Highlights of AUTM’s Canadian Licensing Activity Survey FY2015 · Reported Startups 2009 2015 STARTUPS Nearly 1,200 startups reported. 1991 250 690 1,282 1,921 1,813 2,500 2,000

Highlightsof AUTM’s

Canadian LicensingActivity Survey

FY2015

www.autm.net

Highlights of AUTM’s Canadian Licensing Survey FY2015

Every year, universities around the globe develop inventions that have real-world, often life-changing, applications. These innovations are licensed by university technology transfer offices to companies for commercialization and are the genesis of more than a thousand new companies, resulting in both benefits to society and solid economic wins.

Over the past 25 years, Canadian research faculty, students and staff have reported nearly 30,000 innovations to their technology transfer offices, filed nearly 13,000 new patent applications, and were issued nearly 3,400 US patents. These innovations were licensed to thousands of companies, including 1,172 startups. Research institutions shared in the success of their startups, earning more than $100 million in equity, much of which was reinvested for future research. Licensed technologies led to the introduction of more new products to the market for consumer and business use.

25 YEARS OF PROGRESSFor 25 years, the Association of University Technology Managers (AUTM) has implemented its annual Licensing Activity Survey to highlight the public value of technology transfer.

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$0

$10

$20

$30

$40

$50

$60

$70

$80Gross Reported Licensing Income

2005

571

690 700

800

700

600

500

400

300

200

100

02009 2015

R E P O R T I N G Y E A R

Reported Licenses & Options Executed

LIC

EN

SE

S &

OP

TIO

NS

EX

EC

UT

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Nearly 6,400 total cumulative licenses and options executed.

1994

29

58 58

48

90

10

20

30

40

50

60

70

80

90

100

01997 2003


Reported Startups

2009 2015

ST

AR

TU

PS

Nearly 1,200 startupsreported.

1991

250

690

1,282

1,921 1,813

2,500

2,000

1,500

1,000

500

01997 2003


Number of Reported Disclosures

2009 2015

DIS

CL

OS

UR

ES Nearly 30,000 disclosures

reported.

1991

$6

$22

$72$66

$62

1997 2003

R E P O R T I N G Y E A R2009 2015

LIC

EN

SIN

G I

NC

OM

E

($M

ILL

ION

S 2

01

5 C

ON

ST

AN

T)

Over $1.2 billionin cumulative

licensing income.

$0

$10

$20

$30

$40

$50

$60

$70


2005

571

690 700

800

700

600

500

400

300

200

100

02009 2015



LIC

EN

SE

S &

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NS

EX

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UT

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1994

29

58 58

48

90

10

20

30

40

50

60

70

80

90

100

01997 2003


Reported Startups

2009 2015

ST

AR

TU

PS


1991

250

690

1,282

1,921 1,813

2,500

2,000

1,500

1,000

500

01997 2003



2009 2015

DIS

CL

OS

UR


reported.

1991

$6

$22

$72$66

$62

1997 2003

R E P O R T I N G Y E A R2009 2015

LIC

EN

SIN

G I

NC

OM

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($M

ILL

ION

S 2

01

5 C

ON

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licensing income.

$0

$10

$20

$30

$40

$50

$60

$70


2005

571

690 700

800

700

600

500

400

300

200

100

02009 2015



LIC

EN

SE

S &

OP

TIO

NS

EX

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UT

ED


1994

29

58 58

48

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10

20

30

40

50

60

70

80

90

100

01997 2003


Reported Startups

2009 2015

ST

AR

TU

PS


1991

250

690

1,282

1,921 1,813

2,500

2,000

1,500

1,000

500

01997 2003



2009 2015

DIS

CL

OS

UR


reported.

1991

$6

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$72$66

$62

1997 2003

R E P O R T I N G Y E A R2009 2015

LIC

EN

SIN

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($M

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01

5 C

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licensing income.

$0

$10

$20

$30

$40

$50

$60

$70


2005

571

690 700

800

700

600

500

400

300

200

100

02009 2015



LIC

EN

SE

S &

OP

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NS

EX

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UT

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1994

29

58 58

48

90

10

20

30

40

50

60

70

80

90

100

01997 2003


Reported Startups

2009 2015

ST

AR

TU

PS


1991

250

690

1,282

1,921 1,813

2,500

2,000

1,500

1,000

500

01997 2003



2009 2015

DIS

CL

OS

UR


reported.

1991

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1997 2003

R E P O R T I N G Y E A R2009 2015

LIC

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OM

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($M

ILL

ION

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01

5 C

ON

ST

AN

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licensing income.

