Relates to the innovation and commercialization functions of state universities

Title of bill

An act to amend the education law, in relation to the innovation and commercialization functions of the state university

Purpose

Establish commercialization development programs within the state university system to help strengthen its capacity to innovate and commercialize technology.

Summary of provisions

A technology accelerator fund is created to help support efforts by individual researchers on state university campuses to transform research discoveries into marketable technologies, products or processes to be commercialized or manufactured in New York State. The chancellor is charged with establishing a peer review process for awarding applicants. Awards would be limited to $100,000 and would be used to help meet the costs of prototyping and other expenses related to developing new technologies.

An Entrepreneurship in Residence (EIR) program would be created at selected technology transfer hubs within the university system. The EIR would be a proven entrepreneur and would assist campuses with the necessary steps in commercializing new technologies. The university would annually evaluate the impact of these programs on the system's commercialization efforts.

Amends Education Law by adding a new section, 355-d.

Justification

The State University of New York is one of great engines of innovation in New York. It has advanced several proposals worthy of support to strengthen the State's intellectual infrastructure for innovation including:

1) The SUNY Technology Accelerator Fund (TAF). A barrier to the commercialization of university technology is the lack of funding for promising technologies after sponsored support ends and before the technology is mature enough for conventional commercial investment. When basic research funding ends, further evaluation and "proof-of-concept" is often necessary to establish that a new technology is commercially viable.

The SUNY Technology Accelerator Fund demonstration project initially funded five projects in June 2011, supporting new diagnostic tools, cutting edge electronic devices and innovative technologies in the fields of nano-bioscience, energy and biotechnology. Additional funding for this successful program would help SUNY support more researchers in their commercialization efforts.

2) The SUNY Entrepreneur-in-Residence Program (EIR). EIR programs are widely adopted today both by universities and venture capital firms as a means to bring experienced management to the challenge of commercializing a new, promising technology. Universities utilize EIRs to help select high potential startup technologies and to develop the business and company launch plans. EIRs are also used to provide entrepreneurial experience and mentoring to a first time company founder, which increases the probability that an enterprise will be successful

Through the SUNY EIR program, entrepreneurs with proven subject matter expertise and management experience will work with aspiring entrepreneurs at SUNY campuses across the state to identify the best ideas and most promising business opportunities and help map them to sources of funding and leadership talent so they may grow to full scale. The program will focus on SUNY's strengths in key research areas, such as energy and healthcare and work in concert with other SUNY programs.

An additional enhancement to a SUNY EIR program is the integration of SUNY's management and law graduate students who will help with market research and business plan development, intellectual property strategy and corporate legal structure, thereby fostering and training a new generation of entrepreneurs.

Legislative history

2013-14 S.1654; 2012 S.7093.

Fiscal implications

To be determined.

Effective date

Immediately.