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RESEARCH REPORT PRESENTATION

RESEARCH REPORT PRESENTATION. JPO SIX MONTH STUDY CUM RESEARCH FELLOWSHIP PROGRAM OCT 2010 – MARCH 2011. Presentation by: MOHAMED FAIRUZ BIN MOHD PILUS INTELLECTUAL PROPERTY CORPORATION OF MALAYSIA. JIII (Japan Institute of Invention and Innovation) APIC (Asia-Pacific Industrial Center ).

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RESEARCH REPORT PRESENTATION

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  1. RESEARCH REPORT PRESENTATION JPO SIX MONTH STUDY CUM RESEARCH FELLOWSHIP PROGRAM OCT 2010 – MARCH 2011 Presentation by: MOHAMED FAIRUZ BIN MOHD PILUS INTELLECTUAL PROPERTY CORPORATION OF MALAYSIA JIII (Japan Institute of Invention and Innovation) APIC (Asia-Pacific Industrial Center ) Japan Patent Office INTELLECTUAL PROPERTY CORPORATION OF MALAYSIA

  2. IDEA OF RESEARCHER IN EARLY STAGE FOR LONG TERM PROGRAM – 17 Oct 2010 RESEARCHER INTEREST MECHANISM OF SUPPORT POLICY GOVERNMENT SUPPORT INSTRUMENTS OF MONITORING IMPLEMENTATION BENEFICIARIES/ TARGET GROUP RECEIVER MEASUREMENT OF SUCCESS

  3. RESEARCHER INTEREST JapaneseModel

  4. 12 REASON Resource-Led Economy Innovation-Led Economy Agriculture Based Economy Knowledge based Critical Success Factors • Technology • Market • Funding (risk capital) Basic Input Factors • Land • Labour Basic Input Factors Infrastructure Collateralized risk- free capital Labour MALAYSIA IS DEVELOPING COUNTRY The remarkable future that we can achieve together inMalaysia if we spark innovation, bring public and privatesector expertise together in the common good, focus ondelivery, have the courage to make the right choices forour country, and maintain our commitment to 1Malaysia.We have ambitious plans, but they are developed in thefull knowledge that we can meet our goals as a talented,innovative and skilled nation. National Mission: To Fulfill 1 LOOKING BACK, MOVING FORWARD Late 1990s to 2020 To move theeconomy up the value chain To raise the country’s capacity for knowledge, creativity and innovationand nurture “first class mentality” Toaddress persistent socio-economic inequalities constructively and productively Toimprove the standard and sustainabilityof ourqualityof life Tostrengthen the institutional implementationcapacity of the country Prime Minister Speech, National Chamber Of Commerce and Industry of Malaysia (NCCIM) Dinner; Kuala Lumpur, 12 February 2010 Endorsement for Economic Growth - * INNOVATION * PRIVATE SECTOR ROLE * INTELLECTUAL PROPERTY 2 1980s to mid 1990s The New Economic Model is the roadmap that will propelMalaysia into the future. We have, since independence,successfully transformed our nation from an agricultureeconomy into a modern industrial economy. The NEM seeksto put us back on track in our forward momentum. Wecannot afford to fall behind the curve in the pace, breadthand depth of change and reform lest we become anothervictim of the middle-income trap. 1957 to late 1970s 3 4 5 • Rewards are rapid • and sustainable: • Wealth creation • Employment creation • Societal well being Dato Seri Najib Tun Abdul Razak Grand Opening of Borneo Convention Centre Kuching, Sarawak 2 March 2010

  5. MILESTONES OF RESEARCHER Study on implementation of the Japanese Model for commercialization to outbreak innovation through technology transfer from universities to industries.

