intellectual property management: key to successful r&d strategies muscat, february 16, 2005...
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Intellectual Property Management:Key to Successful R&D Strategies
Muscat, February 16, 2005
Intellectual Property and Economic Development Division
Roya Ghafele, e-mail: [email protected]
IP Management in R&D
Chart 2
Source:R.Ghafele
The Main Take Away
IP Management allows to better handle risks & uncertainties related to R&D & facilitates the interaction between the public & the private sector. Inadequate approaches to IP Management may hence be considered one of the major factors why the full potential of R&D remains unexploited.
Governments have different public policy choices at their disposal to manage IP. No matter which approach is chosen essential regulatory settings ask for a clarification of ownership of IP created, the establishment of IP Management Centers & apt financial schemes for and within public research institutions.
Oman is well aware of these trends; may however emphasize stronger on the IP Management dimension.
IP Management in R&D
Chart 3
Source:R.Ghafele
The Relevance of R&D for Prosperity
Approaches to IP Management in R&D
Framework of Action
AGENDA
IP Management in R&D
Chart 4
Source:R.Ghafele
R&D Activity in Selected Countries
, UNDP Human Development Indicators 2004
Country GDP/capitaAnnualGrowth Rate(‘90-’02)
R&DSpending in% of GDP(‘90-’01)
TertiaryScienceStudents(‘94-’97)
India 4% 20.3% 25%
Oman 2.2% 7.4% 31%
Iran 2.2% 18.5% 36%
Lebanon 3.1% 2.9% N/a
Egypt 2.5% 3.7% N/a
IP Management in R&D
Chart 5
Source:R.Ghafele
R&D is a Source of Wealth, yet Leveraging its Full Potential can be Challenging
Little knowledgeabout IP
No IP Management
Petrol based trade
Loneliness syndrome
R&D perceived asa luxury
Unclear mission ofuniversities
Brain DrainInsufficient cross-sectoral learning
, UN MDG Task Force on STI
FightsDesert- ification
Enhancesnutritionalpatterns
Improvespublic health
CreatesEmploy-ment
Engine of economic growth
Impact categories of R&D
IP Management in R&D
Chart 6
Source:R.Ghafele
The Relevance of R&D for Prosperity
Approaches to IP Management in R&D
Framework of Action
AGENDA
IP Management in R&D
Chart 7
Source:R.Ghafele
Intellectual Property is key in R&D
IPR&D
• Risky• Uncertain• Costly• Explorative• Complex
• Hedges against risk• Rewards discovery• Attributes ownership• Facilitates knowledge
trade• Codifies knowledge
IP Management in R&D
Chart 8
Source:R.Ghafele
R&D with and without IP protection
Not IP ProtectedR&D
IP protected
R&D
• Owner decides what to do with research: IP can be gifted, donated, sold, licensed
• Both basic and advanced R&D may be promoted
• R&D Findings are available for free to business
• Basic R&D may not get further developed
IP Management in R&D
Chart 9
Source:R.Ghafele
R&D Functions as a Public- Private Partnership,
where Interaction mainly Happens through IP
Return on
Investment
withEquity
Basicresearch
Applied research
Spilloversthrough IP
Markets of littlerelevance
Early stage product
development
Marketdriven
Bring productsto the
market
R
&
D
, Carlo Carraro
IP Management in R&D
Chart 10
Source:R.Ghafele
The Relevance of R&D for Prosperity
Approaches to IP Management in R&D
Framework of Action
AGENDA
IP Management in R&D
Chart 11
Source:R.Ghafele
Approaches to IP Management...Options for Managing the Profit Motive
Not for Profit Approach
CommercialApproach
Hybrid Public/ Private Approach
• Private & public funds
• IP donated for sake of enhancing public welfare
• Strong incentives for private investments in R&D
• Relies on market mechanisms to foster innovation
• Merges public & private sector expertise & investment
• Amalgam of commercial & non commercial mechanisms
, Antony Taubmann
IP Management in R&D
Chart 12
Source:R.Ghafele
… and Corresponding Basic Regulatory Settings
Predictable and Reliable IP Regulation
• Corresponding institutions that work efficient & effective• Clear ruling on who owns IP created in public research
Apt Financial Schemes
• Debt & equity Finance available on the basis of IP
• Granting schemes for obtaining IP protection
• IP as a funding criteria for advanced research
IP Management Centers within Public Research
• Act under public welfare paradigm
• Take away administrative burdens from researchers
• Promote IP aware research culture
• Trade IP in an equitable way
IP Management in R&D
Chart 13
Source:R.Ghafele
Possible Practical Next Steps
• Be very specific about the ownership of IP that is created within Public Research Institutions
• Build awareness among the R&D community of the advantages and possible pitfalls of using the IP system
• Expand the establishment of IP Management Centers within Public Research Institutions
• Allow researchers to get access to funding on the basis of IP
• Make IP protection affordable to everyone; either by bringing down costs or further fostering grants for the protection of IP