PublicPrivate Partnerships for Research An Industry Perspective Michael
Public/Private Partnerships for Research – An Industry Perspective Michael Idelchik Vice President, Advanced Technology Programs GE Global Research
Global Research: Market-focused R&D • First US industrial lab • Began 1900 in Schenectady, NY c. 1900 • Founding principle … improve businesses through technology • One of the world’s most diversified industrial labs 2007 Cornerstone of GE’s commitment to technology 2
Global brains Global Research Center Niskayuna, NY John F. Welch Technology Center Bangalore, India China Technology Center Shanghai, China Global Research – Europe Munich, Germany • ~3, 000 research employees (~1, 000 Ph. Ds) • 27, 000 GE technologists worldwide • $5. 7 billion technology spend 3
World-class technical talent Electrical Engs Physicists Biologists Sustainable Energy Material Biomimetics Scientists Advanced Propulsion Computer Scientists Innovation Mechanical Engs Chem/bio Detection Molecular Imaging Nanotechnology Mathematicians Chemists Innovation occurs at the intersection of disciplines 4
Role of Global Research Delivering core technologies for New Products Discovering New Technology-Based opportunities Establishing foothold in Emerging Technologies Spreading technology across businesses Developing World-Class Technical Talent Connecting with the World’s Technology Opportunities for GE/University Collaborations 5
We can’t invent everything ourselves GE Partners Governments Customers Universities Business State of Bavaria 6
Underleveraged Opportunity Despite positives for GE, • Tap into faculty and student creativity • Leverage academic facilities • Gives GE a good look at prospective hires And positives for Universities… • Research funding source • Staff and students working on real world problems, insight into market needs • Gives students a good look at GE • Path for technology transfer …<1% of GE R&D at U. S. Universities 7
GE indicative of a trend ($B) 200 1. 5% % Industry Funding of US Academic R&D 1. 4% 150 1. 3% 100 1. 2% 50 0 Industrial R&D Spending ‘ 94 ‘ 96 ‘ 98 ‘ 00 1. 1% ‘ 02 ‘ 04 1. 0% US industry spent $188 billion on R&D in 2004 Only $2. 1 billion to U. S. academia While percentage is declining… lowest level since the mid-80 s. Source: NSF 8
IP -- Industry & US Academia at odds 60% AUTM US University Licensing FY 05 Survey • Total Licensing Income ~$1. 6 B … • …but just $0. 2 B for 80% of Schools % Schools 50% 40% 30% • Negotiation of research agreements have become increasingly difficult • Industry researchers have no personal financial stake in IP 20% 10% 0 • Most universities struggle to cover licensing expenses • Concerns about academic freedom and openness 1% 3% 5% 7% 9% >10% Licensing Income % Total Research Expenditures Opportunities with Industry far exceed those in licensing 9
Global Options Stan Williams, HP Corporation, testimony to Congress, Sept 17, 2002: “US-based corporations have become so disheartened and disgusted with the situation [i. e. , negotiating IP rights with US universities] they are now working with foreign universities, especially the elite institutions in France, Russia and China, which are more than willing to offer extremely favorable intellectual property terms. ” 10
U. S. Industry/University research partnerships – negotiating factors The stakes… Industry Universities Intellectual Property (IP) Competitive rights, Manage filing costs Title, industry covers filing costs, royalties Publishing Rights Protect proprietary information Access to proprietary Information, with rights to publish Funding Year-by-year, in-line with business strategy Multi-year commitment Government Policies Amend Bayh/Dole, tax-exempt bond regs Leverage Bayh/Dole, tax-exempt bond regs Reaching consensus requires more flexibility in U. S. law 11
GE Aviation USA Program Strategic alliance agreement with multiple universities on key research projects… terms balance industry & university needs Industry Universities Ë GE gets exclusive right, royalty free license to use IP in fields of use Ë Ownership follows inventorship Ë University research roadmap aligned with business strategy Ë Provide academia with “real world” technology experience Ë Rolling, multi-year contract with university resource commitment Ë Longer-term revenue stream Ë GE review + approval of publications Ë University rights to publish A model for Industry/University partnerships 12
What U. S. government can do Reform Bayh-Dole Act… flexibility on IP ownership rights Reform tax-exempt bonding policies… flexibility on utilization of university resources funded by tax-exempt bonds Better balance between Basic and Long-Term, Applied research Create mechanism to attract and retain foreign intellectual talent in the U. S once they graduate Flexibility in the law will assure long-term, U. S. R+D leadership position 13
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