SUMMARY

  This note sets out various models of which Gatsby is aware. These include:

(a)  University innovation companies;

(b)  University-based bursaries: these may be linked to one department allowing it to develop industrially relevant products and processes, or it may allow members of staff to be released from their other duties to take forward an innovation to the point at which the company could be spun off with seed funding;

(c )   Inter-university: where a number of universities join together in one particular technology;

(d)  Regional: where a number of universities join together in a particular region working closely with the region's industry.

(e)  Commercial and independent technology transfer companies which would be outside the remit of Gatsby.

  A Fraunhofer-like model was developed between BHRA and Cranfield about twenty years' ago and more recently has appeared in the form of Faraday centres. The teaching company scheme clearly provides a similar model.

  Gatsby is encouraging similar developments through Cambridge University's Institute for Manufacturing which complement the University's strength in manufacturing and industrial links.

  Key to all of this are the individuals involved, and the need to identify, groom and encourage suitable individuals is at the heart of the Gatsby funded Royal Academy of Engineering education Continuum. In particular there is a need to encourage management skills in life scientists engaged in industrial developments.

  In addition, the Trustees: have commissioned an evaluation of the technology transfer initiatives they are funding; have run jointly with CVCP a workshop on key issues; have provided funding for a delegation from CVCP to visit the USA to identify lessons that can be learned from there.

1.  BACKGROUND

  The Foundation has given a clear steer of its interest in supporting academic institutions to help them restructure so as to relate more effectively to the non-academic world.

  Their interest in technology transfer is a logical development of their initiative at the John Innes Centre. Plant Bioscience Ltd (PBL) is a technology interaction and intellectual property management company, working in the field of plant biotechnology. Established in February 1994, it is jointly and equally owned by Gatsby and the John Innes Centre. Theo do Bock (Chief Executive Officer of PBL) has been key to the early success.

  There are other possible models for technology transfer and it is unlikely that there will be a single "best" model. Some are:

(a)  University based

  Many universities have industrial liaison and technology transfer units. Their effectiveness is very varied and is likely to be dependent on the individual heading the unit and his/her fruitful collaboration with lively groups within the university and ability to relate to industry, especially to medium sized firms. There is a serious suspicion that such units may confuse the industrial sponsor, be seen as superfluous to lively engineering departments which are already working with industry, and may actually inhibit industrial liaison. It is clearly essential, therefore, in any development, that the details of the unit are right. Gatsby has provided the funding for Southampton University to develop such a free-standing company which has good links with the ILO office and appears to be achieving success.

(b)  University based, but linked to one department or one technology

  The chances of success may, in some cases, be greater where linkage is with one department or one technology, since the department owns the activity and the head of department is likely to be the chairman of both the academic activity and the technology transfer activity. In this case the unit will be able to confine itself to one technology and to liaise closely with the department to ensure that existing academic/industry links are not upset. PBL Ltd appears to be a good example of this approach. However, the flow of income (royalties or a percentage of sponsored research costs) may not be sufficient to cover the running costs of the technology transfer organisation if based on a single Department. (Some experts estimate that research expenditure of £20 million per annum is the minimum necessary to provide a viable business).

  An alternative approach is being tried at Nottingham University - in their Chemistry department. Funding from Gatsby underwrites the salary of an industrial links fellow enabling industrial applications of super critical fluids to be developed.

(c)  Inter-University

  A centre which links one technology across several universities could be a very fruitful approach in that it allows industry to identify the most appropriate university for its needs, and encourages collaboration between universities so that they develop their strengths and are less tempted to duplicate what is already happening elsewhere.

  Calyx Plantech Ltd, a joint universities business development for plant science, is such a development bringing together the universities of Leeds, Warwick, Birmingham, York, Glasgow and Manchester.

  The company's first objects clause is: the furtherance, cultivation and promotion of plant science and learning by facilitating and enabling universities to:

(a)  identify, protect, publish or otherwise enable exploitation for the public benefit of relevant intellectual property;

(b)  secure funding for plant science;

(c )  foster beneficial relationships between universities and commerce and industry.

  Gatsby has provided grants to the participating universities to initiate this on condition that they put in their own funds also. The success of this venture has yet to be proved.

