Upload
mit-forum-of-israel
View
569
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
agem
ent The Role Of The University In Creating An
Entrepreneurial Ecosystem
ool o
f Man
a
Lessons From MIT
loan
Sch
o
Professor Fiona Murray
Sarofim Family Career Development Professor
MIT
Sl Sarofim Family Career Development Professor
Associate Director MIT Entrepreneurship CenterCo-Head Technological Entrepreneurship, Innovation & Strategic Management Group
1
Enlightenment Recognized “Useful” Science & was Key to Foundation Of Industrial RevolutionKey to Foundation Of Industrial Revolution
agem
ent "The business …of the Royal Society is to improve
the knowledge of natural things, and all useful Art, Manufactures, Mechanick practices, Engynes and inventions by Experiments "
ool o
f Man
a Engynes, and inventions by Experiments...
wrote Robert Hooke in 1663 (Lyons 1944 pp. 41-42)
loan
Sch
o )
MIT
Sl
22
By Nineteenth Century – Tight But Informal R l ti hi B t U i iti & I d tRelationship Between Universities & Industry
agem
ent
Establishing industry-relevant disciplines
University of Delaware & DuPontUniversity of North Carolina & tobacco processing
ool o
f Man
a
Education- future scientists for industrial research labs & for entrepreneurship
p gMIT establishing chemical engineering educationGermany (& UK) universities role
loan
Sch
o for entrepreneurship
Ideas - Individual faculty i i d i h f
in the founding of the chemical industryMerck’s consulting relationships to professors at University of
MIT
Sl giving advice, exchange of
views & consultingto professors at University of Pennsylvania
33
Gradual decoupling of universities (especially in Europe) from industry – emergence of “Ivory Towers”Europe) from industry emergence of Ivory Towers
agem
ent
WHAT GREAT SCIENTIFIC MYSTERY CRIES FOR MY ATTENTION TODAY?
ool o
f Man
a CRIES FOR MY ATTENTION TODAY?.....
loan
Sch
oM
IT S
l
44
Connection Between Scientific Knowledge & Economy Reaffirmed By Vannevar Bush In Post-WWII US y
…….But On New Terms
agem
ent “Advances in science when put to practical use mean
more jobs, higher wages, shorter hours, more abundant crops, more leisure for recreation, for study, for learning how to live without the deadening drudgery which has
ool o
f Man
a g g ybeen the burden of the common man for ages past…But to achieve these objectives … the flow of new scientific knowledge must be both continuous and substantial”
loan
Sch
o
wrote Bush in “Science: The Endless Frontier” 1945
MIT
Sl
55
Articulated as a commitment to “basic” scientific knowledgeSeparation of knowledge production from economic growth
Organized with a Clear Separation Of KnowledgeOrganized with a Clear Separation Of Knowledge Production
“B i ” R h W k f f
agem
ent “Basic” Research Work for fun,
freedom & love of knowledgeUniversities
ool o
f Man
a
Unclear boundary – firms typically “waiting” to pick-up
people & ideas from
loan
Sch
o
Work for $$ &Firms
universities
MIT
Sl
“Applied” Research &
Work for $$ & desire to do
something useful
66
Commercialization
But in 1970s/1980s (US) impatience with perceived weak impact of universitiesp
US C i l d b t ff ti f
agem
ent US Congressional debates on effective use of
Federal funds – studies suggested small % ideas used by firms
ool o
f Man
a
Pressure on US university fundingInstitutional confusion over ownership of patents
loan
Sch
o patents
Re-conceptualized role of university as source f id l d t d l
MIT
Sl of new ideas, newly educated people - an
engine for economy.
77
Implemented via the 1980 Bayh-Dole Act
Ownership of patents generated in a university using Federal
agem
ent Ownership of patents generated in a university using Federal
funding => universities
Burden on universities to ensure the commercialization of these
ool o
f Man
a
patents (of all ideas) – structured via licensing arrangements
Requirement to favor small, entrepreneurial firms
loan
Sch
oM
IT S
l
88
What policy makers really wanted was a shift towards “Pasteur’s Quadrant”…towards Pasteur s Quadrant …
agem
ent
Bohredom
&
wle
dge
Pasteur
Science with useful focus
Pure science -universities
ool o
f Man
a Bohr
r fun
& fr
een
new
kno
w Pasteur
A li i i d
loan
Sch
o
EdisonWor
k fo
rfo
cus
on Application-oriented research - firmsRandom research
neither basic nor applied?
