Hearing of the Subcommittee on Research and Science Education of the House Committee on Science and Technology - From the Lab Bench to the Marketplace: Improving Technology Transfer

Statement

Good morning and welcome to today's Research and Science Education Subcommittee hearing. This morning we are taking an in-depth look at how we turn the new knowledge and technologies created at our universities and colleges into products, companies, and jobs. I am particularly excited about this topic because of my experience as a university professor and my recognition that America's international competitiveness and economic growth will increasingly depend on successful technology transfer from lab to marketplace. At a time when we are increasingly asking the question "where will new American jobs come from?", we need to be looking more closely at how we can best help our universities -- filled with the world's best researchers -- continue to be economic engines that power America's future.

Let me begin by making one point clear: Our competitors have noticed how well our system works, and many are trying to imitate it. Countries like China and members of the European Union are now investing heavily in their own R&D programs. Combined business and government spending on R&D in China, for instance, has been increasing by almost 20% a year over the past decade, and China has already overtaken Japan as the number 2 publisher of scientific articles. They are determined to move up the value chain, and we need sustained investments and smart policies if we want to remain the world leader in science and technology.

Two weeks ago we took a big step forward when the House passed the America COMPETES Reauthorization Act. This bill includes substantial new investments in basic and applied research, a skilled STEM workforce, the kind of public-private partnerships that facilitate technology transfer, and in research infrastructure -- including mid-scale research instrumentation and university infrastructure, which was a special focus of mine in developing this bill. Included in the COMPETES Act is my 5-year reauthorization of the National Science Foundation, whose primary mission is supporting fundamental research and developing STEM professionals across almost all disciplines of science and engineering. My bill would double the NSF funding, much of which would go to our research colleges and universities.

In discussing technology transfer programs, it is important to remember that although innovations often begin with these kinds of federal investments, the path from the lab bench to the marketplace is anything but straightforward. It depends on a complicated network of private companies, scientists, universities, venture capitalists, startups, and entrepreneurs.

It also depends on luck, timing, and location.

Some universities have more successful tech transfer offices. Some scientists are better prepared or more inclined to engage with the business community. And some parts of the country have cultivated networks of entrepreneurs and venture capitalists who know how to turn an idea into a product that can transform our everyday lives.

According to a survey by the Association of University Technology Managers, the number of academic invention disclosures filed, the number of U.S. patent applications filed, and the number of university spin-off companies formed have all grown significantly over the past few years. But the survey also indicates a wide range of success across our academic institutions, with licensing income varying from nearly nothing to almost $800 million. In order to strengthen the current system and improve the return on federal research spending, it is imperative that we gain a better understanding of this process from multiple perspectives.

I'm interested in hearing from today's witnesses about best practices or policies that can improve the technology transfer process, and the appropriate role of the National Science Foundation in supporting such efforts. I also hope to hear their thoughts on the role of regional networks, how we can improve collaboration between scientists, entrepreneurs, and venture capitalists, and how we can better track and quantify the impact of both technology transfer activities and research spending. Finally, I'd like to learn what impact the recession is having on the creation of new startups, and to hear the witnesses' ideas on how we can make sure that American discoveries turn into American companies and jobs.

I thank all the witnesses for being here and look forward to your testimony

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