It is no secret that the University's research and development programs, whether social, scientific, medicinal or any other form, are considered among the finest in the world.
Robert Samors, University government relations officer for research, who works in Washington, D.C., said the University's reputation precedes him.
"Our researchers consistently rank highly in peer-reviewed grant competitions across the disciplines. Wherever I go in Washington, this reputation for excellence is always there ahead of me," he said.
But are enough everyday people -taxpayers - able to experience the benefits of the more than $400 million spent on research at the University?
While the social benefits of a more effective treatment for cancer or a more fuel-efficient car are obvious, the possible practical application of most research isn't so apparent, allowing for its commercial and business potential to lie dormant in the laboratory.
To promote the transfer of scientific discoveries and inventions to the larger society, the University created the Technology Management Office in 1986.
Away from the laboratories, in the Wolverine Tower, is a highly trained group of lawyers, scientists and business executives comprising the TMO staff.
TMO's mission is to bring the scientific to the average citizen.
"Our job is to license technology in the most effective way possible. Sometimes we can't find a company for it and if we feel the technology deserves to be in the public's hands, we'll build a business plan to begin a start-up," said Robert Robb, TMO director.
To begin the University's technology-transfer process, a researcher must disclose his or her discovery or invention to TMO. TMO then evaluates the research by determining its patentability and market potential. If the research is considered to have significant potential for practical application, TMO will file for patents, create a marketing package and sometimes provide late-stage funding for further research.
When the product is ready to be marketed, suitable companies are contacted to negotiate licensing agreements. The income from any licensing agreements made by TMO must be shared with the researcher who made the discovery or invention, according to federal law.
At the University, if a licensing agreement is made, the researcher is guaranteed one-half the purchasing company's payment up to $200,000, and one-third of anything higher.
But if no company wants to purchase a license for a particular invention or discovery, and TMO thinks the research still has market potential, it will assist the researchers in starting their own company to develop the technology.
"We don't have a lot of venture capital in this area," Robb said. "We have to make a concerted effort to make sure people outside this geographic community know what we have."
TMO uses its resources to contact venture capitalists for companies it begins with researchers. Robb said most of the sought-after capital is found on the East and West Coasts.
TMO helped initiate two Ann Arbor based companies - Aastrom Biosciences and Picometrix.
Aastrom Biosciences, founded in 1989, has exclusive rights to three University patents - involving genetic methods for cancer therapy. Since the research used to found the company was originally conducted using University facilities and personnel, the patent belongs to the University, just as it would to a corporation, which may then make an agreement with the researchers.
Picometrix, founded in 1992, is pioneering the development of high-speed photodetectors.
Michael Cope, intellectual property counsel at TMO, said researchers want exclusivity in order to develop technology. Cope said it is typical for a drug company to spend more than $400 million to take a drug from research to the FDA and then to the market.
"A company usually won't spend that much money so somebody can take the fruits of their research," he said. "The idea behind TMO is sufficiently motivating people and companies to invest, and this can only be done through commercial strategy."
Matrigen
The most recent business TMO began, in which it gathered $1 million in venture capital, is Matrigen, a tissue regeneration company now using recombinant DNA products to help heal bone fractures.
Dr. Jeffrey Bonadio, associate research scientist at the Medical School and one of the researcher-founders of the company, said his involvement with TMO is beneficial for him and the University.
"The company has a relationship in the form of a sponsored research agreement that brings in research dollars for the University, which has the infrastructure for performing the research," Bonadio said.
"And it's good for me because it involves my lab."
Bonadio, with fellow researcher-founders Dr. Robert Levy and Dr. Steven Goldstein, made an agreement with the University so that their newly developed technologies would be licensed to Matrigen, while the University - as well as Levy, Goldstein and Banadio - owns stock in the company.
Since Matrigin is still relatively small and in the developmental stage, TMO supports the business by planning basic strategies and recruits management so day-to-day business operations don't detract from the inventors' research.
For Bonadio, it wasn't only the technology that spread from the laboratory to society.
"You feel cloistered and sheltered in living a life within a University like the U-M, but with the opportunity to spin-off the technology, I'm more immersed in society than before," Bonadio said.
Bonadio said focusing on his research didn't allow him to grasp the market value of his work.
"I didn't have the perspective. The people in their (TMO) office not only saw that the work was patentable but provided the foundation for a spin-off company - they've been terrific," he said.
Corporate donors and venture capitalists believe Matrigen has the potential to be a $100-million company within 10 years.
"The launching of Matrigen represents an exciting development in the University's approach to technology transfer," said interim President Homer Neal, former vice president for research.
"It provides one new model for moving knowledge and technology developed by faculty and students into the marketplace, and out to the larger society, while simultaneously strengthening the University's ability to nurture the kind of research that will lead to future discoveries," he said.
Applying for patents
But Bonadio said some researchers aren't enthusiastic about applying for patents because they don't want to wait to receive them before disseminating their findings.
"There's a lot of academic faculty that worry about the technology-transfer process being antithetical to the mission of a research university. The concern is a traditional one and it centers on the issue of conflict of interest," Bonadio said. "But I've never felt a conflict. It was never a matter of sitting on a discovery for more than a couple of weeks.
"The concern, for the most part, is a moot issue."
Goldstein, University assistant dean for research and graduate studies and director of orthopedic research, said he feels a responsibility to deliver research results to the public.
"If in the course of basic research you have an opportunity to develop, invent or discover material that may contribute substantially to society - in my case it would be health care - then I believe we have a responsibility to get that information to the public," he said.
Goldstein said the perceived conflict between patenting and publishing is simply a matter of following the existing procedures.
"There are specific rules for patent processing that allow for publications," Goldstein said. "The way to keep the two out of conflict, therefore, is to have a very timely and efficient way of filing a patent so no publication is held up. It's been my experience that publications are not discouraged and not withheld."
Goldstein said he thinks attitudes toward applying for patents are changing in academia.
"There are faculty who continue to see much more value in the publication pathway alone to transfer information. My belief is that this group is declining in numbers and more faculty see the need and value in technology transfer under appropriate conditions," he said.
Attitudes about the division between academia and the marketplace are changing in the University administration as well. Last April the regents effected a bylaw supporting TMO's mission, making it that of the University.
"The document on intellectual property passed by the Board of Regents this year - with widespread support of faculty and administration of schools, colleges and other University units - emphasized an important principle: That the transfer of new knowledge into societally useful products and processes is part of the service mission of the University," said Fred Neidhardt, associate vice president for research.
Finding funds
Robb said he thought the amount of industry-sponsored research last year - 7 percent - was too low considering the size of the University.
Neidhardt said due to anticipated cuts in government funding, the University is keeping its options open for new sources.
"The level of industry sponsorship of University research is not bad, but if the federal government proceeds along announced intentions to reduce research support by as much as 20-35 percent over the next seven years, we shall have to take seriously the views of those who urge more private sector support of the nation's research," he said.
Bonadio said if government funding is reduced in the future, scientists will likely find new ways to obtain funding.
"Scientists, being creative people, have looked for other ways - definitely industry is a logical place to look," he said.
Robb said he is confident that academic attitudes toward marketing their research are changing.
"Fortunately a lot of educators are favorable and accepting of it. They're aware that it is an important process that's good for all of us."
JENNIFER BRADLEY-SWIFT/Daily
Post-doctoral student Jyoti Malhotra examines proteins yesterday as part of research in developmental biology.
JENNIFER BRADLEY-SWIFT
Debbie Nachtegall exhibits a finished piece of her research, called a 'wafer'.