Roles of Intellectual Property Rights in Economic Development

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Roles of Intellectual Property Rights in Economic Development and Integration Yumiko Hamano Project Coordinator WIPO University Initiative Innovation and Technology Transfer Section, WIPO Skopje, April 1 – 3, 2009

Outline • WIPO • What are IP Assets? • Why IP matters? • Key players of IP • Globalization of IP and New Trends • WIPO Support

WIPO <Establishment> • One of 16 United Nations Specialized Agencies Dedicated to developing balanced WIPO • One of 16 United Nations Specialized Agencies Dedicated to developing balanced and accessible intellectual property systems that encourage and reward creativity and contribute to the economic and cultural growth to the benefit of human kind. • Head quaters located in Geneva • 184 Contracting States • Administration of 24 international treaties • Some 1, 200 employees © 2009 Yumiko Hamano

WIPO <Mandates and objectives> Promotion of IP systems and IP rights protection through cooperation WIPO Promotion of IP systems and IP rights protection through cooperation among states and in collaboration with other international organizations – Promoting a balanced IP system and realizing it development potential – Strengthening IP infrastructure, institutional and human resources – Progressive development of international IP law – Delivery of quality services in global IP protection system – Greater efficiency of mangement and support processes © 2009 Yumiko Hamano

WIPO < Core Activities> • Promoting understanding of IP and realizing its development potential • Legal and technical assistance and capacity building • Facilitating development of IP law and harmonization of it • Harmonizing national IP legislation and procedures • Providing services for international applications for industrial property rights • Facilitating dissemination and exchange of IP information • Facilitating the resolution of private IP disputes © 2009 Yumiko Hamano

What Are IP Assets? Creations of the mind: 1. Industrial property l l l l patents (inventions) utility models trade secret trademarks industrial designs geographic indications new plant varieties IP Assets © 2009 Yumiko Hamano 2. Copyrights

Fortune 500 Companies Over 80% of market value of Fortune 500 companies is based on their intangible assets Intangible assets (knowledge based assests) e. g. • Patents • Trademarks • Brand © 2009 Yumiko Hamano > Tangible assets (physical assests) e. g. • Real estate • Equippment • Cash

R&D Expenditure R&D/GDP (%) in 2006 Belgium 1. 83 Bulgaria 0. 48 Croatia 0. 87 Czech Rep. 1. 54 Denmark 2. 43 Germany 2. 53 Greece 0. 57 France 2. 1 Italy 1. 09 (2005) Hungary 0. 94 (2005) Netherlands 1. 66 Austria 2. 49 Poland 0. 55 Portugal 0. 83 Romania Finland Spain Sweden 3. 73 Turkey UK EU 27 EU 15 Japan USA 0. 45 3. 49 1. 2 0. 59 (2005) 1. 76 (2005) 1. 84 1. 91 3. 32 (2005) 2. 61 Source: eurostat © 2009 Yumiko Hamano

Innovation and Economic Growth The creativity and inventiveness of our people is our country’s greatest asset and has always underpinned the UK’s economic success. But in an increasingly global world, our ability to invent, design and manufacture the goods and services that people want is more vital to our future prosperity than ever. Innovation, the exploitation of new ideas, is absolutely essential to safeguard and deliver high-quality jobs, successful businesses, better products and services for our consumers, and new, more environmentally friendly processes. Rt. Hon. Tony Blair, Prime Minister Innovation Report 2003 © 2009 Yumiko Hamano

Economic Benefits of IP Macroeconomic level – – – – Increase GDP and competitiveness Enhance exports of high value Stimulate R&D Reduce brain drain by providing incentives Help address national human needs Develop national brand cultural identity Attract beneficial FDI and local investment Job creation © 2009 Yumiko Hamano

Economic Benefits of IP Microeconomic level – Create portfolios of IP as a source of competitive advantage – Enhance products and promote brand value – Enhance corporate value – Avoid and defend against litigation – Provide incentives and recognition © 2009 Yumiko Hamano

