Innovation in South Carolina. Are we at base camp yet?
December 22, 2014
By Alan Cooper
(Based on my radio interview with Mike Switzer, December 22, 2014 )
Productivity and innovation drive prosperity.
Five years ago, the Medical University of South Carolina (MUSC) embarked on a five-year strategic plan to increase the university’s innovation pipeline. The plan was initiated under then president, Dr. Ray Greenberg, and the MUSC Foundation for Research Development (FRD). The university put a laser focus on evaluating technology from a commercial perspective. What good is a discovery if it only lives in academic journals?
Recently, the International Electrical and Electronics Engineers (IEEE) association recognized MUSC as the number 4 university in the country for the strength of its patent pipeline, officially called the Patent Power 2014 Scorecard. The survey takes into account not only the size of an organization’s patent portfolio but also its quality, as reflected in characteristics such as growth, impact, originality, and general applicability.
This result caught industry experts by surprise because it is MUSC’s first appearance on the list. It may catch some skeptical South Carolinians by surprise, too. It puts MUSC in some pretty lofty company:
- MIT
- The University of California
- Harvard
- MUSC
Here are some of the impressive metrics coming out of MUSC. The FRD was founded in 1995 and since its inception has announced 1149 invention disclosures, 25% of which have been over the past two years. They have filed 646 applications for patents and been issued 80. Importantly, MUSC now has 43 startup companies that have attracted over $784 million in capital.
But the existence of patents without a clear path to commercialization is borderline useless. Two success stories out of the MUSC research pipeline. Immunologix was a company formed out of MUSC research labs, given a boost by SC Launch in terms of capital investment and business support. It was acquired in 2011 by a Virginia based company, Intrexon. MitoChem, another MUSC company that has come up with a new treatment for blindness, recently received $2M in additional outside funding.
It’s not just MUSC. The University of South Carolina announced over the summer that it has achieved record levels of research dollars. Clemson has amazing systems in place to commercialize its research. Think of the Selah Genomics story.
Why is this important?
In the 2005 report, A Strategic Plan for South Carolina authored by Michael Porter of Harvard University, a lack of patents and a first tier research university were glaring areas of weakness identified for the state. Wages in South Carolina were 80% of the national average. Patents per 10,000 workers in South Carolina were at 3.6 versus 7.7 for the rest of the United States. Venture capital funding was virtually non-existent at $3 per worker versus $155 per worker on the national average! Strategically, South Carolina had to pursue the economic objectives of productivity, value creation and innovation, but it was a big mountain to climb.
Another important ranking
The IEEE also ranks other sectors in terms of the patent pipeline. Can you guess which company ranked number 1 in terms of the Patent Power Scorecard for Aerospace and Defense? Hint. This company’s primary research and development function is located in Washington state (Puget Sound), but working in conjunction with its R&D department is a new and growing Research and Technology Center in Charleston, SC. This fast growing part of the Charleston team focuses on advanced manufacturing technology and composite fuselage technology. It brings an even stronger base of experts to the Charleston area.
This company also benefits from a company wide culture of innovation. Employees at all levels are encouraged to speak up and communicate ideas about how to make the company more efficient.
Answer. The Boeing Company.
So, South Carolina has the number 4 ranked university and the number 1 company in the country in terms of patent power. Innovation means prosperity. In the case of MUSC, innovation also comes with the added benefit of being at the forefront of solving today’s medical problems, saving lives.
South Carolina. We may not be at summit of the mountain, but can we at least admit that we are firmly established at Base Camp?
