I/
real world of indwtrial chemi~tr y
edited by
W. C. FERNELIUS Kent State University Kent. OH 44242 HAROLD WlTTCOFF Chem Systems, kc.. 303 South Broadway Tarrytown. NY 10591
A Private Corporation as Part of a Chemistry Department An Eleven-Year Synergism Richard E. Bayer Carroll College, Waukesha. WI 53186 Background and History Academic i n s t i t u t ~ m wnstantly i strive to meet ihe rhallmgrs o i t h e future. Nohod\. has a rt8mult:tr list uf ideas and programs that spell success for the nixt decade, but some obvious concerns which need attention should he on everyone's list and would include the following. In order to keep an academic institution strong and relevant, the educational experience must match the needs of the students. Certain educational experiences must be related directly to real-world concerns to give the stamp of reality to those experiences. A caring institution must find ways in which dollars can he produced to assist students in paying for their educational experiences. Finally, a beneficent institution cannot operate isolated from its surroundings hut must provide answers to problems within the local community and serve the needs of people in every way possible. This serves not only to enhance the quality of life in that community, but also to develop friends, the number and quality of whom help determine the strength of an academic institution. During the late 1960's several National Science Foundation programs such as the Student Originated Studies program provided the opportunity for student teams to work on projects that provided real-world experiences and helped to solve problems for people in the local community. Unfortunately the guidelines for eligible projects changed frequently, sometimes annually, and it hecame difficult to anticipate the direction of these federal programs. As a result, itbecame impossible to plan for more than one year in advance and therefore to incorporate these very positive programs into the curriculum. Thus, they never became an integral part of the on-going educational experience. By 1970 the future directions and needs for Carroll College had been described and some ex~eriencehad been erained with programs involving students, work projects, research, and independent study. The list of communitv and private moblems-and concerns that required some techni~aiex~erti'se for resolution was ever increasing, and many of our science stu-
not involve government supPo&, (2) was long lasting, (3) could become an integral part of the curriculum, (4) could provide students with a researchlwork experience, (5) could provide reasonable salaries for students, and ( 6 ) could provide a service to people. The answer came on a July evening in 1970 during a very productive student research seminar. I decided that a new venture should be launched to provide students with a unique learning experience on a continuous basis. The
idea was discussed with Roy Christoph, then chairman of the Biology Department, and we agreed to continue discussion with a mutual friend who was a chemical enaineer and vice president of a large Milwaukee industry. shortly, the three of us aareed to form a private, for-profit, corporation. We soughtlegal assistance-and were advised to-draw up an agreement with the College which would provide legal protection for both parties. It was also important for the private corporation to pay taxes, have our own insurance, and not participate in the tax-exempt status of the academic institution. Incorporation of the company, named Bionomics Cornoration. was fairlv" simole. . ,because our business nartner was aware of statutory regulations and had friends who could answer auestions and provide advice. We hired an accountant. selected an insurance agent, and obtained some help in advertising. Each of the three officers invested $500 in the company and received 500 shares of stock. This initial capital was used to pay incorporation fees and advertising costs, buy stationary and office forms, purchase a telephone answering device, and install a private business telephone. No additional capital has been needed to date. The formal aereement with Carroll was a ~ v r o v e dbv the Board of ~ r u s t e e sbut , initially the ~ollegeB;dministration wondered how things would overate, and whether everv department on c a m p ~ w o u l dbe& a similar operation. he fact that the two faculty involved had more than fifty years association with the College helped to allay initial administration concerns. The administration could assume from this long association with the College and past performance of the people involved that the best interests of the College were being considered. The original agreement between the College and Bionomics Corporation was not very complex and has never been changed or modified. It included the ideas that every attempt would be made to hire Carroll students as employees, and the company would take care of its own financial and business matters and have its own insurance nroeram. The comnanv would he permitted to use instrumenis, laboratory space; and equipment located in the Carroll Chemistry and Biology Departments and pay the institution a percentage of the gross income. If the College wished to terminate its association with Bionomics Corporation, it was required to provide a one-year termination notice. The corporation also aareed to make additional contributions to the.academic institution as financial circumstances allowed. Following a year of operation we recognized that most laboratories were providing specific services (specific anaVolume 61
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lvtical tests, analvsis of samdes, evaluation of ~ r o d u c t sb) u t few were interested in accepting general problems t h a t required a n understanding of fundamental laws of science and expertise in many areas. This, therefore, became our "area" of work, and we have had little or no competition. Our clients include consultants with no direct laboratory affiliation who require laboratory data to substantiate their proposals, other laboratories not interested in working on nin-routine prohlems, and industries having problems h u t lacking in-house expertise. Examples of Problems and Projects Over the last eleven years, Bionomics Corporation bas worked with more than 60 different clients. T h e following examples indicate the challenging work t h a t is involved and the great diversity of projects. 1) Research was done to develon a orocess for the addition of sodium silicate to oublic waterbuoblies to control hieh iron concmtmtiws.'I'hr prow* h,>dadvanmges w e r the mwe common ~~~~~~
