Research Management
ISSN: 0034-5334 (Print) (Online) Journal homepage: http://www.tandfonline.com/loi/urtm19
Making Industry-University-Government
Collaboration Work
J.J. Dietrich & R.K. Sen
To cite this article: J.J. Dietrich & R.K. Sen (1981) Making Industry-University-Government
Collaboration Work, Research Management, 24:5, 23-25, DOI: 10.1080/00345334.1981.11756686
To link to this article: https://doi.org/10.1080/00345334.1981.11756686
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Making Industry-University-Government
Collaboration Work
J .J. Dietrich and R.K. Sen
An electrochemical R&D project between Diamond Shamrock, Case
Western Reserve University, and DOE highlights the essential
ingredients in a successful collaboration.
A close relationship between industry, universities
and government can be an important spur to
technological innovation. However, such collaboration is easier to talk about than to implement. For
this reason we are presenting here an example of a
civilian R&D program where such an interaction is
working well.
The program is working well because the needs of
the three institutions involved - Diamond
Shamrock Corporation, Case Western Reserve
University and the U.S. Department of Energyare being met. Thus, Diamond Shamrock, a leader in
the cholorine-caustic industry, had been working for
ten years on a membrane cell that would produce
pure caustic in high concentration in its cathode
chamber. Although something of the order of 1.0
volt might be saved during membrane cell operation
if the present cathode could be replaced by an oxygen depolarized air cathode, the available air
cathode technology was not directly applicable; conJ .J. Dietrich is director of technology development, Electrolytic
Systems Division, Diamond Shamrock Corporation. He received
his Ph.D. in Chemistry from Iowa State University. He has held
several technical management positions at Diamond Shamrock
and was previously employed at Columbia Southern Corp. and
Spencer Chemical Co. This paper is the direct result of Dr.
Dietrich's involvement with the Industrial Research Institute
Federal Science and Technology Committee's Task Force Group
to consider the impact of industrial/university relations on in·
dustrial innovations as affected by Federal policies. R.K. Sen is
manager of government contracts, Electrolytic Systems Divi·
sion, Diamond Shamrock Corporation. Prior to this position, he
was research supervisor at Diamond Shamrock. He received his
Ph.D. in Chemistry from the University of Pennsylvania, and
did his post·doctorate work at Case Western Reserve University
and the Fritz Haber Institute in Berlin.
siderable basic research was needed before an air
cathode could be fitted to a membrane cell. The high
risks of such an effort kept Diamond Shamrock
from pursuing this goal alone.
Meanwhile, at Case Western Reserve, Professor
Ernest B. Yeager, director, Case Laboratories of
Electrochemical Studies, was eminently qualified to
do the basic research in air cathodes. He has been investigating the electrochemistry of oxygen reduction for more than ten years. Furthermore, a close
relationship existed between Diamond Shamrock
and Professor Yeager as a result of Diamond
Shamrock's having funded previous research programs at the university and having employed
several of his co-workers.
Professor Yeager's interest in pursuing aircathode research and Diamond Shamrock's commerc.ial interest in adapting air-cathodes to membrane cells brought the two parties together in 1975
when they decided to pursue a joint research program. However, the primary problem was obtaining
funds, for Diamond Shamrock considered the program to be very risky and was not willing to commit
all of the R&D funds needed.
Mutual Benefits
The chlor-alkali industry is the second largest industrial consumer of power in the United States,
and evaluations showed major savings in energy
consumption when air cathodes are used in membrane cells. This suggested that with the impending
energy crisis, government support of such a program could be in the national interest. Consequently, a proposal was made to DOE in 1976, and
awarded in 1977.
September 1981123
The short-term goal of this collaborative program
was to develop oxygen cathodes for chlor-alkali
membrane cells. The scope was limited to membrane
cells because the probability of retrofitting the oxygen cathode to a diaphragm cells was considered
very low. As a long-term objective, the information
developed during this program will also be utilized
in metal-air batteries, fuel cells, and other applications.
Diamond Shamrock has an Electrolytic Systems
Division which is engaged in the worldwide licensing of the corporation's electrochemical technology.
Therefore, the energy savings realized with the oxygen cathode can be incorporated in future expansions within Diamond Shamrock and offered to the
rest of the world through the licensing network.
In addition to giving Case Western Reserve the
opportunity to make basic contributions in oxygen
electrocatalysis, provisions have been made for the
university to share in profits obtained from the successful commercialization of this technology. The
program has made it possible for the university to
train scientists in energy-saving technology and to
present this technology to the public in the form of
technical papers.
The Department of Energy has not only been active in promoting energy conservation programs,
but has placed heavy emphasis on commercialization of technology. The successful application of the
oxygen cathode technology .to chlor-alkali membrane cells will reduce the electrical energy required
by about 20 percent. Even if the market penetration
of the air oxygen cathode into the U.S. chlor-alkali
industry reaches only 30 percent of the industry, the
electricity savings would be approximately 3 X 109
kWh per year for this country (1). This will translate
to a substantial reduction in oil imports.
Potential Problems and Their Solutions
That the interests of the three parties were
satisfied was a necessary but no means sufficient
condition for the program to proceed. Several
organizational and legal problems had to be addressed.
