E
WIPO-IFIA/SEL/02/3
ORIGINAL: English
DATE: December 2002
INTERNATIONAL FEDERATION OF
INVENTORS’ ASSOCIATIONS
WORLD INTELLECTUAL
PROPERTY ORGANIZATION
WIPO-IFIA INTERNATIONAL SYMPOSIUM ON
THE COMMERCIALIZATION OF INVENTIONS
IN THE GLOBAL MARKET
organized by
the World Intellectual Property Organization (WIPO)
and
the International Federation of Inventors’ Associations (IFIA)
in cooperation with
the Korean Intellectual Property Office (KIPO)
and
the Korea Invention Promotion Association (KIPA)
Seoul, December 4 to 7, 2002
PARTNERING WITH VENTURE CAPITALISTS TO ACHIEVE GROWTH AND DEVELOPMENT
Document prepared by Dr. Finarya Legoh, Assistant to the Deputy Minister for
Science and Technology Diffusion Mechanism, Ministry for Research and Technology of
the Republic of Indonesia, Jakarta
1
S&T FACTS IN INDONESIA (1/3)
1. OECD: Globalization - Links between investment, productivity and
growth: greater investment can increase TPF (total productivity
factor)- R&D and S&T development play a crucial role in economic
growth
2. Government/regional governments should create motivation and
provide stimulation and facilitation, as well as build a conducive
environment to the development of a S&T system; so that the
government must define direction, main priorities, focuses and policies,
which is stated in THE NATIONAL STRATEGIC POLICY OF S&T
DEVELOPMENT
3. Priorities and policies must include strengthening the development of
basic science, strategic S&T, capacity-building of R&D institutions,
strengthening the development of technology-based industry, and
strengthening the capability of technology audit
2
S&T FACTS IN INDONESIA (2/3)
1. Function of Ministry for Research and Technology:
• define policies, direction, main priorities, focuses for
national development of S&T
• Coordinating RDE institutions, including set annual
budget through S&T sector within national budget –
0,54 % from total
• Accelerate linkages between R&D sector and industry –
such as: give incentives for R&D with different targets
accordingly
2. Total IPR risen significantly:
Year
Local
Abroad
1998
202
1785
1999
320
2808
2000
369
3772
2001
408
3
Strength of Regional Innovation (3/3)
Above
Average
Around
Average
Medan
Manado
Padang
Samarinda
Below
Average
Bandung JogjakartaSemarang Surabaya Mataram Makassar
Source : “PERISKOP PROJECT” 2001 - MRT
4
POLICY HIERARCHY FOR NATIONAL DEVELOPMENT OF S&T
Long term National
Guidelines
Short Term
Guidelines
S&T Nat Syst Law
GBHN 1999
No 18 / 2002
(Regulations for S&T
doers interaction)
PROPENAS
POLICIES
Jakstra
Ipteknas
2000-2004
STRATEGIES
MECHANISM
R&D
PROGRAM
TECHNICAL
ACTIVITIES
PUNAS
RISTEK
2001-2005
National
Research
Agenda
(Milestones, focus
industry)
5
KEY PERFORMANCE INDICATORS
- NATIONAL STRATEGIC POLICY OF
S&T DEVELOPMENT 1. Increasing S&T products within national and
international levels, including: prototype, intellectual
properties, and national standards
2. Improving the R&D products/results (including
innovations) which are applicable and utilized by the
community within national and international levels
through increasing and strengthening “technoindustrial cluster and techno-preneurship”
3. Increasing cooperation among R&D institutions and
business sectors
4. Improving the quality and quantity of S&T resources
6
S&T SYSTEM INSTITUTIONS
IPR Inst
Standardization Inst
Public Institutions
R&D Inst
Consultant Inst
Universities
Private
Sectors
Professional
Organization
Environmental Condition
Policy Making Inst
Consumer
Inst
Supervision
Inst
7
R&D ORIENTATION & MANAGEMENT
DEVELOPMENT FLOW
Research Capacity
Innovation Capacity
Tech Marketing
Tech Licensing
Tech Partnering
Venturing
Focus on research activities in
various scientific fields
(uncertainty, risk taking)
Focus on clusters of technologies and
scientific competencies/ino. impr
Active search for applications of
developed innovations, comm. gap
Gain additional value through patents
and licensing
Establish high-value collaborations
with business enterprises
Leverage intellectual property through
spin-off, equity positions, etc.
