Intellectual Property Management: Key to Successful R&D Strategies

Intellectual Property Management:Key to Successful R&D Strategies Muscat, February 16, 2005 Intellectual Property and Economic Development Division Roya Ghafele, e-mail: roya.ghafele@wipo.int

The Main Take Away IP Management allows to better handle risks & uncertainties related to R&D & facilitates the interaction between the public & the private sector. Inadequate approaches to IP Management may hence be considered one of the major factors why the full potential of R&D remains unexploited. Governments have different public policy choices at their disposal to manage IP. No matter which approach is chosen essential regulatory settings ask for a clarification of ownership of IP created, the establishment of IP Management Centers & apt financial schemes for and within public research institutions. Oman is well aware of these trends; may however emphasize stronger on the IP Management dimension.

AGENDA The Relevance of R&D for Prosperity Approaches to IP Management in R&D Framework of Action

R&D Activity in Selected Countries , UNDP Human Development Indicators 2004

Engine of economic growth Creates Employ-ment Improves public health Enhances nutritional patterns Fights Desert- ification R&D is a Source of Wealth, yet Leveraging its Full Potential can be Challenging Brain Drain Insufficient cross-sectoral learning R&D perceived as a luxury Unclear mission of universities Impact categories of R&D Loneliness syndrome Little knowledge about IP Petrol based trade No IP Management ,UN MDG Task Force on STI

Intellectual Property is key in R&D R&D IP • Risky • Uncertain • Costly • Explorative • Complex • Hedges against risk • Rewards discovery • Attributes ownership • Facilitates knowledge trade • Codifies knowledge

R&D with and without IP protection • Owner decides what to do with research: IP can be gifted, donated, sold, licensed • Both basic and advanced R&D may be promoted IP protected R&D • R&D Findings are available for free to business • Basic R&D may not get further developed Not IP Protected R&D

R&D Functions as a Public- Private Partnership, where Interaction mainly Happens through IP Markets of little relevance Early stage product development Basic research R & D Return on Investment with Equity Spillovers through IP Applied research Market driven Bring products to the market , Carlo Carraro

Approaches to IP Management...Options for Managing the Profit Motive Not for Profit Approach Commercial Approach Hybrid Public/ Private Approach • Private & public funds • IP donated for sake of enhancing public welfare • Strong incentives for private investments in R&D • Relies on market mechanisms to foster innovation • Merges public & private sector expertise & investment • Amalgam of commercial & non commercial mechanisms ,Antony Taubmann

… and Corresponding Basic Regulatory Settings • Predictable and Reliable IP Regulation • Corresponding institutions that work efficient & effective • Clear ruling on who owns IP created in public research • IP Management Centers • within Public Research • Act under public welfare paradigm • Take away administrative burdens from researchers • Promote IP aware research culture • Trade IP in an equitable way • Apt Financial Schemes • Debt & equity Finance available on the basis of IP • Granting schemes for obtaining IP protection • IP as a funding criteria for advanced research

Be very specific about the ownership of IP that iscreated within Public Research Institutions • Build awareness among the R&D community of the advantages and possible pitfalls of using the IP system • Expand the establishment of IP Management Centers within Public Research Institutions • Allow researchers to get access to funding on the basis of IP • Make IP protection affordable to everyone; either by bringing down costs or further fostering grants for the protection of IP Possible Practical Next Steps

Intellectual Property Management: Key to Successful R&D Strategies