From Site Selection magazine, July 2004
ROCKY MOUNTAIN REGION
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Tech Transfer Thrives
In Mountain States
ocky Mountain states have long had a leg up in the all-important quality-of-life variable of the site selection conundrum. What's not to relish about an environment free of traffic congestion and filled with clean air, stellar scenery and endless recreational opportunities? But there's also plenty of bleeding-edge research going on in the labs and incubators of the region's major universities. Some of these efforts are well known, while other universities have fledgling programs and are quietly building the foundation of technology transfer. The entrepreneurial spirit that helped settle this region nearly 200 years ago is clearly alive today as university technology transfer departments help launch dozens of homegrown companies every year. Following is a state-by-state look at some of the higher education economic development efforts in this five-state region.
UIRP Paces
Idaho's Technology Effort
Doug McQueen, director of the University of Idaho
Research Park (UIRP) in Post Falls, near Coeur d'Alene, says a "grow
your own" economic development policy is the norm in this part of the
Rockies. McQueen came to Idaho after developing Arizona State University's
Research Park. He is also a former executive director of the Association
of University Research Parks. "Our goal is to expand the presence of, and the participation by, the university in the community," McQueen says. "We're starting a new branch campus here. This county is the fastest growing in the state and it's not where the university is, so there is a need and an opportunity to expand through academic programs and research partnerships. Coeur d'Alene, Idaho, has been discovered and business is booming here." UIRP is home of the Center for Advanced Microelectronics & Biomolecular Research (CAMBR), which has made its name developing ultra-low-power microelectronics for NASA. This technology will soon migrate into the biotech/medical device field through a new company, MicaBio. McQueen says the technology will enable the analysis of foods for organic materials through microelectronic testing and identification. Simply put, researchers will be able to place a tiny sample of food on a chip and feed it into a machine for analysis. The device may have some medical device applications and could potentially help spur a cluster of companies in the area, says McQueen, who adds that the technology may have synergies with those developed by a neighboring company, Lifestream, which developed cholesterol testing devices.
Montana Also Takes
Home-Grown Approach
Montana State University in Bozeman has plenty
of efforts underway to develop startups in various technologies. These
include Tech Link, a largely federally funded agency that functions
as a Department of Defense (DOD) and NASA technology transfer center,
and TechRanch, a recently developed business incubator. Tech Link, created in 1996, is the DOD's only external technology transfer center and last year accounted for a third of all DOD licensing, says Will Swearingen, Tech Link director. The technology covers every conceivable field, Swearingen says, ranging from medical to advanced materials to communications. The technology is not weapons-related, but all of it has strong commercial applications. "Our role is to find technologies that you can start businesses around and to work with existing startups to help them find new technologies and develop relationships with sponsoring federal agencies," he says. "We've worked with more than 150 companies throughout the Northwest and have had 10 startups so far, many in partnership with TechRanch." Swearingen cites Visual Learning Systems in Missoula as an example of a high-tech company succeeding with the help of Tech Link. Visual Learning Systems developed an innovative software system that enables computers to automatically analyze satellite images and aerial photographs. John O'Donnell considers Bozeman to be "the coolest small town in America bar none." An entrepreneur whose past endeavors include starting successful Internet and software companies in Seattle, O'Donnell came to Montana about three years ago to open TechRanch, MSU's incubator. O'Donnell says Montana missed out on the boom times of the 1990s and has been struggling to create "high-paying, intellectually stimulating" jobs. But he calls MSU the "ultimate sleeper research university" with the potential to reverse the state's fortunes, one start-up at a time. TechRanch recently began partnering with MSU's College of Business, which has created a new minor in entrepreneurship. "We put students in the incubator, give them assignments and they get credit and experience while my bootstrapping entrepreneurs get pro bono research," he says. "'Management 463, Entrepreneur Experience' is the most popular course."
Wyoming Working
to Create Firms Gern says the university's tech transfer office, the Research Product Center, is doing a "landslide" business. The office works with faculty inventors to spin their technology out into companies. The university also operates a market research center, providing information to assist businesses with location decisions. This includes the use of GIS tools. In the works is a new, 25,000-sq.-ft. (2,300-sq.-m.) incubator, with steel slated to go in the ground later this year. "I'm becoming much more optimistic," Gern says. "We're not the Silicon Valley by any means and we're not the Colorado Front Range by any means, but the university is putting itself in good position. We feel a strong responsibility to develop the technology sector in Wyoming." One of the companies produced by the university is CC Technology Inc., whose subsidiary Delta Nu is advancing application of Raman spectroscopy (the measurement of wavelength and intensity of inelastically scattered light from molecules) into environmental monitoring, medicine and agriculture.
Utah Gets
Most From R&D Funds
Technology transfer is robust in Utah, with three
major universities churning out startup companies annually. In fact,
the state may be the entrepreneurial epicenter in the region. Entrepreneur
ranked Salt Lake City No. 5 in its annual list of Best Cities for
Entrepreneurs in 2003.
Tech transfer heads at the University of Utah, Utah State University and Brigham Young University all came to their respective jobs from industry. They have a collaborative relationship and meet quarterly for lunch. Dr. Jayne Carney, head of technology transfer at the University of Utah in Salt Lake City, says the university produces between three and eight startups a year. Many become part of the area's biotech and medical device clusters. Carney came to Utah about two years ago after working for Arch Chemicals. "We have an extremely entrepreneurial faculty and they are interested in being very involved in commercializing their inventions," Carney says. "It's also interesting how so many of our entrepreneurs become serial entrepreneurs. We're very fortunate our angel investors fund a company and move on to another to fund it." Dr. Ted Stanley has been director of research at the university for more than 20 years. In 1985, he started Anesta, a company based on technology he invented for delivery of medicine for cancer pain. That delivery system, Actiq, is now a $400-million annual product for Cephalon, which acquired Anesta in 2000. Stanley is now involved in another startup, Zars, which is developing technology to deliver pain medicine through the skin. Stanley is also mentoring young faculty in the process of technology transfer. Carney describes him as a good example of someone doing well while doing good. "The university has historically been pro this concept and very supporting of doing these kinds of things," Stanley says. "It's part of the can-do mentality here. Although there are not that many venture capitalists here, there are lots of people with lots of entrepreneurial ideas. I'm trying to stimulate young people in the medical departments who have creative ideas to do the same. I try to help them through the difficulties of never having done that before because I can see some of the pitfalls." The latest launch is Sentrx Surgicals, a medical device company that will specialize in adhesion-free healing of surgical wounds. Founder Richard Kuehn is one of those serial entrepreneurs Carney talks about. Kuehn was CEO of Salus Therapeutics, which he sold to Genta last fall. Salus also was based on technology licensed from the university. Kuehn, who says his new company will seek to commercialize a chemistry that can be applied to many post-surgical applications, is putting together a venture syndicate to raise $3 million in initial funding. "That will get us started and located and through some critical milestones," Kuehn says, adding that the company will probably find space at Research Park. Kuehn expects to recruit chemists from the Wasatch Front, but will likely cast a wider net for his management staff. Kuehn says that Utah hasn't quite reached the level of entrepreneurship seen in other areas. "It's not like being in Palo Alto where every third person you bump into has been through two or three companies," he says. "It's tougher here to find people who have that kind of vetting." Steve Kubisin, vice president, technology commercialization for Utah State University's Research Foundation, came to the university about two years ago following a long career in industry with companies such as Union Carbide, Alcoa and GE. His mission: to invigorate the university's economic development and commercialization efforts. About 50 companies had come out of the university over the last 25 years, but most are small cottage industry companies and aren't closely affiliated with the university. After two years, he says efforts are "gaining traction" and he expects the number of startups this year to be up 300 to 400 percent. All are based on the university's proprietary technology. "We are trying to better leverage the technology we have here, make sure it's protected via patents and use our stronger position to form larger companies that have further reach," Kubisen says. Technology in the works includes development of seeds with increased crop yields; a project that detoxifies animal waste to generate methane and create electricit; robotics and the twisteron, a development that modifies air flow over airplane wings to produce a reduction in induced drag without a reduction in lift. Kubisen also says a California group is interested in licensing USU technology for an application in consumer electronics. He says the technology helps overcome performance limitations. Brigham Young University, with 30,000 students, is the largest private university in the U.S. And despite the fact that its primary mission from the Mormon church is to educate rather than be a research frontrunner, the school is getting a lot of bang for the research buck. A 2002 study by the Chronicle of Higher Education found that BYU ranks number one in startups produced per dollar of funding. "The amount of research we do is relatively small, but what we do tends to be fairly productive," says Dr. Lynn Astle, director of BYU's technology transfer office. "We spin out three to four companies a year." While BYU was once known for its software design -- Novell and WordPerfect came out of the university in the late 1980s -- today the major focus is on engineering in a diverse group of sectors. There have been plenty of success stories in recent years, most notably Sonic Innovations, a developer of digital signal processing technology that allows hearing aids to be tuned to the hearing loss of an individual. The company is the fastest growing maker of hearing aids in history and was ranked number 117 of the 2003 Deloitte Technology Fast 500. The latest company is Procerus, a developer of an auto pilot system with potential applications for the military, firefighting, the border patrol, searches for lost people and traffic reports. The technology allows a computer to control the flight of an airplane with a 20-inch (51-cm.) wingspan, much smaller than any drones in current use.
Colorado Among
Research Leaders
The University of Colorado receives a half billion
dollars annually in research funds, making it the fifth largest public
research university as measured by federal support. About half of
that funding goes to bioscience while the remainder is spread across
traditional research areas of engineering, atmospheric sciences, physics
and chemistry.
Startups are on the rise at the university. David Allen, the university's associate vice president for technology transfer, says six companies debuted last year, 10 will launch this year and projections call for 12 during the next fiscal year. Of these, 90 percent are based in Colorado. Adams says Colorado's Front Range is well known for its entrepreneurial community. "One of greatest attractions here is a high quality of life with the mountains and climate," Adams says. "When people come, they don't like to leave. Companies have very little problem attracting talent here. We have a lot of serial entrepreneurs here, people willing to wait until the next opportunity comes along." Thriving sectors include telecommunications, information storage and photonic-optics, Adams says. He says his department recently adopted a different approach to tech transfer. Teams composed of business leaders, students and faculty work to license technology. Last year, 28 teams were involved, resulting in the creation of four companies. "It accelerates the program and expands our bandwidth," Adams says. "Students are able to do a lot of analysis work under the review of a team of experts in a particular area." Colorado State University is in the process of redefining its economic development mission, says Tony Franks, vice president of research and information technology. "We're assessing how we take ideas and make sure they have the broadest impact on society," Frank says. Last fall, CSU was awarded $22.1 million by the National Institutes of Health to build a biodefense and emerging infectious diseases research center. The new facility adds to the university's recognition as a major center of biosecurity and infectious disease research. "It will make one of the largest free-standing levels of biosecurity Level 3 space and will be attractive to private sector partners to work on infections agents," Frank says. | ||||||||
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