Free mental health care, local COVID-19 testing, and a new great to fund an ongoing study — here's your latest roundup of research news. Image via Getty Images

As Houston heads toward the end of summer with no major vaccine or treatment confirmed for COVID-19, local research institutions are still hard at work on various coronavirus-focused innovations.

Free mental health care, local COVID-19 testing, and a new great to fund an ongoing study — here's your latest roundup of research news.

Baylor College of Medicine genomics team to partner for local COVID-19 testing

Houston millionaire to start biotech accelerator for companies focusing on regenerative medicine

Two departments at BCM are working with the county on COVID-19 testing. Getty Images

Two Baylor College of Medicine institutions have teamed up to aid in local COVID-19 testing. The Human Genome Sequencing Center and the Alkek Center for Metagenomics and Microbiome Research — under the leadership of BCM — are partnering with local public health departments to provide polymerase chain reaction testing of COVID-19 samples, according to a news release from BCM.

"We are pleased to work with the outstanding local government groups in this critical public health effort," says Dr. Richard Gibbs, director of the HGSC and Wofford Cain chair and professor of molecular and human genetics at Baylor, in the release. "We are proud of the tireless determination and expertise of our centers and college staff that enabled the rapid development of this robust testing capacity to serve the greater Houston community."

Baylor is among the testing providers for Harris County Public Health, and people can receive testing following a pre-screening questionnaire online.

"We are fortunate to have Baylor College of Medicine as a close partner during the COVID-19 pandemic," says Dr. Umair Shah, executive director of Harris County Public Health, in the release. "This is a challenging time for our community and as the need for increased testing capacity and getting results to residents faster has grown, Baylor has risen to the occasion. There are countless unsung heroes across Harris County who have stepped up to the plate during this pandemic and Baylor College of Medicine is one of them."

COVID-19 testing samples are collected from testing sites and delivered to the Alkek Center. After isolating the virus, genomic material is extracted and sent to the HGSC to quantitative reverse transcription PCR testing. Should the sample's RNA sequence match the virus, then it is positive for COVID-19. The sequencing must test positive three times to be considered overall positive.

Results are returned within 48 hours, and the lab has a capacity of more than 1,000 samples a day. Since May, the team has tested over 30,000 samples.

"We knew we had all the pieces to stand up a testing center fast – large scale clinical sequencing, experts in virology and molecular biology, and a secure way to return results to patients," says Ginger Metcalf, Human Genome Sequencing Center Director of Project Development, in the release. "We are also fortunate to have such great partners at Harris County Public Health, who have done an amazing job of gathering, tracking and delivering samples, especially for the most at-risk members of our community."

National Science Foundation renews Rice University funding amid pandemic

José Onuchic (left) and Peter Wolynes are co-directors of the Center for Theoretical Biological Physics at Rice University. Photo by Jeff Fitlow/Rice University

Rice University's Center for Theoretical Biological Physics has been granted a five-year extension from the National Science Foundation. The grant for $12.9 million will aid in continuing the CTBP's work at the intersection of biology and physics.

The center — which was founded in 2001 at the University of California, San Diego, before moving to Rice in 2011 — is led by Peter Wolynes and José Onuchic.

"We have four major areas at the center," Onuchic says in a news release. "The first is in chromatin theory and modeling, developing the underlying mathematical theory to explain the nucleus of the cell — what Peter calls the 'new nuclear physics.' The second is to test ideas based on the data being created by experimentalists. The third is to understand information processing by gene networks in general, with some applications related to metabolism in cancer. The fourth is to study the cytoskeleton and molecular motors. And the synergy between all of these areas is very important."

Onuchic adds that an upcoming donation of a supercomputer by AMD will help the center's ongoing research into COVID-19 and four institutions — Rice, Northeastern, Baylor College of Medicine and the University of Houston — are working collaboratively on the study,

"We're all set to move on doing major COVID-related molecular simulations on day one," he says in the release. "The full functioning of a center requires a synergy of participation. Rice is the main player with people from multiple departments, but Baylor, Northeastern and Houston play critical roles."

University of Houston offers free mental health therapy for restaurant workers

Texas restaurant workers can get free mental health care from a UH initiative. Photo via Elle Hughes/Pexels

Through a collaboration with Southern Smoke and Mental Health America of Greater Houston, the University of Houston Clinical Psychology program launched a a free mental health care program for Texas-based food and beverage employees and their children.

