeed my choice of citizenship
is American so I'm very much in this with you.
research investment has really been stellar and it's been
a sustained investment. Looking at today compared with
where we were last year, the federally-funded research
grants were about 97% of all our funded grants. We are
within 3% of where we were last year so we're going to
continue to be receiving grants up to and probably in excess
of $700 million. On an annual basis we actually invest
$400 million a year in our in-house research enterprise.
is a major engine that generates intellectual property.
The intellectual property is largely marked by medical
inventions and this is an area which because of the preeminence
of our medical school and also because we have under the
same management structure our health system, we are very
well positioned to be able to continue that growth and
advance. Engineering and nanotechnology and are starting
to become increasingly important.
transfer occurs through the Center for Technology Transfer.
In that office they are responsible for the commercialization
of Penn's technology and they control the capital and revenue
funds that are responsible for that.
for corporate alliances, one very new and exciting development
was the decision by GlaxoSmithKline to put a drug discovery
unit on site. That was extremely important and is deeply
integrated into our research scholarship. It's an important
interface because we are seeking to decode the human genome
and many of the partners that we will have are non-traditional
informatics companies like IBM, drug companies like GSK
and many biotech companies.
terms of the economic development capital we've seen
new sources of funding grow our research base within
the state. There
was a very innovative, appropriate use of the tobacco settlement
money through BioAdvance which was money given to initiate
primary research and to commercialize technology out of
universities like our own.
have a total expense base over that 18-month period of
$7.5 million but it's driving a capital and revenue stream
of $94 million. This is an area where we believe there
will be opportunity for future growth given some of the
changes that are happening. This is a very important, critical
gap which is actually opening up in universities in the
U.S. and it's between the producers of technologies and
intellectual property, like ourselves, and the people who
traditionally facilitate the commercialization, the venture
capital funds and other sources of investment capital ultimately
to take that intellectual property into product where companies
like, GSK or Lockheed Martin would actually buy them.
has become such a problem that the federal-funding has
funded to the point where basic research stops and patent
protection begins. There's now an increasing void to sources
of investment capital to take the products of our research
into commercialization. This is something which the University
is working on with the National Council on Competitiveness,
one of the members of which is the State Department, to
prepare a position statement and advice for the next administration
in November. Penn is looking at this idea of a university
putting together a translational research fund which will
help to start driving some of our research closer towards
more effective commercialization. This should be a self-sustaining
loop which will drive excess revenue back into our core
alluded to the transforming a relationship with a company
IBM; we've actually had about a 20-year relationship with
IBM. They've been a very major donor to the University,
donating more than $20 million in gifts. The University
has been a major source of recruiting for them. One of
the things they're seeking is a relationship with us that
would leverage buying power of the University and the health
system. What we're looking at here is collaboration with
them around life science research, around grid computing,
and e-learning and major gifts. But if you like a non-traditional
relationship where the health system and the University's
buying power in laptops and also in desktops could well
bring Penn a preferred provider relationship with IBM whereby
we would get a highly competitive price on high- and low-end
laptops and desktops. Not that this would actually be something
that we would have to buy, but it would be something which
we could have access to both as staff, students, faculty,
very different, but equally important thing which has
is the passage of new legislation through Harrisburg in
the creation of Keystone Innovation Zones. These
are zones which Ed Rendell, with the president's help,
identified as one of the key success factors in the future
growth of wealth in Pennsylvania, and literally it's to
unlock the intellectual property and commercialization
potential of the patents and the expertise within the University.
The new legislation was signed into law about a few weeks
ago. It could create a zone immediately adjacent to the
universities. In our case we've started discussion with
Drexel, clearly two universities, one shared campus, good
complementarity, and on their part and our part very high
interest in partnering this way. BioAdvance, the Science
Center, Innovation Philadelphia are also partners as well
as the Ben Franklin Technology Partners who are clearly
interested because they basically are part of our region
in trying to drive this opportunity. It brings important
tax advantages as a 15-year abatement where if one is a
company that has no revenue and therefore you don't pay
tax, then you can trade your tax abatement with a
company that does have revenue and so from that point of
view it can become a very important way of getting a revenue
support for a new struggling company. It gives us
an opportunity for serious outreach and marketing to both
commercial and industrial sectors. The reason that's important
is that if you look at where these zones are likely to
be, you see the Penn and Drexel campuses, you see where
the Science Center is 2,250,00 square feet of research,
laboratory and office space, the translational research
building that was the Eastern Apparatus building which
Penn is actually converting for translational research
will be ready early fall. The Post Office Lands, as you
know we have an option to purchase that and will be moving
on that towards 2007. The Civic Center already is within
our holdings and work is already ongoing. So this is not
to create a zone of innovational commercialization which
will invade our campus. Its virtue rather is to create
a zone of future partners for us as we actually engage
in our core mission both of teaching and scholarship and