Standford Gets $100 m from Exxon Mobile

Standford had cut a deal with Exxon Mobil for running a collaborative research facility.  The deal with worth $100 m over 10 years.  Many other universities are doing similar deals and it is not limited to technology research.  A well known Midwest University has cut a deal with a hotel chain to investigate hotel management efficiencies.  In many of these deals a university builds two or three new buildings and none contain a single classroom;  they are research factories.  The potential conflicts are obvious -- does the private sponsor have power over who uses the new facilities and what they do.  In other words, does the private sponsor have control over university personnel.  The university says no -- reminds me of denials involving student athletes and big time football programs.  But a larger problem perhaps is whose ox is getting gored.  Private companies are doing this to save money on internal research.  Who is paying for the savings?  The university's other constituencies, of course, which include tuition paying students (in a variety of ways other than cash, including access to well known professors), tax paying citizens that grant universities tax free status, and alumni that give deductible money to their alma mater.  The private companies are getting a deal based on contributions from students and tax districts and alumni.  A serious question is whether these other constituencies know of the cross-subsidy.  Is it in student prochures and alumni development literature.  Of course not.