8
Identify
opportunities
Develop prospective
clusters of technology
roadmap
Building up network of
competency resources
Build procedure and
legal of technology
licensing
Build relations with
venture capital to secure
financing support
Help start-ups to
prepare business
concept
Support start-ups to
initiate business
Innovation Resource
Management
Strategic Technology
Marketing
Venturing
Technology
Services
 Develop
technology transfer
strategy
Provide support for
patenting of
innovations
Identify technology
transfer targets
 Support technology
transfer process and
negotiations
Develop and deliver
professional and
accountable services
Maintain customer
satisfaction
9
INCENTIVE PROGRAM FOR SUPPORTING
CAPACITY OF TECHNO-CLUSTER AND
TECHNO-PRENEURSHIP
•
•
•
•
•
•
•
•
•
NAT. STRATEGIC COMPETITIVE RESEARCH (RUSNAS)
COOPERATION COMPETITIVE RESEARCH (RUK)
TECHNOLOGY INSURANCE (ASTEKNO)
IPR STRENGTHENING INCENTIVES:
- PATENTS, INDUSTRIAL DESIGNS
- IPR CENTRE
- TRADITIONAL KNOWLEDGE PROTECTION
TECHNOLOGY AND MANAGEMENT STRENGTHENING
(SIPTEKMAN)
S&T EMPOWERMENT IN INCREASING REGIONAL
INVESTMENTS (PRIDA)
BUSINESS FORUM
TECHNOLOGY INFORMATION KIOSK (WARINTEK)
START-UP CAPITAL
-2003
-2000
-1995
-2001
-2000
-2000
-2002
-2001
-2003
-2003
-2001
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COOPERATION
COMPETITIVE RESEARCH
OBJECTIVES
(1/4)
To bridge and accelerate the gap between industry
(technology users) and R&D (technology suppliers)
To increase capability and competitiveness of
industry and investment on R&D activities
To create atmosphere of productivity, value added,
creation and innovation
To increase utilization of local technology by
industry
To minimize risks in R&D investments
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COLLABORATIVE MODEL
(RUK)
(2/4)
R&D institution (one/more) should have an agreement with the
industry partner (one industry/more) to implement the program
actively
Cost sharing between R&D institutions (funded by Government
through MRT) and industry partners
Industry partners are responsible to continue the activities after
finishing the RUK program (within 2 years), and to develop/apply
technologies produced by RUK
Royalty produced through IPR within RUK activities should be
shared appropriately including the amount of funding
Outcomes of post-RUK activities are evaluated by MRT
12
Example 1: BOGIE FOR TRAIN
COLLABORATION OF PRIVATE COMPANIES – UNIVERSITY –
GOV., R&D INSTITUTIONS (3/4)
1996 - 1997
STUDY / RESEARCH
1997 - 1998
DESIGN &
ENGINEERING
1998 - 2000
PROTYPING
DES 2000
RUNNING TESTS
ON ANGGREK TRAIN
FEB 2001 - AUGUST 2001
OPERATIONAL TESTS
ON ANGGREK TR.
Up to now has reached
more than 100.000 km
and no complains of
the performances
13
Example 2: DEVELOPMENT OF
BIOFERTILIZER INDUSTRY (4/4)
Biofertilizer
EMAS®
Collaboration among R&D Inst. (Bogor Plantation),
Semi-private R&D Inst., (Biotecnology Institution) and
Semi-Gov. Owned company (PT Nusantara Plantation
III, V, VII, VIII)
Competitiveness:
• reduce 50% of artificial fertilizer usage
• 20-40% < cost of fertilizers
• environment friendly
• can be used in all crops
• has been patented: No. ID 0 000 206 S.
