Last month, I gave a talk to 200 venture capitalists from across the Midwest — entrepreneurs, business leaders, innovators and investors with the funds to advance cutting-edge ideas and product development.
This was a crucial audience for a timely message about the University of Michigan’s success in technology transfer — the process of turning our scientific and technological advances into marketable products or services. Venture capitalists and businesspeople are the linchpin in our university’s vast potential to spur the state’s and the region’s economy.
Photo courtesy Dr. Ora Pescovitz.
With their help, U-M researchers can create a new industrial identity for the state that builds on Michigan’s strength in automotive technologies. The same is true for our colleagues at universities across Michigan, including Wayne State and Michigan State, our partners in the University Research Corridor.
Together, we can forge innovative paths in health services research, medical device development, drug discovery, information technology and other areas where our academic research community excels.
According to the Michigan Venture Capital Association:
• In 2008, 55 venture capital firms were active in Michigan. Today, there are more than 70.
• Nearly 45 percent of Michigan’s venture capital-backed companies are a result of university tech transfer activities.
In addition, since 2001, U-M alone has spun off 93 new startup ventures, a record well within the top 10 of all universities nationwide.
I’m especially proud that the U-M Health System is an engine of biomedical tech transfer. And I’m grateful that President Mary Sue Coleman and Vice President for Research Stephen Forrest have placed such a high priority on this effort.
Here’s some evidence of our determination and success:
• In fiscal 2010, U-M produced 290 discoveries — 118 from the Medical School. We also recorded 97 agreements with industry, including 10 startup ventures, and realized a 16 percent increase in license royalties, with total revenues reaching a record $39.8 million.
• Plans are in motion to create a “Venture Accelerator” at the North Campus Research Complex for startup companies.
• Of about 570 entries from around the globe, seven U-M biomedical spinoff companies are among 50 semifinalists in the Accelerate Michigan Innovation Competition, the world’s largest business plan competition for startups.
Our potential is limitless. What matters now is what we do with our potential and that we have legislation and policies in place to support cultivation of vibrant life sciences, green energy and technology industries in Michigan.