IP Strategy should be established in line with the legal, economic, educational and R&D policies of the nation, such as: – – – – Legal system Economic and Industry Infrastructure Science, Technology, and Innovation Financial System Trade policy Culture and education Infrastructure © 2009 Yumiko Hamano

IP and Economic Growth Cycle University and R&D Research IP (Invention) as a result of Research © 2009 Yumiko Hamano Patent Filing & Decision of protection Start-up/ Economic Growth Further Investment in R&D Invention Disclosure Patent Grant Marketing Spin-off Profit Generation Commercialization Licensing-out

University Roles In the past…. • Education • Generate new knowledge through research • Transfer the knowledge generated to the public for the benefit of society © 2009 Yumiko Hamano Today, additional roles of universities • Financial support for research • Commercialization of research results • Increased collaboration with industry • Entrepreneurship development • Technology Marketing

University-Industry Collaboration Infrastructure Universities and R&D institutions • IP Policy • R&D Policy • TTO • Research Projects Government • Economic Development (SME Policies, market creation • National IP Infrastructure (laws and Regulations) • Enforcement • IP Strategy IP Assets Industry • Research Funds • Research Collaborations • Licensing • R&D Enhancement • Marketing • IP Education • Commercialization • Research Funds © 2009 Yumiko Hamano

New Innovation Concept <Open Innovation> Open innovation is described as: “combining internal and external New Innovation Concept Open innovation is described as: “combining internal and external ideas as well as internal and external paths to market to advance the development of new technologies” Source: Chesbrough, Henry, Open Innovation, 2003 © 2009 Yumiko Hamano

Open Innovation Models: • Lilly • Du. Pont • Apple • Novartis • IBM • P&G These companies have realized the power of admitting that not all good ideas start at home. Making network innovation work involves cultivating contacts with start-ups and academic researchers, constantly scouting for new ideas and ensuring that engineers do not fall prey to “not invented here” syndrome, which always values inhouse ideas over those from outside. (The Economist, Lessons from Apple. 09/06/2007) © 2009 Yumiko Hamano

Change in Merck’s approach Merck is a Company commited to significant internal scientific research, but its 2000 annual report noted that: “Merck accounts for about 1 % of the biomedical research in the world. To tap into the remaining 99 %, we must actively reach out to universities, research institutions and companies worldwide to bring the best of technology and potential products into Merck” (Chesbrough, Henry, Open Innovation, 2003) © 2009 Yumiko Hamano

Implications for Developing Countries Universities and research centers – Increased chances of participation in the new model as providers of new technologies – Need to develop skills to protect and commercialize their IP assets Local national firms – Need to increase their IP portifolio in order to compete – Need to collabrate with other enterprises Multinationals operating in DCs – Increasingly consider business models which include the development of knowledge outside their headquarters – Need to integrate local capabilities. © 2009 Yumiko Hamano

IP Divide. . . • 91% of patents are from OECD countries, >85% from EU, Japan and US • PCT filings and national patent filings in developing countries are by non-residents primarily © 2009 Yumiko Hamano

Newly Required Skills • Professionals capable of implementing strategies for the protection and commercialization of technology taking into account new models of innovation • Professionals capable to circulate in the scientific and technological arena, as well as in the business world. They should also be able to understand the logic of both worlds to make the links needed for the improvement of innovative outcomes. WIPO - Beatriz Amorim, March, 2008 © 2009 Yumiko Hamano

Key to Success AUTM U. S. Licensing Activity Survey 2006: “The success of Technology programs is reliant upon staffing which includes licensing staff and administrative staff. Conditions have to be created to increase the number of technology transfer experts” © 2009 Yumiko Hamano

ITTS’ s Mission Statement To effectively support Member States, in particular developing countries and countries in transition, to enhance and strengthen their capacity for local development, ownership, accumulation, management, use and commercialization of IP as an economic asset for the benefit of their nationals. © 2009 Yumiko Hamano

