Estonians are used to thinking of universities as places for learning or research. We don’t think as much about how universities should and can have a role in the economy, creating new jobs, services and products.
One can think of how the US has positioned universities as one of the economic pillars. John DesRosier spoke about his experience at TalTech’s innovation hub, Mektory.
In the lecture, DesRosier talked about how the Bayh-Dole Act links universities to economic growth.
The Bayh-Dole Act, passed in 1980, brought a tremendous change. Certain conditions allow small companies, NGOs, and universities to obtain patents for federally funded inventions. Companies used to find it hard to secure exclusive patent rights, so they had little incentive to transform ideas into marketable products.
That meant university culture changed to make successful business relationships possible. Back then, the federal government funded some 70 percent of research. Universities took that as an investment. Universities realized they wanted more than just publications. They wanted to make money from ideas, products, and services. They also wanted to create companies and jobs through science.
Concerns about international competitiveness influenced the creation of the Bayh-Dole Act. They realized traditional industries like agriculture can’t generate much economic growth. Fresh growth comes from new ideas and those ideas are born in universities.
Teaching shifted to training for jobs, science focused on new ideas and market potential. It encouraged researchers to become entrepreneurs. “Research data and materials have become property owned by the university. The university treats researchers like innovators. As a result, the line between businesses and universities has blurred,” DesRosier remarked.
The model is quite simple. Researchers primarily aim to create an intellectual property that they can patent or license. Industry buys the patents and licenses, and part of the proceeds goes to the researcher. Focusing on intellectual property has seemed most sensible, as manufacturing can be really expensive. Startups need unique ideas, as large companies focus on sufficiently proven ideas.
The US universities offer researchers seminars and programs, pitches and subsidise their companies. They also create communities and spaces where people can collaborate and develop together. Last year alone, US universities applied for 16 857 patents, created 850 new products, and started 998 startups.
“Relationships are key in finding licensees. It means entrepreneurs and scientists need to talk to each other. Researchers focus on ideas and entrepreneurs in markets. So they need to get together to discover new opportunities,” DesRosier said, emphasizing that the government should also be involved.
He said that Estonia and TalTech have every opportunity to commercialize science at a greater level.
Kaja Kuivjõgi, head of TalTech’s strategy office, stated that creating new technologies to tackle challenges is increasingly crucial. Technology and knowledge transfer in universities and other R&D offices.
Full lecture is available here: https://taltech.ee/uudised/avalik-loeng-universitys-role-knowledge-economy