Economic Impacts of University of California Research & Education

Cherisa Yarkin, Ph.D.

California is among the world’s top 10 economiesand the most R&D intensive

Population GDP

Venture

Investments2

Venture

deals2

R&D per

capita1 Total R&D1

(millions) ($US billions) ($US millions) ($US) ($US billions)US 299 13,202 25,700 2,454 1,045 313Japan 127.6 4,340 na na 925 118Germany 82.4 2,907 625 105 749 62China 1,312 2,668 1,900 214 88 115UK 60.4 2,345 1,712 256 533 32France 61 2,231 1,000 173 662 40Italy 58.6 1,845 na na 305 18California 36.5 1,727 12,660 1,502 1,636 60Canada 33 1,252 1,700 404 696 23Spain 44 1,224 145 31 303 13

1. Data on R&D are from OECD, 2005 at PPP except for California from NSF for 2003, in 2003 dollars

2. Data are from E&Y Global VC Insight Report 2006, except for California which is from PWC Moneytree Historical Data for 2006

Economic Impact: critical factors

People are key• Scientific leadership• Research know-how

Industry-University relationships are multifaceted• Companies have multiple relationships• Business strategies vary, and evolve• Corporate structures change, as does IP utilization, roles of founders, advisors and key executives

• Managerial skills• Networks of relationships

The Biotechnology Industry By Region

Source: Ernst & Young 2002

0

50

100

150

200

250

300

350

400

450

Total Number of Biotech Firms

Firms with UC Founders*

City number percent

San Diego 111 37 33%

South San Francisco 31 15 48%

Carlsbad 18 6 33%

Palo Alto 18 3 17%

Mountain View 13 2 15%

Alameda 12 5 42%

Hayward 11 6 55%

La Jolla 11 4 36%

Fremont 10 5 50%

Irvine 9 2 22%

Subtotal – Top 10 Cities 244 85 35%

Companies Founded by UC Scientists in The Ten California Cities With The Largest Number of Biotech Firms

*Source: IUCRP Economic Research 2002. May be an undercount, as the academic affiliations of founders is unavailable for some companies

Companies with UC Founders by UC Background (n=141)in business as of 7/1/2002

Undergrad9%

Postdocs6%PhD

9%

Faculty plus Alumni &/or Postdocs

32%

Faculty28%

Teams of UC Alumni &/or Postdocs

16%

UC Contributions to California Biotechnology

Basic ResearchFor innovation and economic competitiveness

Graduate and Postdoctoral EducationFor a skilled workforce

Scientific LeadershipFor entrepreneurism and R&D

Technology Transfer and Clinical ResearchFor transforming research development into products for public benefit and economic growth

The companies tell their story

UC provided essential expertise

Recruited key personnel

Reduced R&D costs

UC enabled them to undertake projects that

could not be done in-house

Accelerated their R&D

Research of value

Refocused their R&DAttracted

other funding

2006 Corporate Assessment of Economic Impact Survey

Raised investment capital

85%

78%

44%

12%15%

32%

25%

55%

UC Systemwide Network of Linkages to California R&D Companies

• Overall dataset of R&D companies • currently operating in California• links to UC identified through any IUCRP Economic

Research & Assessment activity

• Illustrative but not definitive :• not exhaustive• data elements are subject to change

• new research partnerships are initiated, old ones end.• IP relationships are initiated and terminated.• companies move, are acquired, go out of business.• new companies are founded.

1,454 California R&D Firms Put University of California Research To Work

UC Founders *UC Discovery Grant Sponsors MICRO SponsorsSponsors of other UC researchUC Licensees *California Institutes for Science and Innovation Partners

* Limited to publicly available information (Companies in business in California as of 8/2006)

Last update: Aug. 06 (v3) © 2007 University of California Industry-University Cooperative Research Program

Thank you.

Cherisa Yarkin, Ph.D.