(d)  A regional initiative to enable universities to contribute to the development of a region

  This is similar to (c), but concentrates on one geographical region. It would have the merit of a geographically coherent group of universities serving local industry, but obviously not confined to local industry. As with all these ventures success is heavily dependent on the right people with the vision and energy to take it forward.

(e)  Commercial and independent technology transfer company

  This would not normally be charitable, nor necessarily single discipline. Some Science Parks and other organisations fall into this category and enable small start up businesses to develop with support from the infrastructure of the science park.

  This may also offer the most effective way for large companies to spin off SMEs dedicated to new developments. Small companies are often a more fertile ground for new products, and may still be bought back by the large companies at a later date.

  This could not receive Gatsby's support (being a charity).

  It is clear that any successful development will depend critically on the person appointed to lead it and on the willingness of the university staff and the research scientists to work together.

2.  FRAUNHOFER MODEL

  Various initiatives in this country have some similarities to the, apparently, very successful Fraunhofer model.

  Cranfield has pioneered very strong industrial links at all levels from new technology innovation to the supply of sound engineering consultancy to industry. With BHRA (on the Campus) it set up the Fluid Engineering Unit which built a successful interface between this Contract Research organisation and the University - providing consultancy, training and effective technology transfer.

  The Faraday centres appears to offer a similar model.

  The Teaching Company Scheme provides, in many cases, very good linkage between university staff know-how and industry.

  Gatsby is exploring another, somewhat similar, approach. This is based in Cambridge Engineering's Manufacturing Institute. It complements other valuable mechanisms already in place in Cambridge. As well as funding for two manufacturing courses, the Advanced Course in Design Manufacture and Management and a new Leaders Programme at Cambridge, Gatsby has provided for the setting up of an Industrial Links Unit. This unit will have, as its initial objectives:

—  developing the database of industrial links across the manufacturing group

—  co-ordinating and administering the industrial events and meetings already happening and starting up

—  providing an industry-friendly single contact point where industrial needs and requirements can be handled efficiently.

  The Unit has linked to it various industrial clubs. One new one is bringing together instrumentation companies. The team involved with this club has so far visited over fifty companies and identified, with the companies, problems in manufacture and technology which can either be undertaken as a student project, or as a project for a research engineer. To provide this varied service the Instrumentation Group has recruited a research engineer. The strength of this approach is that through the manufacture and production functions Cambridge can gain the confidence of the company, and with the company can start to define future markets and products. The expertise for the products may come from Cambridge or elsewhere.

  Gatsby is also exploring the development of:

(a)  matched funding for Cambridge researchers working with industry;

(b)  training for entrepreneurs jointly between Cambridge university institutes of manufacturing and management and a local incubator;

(c )  training of master technicians with Greenwich University, two FE colleges and others.

  These are in their early days but are exciting possible models for the future encouragement of entrepreneurship and innovation.

3.  ENCOURAGING EARLY LEADERSHIP AND RESPONSIBILITY

  With the Royal Academy of Engineering Gatsby is exploring the possibility of a placement programme for very bright engineers and biotechnologists to encourage them into either setting up their own company to develop new and innovative technology or moving into positions of early responsibility. The scheme will enable those involved to develop their skills and careers appropriately at the same time. Collaboration with high technology consultancy and other industrial companies together with incubator centres should result in the first placements.

  This initiative highlights a key recognition by the trustees: that most of the success of technology transfer rests with the identification of the right people.

4.  EVALUATION

  The trustees would like to obtain more information on successful university technology transfer and the ingredients for this. They also consider that benchmarking would help assess relative success and would also be useful to the universities. They have commissioned an evaluation of the initiatives which they are funding.

5.  TECHNOLOGY TRANSFER WORKSHOP: 23-24 JANUARY 1998 (IN COLLABORATION WITH CVCP)

  At this workshop, these and other initiatives were considered and a brief report has been produced to identify possible actions resulting from the workshop.

6.  CVCP DELEGATION TO THE USA

  Gatsby provided funding for a group of VCs and directors of university industrial liaison units to visit MIT, Harvard, Boston University, University of California at San Diego and San Francisco, Caltech and Stanford. A report has been produced by CVCP.

3 February 1999