"During normal times this is a high stress industry where people work very hard in environments where they are just blowing and going all the time," says John P. Vincent, professor of psychology and director of the UH Center for Forensic Psychology, in a news release.

The program has 14 graduate students who converse with a total of 30 patients and meet weekly with supervisors at UH.

"This opportunity allows our clinical program to reach people in the community who usually don't have access to mental health services," says Carla Sharp, professor of psychology and director of clinical training, in the release.

For restaurant industry workers looking for help and care, they can visit the Mental Health Services page on Southern Smoke's website.

According to Vincent, this is just the beginning.

"We're discussing it," says Vincent in the release. "But as far as I'm concerned it can just keep going and going."

The Welch Foundation, led by Adam Kuspa, funds basic research across the state of Texas — research that's important both in and out of pandemic. Photo courtesy of The Welch Foundation

Houston-based nonprofit leader believes COVID-19 will have long-term effects on important research

Q&A

It's Adam Kuspa's job to provide support to Texas researchers as they attempt to create innovative chemical and biochemical solutions for the betterment of mankind.

Formerly the dean of research at Baylor College of Medicine, Kuspa now serves as president of Houston-based Welch Foundation, which has, over the past several decades, provided nearly $800 million in research funding across the state.

Kuspa, through the organization, regularly sees revolutionary chemical discoveries being innovated in Texas across the 60 institutions he works with. It's usually an exciting job.

"I've spent my career, at least the last 15 years or so, helping other people do their research — before as being in research at Baylor College of Medicine," Kuspa tells InnovationMap. "I really enjoy enabling very, very smart people to do creative, innovative science. It's a lot of fun."

However, as the race to find a cure and vaccine to COVID-19 heats up, Kuspa — along with other researchers and scientists — is watching carefully to see how the disease and its to-be solutions will affect research and medical innovations as a whole.

"What people forget in the rush to get a drug out is that you could also make matters worse," he says. "Drugs don't automatically cure or are neutral. They can also do harm. So, you want to be careful not to make the situation worse."

Kuspa sat down with InnovationMap to discuss The Welch Foundation's mission, as well as some of his observations on potential cures for COVID-19 and what concerns he has.

InnovationMap: Tell me about the Welch Foundation and what role it plays in Texas?

Adam Kuspa: For over 65 years, the Welch Foundation has pursued its mandate based on Robert Welch's thought from the 1950s that chemistry was very important to the improvement of mankind. And so, our mandate is to fund foundational research in chemistry in the state of Texas, working through academic institutions throughout the state. We've done that consistently for the past 65 years through several programs.

IM: What type of research does the foundation fund usually?

AK: The research grant program gives grants to individual investigators, and we're doing about 300 to 400 continuously throughout the state of Texas. There's also block grants to departments to encourage students to become involved in chemical research. And we have other programs such as our endowed chair programs. We've given out about 40 endowed professorships, which support specific professors at individual institutions and their chemical research.

I should point out that chemistry research from our perspective is broadly defined and includes biochemistry of material sciences, et cetera. Currently our grant portfolio consists of 50 percent biomedical research grants, which is relevant to current current situation with COVID-19.

IM: How do you connect to Texas research institutions usually?

AK: We have fairly typical calls for applications for research grants or departmental grants and for our two award programs: the Welch Award in Chemistry, which is given out every year in Houston, and the Norman Hackerman Award, for junior faculty researchers in state of Texas.

A lot of the work is going out in the community to visit with the researchers and our academic institution partners. That, of course, has been curtailed, but typically we would visit any one of the 60 or so institutions that we support on a cycle of several years. So, that involves going to the chemistry departments, speaking with faculty, hearing how the research is going, and getting feedback on how our programs can be improved.

We also have an annual research conference, which unfortunately has been canceled this year, but typically draws 200 to 800 participants from around the state with speakers coming in around the world. This year, it was meant to be on neuroscience. Last October, the conference concerned genome editing. So, it's quite exciting, and the conferences, which are always held in Houston, are generally very well attended. They are a good way to start to interact with the scientific community in general.

IM: What has been the organization’s focus during the pandemic?

