-
-
This page is Public
-
Public
-
-
This page is Public
Intellectual property and universities and PRIs
The role of universities and public research institutes (PRIs) in innovation systems is complex, and has been and continues to be the subject of much discussion. Importantly, multiple channels exist by which public research can contribute to innovation, including via advice, consultancy and extension services, dissemination of research findings via publications. In addition, universities have a critical role to play in providing the skills needed for innovation. They have received substantial policy attention with regard to their role as innovators. However, with the exception of a few leading institutions in selected sectors (e.g. pharmaceutical, biomedical and software) and in some countries (notably the United States), universities and public research institutes have so far made minor direct contributions to innovation, and licensing revenues or income from spin-off activities have been modest (WIPO, 2011).
In emerging and developing countries this potential contribution has received particular attention since the business sector is often weak, while research capacities are concentrated in universities and PRIs. The potential benefits for innovation might thus be particularly attractive. University spin-offs can help to create an emerging innovative business sector. However, potential costs also have to be considered, particularly when considering the other key roles that universities and PRIs play in emerging and developing countries (Table 1.4). With weak business framework conditions the extension services provided to industry, for instance, might be equally relevant. In particular, the role of universities and PRIs in ensuring the wide dissemination of knowledge is critical and might be compromised if preserving novelty does not allow the immediate dissemination of findings.
Table 1.4 Impact of IP-based technology transfer policies on universities/public research institutes and firms

Source: WIPO (2011).
Another key issue is the impacts on research activities themselves. In order to address these concerns several recommendations have been made regarding reservation rights, such as research exemptions notably for research tools, to ensure inventions with a primary function to facilitate research remain accessible, as well as safeguards to ensure dissemination of technologies with humanitarian and social impacts. Furthermore, provisional patents and grace periods are legal devices that maintain an inventor’s right to patent an invention in the future, while not having to fulfil all necessary conditions immediately in terms of exact description and non-publicity before filing. These devices are well suited to inventions at a very early stage, when all properties have yet to be worked out and the inventor might wish to publish preliminary results in a scientific publication.
Fostering university spin-offs or licensing activities to increase the payoff of public research for innovation has proven challenging for developing, emerging and developed economies alike. This is because a variety of factors beyond granting IP ownership need to be in place for them to serve as an instrument for innovation. IP ownership is only a first step in a process that requires additional steps before inventions can be commercialised. The fundamental questions arising are: (i) incentives for researchers to obtain IP and engage in commercialisation activities, (ii) questions regarding the ownership of IP, (iii) TTOs and related service infrastructures, and (iv) the capacities of the private and public sectors to play their respective roles.
Incentives
Researchers’ incentive schemes are based on the publication track record of university science researchers rather than on IP and, even less, their commercialisation. The relative payoff given to IP over publications plays a key role. If publications result in higher returns than the returns from IP titles, then the IP incentive scheme provided will be weakened. However, as publications also support innovation systems, then it is not necessarily the case that all decisions should favour fostering IP titles. How IP is integrated into incentive schemes is an additional challenge. If researchers are rewarded for every patent application they file, the intended effect might not necessarily benefit high-quality innovation, as researchers might decide to file low-quality patents. Rewards for “quantity” rather than “quality” might even distort the nature of the inventions undertaken, favouring less relevant inventions over more fundamental ones. Furthermore, if no further rewards are available beyond those for IP granted, researchers might not provide often needed effective support for the commercialisation of their inventions.
Moreover, if legal or administrative barriers render participation in spin-offs difficult or costly, this will further reduce the incentives for researchers to fully participate in such activities and thus any potential success. To benefit from the innovation system, researchers must apply and use their knowledge. However, additional investments are often needed in order to progress from the invention phase to the commercial product. Common approaches involve licensing-out patented technologies or creating spin-offs. The latter approach depends on suitable market conditions, such as markets for technology, and on regulations. Some national regulations, for example, do not allow researchers who are public sector employees to create start-ups. Another barrier is the lack of flexible employment contracts among researchers, as e.g. contracts allowing sabbaticals without compromising university career paths.
A further issue is the need to raise awareness among researchers, as commercialisation of knowledge does not form part of the core activities of many researchers. Providing information on opportunities and rewards is often critical and cannot be taken for granted (Zuniga, 2011).
