- 11th July, 2024
- By Gabor Bethlendy
Bringing Core Facilities’ Efficiency and Cost Recovery into the 21st Century
Executive Summary
Core facilities are critical yet underutilized assets within academic institutions, possessing untapped potential to enhance research output and elevate a university's national and global reputation. By extending their specialized services to external customers and industry partners, core facilities can overcome funding challenges and poor cost recovery, simultaneously bolstering the university's profitability and reputation.
Despite the critical role of cross-sector collaboration for innovation, a recent report from the Association of Public and Land-Grant Universities (APLU) highlighted that only ~1% of industry R&D expenditure is allocated to universities, meaning a huge untapped financial potential exists. This gap is primarily attributed to the challenges universities face in making their core services accessible to industry.
Setting up core facilities to operate like businesses – easily accessible online, with properly marketed and dynamically priced services, and easy booking, scheduling, and payment processes – has traditionally been unattainable without a dedicated team of marketing, sales, web development, and operational staff, which are rarely resourced by research grants or university funding.
To bring core facilities cost recovery into the 21st century, Gravl provides a streamlined solution that transforms core facilities into profitable service providers. The platform eliminates the need for additional business-oriented staff, enabling core facilities to focus on what they do best: advancing scientific discovery and innovation. With Gravl, universities can harness the full potential of their core facilities, growing revenue and advancing science.
The Importance of Maximizing the Financial and Strategic Value of Core Facilities
Core facilities are integral to universities and research institutions, offering access to specialized equipment that individual research groups might otherwise find inaccessible1,2. More often than not, core facilities represent an enormously underutilized asset of institutions, offering the ability to boost revenue for reinvestment into facilities, staff, teaching, and research, improving research output and bolstering a university’s reputation.
Key Benefits of Well-Resourced Core Facilities
- Research Innovation and Reputation. When funded and operating efficiently, core facilities significantly boost an institution's research capacity and educational opportunities, driving innovation and elevating the institution's reputation in the scientific community.
- Attract Funding and Talent. High-quality facilities and the enhanced reputation discussed above attract funding and top-tier researchers, which can further boost an institution’s reputation.
- Economic Efficiency. By pooling resources, the institution can maximize the use of expensive equipment and minimize redundancy. Moreover, core facilities often represent a relatively untapped stream of income that could be invested back into improving facilities and offerings.
The Challenge of Cost Recovery for Core Facilities
Despite the substantial advantages these facilities provide to their users, they frequently encounter significant cost recovery challenges3. Such financial burdens often lead to increased user fees, which can decrease utilization, perpetuating a challenging cycle of reduced usage and increased costs. Ultimately, challenges in cost recovery regularly mean that the substantial benefits to users and institutions cannot be realized4,5.
Core facilities require continuous funding for operations, maintenance, and expensive equipment upgrades3. Large funding bodies such as the NIH invest considerable amounts yearly to support core facilities, with the most recent conservative estimate sitting at $900 million6. However, grant funding is notoriously sporadic, and it is not feasible for core facilities to rely on this as the sole source of financing.
Another challenge core facilities face is low usage due to the lack of continuity in material processing workflows. For instance, a genomics core facility often receives material processed from a different core; however, the current setup rarely permits seamless workflow integration. This discontinuity hinders operational efficiency and exacerbates underutilization issues, further straining the financial viability of these resources. Addressing these workflow integration challenges is essential to maximizing the utility and impact of core facilities, ensuring they can fulfill their potential in advancing research and innovation.
Rethinking Approaches to Managing Core Facilities
Addressing the challenges faced by core facilities necessitates strategic planning, innovative funding solutions, and effective management practices. When implemented successfully, these measures can significantly enhance the value of core facilities1. As such, there is a pressing need for core facilities to revise their strategies to address these challenges effectively3,4.
A Strategy for Success: Partnering with Industry R&D and Startups
Offering services for external use by industry R&D and startup partners represents an effective strategy for optimizing profitability within core facilities. A recent APLU report highlighted the increasing demand within the biotech and pharmaceutical industries for access to unique research assets such as laboratories, specialized equipment, and testing facilities, which helps reduce costs and expand the range of equipment available for niche R&D projects7. The services and equipment sought after by industry are more often than not readily available within university core facilities.
"Industry R&D spending has soared over the past few decades; however, only about one percent of total industry R&D is spent on formal research collaborations with universities, and only 6 percent of university research funding comes from industry. Some argue that these trends point to a disconnect between industry and university research, making it more difficult to identify promising commercial applications and slowing innovation and productivity growth in the U.S.”7.
– Association of Public and Land-Grant Universities.
In line with this, the National Center for Science and Engineering Statistics reported that U.S. R&D expenditure reached approximately $885.6 billion in 2022. Of this, industry contributed $692.8 billion (78.2%), while higher education accounted for only $91.5 billion (10.3%)8. According to the APLU report, only 1% (amounting to ~$6.9 billion in 2022) of industry R&D expenditure goes to universities, which sheds light on a huge untapped financial resource7.