  6. Objectives/Directions for Study cum Research : RESEARCH THEME: Study on implementation of the Japanese Model for commercialization to outbreak innovation through technology transfer from universities to industries • The research will consist of the following steps: • Study the policies Government of Japan and its mechanism in supporting and • encouraging invention activities; • To study the implementation and instruments of monitoring in executing the • such policies at the implementing stage; • To study and understand how technology transfer office in Japan Universities works; • To understand possibilities of transferring technology from technology transfer • office to industries • Possible to made comparison between Japanese Model in intellectual property • management and commercialization activities of transfer technology office and • Malaysian practice in same issues; • Possible gives such recommendations in capacity building in improving functions of • technology transfer office for Malaysia TLO’s activities.

  7. Researcher Statement It is an honor and great opportunities for the researcher attended this fellowship program to get to know, study and understand of Japanese Model in this university-industry-government (U-I-G) linked that Japan had experience and went through. I had discover a lots of new things that beyond my imagination before came here in how Japan develop its own way in technology and innovation that later inspired and led to intellectual property based nation Fact to share Look East Policy On 8th February 1982, 4th Malaysia Prime Minister; Tun Dr. Mahathir bin Mohamad, six months after his in office announced Look East Policy. He announced an initiative to learn from the experiences of Japan (and Korea) in the nation-building of Malaysia. He considered that the secret of Japanese success and its remarkable development lies in its labour ethics, morale, and management capability. He felt a programme enabling that young Malaysians to learn in Japan would contribute to the economic and social development of Malaysia. 5th Joint Annual Conference of MAJECA/JAMECA" at Hilton Hotel, Kuala Lumpur, Malaysia, Keynote Address at the Seminar for the 20th Anniversary of the Look East Policy, Visit to Japan by Dato' Seri Dr. Mahathir bin Mohamad, Prime Minister of Malaysia, Tokyo, Japan, 12 December 2002 “We understand the desire of the Japanese to westernize its system. But when systems are suddenly changed, even if it is for the better, there will be severe disruptions. It is far better to stick to the system which worked. And the Japanese system had worked very well for the Japanese. It enabled Japan to recover rapidly from the destruction wrought by the war and it made Japan the second most powerful economy in the world. It may not be the Western way but it cannot be all wrong if it can achieve so much. If you must change, then change slowly to avoid too much disruption. Asians are looking East at Japan. Yes we can learn from your mistake, but we would rather learn from your success. The Japanese people as a whole must wake up and appreciate that the disaster that you face now is of your own making. Just as your post-war recovery was through your own way, you can recover now by your own way” http://www.mofa.go.jp/region/asia-paci/malaysia/pmv0212/speech.html This speech likely affirmed the decision makes by Prime Minister Junichiro Koizumi on February 2002 which makes Japan more revolving in technology and innovation creative works in future. The Japanese Premier declared that, “in order to enhance the international competitiveness of its industries, Japan needs to strategically protect and utilize the intellectual properties that are derived from research and creative activities”.

  8. National Efforts to Establish Japan as an Intellectual Property-based Nation Intellectual Property Policy Outline(July 3, 2002) Plan to promote the creation, protection, and exploitation of intellectual property POLICY 1. Promotion of the creation of intellectual property 2. Strengthening the protection of intellectual property 3. Promotion of the exploitation of intellectual property 4. Enrichment of human infrastructure First Stage Intellectual Property Strategic Program 2003 (July 8, 2003) Promotion of Integrated strategy Intellectual Property Strategic Program 2004 (May 27, 2004) Intellectual Property Strategic Program 2005 (June 10, 2005) Second Stage Basic Law on Intellectual Property (November 27, 2002) Intellectual Property Strategic Program 2006 (June 8, 2006) Contribution to soceity Establishment of “the stimulation of the intellectual creation cycle (creation, protection, exploitation)” as a national philosophy (basic principle) Intellectual Property Strategic Program 2007 (May 31, 2007) Intellectual Property Strategic Program 2008 (June 8, 2008) Creation R&D Infrastructure building for advancing Intellectual Property Third Stage Intellectual Property Strategic Program 2009 (June 24, 2009) Exploitation Business applications Protection Acquisition of patent rights Intellectual Property Strategic Program 2010 (May 21, 2010) Intellectual Property Policy Headquarters (March 1, 2003) Secretariat: PM Koizumi

