Structuring University– Private Partnerships for Developing and Commercializing Transgenic Horticultural Crops - Transgenic Horticultural Crops: Challenges and Opportunities - page 239

A. key. policy. issue. is. developing. concrete. measures. of. PPP. productivity.. Much.
of.the.literature.on.PPPs.focuses.on.developing.proper.incentives.for.behavior.cov-
ered.within.the.scope.of.an.individual.agreement,.but.little.consideration.is.given.to.
incentives.that.fall.outside.a.speciic.agreement..Because.many.of.these.agreements.
are.up.for.renewal.once.completed,.there.are.incentives.for.the.public.institution.to.
make. sure. that. the.private.partner. is. satisied.with.the. outcome. of. the. agreement,.
and,.under.increasing.inancial.pressure,.this.may.affect.behavior.within.a.current.
agreement.. In. other. words,. these. agreements. are. not. necessarily. one-shot. games,.
but. might. be. a. single. round. of. a. repeated. game.. As. such,. there. are. incentives. for.
the.public.institution.to.develop.a.certain.reputation.so.that.the.private.partner.will.
support. a. renewed. relationship.. This. speaks. to. one. of. the. primary. concerns. with.
these. agreements. that. public. institutions. will. fail. to. look. for. funding. from. other.
sources,.will.become.dependent.on.renewing.these.agreements,.and.will.therefore.
lose.their.ability.to.walk.away.from.negotiations,.and,.as.a.result,.will.sacriice.much.
of.their.bargaining.power..If.recognized,.these.issues.may.be.addressed.by.choosing.
a.partner.with.which.there.is.strong.incentive.alignment.as.well.as.safeguards.in.the.
agreement.
GENERAL GUIDELINES
In.this.section,.we.will.apply.our.operational.framework.to.structure.general.guide-
lines.and.evaluate.the.control.rights.for.two.leading.university-private.partnerships.
in.R&D..These.case.studies.provide.insights.into.structuring.horticulture.university-
private.partnerships.
ppp S and p ublIc G ood r eSearch
As. public. funding. of. scientiic. research. has. declined,. and. knowledge. inputs. have.
played.an.increasingly.important.role.in.industrial.processes,.universities.and.other.
public.research.institutions.have.looked.to.private.sources.to.increase.their.research.
budgets..Many.lessons.have.been.learned.as.public.criticism.and.scrutiny.of.these.
research.partnerships.have.evolved. 19 .Issues.such.as.conlict.of.academic.and.indus-
try. interests,. ownership. of,. and. access. to,. IP. (e.g.,. issues. of. hold-up. and. blocking.
patents),. and. publication. delays. have. fueled. the. current. debate. and. often. present.
insurmountable.obstacles.to.forming.research.partnerships.
A. host. of. external. forces. have. shaped. the. current. environment. in. which. pub-
lic.researchers.are.seeking.to.actively.engage.with.private.irms..Among.these.are.
diminishing. federal. and. state. funds. for. public. good. research. and. increased. state.
funding. incentives. for. private-public. research.. In. addition,. legislation. (e.g.,. the.
Bayh-Dole.Act),.the.restructuring.of.many.large.life.sciences.irms,.and.an.align-
ment. of. private. and. public. research. incentives. have. contributed. to. this. trend. 20 .
Moreover,. the. traditional. research. paradigm,. which. presumes. that. there. is. a. one-
way. low. from. basic. science. conducted. in. public. institutions. to. applied. research.
and. commercialization. undertaken. by. private. industry,. has. begun. to. be. replaced.
by.a.chaotic.R&D.feedback.loop.paradigm. 13,20 .Increasingly,.public.universities.and.