The Potential of Technology Transfer | David Allen

I’m gonna talk to you tonight about one

I’m gonna talk to you tonight about one aspect of universities I’ve been doing

aspect of universities I’ve been doing

aspect of universities I’ve been doing this for about 25 years the story is

this for about 25 years the story is

this for about 25 years the story is about transferring results of research

about transferring results of research

about transferring results of research into the marketplace it’s the

into the marketplace it’s the

into the marketplace it’s the continuation of research this field is

continuation of research this field is

continuation of research this field is called technology transfer and I think

called technology transfer and I think

called technology transfer and I think we can do a better job at it what’s the

we can do a better job at it what’s the

we can do a better job at it what’s the difference between these mice their size

difference between these mice their size

difference between these mice their size the sizes due to the production of

the sizes due to the production of

the sizes due to the production of growth hormone the larger Mouse produces

growth hormone the larger Mouse produces

growth hormone the larger Mouse produces more smaller amounts less the mouse in

more smaller amounts less the mouse in

more smaller amounts less the mouse in the middle from this experiment

the middle from this experiment

the middle from this experiment basically is the control or the natural

basically is the control or the natural

basically is the control or the natural stage this work was done in the late

stage this work was done in the late

stage this work was done in the late 1980s in the laboratories of John Cobb

1980s in the laboratories of John Cobb

1980s in the laboratories of John Cobb check and when Chen at Ohio University

check and when Chen at Ohio University

check and when Chen at Ohio University what they did is they took the mouse

what they did is they took the mouse

what they did is they took the mouse growth hormone molecule genetically

growth hormone molecule genetically

growth hormone molecule genetically modified it inserted it into the embryo

modified it inserted it into the embryo

modified it inserted it into the embryo and then transplanted the embryo into a

and then transplanted the embryo into a

and then transplanted the embryo into a mother host Mouse when the mice were

mother host Mouse when the mice were

mother host Mouse when the mice were born they exhibited these

born they exhibited these

born they exhibited these characteristics as they grew up pretty

characteristics as they grew up pretty

characteristics as they grew up pretty cool but so what a couple years after

cool but so what a couple years after

cool but so what a couple years after they did this we got involved in

they did this we got involved in

they did this we got involved in pursuing and applying for a patent and

pursuing and applying for a patent and

pursuing and applying for a patent and then in 1992 started a company based

then in 1992 started a company based

then in 1992 started a company based upon this technology with some

upon this technology with some

upon this technology with some entrepreneurs and some people from the

entrepreneurs and some people from the

entrepreneurs and some people from the lab the purpose of the company was to

lab the purpose of the company was to

lab the purpose of the company was to create a drug for hecarim eglee

create a drug for hecarim eglee

create a drug for hecarim eglee acromegaly is called human giantism you

acromegaly is called human giantism you

acromegaly is called human giantism you may know that from at this time the the

may know that from at this time the the

may know that from at this time the the professional wrestler on Andre the Giant

professional wrestler on Andre the Giant

professional wrestler on Andre the Giant seven foot four and his size was due to

seven foot four and his size was due to

seven foot four and his size was due to an overproduction

an overproduction

an overproduction of growth hormone couple years after we

of growth hormone couple years after we

of growth hormone couple years after we started that company it was purchased by

started that company it was purchased by

started that company it was purchased by a pharmaceutical company and that

a pharmaceutical company and that

a pharmaceutical company and that company pursued clinical trials for the

company pursued clinical trials for the

company pursued clinical trials for the drug in 2003 it was approved by the Food

drug in 2003 it was approved by the Food

drug in 2003 it was approved by the Food and Drug Administration and they started