AK: We are obligated to fund foundational research in chemistry and allied fields, like biochemistry. So, we're not at liberty to fund development of therapies, for instance. However, I would say an interesting way to look at this is that we hear a lot about a search for a therapeutic for COVID-19 and, obviously, a search for vaccine — these begin with research.

Since it normally takes 15 to 18 years to bring a drug to market from first principles of how you're going to interrupt the human biology to effecting a cure, you're hearing a lot about testing existing drugs or their potential therapeutic effect on COVID-19. The reason we're able to do that is because we have a lot of drugs that are in the process of being developed and drugs that are already approved for human use. It's a lot more efficient to try to look at the potential utility of those already human-approved drugs and their potential effect on viral replication.

So, we sort of view our role as the Welch Foundation as funding that foundational research — either in drug development from a chemical perspective or in funding foundational work in how viruses attack the human body in the first place. And, although we give out grants for basic research, our investigators are pretty industrious. When there's a situation like the COVID-19 pandemic, a number of them turned their attention towards the problem at hand.

Another way that we've supported the general availability of potential therapeutics is that we've made a large grant to The Center for Drug Discovery at the Baylor College of Medicine directed by Martin Matzuck. And the reason we were interested in helping to get that center started is because they had an idea to make a drug discovery and development much more efficient and cost effective. That promotes a general capability of Houston and Texas in terms of being able to bring about potential therapeutics to wide range of diseases, but potentially for COVID-19 specifically.

IM: What’s the usual process of getting a drug from research stage to use?

AK: There are four phases of testing. Phase one is for safety, phase two is for dosing and potential efficacy, and phase three is for broad range of efficacy — large numbers of patients and trials that take hundreds of millions of dollars to perform. Approval by FDA occurs after phase three, but then there's actually a phase four study, which is following the drug for potential adverse effects once it is in common use by the public.

You may remember there's a drug called Vioxx — it's a very good pain reliever. But, in the phase four study, after millions of prescriptions were written already, it was found to cause rare heart problems and heart attacks. People were dying spontaneously, and it was hard to pin that specifically on Vioxx, but you can do it statistically from the phase four trial after the drug was introduced.

So, the reason you hear about hydroxychloroquine as a treatment for COVID-19 is because you sort of get the short circuit and skip those phases and jump right to phase four studies where you know it's basically safe and you roughly know how to dose. But what you don't though is how that approved drug can be used for particular indications like COVID-19 and how safe it is.

You can't actually jump the normal 18-year process, and with existing drugs you're still only at year 15, where you're got another few years to figure out how to actually use them in the context of the COVID-19.

IM: Scientists and researchers are working on solutions, but what are the challenges they are facing?

AK: That's a great question. Given that we have so many research grants around the state, we get input literally on an hourly basis from our grantees on the status of their research because of the interruption. And the short story is that all research has been shut down in the state of Texas except for research directly related to coronavirus.

Large biomedical research centers, which have hundreds of millions of dollars a year in external research funding going to cure a broad range of disease have shut all of their labs down, except for the few labs that are working directly on COVID-19. That includes vaccine discovery and production.

A lot of work has been wasted because often biological experiments take weeks and months of progression, and if can't complete the final steps, you'll have to start over.

IM: Do you think this will have a long-term effect on research?

AK: I think so. Science, as it turns out, is a very creative, human-interactive activity. It's actually much more social than people realize. It's not the individual scientist working at the lab bench only. It's a lot of travel, seminars given by out-of-town speakers, scientific conferences, gatherings of hundreds of people.

The annual neuroscience conference attracts 40,000 people every year from all over the world — and that's not happening. As far as we can tell, all scientific conferences have been canceled for the rest of 2020. When I talked to my colleagues and professors around the country, every out of town seminar has been canceled. So, the exchange of information that's been so vital to stimulate creativity and collaboration between laboratories isn't happening, and there are new venues have to be found to do that online. But there is going to be a limitation. I think people are adapting, and we'll just have to see how it unfolds.

The published literature is one to one-and-a-half years behind what's actually happening in the laboratory. So, the way people learn about what's going on — the failed experiments, the things you're trying out, the exciting new ideas — is generally through face-to-face interactions. And that happens by scientists traveling between universities and at conferences in the hallways between the formal sessions. That aspect is absolutely vital to the progress of science.

IM: What is something you want people to know about the basic research that the Welch Foundation is funding?

