The attitudes of researchers and universities toward business are changing.
New Millennium, New Attitude?
by Wilder D. Smith photography by Daniel Peck Studios
n 1996, Analytical Chemistry chronicled how six academic professors pursued a commercial venture outside the laboratory walls of their respective universities. Those professors often had to deal with issues such as allocation of research time, patent and licensing rights for their technology, profit distribution, discouragement from their universities, and, ultimately, scrutiny from their peers. Analytical Chemistry revisited some of those same professors, along with some others, and asks what has changed for academics venturing into the business world. Despite the risks of business ventures, academics continue to see commercialization as a way to validate their work. “There are so many beautiful pieces of science [gathering mold] in scientific journals without use,” says Fred Regnier, a professor at Purdue University. “Perhaps commercialization is a test to see if [academics] and their ideas can survive in the world outside of academia,” he says. “If I didn’t have this small company avenue, I don’t think [my technology]
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“I felt the need to make a choice between the university and the business. So I left the university. . .” Patrick Treado
would have had an impact on the field this fast,” says Ed Yeung, a consultant to a local CE company and a full-time professor at Iowa State University. Bob Cotter, a professor in the School of Medicine at Johns Hopkins, agrees: “For most scientists, [the commercial market] is the opportunity to see what they have developed in labs put into the public arena.”
Finding time to do both A new awareness exists about the “costs” of serving in both the academic and commercial worlds. In 1996, it was estimated that business ventures would require about 20% of a professor’s time. However, for those researchers who attempted to work in both worlds, managing their full-time duties for a university and finding the time to make a business successful often became a problem. “That was the problem in the earlier article written on this topic, and it is still the problem,” says Peter Kissinger, CEO of Bioanalytical Systems and part-time professor at Purdue University. Kissinger knows first-hand the problems associated with finding the time to pursue both endeavors. He has been running a business successfully while carrying out his academic duties since 1974. Does he believe today’s professors should follow in his footsteps? “Absolutely not,” says Kissinger. “The problem with combining these two things is the fact that there are only 24 hours in a day,” he says. Regnier came to a similar conclusion. “You can’t do both,” he says. “A professor who is not with a company already works 12–14 hours a day; [running] a company requires the same effort.” Five years ago, Regnier divided his time between his academic duties at Purdue University and his position with Perseptive Biosystems, but he found that flying between Indiana and Boston every week was too hectic a schedule to maintain. “I couldn’t do both,” says Regnier. “I was devoting about 80% of my time to the company and only teaching a couple of courses.” In 1994, Regnier took a 2-year absence from Purdue to concentrate solely on Perseptive Biosystems. “It’s my philosophy that if you want to have a business, you have to leave the university, and vice-versa,” he says. Regnier later returned to the university and now devotes all of his time to academia. Patrick Treado, CEO of ChemIcon, moved in the other di196 A
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rection. Five years ago, Treado was an assistant professor at the University of Pittsburgh and head of ChemIcon. “I wanted to see a concept turn into something that would change people’s lives,” he recalls. “I didn’t want to just write a bunch of papers that nobody read.” However, the demands of the two jobs became too much. “Basically, the business became a full-time job on nights and weekends for me. I felt the need to make a choice between the university and the business. So I left the university in 1998,” he says. Nevertheless, there are some options for professors who still want to mix business and academia. Some professors start a company and then, over time, turn over its main operations to former students. Yeung was able to do this with CombiSep, which he helped to create. “I only average about 2–3 hours a week with the company,” he says. “I am able to do this because one of my previous post-docs, who is familiar with the technology, went over to work for the company.” Another option is to follow the lead of William Fateley, who recently retired from Kansas State University. Fateley sacrificed his summer vacations to work on his business.
