1. Reconciling Science and Innovation in Israel – Lessons Learned Prof. Hagit Messer-Yaron Tel Aviv University Pargue, April 21, 2016

2. University vs. Industry- Contrasting Cultures: University Social responsibilities Basic, curiosity driven research Create new knowledge Freedom of research Publications & collaborations Sharing of material Open, global community and sharing of research results Corporate Shareholders responsibilities Applied research Develop new products Specific objectives, product focused Ownership and secrecy Control of material Aiming to global market

3. Academia Science "Valley Death" Products Industry The Death Valley

4. Commercialization of research results – not “all win” Why YES Direct contribution to short term growth. “Fair” and efficient use of public support. Improves exploitation of knowledge to the benefit of the public (e.g., new drugs). Why NO Risk the base of the academic culture: openness, freedom of research, diversity of topics, etc. May hazard innovation and therefore growth in the long run. Calls for bridging over the death valley by RESPONSIBLE TT

5. Responsible Technology Transfer: bridging over the gap, not closing it To be able to maintain excellence in science AND successful entrepreneurship in universities and research institutes the different cultures should be respected. IP policy and TT process should carefully consider the needs of BOTH sides.

6. Ex: Guidelines offered for responsible technology licensing by: CalTech Cornell Harvard MIT Stanford UC U of Illinois, Chicago U of Illinois, Chicago, Urbana-Champaign Univ. of Washington Wisconsin Alumni Research Foundation Yale AAMC (Assoc. of American Medical Colleges) March 2007 In the Public Interest: Nine Points to Consider in Licensing University Technology

7. The necessary conditions for academic research: Academic Freedom Research Community: Group of Colleagues to work with (critical mass) Research Conditions: Ongoing research funds Laboratory equipment (if relevant) Large Research Infrastructure (if relevant) Recognition & Personal rewarding Position, promotion system Salary & terms (incl. teaching duties) … Responsible TT Responsible TT is about commercializing research results while keeping and fostering all these conditions

8. Bridging over the “Death Valley” – HOW? Bridging over the “Death Valley” – HOW? Technology transfer mechanisms: Traditional: Teaching and students practice Individual entrepreneurship Modern relations between universities and industries: New venture formation/Spin-offs R&D agreements Licensing deals Academia Science Products Industry Responsible TT needs clear, transparent policy, aiming at keeping universities as mainly intellectual engines

9. Reconciling Science and Innovation YES Can it be done? YES How? By practicing “RESPONSIBLE TT” By whom? What is it? How does it work?.... Index of innovation Quality of Scientific Research Source: World economic forum, 2010

10. The Players: The Players: Industry, university, government industry university knowledge money Researchers (people!), Faculties, Administration, etc. Entrepreneurs VCs Productions Marketing Management Stocks holders etc. Technology Transfer Government

11. The Role of Governments 1. Financial support for academic, basic research. Public support is essential for academic freedom. 2. Legal infrastructure: intellectual property rights (IPR) laws, taxations, innovation law, etc. Should governments do more? My claim My claim – let HEIs be autonomous in running their TT business. Governments can be facilitators, e.g., by initiating intervention programs for “bridging the gap”. IPR

12. Mid-talk summary Scientific success depends on a culture of openness and freedom. Institutional responsibility for implementing TT as a complementary mission of the university Transparent guidelines are necessary Government involvement should be limited to facilitation ……

13. Science Lessons from IL experience – How to maintain top level Science together with successful High-Tech Industry?

14. 14 Israel: Some Basic Data - 2014 Area 22,072 sq. km. (NJ - 22,608) Population ~ 8.2 million (NJ ~ 8.4 million) GDP 306 billion $ ($38K per capita) State Budget328 billion NIS (2015) Education Budget45.5 billion NIS ( 13.8% from states budget ) HE Budget9.2 billion NIS ( 2.8% from state budget )

15. R&D statistics The expenditure on civilian research and development (R&D) as a percentage of the gross domestic product (GDP) - 2010: Source: World Economic Forum