Executive Summary

ACADEMIC RESEARCH FUELING GROWTHThis year’s survey of three dozen academic institutions and hospitals across Canada shows research institutions are fueling the growth of new technologies with substantial increases in research funding from industry, total licensing agreements, licenses and options for startups, the number of startups formed and patent applications.

“A strong, robust patent system incents investment in the ideas and research that fuel our innovation economy.”~ AUTM President David Winwood

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0%

5%

10%

15%

20%

25%

30%

35%

40%Percent Increase Over 201440.7%

21.3%18.3%

9.8%

2.7%PE

RC

EN

TA

GE

IN

CR

EA

SE

O

VE

R P

RIO

R Y

EA

R

Licenses & Options toStartups

Total Licenses& OptionsExecuted

Research Expenditures from Industry

Startup Companies

Formed

New Patent Applications

Filed

Canadian Licensing Activity Survey FY2015 Highlights — an overview of the complete fiscal year 2015 report — offers a glimpse into the current state of the technology transfer field. (The comprehensive AUTM Canadian Licensing Activity Survey FY2015 report will be published later this year.) These Highlights also offer stories that illustrate the larger impact of technology transfer as measured by products that improve our quality of life and increase the competitiveness and productivity of our global society.

The 2015 survey reveals impressive year-to-year gains in industry investments into academic research (up 18.3 percent), the number of licenses and options executed (up 21.3 percent) and the number of new patent applications filed (up 2.7 percent) — clear indicators of the high levels of innovation taking place within Canadian research institutions.

Academic-based research boosts local, national and global economies. Jobs are created by startups, product sales and the evolution of new industries. Academic-based research also creates jobs directly through the hiring of principal investigators, research teams and support staff.

RESEARCH FUNDINGFederal research funding continues to be the primary fuel for innovation ecosystems throughout Canada. Research institutions continue to expand partnerships with industry at a faster rate than funding from other sources, including federal sources.

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Public Useand Economic

Growth

Products &Services

Licensing

Marketing

IP Protection

Assessment

InnovationUniversity Research

& Development

TechnologyTransfer

CycleFor Fiscal Year 2015

Revenues received from licensees are reinvested in additional research and development$62 million licensing income received, down 30.6% from 2014

$2.8 million licensing income attributed to equity, down 1.8%

Strong intellectual property rights help protect discoveries and ensure continued investment in research1,026 new patent applications filed, up 2.7% over 2014

271 patents issued, down 1.8%

Creating new, sustainable businesses90 startups formed, up 9.8% over 2014

82 of those startups reside in institution’s home province, up 15.5%

521 startups still operational at end of fiscal year 2015, up 8%

Consumers and businesses benefit from the creation of new products74 new products created from Canadian research institutions

$6 Billion

$2.5Billion

$0.7Billion

TOTAL RESEARCH EXPENDITURES (up 3.9%)

FEDERALLY FUNDED RESEARCH EXPENDITURES (up 9%)

INDUSTRY-SPONSORED RESEARCH EXPENDITURES (up 18.3%)

FEDERAL41.6%

NON-CLASSIFIED47.4%

INDUSTRY-SPONSORED11%

University Research and Development

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25 Years of Progress

Thanks to researchers at University of Guelph, consumers are now brewing a more earth-friendly cup of coffee.

The popularity of single-serve coffee makers has grown dramatically in recent years. The handy appliances provide convenience for consumers but at a high cost to the environment. The single-serve pods used by these machines generate enough discarded coffee pods to circle the the globe 10 times.

The main obstacle preventing coffee pods from going green are the rings that secure the pod’s pouch. The rings are made from polypropylene, an inexpensive petroleum-based plastic.

Already looking for ways to reduce the world’s dependence on petroleum-based plastics, Amar Mohanty, Director of University of Guelph’s Bioproducts Discovery Development Centre, partnered with Atul Bali, CEO of Competitive Green Technologies, to find a more environmentally-friendly cup of coffee that was also cost-effective.

To reduce the amount of biodegradable plastic needed in the rings, Mohanty found a plentiful and affordable natural fiber. The skin — or chaff — of the coffee bean is discarded before the beans are roasted. Coffee chaff is widely available: in Canada and the United States alone, roasters produce more than 10 million pounds of chaff each year.

By September of 2014, Mohanty created a successful ring formulation consisting of 25 percent coffee chaff. The University of Guelph’s Catalyst Centre then filed a patent on Mohanty’s invention and exclusively licensed the technology to Competitive Green Technologies. The company now produces half a million rings per day for a compostable coffee pod which is sold through large retailers including Kroger, Walmart and Costco.

Serving a Greener Cup of CoffeeUniversity of Guelph

Better World ProjectThe

“The University of Guelph Catalyst Centre was instrumental in making this project a great success,” says Mohanty.

