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International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012 Matt Rainey Director, Innovation Division World Intellectual Property Organization

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Page 1: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

International Networked Innovation

TTO-CIRCLE Conference – RomeApril 26-27, 2012

Matt RaineyDirector, Innovation DivisionWorld Intellectual Property Organization

Page 2: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

I. Innovation TrendsII. WIPO Networked Innovation ProjectsIII. WIPO Facilitation of Networked Innovation

Page 3: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

I. Innovation Trends

Page 4: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

I. Innovation Trends R&D Expenditure

Global R&D expenditure almost doubled in real terms from 1993 to 2009R&D spending: high-income countries

70% of world total70 percent of the world total2.5% of GDP spent on R&D

>2X the rate of middle-income economiesR&D spending: low- & middle-income countriesGlobal share up 13% from 1993-2009

>10% of this is from China (2nd largest R&D spender in 2009)

Page 5: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

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

Page 6: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

Innovation Trends – Increasingly International

The innovation process is increasingly international in natureGreater mobility of students, highly skilled workers and scientistsIncrease in the share of peer-reviewed science and engineering articles with international co-authorshipPatents that list inventors from different countriesMultinational 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

Page 7: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

Innovation Trends – IP Ownership

IP ownership more central to business and innovation strategies on national and institutional levelWorldwide demand for patents has risen

Early 1980s: 800,000 applications/yearDominated by Japanese filings

1990s: increases driven by US, Korea2009: 1.8 million applications

Driven by Chinese filings

Page 8: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

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

Page 9: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

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

Page 10: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

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

Faster Patenting Growth for Complex Filings(both first and subsequent filings)

Page 11: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

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

Faster Patenting Growth for Complex Filings(both first and subsequent filings)

Page 12: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

Public Policies Supporting Commercialization of Publicly Funded Research

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

Page 13: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

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

Page 14: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

Innovation Trends – Rise of Tradability of IP

Knowledge markets based on IP rightsOn the rise, though still nascent

Tradability of IP: increasingCompanies, auctions, etc.

More frequent licensing of IP rights

International royalty and licensing fee (RLF) receipts1970: USD 2.8 billion1990: USD 27 billion2009: USD 180 billionOutpacing growth in global GDP

Page 15: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

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

Page 16: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

Innovation Trends More Collaborative and Open

Is this perception correct?Potential indicators:

R&D alliancesCopatenting on international level

Page 17: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

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

Innovation Trends More Collaborative and Open

Page 18: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

Innovation Trends Changing by Sectors

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

Page 19: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

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

Innovation Trends Changing by Sectors

Page 20: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

Patent pool variations over time

Page 21: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

ICT Industry Dominates Patent Pooling Trends

Page 22: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

II. WIPO Networked Innovation Projects

Page 23: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

R&D Networks and IP Hubs (TTOs): Implemented in Colombia and Western African

Countries

Page 24: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

R&D Networks and IP Hubs (TTOs)

Implemented in Colombia and Western African CountriesDeveloped and sponsored by WIPO and Swiss Government donationNetworked collaboration with governments, academic institutions, NGOs Colombia:

Superintendencia de Propriedad Industrial of ColombiaNational Institute on Science and Technology (Colciencias)Immunology Institute of Colombia Foundation (FIDIC)

OAPI: Organisation Africaine de la Propriété IntellectuelleCEMAC: Communauté Economique et Monétaire de l'Afrique Centrale (Executive Secretariat of the Economic and Monetary Community of Central Africa)

Page 25: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

R&D Networks and IP Hubs (TTOs)

OCEAC: Organization for the Control of Large Tropical Diseases in Central AfricaGIAN/RUIG: Foundation Geneva International Academic NetworkHEI: Graduate Institute of International Studies of Geneva, University of GenevaHEC: Hautes Études Commerciales, University of GenevaSTI: Swiss Tropical Institute, University of BaselIMD: International Institute for Management Development, LausanneCOHRED: Council on Health Research for Development, Geneva

