1. Paola Giuri, Federico Munari – FinKT Project What determines University Patent Commercialization? Empirical Evidence on the role of University IPR Ownership Paola Giuri, Federico Munari University of Bologna

2. Paola Giuri, Federico Munari – FinKT project Research objectives This paper analyzes whether and how the ownership of IPRs by universities and PROs affect their subsequent commercialization by considering three exploitation routes: Patent sales Licensing Spin-off formation Empirical evidence from a sample of 1297 EPO patents with inventors employed by universities and PROs in 23 countries 2

3. Paola Giuri, Federico Munari – FinKT project FinKT Project: Financing Knowledge Transfer in Europe 3 The project “Financing Knowledge Transfer in Europe” (FinKT), funded by the European Investment Bank under the EIBURS measure, investigates the role of financial institutions and financial instruments to support the transfer of technology from University to the industry. It is undertaken by the Department of Management of the University of Bologna, in collaboration with Bocconi University Project website: www.finkt.unibo.itwww.finkt.unibo.it

4. Paola Giuri, Federico Munari – FinKT project Background: Institutional reforms and academic patenting Analysis of main changes in legislation governing university IPR ownership (i.e. Geuna and Rossi, 2011) Distribution of academic scientists’ patenting activities in different countries (Lissoni et al., 2008; Baldini et al., 2008) The factors explaining the assignment of academic-invented patents to universities (Thursby et al., 2009; Markman et al., 2008) The quality of university patents after the reforms (Mowery et al., 2005) The role of TTOs, structures and procedures to foster academic patenting (Siegel et al., 2007; Meyer and Tang, 2007) 4

5. Paola Giuri, Federico Munari – FinKT project University IPR ownership and the efficacy of TT activities Empirical evidence on the consequences of university IPR ownership patterns on the success of technology transfer activities is still limited (Shane, 2001; Crespi et al., 2010). Focus on single countries or on successful organizations (i.e. MIT) Focus at the university level, less at the invention level The study by Crespi et al. (2010) does not find evidence of a university ownership effect the commercialization of patents Mixed evidence on the impact of university-owned patents, as measured by number of forward citations (Callaert et al., 2012; Lissoni et al., 2010) 5

6. Paola Giuri, Federico Munari – FinKT project University IPR ownership and TT efficacy: research gaps Most studies have referred either to licensing deals or to academic spin-offs --> no attention devoted to patent sale Existing studies have observed only actual outcomes --> no attention devoted to the intentions or plans to transfer IP (Gambardella et al. 2007) No attention on the effects of national legislations related to university patent ownership (i.e institutional vs. inventor ownership) (Geuna and Rossi, 2012) 6

7. Paola Giuri, Federico Munari – FinKT project Research questions and intended contributions 1)Does the ownership of patents on university research impact on the final commercialization outcome? 2)Are there significant differences - depending on the type of ownership patterns - in the willingness to commercially use university patent as compared to their actual use? 3)Is the relationship between university IPR ownership and commercial exploitation moderated by the type of national IPR legislation on university patents? 7

8. Paola Giuri, Federico Munari – FinKT project Sample We use data from the PatVal-EU II surveys of inventors of EPO patents with priority dates in 2003-2005 in 20 European countries, US, Japan and Israel. 22,533 responses by the inventors in all surveyed countries, corresponding to a corrected response rate of 20%. Of these, 1297 patents (6% of the total) refer to inventors employed in universities or PROs at the time of the invention. 8

9. Paola Giuri, Federico Munari – FinKT project Dependent and explanatory variables 9 Variable Name DefinitionSource Dependent variables capturing the external use of patents License A dummy variable equal to 1 if the patent was licensed, 0 if it was not licensed PatVal II Sale A dummy variable equal to 1 if the patent was sold, 0 if it was not sold PatVal II Spin-off A dummy variable equal to 1 if the patent was used to create a spin-off, 0 if it was not used PatVal II External use A dummy variable equal to 1 if the patent was externally used (sale or license or spin-off), 0 if it was not used PatVal II Explanatory variables capturing university IPR ownership University_inve nted A dummy variable equal to 1 if the patent was NOT owned by the University that employed the inventor, and 0 otherwise PatVal II University_IPR regime A dummy variable equal to 1 if the inventor’s country adopted the institutional ownership regime of university patents, and 0 otherwise Rossi and Geuna, 2012; Mixed_IPR regime A dummy variable equal to 1 if the inventor’s country adopted an hybrid regime on university patents, and 0 otherwise Rossi and Geuna, 2012;

