Technology Transfer at MIT. I October 2009 Kenneth A. Goldman Manager, Corporate Relations MIT Industrial Liaison Program Copyright MIT 2009

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1 Technology Transfer at MIT I October 2009 Kenneth A. Goldman Manager, Corporate Relations MIT Industrial Liaison Program

2 MIT: Education and Research Private institution founded in 1861 Education 10,200+ students (6000+ graduates, undergraduates) 5 schools (Engineering, Science, Management, Architecture & Planning, Humanities, Arts & Social Sciences) 24 academic departments, 1000 professors 73 Nobel Prizes, past and present (7 current faculty) Research 2800 full-time researchers, administrative staff 90+ labs, centers & programs, all fields of science/technology FY 2008 research budget $1.3 billion MIT Campus - $643 million/year in research (Industry $82.2M-13%) Lincoln Lab - additional 676 million/year - 99% federal government supported

3 MIT s Mission: Technology Transfer and Impact MIT s founding charter (1861) aiding the advancement, development and practical application of science in connection with commerce Commercial impact Global: 25,800 companies founded by MIT alumni employ 3.3million with annual world sales US$2 trillion, the world s 11th largest economy (Source: Kauffman Foundation Study 2009) Local: Economic Engine for Boston/ New England

4 Support for Technology Transfer at MIT MIT s founding charter (1861) aiding the advancement, development and practical application of science in connection with commerce Supported by the Bayh-Dole Act of 1980 Technology Licensing Office: most important agent of technology transfer: results of research transformed into new products and into the economic development of our community

5 Bayh-Dole Act of 1980: ROI Government investment in basic research Universities innovate and create new IP Private industry then invests in licenses Inventions/Discoveries developed into products Creation of new jobs, companies, industries, wealth Return to government in form of taxes Return to society in new jobs, products

6 Virtuous Circle of Innovation & Research IP, Commercialization Novelty Virtuous Cycle Utility Universities Corporate R&D National Labs Source: T. Magnanti, MIT Societal Needs Public & Private Enterprises Karl F. Koster - MIT Office of Corporate Relations

7 MIT: Unique Success Factors Boston/Cambridge Ecosystem Past: Route 128, Hi-Technology Highway Present: Biotechnology hub Center of universities, hospitals, finance MIT Ecosystem of centers, programs and networks Entrepreneurship Center Enterprise Forum Venture Mentoring Service Deshpande Center 100K Competition Venture Capital and Private Equity Club, Science and Engineering Business Club, Technology Club, other student/alumni groups

8

9 MIT Technology Licensing Office MIT owns patents on all research done at MIT Sponsor can use patents from research royaltyfree for non-exclusive use Sponsor has first option to royalty-bearing exclusive license, negotiated with the TLO TLO can negotiate exclusive licenses Royalties Fees

10 TLO: Ten Steps to Commercialization Research Pre-disclosure (guidance, conversation) Disclosure (formal written registration) Assessment Protection Marketing to find or form a licensee Existing or start-up business Licensing Commercialization Revenue

11 TLO: Terms for Exclusive Licenses Variable, depending on nature of patent, product and market Typical royalty ranges: License Fee: $25K $100K Annual Fee (applicable against running royalties): $15K - $50K Running royalties: 1% - 5% Exclusive licensee covers patent cost Royalties shared with inventors (both faculty and students), lab/ center, and Institute Per Bayh-Dole Act (1980) - all for reinvestment

12 Effectiveness of TLO FY Vibrant patenting/licensing activity, despite the downturn new invention disclosures , , patents issued , , , 85 licenses granted (not including trademarks) new licenses , , (over 800+ active licenses) start-up companies , , Total cash income (royalties + patent reimbursement + equity cash-in) $68.8M, $89.1M, $75.7M Patent expenditures $12.8M, $14.9M, $16.0 M

13 What is the Industrial Liaison Program? COMPANY Company ILP ILP The ILP is industry s chief gateway and guide to MIT. Create and support industry - MIT partnerships through facilitated interactions Expert staff assess strategic research needs and plan interactions Companies gain competitive knowledge, MIT gains research partners ILP supports technology transfer process

14 New ILP Offering: Regional Competitiveness Program Goal: Help regional economic development agencies learn to replicate the MIT/Boston- Cambridge innovation ecosystem through exclusive workshops First workshop at MIT 18/19 November 2009, following the MIT ILP Research & Development Conference We invite regional economic development agencies to participate!

15 Thank you Kenneth A. Goldman, PhD Manager, Corporate Relations MIT Office of Corporate Relations/ Industrial Liaison Program 600 Memorial Drive, W Cambridge, MA USA

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