Technology Transfer Systems in the United States and Germany Lessons and Perspectives (1997) / Chapter Skim
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Annex II: Case Studies in Technology Transfer
Annex II: Case Studies in Technology Transfer
Pages 177-240
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From page 177... ...
For example, using recombinant DNA technologies, the human gene that codes for insulin (a protein) can be isolated and then inserted in a bacterium.
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From page 178... ...
. As of February 1992, 640 diagnostic kits using monoclonal antibodies, DNA probes, and recombinant DNA TABLE A-1 Biotechnology Drugs in Development, 1989–1993 1989 1990 1991 1993 Approved medicines 9 11 14 19 Medicines or vaccines in development Phase I 26 38 48 41 Phase I\II 12 13 16 22 Phase II 23 32 46 53 Phase II/III 8 6 7 6 Phase III 11 15 18 33 Phase not specified 5 3 2 4 Application at FDA for review 10 19 21 11 TOTAL medicines or vaccines in development 95 126 158 170 NOTE: Total medicines or vaccines in development reflects medicines in development for more than one indication.
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From page 179... ...
Using biotechnology techniques, researchers hope to transfer into plants specific beneficial traits (e.g.,
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, revenues for biotechnology companies were about $7 billion in 1992, compared with revenues of $114 billion for pharmaceutical companies. The biotechnology sector is nonetheless a very large funder of biomedical research.
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biotechnology industry has largely been financed by venture capital firms. Venture capital is available to NBFs because the opportunity to exploit new advances in biotechnology for human therapeutics and diagnostics creates liquidity in public markets (as initial public offerings)
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Buyers of biotechnology-based drugs are now less often individual physicians than health care corporations, and third-party payers are becoming more restrictive, increasing the risk for investors and venture capital. LINKS BETWEEN NBFS AND LARGE COMPANIES Large pharmaceutical companies are an especially important source of funding for new biotechnology firms.
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, at the inaugural meeting of the American Institute of Medical and Biological Engineering in 1992, observed that failure to integrate process design and engineering expertise into the development process for biotechnology drugs prior to phase III clinical trials resulted in many nonoptimal bioprocess designs that did not use leading-edge technology. LINKAGES TO FOREIGN FIRMS Technological links are also expanding between new biotechnology firms in the United States and large foreign firms.
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Amgen commenced operation in early 1981 with a private-equity placement of approximately $19 million, involving venture capital firms and two major corporations. The company chose its Thousand Oaks location to be near such major research centers as the University of Cali fornia at Los Angeles, the University of California at Santa Barbara, and the California Institute of Technology.
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research universities and academic medical centers. To a considerable extent, this support has been concentrated on the emerging genetic engineering techniques in biotechnology, especially for AIDS research.
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Biotechnology companies encourage these relationships. Genentech, for example, provides several million dollars of free recombinant materials to academic
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In this respect, the changes in medicine have been faster and more dramatic than in other areas. Few, if any, examples of basic research in academic medical centers attracted commercial interest (unlike physics and chemistry and even music)
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How ever, greater commercial advantage was gained through the support of cooperative research with small or emerging biotechnology companies. One such cooperative venture was the joint program with Genentech to produce recombinant bovine and porcine growth hormones.
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. The Scripps-Sandoz agreement was widely attacked by NIH and Congress for giving Sandoz substantial control over the Scripps research laboratories and their findings, and for encouraging the commercial development of federally funded research by non-U.S.
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Consequently, the imperative for NBFs is to create close interactions with these academic researchers. According to Hugh Niall, chief scientist for Genentech, this requires establishing a culture in NBFs as similar to universities as possible.
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Today, the overwhelming majority of experiments using recombinant DNA are exempt from these guidelines (Olson, 1986)
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The FDA, for example, requires pharmaceutical companies to demonstrate through a variety of means, including clinical tests on humans, that a new drug is "safe and effective." In the instance of drugs developed using recombinant DNA, the FDA requires them to undergo the entire approval process irrespective of identical approved or existing substances manufactured using identical techniques. The reason for this is concern over the possibility of undetected contamination by drugs or chemicals, or the possibility of genetic instability in a recombinant organism.
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Large pharmaceutical companies will continue to expand their presence in biotechnology as the new generation of biotechnology drugs now in development by NBFs enters clinical trials. Many of these pharmaceutical companies will be foreign.
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The focus here will be on the roles of nonmanufacturing research institutions and intermediaries (e.g., universities, federal laboratories, and nonprofit R&D institutions) in the development and transfer of production and manufacturing technologies through public-sector technology transfer networks and other nonmanufacturing technology transfer agents.
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From page 195... ...
Furthermore, not all process and manufacturing technology R&D is carried out in the manufacturing sector; service firms that support the manufacturing sector are also active in this area. Compared with other nations, the level of industrial R&D devoted to production processes in the United States is low.