MIT
Sl
Work for $ & focus on useful knowledge
99Adapted from Donald Stokes, “Pasteur’s Quadrant” (1997)
on useful knowledge
What they got instead was a narrow focus on t tipatenting
agem
ent
ool o
f Man
alo
an S
cho
MIT
Sl
1010
U.S. University Response to the Bayh-Dole Actag
emen
too
l of M
ana
loan
Sch
oM
IT S
l
1111
About 10,000 patents granted per year to US universities on about US$30billion per year research funding ~ $3M/patent!
Recent recognition that Patenting & Licensing lik l t id ll % f i h $ ( 4%)likely to provide small % of univ research $ (~4%)
MIT th t f l li i ti
agem
ent MIT among the most successful licensing operation
But in 2006 MIT received only $30M in licensing revenues on a research base of $1.1B (95% Federal $)
ool o
f Man
a
Research base $1.1BN (2006)Invention Disclosures ~ 523
loan
Sch
o Invention Disclosures 523Patents filed ~ 321 (of which ~100 granted so far)Licenses executed ~ 121Start-ups created ~ 23 (eight with equity) ~one
$
MIT
Sl per $50M in annual funding
Office of 15 licensing professionals
1212
Recognition of a highly complex (& “inefficient” )process)
agem
ent
Of 14 institutions in MA only 5 make more than US$1M
ool o
f Man
a
per year in licensing after costs.
MA start-ups on an
loan
Sch
o MA start-ups on an ongoing and long-run research base of about $3.5BN from
$
MIT
Sl Federal $ annually &
running revenue of about $150M/yr
1313
Reorientation toward university as locus of ideas & l (& ) b d l i t i lpeople (& money)….broader role in entrepreneurial
ecosystem not on maximizing licensing revenue
agem
ent Funding
ool o
f Man
alo
an S
cho
MIT
Sl
IdeasPeople
1414
Ideas – Commercialization and licensing guided by faculty interests & maximizing impact onby faculty interests & maximizing impact on
commercial world not revenues
F lt P t ti i li ti & li i
agem
ent Faculty: Patenting, commercialization & licensing as way
to have an “impact”, excite students, create jobs, (& occasionally get rich!!)
ool o
f Man
a
University: Tech transfer is important for impact not as a dominant revenue stream (even at the large universities)
loan
Sch
o
TLO: Focused on efficient execution of licenses to allow for commercial outcomes and effective “bundling” of IP –seeking to avoid mistakes of 1990s e.g. Oncomouse
MIT
Sl
1515
Ideas – Licensing to start-ups structured to allow for effective commercialization strategyfor effective commercialization strategy
agem
ent
ool o
f Man
a
A123 – most recent successful MIT spinout to IPOFounded from idea from lab of Prof Yet-Min Chiang (Materials Science & Engineering) - new Li ion battery material
loan
Sch
o Science & Engineering) new Li ion battery materialPatented by MIT
– Exclusive license from MIT to A123 in 2001 - minimum guaranteed payments of $50,000 per year
MIT
Sl
– Single digit equity to university (sold on IPO) – with benefits shared 1/3:1/3:1/3 (worth $5.2M at IPO)
– Founding faculty gains additional “founders equity” depending on role in company
1616
p y– Co-founders (and investors) were alumni….
Analyzing entrepreneurial strength of MIT alumni & th i i t th l l t i ltheir impact on the local entrepreneurial economy
agem
ent
JobsPercent of Companies
Median Employees
Median Sales
($Millions)
Estimated Total
Employees
Estimated Total Sales ($Millions)
ool o
f Man
a More than 10,000 0.3% 15,000 1,523 1,339,361 1,389,075
1,000-
loan
Sch
o ,10,000 1.8% 1,927 308 1,043,932 235,532
Less than 1,000
97.9% 39 <1 900,001 226,671
MIT
Sl ,
Total 100.0% 155 <1 3,283,294 1,851,278
Over 25,000 active MIT alumni companies (as of 2003) – scale & impact
1717
Over 25,000 active MIT alumni companies (as of 2003) scale & impact dramatically > direct tech transfer (which amount to <500 companies). Like tech transfer companies, impact focused on <5% of companies (which create over 90% jobs and sales)
Proportion of Founders from Three Selected A d i A f MITAcademic Areas of MIT
(% all MIT alumni companies founded during the decade)
agem
ent
ool o
f Man
a
Decade of First Firm Founding 1950s 1960s 1970s 1980s 1990s
loan
Sch
o
EE & CS degrees 20.4 26.5 18.7 25.4 22.7
Life Sciences degrees 0 0 2 7 4 0 4 9 4 7
MIT
Sl Life Sciences degrees 0.0 2.7 4.0 4.9 4.7
Management degrees 16.7 14.3 13.5 13.8 15.8
1818
University Factors Important to Venture Founding*% Rating University Factors as Important in Venture Founding* (%)% Rating University Factors as Important in Venture Founding* (%)
agem
ent
ool o
f Man
a
Graduation Decade 1950s 1960s 1970s 1980s 1990sMIT’s Entrepreneurial Network 26 25 32 40 50
loan
Sch
o MIT Business Plan Competition 0 1 0 3 30MIT Entrepreneurship C t 3 1 2 1 12
MIT
Sl Center 3 1 2 1 12
Technology licensing activities 1 0 2 4 11
1919
*Survey respondents could check all relevant categories.