and Drug Administration and they started

and Drug Administration and they started marketing the drug today it’s a common

marketing the drug today it’s a common

marketing the drug today it’s a common part of the medication for acromegaly

part of the medication for acromegaly

part of the medication for acromegaly that’s technology transfer taking

that’s technology transfer taking

that’s technology transfer taking something from the laboratory moving it

something from the laboratory moving it

something from the laboratory moving it through protecting it and moving it into

through protecting it and moving it into

through protecting it and moving it into a company and into the marketplace I’m

a company and into the marketplace I’m

a company and into the marketplace I’m going to talk about another story that

going to talk about another story that

going to talk about another story that was in a later part of my career your

was in a later part of my career your

was in a later part of my career your grandmother comes to visit you she’s not

grandmother comes to visit you she’s not

grandmother comes to visit you she’s not well she takes a couple of pills for

well she takes a couple of pills for

well she takes a couple of pills for some diseases that she has while she’s

some diseases that she has while she’s

some diseases that she has while she’s visiting you she gets sicker you take

visiting you she gets sicker you take

visiting you she gets sicker you take her to the doctor the doctor does some

her to the doctor the doctor does some

her to the doctor the doctor does some tests comes back and says sorry to say

tests comes back and says sorry to say

tests comes back and says sorry to say your grandmother’s developing another

your grandmother’s developing another

your grandmother’s developing another disease but there’s a drug that’s been

disease but there’s a drug that’s been

disease but there’s a drug that’s been recently approved and it really slows

recently approved and it really slows

recently approved and it really slows the progression of that disease so the

the progression of that disease so the

the progression of that disease so the doctor writes out a script you take it

doctor writes out a script you take it

doctor writes out a script you take it to the pharmacy the pharmacist fills it

to the pharmacy the pharmacist fills it

to the pharmacy the pharmacist fills it you’re in your car on the way home and

you’re in your car on the way home and

you’re in your car on the way home and almost sudden there’s a call on your

almost sudden there’s a call on your

almost sudden there’s a call on your grandma’s phone picks it up it’s the

grandma’s phone picks it up it’s the

grandma’s phone picks it up it’s the pharmacist wait don’t take that drug

pharmacist wait don’t take that drug

pharmacist wait don’t take that drug call your doctor

call your doctor

call your doctor what’s going on well the field is called

what’s going on well the field is called

what’s going on well the field is called medication management and about 13 14

medication management and about 13 14

medication management and about 13 14 years ago Professor Kevin bosun in the

years ago Professor Kevin bosun in the

years ago Professor Kevin bosun in the College of Pharmacy at the University

College of Pharmacy at the University

College of Pharmacy at the University Arizona was studying medication

Arizona was studying medication

Arizona was studying medication management in particular looking at drug

management in particular looking at drug

management in particular looking at drug interaction going through the literature

interaction going through the literature

interaction going through the literature and all the data on drug interaction he

and all the data on drug interaction he

and all the data on drug interaction he and his colleagues developed a software

and his colleagues developed a software

and his colleagues developed a software program we commercialized that

program we commercialized that

program we commercialized that technology by licensing it to a company

technology by licensing it to a company

technology by licensing it to a company that was created in 2013 and a few years

that was created in 2013 and a few years

that was created in 2013 and a few years later just not fairly recently that

later just not fairly recently that

later just not fairly recently that company was purchased by

company was purchased by

company was purchased by a public company at the time of that

a public company at the time of that

a public company at the time of that purchase the company employed 250 people

purchase the company employed 250 people

purchase the company employed 250 people and managed drug interaction medication

and managed drug interaction medication

and managed drug interaction medication management for 50 million people that’s

management for 50 million people that’s

management for 50 million people that’s technology transfer moving from the

technology transfer moving from the

technology transfer moving from the laboratory and benefiting people so

laboratory and benefiting people so

laboratory and benefiting people so where do these wicked cool inventions

where do these wicked cool inventions

where do these wicked cool inventions come from every year the federal

come from every year the federal

come from every year the federal government supports research at

government supports research at

government supports research at universities to the tune of 30 billion

universities to the tune of 30 billion

universities to the tune of 30 billion dollars the research is typically funded

dollars the research is typically funded

dollars the research is typically funded by the research agencies like the

by the research agencies like the

by the research agencies like the National Institutes of Health the

National Institutes of Health the

National Institutes of Health the National Science Foundation and others

National Science Foundation and others

National Science Foundation and others faculty apply for that research by

faculty apply for that research by

faculty apply for that research by submitting proposals the proposals are

submitting proposals the proposals are

submitting proposals the proposals are reviewed and about 10 percent of those

reviewed and about 10 percent of those

reviewed and about 10 percent of those proposals are funded and that’s a grant

proposals are funded and that’s a grant

proposals are funded and that’s a grant to the University to do the research and

to the University to do the research and

to the University to do the research and that’s how researchers is funded at in

that’s how researchers is funded at in

that’s how researchers is funded at in most universities so what do we get from

most universities so what do we get from

most universities so what do we get from that what do we as taxpayers get from 30

that what do we as taxpayers get from 30

that what do we as taxpayers get from 30 billion dollars for things first and I’m

