20/11/2007

ROLE UNIVERSITIES ROLE UNIVERSITIES PLAY IN INNOVATION PLAY IN INNOVATION

AND ENTREPREURSHIPAND ENTREPREURSHIP

I N I N MazondeMazonde & J Jackson& J Jackson--MaleteMaleteOffice of Research & DevelopmentOffice of Research & Development

University of BotswanaUniversity of BotswanaJuly, 2007July, 2007

20/11/2007

Aim Of PresentationAim Of PresentationTo highlight the importance of innovation and To highlight the importance of innovation and technology commercialization as an instrument technology commercialization as an instrument of economic developmentof economic development

To highlight the university (To highlight the university (HEIsHEIs) role as ) role as knowledge knowledge centrescentres and or and or centrescentres of excellence of excellence for entrepreneurial developmentfor entrepreneurial development

To show how the linkage between the university To show how the linkage between the university and the government can lead to incubators and the government can lead to incubators stimulating small enterprisesstimulating small enterprises

20/11/2007

IntroductionIntroductionThe 21The 21stst Century economy is knowledge driven Century economy is knowledge driven and IP is increasingly assuming importance both and IP is increasingly assuming importance both at international, regional, national and even at at international, regional, national and even at institutional levels.institutional levels.IP regarded as a system that serves as a IP regarded as a system that serves as a catalyst for scientific, technological, as well as catalyst for scientific, technological, as well as social and cultural development.social and cultural development.Universities (Universities (HEIsHEIs) stand a better chance to ) stand a better chance to utilize and benefit from the IP system because utilize and benefit from the IP system because they are the heart of knowledge creation and they are the heart of knowledge creation and dissemination process.dissemination process.

20/11/2007

Why Commercialization for HE Why Commercialization for HE Institutions?Institutions?

In the US and Europe, around 60% of the economy is In the US and Europe, around 60% of the economy is knowledge driven (see slides 25 knowledge driven (see slides 25 –– 35)35)

Consequently, HEI in those countries take knowledge Consequently, HEI in those countries take knowledge and information seriouslyand information seriously

To foster universityTo foster university--industry linkage:industry linkage: It has become It has become essential at both institutional and national levels that essential at both institutional and national levels that appropriate mechanisms are put in place to identify, appropriate mechanisms are put in place to identify, protect, develop and commercialize IP resources. protect, develop and commercialize IP resources.

20/11/2007

Role of HEI In Commercialization Role of HEI In Commercialization (US and Western Europe)(US and Western Europe)

As a means to translate research findings As a means to translate research findings into products or solutions to societal into products or solutions to societal problems.problems.

Universities receive revenue stream from Universities receive revenue stream from TT in 2005, this was US$1bn for US TT in 2005, this was US$1bn for US institutions alone.institutions alone.

20/11/2007

Role of HEI In AfricaRole of HEI In AfricaConsequently, recent years have seen expansion Consequently, recent years have seen expansion in the no. of TT offices set up by universities to in the no. of TT offices set up by universities to manage this processmanage this process

In 2002, all Kenya universities pledged to In 2002, all Kenya universities pledged to develop an IP Policydevelop an IP Policy

Malaysian government instructed all of its 17 Malaysian government instructed all of its 17 public universities to establish an R&D and public universities to establish an R&D and Commercialization unitCommercialization unit

20/11/2007

Technology Transfer ProcessTechnology Transfer Process

TT is generally effected by means of IP licensing TT is generally effected by means of IP licensing agreements (contracts) between universities and agreements (contracts) between universities and private companies or publicly owned private companies or publicly owned commercialization agenciescommercialization agencies

Many stakeholders Many stakeholders –– students, researchers, students, researchers, private sponsors, technology transfer units, private sponsors, technology transfer units, national patent offices, the national patent offices, the gvtgvt, the public , the public

20/11/2007

Tech Tech TransfTransf Process contProcess cont……..

IP OFFICE(MTI)

RESEARCHER R&D INSTITUTION INDUSTRY

20/11/2007

TYPICAL TT SET UP IN LDC UNIVTYPICAL TT SET UP IN LDC UNIV

Usual Commercialization ProcessUsual Commercialization Process

UBResearcher

R&D Inst(ORD/UB)

UB OwnedLicensing Company

Start-upCompany(Industry)

20/11/2007

TYPICAL SET UP IN LDC UNIVTYPICAL SET UP IN LDC UNIV

The Botswana Scenario The Botswana Scenario –– Many StakeholdersMany Stakeholders

Dept of Trade and Industry(National Patent

Office)

Licensing Company

R&D Inst Start-upCompany(industry)

RESEARCHER

ARIPO OFFICE(Patent Searches)

20/11/2007

Strategic Institutional Strategic Institutional Commercialization ApproachCommercialization Approach

Step 1 in Step 1 in institutionaliinstitutionalizzinging IP management IP management is to formulate a clear and specific IP is to formulate a clear and specific IP policy.policy.

