1. Planinska 1, 10000 Zagreb tel: +385 1 23 52 601 Faks: +385 1 23 52 615 E-mail: ured-bicro@bicro.hr Investment into Science and Research & Development in the Republic of Croatia Intellectual Property Rights Commercialization and Enforcement Skopje, the former Yugoslav Republic of Macedonia 1-3 April 2009 Business Innovation Center of Croatia Dalibor Marijanović Managing Director

2. Planinska 1, 10000 Zagreb tel: +385 1 23 52 601 Faks: +385 1 23 52 615 E-mail: ured-bicro@bicro.hr Content Intellectual property facts NIS Strategic and administrative work Good example

3. Intellectual property A long history of Intellectual Property protection in Croatia (since 1884) Legal Regulations - adopted by MSES on 21 May 2004 were published in OG no. 72/04 of 1 June 2004 Croatian legislation is harmonized with all European and international regulations and standards. Applicable National Laws 1. Patent Law 2. Trademarks Law 3. Law on Geographical Indications and Designations of Origin of Products and Services 4. Law on the Protection of the Topographies of Semiconductor Products 5. Industrial Designs Law 6. Copyright and Related Rights Law

4. Intellectual property Other Applicable Legal Regulations 1. Patent Regulations 2. Trademark Regulations 3. Regulations on Geographical Indications and Designations of Origin 4. Regulations on the Protection of Topographies of Semiconductor Products 5. Regulations on Industrial Designs 6. Regulations on the Professional Criteria and Procedures for Granting Authorizations for Performing Collective Management of Rights and on Remunerations for the work Done by the Council of Experts.

5. Intellectual property “National Strategy for Development of the Intellectual Property System in Croatia 2005 - 2010” accepted by the Government in 2005. The goals are: providing IPR protection comparable to EU level to ensure application of IPR as a lever for economic growth, up to the standards of EU countries with the highest European Creativity Index (ECI). State Intellectual Property Office (SIPO) - a pivotal institution of national intellectual property system. corresponding European (EPO and OHIM) and world (WIPO and WTO) institutions.

6. INDUSTRIAL PROPERTY IN FORCE IN THE REPUBLIC OF CROATIA ResidentsNon-residentsTotal Trademarks88981414823046 Under the Agreement101470 124516 Patents34113251666 Consenzual patents 31274386 2052 Industrial designs10094421451 Under the Hague Agreement1843 3294 Total129862 Source: Industrial property Statistics (www.dziv.hr )www.dziv.hr

7. REQUESTS FOR THE GRANT OF INDUSTRIAL PROPERTY FILED WITH THE STATE INTELLECTUAL PROPERTY OFFICE 1.1.1992.- 31.12.2008. 1.1.2009.- 21.01.2009. 1.1.1992.- 21.01.2009. TRADEMARKS Residents168815716938 Non-residents202393920278 Total371209637216 PATENTS Residents601296021 Non-residents862248626 Total146341314647 INDUSTRIAL DESIGNS Residents3134133147 Non-residents8841885 Total4018144032 TOTAL5577212355895 Source: Industrial property Statistics (www.dziv.hr )www.dziv.hr

8. Patent applications in 2007 by field of technology Field of technologyResident applicants Non-resident applicants Total Preparations for medical, dental purposes242044 Personal or domestic articles16723 Foodstuffs and tobaco819 Transportation39544 Organic chemistry31619 Biochemistry, genetic engineering246 Building and construction200 Machines or engines19524 Mechanical engineering819 Lighting and heating13114 Metrology32739 Electrical engineering13114 Others14824172 Total34592437 Source: Annual Report 2007 (www.dziv.hr)www.dziv.hr

9. Valid patents in 2007 by field of technology Field of technologyResident applicantsNon-resident applicants Total Preparations for medical, dental purposes35218253 Personal or domestic articles312556 Foodstuffs and tobaco221638 Transportation7773150 Organic chemistry32367399 Biochemistry, genetic engineering41519 Building and construction6566131 Machines or engines361652 Mechanical engineering133649 Lighting and heating281240 Metrology531366 Electrical engineering24 48 Others150236386 Total57011171687 Source: Annual Report 2007 (www.dziv.hr)www.dziv.hr

10. Intellectual property- real facts The current use of Intellectual Property System in Croatia: about 100 published papers per one registered patent, the private sector is more inclined to registering patents, the public sector is more successful in publishing scientific and expert papers, the culture of the protection of intellectual property is insufficiently developed in Croatian academic community. What is reason for that? Why? What to do?

