Engineering Graduate Education and Research (1985) / Chapter Skim
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9 University-Industry Interactions
9 University-Industry Interactions
Pages 104-117
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From page 104... ...
9 University Industry Interactions It has frequently been suggested in recent years that a major increase in university-industry engineering research should take place in orde to enhance the financial base for universities and to help support the needed increase in doctoral enrollments. A study of such relationships, entitled University-Indlustry Research Relationships, was published by the National Science Board (NSB)
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From page 105... ...
4. Industrially sponsored research provides a chance to work on an intellectually challenging research program that may be of immediate importance to society.
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From page 106... ...
patent problems, [31 consultingrelationships, and {4J conflicts of interest. The Appropriate Nature of Industrially Sponsored Research Industrial organizations, by their very nature, are in the business of developing products or services that can be sold at a profit.
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From page 107... ...
Finally, there is the possibility that students may unknowingly be bent to the hidden purposes of others if proprietary and potentially profitable products are in view. Because of the foregoing considerations, industrially sponsored research in universities should be free of secrecy constraints and should be as general as possible so that the learning experiences of the students are transferable to a variety of future needs.
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From page 108... ...
Yet some universities take the position that all ownership rights should be vested in the university and that the sponsor should pay for a royalty-bearing license if it wishes to use the patent. Public interest groups have sometimes insisted that publicly supported universities should adopt a policy of total ownership by the universities, because to grant ownership to private businesses, they say, would subvert public resources to private purposes.
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From page 109... ...
The responses gave the following information: 57 Frequency Table: Total Patent Royalties Received by Sample of Universities 1980and 1981 Frequency Gross Income 1980 1981 0-$ 99,999 10 7 $100,000-$199,999 3 4 $200,000-$299,999 3 2 $300,000-$399,999 3 0 $40D,000-$499, 999 0 1 Over $500,000 6 8 25 22 Thus, half of the responding universities in 1981 had royalty incomes of less than $200,000 each, and only eight had incomes exceeding $500,000. From these incomes must be deducted the costs of administering the patent programs, including the legal costs incurred in the patenting process, and the costs of marketing licenses.
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From page 110... ...
It is also the case that faculty consulting sometimes results in research contracts that are placed with the universities, thus enhancing the educational opportunities for students. In fact, it is difficult to envision substantial increases in industry-university research cooperation without the enabling influence of direct faculty contacts of the kind represented by consulting.
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From page 111... ...
One source of criticism stems from the fact that most people react adversely to the image of a professor who, instead of teaching classes, is off doing consulting and perhaps reaping enormous financial rewards in the process. Sometimes the reaction to this image is to conclude that professors in professional schools do not need to be paid competitive salaries because of the presumed outside income.
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From page 112... ...
Doctorate Nondoctorate Faculty Faculty _ _ . All activities 50.0 41.4 Instructional activities 16.9 21.2 Research 14.0 1.5 Public service and administration 9.0 7.8 Total outside income-producing activities 7.0 8.0 Consulting (3 41a (4.9la Publication l3 oh (1.3la Other to 61a (l.9la Continuing education and professional enrichment 3.1 2.8 aNumbers in parentheses are breakdowns of the total outside income-producing .
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From page 113... ...
11a (2.5) a {3.6Ja Other (o.8la lo.7~a to.3la (o.3la Continuing education and professional enrichment 3.0 3.9 3.4 6.1 aNumbers in parentheses are breakdowns of the total outside income-producing .
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From page 114... ...
Another source of criticism of faculty consulting is that the faculty member is competing against regular consulting firms but operating from a sheltered position. The argument is that a faculty member is protected by receiving a full-time salary and thus can unfairly compete with a regular consulting firm that has many overhead costs to bear.
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From page 115... ...
In California, court action has been brought against the University of California, because, it is claimed, the activities of the university's huge Agricultural Experiment Station have served principally to benefit rich farmers, to the detriment of other segments of society. In the case of the experiment station, faculty consulting is not specifically at issue, because outside consulting activity is prohibited for faculty associated with the station, but the overall issue is the same: it is claimed that special influences, backed by money, are brought to bear on the university to divert its attention in ways that will benefit those special interests and disadvantage others.
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From page 116... ...
Closer ties between industry and engineering education should be fostered. Such ties can take many for ~ ., s, such as increased industrially sponsored research; faculty consulting; industry financial support of graduate fellowships, modem equipment, facilities, and departmental expense.
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From page 117... ...
In such cases of full cost sponsorship, Diversities should grant ownership of the patent or other intellectual property to the sponsor, or grant a royaltyfree exclusive license.
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