We need consistency and support for basic research because, during a pandemic, we want to have a cure, but we don't think about the hundreds of thousands of scientists across the country who are struggling to get funding for the basic research when there's not a pandemic.

Additionally, this basic research is also the engine for industry — particularly the biotech industry in Houston, and folks have been really working hard to try to ensure that there's an ecosystem for new companies to be formed out of Houston. I think part of the reason why we might survive this current oil glut as opposed to the mid 1980s is that the Houston economy is diversified with — not just with the port and NASA — but with biomedical research and patient care. In Houston, health care is the largest employer — it's larger than oil and gas. That kind of diversification is good for the economy and good for the innovation environment that people in Houston have tried really to make happen for the last 10 years or so.

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This conversation has been edited for clarity.

These four medical research projects are ones to watch in Houston. Getty Images

These are 4 medical innovations coming out of Houston institutions

Research roundup

Houston — home to one of the largest medical centers in the world — isn't a stranger when it comes to medical innovations and breakthrough research discoveries.

In the latest roundup of research innovations, four Houston institutions are working on innovative and — in some cases — life-saving research projects.

Houston Methodist study observes that strep throat germ is becoming resistant to antibiotics 

If the germ, group A streptococcus, continues to grow resistant to antibiotics, it can have a profoundly negative affect on the millions who get the illness annually. Photo via houstonmethodist.org

Researchers at Houston Methodist have discovered some troubling information about the strains of group A streptococcus that cause strep throat and a flesh-eating disease are becoming more resistant to beta-lactams antibiotics like penicillin.

James M. Musser is the lead author of the study and chair of Methodist's Department of Pathology and Genomic Medicine. The study — which received funding from grants from the Fondren Foundation, Houston Methodist Hospital and Houston Methodist Research Institute, and the National Institutes of Health — appeared in the Jan. 29 issue of the Journal of Clinical Microbiology, according to a news release.

"If this germ becomes truly resistant to these antibiotics, it would have a very serious impact on millions of children around the world," Musser says in the release. "That is a very concerning but plausible notion based on our findings. Development of resistance to beta-lactam antibiotics would have a major public health impact globally."

Musser and his team found 7,025 group A streptococcus strains that have been recorded around the world over the past several decades. Of those strains, 2 percent had gene mutations that raised the alarm for the researchers and, upon investigation, Musser's team came to the conclusion that antibiotic treatments can eventually be less effective — or even completely ineffective. This, Musser says, calls for an urgent need to develop a vaccine.

"We could be looking at a worldwide public health infectious disease problem," says Musser in the release. "When strep throat doesn't respond to frontline antibiotics such as penicillin, physicians must start prescribing second-line therapies, which may not be as effective against this organism."

University of Houston professor is searching for a way to stop persistent cells that cause chronic infections

University of Houston Professor Mehmet Orman is looking into cells that are able to persist and cause chronic illnesses. Photo via uh.edu

Mehmet Orman, assistant professor of chemical and biomolecular engineering at the University of Houston, is looking into a specific type of persister cells that have been found to be stubborn and drug-resistant.

The research, which is backed by a $1.9 million grant from the National Institute of Allergy and Infectious Diseases, could answer questions about chronic health issues like airway infections in cystic fibrosis patients, urinary tract infections, and tuberculosis, according to a news release.

"If we know how persister cells are formed, we can target their formation mechanisms to eliminate these dangerous cell types," says Orman in a news release.

Orman is looking into cells' self-digestion, or autophagy, process that is found to stimulate persister formation. Per the release, cells can survive periods of starvation by eating their own elements. Specifically, Orman will analyze self-digestion in E. coli.

"By integrating our expertise in bacterial cell biology with advanced current technologies, we aim to decipher the key components of this pathway to provide a clear and much-needed picture of bacterial self-digestion mechanisms," says Orman in the release.

Baylor College of Medicine is working to understand and prevent post-op kidney failure

operation

Some patients are predisposed to kidney injury following surgery, this study found. Photo via bcm.edu

Scientists at Baylor College of Medicine are looking into the lead cause of kidney failure in patients who undergo surgery. Individuals who have heightened levels of suPAR protein — soluble urokinase-type plasminogen activator receptor — have a greater risk of this post-op complication, according to a news release.