Ownership
A fundamental issue is the way in which IP ownership of universities and research universities is handled. This determines incentives for researchers and universities, both in terms of applying for IP and seeking commercialisation. Among the different approaches adopted, many are influenced by the 1980 Bayh-Dole Act, which instituted a uniform patent policy across US federal agencies and removed many restrictions on licensing. The Act allowed universities to own the patents produced from research financing by federal research grants. Bayh-Dole also stipulated that researchers working on federal research grants are required to disclose their inventions to the Technology Transfer Office (TTO), which then takes a decision on whether or not to patent the innovations. Similar legislation was passed in almost all OECD countries in the 1990s and early 2000s, replacing previous systems including the “professor’s privilege”, whereby inventors could decide for themselves whether or not to patent an invention they owned. If research institutions do not receive returns from inventions of their professorial staff, they have only limited incentives to provide them with support, particularly to produce commercial products out of IP. At the same time, evidence on the impacts of Bayh-Dole and related legislation in developed countries shows that more efforts are required to ensure successful commercialisation strategies by universities and PRIs (Geuna and Nesta, 2006; Mowery et al., 2001) (see Bayh-Dole and related regulation).
TTOs
One way to provide such support is through the creation of TTOs (see Technology transfer offices). These offices help support adequate linkages between universities and the private sector to develop innovations. This is a vital first step since the success of such links often determines the extent to which university IP can contribute to innovation. The role of TTOs is important to provide researchers with necessary support in their use of IP. This includes (i) informing and raising awareness regarding the benefits they can derive from IP; (ii) providing assistance with filing patent applications and legal advice regarding IP; and (iii) supporting the commercialisation of IP by providing partnership advice. Many research institutions have set up TTOs, but shortcomings in funding, management and incentives remains a major challenge to their provision of effective services. Reaching sufficient economies of scale is important for sustainable business models for TTOs. Since individual institutions might not have sufficient scale, the creation of regional TTOs might be of interest (Zuniga, 2011).
Private partnerships
Universities and PRIs often cannot fully exploit their inventions as they lack the necessary manufacturing facilities and marketing departments. Private sector partners can play a key role here either as licensees of their inventions or as partners of spin-offs. Linking up with partners thus represents a major opportunity for research organisations seeking to commercialise their inventions. However, challenges frequently arise at this stage, particularly with a weak private business sector. This is where adequate legal and regulatory frameworks become essential. Standard collaboration agreements can help support public-private collaborations (e.g. the Lambert toolkit) (UK IPO, 2013). While they cannot address all challenges that inevitably arise given the unpredictable nature of research, they can provide a starting point for negotiations. However, ways of identifying suitable partners often present a more significant challenge. TTOs need to play a critical role in this regard. Moreover, another key condition is the availability at universities of research capacities that can support private industry needs adequately.
References
- Geuna, A. and L. Nesta (2006), “University patenting and its effects on academic research: The emerging European evidence”, Research Policy, Vol. 35/6, Elsevier, The Netherlands, pp. 790-807.
- Mowery, D.C., R.R. Nelson, B.N. Sampat and A.A. Ziedonis (2001), “The growth of patenting and licensing by US universities: An assessment of the effect of the Bayh-Dole Act of 1980”, Research Policy, Vol. 30, pp. 99-119.
- OECD (2013), Commercialising Public Research: New Trends and Strategies, OECD, Paris.
- UK IPO (2013), Collaborative Research between Business and Universities: the Lambert Toolkit 8 Years On, UK Intellectual Property Office, Newport, UK.
- WIPO (2011), World IP Report: The Changing Face of Innovation, Geneva, WIPO.
- Zuniga, P. (2011), “The state of patenting at research institutions in developing countries: Policy approaches and practices”, WIPO Working Papers, No. 4, December, WIPO, Geneva.
- OECD (forthcoming), National Intellectual Property Systems, Innovation and Economic Development with Perspectives on Colombia and Indonesia, OECD, Paris.
