Good news for US economy. After signing DTSA this is the next big step for US economy growth. The licensing of university research has made a meaningful contribution to US gross domestic product (GDP), industry gross output, and jobs over the last two decades, according to an independent study commissioned by the Biotechnology Innovation Organization (BIO) and the Association of University Technology Managers (AUTM), which was released today. We can say that all of this happening because of enduring effectiveness of the Bayh-Dole Act, American research universities, along with industry partners, are turning federally-funded basic research into new and valuable products that save and improve lives.
About Bayh-Dole Act
This is a landmark law helped universities lead the Way.
Key changes: The key change made by Bayh–Dole was in ownership of inventions made with federal funding. Before the Bayh–Dole Act, federal research funding contracts and grants obligated inventors to assign inventions they made using federal funding to the federal government. Bayh–Dole permits a university, small business, or non-profit institution to elect to pursue ownership of an invention in preference to the government.
The survey documents shows that the sizeable return that US taxpayers receive on their investment in federal-funded research. It shows that, during a 20-year period, academic patents and the subsequent licensing to industry bolstered US industry gross output by up to $1.33 trillion, US GDP by up to $591 billion, and supported up to 4,272,000 person years of employment.
The most impressive factor is the effect on gross industry output and GDP are up 14% while the number of U.S. jobs supported rose 12% since the previous report issued two years ago.
The study, which was conducted by technology transfer experts and former senior economic consultants, is based on data gathered by the Association of University Technology Managers (AUTM) in its annual Licensing Activity Survey. The most recent 2015 survey showed:
- 1,012 start-up companies were formed, an increase of 11 percent from 2014, making a direct impact on local economies with more than 72 percent of the new businesses remaining in the institution’s home state
- 15,953 new US patent applications were filed, a gain of nearly 15 percent, and 6,680 US patents were issued in fiscal year 2015, up 5 percent
- 879 new products, which have benefitted countless lives, were introduced into the market.
BIO is the world’s largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative health-care, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO Internal convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world.
The Association of University Technology Managers is a nonprofit organization dedicated to bringing research to life by supporting and enhancing the global academic technology transfer profession through education, professional development, partnering and advocacy. AUTM’s more than 3,200 members represent managers of intellectual property from more than 350 universities, research institutions and teaching hospitals around the world as well as numerous businesses and government organizations.
Other Countries with Similar Bayh-Dole Legislation
- South Africa
- South Korea
- United Kingdom
Major provisions of the Act include:
- Non-profits, including universities, and small businesses may elect to retain title to innovations developed under federally-funded research programs
- Universities are encouraged to collaborate with commercial concerns to promote the utilization of inventions arising from federal funding
- Universities are expected to file patents on inventions they elect to own
- Universities are expected to give licensing preference to small businesses
- The government retains a non-exclusive license to practice the patent throughout the world
- The government retains march-in rights.
Ultimately, it is believed that these improvements in government patent policy will lead to greater productivity in the United States, provide new jobs for our citizens, create new economic growth, foster increased competition, make government research and development contracting more competitive, and stimulate a greater return on the billions of dollars spent each year by the government on its research and development programs.