proposal preparation, reporting, and other "strings" of federal and industrial research support. The amount of direct license income (excepting any income from investments derived from such royalty revenues) has not been large at U.S. universities. During 1981-82, less than ten universities received more than $1 million in royalty revenues; the largest amount received was $2.5 million. Although greatly increased emphasis on technology licensing and universityindustry interactions may cause royalty revenues to grow substantially in future years, technology licensing programs tend to have a greater influence on universities through establishment of industrial linkages than in direct royalty revenues. 5. NATIONAL SCIENCE BOARD VIEW OF UNIVERSITY-INDUSTRY In general, the ease of university and industry interactions in the United States is looked at with envy by other countries, often singled out as a model for their own future growth. The interaction has stemmed more from the initiatives by the universities and industries than from the government. But the sustained, indirect involvement of government through its support of basic research at universities has enabled them to train Increased students and foster innovation by industry. Questions are raised about whether industry has sufficient resources available to increase allotments to university research; whether academic research can really benefit industry; whether academic freedom and openness of scientific communications can be preserved in the face of the constraints and temptations of commercial enterprises. But the new arrangements highlighted here reflect an optimistic mood that is grounded in an awareness that the problems and opportunities in technologically based industrial production are substantially different from those in the past. The NSB report suggests three factors that characterize the present situation. The first factor is that product and process improvement in innovation in some industries has evolved to levels of complexity that demand understanding of fundamental physical and biological phenomena, thereby requiring much higher levels of training in and use of basic science in engineering than the "cut-and-dry" inventor of yore. The second factor considers that incremental advances in narrow technical areas, which may have been characteristic of much industrial development in the past, are giving way to use of a broad range of science and engineering disciplines on complex, often ill-defined, problems or exploitations of new analytical capabilities. Hence, it is becoming increasingly difficult for any single industrial laboratory to fully encompass the required expertise. The NSB report suggests that a partial remedy may be for industry to seek out "the pertinent skills" in the nation's universities. The third factor notes that the rapid expansion of the nation's research and development system following World War II "has diffused research capabilities over a much broader range of academic and industrial institutions than before." This suggests the future unlikeliness that any single company can hold and maintain a leading edge on technical advance in a given area, such as DuPont's experience in polymer fibers. 6. RECENT DEVELOPMENTS IN UNIVERSITY-INDUSTRY LINKAGES 6.1 AN EXAMPLE OF USE OF BIOLOGICAL MATERIALS IN THERAPY Many diseases or debilitating conditions of mankind, (and animals) have been treated in the past with materials derived from mammals. An example is the treatment of diabetes with insulin. Insulin Diabetes occurs when the body's pancreas does not make enough of the hormone insulin to meet the body's needs. is necessary for the body's proper utilization of food, especially sugar. Before genetic engineering all insulin was made from the pancreatic tissue of slaughtered cows and pigs. Many diabetics experience allergy or resistance to insulin from bovine and porcine sources. Using a bacteria genetically engineered by Genentech, Eli Lilly is now producing human insulin for the world's diabetics. In genetic "engineering", the appropriate gene for the material of interest must be obtained and/or its sequence of DNA identified. The gene (a DNA sequence either "snipped" from the longer DNA strand of a cell or constructed by stringing nucleic acids in the correct sequence) is then inserted into a suitable host organism, typically a bacteria. If all goes according to plan, the genetically engineered host organism "expresses" the desired protein product, such as insulin. It should be noted other products are also expressed and purification of the desired product is a difficult task. 6.2 AN EXAMPLE OF USE OF BIOLOGICAL MATERIALS IN THERAPY HEMOPHILIA The deficiency of a substance called Factor VIII in the blood results from an inherited bleeding disorder called hemophilia. At present, Factor VIII is obtained from fractionating large pools of human blood plasma. The important short-coming with this supply is increased risk of transmission of hepatitis and, more recently, AIDS. Other drawbacks are high cost, limited supply, and low concentration. Supplying Factor VIII through genetic engineering, the gene having been identified, is an objective of a number of companies (at least 17). Early skirmishes on patents are beginning to occur. For example, Revlon and Scripps Clinic have charged Genentech and Chiron with infringing patents for purifying Factor VIII:C. 6.3 AN EXAMPLE OF USE OF BIOLOGICAL MATERIAL IN THERAPY Many disease states advance as a result of breakdown of the body's immune system. Hybridoma technology has the promise of making pure ("monoclonal") antibodies against the disease. Hybridoma technology involves joining, (fusing), to an immortal cancer cell line, cells containing disease antigens. The fusion product, termed a hybridoma, "expresses" specific monoclonal antibodies against that disease antigen. Diseased cells most promising for fusion are typically spleen cells obtained by biopsy. There have been a few successful treatments of patients with monoclonal antibodies, but much research and experimentation remains to be done. 6.4 AN EXAMPLE OF USE OF BIOLOGICAL MATERIAL IN THERAPY: GENE REPLACEMENT Various diseases or abnormalities are genetic in origin. There is ongoing research and experimentation with regard to replacement of defective genes. Some early experiments have involved extracting a patient's bone marrow, inoculating the bone marrow with desired genes, and replacing the bone marrow in the patient. 7. PATIENT MATERIALS, THROUGH RESEARCH, ARE SOURCES OF We have touched on some specific relationships between universities, their scientists and students, and companies in |