- Processes and contributions of IP systems to innovation
- Metrics and evaluation for IPR
- Aspects and availability of patent data
- Patent data - Characteristics of innovative activities
- Patent data - The performance of firms, regions and countries
- Patent data - Emerging technologies
- Patent data - The role of universities in technological development
- Patent data - The performance and mobility of researchers
- Patent data - The geography of invention
- Patent data - Knowledge diffusion and technological change
- Patent data - Globalisation of research
- Patent data - Patenting strategies of firms
- Patent data - Patent valuation methods
- Metrics - IP standards, regulations and legal systems
- IP users
- IP, markets and diffusion
- Fields of IP use
- Organisation of IP systems
- Connecting IP to innovation policies
Relevant Indicators

- Gross domestic expenditure on R&D
- Gross domestic expenditure on R&D, financed by industry
- Gross domestic expenditure on R&D, financed by government
- Gross domestic expenditure on R&D, financed by higher education
- Gross domestic expenditure on R&D, publically financed
- Gross domestic expenditure on R&D, financed by other national sources
- Business enterprise expenditure on R&D
- Business enterprise expenditure on R&D, financed by industry
- Business enterprise expenditure on R&D, financed by higher education
- Business enterprise expenditure on R&D, financed by private non-profit sector
- Business enterprise expenditure on R&D, financed by other national sources
- Business enterprise expenditure on R&D, SMEs
- Business enterprise expenditure on R&D, large firms
- Medium to low-tech manufacturing
- High-knowledge market services
- Low-knowledge services
- Primary and resource-based industries
- Non-resource-based manufacturing industries
- Business enterprise expenditure on R&D performed in industry (Mining, Manufacturing and Utilities)
- Business enterprise expenditure on R&D performed in services
- Public sector expenditure on R&D
- Public sector expenditure on R&D, financed by industry
- Public sector expenditure on R&D, financed by government
- Public sector expenditure on R&D, financed by higher education
- Public sector expenditure on R&D, financed by public sources
- Public sector expenditure on R&D, financed by other national sources
- Public sector expenditure on R&D, financed by abroad
- Basic research expenditures, public research
- Applied research expenditures, public research
- Experimental development expenditures, public research
- Private non-profit expenditure on R&D
- Private non-profit R&D, financed by industry
- Private non-profit R&D, financed by government
- Private non-profit R&D, financed by higher education
- Private non-profit R&D, financed by private non-profit sector
- Private non-profit R&D, financed by abroad
- Total RD&D
- Demonstration expenditure
- Gross fixed capital formation
- Gross fixed capital formation, non-residential
- Investments on machinery and equipment
- Innovation expenditure
- Expenditure for in-house R&D
- Enterprises engaged in other innovation activities
- Internationally mobile scientific authors
- Employment in basic pharmaceutical products and pharmaceutical preparations activities
- Employment in computer, electronic and optical products activities
- Employment in air and spacecraft and related machinery activities
- Employment in water transport activities
- Employment in air transport activities
- Employment in information and communication activities
- Employment in financial and insurance activities
- Employment in professional, scientific and technical activities
- Employment in public administration and defence, compulsory social security, education, human health and social work activities
- Employment in arts, entertainment and recreation activities
- Positive perception of science benefits, benefits outweighing harmful effects
- Positive impact of S&T on personal wellbeing
- Fear of failure, "one should not start a business if there is a risk it might fail"
- Negative image of entrepreneurs, "Entrepreneurs take advantage of other people's work"
- Preference for being an employee in publicly-listed or private company
- Total communication access paths
- Fixed broadband subscribers
- Wireless broadband subscribers
- Cellular mobile subscriptions
- Secure servers
- Internet users
- IPv6 users ratio users
- Households with broadband access at home
- Business use of the Internet
- Business use of broadband
- Turnover from e-commerce turnover
- E-government development index
- Individuals using the Internet to obtain information from public authorities' websites
- Schools with Internet connection and usage
- Total domain name registrations
- Blogs indexed by Google
- Facebook users
- Interest rate spread
- Lending interest rate
- Deposit interest rate
- Real interest rate
- Long-term interest rate on government bonds
- Buyouts
- Statutory corporate income tax rate
- Personal income tax rate
- Tax wedge, average single worker of labour costs
- R&D tax incentives, cost estimates
- Tax subsidy rates on R&D expenditures, B-index
- Starting a business (ease of doing business index)
