The Bayh Dole Act needs to be amended to include Cooperative Economic Development Agreements (CEDAs) patterned after CRADAs

Congress should amend the Bayh-Dole Act to provide for newly proposed Cooperative Economic Development Agreements (CEDAs) patterned after (CRADAs). CEDAs would be patterned after the Stevenson-Wydler Act’s Cooperative Research and Development Agreements (CRADAs). Technology transfer enables private industry and academia to make practical use of advanced research, development, and technical expertise. Indeed, universities are a rich source of science and technology. Universities can support local government and business development as well as economic growth. Thus, it is essential for research universities to transfer their wisdom to the public for its use and benefit.

 Bayh Dole and the New Economy

Today, universities operate in an economic climate that requires both capital and knowledge. Universities take advantage of government technology initiatives such as the Bayh-Dole Act. They serve as a catalyst for the creation of a large number of new, incubated companies. Universities should have a seedbed effect on their local economies. This is one way to take advantage of the dynamics of the “New Economy”. It takes advantage of its ability to increase the quality of living at the local government level.

Certainly, the Bayh-Dole Act has revolutionized university-industry relations. This causes university licensing offices to use start-up companies to commercialize early stage inventions. Notably, hundreds of start-up companies have been formed on the basis of a licensed academic invention. This results in the commercialization of about ten percent of university ideas (Goldfarb, 2002). In short, in order to increase this trend, there needs to be greater communication and cooperation between more players. Organizations besides the universities and industries must take part in the strategic planning that is necessary to effectively commercialize university inventions. This will foster regional economic development. “[I]n difficult economic times, political stakeholders in the technology transfer process usually view success in economic impact terms, and often from short-term and parochial perspectives – how many jobs in my state next year?” (Carr, 1994).

Regional economic development

In reality, universities increasingly pressure their technology transfer specialists to become stewards of their regions’ economic development. However, most specialists have no experience in strategic economic development planning. Alternatively, they form collaborations that foster local government economic development. Furthermore, current regulations do not provide specialists with much guidance. They need guidance on how to facilitate economic development collaborations between their offices and other nonprofit organizations. Thus, this article proposes that Congress amend the Bayh-Dole Act to provide guidance. Universities need guidance on how universities can enter into newly proposed Cooperative Economic Development Agreements (CEDAs). Read more here…