"suPAR is a circulating protein that is released by inflammatory cells in the bone marrow and produced by a number of cell/organs in the body," says Dr. David Sheikh-Hamad, professor of medicine – nephrology at Baylor College of Medicine and collaborating author of the study, in the release.

The study, which was published in The New England Journal of Medicine, conducted research on mice that were engineered to hive high suPAR levels in their blood. Compared to the control mice, the suPAR mice had more risk of kidney industry. These mice were given suPAR-blocking antibodies, which then helped reduce kidney injury.

"This protective strategy may be used in humans expressing high suPAR levels prior to contrast exposure, or surgery to decrease the likelihood of developing kidney failure," Sheikh-Hamad says in the release.

Rice University research finds expressing emotions during mourning is healthier

Christopher Fagundes of Rice University analyzed the emotions of 99 widows and widowers. Jeff Fitlow/Rice University

A new study done by researchers at Rice University finds that spouses that lose their husband or wife and try to suppress their grief are not doing themselves any favors. The study monitored 99 people who had recently lost a spouse, according to a news release.

"There has been work focused on the link between emotion regulation and health after romantic breakups, which shows that distracting oneself from thoughts of the loss may be helpful," says Christopher Fagundes, an associate professor of psychology and the principal investigator, in a news release. "However, the death of a spouse is a very different experience because neither person initiated the separation or can attempt to repair the relationship."

The study included asking participants to respond to how they felt about certain coping strategies, as well as blood tests to measure cytokines levels‚ an inflammatory marker.

"Bodily inflammation is linked to a host of negative health conditions, including serious cardiovascular issues like stroke and heart attack," Fagundes says in the release.

The research, which was funded by a grant from the National Heart, Lung, and Blood Institute, found that the participants who avoided their emotions suffered more of this bodily inflammation.

"The research also suggests that not all coping strategies are created equal, and that some strategies can backfire and have harmful effects, especially in populations experiencing particularly intense emotions in the face of significant life stressors, such as losing a loved one," adss Richard Lopez, an assistant professor of psychology at Bard College and lead author of the study, in the release.

What's the latest in tech research in Houston? Here are three revolutionary research projects happening right under our noses. Getty Images

3 Houston tech research projects changing health care, blockchain, and beyond

Research roundup

Tons of research happens daily at various Houston institutions — from life-saving medical developments to high tech innovations that will affect the greater business community.

In this Houston research roundup, three research projects from three Houston organizations are set to revolutionize their respective industries.

University of Houston researcher explores potential disruption in blockchain

blockchain

Getty Images

A huge technology question mark within business has been blockchain — how it'll affect the sharing of information and industry as a whole. But, one University of Houston professor and his Texas A&M University colleagues are looking into that potential disruption in a recent paper.

"It's an emerging technology. It's evolving," says Weidong "Larry" Shi, associate professor of computer science at UH, in a UH news release.

Funded by the Borders, Trade, and Immigration Institute, the research has developed into the paper, which was published in the International Journal of Production Research.

A key focus of the research is how blockchain will affect cargo entering the United States, and identifies six pain points within adapting blockchain for cargo management: traceability, dispute resolution, cargo integrity and security, supply chain digitalization, compliance, and trust and stakeholder management, according to the release.

"The wide adoption of blockchain technology in the global SC (supply chain) market is still in its infancy," the article reads. "Industry experts project that on average, it may take about six years for the widespread adoption of blockchain."

Blockchain has the potential to prevent fraud within the global supply chain, among other things.

"The data can't be changed. Everyone (along the supply chain) has a copy. You can add information, but you can't change it," Shi says in the release.

The U.S. Army taps Rice University for network research

Photo by Jeff Fitlow/Rice University

Rice University and the U.S. Army have joined forces for a five-year, $30 million research agreement to modernize the Army — specifically for developing next-generation wireless networks and radio frequency (RF) electronics.

"[The Army Research Laboratory] and Rice will match the right people and capabilities to meet specific challenges, and the cooperative agreement is structured to allow the Army to partner widely across our campus," says Yousif Shamoo, Rice's vice president of research and lead on the ARL partnership, in a recent news release. "One exciting aspect of this partnership is the broader societal benefits. The technologies we're starting with are needed for Army modernization and they could also benefit millions of Americans in communities that still lack high-speed internet."

Without going into too much detail, the two entities are working to advance the Army's existing infrastructure to create networks that can sense attacks and protect themselves by adaption or stealth. The technology has the potential to affect the Army as well as civilians, says Heidi Maupin, the lead ARL contact for the Rice partnership.

