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The
IUCRP website
Accelerating UC
Contributions to the California Economy
The world has entered a knowledge-based economy. High technology
businesses are fueling economic growth, creating high paying
jobs, and driving California's economic recovery. Ideas and
innovation are the lifeblood -- and UC President Richard Atkinson
intends to capture for California the fullest benefit from
publicly funded research and graduate education.
The President's Initiative for Industry-UC Cooperative Research
(IUCR) is creating new research partnerships between California
businesses and UC researchers to speed delivery of a wide
spectrum of social and economic benefits. Specifically, the
IUCR is launching a number of new systemwide matching grant
programs that draw California's most economically promising
industrial sectors into cooperative projects with UC researchers.
These projects are jointly funded by industry and the University
to advance targeted fields of science and engineering ranging
from health to multimedia and from manufacturing to agriculture.
They draw industry into early stages of research to promote
innovation and to advance technology transfer.
The IUCR is guided by an Advisory Group comprised of leaders
from California businesses and economic development organizations
and UC. It was launched in fiscal year 1996-97 with $8 million
in State and University funds ($5 million State and $3 million
UC) – and it is expected that industry will contribute
at least $10 million in matching grants, for a total of $18
million in the first year. Over the next two years, and with
the support of the Governor and the State Legislature, President
Atkinson plans a rapid expansion to $20 million in IUCR funds
and $20 million from industry – creating $40 million
for new research to accelerate California's knowledge-based
economy.
Creating New Sources of Funding for Research and Graduate
Education
The IUCR expands private sector funding for UC research and
training at a time of shrinking Federal funding. The jointly
funded projects enable UC scientists to develop the research
track record needed to increase their competitiveness in the
national arena. The projects also help to expand California's
capacity for innovation and ensure uninterrupted preparation
of the highly skilled workforce needed by the state's growing
high technology businesses.
Enhancing the Competitiveness of California Businesses
At the same time that the IUCR attracts California businesses
to support early stages of UC research, it also increases
their access to UC's world class research resources and the
brightest graduate students. UC research often leads to new
products, which in turn catalyze new opportunities for manufacturing
and new markets for sales -- and create California jobs. The
IUCR overcomes critical gaps that currently slow that process
by blocking technology transfer from UC labs to California
businesses. It brings UC research into direct connection with
California businesses. It also provides a mechanism by which
California businesses can provide input to the graduate education
process and ensure that UC continues to produce the needed
highly skilled workforce.
Responding to Competitor States
Other states have launched aggressive and well-financed campaigns
to lure away California's high technology businesses. California
is responding with an aggressive strategy to keep them here
and to attract more. In August 1996, Governor Wilson signed
legislation increasing the tax credit from 12% to 24% on business
investments in university research. The expanded tax credit
provides a strong and broad incentive for businesses to participate
in basic research. The IUCR complements and amplifies that
incentive in a highly structured way -- it identifies California
best opportunities for economic expansion in high technology
industrial sectors and then creates targeted incentives for
selective industry-UC research partnerships that are known
to accelerate innovation needed for industrial competitiveness.
In that way, the California R&D Tax Credit and the IUCR
provide a potent one-two punch against California's competitors.
Building Leadership on Federal and State Research Funding
California has a lot at stake in the debate over the future
of public funding for basic research and graduate education.
The state's leadership role in development of high technology
businesses is owed, in part, to the national competitiveness
of UC and other California research institutions in the federal
funding arena. The IUCR advances rigorous assessments of the
impact of publicly funded research and training on the California
economy through technology businesses. It provides a solid
foundation for federal and state policy to support a knowledge
based economy. The IUCR will provide information to California
legislators and economic development organizations, and to
the public.
UC Research for California's 21st Century, Knowledge-Based
Economy
The launch of the President's Industry-UC Cooperative Research
Initiative has begun in fiscal year 1996-97 with two matching
grant programs aimed at high technology business sectors in
which California has a competitive and growing position:
- The Biotechnology
STAR Project (Strategic Targets for Alliances in Research)
The Biotechnology STAR Project was launched July 1996 with
$5 million in UC funding. The new matching grant program
has already awarded $8.3 million in new awards to 29 cooperative
research projects ($3.2 million in UC funds and $5.1 million
from California biotechnology companies). The second competition
in Spring 1997 is expected to increase the FY 96-97 total
to $12 million and 40 awards. The Biotech STAR Project is
designed to amplify California's leadership in both basic
research and commercialization of biotechnology. It emphasizes
the factors that lead to that success: excellence in basic
research and graduate training, and efficient technology
transfer. Through the first competition, the research agreement
development process has already been effectively reduced
to 100 days. California is home to one third of the nation's
biotechnology firms and, in the last fifteen years, alone,
has gained more than 40,000 new jobs (average annual salary:
$60,000). The Biotechnology STAR Project will help California
keep those companies, attract more, and create additional
new jobs. The program also supports systematic economic
assessment of the impact of the jointly supported research
projects through the Critical Linkages Project.
- The MICRO
Program for Microelectronics
UC's successful, fifteen year old MICRO Program
demonstrates UC's track record in enhancing economic development
through industry-UC research collaborations. Since its establishment
in 1981, MICRO has played an important role in nurturing
the development of the microelectronics and computer industry
in California. It has an annual funding base of $4.6 million
from the University and has consistently attracted matching
funds from industry exceeding that base. MICRO's impact
on California's economy is the result of both the investments
it has made in research and the high quality students it
has attracted who have remained in California to develop
the industry. The MICRO Program has brought more than $103
million in new private sector funding for University research
and education. It awards funds to faculty-initiated research
projects that are jointly supported by microelectronics
companies. MICRO also provides graduate student fellowships
to ensure an uninterrupted supply of well trained scientists
and engineers for California's microelectronics industry.
MICRO help ensure California's continued world leadership
in microelectronics.
- Expansion
Programs
During the next two years, additional industry-university
cooperative research programs will be launched. Fields currently
under consideration include information sciences, multimedia/entertainment,
transportation, agriculture, materials, manufacturing, and
environmental sciences, among others. A central criterion
for including any field in the IUCR is that California must
have a growing knowledge-based economy in that field that
increasingly depends upon innovations from basic research
and highly skilled personnel to create product and market
opportunities. Each new systemwide cooperative research
program will mutually enhance UC research and advance industrial
competitiveness. Each new program will advance goals supported
by UC and industrial leaders, alike.
For further information, please contact:
Susanne L. Huttner, Ph.D., Director
345 Giannini Hall
University of California, Berkeley
Berkeley, CA 94720-3100
phone: (510) 643-0725
fax: (510) 643-1450
E-mail:
Huttner@garnet.berkeley.edu
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