“The support we received in commercializing the technology is essential in a project like this.”

DISCLOSURESAlthough much academic research remains focused on the timely dissemination of findings in peer- reviewed scientific journals, a substantial portion of research results in technologies offering commercial promise. Filing patents on these discoveries protects the university’s intellectual property, encourages new research within the institution, and facilitates the adoption of new technologies in the marketplace. Moreover, patents offer protection to companies that invest substantial resources and time — 5 to 10 years or more — to develop technologies into commercially viable products.

The receipt of an invention disclosure is just the beginning of the collaboration between inventors and technology transfer professionals. In this sense, a disclosure is the raw material needed to generate patented products and economic benefits. Invention disclosure rates are an important indicator of the level of innovation and generally trend in line with research and development expenditures.

PATENTSThe patent system is intended to encourage the dissemination of knowledge and information to the public by granting authors and inventors limited monopolies to their inventions and works. With research institutions continuing to invest in intellectual property protection, the economic incentive for entrepreneurs and companies to invest in new technologies continues to grow.

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($M

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1991

1992

1993

1994

1995

1996

1997

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2001

2002

2003

2004

2005

2006

2007

2008

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2015

0

500

1000

1500

2000

2500 $7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0


Canadian Invention Disclosures Received

Canadian Total Research Expenditures ($ Millions)

1,813

1,026

1,101DISCLOSURES RECEIVED (down 5.7%)

NEW PATENT APPLICATIONS FILED (up 2.7%)

TOTAL US PATENT APPLICATIONS (up 7.5%)

271 US PATENTS ISSUED (down 1.8%)

Protecting Intellectual Property

Oats are a great source of carbohydrates, proteins, fiber and important nutrients. They also contain valuable bioactive compounds that play a role in the prevention of diabetes, coronary heart disease and cancer.

Extracting these natural ingredients can be challenging for pharmaceutical and nutraceutical products — products that may need to be dried or powdered to be made into tablets, pills or supplements. The water-based natural biopolymers from oats must be converted into a dry form, a process that often requires heat which can weaken the most important ingredients.

To overcome this obstacle, the Edmonton-based biotechnology company Ceapro Inc. turned to Dr. Feral Temelli in the Department of Agricultural, Food & Nutritional Science at the University of Alberta. Dr. Temelli and doctoral student Bernhard Seifried developed a novel moderate-temperature spray-drying technique called PGX.

The PGX technology utilizes the unique properties of Pressurized Gas eXpanded liquids to produce numerous forms of water-soluble biopolymers including oat beta glucan, already well-known for its cholesterol-lowering properties.

As the commercialization agent for University of Alberta technologies, TEC Edmonton helped negotiate the licensing agreement giving Ceapro the right to use the PGX technology. Already, multi-national food and natural drug proces-sors have approached Ceapro with interest in sub-licensing the game-changing drying technology. “This agreement will create jobs and export revenue,” says Chris Lumb, CEO of TEC Edmonton, the university’s licensing agent. It also demonstrates the importance of local licensing as a way to develop economic diversity and increase linkages between universities and their communities.”

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Dried Oats Yield New Opportunities University of Alberta

“This partnership between Ceapro and the University of Alberta is a great example of translational research, from lab to the

marketplace,” says Gilles Gagnon, President and CEO of Ceapro.



LICENSINGTechnology transfer offices play an indispensable role in facilitating one of the most critical components of a robust innovation ecosystem: enabling strong collaboration between academia and industry. When a license agreement is signed, it marks the beginning of a formal, long-term relationship between a research institution and its industry partner.

Data derived from the FY2015 survey reflect healthy increases in partnership metrics:

CREATING COMPANIES AND PRODUCTSStartup companies can be an effective mechanism for transferring nascent technology from the university research environment to the marketplace. In FY2015, the 90 new companies born of Canadian technology transfer activities represent a 9.7 percent increase over the prior year, with an average of 7.5 new companies created each month. More than 91 percent of these companies operate in the same province where the original research took place, creating new jobs for local economies.

The increase in new companies is promising, but what about their long-term prospects? The data indicate that startups derived from technology transfer activities show admirable staying power. The 521 startups still in business at year-end represent a healthy 8.1 percent increase over the previous year.

