New Jersey— Rutgers University has developed a funding model that reinvests licensing revenue from successful technologies into early-stage projects, aiming to help promising discoveries reach commercialization.

The approach, detailed in Nature Biotechnology at the request of the U.S. National Institutes of Health, sets Rutgers apart from peer institutions. While many universities rely on federal grants, philanthropy or industry partnerships, Rutgers revised its patent policy in 2022 to dedicate 5% of technology transfer income to internal commercialization programs, including TechAdvance® and the HealthAdvance Fund®.

Since 2017, those programs have awarded more than $12 million to faculty innovators, generating up to 3.5 times that amount in follow-on funding from venture capital, licensing deals and additional grants. HealthAdvance projects have produced six startups, while TechAdvance-supported technologies have been licensed to companies and spinouts.

“This is about making sure taxpayer-funded research doesn’t stop at the publication stage,” said Michael E. Zwick, senior vice president of research at Rutgers.

The model also embeds industry expertise into projects, requiring innovators to work with mentors and external advisers before receiving funding. Rutgers invites investors to co-fund select projects, sharing costs and giving partners early access to emerging technologies.

University officials say the greatest financial and clinical impacts are still ahead, given the long timelines for biomedical products. But commercialization activities – patents, startups and translational grants – now contribute to tenure and promotion, signaling a cultural shift.

“By recognizing patents and product development in our criteria, we are telling researchers that advancing discoveries toward real-world impact is part of Rutgers’ core mission,” said Vincent A. Smeraglia, executive director of new ventures.