Page 26: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

Key elements– Foster scientific collaboration– Improve technical results– Optimize resource allocation– Leverage economies of scale– Reduce costs of research and IP protection, management and

commercialization

• Have been implemented in the health R&D sector of 7 countries– Colombia– 6 West African countries: Cameroon, Central African Republic,

Chad, Equatorial Guinea, Gabon, Republic of Congo

R&D Networks & IP Hubs

Page 27: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

R&D Networks and IP Hubs (TTOs)

ConceptDevelopment of Network among R&D institutions, preferably doing the research in the same scientific area (malaria)Inter-institutional agreements with different levels of legally binding relations New element

IP Hubs providing IP &technology management services to all members in the process from research results to the market

Page 28: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

R&D Networks and IP Hubs (TTOs)

DeliverablesStrategy model that can be replicstedEconomies of scale approach Efficient use of existing scientific, financial and management resources Possibility of inter-disciplinary approach to the scientific problemsCollaborative innovation opportunities Higher level of protection, development and commercialization of research results by using professional services of the IP HubBetter return on the investment

Page 29: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

R&D Networks and IP Hubs (TTOs)

ResultsVery successful model in Colombia

Measurable performance results - 7 new patent applications based on networked research and innovation by members of the Health Sector R&D Network in ColombiaGovernment of Colombia applied the same model in energy, agro-chemical and security sectorGood local follow-through

Western African CountriesNo significant results to date

Page 30: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

• Assists developing countries to create an innovation infrastructure to support university- industry collaboration

Algeria, Egypt, Jordan, Morocco and Tunisia• Flexible framework

• Adjustable to needs of individual countries• Each country “owns” its operation• Second Phase: Arab Region Innovation Network

• Currently under way

Establishment of TTOs in Arab Region

Page 31: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

• Key operations– Transfer of knowledge – Setting up infrastructure– Creating intermediaries able to facilitate innovation and technology

transfer• Two parts

– Country-specific projects– Arab region innovation network

• Innovation partnerships and networks– national, regional and interregional

• Networked innovation model of regional collaboration

• Duration– 26 months in each country– 38 months for entire region

Establishment of TTOs in Arab Region

Page 32: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

Establishment of TTOs in Arab Region – Project Partners

Core Project Partners – parties of the Framework Project Agreement

Governments of participating countriesDonor partners Arab Science and Technology Foundation (ASTF) WIPO (as executive agent)

Other Partners Potential contributors with expert experience in relevant areas Professional associationsScientific foundations Private sector Financial institutionsNGOsInternational organizations Other partners

Page 33: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

III. WIPO Facilitation of Networked Innovation

Page 34: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

WIPO Innovation Division – People

International Staff fluent in 13 languagesVarious backgrounds and professional experience

Private enterprisesLegalTechnicalGovernmentDiplomatic

Page 35: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

WIPO Capacity Building Programs for R&D Institutions

Training on IP Policies and Procedures for R&D Institutions and Universities

How to Define Institutional IP PolicyPatent Drafting for ScientistsIP Marketing ( How to find IP Commercialization Partner?)IP Valuation (How to Determine the Value of IP and Technology ?)Successful Technology Licensing (STL)

Page 36: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

WIPO Innovation Division Capacity Building Programs

Existing IP trainingCustomized new programs for TTO-CIRCLEDevelopment of IP-related networking infrastructure

Inter-institutional policiesAccess & use terms for IP use

Governmental policiesFacilitating negotiations of collaborative contracts

Including management of know-how

Page 37: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

Countries where WIPO has implemented capacity- building programs

Africa

Central and Latin America

Europe

Asia Pacific

Arab Countries

Page 38: International Networked Innovation · International Networked Innovation TTO-CIRCLE Conference – Rome April 26-27, 2012. Matt Rainey. Director, Innovation Division. World Intellectual

Thank you

TTO-CIRCLE Conference – RomeApril 26-27, 2012

Matt RaineyDirector, Innovation DivisionWorld Intellectual Property Organization