Step 2 is to set up the Intellectual Step 2 is to set up the Intellectual Property Office/Technology Transfer Property Office/Technology Transfer Office.Office.

20/11/2007

Strategic Institutional Strategic Institutional CommComm contcont……

Step 3 is to set up procedures that provide Step 3 is to set up procedures that provide support to researchers, for them to recognize support to researchers, for them to recognize when their inventions have potential commercial when their inventions have potential commercial wealth. wealth.

Step 4 is to embark on awareness raising Step 4 is to embark on awareness raising program on IP issues to academic and non program on IP issues to academic and non academic staff.academic staff.

20/11/2007

Issues In IP Awareness RaisingIssues In IP Awareness RaisingIP Policy to ensure that financial or other IP Policy to ensure that financial or other benefits of commercialization are distributed benefits of commercialization are distributed fairly and equitablyfairly and equitably

IP Policy to create incentives for researchers and IP Policy to create incentives for researchers and inventors inventors e.ge.g Kenya 40/60, Mal 50/50Kenya 40/60, Mal 50/50--75 & 75 & Botswana 40/60Botswana 40/60

Explain the need for balancing delay in Explain the need for balancing delay in publishing with the gains of patentingpublishing with the gains of patenting

20/11/2007

Issues In IP Awareness contIssues In IP Awareness cont……

Emphasize the need to interact with industry Emphasize the need to interact with industry (universities in the North have more experience (universities in the North have more experience in this than those in the South) in this than those in the South)

IP Policy to avoid legal jargon IP Policy to avoid legal jargon –– must be simple must be simple enough to be understood by all usersenough to be understood by all users

Start off with something very successful and use Start off with something very successful and use it to stimulate the interest of many researchersit to stimulate the interest of many researchers

20/11/2007

Patenting IP in African Patenting IP in African Universities Universities

Low numbers of filed patents in Africa not Low numbers of filed patents in Africa not indicative of low levels of innovation, indicative of low levels of innovation, pioneering research and engineering activitiespioneering research and engineering activities

Innovations in African universities go Innovations in African universities go unnoticed because of lack of IP awarenessunnoticed because of lack of IP awareness

Barriers to patenting include low R & D Barriers to patenting include low R & D funding levels by African funding levels by African gvtsgvts (<1% of GDP) (<1% of GDP)

20/11/2007

Patenting IP in African Universities Patenting IP in African Universities contcont……....

Lack of funds to finance patent Lack of funds to finance patent applications and patent maintenance (e.g. applications and patent maintenance (e.g. venture capital)venture capital)

Lack of IP professionals like patent agentsLack of IP professionals like patent agents

Lack of institutional framework like Lack of institutional framework like technology management offices within technology management offices within African universities and R&D institutionsAfrican universities and R&D institutions

20/11/2007

Situation Now Changing Because:Situation Now Changing Because:

Universities and R&D institutions in Africa Universities and R&D institutions in Africa are becoming more IP awareare becoming more IP awareDecision makers have started to see the Decision makers have started to see the need for increased funding of R&D in need for increased funding of R&D in Science, technology and innovationScience, technology and innovationIn the last decade, SADC countries set up In the last decade, SADC countries set up Ministries of Science & Technology partly Ministries of Science & Technology partly in recognition of this fact. in recognition of this fact.

20/11/2007

GvtGvt, HEI and Industry Link , HEI and Industry Link –– The The Incubator ConceptIncubator Concept

Innovation HubInnovation Hub

An Innovation Hub is a (S&T) park which An Innovation Hub is a (S&T) park which is set up to advance economic growth and is set up to advance economic growth and competitiveness by achieving value competitiveness by achieving value creation through technology based creation through technology based innovation. innovation.

20/11/2007

Innovation Hub Innovation Hub

S&T parks are believed to be the perfectS&T parks are believed to be the perfecthabitat for businesses and institutions of habitat for businesses and institutions of the global knowledge economy.the global knowledge economy.

