INNOVATION AND KNOWLEDGE TRANSFER: EU LEGISLATION

1. Workshop on the key role of patents in the transfer of knowledge in the knowledge-based economy Chamber of Commerce and Industry Serbia and Intellectual Property Office Terazije street 23, II floor Belgrade, Republic of Serbia 30 October 2012, 10.00 am INNOVATION AND KNOWLEDGE TRANSFER: EU LEGISLATION • Rebeka Rudolf, • Assist. Prof., Ph.D. developmentmanegarandleaderofresearchgroup Zlatarna Celje d.d. Slovenia • Senior researcher on Institute ofMaterialsTechnology – Universityof Maribor, FacultyofMechanicalEngineering

2. Innovation and knowledge transfer: EU legislation The aim of presentation: 1. Strategy EU 2020 2. Framework for the European Research Area 3. Innovation Union Example: own experiences within firm ZlatarnaCeljed.d.

3. 1. Strategy EU 2020 • create the conditions for a more competitive economy with higher employment; • is about delivering growth that is: smart, through more effective investments in education, research and innovation; sustainable, thanks to a decisive move towards a low-carbon economy; and inclusive, with a strong emphasis on job creation and poverty reduction; • the strategy is focused on five ambitious goals in the areas of employment, innovation, education, poverty reduction and climate/energy.

4. 1. Strategy EU 2020 Smart growth means improving the EU's performance in: education (encouraging people to learn, study and update their skills) research/innovation(creating new products/services that generate growth and jobs and help address social challenges) digital society (using information and communication technologies) EU targets for smart growth include: 1. combined public and private investment levels to reach 3% of EU's GDPas well as better conditions for R&D and Innovation 2. 75% employment rate for women and men aged 20-64 by 2020– achieved by getting more people into work, especially women, the young, older and low-skilled people and legal migrants 3. better educational attainment – in particular:– reducing school drop-out rates below 10%– at least 40% of 30-34–year-olds with third level education(or equivalent)

5. 1. Strategy EU 2020 • How will the EU boost smart growth? • Through 3 flagship initiatives: • 1. Digital agenda for EuropeCreating a single digital market based on fast/ultrafast internet and interoperable applications: • by 2013: broadband access for all • by 2020: access for all to much higher internet speeds (30 Mbps or above) • by 2020: 50% or more of European households with internet connections above 100 Mbps. • 2. Innovation Union • refocusing R&D and innovation policy on major challenges for our society like climate change, energy and resource efficiency, health and demographic change • strengthening every link in the innovation chain, from 'blue sky' research to commercialization • 3. Youth on the move • helping students and trainees study abroad • equipping young people better for the job market • enhancing the performance/international attractiveness of Europe's universities • improving all levels of education and training (academic excellence, equal opportunities)

6. 1. Strategy EU 2020 Why does Europe need smart growth? Europe's lower growth than its main competitors is largely due to a productivity gap caused in part by: lower levels of investment in R&D and innovation insufficient use of information/communications technologies difficult access to innovation in some sections of society Education/training Some 25% of European school children have poor reading skills Too many young people leave education/training without qualifications Numbers attaining medium-level qualifications are better, but the qualifications often fail to match labour market needs Under 30%of Europeans aged 25-34 have auniversity degree (40% in the US, over 50% in Japan) European universities rank poorly in global terms – only 2 are in the world top 20 (see Shanghai index (ARWU)) Ageing populations As Europeans live longer and have fewer children, fewer people in work have to support higher numbers of pensioners, as well as fund the rest of the welfare system. The number of over-60s is now increasing twice as fast as it did before 2007 – by some 2 million a year instead of 1 million previously. A better knowledge economy with more opportunities will help people work longer and relieve the strain.

7. 1. Strategy EU 2020 • Sustainable growth - for a resource efficient, greener and more competitive economy • Sustainable growth means: • - building a more competitive low-carbon economy that makes efficient, sustainable use of resources • - protecting the environment, reducing emissions and preventing biodiversity loss • capitalizing on Europe's leadership in developing new green technologies and production methods • - introducing efficient smart electricity grids • harnessing EU-scale networks to give our businesses (especially small manufacturing firms) an additional competitive advantage • improving the business environment, in particular for SMEs • helping consumers make well-informed choices.

