Networked Innovation: Solutions for Local and Regional Needs

1. Networked Innovation: Solutions for Local andRegional Needs Matt Rainey Director, Innovation Division World Intellectual Property Organization

2. Innovation Trends • Innovation Ecosystems • WIPO Innovation Division • WIPO Networked Innovation Projects

3. I. Innovation Trends

4. I. Innovation TrendsR&D Expenditure • Global R&D expenditure almost doubled in real terms from 1993 to 2009 • R&D spending: high-income countries • 70% of world total • 70 percent of the world total • 2.5% of GDP spent on R&D • >2X the rate of middle-income economies • R&D spending: low- & middle-income countries • Global share up 13% from 1993-2009 • >10% of this is from China (2nd largest R&D spender in 2009)

5. Source: WIPO, World Intellectual Property Report – The Changing Face of Innovation

6. Innovation Trends – Increasingly International • The innovation process is increasingly international in nature • Greater mobility of students, highly skilled workers and scientists • Increase in the share of peer-reviewed science and engineering articles with international co-authorship • Patents that list inventors from different countries • Multinational firms locating their R&D facilities in a variety of countries • The rising share of middle-income countries in the global economy is, in turn, reorienting innovation towards the demands of those countries

7. Innovation Trends – IP Ownership • IP ownership more central to business and innovation strategies on national and institutional level • Worldwide demand for patents has risen • Early 1980s: 800,000 applications/year • Dominated by Japanese filings • 1990s: increases driven by US, Korea • 2009: 1.8 million applications • Driven by Chinese filings

8. Innovation Trends – IP Ownership • 50% of filing growth in past 15 years due to subsequent filings (primary filings of the same invention in additional countries) • Larger numbers of international filings reflect greater economic integration

9. Source: WIPO, World Intellectual Property Report – The Changing Face of Innovation

10. Source: WIPO, World Intellectual Property Report – The Changing Face of Innovation Faster Patenting Growth for Complex Filings (both first and subsequent filings)

11. Source: WIPO, World Intellectual Property Report – The Changing Face of Innovation Faster Patenting Growth for Complex Filings (both first and subsequent filings)

12. Source: WIPO, World Intellectual Property Report – The Changing Face of Innovation Public Policies Supporting Commercialization of Publicly Funded Research

13. Source: WIPO, World Intellectual Property Report – The Changing Face of Innovation

14. Innovation Trends:Rise of Tradability of IP • Knowledge markets based on IP rights • On the rise, though still nascent • Tradability of IP: increasing • Companies, auctions, etc. • More frequent licensing of IP rights • International royalty and licensing fee (RLF) receipts • 1970: USD 2.8 billion • 1990: USD 27 billion • 2009: USD 180 billion • Outpacing growth in global GDP

15. Source: WIPO, World Intellectual Property Report – The Changing Face of Innovation

16. Innovation Trends:More Collaborative and Open • Is this perception correct? • Potential indicators: • R&D alliances • Co-patenting on international level

17. Innovation Trends:More Collaborative and Open Source: WIPO, World Intellectual Property Report – The Changing Face of Innovation

18. Innovation Trends:Changing by Sectors Source: WIPO, World Intellectual Property Report – The Changing Face of Innovation

19. Patent pool variations over time

20. ICT Industry Dominates Patent Pooling Trends

21. II. Innovation Ecosystems

22. Innovation Ecosystems • An innovation ecosystem is a framework of interconnected and interdependent public and private structural elements (policies, organizations, funds and people) and relationships • Role • To provide a framework and support structure for economies that are based and are leveraging on systematic creation, diffusion and use of new and economically viable knowledge for economic, social and cultural development of societies

23. INNOVATION ECOSYSTEM LEGAL FRAMEWORK ORGANIZATIONS AND PROCESSES HUMAN AND KNOWLEDGE CAPITAL FUNDING - Innovation Strategies/Policies - Laws and Regulations - Institutional Policies - Supporting Regulations - Bankruptcy Laws - Immigration Policies - Clusters - TTOs - IP Hubs - Incubators - Technology Parks - Intermediaries - Knowledge Markets - Interdisciplinary Professions - IP Experts - Specialists - Education - Trainings - Workshops - Commercial and Development Banks - Governments - Private Businesses - Foundations - Venture Capitalists - Business Angels

