University Technology Transfer Programs: A Profit/Loss Analysis

An analysis was made of the financial profitability/loss of technology transfer programs in U.S. universities, hospitals, and research centers for 1995. Data were extracted from the AUTM (Association of University Technology Managers) survey and other published information. Royalty payments were compared to estimates of technology transfer office costs, patent fees, legal expenses, and new research grants. Approximately half of the programs in these institutions appeared to operate at a profit, albeit some had profits of several million dollars. Many smaller university technology transfer programs have been in existence only 5-10 years and presumably have not transferred sufficient technology for a profitable royalty stream. When estimates were made of institution funds that are spent locally, the community benefit of technology transfer programs was $434 million.