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The Honolulu Advertiser
Posted on: Thursday, December 23, 2004

Big bucks, little bang for UH research

 •  Chart: Technology transfer

By Sean Hao
Advertiser Staff Writer

The University of Hawai'i does well attracting research money, but continues to rank relatively low when it comes to profiting from faculty ideas, according to a survey released this month.

UH received $190.4 million in sponsored research money in fiscal 2003, ranking 72nd among 226 universities surveyed by the Association of University Technology Managers. However, the university generated just $534,364 in income from licensed discoveries, which ranked 134th on the list.

In comparison, Florida State University ranked 73rd with $176.2 million in sponsored research expenses, but ranked 19th with $24 million in license income. Sponsored research is money provided to an institute to conduct a specific research project.

The ability of UH to commercialize such research affects the role it plays in growing and diversifying the state's economy and its ability to attract distinguished faculty and students. When UH discoveries aren't converted into real-world solutions the state misses out on the opportunity to solve pressing social problems while creating jobs and income for residents.

While UH has made progress in growing licensing income — such income rose 51 percent to about $800,000 in fiscal 2004 ended June 30 — officials admit more needs to be done.

"I would acknowledge it's not where we would like it to be," said Dick Cox, director of the UH Office of Technology Transfer. "The activity is occurring and the revenues will follow, but it's difficult to say when or what they'll be."

UH needs to earn between $1.6 million and $2 million from its inventions to offset the patent and budget costs associated with technology transfer.

Cox pointed out that it has only been three years since UH reorganized its technology transfer office with the aim of increasing research commercialization. In addition, the university recently restructured licensing agreements so professors receive more early revenue from their discoveries. Plans also are under way to earmark royalty money for the departments of professors that commercialize research.

Discoveries UH hopes will drive up royalty income in the future include:

• Technology that creates charcoal from green waste such as grass clippings.

• Antenna technology allowing for secure communications with more compact and energy-efficient equipment.

• A system to help dairy farmers manage wastewater purity and minimize damage to the environment.

Among these, technology to convert grass, wood and macadamia nut shells into charcoal for use in cooking, filters or as a clean alternative to coal could begin generating commercial sales within three months, said inventor and UH professor Michael Antal Jr.

The process uses heat and pressure to turn dehydrated corn cobs, rice husks and other green waste into charcoal in about 30 minutes, compared with other processes that can take as long as 10 days. However, attracting attention and money hasn't been easy, Antal said.

"The reality of the situation is the community here in Hawai'i doesn't care about this sort of thing," said Antal, adding that getting others to pay attention to UH inventions is difficult because of the state's isolation.

"We live on the most isolated land mass in the universe," Antal said. "There is no significant population on our planet that has a greater distance to go before you get to another significant population. We're entirely isolated."

Ted Liu, director for the Department of Business, Economic Development and Tourism, said geographic isolation and indifference on the part of segments of the local community can be overcome.

"People who are looking for technology will travel great distances," he said.

The keys to overcoming such hurdles are tax incentives, cash grants and UH/industry partnering meetings, Liu said. Next year DBEDT may again push for a tax credit for companies that partner with UH researchers, he said. A similar effort last year failed to pass the Legislature.

Additionally, Gov. Linda Lingle has set aide $1.5 million that will be matched with $3 million in federal research grants that DBEDT plans to help administer, Liu said. That $4 million a year would fund UH research that could address local economic development problems in areas such as workforce development.

"Research is important. That's good for UH," Liu said. "But how is that being done to achieve other goals?

"UH has the potential to be a much greater driver for our economy."

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.