Jim White knows just how important innovations at Oregon State University can be.

The OSU chemistry professor helped develop a drug that might shrink cancerous tumors and inhibit their growth. It's a product that's been through four years of testing and is heading into the second phase of clinical trials.

"This would be big time," he said. And not just for countless patients fighting for their lives.

If successful, the anti-cancer drug - nicknamed "epo" - would bring millions of dollars to OSU, much like Gatorade did for the University of Florida, where it was developed.

Last year, OSU made $2.5 million from licensing fees for products developed at the university, such as new varieties of wheat, scientific equipment and wood glue inspired by the gripping power of mussels at the coast.

There could be more such innovations and spin-off companies creating products in the future, university representatives said, thanks to a $14 million venture development fund launched Thursday by the Oregon University System.

White welcomed the investment.

"Money put into the pipeline means something useful comes out at the other end of the pipeline," he said.

The fund would be used to build more-evolved prototypes of products, which would create less of a risk for companies, said Brian Wall, interim director of the OSU Office of Technology Transfer.

"Companies want more than solid theories these days. They want to hold things, feel things, know that they work," he said. "We're excited to be able to fund some of the projects that just need that extra push."

Di Saunders, director of communications for the Oregon University System, described the time between innovation and commercialization as a "valley of death" for products.

Funding to bridge that gap could make a big difference, said Mary Foley, interim assistant director of the OSU Office of Technology Transfer.

"It can really launch some technologies into the marketplace, much, much faster," she added.

State officials hope the investment will result in economic benefits, too.

The fund, which Saunders said was the only such program in the nation, would be raised through donations. Tax incentives would be given in return for the gifts.

Out of the eight schools in the system, OSU is earmarked the largest portion of that money, with $5.35 million, Saunders said.

Todd Simmons, OSU assistant vice president for advancement, said state Sen. Frank Morse, R-Albany, was instrumental in getting state legislation passed to create the fund.

Morse, OSU President Ed Ray and other state officials were in Portland on Thursday for a launch event for the fund.

"It will help us expedite our efforts to take discoveries developed at the laboratory through proof of concept to commercialization, by providing resources to finance that transition," Ray said.

OSU hasn't determined how much of the fund it will use each year. When products succeed due to the fund, their licensing fees will be used to replenish it, Wall said.

According to the university, licensing revenue for OSU has increased more than $1 million in the last three years.

Kyle Odegard covers Oregon State University. He can be contacted at kyle.odegard@lee.net or 758-9523.