Increasingly, corporate research funding is playing a crucial role in the health of research institutions. While universities and institutions have historically spent a lot of time and effort pursuing federal research grants, billions of dollars in industry research investment are suddenly in high demand. According to the Association of Public and Land-grant Universities (APLU), companies are increasingly interested in partnerships with university researchers, and in leveraging their support. However, many universities are not well-equipped to identify those opportunities systematically. Fortunately, we are here to help. Read on!
The Corporate Research Funding Landscape
Industries tend to invest heavily into scientific and research development, which can include extensive partnership with universities. For example, clinical trials and drug development studies are funded by pharmaceutical companies. The computer science and engineering research agenda is supported by technology companies. Agricultural companies invest in crop science research.
Corporate research funding is not streamlined like federal funding. It flows through various channels, such as sponsored research agreements, industry-academia collaborative partnerships, contract research services (CRS), and licensing arrangements.
Why Companies Fund University Research
Companies typically back university research for various reasons. For example, universities have specialized information and equipment that companies cannot create themselves. Also, research partnerships with universities allow for early investigations before companies commercialize.
Through university partnerships, companies recruit specialized talents. Exchanging sponsorship for research provide companies with a direct line of access to graduates and postdoctoral researchers. University research partnerships help give credibility and validate private sector’s research directions.
The Discovery Challenge
The most significant obstacle for corporate researchers in obtaining research funding is discovering relevant opportunities. Unlike federal research agencies that make avenues of funding public, companies often do not make public research funding.
Opportunities for corporate research funding arise from formalized research program announcements that are usually made on company websites, through relationships with corporate research directors, or through universities contacting companies whose interests are aligned with institutional research strengths.
The fragmented landscape leads to researchers not knowing companies that are aligned in research interests with their expertise.
Strategic Matching in Corporate Funding
Corporate research funding is successful when capabilities of the researcher match the requirements of the corporate. Unlike federal agencies, which have broad scientific mandates, companies fund research to solve particular business problems.
FundFit helps with corporate research funding discovery by identifying relevant industry research opportunities and linking them to suitable researchers based on expertise, research interests and past funding success. More importantly, FundFit helps identify those right researchers and collaborators in line with each company’s objective, as corporate research funding often warrants multidisciplinary teams and novel approaches to complex challenges.
Building Corporate Research Relationships
Before any actual contract is signed, a relationship must be developed. Companies want to know researchers and understand their capabilities before giving research funding.
Take part in conferences where corporate research directors speak. Participate in university-industry networking events. Review corporate research reports to understand their priorities. These activities help yield research funding opportunities for allied commercial corporations.
Collaborative Research Teams
Corporate funding for research has increasingly been aimed at collaborative research that deals with complex challenges that require a diversity of expertise. A pharmaceutical company may look for teams of clinical researchers, biostatisticians and health economists. A tech firm might prefer interdisciplinary teams comprising computer scientists, ethicists, and social scientists.
AI platforms help in analyzing institutional research capability and recommending possible team configurations according to corporate goals to help submit a stronger application for a research funding scheme.
Intellectual Property Considerations
Corporate research funding can bring more complications regarding ownership than federal grants. Companies frequently seek ownership or exclusive licenses to inventions resulting from funded research.
Many universities have guidelines for corporate research partnerships. These usually protect academic freedom and the right to publish work while providing companies with reasonable intellectual property protection. When negotiating corporate research agreements, cooperate closely with your technology transfer office.
Publication Rights
The culture of academia encourages the open publication of research findings. Corporate culture often requires confidentiality to protect competitive advantages. Most successful corporate research partnerships allow academic researchers to publish, usually with reasonable review periods, after which companies can apply for patent applications before publication.
Make sure to negotiate these publication terms in the research agreements explicitly. Proceed with caution when presented with conditions on research funding contracts.
Budget Structures
Corporate research funding budgets are different from federal ones. Federal agencies make use of standardized budget categories and indirect cost rates. Funding for corporate research entails more negotiating on budget structure and indirect costs.
Before entering into negotiations, ensure you understand your institution’s policies on the indirect costs of corporate research funding. Some universities impose minimum indirect cost rates for corporate research. Some grants flexibility depending on the stake of the strategic partnership.
Timeline Expectations
Corporate research funding is usually faster than federal grants. We make decisions based on business needs and competitive pressures. When firms recognize the need for research, they often want to act fast.
University partners must respond to this urgency. When company research directors show interest, respond quickly. Provide requested information quickly. Be prepared to negotiate and finalize agreements rapidly.
State and Regional Programs
Multiple states and areas offer programs to promote corporate research collaboration between universities and local firms. Research collaboration between industries and universities is encouraged through matching funds and tax breaks.
State research and industry partnership programs offer attractive funding opportunities for applied research relevant to regional economic priorities. Connecting with state economic development agencies helps to identify such corporate research funding opportunities.
Building Infrastructure
Institutions serious about corporate research funding must build appropriate infrastructure. This encompasses industry liaison officers who understand corporate cultures, strategies for finding relevant corporate research opportunities; and mechanisms for matching researchers with relevant companies.
Without effective corporate research funding discovery systems in place, many institutions miss opportunities simply because they are not aware that companies are looking for external research partners. FundFit enables institutions to pinpoint research funding opportunities that are available from industry and helps researchers find the suitable funding opportunities.
The Strategic Advantage
Institutions that build corporate research funding capabilities gain an advantage beyond funding diversification.
Students get the chance to take internships and get laid off because of the industry networks they build. The organization is developing research translation capabilities to strengthen technology transfer.
Corporate research partnerships can produce continued funder relationships as companies become familiar with institutional capabilities. Research grants that come through such partnerships are more stable than competitive grants, which have to be renewed through new competitions.
Discover how FundFit can help you identify and win corporate research funding →
