WASHINGTON, D.C. – The Biotechnology Industry Organization has released a study that provides evidence on the importance of university/industry research and development partnerships to the U.S. economy.
The study of university technology licensing from 1996 to 2007 (pdf) shows a $187 billion impact on the U.S. Gross National Product – a measure of the nation’s output of goods and services. The licensing activity added $457 billion to gross industrial output, using conservative models, the organization said.
University-licensed products commercialized by industry created at least 279,000 new jobs across the United States during the 12-year period, the industry organization said.
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The licensing activity is enabled by the Bayh-Dole Act of 1980, a federal law that permitted universities for the first time to profit from commercializing their research ideas.
“It has long been believed that the Bayh-Dole Act, which permits and encourages industry to partner with research universities to turn federally funded basic research into new and valuable products, is a critical factor in driving America’s innovation economy,” said Jim Greenwood, president and chief executive of the industry organization, in a written statement.
“Indeed, because of this inspired piece of legislation, the U.S. leads the world in commercializing university-based research to create new companies and good, high-paying jobs throughout the country,” Greenwood said. “This new study provides the evidence to back up that belief.”
Before Bayh-Dole, inventions arising from billions of taxpayer dollars invested annually in university research remained largely on laboratory shelves and rarely were commercialized because of restrictive patenting and licensing practices, the organization said.
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“We cannot take tech transfer, or the U.S. patent system upon which it is based, for granted, particularly in the current economy,” Greenwood said. “Preserving this system is critical to ensuring U.S. economic revival and spurring the next wave of American innovation in the life sciences.”
