Kansas State University Institute for Commercialization (KSU-IC)
The Kansas State University Institute for Commercialization is dedicated to the start-up and expansion of technology-based, high-growth enterprises and enabling the commercialization of university and under-utilized corporate intellectual property. Our organization helps entrepreneurs commercialize intellectual property emanating from basic research at Kansas State University by providing:
- Opportunity assessment;
- Strategic partnership design;
- Technology acquisition, management and licensing;
- Business development; and
- Technology transfer support activities.
Read on for more about our capabilities, history, and achievements. Contact a member of our team for details, or visit our Industry Collaboration portal to find more information about partnering with K-State.
KSU-IC specializes in the following.
- Intellectual property evaluation and risk assessment
- Market assessment
- Readiness to market
Designing strategic partnerships
- Bridge cultural differences between corporate, university and government entities
- Identify and facilitate relationships with corporate and financial partners
- Partner with small and large companies and individuals, locally and globally
Facilitating technology transfer
- Acquire intellectual property
- Joint development of strategic intellectual property
- Manage, by contract, corporate and university portfolios
- Portfolio marketing
- Perform technology transfer support activities
Building successful enterprises
- Business start-up
- Business services
- Concept design and development
- Marketing assistance
- Recruitment of management team
- Facility identification and management
- Start-up capital assistance
History: The Early Years
The Kansas State University Institute for Commercialization, or KSU-IC, was originally founded in 1994 under the name of Mid-America Commercialization Corporation, or MACC, a not-for-profit corporation to facilitate the commercialization of technologies for regional economic and social benefits. MACC was formed as a true private-public sector partnership between two levels: academia and the business community. More specifically, the state of Kansas via the Kansas Technology Enterprise Corporation or KTEC, Kansas State University, the city of Manhattan and the Manhattan Area Chamber of Commerce. KTEC and others recognized that a concerted effort between the private and public sectors was needed to create an environment to enable Kansas to compete in today's technologically driven and rapidly changing world.
The initial corporate organization encompassed a structure of two affiliated for-profit companies around a core 501(c)3 not-for-profit company. In MACC’s case, the affiliates were: Mid-America Technology Management Inc., or MTM, a management services company and wholly owned subsidiary of MACC, now KSU-IC; and Manhattan Holdings LLC, or MHL, a seed investment fund organized as a Kansas limited liability company and managed by MTM. MTM was created to deliver the full range of both not-for-profit and for-profit management services needed by both MACC and its client companies.
In 1995, through an agreement with the Kansas State University Research Foundation, or KSURF, MACC began to serve as the licensing agent for technologies derived from research at Kansas State University, where MACC markets and negotiates the license agreements for K-State technologies held by KSURF on behalf of the university. MACC’s mission and infrastructure also introduced the option of licensing K-State technologies to new local companies founded specifically to commercialize these technologies.
MACC established its first technology spin-out company from K-State in 1995. Nanoscale Materials was created to commercially develop and market nanotechnologies. By 2008, MACC had established a total of 16 start-up companies since its original formation, with specialties ranging from calcium-enriched beverage products to biodegradable planting pots.
This same year, MACC assumed responsibility for the operations of a previously existing not-for-profit business incubator, the Kansas Entrepreneurial Center, or KEC. Upon amalgamation with MACC, KEC was refocused on delivering incubation facilities and administrative support principally for new technology-based, start-up companies with high growth potential. KEC also traditionally housed other key elements of the local supportive infrastructure, including KSURF and MACC itself. In late 1996 the city of Manhattan purchased an existing building specifically for use by KEC as a technology business incubator. In 2007 the city invested in the current KSUIC location, also referred to as the Manhattan/K-State Innovation Center.
In late 1998, with additional support from KTEC and K-State, MACC initiated a Technology Acquisition, Development and Commercialization — TADAC — program that now amounts to more than 1,000 patents. The TADAC program was developed to test the hypothesis that technology donations can be used to strengthen national competitiveness by unlocking dormant corporate technologies and leveraging them with the host of resources present in and available to nonprofit and public sector organizations. U.S. corporations hold more than 20 times the number of patents collectively held by all the universities, research institutions and federal laboratories in America, but commercially use only about 6 percent of the technologies held within their patent portfolios. In other words, dormant corporate technologies represent an immense reservoir of untapped potential wealth for the nation. For sponsors such as K-State and KTEC, this means the potential existed for a dramatic expansion of the technology base upon which the institutions can build to meet their respective missions.
Transition and Today
In 2004, MACC’s name was changed to the National Institute for Strategic Technology Acquisition and Commercialization, or NISTAC, as a signal that the reach of MACC’s programs was being broadened beyond Kansas to include regions throughout the nation. This expansion was primarily done through the creation of the national network of cooperating not-for-profit entities with complementary missions. Such entities include universities, research institutions and regional economic development organizations.
NISTAC, now KSU-IC, was named as the commercialization partner for the new K-State Olathe campus in Greater Kansas City in 2007. This represents a tremendous opportunity over time for KSU-IC, as K-State Olathe grows and establishes private sector and institutional partnerships focused on innovation. Also in 2007, NISTAC/KSU-IC partnered with K-State, the Kansas State University Foundation, KSURF, the Manhattan Area Chamber of Commerce, and the city of Manhattan to form a new program to support economic development in the region. Knowledge Based Economic Development, or KBED, was created to establish and actively support a thriving entrepreneurial environment to attract, grow, and retain knowledge-based businesses to create wealth and other benefits for the region and the partners.
In 2010, Kansas State University announced its strategic plan of being recognized as a top 50 public research university by 2025. With the longstanding relationship and successes of the two, top leadership at KSU recognized NISTAC was critical to achieving this goal. This brought about the reorganization of NISTAC’s corporate structure and name change to the Kansas State University Institute for Commercialization. The institute now has two members, Kansas State University and the Kansas Department of Commerce, with the university as the controlling member.
Overall, KSU-IC's initial 13 years, from 1995 through 2008, may be viewed as formative and momentum building, with measurable, meaningful results achieved. Progress to date has been encouraging and provides a basis to believe that KSU-IC will deliver significant contributions toward economic prosperity in Manhattan, as well as other regions throughout Kansas and the nation as it matures during the next 10 years.
KSU-IC licenses intellectual property from K-State and major corporations, creating start-up companies financed with more than $30 million in equity and grants over the past nine years.
KSU-IC licensing efforts have generated approximately $12 million in direct revenue back to Kansas State University over the past 10 years.
KSU-IC has created more than 170 jobs in the regional economy, with averaging salaries of approximately $57,000 annually.
Over the last 11 years, KSU-IC initiatives and client companies have generated an inflow of about $165 million dollars into the Manhattan region through product and service sales, investment capital, research funding from a variety of sources, royalties on product sales and other payments from technology licenses.
More than 1,000 patents were acquired via the nationally acclaimed Technology Acquisition, Development and Commercialization program between 1998 and 2004. Currently, 51 percent of this portfolio is licensed or sold, and global licensed product sales are more than $45 million annually.
In January 2008 the power of donated technologies became readily apparent with the 51 percent acquisition of NutriJoy Inc. by Coca-Cola Co. This acquisition gave Coca-Cola its first corporate operating presence in the state of Kansas.