1. WIPO Arab Regional Meeting on Intellectual Property as a Power Tool for Economic Growth June 1 to 3, 2003 Amman, Jordan

2. University-Industry Partnerships: Finding the Right Balance Homai Saha June 3, 2004 2

3. Critical link between government financed research and the effective utilization of the research for progressCritical link between government financed research and the effective utilization of the research for progress In the knowledge economy, economic growth can be linked to effective utilization of science and technologyIn the knowledge economy, economic growth can be linked to effective utilization of science and technology Focus of Presentation 3

4. In this process Universities have the potential to act a strong drivers of growth:In this process Universities have the potential to act a strong drivers of growth: –Generate, commercialize and apply new knowledge to enhance prosperity and quality of life –Educate people with high skills in research 4

5. Legal Framework But to maximize this utilization of public resources effective frameworks need to be put into place by governments Governments are increasingly realizing that academic activity should be applied to finding solutions which stimulate economic development An integrated innovation system of research centers, universities and business is needed 5

6. Private ownership and commercial interests are a strong incentive for research Technology transfer from universities is encouraged when they are allowed to patent and license their technologies to industry For PROs such transactions yield money - more money for research 6 How does this work in practice?

7. For governments there is better use of research for social benefit and expanded employment in new industries 7

8. Policy Makers in Developed Countries began to focus on the laws and regulations governing the exploitation of IP created through government funded research First and most commonly quoted example - USA 8

9. Allowed universities to claim ownership of the IP developed from federally funded research and retain the royalties Allowed universities to grant licenses including exclusive licenses 9 The Bayh-Dole Act 1980

10. Bayh-Dole produced significant results for the US economy Increase in Patents filed by universities Millions in royalties Start-ups and spin-offs Enormous economic activity which can be attributed to academic licensing University patents which have had significant impact on society as a whole Carbovir, Taxol, Superaspirins, MRI, Lycos 10

11. Other Developed Countries Began looking at their own laws and policies on transfer of research from university to industry. Turning Science into Business, a study on patenting and licensing at PROs by the Organisation for Economic Cooperation and Development (OECD), has documented different practices in 13 member countries and highlighted the policy options which could be available to developing countries 11

12. These include: Emulation of Bayh-Dole (Japan, Germany and Korea), Reform of employment laws (Austria, Denmark, Germany and Norway) Issuance of national codes of practice or IP guidelines (Canada, Ireland) 12

13. All these examples show: The experience of most developed countries in maximizing university-industry partnerships is not a long one A technology transfer system is more than just national laws allowing the ownership of IP by public research institutions, it requires an institutional framework which provides incentives to each of the players in the system The experience is varied and no one policy prescription exists 13

14. Hence, adopting the experience of another country uncritically would not be the best option 14

15. Policy Options for Developing Countries The policy framework consideration should be to maintain a system of checks and balances Maximize the social benefits from government investment in R&D to ensure that commercialization of the R&D generates economic growth Create a policy space and enabling environment which would balance support for commercially funded research and entrepreneurship at universities and public access to research generated with public funds 15

16. The right balance is needed for management of IP generated with government funding. The entrepreneurial activities of the universities should not compromise the academic obligations of researchers 16

17. Create a coherent and consistent policy on publicly-funded research. There is an urgent need for governments to create the legal framework that will allow the ownership of IP by publicly-funded research organizations Generally, ownership should not belong to the government agency which funded the research as lack of market exclusivity would make industry reluctant to invest in and develop new products from federally-owned research 17

18. To balance and address the public policy aspect, Government interests could be preserved through march in rights Channel public resources towards government's policy priorities for science, technology, education and development of indigenous technological capacity in priority areas. Allow each university or research institution to develop its own policy on commercialization of research and distribution of benefits from patenting 18

19. Successful transfer of technology requires more than just a national policy framework, it requires an institutional framework at the university level –University oriented –Researcher oriented Assist in the setting up of institutional mechanisms at universities for management of IP assets, e.g. TTOs Reconcile the publication versus protection dilemma. To address this issue, governments may need to address the question of the grace period for filing of a patent 19

20. The experience of developed countries has revealed that there is no one size fits all policy approach to manage and maximize the IP assets generated by PROs. Importing policy solutions without adapting them to the national context would result in sub-optimal policy outcomes 20

21. Technology Transfer Offices (TTOs) Traditional university structures are not designed for technology transfer. They are designed for research and education To overcome these constraints public policy must support these institutions through finances and qualified managers 21

