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GESTS423 Intellectual Property Management &

Technology Transfer Part II: Role of higher education institutes in

innovation processes Azèle Mathieu, PhD

February - June 2015

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You will work on a patent applied by a UNIVERSITY

WHY UNIVERSITIES APPLY FOR PATENTS?

© Azèle Mathieu

The missions of higher education institutions

GESTS423 – Technology Transfer – © Azèle Mathieu

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Mission 1: teaching KNOWLEDGE TRANSMISSION

Mission 3: contribution to society KNOWLEDGE CAPITALISATION

Mission 2: research

KNOWLEDGE CREATION

Increased importance of the 3rd mission

GESTS423 – Technology Transfer – © Azèle Mathieu

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Decrease of structural funds for HEIs

From a “closed” to an “open innovation” model

Emergence of some high-tech based fields

Knowledge-based society

Bayh-Dole act in the US in 1983

Regional decrees in Belgium at the end of the 90’s

Higher education

Industry

Long-term economic growth

Innovative capacity of countries

Mission 1: Teaching

Mission 2: Research

Mission 3: Contribution to society - economic development

?

?

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GESTS423 – Technology Transfer – © Azèle Mathieu

Importance of accrued interactions between different types of players: Triple Helix Model

GESTS423 – Technology Transfer – © Azèle Mathieu

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Source: Etzkowitz and Leydesdorff (2011)

Triple Helix Model of an innovation ecosystem - benefits for the industry

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Source: Arthur D. Little, Prism 02/2012

New ideas: from adjacent industries, from experts in a particular area, from a fresh approach

New people: often businesses transfer in transfer in academic staff for a period of secondment, or hire PhD students who complete industrial placements

Non-core science: access technology outside the bounds of existing R&D activities, at a low cost

First look: maintain a watching brief over new, emerging and potentially disruptive technologies

GESTS423 – Technology Transfer – © Azèle Mathieu

Triple Helix Model of an innovation ecosystem - benefits for higher education institutions

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Source: Arthur D. Little, Prism 02/2012

Get paid: financial rewards for academic researchers and the institutions they work in

Career progression: prestige associated with working with industry and new transferable skills

Stimulus of exposure to real-world problems: application of basic and applied expertise to practical challenges

GESTS423 – Technology Transfer – © Azèle Mathieu

Triple Helix Model of an innovation ecosystem - benefits for the government

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Source: Arthur D. Little, Prism 02/2012

Sustainable jobs: industry and academia working together creates new jobs

Economic growth: new jobs means a knock-on effect for the national economy, as people spend money

GESTS423 – Technology Transfer – © Azèle Mathieu

Different mechanisms to transfer knowledge from HEI to business sector

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Knowledge Transfer Mechanisms (KTMs)

“New” KTMs

Patents

Spin-offs

Contract-based consultancy

Contract-based research

Collaborative research

Traditional KTMs

Informal interactions

Conferences

Employment of graduates

Publications

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Informal interaction Formation of social relationships and networks.

Participation in conferences Active participation in conferences by presentation of research results.

Mobility of people It embodies the employment of graduates (B.Sc., M.Sc. or Ph.D. Level) in

the business sector, the employment of university staff/researchers in the

business sector, the trainees, the double appointments and the temporary

movement of university members to the business sector.

Cooperation in education It either covers the training of business employees by academics, either the

situation where the firm members influence curriculum of university

programs or give lectures at universities.

Cooperation in R&D Inter-organizational arrangements for pursuing collaborative R&D. It also

includes the joint supervision of PhDs and Master Theses by universities and

firm members and/or the financing of Ph.D. research by the business sector.

R&D services Activities commissioned by industrial clients. It includes contracted R&D

and consultancy.

Publications Use of codified knowledge within industry. It includes joint-publications

with the business sector and scientific publications of the academic

researcher.

Sharing of facilities It covers the sharing of facilities between academics and firm members or

the financing of new facilities with industry funding.

IP rights and licensing Transfer of university-generated IP (such as scientific research results,

patents, software, trademarks, databases) to firms, e.g. via licensing.

Academic spin-off companies Development and commercial exploitation of technologies pursued by

academic inventors through a company.

Data sources: Azèle Mathieu®, PhD Thesis (2011), adapted from Perkmann and Walsh (2007) and Bekkers and Freitas (2008) GESTS423 – Technology Transfer – © Azèle Mathieu

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Traditional, open sciences KTMs still privileged

New, formalised KTMs, not the most important

Patent, spin-off not the most important for academics; Business-funded contracts, important for academics

Data sources: Azèle Mathieu®, PhD Thesis (2011), own summary of surveys performed by Meyer-Krahmer and Schmoch (1998), Thursby and Thursby (2001), Schartinger et al. (2001), Agrawal and Henderson (2002), Cohen et al. (2002), Arundel and Geuna (2004), Landry et al.(2005), Brennenraedts et al. (2006), D’Este and Patel (2007), Bekkers and Freitas (2008).

