Chapter 5: Science & Engineering Indicators 93

Income From Patenting and License Arrangements

Although no nationally representative data are available on the revenues universities derive from patents and licensing arrangements, a recent General Accounting Office study (GAO 1992) reported on the patent and licensing activities of 35 major research universities:

"During fiscal years 1989 and 1990, the 35 universities in our study (1) granted 197 exclusive licenses and 339 nonexclusive licenses and (2) earned $29.3 million from exclusive licenses and $52.7 million from nonexclusive licenses. Typical licensees given exclusive rights to commercialize the results of federally funded research were small U.S. businesses; and most exclusive licensees were pharmaceutical, biotechnology, or other medical companies.

"Most of the surveyed universities substantially expanded their programs to transfer technology to businesses during the 1980s. Twelve universities formed an office to license technology, while many others expanded and/or reorganized their technology licensing activities. For example, Harvard University, which granted its first license in December 1980, granted 39 licenses in fiscal year 1990."

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