Inside the Black Box: Assessing TTO Performance

Abstract

This article uses an original three-phase approach for empirical assessment and comparative evaluation of the efficiency of university technology transfer. It is based on analysis of inputs and outputs of a disclosure phase followed by a value-add phase and a final license phase, using a multidimensional framework. The objective is to find university Technology Transfer Office (TTO) efficiency and effectiveness patterns for each phase as well as overall TT processes. A network Data Envelopment Analysis (DEA) model was used to analyze and describe the complicated TT operational processes using Association of University Technology Managers data collected from 90 US university TTOs for the period 2007-2013. It was concluded that the sampled TTOs were most inefficient in their value-add (2nd) phase and that the average overall efficiency as well as the efficiency of disclosure (1st) and license (3rd) phases decreased during the last five years of data analyzed. In addition, in line with other studies, analysis supports the contention that the presence of medical school does not increase TT efficiency or effectiveness. The present research’s contributions focus on three areas: (1) Analysing and modelling TTO valorization and commercialization process with a UML activity diagram to provide a clear picture of TT procedures and processes; (2) Proposing a three-phase DEA framework showing input/output indicators closely related to each phase of processes rather than a black box or separated activities; (3) Offering a strategy to conduct empirical studies on TTO’s operational efficiency thereby helping to better understand future research operational problems.