University of Utah, MIT lead nation in new companies founded

SALT LAKE CITY — Much of the research being done at the University of Utah is spun out into newfound companies, resulting in ongoing revenue for the school. For the past two years, the U. has rivaled the Massachusetts Institute of Technology for the number of start-ups it produces. This year, however, the Utes moved into a tie with the research giant, surpassing major players along the way.

Twenty new companies were formed during the 2008 fiscal year, ranking the U. first among other research institutions nationwide.

On average, U.S. universities generate patents to form three new companies each year, but Brian Cummings, director of the U.'s Technology Commercialization Office, said start-ups are more successful at the U. because of local and university support offered to the new companies.

"The state has established an extremely friendly climate for entrepreneurs," he said. "The results are reflected by these national rankings."

The rankings come from the Association of University Technology Managers, which monitors more than 150 public and private research institutions throughout the country. The University of Florida and the California Institute of Technology, which both had 14 start-up companies in the 2008 fiscal year, followed the U. and MIT.

In addition to the 20 companies formed at the U., 78 licenses were executed and 119 new patents applied for, while 33 new patents were issued, with more than $26 million generated in licensing income.

The U.'s accomplishment is significant, due to the fact that MIT received almost five times more research funding, $1.3 billion, compared with the U.'s approximately $273 million. On average, universities ranked by the annual AUTM survey receive around $288 million in research funding each year.

The U.'s Technology Commercialization Office evaluates almost 200 new inventions every year, some of which are nurtured and become new companies, while others are further researched or postponed. These new companies represent advances in energy, medical devices, personalized medicine, graphic design, software, nanotechnology, disease diagnostics and more.