Economic Development America
Competing Globally - Growing Regional Economies - Creating Jobs Winter 2005
In this issue:

A Message from Carlos Gutierrez

Building Innovation-Driven Regional Economies in Small and Mid-Sized Metro Centers

Creating Systems for Entrepreneur Support

Innovation and Entrepreneurship in Rural America

Kentucky’s Rural Innovation and Entrepreneurship Program: An In-Depth Look at How It Works


Special Section: Technology Transfer

The Importance of Networks and Capacity Building in Technology Transfer and Commercialization

Best Practices in University Technology Transfer

A 21st Century Model for Engineering Education


Turning the Corner: Trends in Angel Investing

Growing Ohio’s High Performance Economy

Replanting the Economic Forest in Northeast Ohio



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Technology Transfer: Accelerating Economic Development Through University Technology Transfer (cont.)

  • Networking is an integral part of the culture: Part of the entrepreneurial culture inside and outside the university is networking. Opportunities for entrepreneurs to network with potential investors, potential corporate clients or partners, service providers, and other entrepreneurs is a critical ingredient well known to Stanford students in Silicon Valley, MIT students in Boston, and Cambridge students in the United Kingdom. Often the university technology transfer and licensing offices also encourage and facilitate interaction with venture capitalists, law firms, and corporations early in the transfer process.

  • Early-stage capital is a critical ingredient in launching university start-ups: Entrepreneurs from most universities successful in generating start-ups have access to angel and seed capital. In addition, universities and intermediary organizations assist entrepreneurs with business plan development and offer entrepreneurs opportunities to showcase and network with potential investors. Where early-stage capital does not exist, universities, public and private sectors step in to create it, often seeding private funds that leverage additional monies. Angel networks also play an increasingly important role in spawning early-stage firms. Some examples of “pre-seed”/seed funding vehicles are Georgia Tech’s VentureLab, St. Louis’s BioGenerator, Pittsburgh’s Idea Foundry, and state “fund-to-fund” programs found in Indiana, Missouri, and Pennsylvania.

  • Innovation centers can provide a focal point for technology-based activities: In some communities and states, innovation centers often are directly or indirectly linked to universities, involve corporate participation and provide a variety of services and linkages including pre-seed/seed capital, Executives-in-Residence programs and business assistance for technology start-ups. One example is Pennsylvania’s Life Sciences Greenhouses.



  • Research parks can be a boost for areas not known for technology. UW-M has helped build an entrepreneurial presence with its University Research Park, shown in this aerial view.
    Incubators and research parks can be important in areas not known for technology: Many model universities have incubators and research parks. This is particularly important for universities that have had to build an entrepreneurial presence, such as UW-M and Purdue. Their research parks are now quite successful, each employing several thousand high-tech workers and adding a technology presence where there once was none.

  • Private corporations and foundations can play a major role: In many communities and states, private corporations and foundations have played a major role in stimulating science and technology research and promoting regional economic outcomes. Corporations play a role not only by endowing university chairs and funding collaborative R&D, but also by participating in entrepreneurial activities and funding technology-based initiatives in the community. In St. Louis, for example, the Danforth Foundation, Monsanto, and the McDonnell family have funded substantial initiatives, and in Pittsburgh, the Heinz Endowments and other corporate contributors have provided the majority of funding for the Pittsburgh Life Sciences Greenhouse.

  • No quick fixes: Most technology transfer and commercialization efforts at successful universities and the resulting entrepreneurial and economic development phenomena that have grown around those universities have taken decades to accomplish. Moreover, the technology transfer field is still relatively new and evolving. Often, results – particularly short-term results – are difficult to demonstrate and to quantify. Academic, public and private decision-makers should be cognizant of these facts and build into programs the flexibility to experiment, as well as allow them the time to mature and evolve.

In regions benefiting from university technology transfer, academic and community leaders recognized that by leveraging R&D and entrepreneurial resources they could create new opportunities for both academic excellence and economic growth. Not every community has a Stanford and can create a Silicon Valley. But public and private leaders can work together to identify, strengthen and leverage their own resources that enhance innovation-based economic opportunities.


Innovation Associates provides economic development and technology transfer services, helping governments, organizations, universities and the private sector increase their productivity and growth by applying innovative techniques and best practices.

Note: Under a National Science Foundation grant, Innovation Associates also is examining technology and entrepreneurial related exemplary practices in smaller universities and community colleges, and related community initiatives. If you believe you have an exemplary practice, please contact Innovation Associates at ia@innovationassoc.com.


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