From Lab to Market: The Three Phases of University Innovation
The path from university research to successful startup can be complex, often requiring iteration and adaptation. Dr. James Klausner's journey with Redoxblox, a startup focused on advancing energy storage solutions, highlights how academic innovation often progresses through key phases, each building on the last, while requiring flexibility and problem-solving along the way.
Phase 1: Fundamental Research
Early in his career at the University of Florida, Dr. Klausner focused on fundamental research in heat transfer systems. Like many researchers, he initially struggled to see the direct impact of his work:
"With very fundamental-type research, it's tough to see your work actually being used by the industrial sector. You really don't know whether you're making an impact or not."
Despite this uncertainty, the technical expertise he developed during this period laid the foundation for later breakthroughs in energy storage. He also gained valuable experience with intellectual property, leading to a key insight:
"In the biological sciences, there's huge payback. Companies are willing to take risks and grab that intellectual property. But in the physical sciences, it's quite a bit different. The industrial community is a lot more risk averse."
Phase 2: Applied Development
As Klausner’s career progressed, he sought to make a greater impact.
"I had this itch—I wanted to make a bigger impact with what I was doing," he recalls. "When you start doing applied research, you can see right away whether there's value and whether you're going to have an impact."
During this phase, his team secured Advanced Research Projects Agency-Energy (ARPA-E) funding, a U.S. government program that supports high-potential, high-impact energy technologies, which was instrumental in developing and validating their technology. This underscores a crucial point for academic innovators: government grants can serve as a bridge between fundamental research and commercial development.
The team also recognized the importance of keeping original innovators involved in the commercialization process.
"In venture capital, they want the innovators involved with the company if they're going to turn over their funds and take risk in the physical sciences."
Phase 3: Commercial Translation
The final phase – commercialization – requires a shift in thinking toward market needs and value proposition. Klausner learned this lesson early:
"One of my earliest conversations was with a company that was super excited about our technology. But, the sustainability officers said, 'James, I report to my board of directors. They will not let me install new technology that's going to cost us more money.'"
This reality check led to a critical pivot:
"We decided we needed a business proposition that is completely independent of political considerations. We're not relying on the goodwill of 'yes, we want to do something about the climate.' We're saying 'Hey, we have a business proposition where you can save money and do something about the climate.'"
Building the Right Foundation
Bringing an innovation to market requires more than just technical breakthroughs. The Redoxblox team leveraged several key university resources:
University innovation centers: MSU Technologies and the MSU Research Foundation provided crucial early support.
Research networks: The founding team came together through an ARPA-E project.
Academic expertise: Multiple co-founders contributed technical backgrounds.
Choosing the right investors was also essential. As Klausner emphasizes:
"We cannot underestimate the value of good investors. They have networks and resources they can tap into. Getting the right investors is jsut as important as the amount of capital they provide."
Looking Forward
For academic entrepreneurs considering commercialization, Dr. Klausner's journey offers key lessons:
Strong fundamental research creates opportunities for breakthrough innovation.
Applied development, often supported by government grants, helps validate commercial potential.
Success requires shifting focus from technical capability to market needs.
University resources and networks can provide crucial early support.
The right investors bring value far beyond their capital.
Perhaps most importantly, Klausner challenges the idea that innovation only happens in traditional tech hubs:
"I've spent a lot of time interacting with Silicon Valley venture capitalists and there's a bias towards everything being in Silicon Valley. But what I keep telling them is—there are smart people all over the country. You just have to look."
The journey from university lab to successful startup is complex, but with the right foundation, support, and market focus, academic innovators can successfully navigate all three phases to create real-world impact.
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This article is based on an interview with Dr. James Klausner, professor of mechanical engineering at Michigan State University and co-founder of Redoxblox, on the MSU Research Foundation Podcast. You can listen to the full conversation on Apple Podcasts or Spotify.