Moreover, the global contract research organization (CRO) market, which provides early-phase research and development services to industry customers, including pharmaceutical, biotech, and medical device companies, was valued at $82.6 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 12.5% from 2023 to 20309. Given their superior flexibility and specialized research expertise, there is considerable potential for university core facilities to capture a portion of this market from CROs, particularly the early-phase development and laboratory services (Fig. 1). However, this opportunity is currently limited by the challenges industry R&D faces in accessing these university facilities.
Figure 1. CRO market share broken down by service type.
Thus, academic institutions needing to offset the costs associated with purchasing and maintaining expensive equipment in core facilities will certainly find a mutually beneficial strategy in making their services available for paid use by industry partners5.
For example, the Penn State Materials Research Institute successfully implemented this strategy and has reaped significant benefits from offering the equipment in its materials characterization lab, nanofabrication lab, and 2D crystal consortium for external use. Penn State highlighted that many bioscience companies, including Fortune 500 companies, are using their equipment, which often translates into fruitful long-term partnerships and boosts their cost recovery7. This approach can also benefit institutions that succeed in recovering their costs through their internal business but that struggle with obtaining new customers.
Advantages of Core Facility-Industry Partnerships
- Cost Recovery. Extending services to industry partners represents a new, untapped income stream that can support core facilities in recovering operational costs and facilitate reinvestment in the facility to fund new advanced equipment. Notably, a JBT publication discussed how higher rates can be charged to external users, which can be used to subsidize internal use or cover additional costs incurred3,10,11.
- Reputation. Collaborating with high-profile industry partners can boost the visibility and reputation of a university or research institute. This can attract talented researchers, students, and grant funding, further supporting the profitability of the core facility.
- Collaborations. As exemplified by Penn State7, this kind of partnership can act as a catalyst for long-term collaborations, which have been proven to promote technological advancements, support innovation, and drive translational research12–14.
- Skill Enhancement and Specialization. Industry partnerships can enhance specialization in core facilities by introducing new techniques, methods, and high-stakes projects outside their usual focus. This enhances cores’ internal capabilities and promotes innovation in the research environment.
Challenges of Building Core-Industry Partnerships
Ultimately, achieving and maintaining a well-funded core facility requires the facility to operate like a business, offering services to external partners. However, despite the considerable advantages of such a strategy, core facilities encounter challenges that hinder its successful implementation15.
- Time and Resource Limitations. Establishing and optimizing a streamlined process for offering services to industry partnerships is resource-intensive and time-consuming. Moreover, operational complexities increase with a mix of internal and external users, further straining core directors' limited time and resources.
- Lack of Relevant Experience. Core facility staff often lack the sales, marketing, and web development expertise to build and market an accessible platform for their services. Additionally, as noted in the APLU report, there is often a shortage of personnel with experience forging university-industry relationships, which acts as a barrier to partnerships7.
- Limited Visibility. Core facility services often suffer from poor online visibility, being unsearchable and undiscoverable due to being hidden behind firewalls or not indexed, preventing external access even when operational processes are in place. Even if core facility service pages are searchable, they are frequently out-marketed by contract service providers who invest heavily in marketing and SEO.
- Lack of End-to-End Project Workflow Execution. Scientific research often necessitates the utilization of multiple technologies that are typically not found within a single core facility. Consequently, researchers must collaborate with and utilize multiple core types for a single project. Implementing a project design and management solution that horizontally links data flow across core facilities enables researchers to better plan and execute their studies. This will significantly increase the uptake of core services and enhance repeat usage among satisfied users.
The Solution: Experience Enhanced Core Facility Efficiency and Cost Recovery with Gravl
Gravl provides a comprehensive solution designed to address the challenges faced by core facilities at universities and research institutions, all within a simple seven-step workflow (Fig. 2).
Figure 2. Gravl’s streamlined workflow simplifies the process for core facilities and industry partners.
Key Features of Gravl
1. Front-end E-commerce Platform
Feature: Gravl offers a robust front-end e-commerce platform.
Advantages: This platform enhances the institution’s online visibility without hiring additional full-time employees such as marketing experts or web developers. It allows cores to operate under the institution’s brand with complete control over their offerings, prices, and availability.
Benefits: The increased visibility leads to increased use by industry partners, facilitating cost recovery and net new customers. Additional revenue can be reinvested into upgrading equipment, hiring new staff, and providing an extra income stream for the university.
2. Lab Portal
Feature: Gravl’s lab portal includes thousands of pre-built workflows, seamlessly integrates with existing LIMS, such as iLab, and offers an inbuilt communication platform.
Advantage: This integration streamlines lab operations, enhancing efficiency and productivity without requiring users to switch from their existing system to a brand new system. Additionally, this facilitates cross-platform integration and cross-pollination of users, which can, in turn, increase the utilization of multiple core facilities and their services.
Benefits: As operational efficiency improves, core directors can allocate more time to strategic improvements and user engagement, ultimately enhancing service quality and innovation.