Importance of KTM as perceived by their users

GESTS423 – Technology Transfer – © Azèle Mathieu

Income from partnerships activities across UK universities (2010-2011)

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For HE: IP revenues remain small compared to other types of revenues from other KTMs

GESTS423 – Technology Transfer – © Azèle Mathieu

Source: Arthur D. Little, Prism 02/2012 and HEFCE Higher Education – Business & Community Interaction Survey, July 2012

How do universities manage the 3rd mission? (1/2)

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New infrastructures:

● Technology Transfer Offices (TTO)

Making part of the university or independent

Legal – scientific – business advisors

Interacting with patent attorneys

● Patent fund

● Business incubators

● Dedicated investment fund

© Azèle Mathieu

How do universities manage the 3rd mission? (2/2)

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New rules:

● Ownerships of inventions

● Distribution of revenues

● Limitation of conflicts of interest

All these changes do not go without some tensions...

● Academic freedom

● Cultural differences

● ...

ULB-Technology Transfer Office

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Launched in 1991

Integrated in the university

~ 15 employees

Missions:

● Fundraising for research

● Management of interactions with the industry

● Management of the ULB’s Intellectual Property and its marketability

● Support to spin-off launching

Evolution of patents and spin-offs at ULB

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0

15

30

45

60

75

90

105

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135

150

165

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1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

# patents # spin-offs

Cumulative evolution # launched spin-offs Cumulative evolution # applied patents

Region's

decree

Inventions

belong to the

ULB

Spin-off Fund

Theodorus

Patent

Fund

ULB TTO

EEBIC

Solvay

Entrepreneurs

(1986)

Valorisation

Committee

Inventions from ULB: very specific fields, strength in biomed

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© Azèle Mathieu

Medical bioinformatics

Low Risk (50%) High Risk (50%)

Endoscopy

Orthopaedic

Anaesthesia monitor

Neurophysiology Prosthesis

Optics – Holographic Microscope

Intellectual Property regime @ ULB

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All inventions belong to ULB

Selectivity for quality patent applications:

● Contribution of the lab (2.500€)

● PCT applications to evaluate market perspectives

Patenting costs

3 thirds rule

No equity parts in exchange of licenses

Investment in spin-offs managed by Theodorus fund

RESEARCH INTELLECTUAL PROPERTY

Knowledge transfer @ ULB

Knowledge transfer @ ULB and your role

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In order to valorise a new invention towards the society there is a need for scientific, legal & business competences.

You will work and be considered as a business developer

Interacting with the scientific, legal and business advisors of ULB-TTO

In charge of developing a “Valorisation plan”

© Azèle Mathieu

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GESTS423 – Technology Transfer – © Azèle Mathieu

References (1/3)

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(2013). Big Bang Disruptions, Harvard Business Review

Chasm Institute. http://www.chasminstitute.com/METHODOLOGY/TechnologyAdoptionLifeCycle/tabid/89/Default.aspx

Chesbrough, H.W. (2003). Open Innovation: The New Imperative for Creating and Profiting from Technology. Harvard Business School Press.

Chesbrough, H.W. (2006). Open innovation: a new paradigm for understanding industrial innovation. In Chesbrough, H.W., Vanhaverbeke, W. and J. West (eds), Open Innovation:Researching a New Paradigm. Oxford University Press.

Christensen, C. (03/11/2012). A Capitalist’s Dilemma, Whoever Wins on Tuesday. The New York Times.

Cohen, W.M. and D.A. Levinthal (1990). Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35(1), pp.128-152.

Europe Enterpise Network, http://een.ec.europa.eu/

GESTS423 – Technology Transfer – © Azèle Mathieu

References (2/3)

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Etzkowitz, H. and L. Leydesdorff (2000). The dynamics of innovation: from National Systems and “Mode 2” to a Triple Helix of university–industry–government relations, Research Policy, 29 (2), pp. 109-123.

European Communities – Gate 2 Growth (2002). A Guide to Financing Innovation.

Geuna, A. (2001). The Changing Rationale for European University Research Funding: Are There Negative Unintended Consequences? Journal of Economic Issues, 35 (3), 607-632.

McKinsey Global Institute (2013). Disruptive technologies: advances that will transform life, business and the global economy.

Mowery D.C., Nelson R.R., Sampat B.N. and A.A. Ziedonis (2001). The growth of patenting and licensing by U.S. universities: an assessment of the effects of the Bayh–Dole act of 1980. Research Policy, 30 (1), 99–119.

OECD - Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, 3rd Edition.

GESTS423 – Technology Transfer – © Azèle Mathieu

References (3/3)

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Pavitt, K. (1980). Industrial R&D and the British economic problem. R&D Management, 10, 149.

Perkmann M. and K. Walsh (2008). Engaging the scholar: Three types of academic consulting and their impact on universities and industry. Research Policy, 37, 1884–1891.

Perkmann M. and K. Walsh (2009). The two faces of collaboration: impacts of university-industry relations on public research. Industrial and Corporate Change, 1-33.

Procter and Gamble, Connect + Develop http://www.pgconnectdevelop.com/home/pg_open_innovation.html

GESTS423 – Technology Transfer – © Azèle Mathieu

Additional slides

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GESTS423 – Technology Transfer – © Azèle Mathieu

Triple Helix Model of an innovation ecosystem - benefits for the industry

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Source: Arthur D. Little, Prism 02/2012

Types of academic consulting

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Source: Perkmann & Walsh (2008)

GESTS423 – Technology Transfer – © Azèle Mathieu