24. III. WIPO Innovation Division

25. WIPO Innovation Division – People International Staff fluent in 13 languages Various backgrounds and professional experience Private enterprises Legal Technical Government Diplomatic

26. WIPO Innovation Division: Expertise HUMAN AND KNOWLEDGE CAPITAL • Innovation Division • Expertise & Training • Patent Drafting • IP Valuation • IP Marketing • Successful Technology Licensing • IPR Management in Universities and PROs ORGANIZATIONS AND PROCESSES LEGAL FRAMEWORK FUNDING

27. WIPO Innovation Division: Activities HUMAN AND KNOWLEDGE CAPITAL Innovation Division Activities • R&D Networks - Colombia - Western Africa • TTO Project for Arab Region • Open Innovation Platforms ORGANIZATIONS AND PROCESSES LEGAL FRAMEWORK FUNDING

28. Countries where WIPO has implemented capacity-building programs Europe Arab Countries Central and Latin America Asia Pacific Africa

29. IV. WIPO Networked Innovation Projects

30. R&D Networks and IP Hubs (TTOs)

31. R&D Networks and IP Hubs (TTOs)Objectives Support for creation of indigenous solutions to local problems Foster scientific collaboration Improve technical results Optimize resource allocation Leverage economies of scale Reduce costs of research and IP protection, management and commercialization

32. R&D Networks and IP Hubs (TTOs)Elements Networks among R&D institutions conducting research in same scientific area IP Hubs providing IP & technology management services to all members From research to market Inter-institutional legal agreements at different levels

33. R&D Networks and IP Hubs (TTOs)Projects • Implemented in health R&D sector of 7 countries • Colombia • 6 Western African Countries • Cameroon • Central African Republic • Chad • Equatorial Guinea • Gabon • Republic of Congo • Target problem for current work • Neglected diseases with large human and economic effects • Malaria vaccine

34. R&D Networks and IP Hubs (TTOs) • Developed and sponsored by WIPO and Swiss Government donation (GIAN/RUIG: Foundation Geneva International Academic Network) • Networked collaboration with governments, academic institutions, NGOs • Colombia: • Superintendencia de Propriedad Industrial of Colombia • National Institute on Science and Technology (Colciencias) • Immunology Institute of Colombia Foundation (FIDIC) • Western African Countries • OAPI: Organisation Africaine de la Propriété Intellectuelle • CEMAC: Communauté Economique et Monétaire de l'Afrique Centrale(Executive Secretariat of the Economic and Monetary Community of Central Africa)

35. R&D Networks and IP Hubs (TTOs)Partner Professional Institutions Switzerland • HEI: Graduate Institute of International Studies of Geneva, University of Geneva • HEC: Hautes Études Commerciales, University of Geneva • STI: Swiss Tropical Institute, University of Basel • IMD: International Institute for Management Development, Lausanne • COHRED: Council on Health Research for Development, Geneva Central Africa • OCEAC: Organization for the Control of Large Tropical Diseases in Central Africa

36. R&D Networks and IP Hubs (TTOs)Characteristics and Benefits • Replicable model • Economies of scale • Efficient use of existing scientific, financial and management resources • Facilitate inter-disciplinary approach to scientific problems • Collaborative innovation opportunities • Higher level of protection, development and commercialization of research results by using professional services of the IP Hub • Improved return on investment

37. R&D Networks and IP Hubs (TTOs)Results • Successful model in Colombia • Metrics • 7 new patent applications based on networked research and innovation by members of the Health Sector R&D Network in Colombia • Government of Colombia has applied the same model in energy, agro-chemical and security sector • Good local commitment and follow-through • Western African Countries • No significant results to date

