Government–University–Entrepreneur Model

by Cynthia Garde

System Dynamics Simulation v2.2 — Trust & Alignment Extension

Run until:
Speed:
Year
2026
Quarter
Q1
Steps
0
Target
2036
Ready

Trust Dynamics Reference — What Builds & Erodes Each Relationship

Trust U↔E (University ↔ Entrepreneur)
▲ Builds From
TTO Resources & Process Quality
Fairness Perception (existing trust + legitimacy)
Pilot Programs × Demonstration Effect
Peer Institution Influence
▼ Erodes From
Startup failures / dissolution rate
Low Process Transparency (opacity)
Trust U↔G (University ↔ Government)
▲ Builds From
Government Reporting Quality
Delivery Reliability (alignment + coherence)
Progress Reporting Quality
▼ Erodes From
Funding delivery failures
Policy Misalignment / incoherence
Trust E↔G (Entrepreneur ↔ Government)
▲ Builds From
Program Predictability (policy coherence)
Speed of Funding disbursement
Pilot Programs × Demonstration Effect
▼ Erodes From
Bureaucratic Friction / red tape
Funding delivery failures

Dynamics Over Time

Current Trust & Institutional Metrics

0.40
Trust U↔E
0.45
Trust U↔G
0.35
Trust E↔G
0.35
Legitimacy
0.30
Alignment
0.50
Transparency
0.45
Coherence
0.35
Demo Effect
0.45
Perc. Risk

Pipeline Stocks

R&D Knowledge
50.0units
—
Prospective Tech
30.0units
—
Disclosures
20.0units
—
Patents
40.0patents
—
Licenses
15.0licenses
—
Startups
10.0cos
—
Risk Capital
60.0$M
—
Experience
0.30idx
—

System Narrative

2026 Q1 — Simulation initialized. System poised for growth with proper policy support, or decline if neglected. Adjust levers and set your target year to explore scenarios.

Variable Glossary — Click to Expand

▼
Trust Variables (0-1 scale)
Trust U↔E (University-Entrepreneur)
Mutual confidence between researchers/faculty and entrepreneurs/startups. Affects disclosure rates, licensing success, and willingness to engage in commercialization activities.
Trust U↔G (University-Government)
Confidence between universities and government funding agencies. Influences effectiveness of R&D funding and reporting relationships.
Trust E↔G (Entrepreneur-Government)
Confidence between startups/entrepreneurs and government programs. Affects VC attraction, startup funding effectiveness, and program participation.
Institutional Variables (0-1 scale)
Commercialization Legitimacy
Cultural acceptance of commercialization as a valid academic pursuit. Higher values mean faculty see industry engagement as compatible with scholarly mission.
Alignment Capacity
Degree to which government, university, and entrepreneur incentives and processes are coordinated. Bridges trust to operational effectiveness.
Process Transparency
Visibility and clarity of TTO processes, IP policies, and decision-making. Reduces uncertainty and builds trust when high.
Policy Coherence
Consistency and predictability of government programs and policies over time. Erodes with funding volatility and leadership churn.
Demonstration Effect
Visibility of success stories that prove the system works. Built through pilot programs, peer influence, and progress reporting. Critical for cultural change.
Perceived Risk
Researchers' perception of career and reputational risk from commercialization. High values deter participation and increase startup failure rates.
Pipeline Stocks
R&D Knowledge
Accumulated research knowledge base. Generated by effective government funding, decays over time as knowledge becomes obsolete.
Prospective Technology
Technologies identified as having commercial potential but not yet evaluated. Flows from R&D knowledge through TTO assessment.
Invention Disclosures
Formal reports of potentially patentable inventions submitted to TTO. Rate depends heavily on trust and cultural legitimacy.
Patent Portfolio
Active patents owned by the university. Generated from disclosures, expires over patent life (12 years).
Pipeline Stocks (continued)
Licensed Technologies
Patents that have been licensed to companies or startups. Depends on corporate interest, trust, and alignment.
Startups
Active university-affiliated startup companies. Formed from licensed technologies when entrepreneurial interest and capital are available.
Risk Capital
Available venture and government funding for startups. Inflows from VC (affected by E↔G trust) and government startup funding.
Entrepreneurial Experience
Accumulated expertise in the ecosystem from startup formation and exits. Improves future entrepreneurial interest and success rates.
Policy Levers
Gov R&D Funding
Government investment in university research. Effectiveness multiplied by U↔G trust and alignment capacity.
Gov Startup Funding
Direct government funding for university startups. Effectiveness depends on E↔G trust and policy coherence.
TTO Resources
Staffing and budget for Technology Transfer Office. Affects process quality, transparency, and evaluation effectiveness.
Publication Priority
Emphasis on academic publication over commercialization. Higher values reduce disclosure rates but may be required for academic culture.
Trust & Culture Levers
Pilot Program Investment
Resources dedicated to demonstrating success within the institution. Creates visible proof that commercialization pathways work.
Progress Reporting Quality
Quality of communication about commercialization progress to stakeholders. Builds transparency and U↔G trust.
Peer Institution Influence
The "MIT effect" — learning from peer universities' success. Amplifies trust building across all relationships.
Continuing Education
Ongoing training in commercialization practices. Sustains cultural change and slows decay of demonstration effect.