Realizing an Impact from the Development of Technology The Student /Innovators Burden

1. Realizing an Impact from the Development of TechnologyThe Student /Innovators Burden National Conference on Graduate Student Leadership : St. Louis : 10/11/03 R. Scott Evans Department of Mechanical Engineering

2. Technology has NO intrinsic value. But, wait… I’m an engineer and I’m supposed to create new technology!

3. Is THIS a problem? The Big U Society Tech. Development Education The needs, the value, the IMPACT What does education cover? Who & what will bridge the gap?

4. From Laboratory to Market… • Where are the ties to the community? • Where are the educational opportunities? • Where are the students? Commercialization Evaluation Innovators University Admin. & Support Society I’ve seen innovators who have realized an impact,where’s that here?

5. A Commercialization Community Technology      Commercial & Entrepreneurial      Commercialization & Creation Evaluation Entrepreneurship Ready to License Incubate Austin Technology Incubator Communications Ready to License Natural Sciences Commercial Potential Evaluation OTC IC2 Pharmacy Business School Engineering Additional Research School of Law Others Office of Sponsored Projects Process Facilitated by Cross Discipline Education with focuses in Commercial Evaluation, Entrepreneurship, Technology Transfer. The University of Texas at Austin

6. The Educational Model (at UT) Idea to Product Competition Moot Corp Student Orgs. Innovators Commercial ization Evaluation Sponsors University Admin. & Support Cross-Disc. Courses & Sems Entrepreneurs In Residence Tech. Forums Now the students themselves can connect technology to societal need.

7. Students started I2P and now… “The process of technology commercialization supports the education, research, and public service missions that we have as a University.” - Larry Faulkner President The University of Texas at Austin

8. Discussion Points • What should education include? • What structures should exist? • What obligation do innovators (esp. students) have in realizing an impact? • Do Students have an obligation to learn about the connections between technology innovation and societal impact? Thank You, Donnie.

9. A Commercialization Story Students as a Transfer Vehicle • 3D Printing of SiC MMC’s • Ongoing Research (w/ many applications) • Funding Requirements and Deadlines • Student Led Teams • Classroom Evaluation of Technology • Technology Competitions • Leadership in New Venture Creation • Participation in Startup • ALC, LLC. License from UT The University of Texas at Austin

10. Classwork and Competition ME 397 – Enterprise of Technology • Cross-disciplinary course in technology commercialization • Student teams evaluate the commercial potential of real technologies • Examples: Rat Contraceptives, Active Suspension Systems, Drug Delivery, Material Systems Idea to Product Competition • 3rd year of competition • 74 teams participating • Examines a technology with the intent of identifying a product and associated market

11. The Result • Student produced technology evaluation • Additional grant funding from NCIIA • Location of interested industrial partners • Formation of a company • Sponsoring of ongoing research • Inventor stake in company • Student participation as researchers and company officers The University of Texas at Austin

12. The Commercialization Pipeline

13. The Jolly Model • (1) Imagine Envisioning an idea for a new technology and developing an understanding of market needs. • (3) Incubate Define the commercial potential of the new technology idea. Refining the technology idea into a realizable commercial venture. • (5) Demonstrate Developing the incubated technology into a product or process to be demonstrated in the context of the markets to be explored. • (7) Promote Moving the demonstrated product or service into the marketplace for adoption by customers. Getting your first customer. • (9) Sustain Growing the customer base of the product as production or offerings expand. Developing the product further to meet changing market needs.

