ROLE UNIVERSITIES PLAY IN INNOVATION AND ENTREPREURSHIP
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1 ROLE UNIVERSITIES PLAY IN INNOVATION AND ENTREPREURSHIP I N Mazonde & J Jackson-Malete Office of Research & Development University of Botswana July, 2007
2 Aim Of Presentation To highlight the importance of innovation and technology commercialization as an instrument of economic development To highlight the university (HEIs( HEIs) ) role as knowledge centres and or centres of excellence for entrepreneurial development To show how the linkage between the university and the government can lead to incubators stimulating small enterprises
3 Introduction The 21 st Century economy is knowledge driven and IP is increasingly assuming importance both at international, regional, national and even at institutional levels. IP regarded as a system that serves as a catalyst for scientific, technological, as well as social and cultural development. Universities (HEIs( HEIs) ) stand a better chance to utilize and benefit from the IP system because they are the heart of knowledge creation and dissemination process.
4 Why Commercialization for HE Institutions? In the US and Europe, around 60% of the economy is knowledge driven (see slides 25 35) Consequently, HEI in those countries take knowledge and information seriously To foster university-industry industry linkage: It has become essential at both institutional and national levels that appropriate mechanisms are put in place to identify, protect, develop and commercialize IP resources.
5 Role of HEI In Commercialization (US and Western Europe) As a means to translate research findings into products or solutions to societal problems. Universities receive revenue stream from TT in 2005, this was US$1bn for US institutions alone.
6 Role of HEI In Africa Consequently, recent years have seen expansion in the no. of TT offices set up by universities to manage this process In 2002, all Kenya universities pledged to develop an IP Policy Malaysian government instructed all of its 17 public universities to establish an R&D and Commercialization unit
7 Technology Transfer Process TT is generally effected by means of IP licensing agreements (contracts) between universities and private companies or publicly owned commercialization agencies Many stakeholders students, researchers, private sponsors, technology transfer units, national patent offices, the gvt,, the public
8 Tech Transf Process cont. IP OFFICE (MTI) RESEARCHER R&D INSTITUTION INDUSTRY
9 TYPICAL TT SET UP IN LDC UNIV Usual Commercialization Process UB Researcher R&D Inst (ORD/UB) UB Owned Licensing Company Start-up Company (Industry)
10 TYPICAL SET UP IN LDC UNIV The Botswana Scenario Many Stakeholders ARIPO OFFICE (Patent Searches) Dept of Trade and Industry (National Patent Office) RESEARCHER R&D Inst Licensing Company Start-up Company (industry)
11 Strategic Institutional Commercialization Approach Step 1 in institutionalizing ing IP management is to formulate a clear and specific IP policy. Step 2 is to set up the Intellectual Property Office/Technology Transfer Office.
12 Strategic Institutional Comm cont Step 3 is to set up procedures that provide support to researchers, for them to recognize when their inventions have potential commercial wealth. Step 4 is to embark on awareness raising program on IP issues to academic and non academic staff.
13 Issues In IP Awareness Raising IP Policy to ensure that financial or other benefits of commercialization are distributed fairly and equitably IP Policy to create incentives for researchers and inventors e.g Kenya 40/60, Mal 50/50-75 & Botswana 40/60 Explain the need for balancing delay in publishing with the gains of patenting
14 Issues In IP Awareness cont Emphasize the need to interact with industry (universities in the North have more experience in this than those in the South) IP Policy to avoid legal jargon must be simple enough to be understood by all users Start off with something very successful and use it to stimulate the interest of many researchers
15 Patenting IP in African Universities Low numbers of filed patents in Africa not indicative of low levels of innovation, pioneering research and engineering activities Innovations in African universities go unnoticed because of lack of IP awareness Barriers to patenting include low R & D funding levels by African gvts (<1% of GDP)
16 Patenting IP in African Universities cont.. Lack of funds to finance patent applications and patent maintenance (e.g. venture capital) Lack of IP professionals like patent agents Lack of institutional framework like technology management offices within African universities and R&D institutions
17 Situation Now Changing Because: Universities and R&D institutions in Africa are becoming more IP aware Decision makers have started to see the need for increased funding of R&D in Science, technology and innovation In the last decade, SADC countries set up Ministries of Science & Technology partly in recognition of this fact.
18 Gvt,, HEI and Industry Link The Innovation Hub Incubator Concept An Innovation Hub is a (S&T) park which is set up to advance economic growth and competitiveness by achieving value creation through technology based innovation.