- Dealing with construction permits (ease of doing business index)
- Getting electricity (ease of doing business index)
- Registering property (ease of doing business index)
- Getting credit (ease of doing business index)
- Protecting investors (ease of doing business index)
- Paying taxes (ease of doing business index)
- Trading across borders (ease of doing business index)
- Enforcing contracts (ease of doing business index)
- Resolving insolvency (ease of doing business index)
- Time required to start a business
- Number of procedures to start a business
- Cost of starting a business
- Paid-in minimum capital for starting a business
- Time required to close a business
- Cost of bankruptcy proceedings
- Recovery rate
- State control (public market regulation indicator)
- State control, Public ownership (public market regulation indicator)
- State control, Involvement in business operation (public market regulation indicator)
- Barriers to entrepreneurship (public market regulation indicator)
- Barriers to entrepreneurship, Complexity of regulatory procedures (public market regulation indicator)
- Barriers to entrepreneurship, Administrative burdens on startups (public market regulation indicator)
- Barriers to entrepreneurship, Regulatory protection of incumbents (public market regulation indicator)
- Barriers to trade and investment (public market regulation indicator)
- Barriers to trade and investment, Explicit barriers (public market regulation indicator)
- Barriers to trade and investment, Other barriers (public market regulation indicator)
- Ease of entrepreneurship index (public market regulation indicator)
- Strictness of employment protection ? individual dismissals (regular contracts)
- Strictness of employment protection ? collective dismissals (regular contracts)
- Strictness of employment protection ? temporary contracts
- Top 50 universities
- Top 100 universities
- Top 200 universities
- Top 500 universities
- Top 200 public research institutes
- Top 500 public research institutions
- Top 500 corporate R&D investors
- Top 1400 corporate R&D investors
- Foreign Direct Investment (FDI) outward flows
- Foreign Direct Investment (FDI) outward stocks
- R&D expenditures of foreign affiliates
- R&D expenditures of domestic firms outward
- Foreign ownership of patents
- Innovative firms
- Innovative firms, SMEs
- Innovative firms, large firms
- Technologically innovative firms
- Technologically innovative firms, SMEs
- Technologically innovative firms, large firms
- Technologically innovative firms, non-R&D active
- Organisational and/or marketing innovators
- Product and/or Process and Marketing and/or Organisational innovators
- Product and/or Process innovators
- Non-technologically innovative firms
- Non-technologically innovative firms, SME
- Non-technologically innovative firms, large firms
- Firms collaborating on innovation
- Firms collaborating on innovation, SMEs
- Firms collaborating on innovation, large firms
- Innovative firms reporting market sources as highly important sources of knowledge
- Firms collaborating on innovation with clients
- Firms collaborating on innovation with suppliers
- Innovative firms reporting institutional sources as highly important sources of knowledge
- Firms collaborating on innovation with higher education and PRIs
- National collaboration on innovation
- International collaboration on innovation
- Firms engaged in international collaboration, SME
- Firms engaged in international collaboration, large firms
- Young patenting firms of PCT patent applicants
- Young patenting firms of all PCT patent applicants
- Young patenting firms
- Biotechnology firms
- Nanotechnology firms
- Citations per publication
- Scientific publications
- Publications in the top-quartile journals, per thousand population
- Publications in top-quartile journals publications
- Top cited scientific articles
- Impact index of scientific production
- Co-authorship of scientific articles
- Public-private co-authorship of scientific articles
- International co-authorship of scientific articles
- Revealed technology advantage in biotechnologies
- Revealed technology advantage in nanotechnologies
- Revealed technology advantage in biotechnologies and nanotechnologies
- Revealed technology advantage in ICT
- Revealed technology advantage in environment-related technologies
- Revealed technology advantage in medical technologies
- Revealed technology advantage in parmaceutical technologies
- Employer enterprise births (total industry and market services)
- Employer enterprise deaths
- Trend in bankrupties
- High growth enterprises (turnover definition) of enterprises with 10+ employees (total industry, construction and market services)
- High growth enterprises (employment definition) of enterprises with 10+ employees
- Gazelles (turnover definition) of enterprises with 10+ employees
- Gazelles (employment definition) of enterprises with 10+ employees
- GDP
- GDP, annual growth rate
- GDP per capita
- GDP per capita, annual growth rate
- Value added in industry
- General government gross financial assets, as a percentage of GDP
- Total employment (ET), percentage change from previous year