22. Institutional models for TTOs: TTOs with arms length relationship with the university Dedicated on-site institutions Regional or sector-based TTOs which are shared by several research and academic institutions 22

23. Initiatives in Developing Countries Severe constraints in developing countries - outlay for R&D is limited 1% of GDP in developing countries as against almost 3% in developed countries To address this critical issue public policy makers in developing countries are focussing on this issue through greater allocations for R&D over time, framework laws, rules and regulations 23

24. India 80% of Indias research is in the public sector The Ministry of Science and Technology issued the guidelines Instructions for Technology Transfer and Intellectual Property Rights in 2000, which would help in enhancing the motivation of scientists, research institutions and universities in projects funded by the government 24

25. Research institutions were given the right of ownership over some of the inventions; they could exploit their patents on an exclusive or non-exclusive basis; retain earnings generated from their IP; pay the inventor from the earnings; government could retain march-in rights for use of IP for public purposes 25

26. In 2003 the government announced plans to establish autonomous TTOs at universities and national laboratories to facilitate transfer of know-how to industry CSIR - aggressively patents, pursues commercialization of technology, derives royalties from its inventions and has some 6000 patents worldwide 26

27. Department of Science & Technology - established a Patent Facilitating Centre (PFC) to help scientists commercialize their technologies The Indian Institute of Technology Mumbai has an IPR policy and is creating a framework for commercializing inventions 27

28. The Indian Council of Medical Research (ICMR) - has an IPR policy. Working with industry for the transfer on commercial terms of new technologies. Scientists are being sensitized to protect their inventions as disclosure through publication would mean loss of IP rights. Develop and implement a royalty policy 28

29. Brazil Has increased its level of funding for R&D to 1.4% in 2001 and is expected to increase it to 2% in 2005. Made improvements in the institutional environment for technology transfer; inventor has a 12 month period in which to file a patent; while generally the researcher is regarded as an employee of the university and their research belongs to the institution, they are entitled to bonus for inventions 29

30. Republic of Korea In 2000 the government passed the Technology Transfer Facilitation Law. Prior to that IP from government funded research in universities was owned by government. Under the new law, universities may elect to own the IP and are required to establish TTOs. Researchers have to be compensated up to 50% of licensing revenue from successfully commercialized inventions 30

31. Uganda The mission of the Scientific and Industrial Research Unit is to create an enabling policy environment for the conduct of research and link the research capacity of the skilled manpower to the productive industrial sector so as to improve the quality of life and generate wealth 31

32. South Africa Government funds about 50% of research in the country and of this a large % goes to universities which results in their undertaking one-third of all R&D activities in South Africa The government has systematically been building a technology transfer system to maximize potential of PROs 32

33. In 1996, the Department of Science & Technology embarked on a conscious policy through a White Paper. A National Science Foundation was created to manage government grants; An Innovation Fund to help sustain innovation projects and A National Advisory Council for a S&T Policy 33

34. IIPI Report (2004) 10 Universities surveyed. They have variations in IP policies: University oriented - Stellenbosch, Pretoria, Capetown Researcher oriented -Natal and Rhodes 34

35. The University of Stellenbosch has been the most successful in creating a technology transfer infrastructure. The university has started Unistel Holdings as a holding company for spin-offs. It has a combined turnover of around US$ 11.14 million a year and has led to the creation of 138 jobs. The University of Cape Town (UCT) recently started UCT Innovation as a wholly owned company and the commercializing of UCT's research has already earned about US$ 1.78 million. 35

36. The University of Pretoria has outsourced licensing and commercialization to SERA which is a collaborative effort of the university and the South African CSIR In 2002 a group of university research and technology managers came together to form SARIMA (South African Research & Innovation Management Association) and have tried to raise the level of technology transfer in higher education institutions 36

37. Jamaica While there is no national policy framework individual institutions are beginning to formulate IP policies to stimulate transfer of research to industry The University of West Indies policy 37

38. Conclusion For developing countries: Increased outlays for R&D are critical The commercial and strategic management of IP in public research institutions is an important issue Managing IP in universities is a multi-dimensional activity 38

39. Human resource factor should not be overlooked in formulating IP policies Need for legal and institutional systems for ensuring that public investments in R&D create value in terms of social good, which is measured not only in ensuring results of research in the public domain but equally, ensuring that the research links with industry and leads to economic growth. The need for developing countries to share experiences, network among academic institutions 39

40. Thank you 40