By Dennis St. Germaine

While the transfer of University discoveries to the realm of public good continues to evolve into a finely tuned process of patenting and licensing, another group is at work facilitating technology transfer and economic development.

Bruce Wright, associate vice president for economic development, says his office was allotted a small amount of the Technology and Research Initiative Fund (TRIF) money “for economic development and real technology transfer.”

Wright’s Office of Economic Development (OED), like the Office of Technology Transfer (OTT), falls under the purview of Richard C. Powell, UA vice president for research and graduate studies. Part of what Wright and his team do is assist new companies in any of six industry clusters during their start-up phase. In addition, the office tracks and studies different aspects of economic development.

“We constructed a set of measuring (instruments) and evaluations to benchmark the economic impact of the Proposition 301 initiatives,” says Wright. Components include technology transfer and optics information and research strength linked to industry clusters. Wright says the Office of Economic Development has tracked new job creation, new company start-ups, general technology transfer and the licensing of new technology into market-place.

“We have or are in process with four different studies,” Wright says.

They include an industry clusters study expanded statewide with additional studies planned every year to measure growth in southern Arizona. To fund the study, “We have taken 301 money and matched it with funds from Arizona Department of Commerce through the Southern Arizona Technology Council,” he says.

A second study is on the economic impact of university research, “which has a very positive impact on southern Arizona and the state,” Wright says.

A third study, scheduled for release soon, is an assessment of technology transfer activities at the UA. It compares the UA technology transfer effort with selected other universities nationwide, with Arizona Board of Regents’ designated peer universities and with selected regional universities.

A second element of that study looks at technology transfer trends. “We are finding that technology transfer activities are increasing, improving and becoming more
competitive,” Wright says.

Wright’s office plans two more studies this year: a competitive cities analysis that compares Tucson’s performance against other Southwest cities that are attracting high technology industry.

“We measure the economic impact of companies that are either licensed or spun out of the University; both new companies and existing companies,” he says.

Wright says there are other dimensions to supporting high tech development.

“We work with industry clusters on a strategic plan to market development activities using a small amount of 301 money. The University plays a critical role. Companies as far away as Ottawa, Canada, want affiliation with the UA,” he says.

Finally, funds derived from Proposition 301 have been instrumental in creating the “Arizona Center for Innovation,” a high-tech business incubator.

“We, the UA and Tech Park Office of Economic Development, were instrumental in developing the Arizona Technology Incubator. We were sponsors, but we didn’t run it. The old incubator was taking an equity position in the companies it helped, which is not a good approach. It lost clarity of purpose and focus. It was not focused on the UA solely. As it evolved, none of the companies came out of the UA.

“The new concept is more than an incubator. We are involved in the creation of new companies. The Innovation Center will assist companies in their incubation, from A to Z. We need to be much more conversant with researchers and what they do,” Wright says.

OED also sponsors a twice-a-year workshop or seminar for faculty on the technology transfer process either through licensing or patent.

“The faculty need to know that there are options you can pursue,” Wright says.

They can disclose discoveries to the UA Office of Technology Transfer, which can evaluate and eventually license it out. Faculty members do not need to get involved, but they can play an active role in licensing and patent. Or they can form a company. Wright points to NP Photonics, a successful company that was founded by Optics Professor Nasser Peyghamberian “That is a very, very good model for us,” Wright adds.

“There are lots of options here we have to understand them and relate them to faculty. Companies that go into business incubators are far more successful,” he says, “In general, new company startups have an 80 percent failure rate within five years. For new startups working through incubators, 80 percent are still in business after five years. What we are doing is putting them through a systematic process of business incubation.”

“The Innovation Center steps (interested faculty) through the business development process. It takes away the nuisance issues and provides them with an infrastructure,” Wright says.

Another crucial step is kicking the new company out of the incubator. “Too often, once (they were) out the door that was the end of it, but we have assistance and resources we can give them; job training, help with Small Business Administration loan program.

“There is no way we can provide all,” he says, “instead it is a business partner concept. We provide help for the first year (out of the incubator) at a 50 percent discount. We are setting up a workshop/seminar series on key aspects of business development jointly with the Pima Community College Small Business Development Center.”

In addition, Wright says The Innovation Center is having some of the business partners locate at the Park. In exchange for a reduced role on rent, the partners will provide general counseling and advice.

The Center is also open to students. “It is not just faculty generating new businesses and ideas. Thirty to forty business plans per year come out of Eller (the Eller College of Business and Public Administration). A student can apply to the incubator if the plan is good. We encourage faculty to recommend students for the incubator. We will also review the business plans and invite students startups, which can come into the incubator for six months free. After that, like everyone else, they pay fees,” Wright says.

In addition, Eller will provide internship opportunities and students will earn MBA credit for full time work. Also, MBA students can work for one of the start-up companies, helping with the business plan.

“The studies that the Office of Economic Development is conducting are major studies that would cost $100,000 and we get them for a lot less,” says Wright.

OED has received between $225,000 and $250,000 per year so far in TRIF money. About $150,000 per year goes into the assessments, and about $100,000 per year into the Innovation Center.

“This represents just one piece of what we’ve been doing,” Wright says. “Without these resources we’d be hard pressed to be doing this much.”