Amplifying MIT’s Internal Entrepreneurial EcosystemEntrepreneurial Ecosystem
agem
ent
ool o
f Man
alo
an S
cho
MIT
Sl
2020
Mentoring: Example of Coordination Across Ecosystemy
Deshpande Center
Entrepreneurship Center
Venture Mentoring Service
agem
ent Center Center Service
Name Catalyst Entrepreneur-in-Residence/Focus
Area
Mentor
ool o
f Man
a
Mentor-Team Ratio
1 to 1 1 to Many Many to 1
Time Frame Project Semester Indefinite
loan
Sch
o
Type of MentorTechnology
Commercialization Specialist
Founder Senior Exec
Expertise Domain Generalist & Generalist
MIT
Sl Expertise Domain Generalist &
DomainGeneralist
Teams Mentored Grantees (Faculty & R h )
Students Entire MIT C it
2121
Researchers) Community# of Mentors 30 5 100
MIT Entrepreneurship Center : To “educate” MIT men & women to be the next generation of successful entrepreneurs
creating innovation-based new ventures worldwide.
C b ilt “M t M ” M t i
agem
ent Courses built upon “Mens et Manus”:
• New Enterprises• iTeams• Energy Ventures
Mentoring :• Entrepreneurs-in-Residence• External network
Networking :• CEO Receptions (Fall & Spring)
• Entrepreneurial Finance• Biomedical Strategy• Product Development
ool o
f Man
a • E-Lab• G-Lab
CEO Receptions (Fall & Spring)• Brown Bag Luncheons (Weekly)• Web Site/Social Networks• Silicon Valley Study Tour
Conferences :
• Human Side of New Ventures• Tech Innovation Principles
loan
Sch
o • MIT Venture Capital Conference (December)• MIT Energy Conference (March)• MIT Private Equity Symposium (April)• MIT Sales Conference (April)
External Programs (Exec Ed) :
Clubs include:• $100K Entrepreneurship Competition• MIT Clean Energy Prize
MIT
Sl g ( )
• MIT Entrepreneurship Development Program (1 wk)
Thought Leadership :• MIT Entrepreneurship Review• Faculty and Distinguished Guest Speaker Series
• MIT Energy Club• MIT Global Startup Workshop• MIT Innovation Club• MIT Sales Club• MIT Sloan Entrepreneurs &Execution Club• MIT VCPE Club
2222
Matching people & ideas - i-Teams (15.371) – a t l l b t Sl & E i isemester –long class between Sloan & Engineering
DIGITAL PROGRAMMABLE APERTURE
agem
ent
“PROJECT” – real technology under development in MIT lab (typically with IP)
LCD screen in which select pixels are opened to capture varying
perspectivesShot 1
Shot 2
Shot 3
ool o
f Man
a
TEAM – mixed group of students (Sloan, Engineering, Science, Media Lab)
loan
Sch
o
ADVISORS – class faculty, a Catalyst (outside expert) & project PI & other members of the lab
MIT
Sl
GOAL - Evaluate the commercial potential of your technology project. Define commercialization strategy - technology &
2323
market execution plan.
BUILD – lasting network & expertise.
Conclusions:E h i U i it ’ E t i l I tEnhancing a University’s Entrepreneurial Impact
agem
ent Remove barriers to entrepreneurship from university rules
IDEAS: Orient university licensing office away from licensing
ool o
f Man
a y g y grevenue focus toward encouragement of new enterprises
PEOPLE: Build internal entrepreneurship education programs,
loan
Sch
o with integrated academic and practitioner faculty participantsPEOPLE: Engage alumni in university ties with faculty & students.
MIT
Sl
MONEY: If neighboring infrastructure is weak, university may need to supplemental “incubation” & $
TIES C t ti t d t b i l titi j t
2424
TIES: Create active student business plan competitions, project mentoring & other chances to match money, ideas & people
Entrepreneurial Impact: p pThe Role of MIT
agem
ent http://entrepreneurship.mit.edu/impact.php
orhttp://www kauffman org:80/newsroom/mit-
ool o
f Man
a http://www.kauffman.org:80/newsroom/mitentrepreneurs.aspx
loan
Sch
o With special thanks to Professor Edward Roberts for sharing his report results.
MIT
Sl
2525