"We want to deliver the capability of quickly deploying secure, robust Army communications networks wherever and whenever they're needed," Maupin says in the release. "The technology needed for that will benefit the world by transforming the economics of rural broadband, reducing response times to natural disasters, opening new opportunities for online education and more."

Research out of Baylor College of Medicine advancing information known about vision

Photo via bcm.edu

For humans, seeing is pretty simple — just open your eyes. But the process our eyes go through extremely complex, and scientists have had a hard time recreating the process — until now.

Researchers at Baylor College of Medicine in Houston and the University of Tübingen in Germany have developed a novel computational approach that accelerates the brain's ability to identify optimal stimuli. The complete study by the scientists was published in the journal Nature Neuroscience.

"We want to understand how vision works," says senior author Dr. Andreas Tolias, professor and Brown Foundation Endowed Chair of Neuroscience at Baylor. "We approached this study by developing an artificial neural network that predicts the neural activity produced when an animal looks at images. If we can build such an avatar of the visual system, we can perform essentially unlimited experiments on it. Then we can go back and test in real brains with a method we named 'inception loops."

To track neurons and how they work, the researchers tracked brain activity scanning thousands of images.

"Experimenting with these networks revealed some aspects of vision we didn't expect," says Tolias, founder and director of the Center for Neuroscience and Artificial Intelligence at Baylor, in a release. "For instance, we found that the optimal stimulus for some neurons in the early stages of processing in the neocortex were checkerboards, or sharp corners as opposed to simple edges which is what we would have expected according to the current dogma in the field."

The research is ongoing and will only continue to help dissect how the brain sees and interprets visual elements.

A new venture development company has expanded into Houston with a Texas Medical Center office. Photo by Dwight C. Andrews/Greater Houston Convention and Visitors Bureau

Exclusive: Out-of-state venture firm specializing in research-based startups expands into Houston

New to town

For an Arkansas-based technology venture development firm that focuses on research-based companies coming out of universities, the Lone Star State was a tempting spot for expansion.

VIC Technology Venture Development has appointed James Y. Lancaster as the Texas branch manager. Lancaster, who lives in College Station, will oversee business there, in Dallas, and in Houston. Locally, he will work out of a TMC Innovation Institute office.

"I am excited to be working to TMC member institutions to provide a new avenue for commercializing their technologies, expanding on our fast start in Texas with an exciting opportunity in the Houston innovation ecosystem," Lancaster says in a release.

VIC specializes in taking university-founded research innovations to the marketplace by partnering with technology and business experts at every stage of the process.

The company already has a presence in Dallas with Dr. Ralph Henry, who is an entrepreneur in residence at the University of Texas Southwestern Medical Center and also serves as VIC's vice president of life science and medical technology. VIC's first Texas portfolio company was Solenic Medical, which was brought on in February of this year.

According to the release, the company's presence in Houston might be similar to that of its arrangement in Dallas, focusing on leveraging the resources of the TMC.

"Our local presence will include new technology assessment and licensing, along with expanding our national investor network. Of course, the end goal is to have a string of startup company successes based on TMC inventions, as well as the potential to license technology from across the country into new companies located in Texas," Lancaster continues in the release.

Lancaster has over 25 years of experience across industries. Prior to VIC, he was the founder and managing director of the Innovate Family of Companies including Innovate CXO Services, Innovate Angel Funds, and Innovate BCS Development in College Station. He's also worked with and advised companies coming out of the Texas A&M University System for 12 years.

Family firms aren't investing in research and development — but why? Getty Images

Rice University research sheds light on what family office investors are looking for

Houston Voices

Family firms are publicly traded companies in which family members own at least 20 percent of the voting stock, and at least two board members belong to the family. For obvious reasons, the central principals in these firms tend to have a longer view than principals in non-family firms. Yet family firms invest less in research and development (R&D) in technology firms than their non-family counterparts. Since investments in R&D are stakes in the future, why this disparity?

Robert E. Hoskisson, a management professor at Rice Business, joined several colleagues to answer this question. Refining a sociological theory called the behavioral agency model (BAM), the researchers defined family-firm decisions as "mixed gambles" — that is, decisions that could result in either gains or losses.

