Revenue generation from royalties has long been the dominant metric for measuring economic success from licensing results. For many Technology Transfer Offices (TTOs), counting the number and value of deals remains the easiest measurement of success. While useful for justifying institutional investment in IP patenting, this focus has also influenced the types of results that are prioritised, the partners that are sought, and the deals that are pursued.
This model works well for high-value STEM innovations that fit within patent-focused frameworks. But it often overlooks outputs from other disciplines, particularly the Arts, Humanities and Social Sciences (AHSS). And the exclusive focus on economic value can exclude results with significant potential for social or environmental benefit.
As research policy continues to evolve and demonstrating economic and social impact become more important the question of how we measure success from licensing is being asked more frequently.
A broader view of what matters
Licensing outputs from research is no longer being perceived as just an exercise in generating commercial value for licensor and licensee. Increasingly, it is seen as a route to achieving societal outcomes and impact. However, capturing the impact from licensing activity that is not for economic benefits is challenging; it requires a strong focus on qualitative capture rather than quantitative financial metrics.
For institutions trying to assess the impact of their licensing activities, the shift towards demonstrating economic and social benefits and impact presents a challenge. Qualitative impact is hard to capture, although some countries have now introduced it. And without a common framework and indicators, it becomes difficult to benchmark or compare the success of a Research Performing Organisation (RPO) and TTO. As a result, licensing for social impact is not being well recognised, rewarded or incentivised in Europe.
Towards shared indicators of success
The need for an approach that drives and captures both economic and societal impact emerged clearly through IMPAC3T-IP's scenario-based work. Many results with societal impact are not being licensed because the economic case cannot be made for investing the time needed to find a viable, sustainable business model for their transfer and there is no benefit to the TTO or PRO from securing societal impact because this is not reflected in the current metrics system.
Why this matters now
As the emphasis from policy makers on the importance of societal impact increases it is critical that this becomes reflected in associated metrics systems. It will also be important that TTOs and researchers are supported in capturing qualitative indicators e.g. through case studies that demonstrate both the size and significance of a licensing agreement.
The goal is not to replace financial metrics entirely, but to complement them. A broader set of indicators will make it easier to justify and sustain licensing activity that may not be immediately profitable but has strategic, social or reputational value.
Get involved
The upcoming IMPAC3T-IP toolbox and training programme will support stakeholders to realise wider impact from research and generate both economic and societal benefits– across all three of the project’s scenarios (Classical Plus, Crisis, Co-creation).
- Visit the IMPAC3T-IP website to learn more and explore current resources
- Subscribe to the newsletter to be notified when the toolbox and training course go live (December 2025)
- Meet the team at the ASTP Annual Conference 2026 in Bucharest, where these issues will be discussed in more detail and the toolbox and training presented.