Industry/University Cooperative Research Centers

Predictors of Cooperative Research Centers PostGraduation Success by

Lindsey McGowen North Carolina State University

Slide 1

Outline Industry/University Cooperative Research Centers

• Background & Purpose • Literature • Program • Methodology • Preliminary Findings

Slide 2

Background Industry/University Cooperative Research Centers

• Federally supported research centers are typically funded for a time-limited period ~ 10 years – Concerns about entitlement

• An explicit goal of some programs, cooperative research centers (CRCs), is to create “self-sustaining” centers • How effective are CRCs in achieving this goal?

Slide 3

Purpose of Research

Industry/University Cooperative Research Centers

• To assess the extent to which graduated Centers become self-sustaining • To determine what factors predict Center sustainability post graduation from NSF support • To assess the extent to which graduated Centers maintain fidelity to their program model Slide 4

What do we know about sustainability?

Industry/University Cooperative Research Centers

• Very little – General literature » Modest literature on program sustainability primarily from public health literature »Meta analysis (Scherier, 2005) »19 studies; 2 multivariate

– Centers » Tiny, inconclusive literature based on ERCs »Ailes, Roessner, & Coward (2000): data collected at graduation »Mudjamar (2005): ~ informal survey with 50% response rate Slide 5

General Model of Sustainability Industry/University Cooperative Research Centers

• Definition (Shediac-Rizkallah & Bone, 1998): –Sustainability is understood as continued program activities, continued benefits to stakeholders, & organizational capacity to continue to support the program once initial federal support is exhausted

• Sustainability vs. Institutionalization

Slide 6

General Model of Sustainability Industry/University Cooperative Research Centers

Four categories of factors that influence sustainability. Emphasis on alignment across categories. • Environmental Factors – Stakeholder involvement - IAB, Faculty, University Admin. (Tornatzky & Fleisher, 1990)

» Buy-in, network of support, tailoring

– Alignment » Values, needs, resources, structure, process

– Branding/Prestige

• Organizational Factors – – – –

Fit with organization Formal structures Resources ($, in-kind, facilities) Administrative policies and procedures – Technical expertise

• Program Factors – – – – – – –

Implementation quality Durability to adaptations Proven Effectiveness Benefits to clients Ownership among staff Funding Research area

• Individual Factors – Champion roles – leadership actions » Entrepreneurial orientation » Relationship management

Slide 7

Research Questions

Industry/University Cooperative Research Centers

• What is the status of graduated IndustryUniversity Cooperative Research Centers (I/UCRCs)? – Preliminary Results

• What factors (environmental, program, organizational, individual) predict postgraduation sustainability? – Preliminary Results

• How much fidelity to the I/UCRC model do graduated Centers maintain? – Data to be collected Slide 8

Why NSF’s I/UCRC Program? Industry/University Cooperative Research Centers

• GOAL – “NSF intends to seed partnered approaches to … research, not to sustain the Centers indefinitely. The Foundation intends for Centers gradually to become fully supported by university, industry, state, and/or other non-NSF sponsors. “ (NSF I/UCRC website)

• NSF-SPONSORED – Modest $ Support ($130K/YR/CENTER; $7 MILLION) – Receives 90% support from industry, state, other federal

• MODEL – – – –

University-based (faculty & students) research center Industrial consortium (membership: $30-50K/YR) Involves multiple sites: 50+; 600+ firms Ongoing evaluation Slide 9

Question by Source by Variable Table Research ?s Status?

Predictors?

DV

Data Source

Dropout – alive Dropout – dead

Archival Data: CD Reports

Graduated – alive Graduated – dead

Interviews: Center Director and/or Evaluator

Graduated - merged Sustainability: Activities Benefits Capacity

Fidelity?

IV

Industry/University Cooperative Research Centers

Continued Core Components (hi/med/lo): Industry support Consortia format Shared research & IP Strong industrial influence

program adaptability, program champion, fit, benefits to staff/clients, stakeholder support, funding

Archival Data: CD Reports PO Reports Interviews: Center Director and/or Evaluator Interviews: Center Director and/or Evaluator

Slide 10

What do these centers look like?