20/11/2007

Innovation HubInnovation Hub…….cont.contBroadly, the objectives of an Innovation Hub can be stated as Broadly, the objectives of an Innovation Hub can be stated as being:being:1. to create a unique space and facilities where high1. to create a unique space and facilities where high--tech tech entrepreneurs, worldentrepreneurs, world--class business, education, research and class business, education, research and venture capital can meet, network and prosper,venture capital can meet, network and prosper,

2. to support the growth and 2. to support the growth and globalisationglobalisation of technologyof technology--led led entrepreneurs and business enterprises and to generate knowledgeentrepreneurs and business enterprises and to generate knowledge--based jobs, and,based jobs, and,

3. to increase the wealth of its community, promote a culture of3. to increase the wealth of its community, promote a culture ofinnovation and entrepreneurship and stimulate the competitivenesinnovation and entrepreneurship and stimulate the competitiveness s of its associated businesses and knowledgeof its associated businesses and knowledge--based institutions.based institutions.

20/11/2007

How The Innovation Hub FunctionsHow The Innovation Hub Functions

contract research work (consulting) or contract research work (consulting) or through the provision of a range of through the provision of a range of specialist support services such as specialist support services such as entrepreneur development, management entrepreneur development, management training, etc. This is a similar concept to training, etc. This is a similar concept to the the Emerging Business Support Emerging Business Support (EBS) (EBS) Center in the Kyoto Research Park in Center in the Kyoto Research Park in Japan.Japan.

20/11/2007

How The Innovation Hub How The Innovation Hub FunctionsFunctions………………..

HEI may consider developing a model similar to HEI may consider developing a model similar to the the GautengGauteng Innovation HubInnovation Hub’’s s CoachLabCoachLab, , whereby Universities and companies combine to whereby Universities and companies combine to mentor students on industrial related projects mentor students on industrial related projects for mutual benefit, or for mutual benefit, or consider commercialization of technologies that consider commercialization of technologies that result in start ups, i.e. the small, medium and result in start ups, i.e. the small, medium and micro economic enterprises (micro economic enterprises (SMMEsSMMEs) through ) through the commercialization the commercialization programmeprogramme

20/11/2007

How The Innovation Hub How The Innovation Hub FunctionsFunctions………………..

establish a research presence through establish a research presence through laboratories or one or two of its laboratories or one or two of its CentresCentres of of Excellence at the Innovation Hub where it feels Excellence at the Innovation Hub where it feels it has sufficient body of knowledge and it has sufficient body of knowledge and competitive advantage to do so and where the competitive advantage to do so and where the R&D objectives of the R&D objectives of the CentresCentres are aligned with are aligned with that of the Hub and the companies that will be that of the Hub and the companies that will be based there. based there. This should also allow for post This should also allow for post ––graduate graduate students and post students and post --doctoral fellows to create a doctoral fellows to create a strong interaction between varsity and the local strong interaction between varsity and the local business community.business community.

20/11/2007

USHEPiAUSHEPiA IP CoordinatorIP CoordinatorUniversities Science Humanities and Engineering Universities Science Humanities and Engineering ProgrammeProgramme in Africa (in Africa (USHEPiAUSHEPiA) is a network of ) is a network of about 8 universities in southern and eastern about 8 universities in southern and eastern AfricaAfricaIn 2005, In 2005, USHEPiAUSHEPiA recruited an IP coordinator recruited an IP coordinator whose major aim is to assist the universities set whose major aim is to assist the universities set up IP policiesup IP policiesThis will improve the IP management within the This will improve the IP management within the Universities but further work still needs to be Universities but further work still needs to be carried out by the national governments carried out by the national governments

20/11/2007

International Patent Filings 2005 International Patent Filings 2005

134,000 patent cooperation treaty (PCT) 134,000 patent cooperation treaty (PCT) applications filed in 2005applications filed in 2005This represented a 9.4% increase over This represented a 9.4% increase over those in 2004those in 2004Top 5 users of the PCT remained Top 5 users of the PCT remained unchanged (US, Japan, BRD, France, UK)unchanged (US, Japan, BRD, France, UK)Korea overtook the Netherlands; China Korea overtook the Netherlands; China moved up to the 10moved up to the 10thth position, dislodging position, dislodging Canada, Italy and Australia (WIPO, 2006)Canada, Italy and Australia (WIPO, 2006)

20/11/2007

International Patents Filing International Patents Filing % Increase 2000% Increase 2000--2005 cont2005 cont……. .

