Transcript ProTon-Europe The pan-European network of Technology

Universities and Patents
From Open Science to Open Innovation
Gilles Capart
Chairman of ProTon Europe
Most pre-competitive R&D in Europe
is performed by PROs
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70% of all pre-competitive R&D is
performed by PROs (Public Research
Organisations)
70% of all US patents based on PRO
results (probably less in Europe)
Only 5% of innovations are attributed to
PROs in Europe
Knowledge transfer is not efficient in Europe
Ethical Forum, November 22, 2005
Universities and Patents
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Industry
Sponsoring
Public Funding
Education programs
Donations
RESEARCH
Discoveries
Ownership
PUBLICATION
Open Science Model
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Infrastructure
Scientists
The Open Science Model
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University does not retain any IP rights
(except citation and certain copyrights).
No incentive to invest in applications of
discoveries because of lack of protection.
Contribution to innovation is indirect only.
Innovation rests entirely on Industry.
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Ethical
Forum, November 22, 2005
T
Universities and Patents
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Should universities take an active
role in innovation?
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Growing pressure from the government authorities
Most countries in Europe have adopted Bayh Dole like
laws encouraging patenting and licensing by universities
An increasing number of funding programs are oriented
to possible economical applications (e.g. the FP
programs of the EC, the IOF program in Flanders, the
“Marshall” program in Wallonia, etc.
In the UK, the research assessment exercise will include
knowledge transfer indicators.
This trend is there to last. The recognition and
sustainability of the research function are at stake.
Ethical Forum, November 22, 2005
Universities and Patents
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R
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Industry
Sponsoring
Public Funding
Education programs
Donations
RESEARCH
Discoveries
Ownership
PUBLICATION
Open Science Model
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Public Funding
Economic Programs
EC FP
INVENTIONS
PROTECTION
Intellectual property
COLLABORATIVE
RESEARCH with
INDUSTRY
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New Products
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New Services
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Ethical
Forum, November 22, 2005
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Infrastructure
Scientists
PROOF OF PRINCIPLE
Licences
Royalties
SEED
CAPITAL
SCIENCE
INCUBATORS
SPIN-OFFS &
CAMPUS COMPANIES
The (Open) Innovation Model
Universities and Patents
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The role of patents
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Discoveries and ideas cannot be protected by patents.
Only their technical applications (inventions) can be
protected during 20 years. Disclosure must be enabling.
Patents serve 2 roles:
Protect investments in the development of the applications
 Publish the inventions to permit improvements and
research (research exemption).
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The registry of patents is the most useful
and comprehensive source of technology
Ethical Forum, November 22, 2005
Universities and Patents
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Why is patenting essential to
innovation from universities?
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Cannot rely on trade secrets.
Must publish without delay to participate in
worldwide open science network
Cannot exploit directly inventions, must
licence
Most inventions are early stage and need
improvements to become economically
attractive.
Patenting is the only way to reconcile
publication with innovation
Ethical Forum, November 22, 2005
Universities and Patents
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Conditions for using patents as
instruments of knowledge transfer
1. Should increase the probability that the
applications of a discovery be developed
2. Active search of licensees and license terms
compatible with public benefit (diligence, exclusivity
terms)
3. The returns must support innovation and
knowledge transfer (motivation of inventors and of
research teams)
4. The management of Intellectual Property and
patents must be carried out professionally.
Ethical Forum, November 22, 2005
Universities and Patents
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The overwhelming US Patent
advantages for universities
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First to invent concept, inventors rights are
protected.
Grace period of 1 year in case of disclosure by
inventors.
Continuations in part: improvements can be
added w/o being opposed prior filings.
Provisional patent applications
Inexpensive, with wide market coverage.
Easier to enforce.
European universities would be better off
filing patents in the US only!
Ethical Forum, November 22, 2005
Universities and Patents
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Comparison between USA and Europe
Output per institution
US
(n=218)
2002
EU
(n=107)
2002
EU
(n=92)
2003
Patents filed/yr
35.8
6.2
7.1
Active licensing contracts
120.2
17.1
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6,150.0
507.0
205
2.1
1.6
2.0
AUTM
ITTE
ProTon
Licence revenues (m€)
Spin-outs/yr
Source
Ethical Forum, November 22, 2005
Universities and Patents
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The licence model
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Very successful in the US since Bayh Dole Act
(1980) & because of different environment
 License revenues for PROs and inventors
 New products
 New companies
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Does not work well in Europe:
1. Ownership of results by PRO not yet
recognized as best practice in most countries
2. Patenting system much less efficient for
universities in Europe.
3. Not enough uptake by European Industry, most
deals are with non-European licensees: does
no support the European economy.
Ethical Forum, November 22, 2005
Universities and Patents
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The interaction model
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Fosters Innovation through Interaction.
Supports existing business models
Uses other forms of IP, such as know-how
and research tools
IP is used to leverage the research capability
of PROs
Compatible with University mission when:
 Contributes
to Science
 University can capitalize on foreground
 Fair share of returns
Ethical Forum, November 22, 2005
Universities and Patents
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Most results from Public Research
are melting down (published)
in the Ocean of Knowledge
Intellectual
Property available
for licensing
Collaborative
Research
Opportunities
Ocean of Knowledge
Ethical Forum, November 22, 2005
Universities and Patents
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The Spin-out Model
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Builds also on IP management and patents
Background technology used as platform to develop
new business concepts
Proof of principle by the researchers themselves
Development housed in company structure funded by
seed capital and virtual capital (state aid)
Contributes to rejuvenating the economy
Contributes to regional development
Slow process: more than 10 years for mature
companies
Works in Europe, but can be improved
Ethical Forum, November 22, 2005
Universities and Patents
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The two main routes of
knowledge transfer in Europe
Interaction model
Spin-out model
Existing business models
New business models
Improve interaction with
existing companies
Support creation of new
“spin-out” companies
Responsible Partnering
Medium term development
<10 Years
Ethical Forum, November 22, 2005
Long term rejuvenation
>10 Years
Universities and Patents
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The Innovation Model for PROs
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Knowledge Transfer from PROs in Europe can
be made effective only by the combination of 3
policies:
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IP management as common core
Interaction with industry for medium term
development
Creation of new companies for long term
rejuvenation of the economy.
Consistent with Open Innovation
From Licensing to Business Development
Very complex to manage and entails the
development of the knowledge transfer
profession in PROs.
Ethical Forum, November 22, 2005
Universities and Patents
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From Open Science to Open Innovation
1. Universities are getting organized to
manage their IP. First ownership of IP is
becoming good practice in Europe.
2. Innovation process is becoming interactive
and organized in networks. More
outsourcing from Industry. IP is much more
complex to manage.
3. Technology is overabundant, business
model is becoming more important than
technology lead.
Ethical Forum, November 22, 2005
Universities and Patents
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