Clemson takes on commercialization: technology donated by P&G, Eastman could mean big things for South Carolina university.

The weakened economy has affected everybody from corporate America to local government to academia. Budgets across the board have been pinched as funding cuts are the norm in most areas. Colleges and universities, hesitant to cut academic services, have been looking for new ways to generate income, and one of the results of this quest is an increased focus on technology transfer.

In the areas of nonwovens and fiber technology, some of this transfer relates to the development of new technology as well as the continuation or expansion of technology originally developed through corporate research. Clemson University in South Carolina, for instance, has been ramping up its technology commercialization efforts in the wake of two significant technology donations--one from Eastman Chemical Company, Kingsport, TN, and another from Procter & Gamble, Cincinnati, OH.

The two technologies, which were developed in tandem with each other through a collaboration between the two companies, relate to fiber technology that boosts fluid transport within absorbent products and other nonwoven materials. Since receiving the technology, Clemson has not only earmarked considerable student research toward advancing the work, it has also formed a commercialization team to examine the potential financial benefits the technology could bring to the university.

While commercialization of the technologies has not yet begun, university officials are optimistic that--under the right circumstances--revenue gained from licensing the technology could top the million dollar mark. This provides an added revenue stream for Clemson while giving its students exposure to technology that is living in the marketplace. "The intellectual property as it was donated to Clemson University was not complete but it was well on its way to being developed," explained Clemson's commercialization manager Danny Harris. "The university provides an environment where the technology can be further developed and nurtured and where the sole goal is not financial reward."

The Two Hosts

In 2000, Eastman Chemical Company donated a unique fiber technology, worth about $38 million, in what was then the largest gift in the university's history. The donation included more than 100 U.S. and worldwide patents as well as intellectual properties related to capillary surface materials (CSM) technology--a major breakthrough in the physics of fluid transport. At that time, Eastman also gave Clemson equipment to establish a small manufacturing lab to test and demonstrate product.

According to William Haile, development associate at Eastman Chemical Company, several factors led to his company's decision to donate the CSM technology to Clemson. For one, Eastman had exited the polyester fiber business in 1993, but the company had allowed a group of core scientists to continue to work on this technology until the late 1990s with the assumption that it would eventually be licensed or donated because it didn't fit into Eastman's core business. When the time came to license the technology, Eastman began talking to a group of 15 universities that might want it, posing several requirements including a commitment to eventually license the technology and the commitment of staff members to help advance the technology. Ultimately Clemson was chosen because it offered the right combination of personnel and student programs to best advance the technology and move it toward commercialization.

"We really wanted to find a good home for the technology, and we were selective about which companies were capable of meeting our requirements," Mr. Haile explained. "We figured that Clemson, as a public university, was limited in terms of funding and would welcome an additional source of funding."

CSM fibers are unique because their surfaces are engineered to contain deep channels. By comparison, most other fibers--both manmade and natural-have essentially smooth surfaces. Those deep -- channels give the CSM fibers their phenomenal absorbency. The innovative science behind this technology has the potential to make everything from oil-spill soakers to diapers more absorbent than anything currently on the market.

Created in partnership with the Eastman Technology, P&G's Capillary Channel Film and Fiber Technology, donated to Clemson in 2001, also features microcapillary technology technology. This technology creates synthetic fibers that contain deep grooves or capillaries to effectively channel fluids, much like how a tree moves water from its roots to its furthermost leaves. In absorbent materials, the design of the fiber and the depth of the grooves determine how the fluids will be transported.

Because companies tend to invent more technology than they can develop, technology donation, particularly to universities, has become common practice on the corporate level. P&G, for instance, spends more than $1.5 billion annually on research and development. The company has a portfolio of more than 28,000 patents, and it just makes sense for the company to put its unused patents to greater good.

"P&G's donation may result in new-and-improved products for millions of consumers and provide a revenue stream to the donee, which could further expand their research capabilities," explained P&G spokesperson Martha Depenbrock. "In addition, reaching out to different universities and research facilities with high potential technologies will give the next generation of scientists and researchers real-world experience and connect them to P&G's culture of scientific innovation."

To determine which institution would best provide the remaining development work on the technology and make it ready for commercialization, P&G uses an outside consultant. Clemson University was chosen to receive the CCF technology because it is at the manufacturing and academic heart of the fiber industry. Also, Clemson's expertise in textile and film processing is expected to facilitate commercialization of CCF. P&G has given up all future rights to the technology and any revenue associated with it.

A Winning Combination

The two technologies, which were donated within 18 months of each other, are complementary so having both portfolios gives the university more flexibility in developing the technology. "We have made reasonable progress but we still have a negative cash flow," explained Edward Page, head of the Clemson Research Foundation. "We have been working with some major players to evaluate the potential of this technology."

Mr. Page added that Clemson has put together a CSM Commercialization Team to examine market opportunities for the technology. Because Clemson's goals are less lofty than a large company such as Procter & Gamble or Eastman Chemical, successful commercialization of this technology would come easier. "What is a lot of money for Clemson, is not a lot of money for P&G," he explained. "If Clemson earned $10 million, we would be ecstatic. Whereas, that's nothing for a company like Procter & Gamble."

Any Clemson technology donalion and intellectual property that could lead to licensing agreements or other profit-making situations for the university are handled by the university's research foundation, which is a separate entity from the university. According to Mr. Page, more and more universities, looking to benefit from commercialization of technology, are setting up similar offices. "This makes a university's technology a lot more visible and universities are happy to bear the fruits of this," he explained.

The foundation, together with the assembly of the commercialization team and the hiring of a commercialization manager, Mr. Harris, should ultimately help Clemson from both a financial and educational standpoint. To date, no commercialization or revenues have been realized, but contacts have already been made with companies that could benefit from an agreement with Clemson. While Mr. Harris would not provide much detail about these potential licensees he did say that progress is being made and momentum has been created. "The potential uses are really full spectrum," he added. "We are working with machinery, fiber production and textile--both woven and nonwoven--companies in terms of specific evaluations in many areas."