University Industry Relations in the US: Stanford and Silicon Valley Christophe Laux Ecole Centrale

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University Industry Relations in the US
Stanford and Silicon ValleyChristophe
LauxEcole Centrale ParisSéminaire
Franco-Américain sur les Coopérations
Universitaires et Scientifiques23 mars 2009
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FAQ Stanford

• 50 km south of San Francisco
• 15,000 students
• 1,800 professors
• Campus size 40 km2
• Annual Budget 3.8 billion (2008-09)
• Endowment 17.8 billion (Jan. 09)
• 300 sunny days per year

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Stanford student population
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7 Schools at Stanford

• Business (12)
• Earth Sciences (3)
• Education (4)
• Engineering (37)
• Humanities and Sciences (Philosophy, Chemistry,
  Mathematics, Physics,) (26)
• Law (7)
• Medicine (11)

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University Industry RelationsStanford and
Silicon Valley
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Technology Transfer
The French perception of university-industry
synergies in the US
University
Industry
- Research contracts- Gifts- Patent royalties
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Stanford Budget (Revenue)
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Misperception 1 Silicon Valley supports
research at Stanford
Industry support represents less than 20 of total
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Misperception 2 patents bring significant
resources to Stanford

• In 200708, Stanford concluded 107 new licenses
  and evaluated about 400 new invention disclosures
  in 2008
• In 200708 Stanford received gross royalty
  revenue from 344 technologies
• Thirty-six of the 344 inventions generated
  100,000 or more in royalties
• Three inventions generated 1 million or more.
• In 2007-08, royalties generated 62.5 million,
  i.e. less than 1.7 of the total budget of 3.7
  billion

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Fundraising
Misperception 3 Silicon Valley industry gives
money to Stanford
Million
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The Williams Gates building for Computer Science
(1997)
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• The David Packard building
• for Electrical Engineering (2001)

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The Clark Center for Bio-X (2004)
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In summary

• Gifts come mainly from successful individuals
• Research funding comes mainly from the government
• Patents create less than 1.7 of the revenue

• So why the impression of such strong connections
  between Stanford and Silicon Valley?

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Meet Professor Richard Zare

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A top level chemical physicist

• World leader in
• Laser-matter interactions
• Laser diagnostics
• Chemical analysis methods
• Molecular collision dynamics
• Dynamics of champagne bubbles
• Over 800 publications in top level journals
• Chairman of the National Science Board
  (1996-1998)
• Elected best teacher by Stanford students
• Numerous awards and honors
• A deep passion for knowledge

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but also an entrepreneur

• Sits on the Scientific Advisory Board of
• International Business Machines (IBM)
  1980-1992.
• Quanta-Ray, Inc. (now Spectra-Physics)
• Catalytica, Inc.
• Affymax, Inc. (split into Affymax and
  Affymetrics)
• Prolinx, Inc., (FAILURE)
• Pharmacyclics, Inc.
• Fluidigm, Inc.
• Informed Diagnostics, Inc., (now Picarro, Inc.)
• Biospect, Inc. (now Predicant, Inc.)
• Petroshear, Inc.

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Patents

• Over 200 submitted patents,
• About 50 accepted
• Complete list
• www.stanford.edu/group/Zarelab

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• As in the case of Prof. Zare, Stanford-Silicon
  Valley relations are highly developed

• But whats their impact on the Silicon Valley
  economy?

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Silicon Valley in 1999
Total revenue of the Valley 206 billion The
top 10 largest companies 121 billion The 3500
companies with lt 100 employees 20
billion Number of Stanford spin-offs
1200
Revenue produced by Stanford spin-offs 96
billion (about half of the total)
THE QUESTION How many of these companies have
used in their business, directly of indirectly,
the technologies developed at Stanford?
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Stanford and innovation
Answer Of the 1200 entreprises issued from
Stanford, only 5 (1 in 20) have used
technologies developed at Stanford!
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Stanford and innovation
Stanfords contribution to Silicon Valley?
Technology ltltThe Mythgtgt Educated People
ltltThe Realitygtgt
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Stanford and innovation
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Stanford and innovation
The bottom line The most important benefits
for a university (and society) are not the
royalties but the technological community that
the University supports and develops
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Educated people
Conclusion the Stanford-Silicon Valley exchange
model
Talented students and faculty
Flourishing Industry
Attractive University
Successful Individuals
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PUFs mission increase mobility of talent
Grateful acknowledgments to Prof. Richard Zare