Research universities such as Penn have been the source of some of the most-important discoveries of the 20th century. Fundamental knowledge gained and scientific breakthroughs made at universities--as well as products and processes derived from these discoveries and commercialized by the private sector--have contributed substantially to the public benefit. Academic-research results transferred to industry have spawned new industries, improved competitiveness of established companies and been the foundation for the creation of more than 1,000 new companies in the United States. (See sidebar below.)
Notable discoveries developed, protected and licensed by universities include the atomic-force microscope; cisplatin and carboplatin cancer-treating agents; facsimile technology; haemophilus b conjugate vaccine; hepatitis-B vaccine and related gene-expression technologies; introduction of DNA into eukaryotic cells; recombinant DNA technology; retin-a; taxol; and vitamin-D derivatives.
Technology transfer--moving ideas from the laboratory to the marketplace--has become an important mandate imposed by Congress on universities in return for continued investment of federal dollars. The change in leadership of Penn's Center for Technology Transfer (CTT) in September 1995 prompted a review of all aspects of the University's technology-transfer program, including a comparative analysis of such programs at peer institutions.
"When we compared academic inputs and efficiency outputs, we determined that as a center we were not as productive as our peers," said Louis Berneman, new managing director of CTT.
The comparative analyses resulted in the re-engineering of the center and its ongoing reorganization. When the reorganization is completed this spring, "CTT will be a smaller, professionally based organization of highly skilled, competent, motivated people providing improved client services to faculty and industry with higher productivity and efficiency," Berneman said.
The new CTT will exploit an important characteristic of Penn--its willingness and ability to unite theory and practice in the application of theoretical knowledge to real-life problems. The center has set new and ambitious goals for itself that go beyond simply marketing and licensing the research results to industry. Berneman wants to leverage new discoveries to obtain sponsored research support by forging links with industry, in the short term, and participation in future revenues from the commercialization of research results, in the long term.
Berneman's message to faculty is simple: "Disclose early and often. By protecting the intellectual property rights of the University's $300 million annual research enterprise, we can promote these research results to industry to obtain research funding and future revenues."
As President Rodin has said: "You can be certain that if ENIAC were invented at Penn today, the University would hold the rights."
The restructured CTT will have the expertise to meet the needs of the changing technology-transfer marketplace. To improve productivity and efficiency, the traditional approach of having individual technology managers handle cases from "cradle to grave" has been abandoned in favor of a new team approach. As a result, several positions have been eliminated, and the resources captured from the restructuring are being used to upgrade certain key positions. Recruitment efforts for senior positions are now underway.
As both a way to reinforce CTT's connection to the educational mission of the University and increase efficiency, undergraduate students have been employed to provide clerical and administrative services, and graduate/professional students have been employed as associates (interns) to provide project assistance. "Imagine how valuable this experience will be for students," Berneman said.
"Patience will be required to implement this new strategy and to achieve our objectives," he added. "For many discoveries, it can take eight to 10 years from the time a research discovery is protected until it enters the marketplace."
Berneman strongly believes that the changes that CTT is now making will provide new resources to support the University's teaching, research and service missions. "We want to be better stewards of the intellectual and financial assets of the University," he said. "We aim to be among the best university technology-transfer programs in the country. We will commercialize the intellectual property assets of the University for the public good; protect them cost effectively; increase industry research support; improve communication with faculty; promote economic growth; and enhance the reputation of the University."
--Carl Maugeri
By nearly all measures, Neose Pharmaceuticals has a bright and lucrative future. The Horsham-based firm employs about 40 people, and when its stock went public on Feb. 16, the company raised more than $32 million.
The firm was started by Steve Roth, the chair of Penn's biology department in the 1980s. While at Penn, Roth developed an enzyme-isolation technology to synthesize natural complex carbohydrates. Working through Penn's Center for Technology Transfer (CTT), Roth patented his discovery.
Pharmaceutical companies judged the technology to be too embryonic for licensing, but, not to be discouraged, Roth and CTT determined that licensing the technology to a start-up company was the best mode of commercialization. In 1990, Neose was formed and licensed the technology, becoming the first start-up company in which Penn took an equity position.
In many ways Neose is a symbol of the power of the CTT to build on faculty innovation for the public good. It is also a story with many winners: The company's success will mean more revenue returning to the University that will be available for new research projects; the regional economy benefits by having a job-creating, tax-generating company; and taxpayers who invested in basic research through the federal government now have new products available to fight stomach ulcers, hospital-contracted pneumonia, bronchitis and ear infections.
Return to Compass Features for April 2, 1996