8. 1. Strategy EU 2020 Inclusive growth – a high-employment economy delivering economic, social and territorial cohesion Inclusive growth means: - raising Europe’s employment rate – more and better jobs, especially for women, young people and older workers - helping people of all ages anticipate and manage change throughinvestment in skills & training - modernizing labor markets and welfare systemsensuring the benefits of growth reach all parts of the EU

9. 1. Strategy EU 2020 • How will the EU boost inclusive growth? • Through 2 flagship initiatives: • 1. Agenda for new skills and jobs • for individuals – helping people acquire new skills, adapt to a changing labour market and make successful career shifts • collectively – modernizing labor markets to raise employment levels, reduce unemployment, raise labor productivity and ensuring the sustainability of our social models • 2. European platform against poverty • ensuring economic, social and territorial cohesion • guaranteeing respect for the fundamental rights of people experiencing poverty and social exclusion, and enabling them to live in dignity and take an active part in societymobilisingsupport to help people integrate in the communities where they live, get training and help to find a job and have access to social benefits • Regional development and investment also support inclusive growth by helping disparities among regions diminish and making sure that the benefits of growth reach all corners of the EU.

10. 1. Strategy EU 2020 Digital Agenda for Europe- A Europe 2020 Iniciative Action 50: Leverage more private investment for ICT research and innovation Leverage more private investment through the strategic use of pre-commercial procurement and public-private partnerships, by using structural funds for research and innovation and by maintaining a pace of 20% yearly increase of the ICT (Information and Communication Technologies) R&D (Research & Development) budget at least for the duration of Frame work programme. Action 51: Reinforce the coordination and pooling of resources Reinforce the coordination and pooling of resources with Member States and industry, and put greater focus on demand- and user-driven partnerships in EU support to ICT (Information and Communication Technologies) research and innovation. Action 56: Member States to Engage in large-scale pilots financed by the Competitiveness and Innovation Programme (CIP) Member States should engage in large scale pilots to test and develop innovative and interoperable solutions in areas of public interest (that are financed by the CIP or other initiatives).

11. 2. Framework for the European Research Area COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIALCOMMITTEE AND THE COMMITTEE OF THE REGIONS Enhancing and focusing EU international cooperation in research and innovation: Astrategic approach EUROPEAN COMMISSION, Brussels, 14.9.2012 COM(2012) 497 final

12. 2. Framework for the European Research Area OBJECTIVES OF INTERNATIONAL COOPERATION International cooperation in research and innovation contributes to the broader policies of theUnion, as reflected in the Europe 2020 strategy, in supporting the following objectives: (a) Strengthening the Union’s excellence and attractiveness in research and innovation as well as its economic and industrial competitiveness – by creatingwin-win situations and cooperating on the basis of mutual benefit; by accessingexternal sources of knowledge; by attracting talent and investment to the Union; byfacilitating access to new and emerging markets; and by agreeing on commonpractices for conducting research and exploiting the results; (b) Tackling global societal challenges – by developing and deploying effective solutions more rapidly and by optimising the use of research infrastructures; and, (c) Supporting the Union’s external policies – by coordinating closely with enlargement, neighbour-hood, trade, Common Foreign and Security Policy (CFSP),humanitarian aid and development policies and making research and innovation anintegral part of a comprehensive package of external action.

13. 2. Framework for the European Research Area ‘Science diplomacy’ will use international cooperation in research and innovation as aninstrument of soft power and a mechanism for improving relations with key countries andregions. Good international relations may, in turn, facilitate effective cooperation in research and innovation. This Communication proposes to enhance and focus the Union's international cooperationactivities in research and innovation by using the dual approach of openness complementedby targeted international cooperation activities, developed on the basis of common interestand mutual benefit, optimal scale and scope, partnership, and synergy.

