Prof. Hagit Messer-Yaron President, OUI hagitm@openu.ac.il Budapest, April 15, 2013 © Hagit Messer-Yaron, 2013 Universities at the 21st century “Intellectual and Economic Engines” – Calls for Academia-Industry Partnership © Hagit Messer-Yaron, 2013 University vs. IndustryContrasting Cultures: University Social responsibilities Basic, curiosity driven research Create new knowledge Freedom of research Publications & collaborations Sharing of material Open, global community and sharing of research results Corporate Shareholders responsibilities Applied research Develop new products Specific objectives, product focused Ownership and secrecy Control of material Aiming to global market © Hagit Messer-Yaron, 2013 The Death Valley Industry Academia " Death Valley" Products Science © Hagit Messer-Yaron, 2013 Bridging over the “Death Valley” – HOW? Modern relations between universities and industries: New venture formation/Spin-offs R&D agreements Licensing deals Traditional: Teaching and students practice Individual entrepreneurship © Hagit Messer-Yaron, 2013 Industry, university, government Researchers (people!), Faculties, Administration, etc. knowledge university Government money Technology/knowledgeTransfer knowledge industry Entrepreneurs VCs Productions Marketing Management Stocks holders © Hagit Messer-Yaron,etc. 2013 money The Role of Governments Financial support for academic, basic research. Public support is essential for academic freedom. 2. Intervention programs for “bridging the gap”. 3. Legal infrastructure: intellectual property rights (IPR) laws, Taxations, innovation law, etc. 1. IPR © Hagit Messer-Yaron, 2013 Lessons from IL experience – How to maintain top level Science together with successful High-Tech Industry? © Hagit Messer-Yaron, 2013 R&D statistics (1) The expenditure on civilian research and development (R&D) in Israel over almost 20 years, 1992-2011: *Provisional Data © Hagit Messer-Yaron, 2013 *2011 *2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 34 32 30 28 26 24 22 20 18 16 14 12 10 8 6 4 2 0 1995 NIS Billion 1. National Expenditure on Civilian R&D, at 2005 Prices 1995-2011 Source: ISRAEL CBS R&D statistics (2) The expenditure on civilian research and development (R&D) as a percentage of the gross domestic product (GDP) - 2009: © Hagit Messer-Yaron, 2013 Source: ISRAEL CBS R&D statistics (3) The expenditure on civilian research and development (R&D) per capita - 2009: © Hagit Messer-Yaron, 2013 Source: ISRAEL CBS Israel: Recent Nobel Laureates Dan Shechtman ,Chemistry, 2011 Technion Ada E. Yonath, Chemistry, 2009 Wiezmann Inst. Robert Aumann, Economics, 2005 HUJI Aaron Ciechanover, Chemistry, 2004 - Technion Avram Hershko, Chemistry, 2004 Technion Daniel Kahneman, Economics, 2002 - HUJI © Hagit Messer-Yaron, 2013 Higher Education in Israel Expanding system 1989/90: 21 HEI (8 universities + 13 colleagues), 88,800 students. 2010/11: 67 HEI, (8 universities + 36 academic colleagues, 23 pedagogical colleagues) 297,800 students. All HEIs are independent legal entities; All but NBC are heavily supported by the government. © Hagit Messer-Yaron, 2013 The 7+1 universities: •The Technion •The Hebrew University in Jerusalem •Tel Aviv University •Bar Ilan University •Ben Gurion University in the Negev •Haifa University •The Weizmann Institute •The Open University © Hagit Messer-Yaron, 2013 University vs. Colleague HEI PRO Research: Grants, Teaching & research: TT, Faculty, Teaching: Facilities, Graduate students Undergrad Inst. © Hagit Messer-Yaron, 2013 All Israeli research universities are in the top 500 of the Shanghai list © Hagit Messer-Yaron, 2013 In Israel: Government’s involvement mainly by intervention programs. Each university decides on its own policy and regulations independently. However, they share common principles. Each university has its own TTC. TTCs are for-profit companies, own by the universities. TTCs are handling universities IP and are responsible for commercialization, following the university’s policy. © Hagit Messer-Yaron, 2013 IP legislation (and more) in Israel The patent law (1967) defines “service invention” as one which has been invented by an employee as a result of his/her service to the employer. The law doesn’t cover many aspects of academic life, as: students, visitors, sabbaticals, retired stuff, etc. Thus, universities had to regulate it internally. No legislation w.r.to industrial R&D projects done in universities. It is up to the parties to agree on the conditions. In general, government doesn’t claim ownership of publicly sponsored research. © Hagit Messer-Yaron, 2013 © Hagit Messer-Yaron, 2013 The rules – main common principles: Researchers must disclose to the university any research of commercial potential. Universities own the IP of “institute inventions” (service invention). Institute inventions are discoveries of employees and others, related to the university. Institute inventions are commercialized solely by the TTC. Commercialization revenues are shared by the inventors (4050%; 50-60%) and the university. If the TTC chooses not to file for patent, the inventors can do it at their own expense. © Hagit Messer-Yaron, 2013 TTCs in Israel Weizmann Institute Yeda 1959 Hebrew University Yissum 1964 Tel Aviv University Ramot 1973 1980’s 1990’s © Hagit Messer-Yaron, 2013 1998 Tech. Transfer Company (TTC) mission Identify research results with commercial potential. File for patents and other propriety rights. Actively seek interested commercial entities and sign licensing agreements or establish spin-off companies. Collect royalties. © Hagit Messer-Yaron, 2013 The technology transfer process at TAU “Bridging the Gap” Discovery & Innovation Evaluation Patenting & Marketing Strategy Sponsored Research Business Development IDF Follow Up on Contract Revenues 40-20-40 Academic Basic and Applied Research publications © Hagit Messer-Yaron, 2013 To inventors Commercialization of KnowhowSurvey of technology transfer and IP companies 2008-2009 Approximately 400 new patent applications were filed each year in Israel and abroad by the TTCs(approximately 94% of total applications filed abroad). Commercialization of TTCs focus almost exclusively on inventions. Most of the revenues from sales of intellectual property (IP) and gross royalties received in 2009 came from Life Sciences and Medicine (approximately 92%). All the TTCs have affirmed that the main means of protecting IP is applying for a patent. © Hagit Messer-Yaron, 2013 Commercialization of KnowhowSurvey of technology transfer and IP companies 2008-2009 (cont.) Since their establishment, TTCs have been involved in the establishment of 151 startup companies, of which 44 startup companies are non-operational. In 2008-2009, approximately 1,000 IP invention disclosure reports were submitted by the researchers of various universities for examination by the TTCs; of those, the companies decided to protect approximately 700. Most commercialization done by the TTCs is to Israeli companies. Patent distribution by field: Diagram 1. New Patent Applications by Fields 250 193 200 157 150 76 86 42 22 96 100 65 32 50 10 0 Other Natural and Mathematics and Physical Sciences Computer Sciences 2008 © Hagit Messer-Yaron, 2013 2009 Engineering Life Sciences (including Medicine) International Comparison Country Israel Canada Australi a USA Years # of ID received # of invention disclosures for 1000 university researchers # of new patent app. # of new patent applications for 1000 university researchers # of patents granted Revenues from commercialization million euro 2008 - 2009 992 110 2008 1,613 25.9 2009 - 2008 1,300 21.2 2009 1,409 - 2008 17,694 - 2009 18,163 - 2008 3,800 23.2 2009 3,900 23.1 395 384 755 - 1,274 1,253 11,197 11,260 2,097 2,012 43.2 42.7 12.1 - 20.8 - - - 12.8 11.9 - - 346 - 595 600 2,933 3,088 653 827 314 367 38 - 50 43 1,712 1,279 155 99 UK Israel is internationally leading in ID, patents and revenues per researcher (about 200K euro commercialization income per a university researcher) © Hagit Messer-Yaron, 2013 How does it work? The (best) case of the Weizmann Institute © Hagit Messer-Yaron, 2013 Responsible technology transfer © Hagit Messer-Yaron, 2013 © Hagit Messer-Yaron, 2013 © Hagit Messer-Yaron, 2013 Selected TT Success Stories: Yeda, Yissum & Ramot (2009) Copaxone® | Teva Total sale of Weizmann based products €6 Bilion/year Rebif ® | Merck Serono Encryption Algorithm | NDS GeneCardsTM | XenneX NanoLubTM | Nanomaterials Exelon® | Novartis Dunaliella | Nikken Sohonsha Doxil ® | J&J QuantomiXTM | QX Capsule ErbituxTM | ImClone Cherry Tomatoes | BonTom Periochip | Dexcel Lipimix | Tubilux © Hagit Messer-Yaron, 2013 Academic institutions with more than 50 PCTs/year (2004) Univ. of California system Fraunhofer-Gesellschaft CNRS MIT Univ. of Texas California Inst. Tech. Johns Hopkins Univ. of Michigan Columbia Univ. Riken Univ. of Florida Hebrew Univ. Weizmann Institute Stanford © Hagit Messer-Yaron, 2013 297 182 146 131 96 84 76 74 68 67 67 56 54 54 Government’s involvement in university-industry relations Under the responsibility of the office of the Chief Scientist at the ministry of Industry, Trade and Labor (OCS). Different intervention programs for universityLOCAL industry collaboration. Restrictions on internationalization of knowledge created under these programs. © Hagit Messer-Yaron, 2013 Intervention Programs KAMIN 100% 60% 60% 90% © Hagit Messer-Yaron, 2013 Summary Most Israeli Universities had Technology Transfer policy and programs before the BDA of 1980. The government has not been involved in the universities TT policy and/or implementation. IL TT policy is (was) VERY successful, with top universities leading both in academic achievements (e.g., the Shanghai ranking) and in TT revenues. The key for success is a RESPONSIBLE technology transfer policy and implementation. © Hagit Messer-Yaron, 2013 Special THANKS to Amir Naiberg, CEO of Yeda, author of: http://www.yedarnd.com/images/pics/UserImages/24h.pdf hagitm@openu.ac.il © Hagit Messer-Yaron, 2013