Karl F. KosterKarl F. Koster

MIT Office of Corporate RelationsMIT Office of Corporate Relations

Managing Research DynamicsManaging Research Dynamics

London School of EconomicsLondon School of Economics

November 2005November 2005

Karl F. KosterKarl F. KosterMIT Office of Corporate RelationsMIT Office of Corporate Relations

MIT’s Corporate RelationshipsMIT’s Corporate Relationships

RelationshipRelationship Commitment (ROI)Commitment (ROI)

An

nu

alA

nn

ual

In

vest

men

tIn

vest

men

t

$M$M

$100sK$100sK

<$100K<$100K

•Mid level“portfolio” investors”•Major initiatives & consortium relationships

•Focused research projects•Consortia & center membership

•ILP membership•Collegia•Executive & technical education•Enterprise Forum

Partnership Companies

Karl F. KosterKarl F. KosterMIT Office of Corporate RelationsMIT Office of Corporate Relations

CHARGE TO THE COMMITTEECHARGE TO THE COMMITTEE

To review eight industrial partnerships:

AmgenAmgen MerckMerck

DuPontDuPont Merrill LynchMerrill Lynch

FordFord MicrosoftMicrosoft

Hewlett-PackardHewlett-Packard NTTNTT

MIT Committee on Industrial PartnershipsMIT Committee on Industrial Partnerships

Karl F. KosterKarl F. KosterMIT Office of Corporate RelationsMIT Office of Corporate Relations

CHARGE TO THE COMMITTEECHARGE TO THE COMMITTEE

To identify how partnering can be more effectively implemented so its benefits are spread and any problems are minimized

To explore the extent to which the initiatives have made progress toward MIT goals and what other results have been obtained, including unintended or negative ones.

MIT Committee on Industrial PartnershipsMIT Committee on Industrial Partnerships

Karl F. KosterKarl F. KosterMIT Office of Corporate RelationsMIT Office of Corporate Relations

NOT ADDRESSEDNOT ADDRESSED

The review was not to include all large corporate MIT alliances

The goals of the partners were not intended to be a focus of this committee

The charge also did not include MIT’s experience with its non-industrial partnerships, such as the Singapore-MIT Alliance (SMA) and the Cambridge-MIT Institute (CMI)

MIT Committee on Industrial PartnershipsMIT Committee on Industrial Partnerships

Karl F. KosterKarl F. KosterMIT Office of Corporate RelationsMIT Office of Corporate Relations

FINDINGSFINDINGS

Benefits have covered many sectors at MIT, but largely focused on areas of greatest technological advancement

MIT Committee on Industrial PartnershipsMIT Committee on Industrial Partnerships

Karl F. KosterKarl F. KosterMIT Office of Corporate RelationsMIT Office of Corporate Relations

BENEFITSBENEFITS

Increase of corporate financial support, broadening the base of funding for MIT research

Enrichment of MIT’s research and educational agenda by increasing the involvement of faculty and students with industry and access to data and other resources from partner firms

MIT Committee on Industrial PartnershipsMIT Committee on Industrial Partnerships

Karl F. KosterKarl F. KosterMIT Office of Corporate RelationsMIT Office of Corporate Relations

BENEFITSBENEFITS

Support for new research initiatives Renewal or creation of infrastructure to

support teaching, curriculum development, distance education and research; gifts, endowments, fellowships, and other support

Availability of student internships and other opportunities

MIT Committee on Industrial PartnershipsMIT Committee on Industrial Partnerships

Karl F. KosterKarl F. KosterMIT Office of Corporate RelationsMIT Office of Corporate Relations

COSTS & RISKSCOSTS & RISKS

Existing research relationships might be disrupted by the new partnership if they are not reflected in the new larger agreements

Multi-sponsored programs have generally been avoided by the partnerships

Few negative effects of the partnerships

MIT Committee on Industrial PartnershipsMIT Committee on Industrial Partnerships

Karl F. KosterKarl F. KosterMIT Office of Corporate RelationsMIT Office of Corporate Relations

BEST PRACTICEBEST PRACTICE

Adherence to standard MIT policies Transparent governance structure that

encourages faculty proposals Match of interests of the sponsoring

company and of faculty Realistic match of expectations with

deliverables

MIT Committee on Industrial PartnershipsMIT Committee on Industrial Partnerships

Karl F. KosterKarl F. KosterMIT Office of Corporate RelationsMIT Office of Corporate Relations

BEST PRACTICEBEST PRACTICE

Dedicated company staff as well as significant participation by senior management

Committed MIT faculty and staff complemented by ILP membership

Fellowship support for graduate students and links to post doc, graduate and undergraduate students for internships and employment

MIT Committee on Industrial PartnershipsMIT Committee on Industrial Partnerships

Karl F. KosterKarl F. KosterMIT Office of Corporate RelationsMIT Office of Corporate Relations

RECOMMENDATIONSRECOMMENDATIONS

Endeavor to maintain a set of active partnerships

Choose partners strategically Ensure consistency with MIT’s mission in

research and education and existing policies

MIT Committee on Industrial PartnershipsMIT Committee on Industrial Partnerships

Karl F. KosterKarl F. KosterMIT Office of Corporate RelationsMIT Office of Corporate Relations

RECOMMENDATIONSRECOMMENDATIONS

Maintain transparency Have the research agenda driven by MIT

faculty Follow the best practice elements

identified Conduct a review of the academic

institutional partnerships

MIT Committee on Industrial PartnershipsMIT Committee on Industrial Partnerships