14. 2. Framework for the European Research Area ENHANCING AND FOCUSING INTERNATIONAL COOPERATION ACTIVITIES Openness in international cooperation The Union will continue to engage with countries and regions across the globe. This will allow the Union's researchers and innovators to engage on a stakeholder-driven basis with their counter parts worldwide: – Horizon 2020 will be fully open to participation from all over the world. – The European Research Council and Marie -Curie actions will operate on a fully researcher-driven basis, open to researchers from third countries. – The Research Infrastructures activity will have a specific focus on international cooperation. Its e-Infrastructures component has an inherent international dimension by supporting collaboration through digital means. – However, not all third country participants will be automatically eligible for funding. The list of countries eligible for automatic funding will be restricted, by complementing the current selection criterion. This will address the fact that some countries have established the critical mass needed to cooperate on a reciprocal basis with the Union. Similarly as for the industrialised countries, funding for participants from these countries continues to be possible in exceptional cases.

15. 2. Framework for the European Research Area – The more restrictive approach to automatic funding will be counterbalanced by increased efforts to facilitate the funding of participants through their national channels. – The Union will continue to encourage reciprocal access to third countries‚ programmes. The Horizon 2020 proposals allow for limiting the geographical scope of calls, for instance when the conditions for the participation of legal entities from Member States in the third country's programmes are considered to be prejudicial to the Union's interest. – Support for COST and EUREKA will encourage European networks of researchersto cooperate with their third country counterparts.

16. 2. Framework for the European Research Area Identifying areas for international cooperation Horizon 2020 focuses the Union’s research and innovation funding on a limited number of societal challenges and enabling and industrial technologies. In preparing work programmes for implementing Horizon 2020 (the Euratom programme being a part of this), international cooperation will be a key consideration. Areas for engaging with third countries will be identified in a systematic and coherent manner on the basis of an analysis of the Union vis-à-vis the rest of the world in line with the following set of criteria: – research and innovation capacity, including investment, output (publications, patents,citations, licensing), human resources and infrastructure; – risks of and opportunities for access to existing, new or emerging markets, and theirimpact on the Union's competitiveness; – contribution to the Union's international commitments, as reflected in theMillennium Development Goals, the post-2015 development framework, Rio+20, G20 and the international objectives of sectoral policies; and, – the legal and administrative frameworks in place, among the international partners,and where appropriate the Member States, to engage in cooperation, also includinglessons learnt from previous cooperation.

17. 2. Framework for the European Research Area Fundinginstruments Horizon 2020 will be the main instrument for implementing the Union's international research and innovation cooperation actions, complemented where appropriate with national funding. Targeted activities using the following instruments will implement the multi-annual road maps: – research and innovation projects where the participation of third country entities isrequired and/or taken into account during evaluation; – softer forms of cooperation such as networking between projects, clusters and/orprogramme managers; - joint initiativesinvolving the Union and international partners: • coordinated calls: launched and evaluated in parallel in the Union and the third country; • joint calls: launched, evaluated, selected and funded jointly by the Union and the third country; • contributions from the Union to funding programmes of third countries or international organisations to cover the participation of the Union's entities in those programmes; and, • specific initiatives requiring joint funding from the Union, Member States, Associated Countries, and/or third countries to ensure optimal scale and scope, implemented through ERA-NETsor other instruments.

18. 2. Framework for the European Research Area PROMOTING COMMON PRINCIPLES FOR THE CONDUCT OF INTERNATIONAL COOPERATION Union is well placed to play a leading role in promoting common principles for the conduct of international research and innovation activities in order to create a level playing field in which researchers and innovators from across the globe feel confident to engage with each other. These principles will deal with issues such as responsible research and innovation, research integrity; peer review of proposals; promotion of the role of women in science and the gender dimension in research, research and innovation; research careers (building on the European Charter for Researchers and the Code of Conduct for the Recruitment of Researchers); fair and equitable treatment of IPR; and open access to publicly funded research publications. A step has been taken with the establishment of the Global Research Council, a voluntary forum set up to share best practice and establish common principles in international cooperation.

