By Andy Evangelista

Seven University of California startup companies are highlighted in a new report showing the link between federally funded basic research and economic growth.

Released today (May 11) by the Science Coalition, "Sparking Economic Growth: How federally funded university research creates innovation, new companies and jobs" traces the origins of 100 companies to breakthrough research conducted at a university and sponsored by a federal agency.

The UC startup companies named as "success stories" in the report are:

• Agensys Inc.: In 1996, Don Rice and researchers from the urology department at the David Geffen School of Medicine at UCLA founded UroGenesys, now called Agensys. The company got its start when UCLA researchers, supported by the National Institutes of Health, discovered genes associated with certain solid tumor cancers. These discoveries led to the development of antibody treatments for those cancers.
• ALEKS Corp.: In 1993, Jean-Claude Falmagne assembled a team of software engineers, mathematicians and cognitive scientists at UC Irvine. They developed the core of an interactive software system for arithmetic and algebra curricula, and ALEKS is now a leader in the creation of Web-based educational software. The research was supported by grants from the National Science Foundation.
• ArmaGen Technologies Inc.: Founded in 2004 by William Pardridge, professor of medicine and endocrinology at UCLA, the company developed "molecular Trojan horses" that deliver various drugs and gene therapies to the brain to treat conditions including Alzheimer's, Parkinson's disease, stroke and brain cancer. The National Institutes of Health and the Department of Defense funded Pardridge's research.
• Cadence Design Systems Inc.: UC Berkeley alumnus James Solomon and electrical engineering professors Richard Newton and Alberto Sangiovanni-Vincentelli formed SDA Systems (now Cadence Design Systems) in 1983. They developed "electronic design automation" software, which aids performance and functionality of today's mobile phones, digital cameras, computers, automotive systems and other electronic products. The Department of Defense funded their research.
• Genentech Inc.: Established in 1976 by UCSF's Herbert Boyer, a co-discoverer of recombinant DNA technology, Genentech was a pioneer of the biotechnology industry. Genentech develops and manufactures drugs for asthma, rheumatoid arthritis, blood clots and a variety of cancers. The research that opened the door to the world of genetic engineering was supported by grants from the National Institutes of Health and the National Science Foundation.
• Solarmer Energy Inc.: Founded in 2006, the company uses technology developed by UCLA material sciences professor Yang Yang to make flexible solar cells from inexpensive organic materials. These lightweight and environmental friendly solar cells have the potential to extend the portable power of cell phones, laptops, digital music players and other devices. The National Science Foundation and the Department of Defense's Office of Naval Research and the Air Force Office of Scientific Research supported Yang's research.
• Sun Microsystems Inc.: Founded in 1982 by UC Berkeley doctoral student Bill Joy and Stanford University students and graduates, the company is now a major supplier of software, microchips and computer workstations. Sun sells a wide array of high-end computer servers used to construct of data centers and IT networks. Early research was funded by the Defense Department's Defense Advanced Research Projects Agency.

"For more than three decades, UC has been able to leverage federal funding for basic research to create public benefit and enhance the regional and national economy by moving discoveries from the laboratory to the market," said William Tucker, executive director of Innovation Alliances and Services at the UC Office of the President.

In that time, 461 startup companies have been formed with UC inventions, and many of these companies, along with UC, have played an important role in driving California's technology-centric economy, said Tucker. And more can be expected in the future as federally funded research helps fuel industries in fields such as clean energy and nanotechnology.

"There is no question that the public benefit gained from funding basic research is exponentially greater than the initial investment," said UC San Francisco Chancellor Susan Desmond-Hellmann. "The success stories highlighted in this report demonstrate that fact and are a reminder that the continued scientific and technological leadership of the United States — and our economic well-being — depends on consistent, strong funding for research."

The Science Coalition is a nonprofit, nonpartisan organization of 45 of the nation's leading public and private research universities, including the UC system. It is dedicated to sustaining the federal government's investment in basic research as a means to stimulate the economy, drive innovation and secure America's global competitiveness. The organization developed the Sparking Economic Growth report to illustrate one way in which federal investment in basic research helps stimulate the economy. The report is available at www.sciencecoalition.org/successstories along with a database of companies created from federally funded university research.

Andy Evangelista is the research coordinator for the UC Office of the President Strategic Communications Department.  For more information, visit the UC Newsroom or follow us on Twitter.