© Hagit Messer-Yaron, 2013 Prof. Hagit Messer-Yaron President, OUI Budapest, April 15, 2013

© Hagit Messer-Yaron, 2013 Universities at the 21 st century “Intellectual and Economic Engines” – Calls for Academia-Industry Partnership

© Hagit Messer-Yaron, 2013 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

© Hagit Messer-Yaron, 2013 The Death Valley Academia Science "Valley Death" Products Industry

© Hagit Messer-Yaron, 2013 Bridging over the “Death Valley” – HOW? Modern relations between universities and industries : New venture formation/Spin-offs R&D agreements Licensing deals Traditional: Teaching and students practice Individual entrepreneurship

© Hagit Messer-Yaron, 2013 Industry, university, government industry university knowledge money Researchers (people!), Faculties, Administration, etc. Entrepreneurs VCs Productions Marketing Management Stocks holders etc. Technology/knowledgeTransfer Government

© Hagit Messer-Yaron, 2013 The Role of Governments 1. Financial support for academic, basic research. Public support is essential for academic freedom. 2. Intervention programs for “bridging the gap”. 3. Legal infrastructure: intellectual property rights (IPR) laws, Taxations, innovation law, etc. IPR

© Hagit Messer-Yaron, 2013 Science Lessons from IL experience – How to maintain top level Science together with successful High-Tech Industry?

© Hagit Messer-Yaron, 2013 R&D statistics (1) The expenditure on civilian research and development (R&D) in Israel over almost 20 years, : Source: ISRAEL CBS

© Hagit Messer-Yaron, 2013 R&D statistics (2) The expenditure on civilian research and development (R&D) as a percentage of the gross domestic product (GDP) : Source: ISRAEL CBS

© Hagit Messer-Yaron, 2013 R&D statistics (3) The expenditure on civilian research and development (R&D) per capita : Source: ISRAEL CBS

© Hagit Messer-Yaron, 2013 Israel: Recent Nobel Laureates Dan Shechtman,Chemistry, Technion Ada E. Yonath, Chemistry, Wiezmann Inst. Ada E. Yonath Robert Aumann, Economics, HUJI Robert Aumann Aaron Ciechanover, Chemistry, Technion Aaron Ciechanover Avram Hershko, Chemistry, Technion Avram Hershko Daniel Kahneman, Economics, HUJI Daniel Kahneman

© Hagit Messer-Yaron, 2013 Higher Education in Israel - Expanding system 1989/90: 21 HEI (8 universities + 13 colleagues), 88,800 students. 2010/11: 67 HEI, (8 universities + 36 academic colleagues, 23 pedagogical colleagues) 297,800 students. All HEIs are independent legal entities; All but NBC are heavily supported by the government.

© Hagit Messer-Yaron, 2013 The 7+1 universities: The TechnionThe Technion The Hebrew University in JerusalemThe Hebrew University in Jerusalem Tel Aviv UniversityTel Aviv University Bar Ilan UniversityBar Ilan University Ben Gurion University in the NegevBen Gurion University in the Negev Haifa UniversityHaifa University The Weizmann InstituteThe Weizmann Institute The Open UniversityThe Open University

© Hagit Messer-Yaron, 2013 University vs. Colleague Teaching: Undergrad Teaching & research: Faculty, Graduate students Research: Grants, TT, Facilities, Inst. PRO HEI

© Hagit Messer-Yaron, 2013 All Israeli research universities are in the top 500 of the Shanghai list

© Hagit Messer-Yaron, 2013 In Israel: Government’s involvement mainly by intervention programs. Each university decides on its own policy and regulations independently. However, they share common principles. Each university has its own TTC. TTCs are for-profit companies, own by the universities. TTCs are handling universities IP and are responsible for commercialization, following the university’s policy.

© Hagit Messer-Yaron, 2013 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.

© Hagit Messer-Yaron, 2013

The rules – main common 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.

© Hagit Messer-Yaron, 2013 Weizmann InstituteYeda 1959 Hebrew UniversityYissum1964 Tel Aviv UniversityRamot ’s1990’s1998 TTCs in Israel

© Hagit Messer-Yaron, 2013 Tech. Transfer Company (TTC) mission Identify research results with commercial potential. Actively seek interested commercial entities and sign licensing agreements or establish spin-off companies. Collect royalties. File for patents and other propriety rights.

© Hagit Messer-Yaron, 2013 The technology transfer process at TAU Revenues 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

© Hagit Messer-Yaron, 2013 each year Approximately 400 new patent applications were filed each year in Israel and abroad by the TTCs(approximately 94% of total applications filed abroad). Commercialization of TTCs focus almost exclusively on inventions. Most of the revenues from sales of intellectual property (IP) and gross royalties received in 2009 came from Life Sciences and Medicine (approximately 92%). All the TTCs have affirmed that the main means of protecting IP is applying for a patent. Commercialization of Knowhow- Survey of technology transfer and IP companies

© Hagit Messer-Yaron, startup companies Since their establishment, TTCs have been involved in the establishment of 151 startup companies, of which 44 startup companies are non-operational. 1,000 In , approximately 1,000 IP invention disclosure reports were submitted by the researchers of various universities for examination by the TTCs; of those, the companies decided to protect approximately 700. Most commercialization done by the TTCs is to Israeli companies. Patent distribution by field: Commercialization of Knowhow- Survey of technology transfer and IP companies (cont.)

© Hagit Messer-Yaron, 2013 International Comparison 200K Israel is internationally leading in ID, patents and revenues per researcher (about 200K euro commercialization income per a university researcher)

© Hagit Messer-Yaron, 2013 How does it work? The (best) case of the Weizmann Institute

© Hagit Messer-Yaron, 2013 Responsible technology transfer

© Hagit Messer-Yaron, 2013

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

© Hagit Messer-Yaron, 2013 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)

© Hagit Messer-Yaron, 2013 Government’s involvement in university-industry relations Under the responsibility of the office of the Chief Scientist at the ministry of Industry, Trade and Labor (OCS). Different intervention programs for university- LOCAL industry collaboration. Restrictions on internationalization of knowledge created under these programs.

© Hagit Messer-Yaron, 2013 Intervention Programs KAMIN 100% 90% 60%

© Hagit Messer-Yaron, 2013Summary Most Israeli Universities had Technology Transfer policy and programs before the BDA of 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 (e.g., the Shanghai ranking) and in TT revenues. RESPONSIBLE technology transfer The key for success is a RESPONSIBLE technology transfer policy and implementation.

© Hagit Messer-Yaron, 2013 Amir Naiberg, Special THANKS to Amir Naiberg, CEO of Yeda, author of: