Office of Business Development, UC Merced, California, USA

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University-based entrepreneurship support center providing startup incubation, technology commercialization, and business development services to faculty, students, and community entrepreneurs in California's underserved Central Valley regi
What are the main aims and objectives?

The primary mission of the Office of Business Development is to liberate innovation by connecting UC Merced's research and intellectual property to entrepreneurship, enabling commercialization of innovations developed by faculty, students, and community partners. More specifically, the Office aims to help startups commercialize science and technology developed on campus; to provide startup incubation, mentorship, and business development support to university-affiliated entrepreneurs; to connect UC Merced faculty, students, and alumni with business partners to commercialize innovations, develop new research, and start new ventures; to strengthen and diversify the economy of the Central Valley region; to combat "brain drain" by creating economic opportunities enabling talented graduates to build careers in the Central Valley rather than relocating to coastal tech hubs; to support high-growth, technology-centric entrepreneurship and stimulate innovation; to increase access to capital for entrepreneurs; to advance research commercialization processes; and to foster inclusive and equitable access to entrepreneurship support and business development services across diverse communities in the Central Valley.

How does the program work?

The Office of Business Development from the University of Merced is meant as an alternative to more conventional Tech. 

Instead of focusing principally on a licensing model (whereby the university licenses patented technologies developed in the university), the OBD focuses on industry outreach and new venture development. Their main is the relationships and the investments that the office is gaining for the development of R&D in the university and staff/alumni businesses. To complement this, Merced receives funding from the regional area to support new ventures and provide entrepreneurial education and mentorship.

The Office of Business Development operates through multiple integrated components providing comprehensive entrepreneurship support services:

Venture Lab:

The Venture Lab, UC Merced's main hub for innovation and entrepreneurship, operates as the central physical location and program structure providing startup incubation, mentoring, networking, and business development support. Initially housed in a 3,000-square-foot downtown Merced storefront, the Venture Lab provides entrepreneurs with workspace, facilities, and community for developing ventures. The Lab has expanded to include satellite locations in Modesto and Atwater, extending Central Valley coverage.

NSF Innovation Corps (I-Corps) Site Program:

UC Merced's Office operates an NSF I-Corps Site program funded by $400,000 five-year NSF grant, providing specialized support for STEM-driven ventures. I-Corps connects entrepreneurial leads (anyone affiliated with UC Merced except faculty) with academic leads (researchers with academic appointments and NSF funding eligibility) and business leads (entrepreneurs with technology commercialization experience). The program provides Idea Grants ($1,000) and Member Grants ($1,000-$3,000).

Innovation + Design Hub:

The Innovation + Design Hub provides entrepreneurship education, mentoring, and networking services to UC Merced students, faculty, and community entrepreneurs. The Hub offers speaker series, educational workshops on entrepreneurship and innovation, one-on-one mentor meetings through the StartupTree platform, dedicated workspace for collaboration, and opportunities for competitions.

Small Business Development Center (SBDC):

The UC Merced SBDC (now merged into Monarch SBDC serving multiple counties) provides no-cost business advising, training, market research, and access to capital services to entrepreneurs and small business owners. Services include business plan development, marketing and sales advice, social media, e-commerce, funding assistance, government contracting support, and manufacturing business guidance.

Technology Commercialization Support:

The Office facilitates invention disclosure processes, assists with patent filings and intellectual property protection, and arranges networking opportunities between researchers and business/private equity communities for commercialization.

Startup Platform (StartupTree):

The StartupTree platform enables students, faculty, staff, and alumni to create accounts, discover co-founders, connect with mentors, apply for competitions, access funding support, and register for entrepreneurship events.

 

What is the overall cost?

Information not available.

How was it implemented?

UC Merced, founded in 2005 as the newest University of California campus, was explicitly established with mission to contribute to regional economic development in the economically disadvantaged Central Valley region. The university recognized that unlike other UC campuses located in or near major tech hubs, UC Merced was positioned uniquely to drive innovation and entrepreneurship in underserved Central Valley region.

The Venture Lab was formally launched as UC Merced's main hub for innovation and entrepreneurship, initially occupying 3,000-square-foot downtown Merced storefront space. The Lab was established with recognition that university research and intellectual property needed direct connection to entrepreneurship and commercialization mechanisms to generate economic impact beyond traditional academic publishing and licensing.

In 2017, UC Merced was selected as an NSF Innovation Corps Site, joining six other UC campuses and approximately 70 universities nationally with I-Corps sites. This designation provided $400,000 five-year NSF grant funding and positioned the Office of Business Development to provide specialized support for STEM-driven entrepreneurship.

The Office of Technology, Innovation, and Industry Relations (OTIIR) was formally established to centralize and coordinate technology commercialization, industry partnerships, and entrepreneurship support services. This organizational structure codified the integration of business development services within broader university economic development mission.

The Innovation + Design Hub was established as dedicated entrepreneurship education and community space within Arts and Computational Sciences Building (Room 140), providing workshop space, mentoring services, and entrepreneurship programming.

In 2020, UC Merced received $2.2 million state funding enabling Venture Lab expansion and opening satellite locations in Modesto and Atwater, extending entrepreneurship support infrastructure throughout San Joaquin Valley region.

In November 2024, UC Merced joined Community Foundation of Merced County, Merced College, and The Reservoir in launching Merced AgTech Alliance with $9.2 million state investment, establishing UC Merced AgTech Barn for advanced research, collaborative R&D, and skills training for agricultural technology entrepreneurs.

What impact has been measured?

The Central California SBDC Network (including UC Merced SBDC) reported creating over 800 new local jobs and launching 264 new ventures in 2024 while unlocking nearly $60 million in capital investment.

What lessons can be learned?
  • University-based entrepreneurship support serves underserved regions: UC Merced's intentional focus on Central Valley entrepreneurship support demonstrates that research universities located in economically disadvantaged regions can catalyze entrepreneurship and innovation, creating economic opportunity that private venture capital markets alone would not provide.
  • Brain drain mitigation requires integrated entrepreneurship infrastructure: The Office's multi-component approach (Venture Lab, I-Corps, SBDC, mentoring, funding) addresses diverse entrepreneur needs and creates comprehensive infrastructure enabling graduates to build careers locally rather than relocating, suggesting that brain drain mitigation requires coordinated ecosystem-building.
  • State-funded expansion enables geographic accessibility: The $2.2 million state funding for Venture Lab expansion to Modesto and Atwater satellite locations demonstrates that deliberate public investment in distributed entrepreneurship infrastructure overcomes geographic barriers to entrepreneurship support access.
  • NSF funding validates technology commercialization as national priority: UC Merced's NSF I-Corps Site designation demonstrates federal recognition that university research commercialization requires deliberate support mechanisms, and provides funding model for technology-focused entrepreneurship support.
  • Multi-service approach serves diverse entrepreneur needs: The Office's integration of Venture Lab (startup incubation), SBDC (small business advising), I-Corps (technology commercialization), mentoring, and networking services suggests comprehensive entrepreneurship support requires addressing diverse needs rather than single-service models.
  • Physical space importance for entrepreneurship community: The Venture Lab's housing in 3,000-square-foot downtown Merced location demonstrates that dedicated physical space facilitates community-building, collaboration, and serendipitous connections that remote-only services cannot replicate.
  • University research focus enables technology-driven entrepreneurship: UC Merced's research strengths in agriculture, water, and energy provide foundation for technology-driven entrepreneurship support and commercialization opportunities.
  • Limited published comprehensive evaluation constrains optimization: The absence of published comprehensive impact evaluation documenting aggregate outcomes, business survival rates, employment creation, and comparative effectiveness across Office services limits evidence-based program improvement.
  • Regional ecosystem partnerships amplify impact: The Office's partnerships with Merced College, Community Foundation of Merced County, The Reservoir, and Founder Institute demonstrate that collaborative multi-institutional approaches amplify entrepreneurship support reach and resources.
  • Specialized tracks enable targeted support: The development of specialized programs (NSF I-Corps for STEM technology, AgTech Alliance for regenerative agriculture) demonstrates targeted support addressing specific sectors enables more relevant entrepreneurship support.
  • Lesson on persistence through institutional evolution: The Office's sustained commitment to entrepreneurship support despite UC Merced's relative newness (founded 2005) and location in economically challenged region demonstrates that entrepreneurship support can take root in underserved regions with institutional leadership maintaining sustained commitment.
Notes + Additional Context

Excerpt from Nesta's ‘Idea Bank’ for Local Policymakers:

The city of Merced in California, USA is a region that has been challenged by high unemployment – principally in the agricultural sector – coupled with low education levels. For this reason, when the University of Merced was established in 2005, a chief concern was in exploring ways for the institution to diversify the region’s economy and retain more skilled workers. Instead of an office of technology transfer, it was then decided to establish an Office of Business Development that would play a central role in socially and economically anchoring the university in the region, as well as to connect public and private actors.

For this purpose, the Office of Business Development took an approach less focused on the management of Intellectual Property Rights (IPR). Instead, it decided to play a brokering role by actively engaging in industry outreach (via the UC Merced Business Alliances programme) and maintaining close connections with the city government via the UC Merced Community and Economic Development Partners. Through these schemes, the university is currently playing a growing role in the social and economic development of the region.

Within the university, the Office of Business Development has been mainly concerned with entrepreneurial training and helping local startups grow and partner with public and private companies, rather than focusing on technology licensing. However, this has not prevented entrepreneurship: although UC Merced is still a relatively young university, it has already given birth to more than 8 startups.

CURATED BY

Simona Bielli

Research Programme Coordinator – Digital Startups
Nesta
United Kingdom