10. Paola Giuri, Federico Munari – FinKT project Control variables 10 Current version Number of scientific publications related to the patent (log) Dummies for sources of funding for the invention Technological Sector dummies Country dummies Next steps Control variables at the level of the inventor, invention process, patent characteristics, applicant characteristics, university scientific ranking and patenting levels

11. Paola Giuri, Federico Munari – FinKT project The identification of national IPR regimes (Geuna and Rossi, 2012) 11 1.We followed the classification by Geuna and Rossi (2012) and identified 3 different national legislative regimes regarding the ownership of university IPRs

12. Paola Giuri, Federico Munari – FinKT project Ownership patterns of University/PRO patents 12 1.With respect to the paper by Crespi et al, (2010), we find a significant increase in the shares of patents owned by universities and PROs

13. Paola Giuri, Federico Munari – FinKT project Patent ownership and commercialization outcomes: descriptive statistics 13

14. Paola Giuri, Federico Munari – FinKT project Legislations on university patents and commercialization outcomes: descriptive statistics 14

15. Paola Giuri, Federico Munari – FinKT project Preliminary regression results: probit models (university patents) 15 LicenseSaleSpin-off University_ownership_regime0.38*-0.57***0.04 Mixed_regime0.04-0.17-0.27 University invented patent-0.60***0.07-0.25** Scientific publications related to patent0.18***-0.050.07 Fund_internal-0.1-0.28*-0.19 Fund_government0.140.35**-0.04 Fund_other unaffiliated org-0.230.24-0.14 Fund_customer_user-0.20.57**-0.24 Fund_supplier0.020.17-0.12 Fund_VC0.69**0.98***0.55* Fund_bank-0.23-0.06-0.23 Fund_other0.050.12-0.16 _cons-0.64*-0.96***-0.65** Technology DummiesYES N527531595

16. Paola Giuri, Federico Munari – FinKT project Preliminary regression results: probit models (All sample) LicenseSaleSpin-off University_ownership_regime0.12-0.64***0 Mixed_regime0-0.24-0.25 Applicant not PRO/Univ-0.36***0.29**0.01 Scientific publications related to patent0.17***-0.010.14** Fund_internal-0.14-0.2-0.1 Fund_government00.29*0.04 Fund_other unaffiliated org-0.230.2-0.07 Fund_customer_user0.240.36-0.07 Fund_supplier-0.020.270.04 Fund_VC0.46*1.01***0.58** Fund_bank(omitted)0.16-0.02 Fund_other0.060.210.08 _cons-0.52**-1.06***-1.00*** Technology DummiesYES N870889963

17. Paola Giuri, Federico Munari – FinKT project Preliminary regression results: probit models (university patents) 17 LicenseSaleSpin-off University_ownership_regime0.38*-0.57***0.04 Mixed_regime0.04-0.17-0.27 University invented patent-0.60***0.07-0.25** Scientific publications related to patent0.18***-0.050.07 Fund_internal-0.1-0.28*-0.19 Fund_government0.140.35**-0.04 Fund_other unaffiliated org-0.230.24-0.14 Fund_customer_user-0.20.57**-0.24 Fund_supplier0.020.17-0.12 Fund_VC0.69**0.98***0.55* Fund_bank(omitted)-0.06-0.23 Fund_other0.050.12-0.16 _cons-0.64*-0.96***-0.65** FR-0.36-0.82**-0.13 GB0.3-0.010.62** JP-0.45*-0.64**-0.36 US1.12***-0.330.83*** University_ownership_small countries-0.02-0.60**0.17 IT0.060.10.09 Inventor_ownership_small countries-0.480.220.60** NL-0.1-0.080.02 N527531595

18. Paola Giuri, Federico Munari – FinKT project Next steps 18 Estimates of the probability of actual and potential licensing, sale, spin-off (similar to Gambardella, Giuri, Luzzi 2007) In the sample of university patents, we will include controls for scientific rankings of universities (Shangai and Leuven) We will try to control for the presence of TTO in the universities/PRO and university orientation towards TT activities (i.e. stock of owned patents) Explain multiple forms of external exploitation of patents (i.e. licensing and spin-off), also through qualitative data and case studies

19. Paola Giuri, Federico Munari – FinKT project Conclusions 19 Our preliminary analyses suggest that the share of university owned patents, as compared to university invented patents, has significantly increased over the last decade Mixed situations still exist. Need to understand in more detail the impact of university bylaws, support structures (TTOs), incentive systems, funding entities. Need to separate licensing and sale in order to more clearly understand the impact of university ownership. University ownership seems to be positively associated to licensing. Need to separate universities and PROs. PROs seem less effective across all commercialization routes. Differences across countries according to the legislations on university patents