The Georgia Tech Research Corporation (GTRC) is a state chartered 501(c)(3) not-for-profit corporation serving Georgia Tech. GTRC serves as the contracting entity for all sponsored research activities at Georgia Tech. It also licenses all intellectual property (patents, software, trade secrets, etc.) created at Georgia Tech.
GTRC supports and promotes research through its stewardship of the funds for sponsored research and financial support of research activities. Through technology transfer, GTRC enables the institute to maintain strong partnerships with public and private sectors to assure the benefits of discovery are widely disseminated.
All funds collected by GTRC are used to support various Georgia Tech programs requested by the Institute and as approved by the GTRC Board of Trustees. In addition to paying for sponsored research costs, license and royalty fees, and all corporate operating expenses, GTRC supports Georgia Tech's grants and funded support programs. Additionally, GTRC assists Georgia Tech in obtaining quality research space, enters into long-term leases for specialized research equipment, and conducts other research support programs as requested by the Institute.
History of GTRC
The Georgia Tech Research Corporation (GTRC) was chartered on April 13, 1937, as the Industrial Development council, a state chartered not-for-profit corporation serving Georgia Tech as a University System of Georgia-approved cooperative organization. The stated objective was to “stimulate industrial development, to promote the fullest utilization of natural resources, and to foster research invention and discovery so as to provide a constantly improving technique in that behalf.” The founders were Preston S. Arkwright, Fuller E. Callaway, Jr., and Monie A. Ferst. In 1946 the name was changed to the Georgia Tech Research Institute, and in 1984 to the Georgia Tech Research Corporation.
Since 1946, GTRC has served as a “university-connected research foundation,” one of approximately one hundred located at state universities throughout the country. These foundations are organized primarily to permit their host universities to operate research programs by minimizing the impact of restrictive state contracting and financial procedures.
The natures of these foundations vary as the state environments to which their host universities are subject vary. Some are “full service” foundations performing contracting, financial, personnel, purchasing, accounting, and other functions. Others have a narrow range of functions including only those which are difficult or impossible for the university itself to handle.
GTRC falls into the latter category, and its functions are almost all financial. GTRC contracts and is paid for the research done at Georgia Tech, paying Georgia Tech for all direct costs and 78.3% of the overhead. The 21.7% of the overhead retained by GTRC are used to establish reserves for the research program, and to pay certain expenses which Georgia Tech cannot pay. Administrative expenses of GTRC are included in the approved overhead, so a portion of the 21.7% is reimbursement for those expenses. Appropriations are made to Georgia Tech from reserves, as requested by the Georgia Tech Administration and approved by the Board of Trustees of the Corporation.
The basis of the Georgia Tech-GTRC relationship is the 1953 agreement between the Regents of the University System and the Board of Trustees of GTRC. That agreement established the 78.3%-21.7% overhead allocation, among other things.