Cooperative university-industry research and development efforts reached unprecedented levels in the 1990s and have continued to the present. Almost every state and federal agency funds some form of cooperative technology program. Several billion dollars are spent by states and the federal government each year to sponsor cooperative “public-private” technology development programs, including those involving universities, with much of this public support “matched” by private sector investment. Direct industry sponsorship of research at universities likewise has reached unprecedented levels.  This strongly supports the perception that benefits accrue to both collaborators and that alliances are likely formed because it is perceived that a collaboration will result in more value to the participants than a separate investment of resources. The benefits take many different forms, a few of which are:

• Basic Research: Basic research is a major mission of universities, while applied research and development is more common in industrial laboratories (the exception may be industry-initiated clinical trials that are commonly placed at academic medical centers). Research alliances with universities supplement industries' basic research needs when corporate R&D budgets are reduced by other competitive pressures. Furthermore, collaboration with universities is a means of monitoring new developments in science and technology and the opportunity to work on problems with a practical application.
• Increased Awareness: Collaboration with industry enhances the understanding of the challenges facing industry by exposing university faculty to industrial concerns and industrial approaches to research. Conversely, collaboration with universities helps industrial scientists stay current with the latest developments in broad areas of basic science that are of strategic interest to the company.
• Graduate Education: Industry funded research and internships enhance graduate education by providing faculty and students with a better understanding of industrial problems, thus enriching the training of engineers and scientists for an industrial environment. These relationships also provide to the industrial partner a pool of candidates for job recruitment. 
• Business Opportunities: In biotechnology and other science-based industries, universities are recognized as a fertile source of innovation and new business opportunities. The number of patents awarded to universities has been growing at an average annual rate of over 2% (see FY2005 AUTM Licensing Survey, http://www.autm.net/index.cfm). In addition, economic growth resulting from university spinoff companies and new product introductions based on university discoveries is substantial and increasing.

EXCERPT FROM COUNCIL ON GOVERNMENT RELATIONS “UNIVERSITY INDUSTRY RESEARCH RELATIONSHIPS” BROCHURE
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