Curators OK foundation to turn research into Missouri business

MU professor of biochemistry Frank Schmidt thought the hard part was over after he invented the construction of a bacterial strain used to search for antibiotics.

It wasn’t. It took MU several years from Schmidt’s disclosure of his discovery to file a U.S. patent for the invention.

“It worked, but it was slow,” he said.

Friday, the UM Board of Curators granted UM system President Elson Floyd the authority to establish a research foundation that will allow MU to create Missouri-based businesses around new concepts or technologies. Officials hope the foundation will also speed up the patent filing process.

An invention goes through a process known as technology transfer, where it is tested for its viability in the market. If that invention is at a private institute, the inventor loses ownership.

If the invention is by a university faculty member,however, he or she must disclose the concept to the university, who has first rights of refusal.

At that point, if the university decides the invention is not beneficial to it, ownership of the concept is returned to the faculty member. Should the invention prove advantageous, the university has traditionally protected, marketed and licensed out the concept.

“(The licensing company) could be in Missouri, could be in California, or could be in Timbuktu,” said John Gardner, MU vice president of research and economic development.

MU sees the research foundation as a way to better their mission for research and economic development and strengthen the relationship between the university and surrounding community.

The foundation will be run by a board of directors, most likely consisting of nine members, Gardner said.

He said Floyd will act as the chair and one representative from each of the four UM system campuses, either the chancellor or a delegate from the faculty, will serve on the board. The remaining four spots are to be filled with members from outside the university who will be chosen based on experience and skill, but perhaps more importantly, with an interest in commercializing technology-based research.

“Directly involved in the management and vision of the foundation will be outside people that not only have an interest in the university and in Missouri, but bring with them their business experience and network into the foundation,” Gardner said. “We have many former faculty members who have started businesses both in and outside of Missouri, and they are very eligible candidates for board seats.”

In addition to potentially sponsoring university endeavors, the foundation wants to provide a way to identify and manage any conflicts of interest that could come from a combination of the goal of economic development and that of teaching, research and service.

Also, the foundation will provide an entity that is university-affiliated but non-profit, so as to take the place of the university in day-to-day operations in instances such as international business or research-sponsoring foundations.

While there is money-making potential for the research foundation, it is being set up to be a tax-exempt non-profit organization, which means any proceeds earned from the foundation would be redirected back to supporting both research and economic goals of MU.

“We’re great at the research, but we’ve never really been deliberate about commercializing it, and now we are,” Gardner said.