- Purchasing Power Parity (national currency per dollar)
- Labour productivity
- Labour productivity, annual growth rate at constant prices
- GDP per person employed
- GDP per person employed, annual growth rate
- Productivity levels, gap with respect to US GDP per capita
- Productivity levels, gap with respect to US labour utilisation
- Productivity levels, gap with respect to US GDP per hour worked
- Average annual hours worked
- Exports, manufacturing
- Exports, high technology
- Exports, medium-high technology
- Exports, medium-low technology
- Exports, low technology
- Exports, services
- Exports, royalties and license fees
- Exports, ICT services
- Exports, business services
- Exporting firms enterprises
- Exporting firms, 0-9 employees of enterprises with 0-9 employees
- Exporting firms, 10-49 employees of enterprises with 10-49 employees
- Exporting firms, 50-249 employees of enterprises with 50-249 employees
- Exporting firms, 250+ employees of enterprises with 250+ employees
- Gross exports
- Domestic value-added in exports
- Domestic value-added embodied in foreign final demand
- Domestic value-added in domestic final demand
- Foreign value-added in exports gross exports
- Foreign value-added embodied in domestic final demand
- Technology BoP: receipts
- Technology BoP: payments
- Primary energy supply (TPES), million tonnes oil-equivalent (Mtoe)
- Energy productivity, GDP per toe TPES
- Nuclear supply primary energy supply
- Renewable energy supply primary energy supply
- Energy self suficiency
- Carbon dioxide emissions, million tonnes
- Environmental productivity
- Net national disposable income (NNI)
- Environmental productivity, NNI per unit of CO2 emitted
- Water stress freshwater abstraction internal resources
- Forest land areas
- Arable and cropland land areas
- Pasture land areas
- Built-up and other areas land areas
- Threatened species, mammals
- Threatened species, birds
- Threatened species, vascular plants
- Intactness of a natural ecosystem
- Municipal waste generated intensity
- Waste treated through recovery operations
- General government expenditures on health
- General government expenditures on social protection
- Households final consumption on food
- Households final consumption on housing, water and energy
- Households final consumption on health
- Households final consumption on social protection
- Population
- Median age population
- Population, 65+
- Population, 80+
- Population, <15
- Dependency ratio of working age population
- Old-age dependency ratio of working age population
- Youth dependency ratio of working age population
- Employment rate of working-age population
- Vulnerable employment employment
- Self-employment employment
- Part-time employment employment
- Unemployment rate civilian of labour force
- Unemployment rate, women civilian of labour force
- Youth unemployed, 15-24 unemployed
- Youth neither in employment nor in education or training (NEETs) of 15-19 year-olds
- Long-term unemployment rate of unemployment
- Urban population
- Population in mega cities population
- Population in the largest city of urban population
- Population density
- Road passengers
- Motor vehicles
- International migrants population
- Foreign-born population population
- Middle class population
- Gini coefficient at disposable income, post taxes and transfers (income inequality)
- Income gap between the 10% richest and poorest 10%, disposable income
- Poor population, after taxes and transfers population (poverty rate)
- Single-adult households households
- Average household size
- Obese population
- Time at school
- General government
- General government, Gross fixed capital formation
- General government revenue
- Total government tax revenue
- Total government tax revenue, corporate
- Total government tax revenue, personal
- Central government debt
- Net lending/borrowing, government
- Household final consumption expenditure
- Housing prices index at constant prices
- Equity prices index at constant prices
- Net households disposable income
- Gross households disposable income gross disposable income
- Net household saving of households disposable income
- Net lending/borrowing, households
- Gross fixed capital formation, non-financial corporations
- Gross operating surplus, non-financial corporations
- Gross domestic product, gross value-added, non-financial corporations
- Net lending/borrowing, non-financial corporations
- Total R&D expenditures
- Basic research expenditures
- Applied research expenditures
- Experimental development expenditures
- Basic research expenditures, business enterprise
- Applied research expenditures, business enterprise
- Experimental development expenditures, business enterprise
- Basic research expenditures, higher education
- Applied research expenditures, higher education
- Experimental development expenditures, higher education
- Basic research expenditures, government
- Applied research expenditures, government
- Experimental development expenditures, government
- Basic research expenditures, public research
- Applied research expenditures, public research
- Experimental development expenditures, public research