Economic Aspects of Technology Transfer and the Role of IP

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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
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