Computer Hardware Industry Trends

Growth in Venture Capital

The venture capital industry has grown rapidly in the last 20 years to fund the commercialization of promising new technologies. Venture capitalists are willing to take financing risks that regular banks avoid, and have developed expertise in various advanced technologies.

Licensing University Technology

Successful commercial development by industry of science and technology first discovered at universities has prompted many universities to demand royalties and fees in exchange for licenses to their technology. A large number of patents are held by universities, led by the University of California, MIT, and the California Institute of Technology. Annual academic research spending at 190 top universities totals about $30 billion.

Technology Transfer from Government

Technology once developed in secret for military purposes is now in the private sector as federal labs seek ways to commercialize their research. The transfer of government technology to industry is encouraged by the National Technology Transfer Center. Over 5,000 companies have entered research and development agreements with federal labs, with small companies getting preference.