The gap is significant. Both the Canadian federal and provincial governments have made a strong push over the past few years to invest in university research and we have witnessed the impact. At the University of British Columbia (UBC) (Vancouver, BC) alone, external research funding nearly tripled within five years to an all-time high of $376 million in fiscal year 2003. Last year, funding supported over 5,500 research projects and spawned 145 invention disclosures.

It is important to note that basic research provides the underpinnings for a strong knowledge economy at a university. However, we must have mechanisms to assess the commercialization potential of invention disclosures from basic research. Therefore, investments into strategic prototype or proof of principle development funds must be increased proportionately to basic research funding. This ensures development funds are in place at the critical early stages of technology development to assist in distinguishing what technologies should or should not be protected and licensed.

A few examples of strategic development funds include the Natural Sciences and Engineering Research Council of Canada’s (Ottawa, ON) Idea to Innovation (I2I) program and the Canadian Institutes of Health Research (CIHR) (Ottawa, ON) Proof of Principle (POP) program. CIHR’s POP makes the case for programs of this type very concisely on its website¹:

The University-Industry Liaison Office (UILO) at UBC created the Prototype Development Program (PDP) in 1989. It was the first of its kind and unique in North America. The PDP addressed the need for information between the feasibility stage and ultimate commercialization of selected UBC technologies to provide the funds and additional information required to determine their value and marketability. Before this program was developed, technologies were not developed, licensed below their perceived market value, or could not be commercialized.

The gap between basic and applied funding can be bridged by investing federal funds into supporting prototype or proof of principle funds in proportion to basic funding increases. Firstly, through direct support to university technology transfer offices so they can build internal PDP funds for quick and early screening. Secondly, the continued support to I2I or POP programs.

Applied funding in the form of prototypes spawns other positive impacts. Since 1989, 138 invention disclosures from UBC received a total of $4.7 million in PDP funding from various sources, $890,000 of which was funded by UBC. The funding stimulated innovation and gave rise to indirect private investment of $436 million, another 100 UBC invention disclosures, 34 UBC spin-off companies based on PDP technologies, and UBC royalty revenue of $2.25 million from the commercialization of PDP-funded technology.

Reference:
(1) Proof of Principle Initiative – CIHR. <www.cihr-irsc.gc.ca/e/19879.html>.

Caroline Bruce, PhD is associate director, International Business Development at the University-Industry Liaison Office (UILO) at UBC. Bruce joined the UILO in 1996 to focus on technology transfer in the biomedical and pharmaceutical fields for UBC and its affiliated hospitals. In April 2004, Bruce took up her current role in order to focus on expanding UBC’s participation in the world’s burgeoning biotechnology community.