16. R&D statistics The expenditure on civilian research and development (R&D) per capita - 2009: Source: ISRAEL CBS

17. Source: OECD Patents per 1000 population (2010)

18. Israel: Recent Nobel Laureates Arieh Warshel, Michael Levitt Chemistry, 2013, Weizmann Inst. Dan Shechtman,Chemistry, 2011, Technion Ada E. Yonath, Chemistry, 2009, Weizmann Inst. Ada E. Yonath Robert Aumann, Economics, 2005, HUJI Robert Aumann Aaron Ciechanover, Avram Hershko Chemistry, 2004 - Technion Aaron CiechanoverAvram Hershko Daniel Kahneman, Economics, 2002 - HUJI Daniel Kahneman

19. Publications/Capita, 2004-2008 Switzerland Sweden Denmark Finland Israel Norway Singapore Netherlands Australia Canada New Zealand UK Belgium Austria USA Germany France Taiwan Greece Spain No. 5 in scientific publications/capita (in ‘84-’88 this was No. 1)

20. 20 Average citations/paper : Israel, OECD, World, 1981-2008 Avg. of 5.57 Citations/paper

21. Indicators of scientific research and innovation 2010 Index of innovation Quality of Scientific Research Source: World economic forum Israel

22. Source: OECD Normalized index relative to the median values in the OECD area (Index median = 100) Patents filed by Universities and research labs per $ of GDP – 2010

23. Where does it come from? HEIs in Israel 2014/15 Where does it come from? HEIs in Israel 2014/15 INSTITUTIONS 63* Research Universities 7 Open University 1 Art Academies 2 Comprehensive Colleges11 Engineering Colleges 7 Teachers ’ Colleges21 Non-Budgeted Colleges14 * All HEIs in IL are independent legal entities. Their institutional academic freedom is guaranteed by the CHE law (article 15)

24. 24 HE in IL: Facts & Figures – 2014/2015 Students ~310,000 Bachelor 240,000 Master 60,000 Ph.D. 10,000 Faculty ~ 7,000 Tech & Admin. ~ 10,000 BUDGET (est. all sources) ~$3.6 billion

25. CHE/PBC Org. Director Staff The Higher Education System and its Interfaces The state Knesset Government Others Finance Education CHE Chair Vice Chair PBC Chair Higher Education Institutions Universities Budgeted Colleges Non-Budgeted Colleges Teachers’ Colleges Law 1958 Government Decision 1977

26. The 7 research universities 1923: The Technion 1925: The Hebrew University in Jerusalem 1934: The Weizmann Institute The establishment of the State of Israel (1948) 1955: Bar Ilan University 1963: Tel Aviv University 1969: Ben Gurion University 1972: Haifa University

27. Research University vs. College Teaching: Undergrad Teaching & research: Faculty, Graduate students Research: Grants, TT, Facilities, Inst. PRO HEI

28. Academic Ranking of World Universities – 2012 Israel World RankInstitutionCountry Rank 53The Hebrew University of Jerusalem1 78Technion – Israeli Institute of Technology2 93Weizmann Institute of Science3 101-150Tel Aviv University4 301-400Bar-Ilan University5-6 301-400Ben-Gurion University5-6 * Institutions rank within the same rank range are listed alphabetically IL Universities in Shanghai ranking

29. Technology Transfer in Israel – How does it work? Generic IP legislation (Patents, Copy rights) Government’s involvement is limited to intervention programs Each university decides on its own policy and regulations independently. However, they share common principles Each university has its own TTC All TTCs are for-profit companies, own by the universities. TTCs are handling universities IP and are responsible for commercialization, following the university’s policy.

30. IP legislation (and more) in Israel The patent law (1967) defines “service invention” as one which has been invented by an employee as a result of his/her service to the employer. The law doesn’t cover many aspects of academic life, as: students, visitors, sabbaticals, retired stuff, etc. Thus, universities had to regulate it internally. No legislation w.r.to industrial R&D projects done in universities. It is up to the parties to agree on the conditions. In general, government doesn’t claim ownership of publicly sponsored research.