Industry/University Cooperative Research Centers

• Status: • Drop out – alive – Hydrogen Center: dropped out of IUCRC after 7 years because firms did not like consortia approach; continued for many years as a contract research organization with~ $2M/year budget (low fidelity)

• Drop out – dead – Bio Pharma Center: dropped out IUCRC after 4 years due to lack of industry support and terminated operations; sharing IP was a major obstacle

• Graduated – alive – Communications Center: recently celebrated its 25th anniversary, has 8 companies, ~$1M/year; continues to be a catalyst for research and education. – AgroChem Center: recently passed 17th anniversary; performs research and provides services for federal agencies; ~$2M/year (low fidelity)

• Graduated – dead – Robotics Center: graduated from IUCRC but terminated operations 1 year later; director left and industry went in a different direction

• Graduated – merged/ absorbed – Ceramics Center: graduated from IUCRC and then merged with another center and successfully competed for a new IUCRC award; foci of combined centers was sufficiently different to justify a new award; $4.6M in FY2006. Slide 11

The current I/UCRC Population and Participants • Participants:

Center Life Cycle 80

45

51 50 56 51 54 50 55 51 50 53

43 » graduated (completed 37 36 41 31 40 funding cycle) 17 » did not graduate but is no 20 10 longer in the program 2 3 5 7 0 » graduated and was absorbed by another -2 -3 -7 -20 Center -11-12-13-14 -17-17-17-21-22 » N = 69 -28-29 -40

(NSF I/UCRC website).

'0 6

'0 0

98

96

94

92

90

88

86

84

39

-41-43-44 -52 -54-61-63 -69

“Graduated” Centers 82

80

• “Over 80% of the Centers -60 established continue on -80 as successful centers without NSF funding”

4545 44 42

'0 4

60

Current Centers

'0 2

– Any NSF I/UCRC that is beyond the 10th year of funding and …

Industry/University Cooperative Research Centers

Year Slide 12

Post-Graduation Status: Preliminary Results

Industry/University Cooperative Research Centers

• There are 69 Centers that were started and are no longer funded by the I/UCRC Program – 41% did not reach 10 year graduation » 29% did not reach 5 year renewal » 12% reached the 5 year renewal, but not 10 yr graduation

– The status of the remaining 59% that did reach 10 year graduation will be determined based on future data collection

59% 29% 12%

Dropout 1-5yrs Dropout 6-9yrs 10+ yrs Slide 13

Preliminary Results: Cohort Effects

Industry/University Cooperative Research Centers

Number of Centers Leaving the Program

35 30

71%

25 20 15 10 20%

44%

40%

Early Adopters may be more likely to sustain the program post graduation. But why?

5 9%

16%

79-91

92-06

0

N = 44

N = 25

Year Center was Started

10+ yrs

Dropout, 6-9 yrs

Dropout, 1-5 yrs Slide 14

Predictors of graduation status: Preliminary Results

Industry/University Cooperative Research Centers

• DV: – NSF Funding Status » Funded < 5 years » Funded 6-9 years » Funded > 10 years

• IVs: – – –

Average annual NSF $ Industry membership $ in final year Number of funding source types in final year – Number of Industry members in final year

• Results of Multinomial Logistic Regression – # Industry Members: Significantly predicts graduation status (p < .001)

20 18 16 14 12 10 8 6 4 2 0 Mean # Industry Members in Final Year

10+ years

6-9 years

1-5 years

Slide 15

Summary & Conclusions Industry/University Cooperative Research Centers

• Achieving self-sustainability is an important and explicit I/UCRC goal – Facilitates long-term outcomes/benefits

• Level of sustainability is unclear, but… – Fewer Centers than expected graduate

• Inside the Black Box – Evidence of a cohort effect – Stakeholder investment out weighs the importance of funding in determining sustainability – Complete picture at nest year’s AEA…

Slide 16

Industry/University Cooperative Research Centers

Acknowledgements: This project is supported by a grant from the National Science Foundation Contact Lindsey McGowen: [email protected]

Slide 17

Predictors of Cooperative Research Centers Post ...

sustainability post graduation from NSF support ... Why NSF's I/UCRC Program? • GOAL. – “NSF intends to seed partnered approaches to … research, not to.

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