California University Research Program Proves Effective

The UC Discovery Grant program, a cooperative research program of the state of California, the University of California (UC) System, and industry has grown from a $3 million initial investment in 1996 to a source of more than $209 million in grants through 2002.

Contact: Paul Kalomiris
Economic and Technology Policy Studies – National Governors Association Center for Best Practices

The program supports research at state universities and federal laboratories in California in the fields of: biotechnology; communications, networking, and operating systems; digital media; electronics manufacturing and new materials; and information technology for life sciences.

According to an analysis of the program, for every state dollar invested, there has been a $1.57 match from industry and a 68 cent investment by the university system. Industry investments also qualify for the state’s 24 percent tax credit on investments in university research, and are further leveraged by significant federal investment in lab facilities and equipment statewide. The program has awarded 1,020 grants from 1996 to 2002 totaling $209 million.

Beyond the financial impact, the report showed that the program has:

* Expanded California’s commercial research and development capacity.

* Encouraged development of major research centers.

* Given more than 2,000 students and postdoctoral scholars an opportunity to work in R&D-relevant research projects.

* Created value through intellectual property.

The state university system contributes $3 million annually to the program. California’s annual investment had been $17 million, but that declined this year to less than $2 million due to the budget crisis.
Related Links:

* UC Discovery Grant program http://uc-industry.berkeley.edu/welcome.asp

* Industry-University Cooperative Research Program Performance Report, 1996-2002
http://uc-industry.berkeley.edu/pdf/performance_report.pdf

http://www.nga.org/center/frontAndCenter/1,1188,C_FRONT_CENTER%5ED_5098,00.html