Crossing party lines: The Ivory Tower Club “If we touch the business end or do things for money, [our intentions] become ‘dirty’,” says Yeung. At one time, this was the unwritten code by which all academicians were judged. “When you make the transition to leave academics and go to the commercial side, there are some people that take the perspective that you either sold out or are just doing it for the cash,” says Treado. Regnier remembers some of the harsh criticism he and his colleagues received. “I was told we were second-class scientists and that we probably entered the business world because we couldn’t compete in the academic world anymore,” he says. “[Colleagues and faculty] even wrote me letters saying they believed I was either exploiting my graduate students at the time for my own financial gain or would in the near future,” says Regnier. “That cuts like a knife in your heart.” However, most professors agree that these negative attitudes are declining. Richard Sacks, a professor at the University of Michigan, attributes the change to an “awakening” by academ-
“I think universities have learned that they have to support their faculty members or risk losing them.” Fred Regnier
ics that using commercial ventures to solve societal problems is a noble endeavor. Moreover, university administrators and federal agencies have embraced the notion of academia as a source of new business ideas.
a more flexible position toward their business-minded faculty. “I think universities have learned that they have to support their faculty members or risk losing them,” he says.
The importance of tenure University support A decade ago, few universities supported faculty working with businesses. Today, universities encourage it; some universities even assist their faculty in finding outside business ventures. Why the change in attitude? Some argue that the profits universities can receive from licensing and royalties are a major factor; others believe it has a positive economic impact on the surrounding communities. “There is now a part of the chickenand-the-egg scenario there,” says Todd Sherer, director of technology at Oregon Health Sciences University. “State governments continue to look to higher education to support the economy by educating its workforce, and more frequently the expectation is that new knowledge will be used to catalyze or support local industry,” he says. Kissinger sees the same trend. “So you now have a buy-in to this concept, from the governor, to the legislature, to the department of commerce in the state, to the president of the university, to the dean, to the department head, to the professor, and to the grad students,” he says. Many point to the communities surrounding Stanford University and the Massachusetts Institute of Technology as good examples of neighborhoods that have flourished economically because of the start-up companies created by local faculty and students. Others believe that university support helps to keep faculty from leaving their positions for more lucrative industry jobs. Institutions such as Oregon Health Sciences University collaborate with small companies to find matches for researchers interested in participating in outside business ventures. “We are trying to convince them that they don’t have to leave their positions,” says Sherer. “Most academic researchers don’t want to leave their post, so we think the secret is giving them some help to manage their companies,” he adds. “This makes good sense for the company and the university as the researcher is all too often not a good company manager and/or fund raiser.” Regnier agrees that universities have realized that they have to take
In the past, pursuing any business ventures before getting tenure wasn’t even considered an option by most professors. Sacks, who was fully tenured at the University of Michigan before starting Chromatofast, agrees. “I can’t imagine an untenured person even attempting such a venture. It would be like committing academic suicide,” he says. “Most professors will tell you that tenure is a good thing to have,” says Cotter. “There is a certain power and academic freedom that comes with it.” “Get tenure first,” says Fateley. “You have got to establish the fact that you are wanted [at the university], and that equals tenure.” But other professors take a somewhat different view. “[Some professors] may not even want tenure, and their main goal is to start a company,” says Kissinger. “It depends on what your real commitment to the university is.” “I think tenure is important but probably overrated,” says Regnier. “It never did anything for me but get me a raise in salary. I never have figured out what tenure bought me at the university.” Regnier believes generating a steady flow of grant money into the school and doing good research are just as important as getting tenure. With more professors pursing outside business ventures, the question arises: Should business activities be included in the tenure selection process? “No, definitely not,” says Kissinger. “No matter how much lip service anyone gives to this concept of starting up a business, that is not a requirement for tenure,” he says. Surprisingly, Regnier agrees. “How can your colleagues judge or put a value on your activities outside the university?” he asks. Regnier cautions young professors against neglecting the main criteria for tenure—research, teaching, and departmental service. “If you are going to do a business, you should still carry 100% of your load at the university,” says Regnier, “I don’t think you have the right to expect a free pass because you are starting a business.” Wilder D. Smith is an editorial assistant with Analytical Chemistry. A P R I L 1 , 2 0 0 1 / A N A LY T I C A L C H E M I S T R Y
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