Marketplace Morning Report — "Making university research make money"

Date: December 3, 2025
Host: David Brancaccio
Featured Guests: Chris Farrell (Marketplace Senior Economics Contributor), Susan Schmidt (Exchange Capital Resources), Carla Javier, William Lee Adams (BBC), Dana Peterson (Conference Board), Joanne Hsu (Univ. of Michigan), Camelia Kunin (UNC Business School), Rick Hibbs (University of Minnesota)

Episode Overview

This episode focuses on the growing trend of universities commercializing their research in response to shrinking federal funding. The report spotlights how institutions like the University of Minnesota are ramping up efforts to turn innovations from faculty and students into startups and licensed technologies, a strategy historically led by elite schools like Stanford and MIT. The episode also covers job market trends, Indian tech policy, and a quick update on consumer sentiment among young adults.

Key Discussion Points & Insights

1. Shifting Job Trends & Economic Sentiment

• Private Payrolls Down:

  • ADP's report highlights a 32,000 drop in private payrolls, particularly among small businesses (01:30).

  • Larger businesses remain largely unaffected.

  • The official government jobs data is delayed due to a government shutdown (02:07-02:17).

  • The delay affects the Fed's decision-making on interest rates.

    Susan Schmidt: "Most of these losses are from smaller businesses. So that under 50 employee business is really taking stock and just seems to have put a pause on hiring, not picking up new workers, larger businesses still doing okay, seeming to add on workers." (01:51)

• Market Reaction:

  • The bond market welcomes the payroll drop, lowering 10-year interest rates to 4.06% (02:47).

2. India Reverses Surveillance App Mandate

• Indian Smartphone Policy:

  • The Indian government reversed its decision to force phone makers like Apple and Samsung to pre-install a state-run cybersecurity app after backlash from privacy advocates, opposition, and manufacturers (03:23).

    William Lee Adams: "The government also found itself at odds with phone manufacturers as Apple and Samsung had plans to not comply with the directive, according to the news service." (03:23)

3. Consumer Confidence: Young Adults Stay Optimistic

• Young Adult Optimism & Puzzling Data:

  • Surveys from the Conference Board show young adults have retained or even slightly improved confidence, despite overall falling numbers (05:38-06:06).

    Dana Peterson: "They're not as disenchanted, I guess, as the older group." (06:01)

  • University of Michigan data, however, suggests convergence among all age groups, showing persistent pessimism partly related to the cost of living.

    Joanne Hsu: "You know, our questions are very much going to be picking up how people feel about their living standards, about cost of living. And that's one of the reasons I think that young consumers in our data are expressing as much pessimism as they are." (06:33)

  • Concerns remain about youth investment in their futures and communities if pessimism lingers.

    Camelia Kunin: "If anything, you want young people to be those most optimistic about the potential of the American economy because if they're losing hope ... they might not invest in themselves or their communities." (06:55)

4. Main Story: Monetizing University Research

Segment Start: 07:07

- Funding Cuts Drive Change

• Trump administration wants "deep cuts in federal funding for research at American universities, including cutting money for basic research by more than a third." (07:07)
• Universities are increasingly seeking commercial opportunities for their research output.

- Case Study: Minnesota’s Techcomm Office

• University of Minnesota has become a leader in spinning out startups from academic research (07:48).

• Techcom, the university’s tech commercialization hub, has supported 285 startups since 2006—almost half since 2020 (08:29).

• Minnesota is in the elite company of only four universities nationwide spinning off 20+ startups annually.

• Significant investments and talent hires are credited for this acceleration.

  Chris Farrell: "Techcom, they backed 285 startups, just as you're mentioning, in various ways since 2006. Nearly half that growth came since 2020. And in the past five years, only four universities have spun off 20 or more startups a year. And Minnesota ranks among the top four." (08:29)

  Chris Farrell (on ecosystem): “The university invested a little bit more in the office, brought in some people from the outside, and then really support the entrepreneurial ecosystem. Sort of this entrepreneurial feeling within the faculty.” (09:06)

• The startup goal is ambitious, aiming for 30, 40, even 50 launches a year (09:57).

  Chris Farrell: "The Techcom office backed a record 26 startups this past year. And while he's having the conversation with them, the ambition is eventually ramp up to 30, 40, 50 startups a year." (09:57)

- Broader Trend: Monetization as Funding Grows Uncertain

• Universities cannot count on federal research funding; they're scouting other revenue streams.

  Brian Rosenberg: "Very hard to go back to a world in which you treat [federal funding] as certain. And so I think you're going to see universities looking for other sources of revenue, and I think you're going to see more of them trying to monetize." (09:20)

Notable Quotes

• Susan Schmidt (Exchange Capital Resources):
  "Most of these losses are from smaller businesses. So that under 50 employee business is really taking stock and just seems to have put a pause on hiring..." (01:51)

• Dana Peterson (Conference Board):
  "They're not as disenchanted, I guess, as the older group." (06:01)

• Joanne Hsu (Director, Univ. of Michigan Consumer Sentiment):
  "Our questions are very much going to be picking up how people feel about their living standards, about cost of living." (06:33)

• Chris Farrell (Marketplace):
  "In the past five years, only four universities have spun off 20 or more startups a year. And Minnesota ranks among the top four." (08:29)

• Brian Rosenberg (Harvard/Former Macalester College):
  "Very hard to go back to a world in which you treat [federal funding] as certain. And so I think you're going to see universities looking for other sources of revenue..." (09:20)

Timestamps for Important Segments

• Job Market Update: 01:30–02:47
• India’s Surveillance App U-turn: 03:23–04:22
• Consumer Sentiment, Young Adults: 05:38–06:55
• University Research Monetization (Main Story): 07:07–10:10

Memorable Moments

• Highlighting Minnesota’s rapid growth in university spinouts:
  “The Techcom office backed a record 26 startups this past year... the ambition is eventually ramp up to 30, 40, 50 startups a year.” (09:57)

• Warning over funding volatility:
  “Very hard to go back to a world in which you treat [federal funding] as certain.” (09:20)

Conclusion

This episode delivers a succinct and insightful look into how American universities are adapting to an era of declining federal research support. By nurturing technology transfer offices and startup ecosystems—not just in the elite, coastal schools but in heartland institutions like the University of Minnesota—universities are turning scholarly innovation into commercial success. The episode situates this trend within broader economic currents: a tightening jobs market, shifting consumer sentiments among the young, and the always interesting intersection of technology, regulation, and privacy on the world stage.