19. 2. Framework for the European Research Area STRENGTHENING THE PARTNERSHIP WITH THE MEMBER STATES AND MAJOR STAKEHOLDERS The Union's international cooperation activities and those of the Member States need to beconsistent and complement each other. Deepening and strengthening the partnership betweenthe Commission and the Member States will therefore be an important element of the strategic approach. These efforts need to be stepped up as Member States' international cooperation activitiescontinue to be driven largely by national considerations rather than by developing prioritiesand strategies shared by the Union and its Member States. Accordingly: – The Member States will be involved in the identification of areas for international cooperation and the development of the multi-annual roadmaps; – The implementation of these roadmaps will involve preparing joint Union-Member States strategic research and innovation agendas, and involving Member States closely in their implementation; – The Innovation Union commitment to develop common guidelines for engaging inagreements with third countries, on issues such as scientific visas, IPR, ethical principles in research, the import and export of scientific samples and equipment, reciprocity and taxation will be followed-up. This will include building upon the ERA guidelines on IP management in international collaboration agreements as adopted by the ERA Knowledge Transfer Group.

20. 2. Framework for the European Research Area • CALL: CAPACITIES-Research for the Benefit of SMEs • Part B Cover Page Proposal full title: Proposal acronym: Type of funding scheme: Research for SMEs Name and organisation of the coordinating person: List of participants: • *Please use the same participant numbering as that used in section A2 of the administrative forms. Type of participants are SMEP, RTD or OTH, as in section A2. Slovenia covers the costs of project‘s preparation!

21. 2. Framework for the European Research Area 1: Scientific and/or technological excellence, relevant to the topics/activities addressed by the call 1.1 Soundness of concept and quality of objectives Describe the extent to which the proposed project addresses a specific scientific and/or technological problem or needs of the SME participants through outsourcing research activities to RTD performers. Provide a conclusive analysis of the competitive threat and specify clearly how the proposed work will enable the SME participants to improve their competitive position. SME participants should carry out research and/or demonstration activities to validate and exploit the research results provided by the RTD performers. Describe in detail the proposed project’s S&T objectives. Show the soundness of the concept: the objectives should be realistic and their achievement verifiable within the project, as the progress of the project work will be measured against these goals. Describe how the proposed project reflects the concept of "Research for SMEs" by offering a solution to SME participants in need of outsourcing research and development activities. 1.2 Innovative character in relation to the state-of-the-art Describe the international state-of-the-art on which the project’s approach is based, by means of a documentary study including, for example, literature, publications, patents, standards and data-base searches. Briefly describe the technical limitations of existing products /processes /services and include comments on competing techniques. 1.3 Contribution to advancement of knowledge / technological progress Describe the innovative character of the project and how the proposed project will enhance significantly the state-of-the-art in that area."Research for SMEs" aims at offering technological solutions to SMEs. Hence, with regard to innovation it is not a requirement to develop cutting edge technology at world class level. The adoption of existing technologies to new applications in a concrete SME business case is also worth considering here. In that sense 'State-of-the-art" is to be understood as advancement of knowledge or technological progress including a comprehensive description.

22. 2. Framework for the European Research Area • 1.4Quality and effectiveness of S/T methodology and associated work plan • i)Describe the overall strategy of the work plan and address the following activities in order to achieve the project's objectives: • Research, technological development and innovation activities. • Demonstration activities. • Other activities:Other activities facilitate the take-up of results by the SMEs, in particular by training, dissemination, knowledge management and IPR protection. The workplan should include these activities and should clearly demonstrate credible added value for the participating SMEs and coherence with the outcome of the proposed RTD work • Training activities are performed in general by the RTD performers and are aimed at technical and managerial staff from the participating SMEs. Training should focus on results/technologies generated by the projects. Training activities should normally not exceed 10% of the total eligible project costs. • Dissemination activities may include conferences, publications, workshops or web-based initiatives. • Knowledge management and IPR protection should support the participating SMEs in using the research results to their best advantage, leading to a clear economic impact. • ii)Show the timing of the different WPs and their components (Gantt chart or similar). • iii)Provide a detailed work description broken down into work packages. • iv)Provide a graphical presentation of the components showing their interdependencies (Pert diagram or similar) • v)Describe any significant risks, and associated contingency plans. A work package is a major sub-division of the proposed project with a verifiable end-point - normally a deliverable or a milestone in the overall project.

