- For university licenses of technologies all across the board if we can assume a average royalty of 2%1.
- Of the revenue that come in to the university, only about 25% gets to be retained by technology transfer offices.
- On an annual basis the university needs to generate $20M in revenues coming in to the university (so that $5M comes back into technology transfer).
- To generate the $20M in revenues at a 2% royalty rate, $1B in annual sales of products is necessary. (if royalty income alone is considered)
- There are more than 200 TTOs, which report their licensing results to AUTM on an annual basis. Most are small offices, but still you are looking for >$80 billion dollar in sale of products for these offices to just break even, if average spend is $2 million in operating expenses. I am not saying it is impossible, but it is not an easy task.
- The total licensing income for TTOs in FY15 was $2.5 B as reported by AUTM. That is an equivalent to $125B in product sales stemming from university intellectual property. Not bad for early stage university technologies, huh?
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