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, the successor to FCCSET, changed the nature of the FCCSET initiatives, but there are still activities relevant to manufacturing technology. The Manufacturing Infrastructure Initiative is designed to support R&D and other activities that support the entire manufacturing sector.
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They are best thought of as frameworks for budget presentation, coordination, and reporting of manufacturing activities in diverse federal R&D programs. Defense Manufacturing Programs The major DOD activities in manufacturing R&D include the TRP and the Manufacturing Science & Technology program (MS&T)
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The Oak Ridge Center for Manufacturing Technology has been formed to coordinate manufacturing technology programs at that facility. DOE laboratories tend to use CRADAs to work with industry in manufacturing as well as in other areas.
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. Investigator-initiated R&D projects that support development of the fundamental science and engineering base underlying manufacturing technology are part of NSF's traditional peerreviewed grant program.
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. Almost 20 percent of UIRCs carried out research in manufacturing technologies, while 30 percent of centers were involved in environmental technology and waste management and 27 percent in advanced materials, the latter two technologies being of considerable interest and concern to manufacturers.
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They are often content with this arrangement because it is similar to that of their nearby competitors, and it is often still perceived as sufficient for corporate survival. Transferring Manufacturing Technology from Federal Laboratories and Universities Federal laboratories transfer technology through a number of mechanisms, but three are particularly relevant to manufacturing: licensing, cooperative R&D, and technical assistance.
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Japan U.S. Small Large Type of New Manufacturing Technology Japanese Definition (closest U.S.
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at NIST. Many, if not most, SBDCs are integrated into state technology extension programs and are part of the network of service providers available to small businesses.
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Transferring Manufacturing Technology: Industrial Extension Programs THE AGRICULTURE MODEL Development of the agricultural research and extension system began in 1862, when the federal government established agricultural colleges, run by the states, to offer practical instruction in agriculture. Fifteen years later, the federal government established a system of state agricultural experiment stations, again under the state auspices.
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groups state industrial extension programs into four categories: Technology broker programs focus on providing technical information and referrals for client firms. Typically, these programs have large numbers of re quests, each of which receives modest attention from program staff (generally less than a day)
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TOP-DOWN APPROACHES: FEDERAL MANUFACTURING TECHNOLOGY PROGRAMS From the 1960s to the 1980s, industrial modernization programs were found only at the state and local level. Federal manufacturing programs provided only limited and uncoordinated support for these efforts and were focused primarily
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MEP also operates the State Technology Extension Program (STEP) , which provides grants to states to plan and begin manufacturing extension services, although by the end of 1995, only a few states were still without industrial extension programs.
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TRP had three areas of focus: technology development, technology deployment and diffusion, and manufacturing education and training. In its first 2 years, TRP funded the majority of the manufacturing extension centers that make up the MEP.
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TRANSFER OF MANUFACTURING TECHNOLOGY WITHIN THE PRIVATE SECTOR Several mechanisms exist for the transfer of production and manufacturing technologies within the private sector. The most commonly used are: • Vendors and suppliers of manufacturing technology, which are often an excellent source of information and assistance for their clients.
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As noted above, some state sponsored manufacturing extension programs fund or subsidize private consultants to deliver services. The state of New York spends several million dollars annually on private consultants for small manufacturers (National Research Council, 1993)
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However, on the federal level, programs are authorized, funded, and operated in different areas of the government, and coordination is likely to continue on an informal level at best. Although a model for public-sector manufacturing extension programs existed for nearly a century in the agricultural sector, no pressing need was felt to extend it to manufacturing until global competition began to challenge U.S.
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Small firms lack the wherewithal of large firms to recover from an investment mistake, and, particularly for firms that have already made a bad investment, suspicion of the impartiality of vendors and dealers is a critical barrier. Many clients of industrial extension programs, when surveyed, have said that impartial advice about modernization options and available equipment is one of the most valuable services provided by those programs.
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In spite of the apparent success of U.S. industrial extension programs, both in the field and in the political arena, the goal of government-funded manufacturing extension programs can and will probably remain modest compared with the absolute numbers of firms in the manufacturing business.
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semiconductor industry spent $3.7 billion on R&D in 1994, or 13 percent of revenues. R&D spending in the underlying semiconductor equipment and materials industry is also estimated at about 12 to 15 percent of revenues (Council on Competitiveness, 1996)
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In response to these dynamics, leading U.S. semiconductor manufacturers, including Intel, Motorola, and Texas Instruments, are participating in consortia and other cooperative mechanisms to leverage R&D, especially in generic (precompetitive)
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Technical symposia were also held by Bell Labs to transfer technology and recent R&D developments -- including silicon oxide diffusion and oxide masking, which enabled large-scale semiconductor fabrication -- to these licensees. Second, the transfer of individuals also encouraged early innovation in semiconductors.