billion dollars for things first and I’m

billion dollars for things first and I’m sure you’ve heard of this the phrase

sure you’ve heard of this the phrase

sure you’ve heard of this the phrase publish or perish there are 1 million

publish or perish there are 1 million

publish or perish there are 1 million articles in technical scientific and

articles in technical scientific and

articles in technical scientific and medical journals published by faculty

medical journals published by faculty

medical journals published by faculty u.s. universities there are reports of

u.s. universities there are reports of

u.s. universities there are reports of research there reports of the findings

research there reports of the findings

research there reports of the findings of research this information goes into

of research this information goes into

of research this information goes into the body of knowledge an expanding body

the body of knowledge an expanding body

the body of knowledge an expanding body that you and I now can access through

that you and I now can access through

that you and I now can access through the internet the second are graduates

the internet the second are graduates

the internet the second are graduates the people that are doing the work in

the people that are doing the work in

the people that are doing the work in the laboratories are typically graduate

the laboratories are typically graduate

the laboratories are typically graduate students calling them research

students calling them research

students calling them research assistants when they complete their

assistants when they complete their

assistants when they complete their masters and doctoral degrees they move

masters and doctoral degrees they move

masters and doctoral degrees they move out into the workforce they are the

out into the workforce they are the

out into the workforce they are the knowledge workers of our advanced

knowledge workers of our advanced

knowledge workers of our advanced technology industries in this country a

technology industries in this country a

technology industries in this country a third is intellectual property there was

third is intellectual property there was

third is intellectual property there was a law passed in 1980 at the federal

a law passed in 1980 at the federal

a law passed in 1980 at the federal level

level

level that says that the inventions that are

that says that the inventions that are

that says that the inventions that are created from federally funded research

created from federally funded research

created from federally funded research are owned by the University in 2015

are owned by the University in 2015

are owned by the University in 2015 there were 25,000 invention reports of

there were 25,000 invention reports of

there were 25,000 invention reports of research being done at the University

research being done at the University

research being done at the University reported to technology transfer offices

reported to technology transfer offices

reported to technology transfer offices all universities have technology

all universities have technology

all universities have technology transfer offices these reports are

transfer offices these reports are

transfer offices these reports are basically a sense that someone in the

basically a sense that someone in the

basically a sense that someone in the lab perceives the ability or the

lab perceives the ability or the

lab perceives the ability or the application of something that’s going on

application of something that’s going on

application of something that’s going on there outside of the lab usually there

there outside of the lab usually there

there outside of the lab usually there are kernel of an idea that has some data

are kernel of an idea that has some data

are kernel of an idea that has some data and then what we do is we work to

and then what we do is we work to

and then what we do is we work to protect that through patents the fourth

protect that through patents the fourth

protect that through patents the fourth thing is when we license this technology

thing is when we license this technology

thing is when we license this technology two types of companies receive

two types of companies receive

two types of companies receive technology from universities companies

technology from universities companies

technology from universities companies that are already in place that are

that are already in place that are

that are already in place that are looking to gain a competitive advantage

looking to gain a competitive advantage

looking to gain a competitive advantage by taking that technology in and then

by taking that technology in and then

by taking that technology in and then developing it and the development

developing it and the development

developing it and the development periods anywheres from five to ten years

periods anywheres from five to ten years

periods anywheres from five to ten years and then challenging the incumbent

and then challenging the incumbent

and then challenging the incumbent company in that marketplace the other is

company in that marketplace the other is

company in that marketplace the other is startup companies there were a thousand

startup companies there were a thousand

startup companies there were a thousand startup companies created in 2015 from

startup companies created in 2015 from

startup companies created in 2015 from lights from technology at universities I

lights from technology at universities I

lights from technology at universities I think we can do better than that

so when I think of these inventions my

so when I think of these inventions my metaphor is looking out across the

metaphor is looking out across the

metaphor is looking out across the horizon if you’re on the beach you’re

horizon if you’re on the beach you’re

horizon if you’re on the beach you’re looking across the ocean and you’re

looking across the ocean and you’re

looking across the ocean and you’re trying to figure out what the hell’s

trying to figure out what the hell’s

trying to figure out what the hell’s going on out there is that a oil

going on out there is that a oil

going on out there is that a oil platform that an ocean liner well you

platform that an ocean liner well you

platform that an ocean liner well you can stand there and you can wait and you

can stand there and you can wait and you

can stand there and you can wait and you can see and maybe they move off maybe

can see and maybe they move off maybe

can see and maybe they move off maybe it’s stationary or you can pick up a

it’s stationary or you can pick up a

it’s stationary or you can pick up a pair of binoculars amplify the situation

pair of binoculars amplify the situation

pair of binoculars amplify the situation and scope it out that’s akin to what we

and scope it out that’s akin to what we

and scope it out that’s akin to what we do when these invention

do when these invention

do when these invention come in to us in a fairly embryonic

come in to us in a fairly embryonic

come in to us in a fairly embryonic state what we do is there’s two elements

state what we do is there’s two elements

state what we do is there’s two elements that are important in our analysis first