From Research to Commercialization GOVERNMENT National IP Strategy WIPO University Initiative Program R&D Network R&D University IP and technology Management © 2009 Yumiko Hamano Protection Licensing Patent Drafting STL Commercialization Valuation Marketing

ITTS Activities 1. Assisting research institutions in Setting IP infrastructure and their IP Assets management capacity building – – – 2. National IP Policy Institutional IP Policy and procedures Patent Drafting Technology Licensing Valuation Marketing Creating a forum among research institutions – – WIPO University Initiative program R&D Network © 2009 Yumiko Hamano WIPO - Beatriz Amorim, Março, 2008

National IP Strategies Objectives: To assist Member States in National IP Auditing in view of formulating and implementing National IP Strategies in line with their national social and economic goals Target audience: Senior Policy makers, representatives of universities and R&D institutions and private sector (SMEs, Chamber of Commerce…) Key deliverables: • Creation of an interdisciplinary body at a National level, focusing on benefits derived from strategic use of IP Assets • National Audit Report as a basis of formulating National IP Strategy © 2009 Yumiko Hamano

Institutional IP Policy and IP Management Objectives: • To build knowledge of effective management of IP and technology generated by a university or R&D institution • To provide universities and R&D institutions with solid framework and guidelines of IP and Technology Management Target audience: IP and technology managers, scientists, researchers, managers of universities and R&D institutions Expected key deliverables: • Clear understanding and development of Institutional IP Policy and the key issues: » Ownership » Revenue sharing » Commercialization processes » Technology Transfer Office » Incentive etc. • Clear understanding of effective IP and Technology Management Procedures © 2009 Yumiko Hamano INTELLECTUAL PROPERTY POLICY AND PROCEDURES FOR RESEARCH INSTITUTIONS: Ten Key Questions

Patent Drafting Objectives: • To fill a critical shortage of persons skilled in drafting patents in developing counties Target audience: Scientists, researchers, technology managers, inventors and attorneys with technical background, who will be drafting patents in the future Expected key deliverables: • Clear understanding of scope of patents • Knowing structure of patent documents and patent application procedures • Determining what, when, how and where to patent • Claim designing and drafting skills © 2009 Yumiko Hamano

Licensing Negotiation Training Program Objectives: • To make licensing accessible tool for technology transfer and business in emerging and developing countries • To broaden the scope of the users - not only the lawyers but researchers, business persons, SMEs • To empower potential users to recognize licensing business opportunities and risks • To provide solid base for practical application of the IP and licensing knowledge acquired Target audience: Scientists and Researchers, Business circle, Lawyers, Technology Managers, Funding institutions, SMEs Expected key deliverables: After completion of the courses participants are expected to be to: • • able Have have better understanding of technology licensing process (key terms of the agreement, mechanism of the licensing negotiation and drafting of contracts) Participate in licensing negotiation, © 2009 Yumiko Hamano

WIPO Support In the framework of WIPO University Initiative Program · WIPO Documentation Kit · Online IP Information databases · WIPO Distance Learning programs · Dynamic UIPC web page · Regular value-added information and communications · Customized training and seminars · Invitation to certain conferences/ meetings/ seminars · Electronic Forum · Networking (among UIPCs, regional and global) · Collaboration with Partner Organizations (IPOs, AUTM, PIPRA etc. ) © 2009 Yumiko Hamano

Other IP Supporting Activities • Development of customized training tools • Publications/ Studies/ Researches – – – © 2009 Yumiko Hamano IP Assets Management Series Institutional IP Policy Studies on specific sectors Best practices Case studies

Give a man a fish and you feed him for a day. Give a man a fishing rod, and he feeds himself and his family for as long as the fishing rod lasts. Help the man acquiring the means and knowledge to improve the fishing rod and build new ones, and he may feed himself and his society for years to come. - Old Proverb - © 2009 Yumiko Hamano

WIPO web site: www. wipo. int WIPO University Initiative web site: www. wipo. int/uipc/en yumiko. hamano@wipo. int