  9. HOW’S IT WORKS CABINET [Cabinet Secretariat] POLICYCOORDINATION MONITORING REVIEW INTELLECTUAL PROPERTY STRATEGY HEADQUARTERS FORMULATIONPOLICY INTELLECTUAL PROPERTY STRATEGIC PROGRAM EXECUTION PROMOTION IMPREMENTATION METI Other Ministries Concerned MEXT JPO, INPIT, JIII, Other agencies concerned UNIVERSITIES MEASURE TECHNOLOGY TRANSFER Large Companies Startup Companies Small Companies

  10. Overview on strengthening and efforts of Japan Universities involvement in technology transfer program Efforts has been made in attracting Universities involvement of utilization of R&D activities since 1995 through Science & Technology Basic Law (195); follow by Act on TLO (1998) Intellectual Property Strategic Program 2002 gives further support, endorsement on importance of universities involvement in build up IP Nation based and strengthen measuring utilization of innovation and invention in Universities Institution Courtesy Hidekatsu KASHIWARA, Senior Consultant, Technology research Development, Chiyoda U-Tech Co. Ltd.

  11. Overview Technology Licensing Office [TLO] in Japan (2009) Number of Universities having its owned TLO’s is one-thirdonly 17 [7％ from number of Universities in Japan] In the Univ. 17 239 National Univ. 98 TLO in Universities Only 17 Univ. Univ. s 239 Private Univ. 107 Internal 16 (Waseda Univ. etc.) External 1 (TodaiTLO) TLOｓ 51 Public Univ. 34 (Under the Local Government entity) 24,049 TLO in Institutions & Industry associations only 9 Institutions TLO established at Local area 25 (Under the Local Government entity etc.) 1,500 Internal 7 (AIST etc.) External 2 (Industry associations) Source: hhtp://www.jpo.go。jp/kanren/tlo.htm

  12. OVERVIEW ON FUNCTION AND OPERATION OF TECHNOLOGY LICENSING OFFICE (TLO) Courtesy Hidekatsu KASHIWARA, Senior Consultant, Technology research Development, Chiyoda U-Tech Co. Ltd.

  13. Research Expenditures Total academic research expenditures ( for Science & Technology ) increased slightly to ￥2,289 billion in FY 2009. Cooperative Research Expenditures Contract Research Expenditures For 2009 Contract research expenditures - ￥165.5billion. Contract research support from industrial sources decreased slightly to ￥11.2billion. For 2009 Cooperative expenditures - ￥42 billion. Cooperative research support from industrial sources decreased to ￥29.5billion. Scholarship Donations for National Universities Scholarship donations for national universities decreased to ￥70.7 billion Sources : Survey Report University Technology Transfer Association

  14. Invention Disclosures & Patent Rights Invention Disclosures (all universities etc.) Patent Applications Filed (All universities etc.) Patent Applications in Japan Patent Applications Issued (all universities & TLOs ) The sum of Patent Applications Issued to universities & TLOs increased 43% from 944 to 1,347 in FY2009. Sources : Survey Report University Technology Transfer Association

  15. Licensing Activity Type of Licensee Key indices of University Technology Transfer in Japan (FY2005 ～2009) Sources : Survey Report University Technology Transfer Association

  16. POINT OF VIEW: SUCCESS OF JAPANESE MODEL SUPPORTING UNIVERSITIES IN TECHNOLOGY TRANSFER PROGRAM CONSISTENCY POLICY COORDINATION IMPLEMENTATION REVIEW Financial Assistance Promotion on Science & Technology Promotion on Intellectual Property Promotion Business Market Relates to Innovation Patent Licensing Advisor Patent Information Advisor Patent Information Database Patent Licensing Database Patent Technical Assistance – Research Tool, Patent Mapping Capacity Building – IP Personnel; Patent Attorney; IP Subject/Courses

