Corporate Partnership and Philanthropy Case Study

Glenn H. Fredrickson

Professor, Departments of Chemical Engineering & MaterialsDirector, Mitsubishi Chemical Center for Advanced Materials (MC-CAM)

Director, Complex Fluids Design Consortium (CFDC)

University of California, Santa Barbara

Agenda

Mitsubishi Chemical Center for Advanced Materials (MC-CAM)

Complex Fluids Design Consortium (CFDC)

The Mitsubishi Chemical Center for Advanced Materials

MC-CAM Annual Review 2017

4

2017.4.1

The KAITEKI Institute, Inc.

100％100％ 56.3％ 50.6%

Mitsubishi Chemical Holdings Corporation*1

Consolidated net sales: ¥3,823.1 billion

Employees: 68,988

Mitsubishi Chemical Holdings America

Mitsubishi Chemical Holdings Europe

㈱生命科学インスティテュート

大陽日酸㈱*

100％

Group companies Group companies Group companies グループ会社

Integrated on April 1, 2017

Taiyo Nippon Sanso

Corporation*1

【Sales】calculated from the simple sum of figures of FY2015

【Employees】as of March 31, 2016

Nov. 2010~

Apr. 2009~

Mitsubishi Chemical Holdings (Beijing) Co., Ltd. Jan. 2011~

Nov. 2012~

Mitsubishi Chemical Holdings Corporate Staff, Inc. Apr. 2013~

Holding company Function-sharing companies

Performance Products

Health Care

Industrial Materials

<Business domains>

Mitsubishi Chemical Holdings Corporation

Operating Companies

*1Listed Company

Mitsubishi Chemical

Corporation

Mitsubishi Tanabe

Pharma Corporation*1

Life Science

Institute, Inc.

Apr. 2017~

net sales:*2

¥ 2,775.1 billion

Group employees*2

41,591

[ Line of businesses ]

Performance products,

Industrial materials etc.

Oct. 2007~

Consolidated net sales:

¥ 431.7 billion

Group employees

8,125

[ Line of businesses ]

Pharmaceuticals etc.

Apr. 2014~

Consolidated net sales:

¥ 136.0 billion

Group employees

4,751

[ Line of businesses ]Health and Medical ICT,

Advanced MedicationDrug Development andManufacturing Solutions

Nov. 2014~

Consolidated net sales:

¥ 641.5 billion

Group employees

14,127

[ Line of businesses ]

Industrial gases& related equipment /

devices etc.

Group companies

Other figures are for the year ended March 31,2016

*2Mitsubishi Chemical Corporation

5

2017.4.1

Health Care

Industrial Materials

Performance Products

Pharmaceuticals

Diagnostic reagents

and instruments

Clinical testing

Neat resins and composites

Recording mediaElectronics related

products

Information materials

Inorganic chemicals

Food ingredients

Battery materials

Fine chemicals

Polymer processing materials

Composite materials

Basic petrochemicals

Chemical derivatives Synthetic fiber materials

Carbon products

Main Businesses

Chemical fibersPharmaceutical

formulation materials

Industrial gases

A Model Research Partnership

MCC taps into the broad interdisciplinary materials expertise at UCSB

UCSB researchers participate in creating new materials, devices, and processes for the specialty chemical & materials sector

Mitsubishi Chemical – Center for Advanced Materials (MC-CAM), the vehicle for the alliance

MC-CAM commenced in 2001: Gen 1 2001-2006

Gen 2 2006-2010

Gen 3 2010-2014

Gen 4 2014-2018

Gen 5 2018-2022

A 17+ year relationship!

Character of Research Projects

Project co-leaders from UCSB and MCC

MCC/Japan research partners are very involved

2 MCC employees are stationed at UCSB

Researchers from at least 2 disciplines

Scientific novelty

Clear connection with a potential product

Strategic alignment with 5-year MCC R&D strategy

Since 2001, research themes have included: Specialty polymers OPV and OTFT Battery/fuel cell materials Fullerenes/graphenes Catalysts Nanocomposites Phosphors Encapulants Quantum dots…

Si

La

N

What Constitutes Success?Our Vision in 2001

First-rate science and engineering

Quality publications

Well-trained students and post-docs

Patents

Technology or knowledge transfer to MCC

Technology utilized in existing or new businesses (MCC responsibility)

Fruits of Gen 1 and 2 Research

Organic white PLED fabricated by wet coating Worlds best luminescent intensity

Fuel Cell proton exchange membrane Meeting DOE target

III-V nano particle Highest quantum efficiency

Organic two photon absorption dye Highest TPA cross section

Functional polyolefins Novel thermoplastic elastomers from E & P Broad catalyst families for improved control over

co-monomer insertion and placement

Phosphors New important families of R,G,B,Y White LED independent of Nichia patents

Fullerene Derivatives Enhanced solubility and functionality to add value

LED encapsulants Thermal & uv stability, adhesion, and

transparency

cathode

ETL

EML

HIL

glass

ITO

HTL

OO

n m

MC-CAM Publications & Presentations

167 publications to date in prestigious journals including Advanced Materials Proc. NAS Advanced Functional Mater. J. Appl. Phys. Nanoletters J. Am. Chem. Soc. Chem. Mater. Synth. Metals Langmuir Macromolecules Angew. Chemie Phys. Rev. Lett. …

