Technology Transfer

Our Research

As we mentioned in a previous post, one of the projects that we are currently working on is research into the factors that enable entrepreneurial leave agreements (ELAs) and entrepreneurial separation to transfer technology agreements (ESTTs) to be successful. Additionally, we are interested in the impact that the threat of the federal government to exercise its march in rights might have on the transfer of technology. This work is being funded by the Council for Innovation Promotion (C4IP).

In fiscal year (FY) 2023, the U.S. federal government invested approximately $190 billion in research and development (R&D), marking a significant (13%) increase over the previous year. This investment supported a wide array of scientific and technological initiatives across various sectors.

For FY 2025, President Biden's budget proposal included approximately $201.9 billion for R&D, representing a 4% increase over the FY 2024 estimated level of $194.6 billion. This proposed funding underscored the administration's commitment to advancing innovation and maintaining the Nation's competitive edge in science and technology.

A substantial portion of Federal R&D funding is allocated to universities and research institutions. In FY 2023, Federal dollars supported $59.6 billion of university R&D expenses, with the life sciences and engineering fields receiving the most funding. This investment not only fosters academic research but also contributes to technological advancements and economic growth.

Overall, federal R&D funding plays a crucial role in driving innovation, supporting scientific discoveries, and addressing national challenges across various domains. Nonetheless, technology transfer – movement of research from laboratory to commercialization – is a challenging process.

Commercialization of Federally Funded Reseearch & Development

Finding the right organization to license and commercialize the intellectual property and coming to an agreement on how to take the innovation to market is fraught with legal and business hurdles. To this end, ELAs and ESTTs are one tool in the technology transfer office’s (TTO) kit that may help the U.S. to remain competitive. These agreements allow the researcher to temporarily leave their government or university position to work on commercializing the technology. Whether the researcher builds a startup or joins an existing company in support of the commercialization effort, having the original inventor involved in the process is invaluable and can mean the difference between success and failure.

Federally funded research has given us many innovations, saved millions of lives, improved the living conditions of likely billions of people worldwide, and is the underpinning of our technology-based economy. Our federal laboratory and university research infrastructure is the envy of the world. Imagine life without these things, all of which originated from federally funded research grants:

• The Internet
• The Google Search Engine
• Artificial Intelligence
• Smartphones
• The HIV/AIDS vaccine
• Global Positioning System (GPS)
• Magnetic Resonance Imaging (MRI)
• Mapping of the human genome
• GLP-1 weight loss drugs (Ozempic, Wegovy, etc.)
• The Dictionary of American Sign Language (ASL)
• LASIK Surgery
• Infant Massage*
• Doppler Radar
• The Flu Shot and the COVID vaccine
• Barcodes
• Closed Captioning
• Lactose-Free Milk

*Based on research performed on rats, regular stroking/massage was found to significantly improve the health, weight gain, and development of premature human infants.

The Bottom Line

The return on investment (ROI) for federally funded research is significant, often calculated to be a 5x  return ($5 returned for every $1 invested). Additionally, a recent report from the National Bureau of Economic Research (NBER) indicates that the ROI may be even higher than previously thought.

Interesting fact: 40% of the American Nobel Laureates since 2000 in physics, chemistry, and medicine were immigrants to this country. Going back even further, 115 of the 319 Nobel Prizes awarded to Americans in these fields were - you guessed it - won by immigrants.

Our Request

If you are a researcher / entrepreneur who used some sort of leave agreement to commercialize your research, we would enjoy a conversation with you about your experiences in support of our research. Please reach out to us.

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