Harvard Inc.?

Gold in those test tubes

In university laboratories across the U.S., scientists are manipulating genes to create new forms of life: tiny bacteria that might be able to clean up toxic chemical wastes or produce anticancer agents on a grand scale. The potential profits from this work are so enormous that many researchers have set up companies like the highly touted Genentech. Now the schools themselves are looking for test-tube gold. In what would be an unprecedented step, Harvard University is considering starting a genetic-engineering firm to cash in on its scientists' breakthroughs. President Derek Bok has called for faculty comment on the idea, and the final decision is expected this month.

Critics immediately contended that such a move would compromise academic ideals. They argued that the free exchange of information among scientists could be blocked by the hoarding of trade secrets and that professors performing experiments with a market potential would receive the most research money and promotions.

Harvard General Counsel Daniel Steiner was ready with responses to the protests. He said that the university would be a minority shareholder in the new firm and that most if not all of the seed money would come from private venture capital concerns. Harvard would not manage the company, and its scientists would be consultants, not employees, of the firm. Finally, the laboratories would be located off campus.

With the cost of everything from dormitory heating to dining hall food soaring, many cash-starved colleges will be watching Harvard's actions closely. Says Vice Provost Gerald Lieberman of Stanford, where informal discussions about entering the gene business are also under way: "We all have very serious financial problems, and we must explore all avenues if we are to continue."

This file is automatically generated by a robot program, so viewer discretion is required.