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sdium phosphate add~lianpnx t-3. Bionomicx Corporation now monitors and solves community water problems in several states. 2) An attorney asked if it were possible for an analytical chemist to "analyze" a spent ampoule from a police breathalpr test and answer some questions regarding the validity of the test. Research on the reaction of alcohol and other oreanie comoounds with K2Cr2O7w i t h respect Iirskills and apprt~xinlate t s hired a\ ailable t i ~ r ~Aes. project, brcanir wailat~les t ~ ~ t l e nare fi,r the iob. Initial discu;.;it~niilc~.;crit~ethecx~erimentalwork possibihties and a s work begins, t h e student is required t o make decisions for and modifications of the experimental ~~
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design. All work is done within a time framework, and students can feel the tensions t h a t emerge when designed experiments do not work. At times, critical experiments must be completed during exam week, and students quickly learn t o accept responsibilities. Evaluation As we look back on work done over the oast decade. Rionomics Corporation has accomplished mosi of its goals: Ererv vear Rionumics C o r ~ o r a t i o ne m ~ l u v twelve s to fifteen stud& and provides fo; them a n experience beyond the regular science curriculum. Some students graduate with more than twice the usual laboratory experience. Students, a s emvlovees of Bionomics, earn a reasonable waae, and several students are ahle to earn several thousandsbf dollars each year. Upon graduation the list of Corporation projects is clearly described on the students' resum6s. T h e time involved in running Bionomics is difficult to assess, and, at times, the pare is fairly intense. Carroll faculty have never received a reduction in teaching hours or committee work to direct this work. The hours would approximate the effort associated with an active undergraduate research program. Much \.aluut)lc time was gained when we stopped writing yeurly grant proposals for researrh funds, student st:oends. and facultv summer salaries. althoueh our erant ac;ivities hare continued in other areas. T h e &erage;ross inorme for Bionomics C~,ronrationhas hren about S20.000 per . . year over the last t e n years, and we are able t o give a snbstantial check t o the college administration every year. T h e problems we have solved have become excellent student laboratory experiments in chemistry courses and practical examples of chemical concepts and theories in lectures. This decade of industrial experience has provided a deeper understanding of the operational parameters t h a t guide the business world and we can relay this information t o our students. Business contacts, job vacancies, and new needs in technical expertise have been valuable in improving career couuseline services. The C2lege administration has appreciated Bionomics Corporation because of its academic and financial contributions and because it required no institution funds t o get started. The Colleae admissions and development offices are aware of ~ i o n o m i &and its contributions. They believe t h a t this venture has strengthened the academic program and produced many friends for the College. Ingredients lor Success Several ideas and suggestions are listed to help describe and characterize the people and operational conditions t h a t are useful in forming a successful corporation.
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Start a private corporation for the right reasons. Bionomics Corporation was designed as a for-profit operation, but it has always maintained its primary goal of helping students in their educational exoeriences. Manv times durine the last decade
of distorting the other major objectives of the program. Therefore, one should be absolutely certain of his priorities before beginning. The concept of a corporation must fit into the goals and objectives of a science department. There must be individual,departmental, and administrative support. It is very useful for faculty to attract the best available talent from the industrial world as partners. This special expertise is very useful in solving problems and answering questions. The concept ofa priuate corporation is a great incentive for industrial leaders to become interested in a new venture. The name of an academic institution is extremelv imoortent. and recommended to form a private corporation that is separate from the academic institution.
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It is advantageous to farm a company with no permanent employees. One of the most frustrating problems in business arises when promises are made which cannot be fulfilled because there is no work. It is important that faculty feel no unusual pressures to seek work. When there is work to be done. comoetent oeoole . . (studrnts) nre hired fur the ph. and the niadrmic ~nitirution rrrrws i t 5 ahnre of !he in am^. Other than wlephme, tclephme lisrings,and bookkeeping costs, rherenre no fees, rents,erc..1ha1 must be paid on a regular basis. Recommended characteristics of principal corporation officers: It is important to develop a rapport with people working in industrv. to listen to oroblems. and to define ouestions. It is imoortaG to eommunhe with'oeo~le . in manvdifferenttechnical areas, ro build a network of friends, nnd to benomean "expert" in many arras in a relarively sllorr period of rime. I t is useful to be able to be involved in many things at once, to be able to make estimates of work time, to relate to economic pressures, and to be able to make important decisions based on minimal technical data. Above all, it is important to have good credentials as a laboratory scientist and to have confidence that a problem can be solved.
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Conclusion The formation of Hionomics Corporation eleven yrars ago in uniuue association with Carroll Ctdt,n: has been very useful to many students. From its first day, the company moved in positive directions, providing relevant experiences to students and helping them pay their college bills, sharing profits with the College, attracting science students to Carroll, and being a serviceto many people. The corporation did not involve College dollars to get started, it is integrated into the curriculum. i t does not deoend on eovernment suooort. and its limits are bounded oAly by thecreativity of it's bffiiers. The Corporation has never forced the College or the department into an unwelcome situation or direction. I t is difficult to project how an arrangement of this kind would work a t other academic institutions. There is potential of course, for twistinn the goals of such an enterprise and usinn it for self gain. If deep trust and integrity exists among aii those involved, the possibility for success is great.
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