Challenges in University Technology Transfer in Russia 6th International Conference on “Managing Intellectual Property Rights in Universities” Ilia Dubinsky, PhD Challenges in University Technology Transfer in Russia

Despite substantial decline, Russian science and engineering are still capable of producing highest quality R&D results However, this does not translate into strong economic performance in technologically advanced industries Deficiencies in tech transfer system contribute to this situation Deficiencies in legal system Lack of incentives for the researchers Lack of tech transfer expertise and resources at vast majority of universities University leadership not interested in tech transfer State ownership of R&D results Heavy state control of the use of IP developed at universities Good news – Russian university tech transfer is developing, new laws and regulations are enacted Skolkovo Institute of Sc. and Tech.(Skoltech) – successful pilot of a univ. tech transfer

Disproportionately small economic return on a substantial research effort… Total amount of grants and contracts in support of R&D in Russia in 2007- 2016 has been 2.25 Trillion rubles (approx. $35B). 35766 patents have been filed However, only 68 transactions involving this IP have been done (less than 0.2%) and their materiality is questionable

Challenges in university tech transfer in Russia (I) Deficiencies in legal system, e.g., No instruments to license IP quickly (e.g., no way to license IP before the patent is granted, no provisional patents, etc.) Lack of incentives for the researchers No link between the commercialization/tech transfer outcome and researcher’s compensation Lack of tech transfer expertise and resources at vast majority of universities In majority of the universities there is no “western-style” tech transfer, only a patent-filing office. Very limited budget. Wrong goals, incentives, skills… Custom of “funding in exchange for IP ownership”, supported by state laws and practices

Challenges in university tech transfer in Russia (II) Heavy state control of the use of IP developed at universities IP ownership by the state – in case of state R&D sponsorship. Recent positive changes – research org. can take ownership of the developed IP State ownership of research institutions is still a major challenge. State fiscal and budget committees oversee how the institutions deal with their properties and may press criminal charges for “incorrect” handling of IP As a consequence, university leadership is not interested in tech transfer State ownership and control increase costs, complexity Risks and decrease positive payback

In recent years university tech transfer has been undergoing positive changes Legal changes recently are taking place Universities can take ownership of IP developed in contract research projects Universities can grant exclusive IP license or sell IP to a company, in which the university maintains a particular (state-defined) share Still, for state-owned universities (absolute majority) state oversight makes tech transfer difficult Several universities have made development of world-class tech transfer a goal Skoltech, ITMO… Skoltech has been at the front, leading and championing the change, transferring the knowledge, skills and practices Skoltech KTO has been set and trained by MIT TLO (special gratitude to Chris Noble) KTO it the center of all legal deals of the University, helped develop clear IP policies) First in Russia cross-border IP licensing deals

University tech transfer in Russia is in transition… Tech transfer from research organizations is a necessary element of innovation-based economy Today in Russia tech transfer does not support growth of economy Recent positive changes in legal laws and regulations and emergence of institutions interested in development of tech transfer make us believe the situation will change in near future First international licenses (Skoltech) and sales of university-owned shares in startups (ITMO) are the first harbingers of change State authorities appear to be genuinely interested in learning and spreading best practices in tech transfer to a broad list of organizations. Skoltech is an admitted leader