• has been licensed by PT Bionusa and a
biofertilizer factory has been constructed and
operated in Purwakarta (West Java) – its capacity
5,000 tonnes/year
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TECHNOLOGY INSURANCE
(1/3)
 For new business/business that applys new/local
technology -- face critical period in the up-scaling
phase
To bridge mis-match risks between pilot scale and
commercial scale
Risks:
- Real risks - in general covered by insurance
company
- Speculative risks  not always covered by
insurance company, unless has specific
characteristics
Participants:
inventors, investors (industry esp. SMEs),
insurance company consortium, and MRT as a
facilitator
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TECHNOLOGY INSURANCE (2/3)
Technology
producers
(Inventors)
Prototype/
Pilot scale
Technology
ready for com
High
budgetting
Engineering
Phase (Upscaling)
Technolo
gy users
(Investors)
High Risks
of
investments
Techn. Insurance
16
TECHNOLOGY INSURANCE
(3/3)
The program started in 2001 and was implemented
successfully, and at the moment 3 packages were
given to 3 industries:
 development of Industry for Flower Seedling
(investment of US$61,000)
 development of Type B Gelatin Business as a byproducts from leather industry (investment of
US$103,500)
 development of Activated Bleaching Earth
Technology for Bentonit Refinement Industry
(investment of US$940,000)
17
WARINTEK
(Technology Information Kiosk) (1/3)
– Incentives to increase and to empower S&T
information by improving S&T information
access, developing IT quality and HR
competency for regional development, in order to
support SMEs development, includes:
1. S&T information services
2. Development of local/regional S&T
data-bases and packages
3. Training, HR capacity building in the field of
documentation, information, library, etc.
18
BUSINESS MODEL OF WARINTEK (2/3)
• Partnership between MRT and private providers - MRT’s
role: giving supervision/TA, management training and IT
content starter-package, and making sure that the program is
implemented properly according to terms and conditions;
provider’s role: provide funds for hardware investments,
technical assistance, S&T information development,
technical training (IT platform products and services),
internet access services
• The business model pattern is adopted - to create better
management, quality and standard of services
• This model is quite popular - approximate 2,300 outlets
within community (IT providers, universities, libraries,
regional governments)
19
WARINTEK (Warung Informasi Teknologi) (3/3)
( July 2002 = 2,358 kiosks in 30 Provinces; Target 9,000 by end of 2003 )
20
START-UP CAPITAL
(1/2)
• Technology commercialization process is in emergence phase, usually
need investment that is difficult to be given by a bank loan, because:
– Innovation products still don’t have reliable markets (innovation
based)
– Investment is needed in the long run
– New company usually doesn’t have track record (not solid business
road map) and minimal business system development (lack of qualified
management to develop business plan), as well as less physical asset
for collateral
• To develop technology-based industry in emergence phase - need earlystage financing to help new industry:
– To prove concept and develop business plan
– To develop products and to explore potential market
– To make limited production
21
START-UP CAPITAL
(2/2)
• Incentives given as seed capital to a new business applying domestic/
new technology
• Collaboration between MRT and PT PNM Techno-Venture
• At the moment very limited business candidates fulfil requirements of
investment through venture capital
• Proposals that not yet reliable for venture capital, will be re-evaluated
for start-up company incentives within 2-3 years - to bridge the gap
towards venture capital financing
• BPPT has a Research Institute for Incubator Technology - at the
moment has several tenants to be nurtured towards start-up companies
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The Ministry for Research and Technology of the Republic of
Indonesia
The Indonesian Inventor Association
Assistant to Deputy Minister for S&T Diffusion Mechanism Deputy for S&T Utilization and Socialization
Building II BPP Teknologi, 6th floor,
Jl. MH. Thamrin No. 8, Jakarta 10340
Tel: +62-21-316 9166–9, 391 6329
Fax: +62-21-310 1952, 391 6329
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