11. Fundamental postulates  Economy based on knowledge  Technological revolutions are the driving force behind this  National innovation system should enable efficient and effective use of tehnological revolutions for further economical development

12. National Innovation System SVEZNATE VNIS Acceptance & support to scientific, technological & innovation policy (STI) BICROHIT START-UP firms START-UP firms SME’s SME’s Incubation services providers Offices for technology transfer Universities Universities Institutes Institutes Agency for basic Fundamental research Implementation of R&D & commercialize Agencies for technological development Formulation & implemetation of STI policy, financing ROLES

13. Key elements for development of NIS  Formulation & implementation of adequate policies & strategies  Improvement of scientific base  Adequate funding sources  Building of business & technological infrastructure

14. Primary Policy Elements RESEARCH TECHNOLOGY TRANSFER DEVELOPMENTMARKET UNIVERSITIES RESEARCH INSTITUTES TECHNOLOGY TRANSFER OFFICES INCUBATION PROVIDERS START-UPs SMEs ADVANCEMENT OF THE RESEARCH BASE ADEQUATE AND SUFFICIENT FUNDING SOURCES BUILDING OF BUSINESS AND TECHNOLOGY INFRASTRUCTURE IMPLEMENTATION OF APPROPRIATE POLICIES AND STRATEGIES  Technological platforms  Development of public/private partnership models  Cluster development  Networking  Integration within universities  New education curricula  Competitive research grants  Criteria of excellence  Enrollment quotas  Grants  Preseed capital  Seed capital  Venture capital  Guarantee Schemes OTHER PRIMARY ELEMENTS  Political leadership  Legislation / regulation  Collaborations  Public acceptance  Market

15. National innovation system The underlying EU document for national strategies of member countries:  “Lisbon Strategy” - increasing investments into research and development - achieving the goal of 3% GDP allocation at EU level - improving of off-budget and public investment ratio to 2:1  The basis goals of the Croatian national programme for research and development: Increase and improvement of investments into knowledge, research and development Stimulation of innovation, expanding the use of information and communication technologies, and sustainable use of resources Knowledge-based society must strive towards realization of a healthy economy.

16. National strategies Strategic document which presents a vision of the development of the Science and Technology sector in the Republic of Croatia:  “Science and Technology Policy of the Republic of Croatia 2006 - 2010” - prepared by the Ministry of Science, Education and Sports (MSES) - adopted by the Government of the Republic of Croatia on May 5, 2006  “Action plan for Encourage Investment into Science and Research” - accepted by the Government of the Republic of Croatia on 18 th April 2008 - the ministry in charge of implementing the Action Plan will be MSES - influence Croatian national policy

17. Technology policy in Croatia The main goals of promoting business innovation and technological development: 1. Promotion of the establishment and development of knowledge based companies. 2. Establishment of technological infrastructure which will support small and mid-sized knowledge-based entrepreneurship and start-up technology-based companies. 3. Stimulation of industry demand for research and development. 4. Management of intellectual property. 5. Diversity of sources of funding research and development, attracting investment of the private sector and creation of the industry of risk capital. 6. Promotion of public confidence in science and awareness about the importance of innovations.

18. National Acts  In December 2005 Croatian parliament signed agreement with World Bank for Croatian Science technology project  In May 2006 The Government of Croatia has defined additional policy document Guidelines for Supporting Innovation Technology System, with the purpose of implementation of programmes under BICRO and HIT.  Since February 5th 2007, we have open call for projects under BICRO programs

19. Stimulating programmes BICRO, Ltd. - Business Innovation Centre of Croatia is the key organization in the National Innovation System, established by the Croatian Government for supporting innovation and technology development RAZUM programme provides for initial financing of the development of new product, service or process in newly established or existing knowledge based micro, small and mid-size companies and stimulation for industry research and development. TEHCRO grant support for creation of technology incubators, R&D centers and technology –business centers linked to research/academic institutions and R&D-based industry. VENCRO was launched to develop the market of risk capital. IRCRO programme encourages cooperation between scientific organizations and small and mid-size companies. KONCRO programme was initiated in order to improve business competitiveness of newly established and existing technological companies.

20. Stimulating programmes HIT, Ltd. - Croatian Institute of Technology - developing and implementing programmes and projects - create conditions for new technologies and innovation TEST programme which is used to finance pre-commercial research activities up to the phase of prototype or pilot solution as well as research activities which link basic research and industry. Science and Technology Policy of the Government of the Republic of Croatia -supported from the World Bank through a loan in the amount of €31 million with participation of the Republic of Croatia with an additional €5.7 million.

21. Technology transfer  Programme TEHCRO is intended to: support development of the self-sustainable technology and business infrastructure enable better commercialization of the research results and better use of intellectual capital. provide professional management services and equipped space (offices, laboratories, production lines, etc.) thus supporting establishment and development of innovative knowledge-based companies. Within the program TEHCRO in cooperation with the MSES BICRO has been developed project for activation Incubation Center for Bio science –BIOCENTER.

22. Technology transfer  5 technology transfer offices operating in Croatia: TTO Split and Zagreb within Universities; TTO Rijeka operates within newly founded Science and Technology Park Rijeka; Rudjer Innovations within one of the largest R&D Institution Ruđer Bošković and Technology development Center in Osijek also works on technology transfer activities. Activities of the technology transfer officies: promotion and support transfer of knowledge and research results from University to the economy support researches in all stages of technology implementation: from idea, invention, process of intellectual property protection, to setting up a company and commercialization of intellectual property.