Because success in high technology relies so much on innovation, it's especially puzzling when such a family owned business underinvests in R&D. So Hoskisson and his colleagues focused on the paradox of family firms in high tech.

According to previous research, family owners weigh both economic and non-economic factors when making business decisions. Hoskisson and his team labeled these non-economic factors socioemotional wealth (SEW). SEW can include family prestige through identifying with and controlling a business, emotional attachment to the firm or the legacy of a multigenerational link to the firm.

That intangible wealth (SEW) explained some of the families' R&D choices. While investment in R&D may lower future financial risk, it can threaten other resources the family holds dear. Expanded R&D spending, for instance, is linked with competitiveness. At the same time, it is associated with less family control. That's because to invest more in R&D, businesses typically need more external capital and expertise. So when a family firm underinvests in R&D, it may in fact be protecting its socioemotional wealth.

To further understand these dynamics, the researchers looked at three factors that they expected would raise families' R&D spending to levels more like non-family counterparts.

The first factor was corporate governance. As predicted, the researchers found that family firms with a higher percentage of institutional investors invested in R&D at levels more like those of non-family firms. The institutional investors naturally prioritized economic benefits far more than the founding family's legacy wealth (SEW).

The researchers also analyzed corporate strategy. Family firms, they found, invested more in R&D when it might be applied to related products or markets. Even families bent on preserving non-economic wealth could be lured by a big economic payoff, and related business are easier to control because they are closer to the family legacy business expertise.

Finally, Hoskisson and his colleagues looked at performance. When a family firm's performance lagged behind that of competitors, they reasoned, the owners would spend more on R&D. A higher percentage of institutional investors, the team theorized, would magnify this effect. Interestingly, the primary data (from 2004 to 2009) failed to support this hypothesis, while an alternative data set (from 1994 to 2002) confirmed it.

Further research, the investigators wrote, could shed useful light on this puzzle. They also encouraged study of how family firms conduct mergers and acquisitions. After all, while families can seem inscrutable from the outside, most run on some kind of economic system. The currency just includes more than money.

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This story originally ran on Rice Business Wisdom.

Robert E. Hoskisson is the George R. Brown Emeritus Professor of Management at Jones Graduate School of Business at Rice University.

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Houston's fund of funds announces 2 new investments

money moves

The HX Venture Fund, which invests in out-of-town venture capital funds that have their eyes on Houston startups, has grown its portfolio.

The fund of funds now has a portfolio of 10 VCs from across the country, across industries, and across startup stages. According to a recent announcement, the HX Venture Fund has invested in New York-based Greycroft Venture Partners and Washington D.C.-based Revolution Ventures. The announcement also included Boston-based Material Impact and San Francisco-based venBio Global Strategic Fund, however those had been previously reported by InnovationMap.

"We are delighted to partner with the general partners of Greycroft Venture Partners, Material Impact, Revolution Ventures, and venBio Global Strategic Fund," says Sandy Guitar, managing director of HX Venture Fund, in the release. "With their proven expertise and exceptional track records, we are excited to integrate them into Houston networks and not only give them access to the Fund's innovative corporate limited partners, but also harness their knowledge to empower Houston entrepreneurs."

These four VC funds join six others that HXVF has invested in: Austin-based LiveOak Venture Partners and Next Coast Ventures, Washington D.C.-based Updata Partners, Chicago-based Baird Capital, and Boston-based .406 Ventures and OpenView Venture Partners.

"The receptivity of the HX Venture Fund model has exceeded all our expectations. Since early 2019, over 217 venture capital funds across the U.S. have expressed definitive interest in participating in our model," says Guillermo Borda, managing director of HX Venture Fund, in the release.

"It is especially noteworthy that collectively, the ten funds selected for HX Venture Fund's portfolio have $3.7 billion in committed capital in their funds to be invested with Houston on their investment radar," Borda adds. "This is at a time that provides compelling investment opportunities in the economic cycle. This is an exciting time for Houston entrepreneurs and our innovation ecosystem."

Guitar previously told InnovationMap that she's looking to curate a portfolio of VCs that is diverse in industries and stage. Additionally, before investing in a VC, the HX Venture Fund looks for an interest in investing into Houston startups. The hope is that, while not required, the HXVF portfolio funds invest in a Houston startup down the road. Earlier this year, Houston-based Liongard became the fund of funds' first example of that.

