Action Canada report calls for changes to university technology transfer offices

Five young Canadians examining the relationship between venture capital (VC) and university technology transfer offices (TTOs) are calling for clear university equity and intellectual property policies, a re-organization of TTO structures and practices, new metrics to measure start-up success and government assistance to help bridge the proof-of-principle funding gap.

The recommendations are contained in a report sponsored by the Action Canada fellowship program, founded in 2002 by Vancouver businessman and philanthropist Sam Belzberg and Simon Fraser Univ president emeritus Jack Blaney. The report’s authors are Action Canada fellows with diverse backgrounds (see chart) offering an outsider’s perspective on the weaknesses in current VC/TTO interactions and actions to improve them.

Entitled Getting the Deal Done: Unlocking Innovation from Within Canadian Universities,the report provides 10 recommendations designed to maximize the flow of intellectual property from Canadian universities by enhancing the status of tech transfer in universities, easing the regulations and processes for tech transfer and providing adequate public funding to help universities become more entrepreneurial.

While not as detailed or rigorous as other reports on the topic, the authors manage to bring a fresh perspective. Many of the recommendations have been made previously, but the fact that they are being reiterated suggests that the challenges of the past have not been sufficiently addressed.

The report also includes a useful overview of some of the key documents that have been produced on the issue over the past several years, from the 1999 Expert Panel on the Commercialization of University Research to the 2006 report from the Expert Panel on Commercialization, known as the Rotman Report (R$, April 28/06). Added to this body of knowledge are a series of new interviews with venture capitalists and tech transfer managers.

Apart from advocating training for novice venture capitalists, the majority of recommendations call for increased resources for TTOs and clear IP policies and a higher status for tech transfer within the academic community. It notes that many TTOs do not offer competitive compensation, with many smaller TTOs lacking “deep sector” expertise.

One of the most critical areas for new funding is for prototype development, which the report deems critical to attract more VC investment in spin-offs. Angel and other seed investments are also examined, with the report endorsing calls by the Rotman panel and the National Angel Organization for an early-stage investment tax credit. It also notes that, as more venture funding is available, the number of disclosures also increases.

FMI: www.innovation-action.ca.

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