BIO Releases New Study Showing Industry/University Partnerships Critical to U.S. Economy

Separate survey shows importance of tech transfer and flexible licensing
practices
WASHINGTON--(Business Wire)--
A study released today by the Biotechnology Industry Organization (BIO) provides
first-of-its-kind data on the importance of university/industry research and
development partnerships to the U.S. economy. The study of university technology
licensing from 1996 to 2007 shows a $187 billion dollar positive impact on the
U.S. Gross National Product (GNP) and a $457 billion addition to gross
industrial output, using very conservative models.

"It has long been believed that the Bayh-Dole Act, which permits and encourages
industry to partner with research universities to turn federally-funded basic
research into new and valuable products, is a critical factor in driving
America`s innovation economy. Indeed, because of this inspired piece of
legislation, the U.S. leads the world in commercializing university-based
research to create new companies and good, high-paying jobs throughout the
country," stated BIO President & CEO Jim Greenwood. "This new study provides the
evidence to back up that belief."

Before the passage of the Bayh-Dole Act in 1980, inventions arising from the
billions of taxpayer dollars invested annually in university research remained
largely on laboratory shelves and were rarely commercialized because of
restrictive patenting and licensing practices. This situation changed with
passage of the Bayh-Dole Act, which allows university inventors to patent their
discoveries and license them to commercial partners with maximum flexibility and
limited federal bureaucracy. As a result, the biotech revolution was born,
turning inventions into products that are improving public health, cleaning our
environment, and feeding the world.

Greenwood added: "We cannot take tech transfer, or the U.S. patent system upon
which it is based, for granted, particularly in the current economy. Preserving
this system is critical to ensuring U.S. economic revival and spurring the next
wave of American innovation in the life sciences."

Other key findings of the study include:

* University-licensed products commercialized by industry created at least
279,000 new jobs across the U.S. during the 12-year period;
* The annual change in U.S. GDP due to university-licensed products grew each
year, illustrating that the impact of university patent licensing grows even
more important each year.

The study was funded by BIO and headed by Dr. David Roessner, Professor of
Public Policy Emeritus at the Georgia Institute of Technology. It assessed the
economic impact of university licensing solely based on royalty data, and does
not attempt to value other significant economic contributions of
university-based research, and thus the estimates are considered to be
significantly conservative.

The full study, entitled The Economic Impact of Licensed Commercialized
Inventions Originating in University Research, 1996-2007, is available at
http://www.bio.org/ip/techtransfer/BIO_final_report_9_3_09_rev_2.pdf.

BIO also released today a survey of its member companies which shows that
university-based technology transfer serves as a foundation for the creation of
many biotechnology companies and industry job growth. Half of surveyed companies
were founded on the basis of obtaining an in-license agreement with significant,
subsequent job growth.

The survey also shows robust technology transfer occurring between biotech
companies and research universities, but very limited in-license agreements with
the more restrictive federal government. Survey responses clearly demonstrate
that flexible licensing practices, including the ability to obtain exclusive
licenses where necessary, is a critical component of successful technology
transfer and product commercialization.

Notably, 71% of respondents indicated that they have more than half of their
in-license agreements with U.S.-based entities, reflecting U.S. leadership in
technology transfer and biotechnology innovation.

"This survey contributes substantially to our understanding of the importance of
university-industry collaborations to biotech innovation, and demonstrates the
need for policymakers to protect and preserve the currently flexible tech
transfer system in the United States," concluded Greenwood.

A compilation of the survey results is available at
http://bio.org/ip/techtransfer/PDF.TECH.TRANSFER.PRESENTATION.10.25.pdf and a
detailed summary of the results is available at
http://bio.org/ip/techtransfer/Tech.Transfer.Survey.Summary.Conclusions.doc.

About BIO

BIO represents more than 1,200 biotechnology companies, academic institutions,
state biotechnology centers and related organizations across the United States
and in more than 30 other nations. BIO members are involved in the research and
development of innovative healthcare, agricultural, industrial and environmental
biotechnology products. BIO also produces the BIO International Convention, the
world`s largest gathering of the biotechnology industry, along with
industry-leading investor and partnering meetings held around the world.

BIO
Stephanie Fischer
202-312-9263
sfischer@bio.org

www.bio.org

Copyright Business Wire 2009