23. 2. Framework for the European Research Area 2. Implementation 2.1 Quality of the Consortium as a whole 2.1.1 Description of project management structure and procedures 2.1.2 Description of the consortium 2.2Appropriate allocation and justification of the resources to be committed 3. Impact. The potential impact through the development, dissemination and use of project results 3.1 Contribution, at the European and/or international level, to the expected impacts listed in the work programme under the relevant activity 3.2 Appropriateness of measures envisaged for the dissemination and/or exploitation of project results, and management of intellectual property 3.2.1 Project results and management of intellectual property 3.2.2 Dissemination and/or exploitation of project results 3.3 Innovation impacts 4. Ethics Issues

24. 3. Innovation Union Innovation Union → more jobs, improved lives, better society Innovation Union, turning ideas into jobs,green growth and social progress Why do we need an Innovation Union? We need to do much better at turning our research into new and better services and products if we are to remain competitive on the global marketplace and improve the quality of life in Europe. We are facing a situation of'innovation emergency'. Europe is spending 0.8% of GDP less than the US and 1.5% less than Japan every year on Research & Development (R&D). Thousand of our best researchers and innovators have moved to countries where conditions are more favourable. Although the EU market is the largest in the world, it remains fragmented and not enough innovation-friendly. And other countries like China and South Korea are catching up fast. The Innovation Union is a crucial investment for our future. For example, achieving our target of investing 3% of EU GDP on R&D by 2020 could create 3.7 million jobs and increase annual GDP by €795 billion by 2025.

25. 3. Innovation Union Innovation Union, keyinitiatives The Innovation Union containsover 30action points including ground-breaking proposals like the European Innovation Partnerships. For example, the pilot Partnership on active and healthy ageing aims to add an average of two years of healthy life for everyone in Europe . The Innovation Union also introduces the strategic use of public procurement budgets to finance innovation, a comprehensive Innovation Scoreboard based on 25 indicators and a European knowledge market for patents and licensing. European Innovation Partnerships are a new way of bringing together public and private actors at EU, national and regional level to tackle the big challenges we face such as climate change, energy and food security, health and an ageing population. These challenges also represent opportunities for new business and the Partnerships will aim to give the EU a first-mover advantage in these markets.

26. 3. Innovation Union Strengthening Europe's knowledge base Research and education nurture innovation. Europe would require at least one million more researchers in the next decade to reach the target of investing 3% of EU GDP on R&D by 2020. The Innovation Union proposes measures to complete the European Research Area by 2014. This means more coherence between European and national research policies, cutting red tape and removing obstacles to researchers' mobility. In education, the Commission will support business-academia collaborations to develop new curricula addressing innovation skills gaps. It will also support an independent ranking for universities.

27. 3. Innovation Union Key initiatives - action points in detail Promoting excellence in education and skills development Delivering the European Research Area Focusing EU funding instruments on Innovation Union priorities Promoting the European Institute of Innovation and Technology (EIT) as a model of innovation governance in Europe Enhancing access to finance for innovative companies Creating a single innovation market Promoting openness and capitalising on Europe's creative potential Spreading the benefits of innovation across the Union Increasing social benefits Pooling forces to achieve breakthroughs: European Innovation Partnerships Leveraging our policies externally Reforming research and innovation systems Measuring Progress

28. 3. Innovation Union Investment in research and innovation is at the heart of the Europe 2020 strategy,which is aimed at asmarter, greener and more inclusive economy delivering high levels of employment, productivity and socialcohesion. Private sector R&D investment plays a particularly important role in this strategy.

29. 3. Innovation Union Drivers and Policies: Most other factors have some relevance for innovation. Market research, launch advertising, and related marketing activities for new product introduction were rated before training to support innovative activities, acquisition of new or highly improved machinery, equipment and software, design (graphic, packaging, process, product, service or industrial), and outsourced R&D. For these activities, the importance in the EU was higher than in non-EU countries. There are differences between sector groups. Purchase and licensing of IPR and other knowledge in general was relatively more relevant for the high R&D intensity sector (especially pharmaceuticals & biotechnology and technology hardware & equipment). For oil & gas producers (low R&D intensity), purchase or licencing of IPR in non-EU countries was more important than inside the EU. Design was more important for many medium R&D intensity companies. It is also interesting to note that market research, launch advertising, and related marketing activities for new product introduction was rated less relevant for low R&D intensity companies than acquisition of new or highly improved machinery, equipment and software or training to support innovative activities. The reason for this may be that many companies in these sectors are very large and capital intensive. In fact, recent research suggests that the degree of use of Knowledge- Intensive Business Services (KIBS) is highly sector-specific and tends to increase with the R&D intensity of the sector considered.