Japan, Korea and China have led, Japan, Korea and China have led, accounting for almost accounting for almost ¼¼ of all of all international applicationsinternational applications

Since 2000, applications from these Since 2000, applications from these countries have risen by 162%, 200% and countries have risen by 162%, 200% and 212% respectively212% respectively

Australia 10.1% and Finland 11.6%Australia 10.1% and Finland 11.6%

20/11/2007

International Patent Filing % International Patent Filing % Increase 2000 Increase 2000 –– 2005 Cont2005 Cont……

0

50

100

150

200

250

Japan Korea China Australia Finland

20/11/2007

Developing Countries Patent FilingDeveloping Countries Patent Filing

Applications from developing countries Applications from developing countries represent 6.7% of all international patent represent 6.7% of all international patent applications filedapplications filedThese experienced a 20% increase over These experienced a 20% increase over the 2004 figuresthe 2004 figuresTop filers: Korea 4747; China 2452; India Top filers: Korea 4747; China 2452; India 648; South Africa 336; Singapore 438; 648; South Africa 336; Singapore 438; Brazil 283; Mexico 136Brazil 283; Mexico 136

20/11/2007

Developing Countries Patent Filing Developing Countries Patent Filing Applications ContApplications Cont……

0500

100015002000250030003500400045005000

Kr Ch Ind R.S.A. Sing Brz Mex

20/11/2007

Companies Filing Patents In Leading Companies Filing Patents In Leading Developed CountriesDeveloped Countries

PCT PCT APPLICATIONAPPLICATION

COUNTRYCOUNTRYCOMPANYCOMPANY

2,4922,492NetherlandsNetherlandsPhilips Elect. Philips Elect. N.V.N.V.

2,0212,021JapanJapanMatushitaMatushita

1,4021,402GermanyGermanySiemensSiemens

898898FinlandFinlandNokiaNokia

843843GermanyGermanyBoschBosch

691691U.S.A.U.S.A.IntelIntel

20/11/2007

Companies Filing Patents In Leading Companies Filing Patents In Leading Developed Countries continuedDeveloped Countries continued

656656GermanyGermanyBASFBASF

603603U.S.A.U.S.A.3M3M

580580U.S.A.U.S.A.MotorolaMotorola

567567GermanyGermanyDaimler Daimler ChryslerChrysler

20/11/2007

The Right Environment The Right Environment

Growth in the number of filed patents was Growth in the number of filed patents was attributable to:attributable to:

Improved economic conditions which brought Improved economic conditions which brought about improved services and productivityabout improved services and productivity

Expanded use of Information Technology Expanded use of Information Technology

Developing countries lack virtually all of theseDeveloping countries lack virtually all of these

20/11/2007

The Right Environment ContThe Right Environment Cont……..Quality of patent , as distinct from quality of Quality of patent , as distinct from quality of underlying invention, is criticalunderlying invention, is critical

Quality of patent depends on skilled drafting of Quality of patent depends on skilled drafting of the patent application, and in particular, of the the patent application, and in particular, of the claimsclaims

Claims are the heart of the patent application Claims are the heart of the patent application because they define the scope of legal because they define the scope of legal protection.protection.

20/11/2007

The Right Environment ContThe Right Environment Cont……

Only the technology covered in the claims Only the technology covered in the claims is protected by the patentis protected by the patent

Counterfeiters produce copies that are Counterfeiters produce copies that are hardly distinguishable from the originalshardly distinguishable from the originals

Problems of counterfeiting is escalating as Problems of counterfeiting is escalating as shown in the next figureshown in the next figure

20/11/2007

European Union European Union –– Counterfeit Seizures Counterfeit Seizures (Comparison 2003 (Comparison 2003 –– 2004)2004)

Percentile increase in number of articles seizedPercentile increase in number of articles seized

22%22%Perfumes and cosmeticsPerfumes and cosmetics8827%27%Watches and jewelleryWatches and jewellery77

43%43%Audio CDs, games, software, DVDs, Audio CDs, games, software, DVDs, etc.etc.

6647%47%Toys and gamesToys and games55102%102%Clothing and accessoriesClothing and accessories44197%197%Food stuffs, alcoholic and other drinksFood stuffs, alcoholic and other drinks33707%707%Electrical equipmentElectrical equipment22899%899%Computer equipment (hard ware)Computer equipment (hard ware)11

20/11/2007

The EndThe End

Thank YouThank You