that are important in our analysis first

that are important in our analysis first is that technology as evident in the

is that technology as evident in the

is that technology as evident in the research patentable can we develop

research patentable can we develop

research patentable can we develop commercial valid claims from that

commercial valid claims from that

commercial valid claims from that technology and kennen issue as a patent

technology and kennen issue as a patent

technology and kennen issue as a patent ii we look at the marketplace and I

ii we look at the marketplace and I

ii we look at the marketplace and I don’t mean the marketplace today

don’t mean the marketplace today

don’t mean the marketplace today remember these technologies take after

remember these technologies take after

remember these technologies take after licensing five to ten years to get to a

licensing five to ten years to get to a

licensing five to ten years to get to a point of a product we have to look at

point of a product we have to look at

point of a product we have to look at the market in the future what are the

the market in the future what are the

the market in the future what are the characteristics of that market what are

characteristics of that market what are

characteristics of that market what are the needs that market will have when the

the needs that market will have when the

the needs that market will have when the needs are identified and we look at our

needs are identified and we look at our

needs are identified and we look at our technology in its characteristics or its

technology in its characteristics or its

technology in its characteristics or its features and there’s congruence we have

features and there’s congruence we have

features and there’s congruence we have an asset we have a commercial asset that

an asset we have a commercial asset that

an asset we have a commercial asset that we now need to find a home for in a

we now need to find a home for in a

we now need to find a home for in a company if there’s not congruence well

company if there’s not congruence well

company if there’s not congruence well the science behind that goes into the

the science behind that goes into the

the science behind that goes into the body of knowledge this process for us at

body of knowledge this process for us at

body of knowledge this process for us at the university culminates in a license

the university culminates in a license

the university culminates in a license agreement a license agreement is a legal

agreement a license agreement is a legal

agreement a license agreement is a legal document where one party confers rights

document where one party confers rights

document where one party confers rights to another party we are granting the

to another party we are granting the

to another party we are granting the rights for the company to make products

rights for the company to make products

rights for the company to make products based upon the patents in return the

based upon the patents in return the

based upon the patents in return the company obligates itself to develop the

company obligates itself to develop the

company obligates itself to develop the technology and as it moves into

technology and as it moves into

technology and as it moves into commercialization in their sales we

commercialization in their sales we

commercialization in their sales we receive a small percentage of those

receive a small percentage of those

receive a small percentage of those sales as royalty universities have

sales as royalty universities have

sales as royalty universities have policies that dictate how well these are

policies that dictate how well these are

policies that dictate how well these are divided and they’re fairly consistent

divided and they’re fairly consistent

divided and they’re fairly consistent across universities the largest share

across universities the largest share

across universities the largest share typically goes to the inventor or the

typically goes to the inventor or the

typically goes to the inventor or the inventor group which often includes a

inventor group which often includes a

inventor group which often includes a graduate assistant a second chair goes

graduate assistant a second chair goes

graduate assistant a second chair goes to support research either

to support research either

to support research either laboratory or broader throughout the

laboratory or broader throughout the

laboratory or broader throughout the university other shares can go to the

university other shares can go to the

university other shares can go to the department of the inventor or the

department of the inventor or the

department of the inventor or the college of the inventor and there is a

college of the inventor and there is a

college of the inventor and there is a share that comes or is retained by the

share that comes or is retained by the

share that comes or is retained by the technology transfer office typically

technology transfer office typically

technology transfer office typically that’s anywheres from between 15 and up

that’s anywheres from between 15 and up

that’s anywheres from between 15 and up to 25% therein lies the problem of why

to 25% therein lies the problem of why

to 25% therein lies the problem of why we’re not seeing more technology come

we’re not seeing more technology come

we’re not seeing more technology come from laboratories into the marketplace

from laboratories into the marketplace

from laboratories into the marketplace that amount of money is not sufficient

that amount of money is not sufficient

that amount of money is not sufficient to run a technology transfer office in

to run a technology transfer office in

to run a technology transfer office in large universities universities end up

large universities universities end up

large universities universities end up subsidizing that function let’s think

subsidizing that function let’s think

subsidizing that function let’s think about this for a second if you have a

about this for a second if you have a

about this for a second if you have a technology that is a drug it’s a

technology that is a drug it’s a

technology that is a drug it’s a blockbuster that produces billions of

blockbuster that produces billions of

blockbuster that produces billions of dollars of sales and you got a small

dollars of sales and you got a small

dollars of sales and you got a small percentage of that the royalty that

percentage of that the royalty that

percentage of that the royalty that comes back is pretty significant tens of