19 Innovation Hub S&T parks are believed to be the perfect habitat for businesses and institutions of the global knowledge economy.
20 Innovation Hub.cont Broadly, the objectives of an Innovation Hub can be stated as being: 1. to create a unique space and facilities where high-tech entrepreneurs, world-class business, education, research and venture capital can meet, network and prosper, 2. to support the growth and globalisation of technology-led led entrepreneurs and business enterprises and to generate knowledge- based jobs, and, 3. to increase the wealth of its community, promote a culture of innovation and entrepreneurship and stimulate the competitiveness of its associated businesses and knowledge-based institutions.
21 How The Innovation Hub Functions contract research work (consulting) or through the provision of a range of specialist support services such as entrepreneur development, management training, etc. This is a similar concept to the Emerging Business Support (EBS) Center in the Kyoto Research Park in Japan.
22 How The Innovation Hub Functions. HEI may consider developing a model similar to the Gauteng Innovation Hub s CoachLab, whereby Universities and companies combine to mentor students on industrial related projects for mutual benefit, or consider commercialization of technologies that result in start ups, i.e. the small, medium and micro economic enterprises (SMMEs( SMMEs) ) through the commercialization programme
23 How The Innovation Hub Functions. establish a research presence through laboratories or one or two of its Centres of Excellence at the Innovation Hub where it feels it has sufficient body of knowledge and competitive advantage to do so and where the R&D objectives of the Centres are aligned with that of the Hub and the companies that will be based there. This should also allow for post graduate students and post -doctoral fellows to create a strong interaction between varsity and the local business community.
24 USHEPiA IP Coordinator Universities Science Humanities and Engineering Programme in Africa (USHEPiA( USHEPiA) ) is a network of about 8 universities in southern and eastern Africa In 2005, USHEPiA recruited an IP coordinator whose major aim is to assist the universities set up IP policies This will improve the IP management within the Universities but further work still needs to be carried out by the national governments
25 International Patent Filings ,000 patent cooperation treaty (PCT) applications filed in 2005 This represented a 9.4% increase over those in 2004 Top 5 users of the PCT remained unchanged (US, Japan, BRD, France, UK) Korea overtook the Netherlands; China moved up to the 10 th position, dislodging Canada, Italy and Australia (WIPO, 2006)
26 International Patents Filing % Increase cont. Japan, Korea and China have led, accounting for almost ¼ of all international applications Since 2000, applications from these countries have risen by 162%, 200% and 212% respectively Australia 10.1% and Finland 11.6%
27 International Patent Filing % Increase Cont Japan Korea China Australia Finland
28 Developing Countries Patent Filing Applications from developing countries represent 6.7% of all international patent applications filed These experienced a 20% increase over the 2004 figures Top filers: Korea 4747; China 2452; India 648; South Africa 336; Singapore 438; Brazil 283; Mexico 136
29 Developing Countries Patent Filing Applications Cont Kr Ch Ind R.S.A. Sing Brz Mex
30 Companies Filing Patents In Leading Developed Countries COMPANY Philips Elect. N.V. Matushita Siemens Nokia Bosch Intel COUNTRY Netherlands Japan Germany Finland Germany U.S.A. PCT APPLICATION 2,492 2,021 1,
31 Companies Filing Patents In Leading Developed Countries continued BASF Germany 656 3M U.S.A. 603 Motorola U.S.A. 580 Daimler Chrysler Germany 567
32 The Right Environment Growth in the number of filed patents was attributable to: Improved economic conditions which brought about improved services and productivity Expanded use of Information Technology Developing countries lack virtually all of these
33 The Right Environment Cont. Quality of patent, as distinct from quality of underlying invention, is critical Quality of patent depends on skilled drafting of the patent application, and in particular, of the claims Claims are the heart of the patent application because they define the scope of legal protection.
34 The Right Environment Cont Only the technology covered in the claims is protected by the patent Counterfeiters produce copies that are hardly distinguishable from the originals Problems of counterfeiting is escalating as shown in the next figure
35 European Union Counterfeit Seizures (Comparison ) Percentile increase in number of articles seized Computer equipment (hard ware) Electrical equipment Food stuffs, alcoholic and other drinks Clothing and accessories Toys and games Audio CDs, games, software, DVDs, etc. Watches and jewellery Perfumes and cosmetics 899% 707% 197% 102% 47% 43% 27% 22%
36 The End Thank You
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