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3 Universities as Innovation Drivers
Pages 49-68

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From page 49...
... he presence of research universities is now widely viewed as a necessary (if insufficient) condition to bring about innovation-based economic development of regions."3 Illustrating the impact a single research university can have on a region, in 2004 alone MIT produced 133 patents, launched 20 startup companies, and spent $1.2 billion in 1 "Premier universities are at the heart of just about every high-tech success story: Stanford University and UC Berkeley in the Silicon Valley; Boston-area institutions such as Harvard and the Massachusetts Institute of Technology that helped draw researchers to the Route 128 Corridor; the University of Texas and its support of Austin's booming computer industry." "Universities Need to Court Top-Tier Researchers, The Plain Dealer March 21, 2002.
From page 50...
... The Federal Technology Transfer Act of 1986 requires federal laboratories to actively seek opportunities to transfer technology to industries, universities, and state and local government. The National Competitiveness Technology Transfer
From page 51...
... . 8 Denis Gray, "Cross Sector Research Collaboration in the USA: A National Innovation System Perspective," Science and Public Policy 38(2)
From page 52...
... A faculty member of North Dakota State University in Fargo responsible for university extension services said in 2007 with respect to this language, "You read that today and it seems so second nature to us, but it was revolutionary in the history of the world." "Evolution of Extension," Grand Forks Herald October 14, 2007. 16 Deepak Hegde, "Public and Private Universities: Unequal Sources of Regional Innovation?
From page 53...
... Texas A&M's Dwight Look College of Engineering works through services organizations that include Texas Transportation Institute, Texas Engineering Experiment Station, and Texas Engineering Extension Service. Finally, Texas A&M operates a College of Medicine and a college of Veterinary Medicine and Biomedical Sciences.
From page 54...
... One of MIT's early presidents, John D Rankle, arranged for advanced students to work in the machine shop of the Boston Navy Yard and take field trips to local manufacturing facilities.26 Following a protracted internal controversy among leading faculty members about MIT's proper relationship with industry MIT, after 1920, became deeply engaged with local industry -- over a third of its teaching staff was actively engaged in research, testing, and commercial analysis for industry and most engineering department chairs ran consulting firms in downtown Boston.27 The General Electric Company recruited key researchers 23 Luis Proenza, "Relevance, Connectivity, and Productivity: The Akron Model,: in National Research Council, Building the Ohio Innovation Economy: Summary of a Symposium, Washington, DC: The National Academies Press, 2013.
From page 55...
... In the years after World War I, the University of Illinois offered courses in architectural engineering, municipal and sanitary engineering, railway engineering, civil and mechanical engineering, and ceramic engineering. "Nearly every industry and government agency in Illinois has its own department at the state university in Urbana-Champaign."31 The University of Minnesota operated a sustained program from the end of World War I through the early 1960s to develop a technological response to the depletion of the state's high-yield iron ores in the Mesabi Range and the need to develop its vast reserves of ores with lower iron content.32 28 Christophe Lecuyer, "Patrons and a Plan," in David Kaiser, ed., Becoming MIT: Moments of Decision, op.
From page 56...
... In perhaps the most famous example of University-led economic development, Stanford University played a central role in the emergence and flourishing of Silicon Valley, a dynamic which is examined in the Annex of this report. Universities also played a key role in the success of research Triangle Park in North Carolina, also described in the Annex.
From page 57...
... 447. 38 Denis Gray, "Cross Sector Research Collaboration in the USA: A National Innovation System Perspective," Science and Public Policy 38(2)
From page 58...
... found that during the period from 1992 to 2010, the proportion of state outlays as a percentage of public universities' total revenue fell from 38 percent to 23 percent, with the steepest decline occurring in the 2002 to 2010 time frame. States have confronted a variety of pressures that have contributed to this decline, including economic recession, rising costs, and the demands of non-higher education related mandated requirements.
From page 59...
... On the other hand, as Senators Inouye and Akaka pointed out in their conference keynotes at the National Academies symposium on Building the Hawaii Innovation Economy, the islands are strategically located as America's ‘front door' to the vibrant economies of East Asia and are home to unique geographical features and land and marine life, as well as a rich cultural heritage.45 40 National Science Board, Diminishing Funding and Rising Expectations, op.
From page 60...
... If we were able to master this new and emerging field, we would be a 46 See the summary of remarks by Neil Abercrombie, Governor of Hawaii as well as the summary of the presentation by Dr. Carl Bonham, University of Hawaii Economy Research Organization, "State and Regional Economic Context," National Research Council, Building Hawaii's Innovation Economy: Summary of a Symposium, January 13-14, 2011.
From page 61...
... a non-profit specializing in the commercialization of defense and homeland security technologies, and by UH.50 Fostering Start-ups A medical researcher at the University of Hawaii observed in 2010 that "intellectual property developed by UH faculty is an inadequately tapped resource with enormous potential for economic benefit." The UH Upside fund, the University's venture capital fund, is seeking to address that problem through support for start-ups commercializing technologies developed at the University. Fund manager Barry Weinman commented that "UH has a lot of research dollars that go in and then don't come out for commercialization.
From page 62...
... Start up funding was provided by HTDV and Sopogy Inc., a renewable energy company based in Hawaii.56 necessary to get to a point where we can use it as a diagnostic tool in medicine." "Venture Capital Fund Shines Light on UH," Honolulu Star-Advertiser December 7, 2010. 54 Upside Fund Director Barry Weinman commented that "The UH Foundation was intrigued by KinetiCor, not only for its extraordinary technology, but because of the huge financial upside that could be achieved by commercializing UH's intellectual property.
From page 63...
... "while other countries innovate cheaper ways."58 UH plans to be the first university in the world with dedicated rocket launch capability for satellites built and operated by its faculty and students.59 Kauai Community College collaborates with HSFL in 57 Presentation by Hank Wuh, National Research Council, Building Hawaii's Innovation Economy: Summary of a Symposium, op.
From page 64...
...  The second launch, being built by UH faculty and graduate students, will conduct a thermal and visible image study of the Earth. Ultimately the UH satellite launch program is expected to yield innovations in the areas of cost reduction, risk reduction and capability of rapid response -- "the involvement of the University in the program promises not only a new economic driver for Hawaii but also a focus for developing the high-tech workforce."62 UH Astronomy Activities While Hawaii's geography presents challenges, it also gives rise to opportunities in areas where the state enjoys natural advantages, which have given rise to actual and prospective innovation clusters.
From page 65...
... 6-13. 65 "Community Colleges' Cash Crunch Threatens Obama's Retraining Plan," Reuters March 5, 2013; "We already Knew the Value of 2-Year Schools," Canandaigua Daily Messenger October 12, 2010.
From page 66...
... Local businesses complained in the late 1990s about the shortage of certified welders, and in 2007, the college secured a $4.9 million grant from the National Science Foundation to establish a center for welding education.72 For many years, LCCC pursued the funding necessary to open a testing center for sensors, a goal which was achieved with a $5.5 million award from the state of Ohio in 2010.73 LCCC partnered with other institutions to cut costs and enhance its curriculum.74 In 2012, LCCC's "Transformations" program for computerized Numerically Controlled Machining reported a placement rate of over 90 percent of its participants within 3 months of graduation.75 The GLIDE Incubator In 2001, LCCC collaborated with the local Chamber of Commerce and the Lorain County commissioners to form the Great Lakes Innovation and Development Enterprise ("GLIDE") , a business incubator intended to "try to wrap good business processes around entrepreneurs who had good product or business ideas." In the decade that followed 2001, GLIDE worked with over 1,900 entrepreneurs and incubated 65 companies, 62 of which were still in 67 Roy Church, "Stimulating Entrepreneurship: The Lorain County Model," Building the Ohio Innovation Economy: Summary of a Symposium, op.
From page 67...
... Based on metrics developed by the Ohio Third Frontier Program, the 3.8 million invested in the Fund through September 2010 yielded a "return on investment" of $42 million in follow-on investments.80 The Financial Challenge While the President and the business community are calling for an expanded role for community colleges, steep cuts in the level of state funding for 2-year institutions is forcing many of them to raise tuition and cut faculty 76 GLIDE invests at two levels: $25,000 for the "imagining" stage and completion of research, and $100,000 to mature the business, which must be matched 1:1 by the entrepreneur and repaid after 5 years. Roy Church, "Lorain County Model," op.
From page 68...
...  The decline in state funding for public research universities and community colleges represents a fundamental threat to the nation's capacity to create and capture the fruits of innovation. 81 A 2013 report by the nonprofit Public Policy Institute of California indicated that in the wake of $1.5 billion in state budget cuts, between 2007 and 2012 the state's 112 2-year colleges experienced a decline in enrollment of 500,000 students (from 2.9 million to 2.4 million)


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