Tracking innovation : an examination of university research and its relationship to early stage venture capital

Abstract

In seeking to understand the relationship between university technology transfer and early stage venture capital, one must review the historical impact of the Bayh·Dole Act, the amendment of the "Prudent Man" rule by the Department of Labor, the historical association between academia and venture capital, as well as the rise and influence of formal and informal social networks. Within this thesis, one can observe the issues that arise in designing successful university commercialization processes and licensing relationships. Specifically, this paper will outline the common formal and informal elements found within the process of commercializing university-born technology and research at the Massachusetts Institute of Technology ("MIT"). Utilizing a sample set of licensing arrangements from MIT's Technology Licensing Office, a compilation of interviews with 10 early stage venture capitalists and a series of personal insights from academics and entrepreneurs, this thesis will seek to understand if a formal "entry point" exists for early stage venture capitalists seeking to harness the best university research for commercial applications.