14. INTERESTING FACTS UT-Austin Campus Largest single-campus institution in the nation • research-intensive science & engineering institution • annual enrollment of 50,000+ students • 25% of students enrolled in graduate and professional programs • awards the greatest number of doctorate degrees of any university in the nation • one of the widest selections of study areas among major universities in the U.S. • students from all 50 states and about 120 foreign countries The University of Texas at Austin

15. RESEARCH FUNDING UT-AUSTIN • Sponsored research awards ≥ $350M • Federal sources provide largest share of research funding = $184M  • Industrial sponsorship = $31M (10% of research funding -- slightly higher than national average of 7.1%) • State funding = $50M • Texas Advanced Research Program and Advanced Technology Program = $12M The University of Texas at Austin

16. Sponsored ResearchSources of Funding 1999-2000 The University of Texas at Austin

17. The Vision “To serve as a model for technology commercialization for public universities.” - Larry Faulkner President The University of Texas at Austin The University of Texas at Austin

18. Commercialization Players at UT College of Communications Office of Sponsored Projects Government Agencies College of Natural Sciences School of Pharmacy Private Companies Officeof Technology Commercialization College of Engineering IC2 Business School Venture Capitalists School of Law Austin Technology Incubator Intellectual Entrepreneurship Program AngelInvestors The University of Texas at Austin

19. Bringing the Players Together College of Communications Office of Sponsored Projects Government Agencies College of Natural Sciences School of Pharmacy Private Companies Officeof Technology Licensing College of Engineering Vice President for Research IC2 Business School Venture Capitalists School of Law Austin Technology Incubator Intellectual Entrepreneurship Program AngelInvestors The University of Texas at Austin

20. The Austin Model Business Academic Government Community Talent Technology Capital Know-How Market Needs Successful Value-Added Technology Innovation The University of Texas at Austin

21. Innovation, Creativity, CapitalThe IC2 Institute • Founded with a mission to combine technology, entrepreneurship, and education to improve the world via economic wealth creation and prosperity sharing. • Established two technology commercialization centers for NASA and one for the NOAA. • Operates the Austin Technology Incubator • Justin Morrill Award from the Technology Transfer Society and the Randall M. Whaley Incubator of the Year Award from the National Business Incubation Association. • Only 2 UT-Austin technologies incubated out of 60 graduate companies • Active strategic alliances with leading academic institutions in 25 nations The University of Texas at Austin

22. Partnerships: UT AustinAustin Technology Incubator • Founded in 1989 to create wealth, generate jobs, diversify Austin’s economy, and be a learning laboratory for UT faculty, students, and staff • First Director: Ms. Laura Kilcrease • NBIA Incubator of the Year in 1994 • Incubated incubators in Silicon Valley, Houston, and Charleston, SC • International reputation by recruiting startups from Brazil, Israel, India, Canada, Australia, Japan History The University of Texas at Austin

23. Partnerships: UT AustinAustin Technology Incubator • 110+ member companies over 10 years • 65 graduate companies • 22 current companies • Four NBIA award-winning companies • ATI companies have created 2,850 high paying jobs Business Creation The University of Texas at Austin

24. Partnerships: UT AustinAustin Technology Incubator • ATI companies generated $280M in 2000 revenues; $1.2B since 1989 • Three graduates are public on Nasdaq: DTM, Concero, Encore Orthopedics • Dozen graduates have been bought, including Metrowerks by Motorola for $95M, Evity by BMC for $100M, Exterprise by CommerceOne for $75M, DTM Corp. by 3D Systems Corp. for $45M • Companies have raised > $300M in last three years Wealth Creation The University of Texas at Austin

25. Office of Technology Commercialization • Reports to the Associate Vice President for Research • Mission: • To support the education, research, and service missions of The University of Texas at Austin by facilitating the transfer and commercialization of the knowledge base of the university. The University of Texas at Austin

26. Office of Technology Commercialization • Technology Licensing Office founded in 1997. • Growth in Licensing Revenue • FY 00-01 $1.6 Million • FY 01-02 $2.2 Million • FY 02-03 $4.0 Million • Newly active role in technology company spin-offs, over 50% of the 37 companies started with UT technology were started since 2000 The University of Texas at Austin

