This chapter examines the university’s role in economic development. The chief research officer’s responsibilities at most research institutions include economic development as a corollary to his or her authority over technology transfer. The mechanisms for establishing and financing spinoff companies based on university-owned patents are examined in depth. With a business plan in hand, the start-up company’s management raises money in three basic investment rounds: angel, venture, and mezzanine financing. The financing amount increases and the investment risk decreases with each round. Two federal grant programs boost commercialization of university-associated technological innovation, the Small Business Innovation Research (SBIR) program and the Small Business Technology Transfer (STTR) program, which are discussed in detail. Fledgling companies often rely on university personnel, and this can raise an ethical conflict of commitment or conflict of interest that must be resolved. Also, allowing private businesses to use university facilities such as a building through a lease or other arrangement can have significant tax consequences, especially if tax-exempt bonds were used for financing the facility. University-affiliated research parks and business incubators offer an attractive alternative for start-up company development.
Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
If you think you should have access to this title, please contact your librarian.