Technology Transfer

The Bayh-Dole Act requires GAO to review periodically chapter 18 of title 35 of the U.S. Code, which promotes the use of federally funded inventions by small businesses and nonprofit groups. The act allows nonprofit groups, such as universities, to retain title to and market the inventions they created using federal research funds. The act also allows federal agencies to grant exclusive licenses for federally owned inventions to provide more incentive to businesses. This report provides information on (1) the administration of the Bayh-Dole Act by the eight largest federal agencies that fund research and development, (2) the administration of the Bayh-Dole Act by 10 of the largest U.S. research universities, and (3) the impact of the Bayh-Dole Act, largely on the basis of annual surveys of research universities conducted by the Association of University Technology Managers.

GAO noted that: (1) federal agencies' administration of the Bayh-Dole Act as it applies to research universities is decentralized; (2) while the Department of Commerce has issued implementing regulations and provides coordination under limited circumstances, the act actually is administered by the agencies providing the funds; (3) the agencies' activities consist largely of ensuring that the universities meet the reporting requirements and deadlines set out in the act and regulations; (4) according to Commerce officials, no agency has yet taken back the title to any inventions because they were not being commercialized; (5) GAO visited 10 major research universities and found that they had established formal programs and procedures to implement the act; (6) the universities had special units to handle the reporting and licensing of inventions, had established procedures to ensure adherence to the act's reporting requirements, had set up computerized databases to monitor activities involving inventions, and were actively pursuing licensing for their inventions; (7) they also appeared to be pursuing licensing opportunities wherever possible and sharing royalties with the inventors; (8) officials within the agencies and universities GAO visited said the act was having a positive impact and was working as Congress intended; (9) they believed that the universities and researchers were receiving greater benefits from their inventions and were transferring technology better than they did when it retained title to inventions; (10) although there is no database or study showing the impact specifically attributable to the act, a fiscal year 1996 report from a survey conducted by the Association of University Technology Managers indicates that inventions from all funding sources, including federal agencies, are increasing in their importance to universities; and (11) in fiscal year 1996, the number of inventions disclosed by universities increased by 9.3 percent for the year, and licensing income--which totalled $365.2 million--increased by 22.1 percent.