"The innovation and talent in Houston are best-in-class; we want to be investing there," says Tige Savage, managing partner at Revolution Ventures, in the release.

Rice University rises to top of Texas schools in prestigious U.S. News & World Report ranking

Head of class

Rice University continues to rise in national surveys. The latest: U.S. News & World Report's 2021 Best Colleges, released September 14, anoints Rice as the best university in Texas. The prestigious Houston school — dubbed the "Ivy League of the South" — ranks No. 16 among national universities, up one spot from last year.

This is in step with last year's U.S. News & World Report's Best Colleges list, which also named Rice the best university in Texas.

The trusted report compared more than 1,400 undergraduate institutions across 17 measures of "academic quality" this year. Acknowledging the ongoing impact of the coronavirus pandemic on students and schools, the publication made several updates to its methodology, notes a release.

For 2021, U.S. News added two new metrics to measure student debt. It also increased the weight of the outcome category, which measures graduation rates, retention rates, and social mobility, and reduced the weights for standardized test scores, high school class standing, and alumni giving. And, for the very first time, the report ranks test-blind schools (those that don't require an SAT or ACT score for admission).

"The pandemic has affected students across the country, canceling commencement ceremonies and switching classes from in person to remote," said Kim Castro, editor and chief content officer, in a release. "Whether students have slightly altered their college plans or changed them entirely, it remains our mission to continue providing students and their families with the tools they need to help find the right school for them."

Now, on to the rankings. Here's how Rice scores in the prestigious report:

  • No. 6 in Best Undergraduate Teaching
  • No. 8 in Best Value Schools
  • No. 18 in Most Innovative Schools (tie)
  • No. 224 in Top Performers on Social Mobility (tie)
  • No. 19 in Best Undergraduate Engineering Programs (tie)

For 2021, the University of Texas at Austin ranks No. 42 nationally, up a significant six spots from 2020. It's also the school's highest ranking on the report since 1985, touts a news release from the university. Among the country's public universities, UT Austin climbed four spots from the previous year, landing at No. 13.

As for Texas' other top schools, Southern Methodist University and Texas A&M University are tied at No. 66 nationwide, while Baylor University and Texas Christian University rank No. 76 and No. 80, respectively.

The lofty U.S. News & World Report ranking is just the latest in accolades for the Owls. Rice was recently named the seventh best college in the U.S. and the best college in Texas by Niche.com.

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This article originally ran on CultureMap.

Trusted Houston bank identifies 4 coronavirus-related scams you need to know

On Your Side

As the COVID-19 pandemic has grown, so has the confidence of fraudsters who are hoping to scam people out of money. A large portion of our everyday lives have moved online and onto our phones, so it's more important than ever that you know what common tricks to watch out for.

Texas Citizens Bank continually looks out for its customers, creating tip sheets that help everyone become more educated about different types of fraud, from email scammers to debit and credit card crooks.

Here, they outline four common COVID-19 schemes that are making the rounds:

1. Fake offers of info, supplies, or payments
If it sounds official and mentions COVID-19 or the CARES Act, it must be legit, right? Wrong. These websites, mobile apps, and emails with links or attachments are entirely fake. Do not open, click, or download anything sent to you — instead, go directly to the official website on your own to find the info.

2. Someone posing as a doctor or ill family member
If you get a call claiming that someone you love is ill with coronavirus — and too ill to come to the phone, at that — and needs money for treatment, don't believe it. Hang up immediately and call that family member yourself.

3. Claims that your Social Security benefits are suspended
If you receive a letter or email, no matter how official-looking, that says your SSA benefits have been suspended due to COVID-19, know that it's not true. The SSA has not suspended or reduced any benefits, pandemic or not. Be sure to report this scam to the government here.

4. Offers of COVID-19 tests and vaccines
If someone is claiming they can send coronavirus tests directly to your house, they're lying. If they claim they can do the same with a vaccine, they're really lying. You can only obtain tests at hospitals, urgent care facilities, and your doctor's office, and we're still waiting on a reliable vaccine to be approved. Until then, be extra careful about who you believe.

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Texas Citizens Bank is an independently owned, FDIC-insured bank that specializes in Houston's small and medium-sized business owners. If you have questions about financial options during coronavirus or how to keep your money safe, contact a TCB banker today at 713-948-5700.