  17. Overview on Malaysia’s Universities Currently, Malaysia has 20 Public Universities; 20 Private HEIs of University and 393 colleges. In encouraging research and development activities amongst Malaysia public universities, the Malaysian government classified public universities to three categories - research universities, comprehensive universities and focused universities. There are five (5) public universities that been recognized as research universities. In general, most of public university had established Intellectual Property Management Office (IPMO) which has different name of innovation centre. Few of them had also established transfer licensing office under IPMO. Malaysia Universities currently in developing and improvising its function in technology transfer activities

  18. MALAYSIA PROFILE GROSS EXPENDITURE ON RESEARCH AND DEVELOPMENT (GERD) GERD for 10 year period from 1996 (RM549.3 million) to 2006 (RM3.6 billion) - increased by about 6.6 times R&D Expenditure by Sector The private sector remains the major contributor to the GERD during the 10 year period. The private sector accounted for 84.9% and the public sector accounted for 15.1% of the GERD. Sources: The 2008 Report on the National Survey of Research & Development, MOSTI, Malaysia

  19. Expenditure by Type of Research - 2006 R&D Activities: – Expenditure (Percentage) Basic Research - RM411.4 million (11.3%), Applied Research - RM1.6 billion (45.1%) Experimental Development Research - RM1.6 billion (43.6%). Private Sector vs. Public Sector Expenditure - 2006 Private Sector Experimental Development Research– RM1.5 billion Applied Research - RM1.3 billion Basic Research - RM233.1 million Public Sector ExperimentalDevelopment Research - RM81.7 million Applied Research-RM290.3million Basic Research- RM178.3 million Sources: The 2008 Report on the National Survey of Research & Development, MOSTI, Malaysia

  20. WHY PRIVATE SECTOR INVEST MORE Basically, Malaysia is agriculture based nation then moving to industrial based nation – FOREIGN DIRECT INVESTMENT ; R&D spending in this type of industries are more which shown in 2006 R&D in the rubber and plastic products manufacturing industry accounted for 62.2% (RM1.9 billion) of the private R&D expenditure. Follow by manufacturing of motor vehicles, trailers & semitrailers industry with a spending of RM233.5 million (7.5%). Extraction of crude oil & natural gas and service activities constituting 4.6% (RM143.7 million) is the third place. R&D Expenditure by Major Industries 2006 MAIN CONTRIBUTOR FOR R&D ACTIVITIES IS FOREIGN COMPANY R&D Expenditure by Category of Company Revenue 2006 Sources: The 2008 Report on the National Survey of Research & Development, MOSTI, Malaysia

  21. R&D EXPENDITURE - UNIVERSITIES (INSTITUTE HIGH LEARNING –IHL) In 2006, Expenditure by Type of Research for IHL was spent on Applied Research (RM179.9 million). This was followed by Basic Research (RM133.7 million) and Experimental Development Research (RM47.2 million) Expenditure by Field of Research SOURCES OF FUNDS (2006) The top five FOR expenditure for 2006 1. Medical and Health Sciences (12.9%) 2. Engineering Sciences (12.8%), 3. Applied Sciences & Technology (10.2%) 4. Social Sciences (9.1%) 5. Chemical Sciences (8.0%) In 2006, the IHLs relied on their own funds as main source of RM239.3 million (66.3%). Second on Federal Government Funds with RM112.0 million (31.1%). Other sources of funds were Other Funds in Malaysia (RM5.1 million), Foreign Funds (RM2.7 million) and State/local Government Funds (RM1.8 million) Sources: The 2008 Report on the National Survey of Research & Development, MOSTI, Malaysia

  22. MALAYSIA UNIVERSITIES PARTICIPATION IN PATENT APPLICATION Sources: Intellectual Property Corporation of Malaysia (MyIPO)

  23. Lesson Learned: Improvisation for patent utilization

  24. THE END THANK YOU TERIMA KASIH

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