Universities important in business, economics
February 16, 2006
DES MOINES – Research at Iowa’s three state universities is creating jobs and boosting the state’s economy by millions of dollars every year, university and business leaders said Wednesday.
In the fiscal year that ended June 30, Iowa companies earned $27.24 million from technologies licensed from Iowa State University, the University of Iowa and the University of Northern Iowa, according to the Iowa Board of Regents. That’s up from $21.4 million in fiscal year 2004 and $17.2 million in fiscal year 2003.
University research was discussed Wednesday at a forum attended by school officials and business leaders – some of whom said there is not enough incentive for developing technology.
Doug Jacobson is an Iowa State University associate professor who founded Palisade Systems Inc., which makes network security programs for computer systems. He said running his own company and developing software for it has not been worthwhile.
“It has not helped my career or helped me get more money or promoted,” said Jacobson, whose Ames company has an annual payroll of about $1 million.
Tim Neugent, president of The Neugent Group Inc. in Des Moines, said he has helped finance business startups but found that Iowa’s universities still do not do enough to encourage scientists to commercialize research.
He partially blames department heads and deans who sometimes discourage researchers to share good ideas.
“Businesses are tough enough to start and be successful without all the walls created to prevent people from taking technology and commercializing it,” he said.
Meredith Hay, vice president for research at the University of Iowa, said changes are beginning to occur. The university now guarantees the first $100,000 to the inventor of a new product or idea, and the filing of patents are now considered when a faculty member seeks a promotion.
The Regent institutions earned $23 million last year from royalties and licensing fees. They had 502 licenses and option agreements yielding income. They signed 254 licensing agreements. They won 51 patents and applied for 172 more.
Michael Gartner, Regents president, said the role of the universities in business development is as vital as their role in education and athletic endeavors.