Organizational - Universities generally emphasize unstructured research, with the advancement of knowledge and its wide dissemination as
key goals. This differs from the primary efforts of
industrial research organizations, which focus on
developing a product, creating a strong patent position, and reaping the benefits of research through
successful commercialization. Disseminating information to the wider scientific community is encouraged but with restrictions. Thus, a compromise
on these divergent interests must be reached if a
university and industry are to collaborate in R&D.
This was accomplished in the present program
through the organization shown in Figure 1.
CWRU
Electrocatalyst Synthesis and
Characterization
Electrode structure
Data
Catalysts
Structure Design
Catalysts
Structure
Design
DSC - Research Group
1
Test
Results
DSC
Fabricate Electrode
Project Management
Fabricated
Electrode
Electrode
Test
Results
DSC - Research Group
Electrode Evaluation t-----~
Figure 1/DOE contract research information and materials flow
24/Research Management
Diamond Shamrock is responsible for managing
the overall program, thereby giving it a proper
focus. The yearly research objectives are set by the
group leader in charge of the program at Diamond
Shamrock, the project director at Case Western
Reserve, and the program manager. The program
manager's role is to coordinate the research activity
in terms of the research directions agreed upon.
Apart from the DOE-sponsored program, Diamond
Shamrock is also spending internal R&D funds on
air-cathodes. This research activity is also under the
same manager at Diamond Shamrock, allowing
close inputs into the DOE-funded portion of the project from Diamond Shamrock's internal
developments. Monthly technical meetings serve as
the formal forum for exchanging technical data and
planning future work.
It is important to note that Case Western
Reserve is only 20 miles from Diamond Shamrock's
Research Center. This allows the scientific personnel of the two groups to meet almost daily, and contributes tremendously to the smooth operation of
this program.
Legal - The primary legal problem lies in industry 's effort to protect technology through
patents and to firmly establish which party owns
the rights to the patents. Diamond Shamrock insists that in any government-funded project it must
obtain the exclusive rights to the technology
developed. Without this non-negotiable clause, Diamond Shamrock has no incentive to participate in
such joint programs. Quite a few companies do,
however, work with various government funding
agencies without acquiring patent rights. Usually
these are defense-related industries with the government being the primary consumer, or they are industries involved with high technology where the
risk does not justify the large R&D expenditure involved. The nuclear industry is a good example.
Because Diamond Shamrock's business interests lie
in the highly competitive chemicals area, it is impossible .fm;. it to operate without a well-defined proprietary position.,
A valid argument can be made, however, that one
industry (especially in a competitive area) should
not be given a preferred position with government
support. The fruits of a government-sponsored R&D
effort should be available to any interested U.S.
company. Diamond Shamrock resolved this question by agreeing to license the technology for a
reasonable fee. Such an approach fits well with the
company's business strategy (which includes
licensing technology) as well as with the government's desire to see the fullest commercialization of
the product.
Part of the R&D effort in this program is carried
out at Case Western Reserve University; thus, the
question of patent rights between Case Western
Reserve and Diamond Shamrock needed to be addressed as well. This was done in a separate agree-
ment between the two parties. Essentially, this
agreement stipulates that patents obtained by Case
Western Reserve will be the property of the university, with Diamond Shamrock having exclusive
worldwide rights. In return for this right, Diamond
Shamrock agrees to pay Case Western Reserve a
percentage of gross sales once the product is commercialized.
Keys to Success
There are several key factors which are contributing to the success of this three-way program.
1. That the relationship of Diamond Shamrock
Corporation and Case Western Reserve Univesity
goes back over many years. In particular, there has
been a strong personal relationship with Professor
Yeager which has resulted in several joint programs
before the current one. This informal relationship is
fostered by the close proximity of Case Western
Reserve and Diamond Shamrock Research Center.
This is evidenced by not only close collaboration in
electrochemistry, but also by joint programs in the
polymer, analytical, and other areas.
2. That Dr. Yeager has worked for many years
with both industry and the government. This has
given him insight into the needs of both organizations. It has also allowed him to establish credibility
and informal relationships with scientists and
managers at all levels.
3. That Diamond Shamrock was granted the patent rights to the technology developed under this
program, thereby providing the business incentive
necessary to rapidly commercialize this technology.
The business structure already exists for rapid
worldwide licensing.
4. That DOE is a goal-oriented agency interested
in commercializing the technology developed under
their grants. The people manning this agency
understand industrial-academic needs and have
meshed these very closely with their government
objectives.
In summary, the program is proceeding smoothly
because the needs of the three institutions are being
met. Case Western Reserve University has the tools
and skills necessary to understand the basic
chemistry involved and to develop new catalysts.
Diamond Shamrock Corporation has a basic need
for the technology internally and is positioned for
worldwide licensing. The combination of the talents
of these two institutions meets the needs of DOE,
which is to develop technology that reduces the U.S.
energy reliance on OPEC and to move this
technology as quickly as possible to the commercial
stage.
Reference.
1. "Oxygen Electrodes for Energy Conversion and Storage,"
Annual Report, 1 October 1977 to 30 September 1978, Diamond Shamrock Corporation, Painesville, Ohio, DOE Contract: EC-77-C-02-4146, January 15, 1980.
September 1981125