31. Weizmann InstituteYeda 1959 Hebrew UniversityYissum1964 Tel Aviv UniversityRamot1973 Each university has its own TTC

35. Main common TT principles: Researchers must disclose to the university any research of commercial potential. Universities own the IP of “institute inventions” (service invention). Institute inventions are discoveries of employees and others, related to the university. Institute inventions are commercialized solely by the TTC. Commercialization revenues are shared by the inventors (40- 50%; 50-60%) and the university. If the TTC chooses not to file for patent, the inventors can do it at their own expense.

36. The technology transfer process at TAU Revenues 40-20-40 IDF Discovery & Innovation Evaluation Patenting & Marketing Strategy Business Development Follow Up on Contract Academic Basic and Applied Research “Bridging the Gap”Sponsored Research publications To inventors

37. Intervention Programs by the government KAMIN 100% 90% 60%

38. Approximately 400 new patent applications were filed each year in Israel and abroad by the TTCs (approximately 94% of total applications filed abroad). TTCs have been involved in the establishment of 151 startup companies, of which 44 startup companies are non-operational. In 2008-2009, approximately 1,000 IP invention disclosure reports were submitted; of those, the TTCs decided to protect approximately 700. Commercialization of Knowhow- Survey of technology transfer and IP companies 2008-2009

39. Lipimix | Tubilux Lipimix | Tubilux Exelon ® | Novartis Exelon ® | Novartis Doxil ® | J&J Doxil ® | J&J Cherry Tomatoes | BonTom Cherry Tomatoes | BonTom Periochip | Dexcel Periochip | Dexcel Selected TT Success Stories: Yeda, Yissum & Ramot (2009) QuantomiX TM | QX Capsule QuantomiX TM | QX Capsule Copaxone ® | Teva Copaxone ® | Teva Rebif ® | Merck Serono Rebif ® | Merck Serono Encryption Algorithm | NDS Encryption Algorithm | NDS GeneCards TM | XenneX GeneCards TM | XenneX NanoLub TM | Nanomaterials NanoLub TM | Nanomaterials Dunaliella | Nikken Sohonsha Dunaliella | Nikken Sohonsha Erbitux TM | ImClone Erbitux TM | ImClone Total sale of Weizmann based products €6 Bilion/year

40. International Comparison 200K Israel is internationally leading in ID, patents and revenues per researcher (about 200K euro commercialization income per a university researcher)

41. University-industry collaboration in R&D Level of innovation Source: World economic forum Israel University-Industry collaboration in R&D 2010

42. Univ. of California system297 Fraunhofer-Gesellschaft182 CNRS146 MIT131 Univ. of Texas 96 California Inst. Tech. 84 Johns Hopkins 76 Univ. of Michigan 74 Columbia Univ. 68 Riken 67 Univ. of Florida 67 Hebrew Univ. 56 Weizmann Institute 54 Stanford 54 Academic institutions with more than 50 PCTs/year (2004)

43. Summary Most Israeli Universities had Technology Transfer policy and programslong before the BDA of 1980. The government has not been involved in the universities TT policy and/or implementation. IL TT policy is (was) VERY successful, with top universities leading both in academic achievements and in TT revenues. RESPONSIBLE technology transfer The key for success is their ability to practice RESPONSIBLE technology transfer - policy and implementation.

44. Future trends autonomy TT in IL has started by the research universities as a bottom-up operation, under their autonomy and the self-definition of their mission. Its success, and the 21-century trend to convert HEIs into “Economic Engines” have caught the attention of the government. After few unsuccessful attempts to regulate the universities TT operations, the top-down involvement has turned into adaptation of their best practice tools and applying it to other potential knowledge/technology sources.

45. Ex.: National TTC To explore the potential TT in colleges (and others), the government initiated “a national TTC”. Its structure of the operation is similar to universities’ TTCs, but it is financially supported by the PBC. This TTC must provide subsidized TT services to budgeted HEI, and can provide TT services to others.

46. Thank You messer@eng.tau.ac.il messer@eng.tau.ac.il