38. R&D Networks and IP Hubs (TTOs)Lessons Learned • Political commitment is essential • Colombian Government fully supported the Project • Regional network needs supranational or international entity • Coordination, monitoring and evaluation • Roles and responsibilities of all participating parties must be well defined in advance • Particularly for follow-up activities • Funding • Support for new infrastructure once seminal Project is complete • Should be negotiated as contractual obligation of the beneficiaries

39. R&D Networks and IP Hubs (TTOs)Lessons Learned (cont’d) • Coordination • Long-term vision • Plan ahead for replication of the model • Anticipate adjustments based on results and lessons learned

40. Assist certain Arab countries in creating an innovation infrastructure to support university-industry collaboration Algeria, Egypt, Jordan, Morocco, Tunisia Flexible framework Adjustable to needs of individual countries Leveraging the results of activities, reforms and investments already done by government Each country – different model Each country “owns” its operation Second Phase: Arab Region Innovation Network and Technology Market Currently under way TTOs in Arab Region Creating Solutions for Local Problems

41. Creation of Micro-ecosystem among beneficiaries Legal Framework Framework Project Agreement (in progress) Government, WIPO and African Development Bank Commitment Responsibilities Long Term Vision Institutional Policies Regional Network Agreement (in progress) Organizations and Processes Innovation Infrastructure – IP Hub Technology management processes Human and Knowledge Capital Professional capacity building, inter-sectorial training, education Funding Sponsorship of Project in all countries Long-term funding of newly established infrastructure Funding for regional Innovation network TTOs in Arab RegionElements

42. TTOs in Arab RegionTunisia Historical Setting Science and Technology Reforms in Tunisia: 1990-2010 • Law on Scientific Research and Technological Development (January 1996) • Set up conditions for creation of new laboratories and scientific units in universities • Improved management of research results in publicly funded research institutions • Improved protection of research results through IP system • Established high-level research and educational institutions and centers for applied science • Particularly in health sector

43. TTOs in Arab RegionTunisia Historical Setting IP System • Continued strengthening of IP protection & enforcement system • Incorporating most international treaties and relevant legal standards • Active role by Tunisian Industrial Property Office (INNORPI) • Innovation promotion • Technology transfer

44. TTO Project For Arab Region Tunisia Historical Setting –Research Laboratories 10x increase in number of R&D laboratories Chart 1. Increasing number of research laboratories in Tunisia in the period 1998 – 2009

45. TTO Project For Arab Region Tunisia Historical Setting –University Research Units 2.75x increase in number of University research units Number of newly developed research units at universities in the period 1999 – 2009

46. TTO Project For Arab Region Tunisia Historical Setting – Patents 2x increase in patents from R&D institutions Chart 3. Number of patents registered by R&D institutions in the period 2005 – 2009

47. TTOs in Arab RegionTunisia Looking Ahead National Strategy on Scientific Research and Innovation: 2009-2014 • Construct innovative high-technology economy • Increase sustainable growth • Increase opportunities for creation, innovation and employment • Foster environmentally sound economic activity • Generate advanced technologies for renewable energy • Increase expenditure devoted to scientific research • From 1.25 per cent of GDP (2009) to 1.5 per cent of GDP (2014) • Encourage large firms to devote 1% of their turnover to scientific research & technology innovation

48. TTO Project For Arab Region Specific Goals – Tunisia • Creation of technology parks in areas of competitive advantage and technological priorities • Information & communications technology (ICT) • Biotechnology • Agriculture • Textiles • Foster favorable environment for successful public-private partnerships • Through technology parks (existing and future)

49. Bizerte Gammarth Sidi Thabet Jendouba EL Ghazala Borj Cédria Sousse Monastir Gafsa Sfax Mednine Tunisian Technology Parks

50. TTOs in Arab RegionProject Partners • Core Project Partners – parties of Framework Project Agreement • WIPO (as executive agent) • Governments of participating countries • Donor partners • Arab Science and Technology Foundation (ASTF) • Other Partners • Potential contributors with expert experience in relevant areas • Professional associations • Scientific foundations • Private sector • Financial institutions • NGOs • International organizations • Other partners