In the Association of University Technology Managers annual survey of patent licensing activity, analysts once again attempted to quantify the economic impact of member institution innovation. In this year's edition, however, several new questions provided researchers with novel insights.
Among 58 universities and research organizations surveyed, a collective 2,821 patent licenses paid $662 million in royalties based on $37 billion in product sales. This amounted to an average royalty rate of 1.8 percent.
"Total income for all U.S. institutions from running royalties was $1.5 billion, so if it were assumed that all licenses generating running royalties resulted in the same 1.8 percent average royalty rates, total product sales by all licensees of U.S. institutions would have been approximately $80 billion," the report stated.
Alternatively, if economic impacts were based on average license revenue per product sale, the more than 9,100 collective licenses held by AUTM institutions would have generated total product sales of approximately $120 billion.