Commercializing university research. Lessons from the experience of the Wisconsin Alumni Research Foundation

Universities that are now seeking ways to capture the financial rewards of advances made in biotechnology and other fields on their campuses have been encouraged by the apparent success of previous efforts to benefit from the commercial application of research findings by obtaining patents and granting licenses. Notable among these efforts is the Wisconsin Alumni Research Foundation (WARF). A close examination of the experience of this foundation reveals that, with good fortune and good management, a patenting and licensing organization can enjoy financial success. It also indicates, however, that the success experienced by WARF would be difficult to achieve today and that such efforts may yield lower financial returns than university administrators expect. Universities should be aware that such ventures entail financial risks and pose potential threats to traditional university values.