160 presentations & posters to date

Patent Activity

105 Invention Disclosures to UCSB to Date

30 Disclosures with MCC co-inventors (~30%)

Patents in Prosecution: 20 in US 29 outside US

Utility Patents Issued (97 total): 57 US Patents Issued 40 Patents Issued Outside US

Our portfolio managers:

-UCSB-TIA: Mary Raven

-Gates & Cooper: William Wood and Brendan Serapiglia

0

2

4

6

8

10

2011 2012 2013 2014 2015 2016 2017 2018

Series2 3 4 3 5 5 8 5 3

Dis

clo

sure

sFiscal Year

Research Efficiency in InnovationResearch Institution Average1

$2.7M expended per invention disclosure

Tech Company Rule of Thumb2

$500K expended per invention disclosure

MC-CAM $ expended per invention disclosure2009: $231K 2010: $273K2011: $340K2012: $350K 2013: $260K2014: $406K2015: $390K2016: $152K2017: $244K2018: $377K

Average is $300K/disclosure

1. Average from 2012 AUTM licensing survey2. The Economist, October 22, 2005

MC-CAM continues to be more efficient than comparison groups!

University Average($)Per InventionDisclosure

MCC Average ($) PerInvention Disclosure

Elements of Success

Good communication and leadership Close alignment of

projects with MCC strategic interests

Involved research partners/2 MC-USA employees at UCSB

Mutual trust and shared objectives

Enthusiastic & talented people: students, postdocs, faculty, MCC scientists, and staff

Longevity: Benefits to MCC

MCC gets access to the superb faculty, researchers, and collective materials expertise and equipment at UCSB

The cost of MC-CAM research is lowcompared with MCC corporate R&D:

~$100K/researcher, ~$300K/patent

Added leverage by students supported by fellowships

Access to professors and researchers for formal or informal advice, ideas, concepts, and understanding

Education and career development opportunities for MCC researchers

A partnership that can excite and motivate MCC researchers and improve their productivity!

Murase, Chan in UCSB clean room

George, Arai, Gerbec, Prof. Seshadri

Ben demonstrates DSIMS

Oono, Wang, Sakai at MCRC

CEO Kobayashi with EVC Lucas and Laureate Heeger

Ongoing Challenges

Maintaining clear channels of communication

Managing expectations of UCSB faculty and MCC scientists and management Project time scales

Basic versus applied

Balancing UCSB’s research and educational missions Postdoc vs. graduate student

Keeping UCSB faculty and researchers focused on IP considerations and release procedures

MCC – Battling the “not-invented-here” and intrinsic challenge of new product development

How to assess the value to MCC?

Strategic Use of Philanthropy

Gen 1—MCC endowed two chairs

Mitsubishi Chemical Chair in Functional Materials (Fredrickson)

Mitsubishi Chemical Chair in Solid State Lighting (Denbars)

Gen 1-5

All administrative costs of the center are funded through an annual gift

Research funding is supplied through a research agreement with IP provisions

Gen 1-5

MCC provided annual gifts of $100K --$200K to endow graduate fellowships in Chemical Engineering and Materials

Complex Fluids Design Consortium

UCSB participants:

G. Fredrickson (Director), H.

Ceniceros, C. Garcia-Cervera, K.

Delaney, L. G. Leal

Current industrial partners:

Dow Chemical, DSM, Intel, Asahi

Kasei, JSR, S.K. Hynix, Samsung

Electronics, Kraton Polymers

National lab partners:

Los Alamos NL (K. Rasmussen),

Sandia NL (A. Frischknecht)

The Complex Fluids Design Consortium (CFDC) is an academic-

industrial-national lab alliance that is developing computational

field-theory-based software tools for the design and analysis of

nanostructured complex fluids and soft materials

http://www.mrl.ucsb.edu/research/complex-fluids-design-consortium

Complex Fluids Design Consortium (CFDC)

The CFDC has pioneered directed self-assembly (DSA) simulation tools that are guiding the development of robust materials and processes for next generation microelectronics patterning (lithography)

Chemo-epitaxy

Grapho-epitaxy

CFDC Consortium Model

Computational approaches, understanding, tools, and software are jointly developed at UCSB

CFDC member companies get royalty-free licenses to use the software in house for proprietary R&D and product development

CFDC

Company B

Company CCompany D

Company A Software and knowledge

Funds

Broader Objectives and Benefits

Create a world-renowned center for complex fluid and soft materials modeling

Companies share cost/risk of research and software development of mutual interest

Create employment opportunities for the students and post-docs of the consortium

Because the UCSB research is open, no IP negotiations are necessary -- sponsorship can be an unrestricted gift

Industrial Partners Mitsubishi Chemical

GE Corp. R&D

Arkema

Rhodia

Nestle

Accelerys

IBM

DSM (Strain localization in flow, reactive blending)

Intel (Directed Self-Assembly)

Dow Chemical (Directed Self-Assembly, inverse design)

JSR (Directed Self-Assembly)

Asahi Kasei (Membrane formation processes)

SK Hynix (Directed Self-Assembly)

Samsung Electronics (Directed Self-Assembly)

Kraton Polymers (Thermoplastic elastomers)

Previous members

(polymer resin design)