3. Institution-wide Dashboard
Feature: The platform features an institution-wide dashboard to visualize facility performance metrics.
Advantage: This dashboard supports the generation of detailed reports, enabling directors and VPs to have complete oversight over the performance and operations of different facilities.
Benefits: With this level of insight, leadership can make well-informed decisions to optimize strategies, adjust funding, and enhance overall institutional effectiveness, leading to better resource management and strategic allocation.
Benefits of Gravl for Optimizing Core Facilities
Enhanced Visibility for Increased Facility Use
The platform streamlines the interaction between scientists and core facilities through a digital interface, improving visibility and attracting more users. This increase in facility utilization boosts ROI and facility efficiency.
Cost Recovery
Gravl supports core facilities in recovering the costs of setup and maintenance. External usage can subsidize operational costs, allowing facilities to regularly upgrade to state-of-the-art equipment in line with technological advancements. Moreover, it alleviates the administrative burden on core facility staff associated with grant applications, enabling them to dedicate more time to research support and strategic improvements.
Expertise
Gravl brings expertise in marketing, sales, e-commerce, web development, resource optimization, and client management, thereby eliminating the need for institutions to employ specialized full-time staff for these functions. This significantly cuts overhead costs and streamlines operations.
Time Efficiency
Gravl provides core managers with tools that minimize time spent on administrative tasks. Its integrated management systems and automated processes lighten the managerial load, facilitating a focus on strategic decision-making and enhancing service quality. Notably, it seamlessly integrates with existing systems such as iLab through dedicated APIs, meaning that users do not need to switch away from a system that works for them.
Strategic Resource
Gravl serves as a crucial strategic resource for university leadership, helping them navigate the financial uncertainties prevalent in organizations that rely on fluctuating grant funding by opening new revenue streams. It supports the expansion and maintenance of core facilities by attracting new users and improving service delivery, thus streamlining operations and enhancing overall institutional efficacy and reputation.
Conclusion
Core facilities are indispensable for research institutions, yet they face significant challenges in cost recovery and attracting new users. Making services available to external users can be a practical approach to overcome this, yet core staff often lack the time and resources required to manage this effectively. Gravl offers a dynamic solution to these challenges by simplifying management processes and expanding user access, thereby enhancing operational efficiency and financial health. By streamlining operations and attracting external users, Gravl not only aids in cost recovery but also boosts overall institutional growth and reputation.
Through its innovative approach, Gravl has the potential to transform core facility operations, allowing cores to focus on what matters the most: driving scientific discovery. To see for yourself how Gravl can simplify and accelerate your core facility operations, schedule a free demo today!
References
1. Lippens S, D’Enfert C, Farkas L, et al. One step ahead: Innovation in core facilities. EMBO Rep. 2019;20(4):e48017. doi:10.15252/embr.201948017
2. Gould J. Core facilities: Shared support. Nature. 2015;519(7544):495-496. doi:10.1038/nj7544-495a
3. Haley R. Institutional management of core facilities during challenging financial times. J Biomol Tech JBT. 2011;22(4):127-130.
4. Haley R. A framework for managing core facilities within the research enterprise. J Biomol Tech JBT. 2009;20(4):226-230.
6. Chang M, Grieder FB. Sharing Core Facilities and Research Resources—An Investment in Accelerating Scientific Discoveries. J Biomol Tech JBT. 2016;27(1):2-3. doi:10.7171/jbt.16-2701-004
7. Association of Public & Land-Grant Universities. Driving U.S. Competitiveness through Improved University-Industry Partnerships. Accessed April 22, 2024. https://www.aplu.org/wp-content/uploads/driving-us-competitiveness-through-improved-university-industry-partnerships.pdf
8. Anderson G. U.S. R&D Increased by $72 Billion in 2021 to $789 Billion; Estimate for 2022 Indicates Further Increase to $886 Billion. National Center for Science and Engineering Statistics (NCSES); 2024. https://ncses.nsf.gov/pubs/nsf24317/
12. Boccanfuso AM. Why University-Industry Partnerships Matter. Sci Transl Med. 2010;2(51). doi:10.1126/scitranslmed.3001066
13. Ahmed F, Fattani MT, Ali SR, Enam RN. Strengthening the Bridge Between Academic and the Industry Through the Academia-Industry Collaboration Plan Design Model. Front Psychol. 2022;13:875940. doi:10.3389/fpsyg.2022.875940
14. Tanaka ML, Lopez O. Outlook on Industry-Academia-Government Collaborations Impacting Medical Device Innovation. J Eng Sci Med Diagn Ther. 2024;7(2):025001. doi:10.1115/1.4063464
15. Hockberger P, Meyn S, Nicklin C, Tabarini D, Turpen P, Auger J. Best Practices for Core Facilities: Handling External Customers. J Biomol Tech JBT. Published online July 2013:jbt.13-2402-001. doi:10.7171/jbt.13-2402-001