A new Johnson Graduate School of Management study, which could have policy implications for colleges and universities across the country, will examine the culture of research universities and the ethnographic factors -- collegial expectations, administrative attitudes -- that promote or impede the transfer of technology to start-up ventures.
The study is part of a project of the Johnson School and the Cornell Office for Technology Access and Business Assistance (COTABA), which will help make recommendations to research universities on how to increase the flow of new ventures. The project is underwritten by the Center for Entrepreneurial Leadership Inc. at the Ewing Marion Kauffman Foundation.
Many economists see university-spawned, high-technology ventures as a ma jor new source of national wealth creation, and some university administrators now see ownership in start-up ventures as a viable way to generate income and offset government cutbacks in research support. As a result, the issue of active participation in the organization of new high-tech start-up ventures has become a current subject of discussion at the policy level of all major research universities.
"It's quite clear that there are many cultural factors, even some universities can influence, that determine how successful a university will be as a breeding ground for start-up ventures," said the study's principal investigator, David J. BenDaniel, the Don and Margi Berens Professor of Entrepreneurship. "No one has yet seriously studied these cultural factors at research universities, though many people have talked about them and their possible effects."
The ethnographic study employs two Johnson School graduate students, Kristina Szafara and Prem Shukla, and will be a comparative look at Cornell and the Massachusetts Institute of Technology. Professor John Van Maanen of MIT, a highly regarded ethnographer, is a consultant. BenDaniel is well-known for his industrial work in technology transfer.
"Both schools have strong departments of biotechnology and electrical engineering," BenDaniel noted. "Biotechnology at Cornell and MIT have been tremendously productive in producing spin-off ventures. But the similarities end when we examine electrical engineering. In this area, MIT has been tremendously productive; Cornell has not. Why is this the case? What factors influence this? These are the questions we hope to find answers to."
In addition, BenDaniel hopes to find out what impact the major differences between the schools have on the transfer of technology to start-up businesses.
"MIT's urban setting and its total commit
ment to technical and scientific studies probably make the school more conducive to spawning start-up ventures compared to Cornell, a university in a non-urban setting with great academic diversity, including top-rated arts programs and a veterinary school."
BenDaniel will interview 36 professors from each school. Questions will include:
·What areas do you see as prime points of conflict between your academic and entrepreneurial roles?
·How do you regard others in your fields and departments who attempt to start technical ventures?
·What issues arise when you consider starting a venture?
·What impact do you think such work has on your career?
·What relation should the university have to this process?
Another key issue the study will address is that of funding. "There is a large gap between where professors want to take research and where venture capital firms want to pick up the process," he said. "We'll be looking for ways to narrow that gap."
As part of the overall program, BenDaniel; Edward Wolf, professor emeritus of electrical engineering and COTABA director; and Marjorie K. Zack of COTABA organized a think tank session in October, "Venture Creation at Research Universities: New Concepts," attended by 32 nation ally known university administrators, venture capitalists, technology transfer specialists and professor/entrepreneurs. A summary of discussions was recently sent for comment to top administrators at 100 major research universities. "The response so far has been that it is promoting some significant discussion at these universities," BenDaniel noted.
Exactly what role universities should play in supporting start-up ventures has come under review as higher education seeks additional revenue sources in the wake of cut backs in federal and state research funding.
"Some administrators are clearly looking at such ventures as a way of increasing the bottom line," BenDaniel said. "They are looking at ways universities can benefit financially from their roles as incubators."
The Kauffman Foundation's Center for Entrepreneurial Leadership is dedicated to accelerated entrepreneurship in America. The center serves as a catalyst for understanding, supporting and developing, through innovative curricula, programs and initiatives for both adult and youth entrepreneurs.
The Kauffman Foundation was established by Ewing Marion Kauffman, who, in 1950, founded Marion Laboratories Inc. In 1989, when Marion merged with Merrell Dow Pharmaceuticals to form Marion Merrell Dow Inc., its sales were $6 billion. Today the company is part of Hoechst Marion Roussel, a worldwide health care products company.