Cheryl A. Cage is president of Cage Consulting and was the 2008 Democratic candidate for State Senate in Legislative District 26.

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Counselor

The Star's Dec. 10 editorial, "Universities must be creative to find funding" is an excellent jumpstart to a much-needed debate, but it stops short of addressing the real issue.

The time has come to accept a new vision for the role of our universities. We must recognize that our state universities are not simply institutions of learning, but powerful economic engines that can enhance, rather than burden, our state budgets.

Coupling the University of Arizona's research capabilities with businesses' hunger for ground-breaking technology could help solve two of our most pressing issues: a weak economy and the lack of funding for universities.

During this past campaign season, I spoke at length about resurrecting the idea of allowing our public universities to accept equity in private companies.

The Arizona Constitution does not allow state agencies to be shareholders in private companies. To change this status requires a ballot initiative.

I suggest an initiative that would allow state universities (and only state universities, no other state agency) to accept equity in companies in exchange for the company's ability to use university-developed technology and intellectual property.

In simple terms, if a company has a great idea that requires technology a state university has developed, but it lacks the cash to purchase the technology, this initiative would allow the company to offer stock in exchange for use of the needed technology.

To see how this change could benefit Arizona, it's worthwhile to take a look at the University of Florida and Gatorade story.

University of Florida researchers (lead by kidney specialist Robert Cade) developed the sports drink Gatorade in response to the problem of athlete dehydration as a result of playing sports in a high-humidity environment. The Stokely-Van Camp Company purchased rights to the sports drink. As a result the University of Florida has collected more than $80 million in royalties. This money not only helped the university's bottom line, but also has helped to fund research projects in a wide variety of subjects.

The UA already has a stellar reputation as a research university; imagine what could result from their world-class biotech research! If a company product succeeded using university-created technology, the university could reap millions of dollars for years to come.

There is an obvious concern about oversight. Which companies should the university accept? This roadblock could be overcome through oversight from the Board of Regents or another independent board.

I am proud that State Sen. Paula Aboud and State Rep. Nancy Young Wright, champions of our universities, have agreed to work with me to encourage this initiative.

It will take a strong commitment to bring together elected officials, business, educational and community leaders, but I am confident the idea has broad, bipartisan appeal.

This will also help boost Arizona's reputation on the national stage. A new, progressive view of public/private partnerships will state loud and clear: Arizona values education; Arizona values economic development and Arizona is open for business!