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Creating Companies and Products

588 112LICENSES EXECUTED (up 19.3%) OPTIONS EXECUTED (up 33.3%)

42 EXECUTED LICENSES CONTAINING EQUITY (up 50%)

OPTIONS/ LICENSES

EXECUTED

90

521

STARTUP COMPANIES FORMED (up 9.8%)

STARTUPS STILL OPERATIONAL BY END OF FY2015 (up 8%)

82 OF STARTUPS RESIDE IN INSTITUTION’S HOME PROVINCE (up 15.5%)

74 NEW PRODUCTS CREATED (down 6.9%)

STARTUPS

PRODUCTS

“When universities and businesses collaborate to advance discoveries, they become a powerful engine for innovation and economic growth. “~ AUTM President David Winwood

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Bringing a new life into the world can be one of life’s most rewarding, fulfilling experiences. But many new moms find themselves struggling with debilitating postpartum depression — a condition affecting up to 10 percent of new mothers, according to the Canadian Psychological Association.

“It’s not only problematic for the mother, it’s problematic for their children who end up with cognitive and language delays, problems with peer relationships and struggles in school,” says Nicole Letourneau, PhD, a professor at the University of Calgary’s Faculty of Nursing and member of the Alberta Children’s Hospital Research Institute.

Having studied the long-term effects of postpartum depression, Dr. Letourneau knew women suffering from the condition were likely to isolate instead of seeking help. To reach out to mothers struggling with post-partum depression, Dr. Letourneau developed a program while at the University of New Brunswick called MOMS Link™, adapting material created by Dr. Cindy-Lee Dennis, a professor at the University of Toronto and Canada Research Chair in Perinatal Community Health.

Dr. Letourneau initially worked with the New Brunswick non-urgent healthcare call centre, which identified mothers in need. Mothers who rated high on measures for depression were then invited to participate in the program.

“We provided eligible mothers with a peer mentor who had overcome postpartum depression and would speak to the mom for one hour a week for 12 weeks,” said Dr. Letourneau. “At the end of the program, 89 percent of the mothers were no longer depressed.”

After the program’s successful launch in New Brunswick, MOMS Link™ is now positioned to deliver assistance to partner communities across Canada.

Linking MothersAlberta’s Children’s Hospital Research Institute and the University of New Brunswick

Nearly 9 out 10 mothers successfully overcame postpartum depression after completing the MOMS Link™ program.


Healthcare facilities in the developing world lack many resources, including access to expensive surgical equipment. As a result, some 5 billion people lack access to safe surgery because surgeons do not have access to the right medical equipment.

Case in point: orthopedic drills needed to perform surgery on serious bone and muscle injuries cost upwards of $30,000. That leaves orthopedic surgeons in low-resource areas with two options — they can use non-sterile hardware drills which increase the risk of infection, or use sterile, hand-cranked drills that are labor-intensive and lack precision.

Working with surgeons from Canada and Uganda, graduate students in biomedical engineering at the University of British Columbia (UBC) created a third and more appealing option — a reusable drill cover that transforms a drill purchased at a hardware store into a sterile surgical instrument.

UBC assigned the patented drill cover to Arbutus Medical. The company’s flagship product, the Arbutus Drill Cover, has been used in more than 12,000 surgeries in 20 countries. Use of the sterilizable and reusable drill cover has helped reduce the rate of infection, improve patient outcomes and reduce operating times.

Arbutus Medical named the company after the Arbutus tree, an evergreen tree native to the southwest coast of British Columbia that thrives in harsh environments. Like its namesake, the company is working with surgeons around the world to develop safe, affordable and appropriate medical equipment for low-resource environments.

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From Hardware Store to

Operating RoomUniversity of British Columbia


Transforming off-the-shelf hardware into surgical equipment has helped reduce the rate of infection, improve patient outcomes and reduce operating times for low-resource environments in 20 countries.

ABOUT THE SURVEYAUTM invited 71 Canadian institutions to participate in the FY2015 survey. AUTM received 36 completed surveys, for a response rate of 50.7 percent. The numbers from these institutions reflect the significant role played by technology transfer in today’s innovation economy.

Most of the data collected in this survey is also available in AUTM’s Statistics Analysis for Technology Transfer (STATT) database. To access this searchable database of 25 years of academic licensing data, visit www.autm.net/statt.

ABOUT AUTMThe Association of University Technology Managers is a nonprofit organization dedicated to bringing research to life by supporting and enhancing the global academic technology transfer profession through education, professional development, partnering and advocacy. AUTM’s more than 3,200 members represent managers of intellectual property from more than 350 universities, research institutions and teaching hospitals around the world as well as numerous businesses and government organizations.

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About the Survey

A Better World by Bringing Research to Life

Documents

Highlights of AUTM’s Canadian Licensing Activity Survey FY2015 · Reported Startups 2009 2015 STARTUPS Nearly 1,200 startups reported. 1991 250 690 1,282 1,921 1,813 2,500 2,000