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. The most important of these consortia are SEMATECH (for Semiconductor Manufacturing Technology)
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Its purpose is to sponsor and conduct research in semiconductor manufacturing technology. SEMATECH's members include Advanced Micro Devices, AT&T, DEC, Hewlett Packard, IBM, Intel, Motorola, National Semiconductor, and Texas Instruments.
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microelectronics. Indeed, the federal government has always played an active role in this sector, as noted earlier for semiconductors.
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220 TECHNOLOGY TRANSFER SYSTEMS IN THE UNITED STATES AND GERMANY BOX 1 Cost of Ownership Technology Transfer The Cost of Ownership (CoO) concept can be traced to the nuclear power industry in the 1960s.
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ANNEX II 221 BOX 1 -- Continued pliers and users. It became possible for suppliers to measure them selves against their competition.
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This map has evolved into the National Semiconductor Technology Roadmap, which maps technology goals for semiconductors over the next 10 to 20 years. Technology mapping has helped to coordinate research across industry, universities, and federal laboratories, although the actual fit between the technology maps and the marketplace is quite weak (Council on Competitiveness, 1996)
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The technical challenges of developing the next generation of semiconductors and the enormous costs of fabrication facilities are driving U.S. semiconductor manufacturers to form technology transfer agreements with foreign competitors.
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Finally, developing the infrastructure, manufacturing, and applications needed to exploit these new FPD technologies appears exceedingly difficult without Japanese involvement. SOFTWARE Simon Glynn The United States has excelled in software and computers because of an exceptional ability to develop ideas.
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Innovation in computers and in software has depended on the opportunity for individuals to move among academia, the federal labs, and technology-intensive companies, for example IBM. In this respect, new, technologically innovative software companies -- and the environment that encourages them -- represent an increasingly important way for individuals to transfer technology.
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Global spending for prepackaged software (including operating systems) was estimated to be $71.9 billion in 1993 (U.S.
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. Factors Shaping Academic Computer and Software Research Research performed in the leading U.S.
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. Funding for academic computer science is from NSF and DOD's ARPA, as well as NASA and DOE.
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The original concept for the Internet may be traced to an ARPA research project on internetworking in the early 1970s. The concept used by the Internet, of distributed computing and communication by a technology called packet-switching, was proposed in the 1960s and developed using ARPA funding.
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The second phase involves research and development on "gigabit testbeds" to develop networking technology that will enable computer networks that can communicate at speeds of 1 billion bits per second (one gigabit)
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. Mechanisms to Encourage Technology Transfer in Academic Computer Science Other formal mechanisms have also been important in the transfer of technology from the military to the commercial sphere.
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Also key were magnetic tape drives and flexible software architectures, all developed under government funding and adapted almost immediately for commercial use. IBM also recruited Emanuel Piore, head of the Office of Naval Research, as chief scientist, and increased research spending to 35 percent in the 1950s, and to 50 percent by the 1960s and 1970s.
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Consequently, computer makers have learned to encourage independent software companies to develop applications based on their architectures. These dynamics contribute to a first-mover advantage for U.S.
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Small Companies Exploit These New Opportunities In sharp contrast to the computer makers, most of the new independent software firms are relatively small, entrepreneurial companies. In Utah's "software valley," for example, three-quarters of the more than 1,120 technology-intensive companies have fewer than 25 employees, and 50 percent have revenues of $200,000 or less (The Economist, 1994)
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Some 214 software and services companies received 22 percent, or $562 million, of venture capital invested in 1992. As new software companies demonstrate the viability of new technologies or markets, the risk is less and these opportunities then become valuable to larger companies, creating liquidity by acquisition.
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As software programs (including prepackaged software) have become larger and more complex, software developers have started to run into problems of quality and reliability, referred to in the literature as the "soft
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ELECTRIC POWER RESEARCH INSTITUTE: THE BOILER TUBE FAILURE REDUCTION PROGRAM Jim Oggerino Background The Electric Power Research Institute (EPRI) has been the centralized R&D arm of the U.S.
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One technology transfer mechanism used to obtain sponsors for demonstration or shared R&D projects is a one-page document called a "host utility." This document is distributed through EPRI's Technical Interest Profile (TIP) system, which member utility staff join by submitting a TIP interest sheet.
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GPC played a major role in the technology transfer process, freeing the EPRI project manager to focus on the R&D portion of the project. From the outset in 1985, the target for the project was to transfer technology to achieve an average equivalent availability loss (EAL)
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1.8 1.4 Target (1.45 percent) 1.0 1985 1986 1987 1988 1989 1990 1991 1992 BTFRP = boiler tube failure reduction program FIGURE A-3 Equivalent availability loss due to boiler tube failure, 1985–1992.
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