Frequently Asked Questions: Business Plan

How will the funds be allocated? Or be split between the two institutions?

State funds will be combined with University and Mayo Clinic matching funds during the first phase of this partnership. Funds for research will then be distributed to either the University or Mayo Clinic depending on the home institution of the Principal Investigator (PI) for each research project. Funds will be allocated in two installments. The first allocation will occur shortly after February 1, 2004, and the second and final allocation will occur shortly after July 1, 2004. Each institution will establish a unique account into which grant award amounts will be deposited and apply existing administrative and financial management standards to track and report the award's financial activity. While it is ultimately dependent on the kind of Phase Two funding the partnership receives, we expect the flow of research grants to be similar.

Who will own the rights to the research? Which institution controls the intellectual property?

Oversight of appropriate intellectual property and patent decisions will be made in accordance with University and Mayo Clinic existing institutional rules, policies, and laws and negotiated between both institutions. The decision will be largely driven by who is designated as the principle investigator on each research project. This area is a significant part of the partnership and the details have been carefully defined in the business plan. It is in the best interest of both institutions and the State that scientific findings that lead to patents, royalty streams, and jobs be appropriately attributed and positioned to best enhance Minnesota's economy and its prominence as a leader in biotechnology.

Why shouldn't the benefits of this research accrue to the state?

The state benefits directly from the economic development opportunities provided by the partnership and from the health benefits that are the result of this powerful research. In the near term, it is expected that the research will be leveraged into tens of millions in federal research dollars. Based on university data, for every million dollars we receive in research funding, at least 38 jobs are created to support that research. Any related income to the institutions will be recycled into the partnership to continue to support scientific progress.

When will we see the first intellectual property/patents from this partnership? When will we see the first business start-ups?

It's hard to be precise, but based on past experience, we would anticipate that the within five years we'll see the benefits through patents and in 10 years, the first benefits that result in business start-ups.

How will you keep the new businesses in Minnesota?

A major goal for the partnership is to contribute to the economic development of the biosciences industry in Minnesota. Both the University and Mayo are committed to licensing all new technology to qualified Minnesota-based, new or existing companies whenever feasible and consistent with applicable state and federal regulations. Additional initiatives by the state, such as using State Board of Investment funds for seed capital, could contribute to the successful economic development of the biotechnology industry and take greatest advantage of the technology developed by the partnership.

What are indirect costs? Will state money be used for that purpose?

Indirect costs of research are a routine part of research and include costs related to buildings, equipment, operations, and administration. In Phase One, the partnership has limited indirect costs at approximately 30 percent of the total awarded in research grants and the two institutions will cover the difference as 30 percent is below what both institutions typically are allowed for federal research grants. Indirect costs will be 48 percent for projects funded in Phase Two of this partnership, in line with other federally funded research.