30. 3. Innovation Union The survey also included a question on the importance of different ways of knowledge sharing for thecompany’s R&D and innovation activities, namely collaboration agreements and licencing. As shown inFigure, collaboration agreements were a more important way of knowledge sharing than licencing. Collaboration agreements with other companies, higher education institutions and Public ResearchOrganisationswere generally important sources of knowledge. Knowledge sharing with other companiesthrough collaboration agreements stood out as highly important for many low R&D intensity sectors(construction & materials, electricity, industrial metals & mining and oil & gas producers).

31. 3. Innovation Union

32. Example: own experiences within firm ZlatarnaCeljed.d. Our experiences in ERA-NET program 2007-2010:NanoStructured Metal CeramicComposites • Our experiences→ endorsed Eureka projects - 2004-2012: • E!3555 DEN-MAT, • E!3863 MET-STRI, • E!3971 BIO-SMA, • E!4213 NANO-FOILS, • E!4953 GO-NANO, • E!5831 CELL-TI, • E!6788 ORTO-NITI.

33. Example: own experiences within firm ZlatarnaCeljed.d. ALBREHT, Bojan, RUDOLF, Rebeka. Izboljšava postopka izdelave in kemijske sestave srebro-paladijeve dentalne zlitine s 64 masnimi procenti srebra : patent št. SI 23417 (A), 2012-01-31. Ljubljana: Urad RS za intelektualno lastnino, 2012. [18] str. ALBREHT, Bojan, RUDOLF, Rebeka. Izboljšava postopka izdelave in kemijske sestave srebro-paladijeve dentalne zlitine z 58.2 masnimi procenti srebra : patent : SI 23416 (A), 2012-01-31. Ljubljana: Urad RS za intelektualno lastnino, 2012. [18] str. ALBREHT, Bojan, RUDOLF, Rebeka. Izboljšava postopka izdelave in kemijske sestave zlato-paladijeve dentalne zlitine s 40 masnimi procenti zlata : patent : SI 23419 (A), 2012-01-31. Ljubljana: Urad RS za intelektualno lastnino, 2012. [18] str. ALBREHT, Bojan, RUDOLF, Rebeka. Izboljšava postopka izdelave in kemijske sestave zlato-paladijeve dentalne zlitine s 46 masnimi procenti zlata : patent : SI 23418 (A), 2012-01-31. Ljubljana: Urad RS za intelektualno lastnino, 2012. [18] str. RUDOLF, Rebeka, ALBREHT, Bojan, ZUPANČIČ HARTNER, Tjaša, STAMENKOVIĆ, Dragoslav. Postopek izdelave dentalnih zlitin z visoko vsebnostjo Au : patent : SI 22628 (A), 2009-04-30. Ljubljana: Urad Republike Slovenije za intelektualno lastnino, 2009. 15 f. RUDOLF, Rebeka, KRIŽMAN, Alojz, ALBREHT, Bojan. Postopek izdelave srebrnih trakov : odločba o podelitvi patenta SI 21916 A, datum objave 30.06.2006. Ljubljana: Urad Republike Slovenije za intelektualno lastnino, 2006. 5 f. [COBISS.SI-ID 9273366]

34. Example: own experiences within firm ZlatarnaCeljed.d. Jewels with protective Rh nanolayer on surface Dental casting Au alloys – Ceramic Alloys. Restorations: 4 Inlays

35. Example: own experiences within firm ZlatarnaCeljed.d. Photographs of the guinea pig skin following application of Zlatarna Celje alloy. Incorporation of alloy; Signs of mild erythema; Without erythema and oedema.

36. Au-Pt-Zn I Au-Pt-Zn II Comparison of the diffraction patterns: Au-Pt-Zn I and Au-Pt-Zn II alloys

37. Thanks for listening!