23. Technology transfer Rudjer Innovations and Rudjer Boskovic Institute spin-off companies: Rudjer Medicol Ciklotron, Initum Futuri Ltd., Rudjer-Medicol diagnostics Ltd.  2,7 million euros BICRO (Program TEHCRO) invested so far in technology infrastructure development - technology parks and incubators in Croatia: - Technology Park Varaždin, - Mariculture Business Innovation Center, - Science & Technology Park Rijeka, - Industrial Park Nova Gradiška

24. International Cooperation The Community Programmes for Research and Technology Development  Competitiveness and Innovation Program – CIP  Enterprise Europe Network –EEN (BICRO with partners) Objectives included in the EEN are the following: to provide the Croatian business community with a better access to possibilities in the EU market to increase the cooperation between science and research institutions on one side and business community on the other side to support to the trans-national dissemination and exploitation of research results to raise awareness among Croatian business community on EU policies, funding and changes in Community Legislation The final objective of the EEN is to enhance the competitiveness and innovative capacity of the European SME´s

25. Ideas for enhancing the management of Intellectual Property  developing legal framework and system which will support the protection of intellectual property in public research organisation in the following ways:  Adopt guidelines for creating policy on the protection of intellectual property at universities and research institutes  Strengthen administrative capacity for the intellectual property management by:  educating people in the academic community to understand the process of technology transfer, strengthen community capability  establishing offices for technology transfer at universities and public institutes which will receive innovative ideas, evaluate them and deal with protection, marketing, licensing and initial activities necessary for the establishment of the university spin out companies.

26. Pneuma t i c tools

27. DIN EN ISO 9001:2000 Zertifikat Nr. 04 100 031664 Company "BANKO" Ltd. with its headquarters in Split, Dubrovacka 19, has been established in 1991 Main activities of the Company are: Main activities of the Company are:  PRODUCTION of mechanical and spare parts by processing of metal  TRADING in all the parts and investment equipment from the field of mechanical engineering  DEVELOPMENT of new products; design, construction and supervision of metal structures

28. PNEUMATIC TURBINE  Original idea about the pneumatic tools was started in 2003.  Pneumatic turbine was made in 2005., but some disadvantages were noticed

29.  At the end of 2005. the construction of the vane machine was changed in cooperation with Faculty of Mechanical Engineering and Naval Architecture, Zagreb VANE MACHINE

30. ADVANTAGES OF THE BANKO VANE MACHINE COMPARED TO EXISTING MACHINES ON THE MARKET  Improved filling and emptying of the machine’s work space with working fluid– volumetric efficiency  Improved filling and emptying of the machine’s work space with working fluid – volumetric efficiency  Improved sealing of vanes on radial and axial walls of the cylinder- volumetric efficiency  Improved sealing of vanes on radial and axial walls of the cylinder - volumetric efficiency  Reduced wear on contact surfaces of vanes in contact with axial and radial walls of the cylinder- mechanical efficiency  Reduced wear on contact surfaces of vanes in contact with axial and radial walls of the cylinder - mechanical efficiency

31.  The Banko pneumatic grinder exceeds power compared to the pneumatic grinders with the same dimension of the vane machine Results acquired from testing on eddy current dynamometer Magtrol 2WB65 Switzerland ADVANTAGES OF THE BANKO PNEUMATIC GRINDER COMPARED TO THE EXISTING GRINDERS ON THE MARKET

32.  Increased durability  Increased productivity in the grinding process 60% - man power 30% - abrasives 6% - energy 2% - pneumatic grinder 1% - maintenance 1% - other costs The Banko pneumatic grinder achieves 60-100 % faster grinding at the right speed with high material removal rate, which improves production rates and allows new levels of productivity Source: Efiziente druckluft-eine kampagne von Energie Schweiz, Swiss Federal Office of Energy, 2006; Pocket guide to grinding, Atlas Copco, 2003

33. ADVANTAGES OF THE BANKO PNEUMATIC GRINDER COMPARED TO THE EXISTING GRINDERS ON THE MARKET Torque characteristics on pressure decrease of 15% The Banko pneumatic grinder provides much less insensitivity to variations of the pressure Source: Efiziente druckluft-eine kampagne von Energie Schweiz, Swiss Federal Office of Energy, 2006 Vibration exposure assessment for industrial power tools, Atlas Copco, 2008

34. ADVANTAGES OF THE BANKO PNEUMATIC GRINDER COMPARED TO THE EXISTING GRINDERS ON THE MARKET Comparison of torque diagram of the Banko pneumatic grinder with other grinders in case of torque increase of 50% Torque increace of 50% doesn’t provide enhanced torque with the right speed of the accessories

35.  No need for lubrication, which enables clean working surface and more environmental-friendly operation  Less vibration due to grinding at the right speed of the accessories  Competitive product price  High energy efficiency ADVANTAGES OF THE BANKO PNEUMATIC GRINDER COMPARED TO THE EXISTING GRINDERS ON THE MARKET

36.  A new, improved ergonomic design for less operator fatigue and easy control of the operator ADVANTAGES OF THE BANKO PNEUMATIC GRINDER COMPARED TO THE EXISTING GRINDERS ON THE MARKET

39. THANK YOU! Questions? Dalibor Marijanović dalibor.marijanovic@bicro.hr