27. Entrepreneurship Programming • Murchison Chair of Free Enterprise (College of Engineering) • Kelleher Center for Entrepreneurship Education (School of Business) • IC2 Institute (Vice President for Research) • Intellectual Entrepreneurship (Graduate School) • Austin Technology Incubator • Texas Alliance for Technology Commercialization (the Alliance) The University of Texas at Austin

28. Murchison Chair of Free Enterprise • Mission: • To create and nurture a culture of technology innovation, creativity, and leadership at The University of Texas at Austin and the global community that we serve. The University of Texas at Austin

29. Kelleher Center for Entrepreneurship Education • Mission: • The Kelleher center and chair will add to existing programs at the Red McCombs School of Business, while creating a forum for successful entrepreneurs, students and faculty. Start-ups will not be the only area of focus. In the spirit of Southwest Airlines, the center will foster the application of entrepreneurship principles to companies of all sizes, spurring corporate growth and renewal. The University of Texas at Austin

30. Office of the V. P. for Research Center for Nano- and Molecular Science & Technology Herb Kelleher Center for Entrepreneurship The College of Natural Sciences Texas Alliance for Technology Commercialization Office of Sponsored Projects Office of Technology Licensing DEPARTMENT OF BIOMEDICAL ENGINEERING Clint W. Murchison Chair of Free Enterprise The University of Texas at Austin

31. Dept/Program Course Name Instructor College of Natural Sciences Computer Science Technology Commercialization: Idea-Product Dr. Neil Iscoe Computer Science Disruptive Technology Dr. Neil Iscoe Entrepreneurship EducationThe College of Natural Sciences The University of Texas at Austin

32. Dept/Program Course Name Instructor College of Engineering Elec. & Computer Eng. Engineering Entrepreneurship Dr. Oran Brigham Mechanical Eng. Enterprise of Technology: From Mind to Market Dr. Nichols & Dr. Kaderlan Mechanical Eng. Legal Aspects of Engineering Practices Dr. Dennis Wilson Mechanical Eng. Venture plan: Leadership/Communications Dr. Dennis Wilson Entrepreneurship EducationCollege of Engineering The University of Texas at Austin

33. Dept/Program Course Name Instructor McCombs School of Business MBAE Core Entrepreneurial Management Dr. Jeffrey Martin MBAE Core Gathering Resources and Launch Dr. Gary Cadenhead MBAE Core Harvest, Finance and Negotiation Mr. Jim Nolen MBAE Core Managing Entrepreneurial Growth Mr. John Doggett MBAE Core New Venture Creation Dr. Gary Cadenhead MBAE Core Opportunity Identification and Analysis Mr. John Doggett MBAE Advanced Venture Development Practicum Dr. Gary Cadenhead MBAE Entrepreneurial Growth Mr. John Doggett MBAE Financial Strategies – Private Equity Dr. Robert Parrino MBAE Small Business Finance Mr. Jim Nolen MBAE Venture Capital Fellows Practicum Dr. Robert Freund Finance Entrepreneurial Finance Mr. John Jordan Management Intro to Entrepreneurial Process Ms. Aruni Gunasegaram Entrepreneurship EducationMcCombs School of Business The University of Texas at Austin

34. Dept/Program Course Name Instructor Graduate Studies GRS Academic and Professional Communication Dr. Thomas Darwin GRS Academic and Professional Consulting Dr. Thomas Darwin GRS Entrepreneurship Dr. Thomas Darwin & Dr. Joel Wiggins Entrepreneurship EducationThe Graduate School The University of Texas at Austin

35. Research and Product Development Applied (Product) Research Idea Generation Basic Research Production (Operations) Risk, Investment, Financial Reward Increasing The University of Texas at Austin

36. Jolly Model of Commercialization The University of Texas at Austin

37. Value and The University How can the University move technology research further along the commercialization path to higher value points while furthering advancing our mission? The University of Texas at Austin

38. Traditional Process for Commercialization at UT-Austin The University of Texas at Austin

39. Meeting The University’s Mission? • Education? • Research? • Public Service? The University of Texas at Austin