comes back is pretty significant tens of

comes back is pretty significant tens of millions of dollars you can operate an

millions of dollars you can operate an

millions of dollars you can operate an office on that kind of a Roth II that’s

office on that kind of a Roth II that’s

office on that kind of a Roth II that’s a very rare event that’s kind of the way

a very rare event that’s kind of the way

a very rare event that’s kind of the way out on the tail of distribution of what

out on the tail of distribution of what

out on the tail of distribution of what royalties are all about so if you think

royalties are all about so if you think

royalties are all about so if you think about the resources that come into a

about the resources that come into a

about the resources that come into a university the expenditures of research

university the expenditures of research

university the expenditures of research think of it as a PI at some universities

think of it as a PI at some universities

think of it as a PI at some universities a billion dollars it’s that drawdown of

a billion dollars it’s that drawdown of

a billion dollars it’s that drawdown of the thirty billion that I’m talking

the thirty billion that I’m talking

the thirty billion that I’m talking about others six hundred million a

about others six hundred million a

about others six hundred million a couple hundred million etc can you think

couple hundred million etc can you think

couple hundred million etc can you think of that PI and then you think of the

of that PI and then you think of the

of that PI and then you think of the size of the budget of a technology

size of the budget of a technology

size of the budget of a technology transfer office less than 1% so this in

transfer office less than 1% so this in

transfer office less than 1% so this in essence is a rate limiter on the

essence is a rate limiter on the

essence is a rate limiter on the transfer technology coming out of the

transfer technology coming out of the

transfer technology coming out of the laboratory now a few years back

laboratory now a few years back

laboratory now a few years back universities were asked why don’t we do

universities were asked why don’t we do

universities were asked why don’t we do this why don’t we take a percentage of

this why don’t we take a percentage of

this why don’t we take a percentage of the research coming in and do a

the research coming in and do a

the research coming in and do a set-aside put that aside and that money

set-aside put that aside and that money

set-aside put that aside and that money will be used for technology transfer

will be used for technology transfer

will be used for technology transfer research university said no way at a

research university said no way at a

research university said no way at a research university research is

research university research is

research university research is preeminent technology transfer doesn’t

preeminent technology transfer doesn’t

preeminent technology transfer doesn’t occur by happenstance it’s not a

occur by happenstance it’s not a

occur by happenstance it’s not a lightning bolt of an idea it’s years to

lightning bolt of an idea it’s years to

lightning bolt of an idea it’s years to get there it’s not luck that is the

get there it’s not luck that is the

get there it’s not luck that is the reason why we find a company and we

reason why we find a company and we

reason why we find a company and we license technology I’m fortunate I work

license technology I’m fortunate I work

license technology I’m fortunate I work at a university where the percentage is

at a university where the percentage is

at a university where the percentage is greater than 1% work for previously a

greater than 1% work for previously a

greater than 1% work for previously a president it gets it and the president

president it gets it and the president

president it gets it and the president now that gets it wants to do more but if

now that gets it wants to do more but if

now that gets it wants to do more but if we’re gonna do more across the nation

we’re gonna do more across the nation

we’re gonna do more across the nation with all the research universities and

with all the research universities and

with all the research universities and get technology transfer to have more

get technology transfer to have more

get technology transfer to have more social impact we got to change the

social impact we got to change the

social impact we got to change the conversation the conversation today is

conversation the conversation today is

conversation the conversation today is about how we can become efficient what

about how we can become efficient what

about how we can become efficient what are the best practices the conversation

are the best practices the conversation

are the best practices the conversation should be different the conversation

should be different the conversation

should be different the conversation should be what’s necessary to be able to

should be what’s necessary to be able to

should be what’s necessary to be able to transfer all that research into the

transfer all that research into the

transfer all that research into the marketplace and then we’ll talk about

marketplace and then we’ll talk about

marketplace and then we’ll talk about efficiency

efficiency

efficiency I’d assert to you that one percents not

I’d assert to you that one percents not

I’d assert to you that one percents not and also say that one percent or any

and also say that one percent or any

and also say that one percent or any other percentage that goes into

other percentage that goes into

other percentage that goes into technology transfer will have a much

technology transfer will have a much

technology transfer will have a much greater social impact than if that same

greater social impact than if that same

greater social impact than if that same amount of money went to research I just

amount of money went to research I just

amount of money went to research I just committed a heresy I’m a heretic at

committed a heresy I’m a heretic at

committed a heresy I’m a heretic at universities by saying that research is

universities by saying that research is

universities by saying that research is preeminent but if we’re going to produce

preeminent but if we’re going to produce

preeminent but if we’re going to produce more from research at universities we

The Potential of Technology Transfer | David Allen | TEDxTucsonSalon

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