R&D AND TECHNOLOGY UPTAKE Tom Ogada Training Workshop On University Industry Linkages For African Universities R&D AND TECHNOLOGY UPTAKE Tom Ogada Obafemi Awolowo University, NIGERIA April 26-29, 2017

Introduction Technological development Universities R&D Institutions Teaching R&D Extension Extension Capacity Building New knowledge Knowledge Transfer Technological development

R&D results if protected becomes Intellectual Introduction The direct product of research is knowledge. It can be in the form of New Technology New Product New Process Improvement in existing product, process or technology R&D results if protected becomes Intellectual property rights

Types of Intellectual Property Rights Introduction Types of Intellectual Property Rights Intellectual Property Copy Rights Plant Breeders Rights Industrial Property GI and TK Patent Utility Model Industrial Design Trademarks

Course Parts PART 1: Universities and Technology Innovation PART 2: University Industry Partnership PART 3: University Policy and Leadership

Delivery Strategy Emphasis on Experience Sharing from Moi University : Technology Transfer Office and Institutional IP Policy Kenya Industrial Research and Development Institute (KIRDI): Technology Transfer Office, IP Policy and Incubation Services British Council: AKTP program (Uganda, Kenya, Ghana, Nigeria and South Africa WIPO consultant since 2000: Technology Transfer and National IP strategies;.

UNIVERSTIES AND TECHNOLOGICAL INNOVATION Training Workshop On University Industry Linkages For African Universities PART 1 UNIVERSTIES AND TECHNOLOGICAL INNOVATION

Components Simple Criteria for assessing the level of technological development Making R&D work for development Linking R&D with development policies

Simple criteria for assessing level of Technological Development 2. Six stage model for analyzing link between universities and technological development (Ungku Aziz, 1983) Technical capacity and Skills of the locals Presence of universities and research organization What is taught and by who Type of Research Funding of research Understanding of IP Technology Transfer Linkages with industries

Simple criteria for assessing level of Technological Development 2.1. Stage One Locals learn operational skills such as driving trucks and performing and assembly work High levels skills including Supervisory work and management are provided by foreign workers Semi processed materials and parts for assembly are imported Education provided at primary and secondary levels Universities few, focuses on humanities Few R&D institutions, Linkages with Industries, Intellectual Property and technology Transfer

Simple criteria for assessing level of Technological Development 2.2. Stage two Learning maintenance and servicing skills including for heavy plants, equipment and electronics Locals can now do supervision while management in the hands of expatriates Universities start teaching science and technology using mainly expatriate lecturers Locals sent abroad to built capacity in science and technology for R&D No R&D institutions, Linkages with Industries, Intellectual Property and technology Transfer

Simple criteria for assessing level of Technological Development 2.3. Stage three Skills required for repair and replacement of important technology learned More parts for assembly manufactured locally Universities train engineers, technologists and managers Locals start teaching and doing research in universities and R&D institutions Bulk of research funds and research problems are donor driven Linkages with Industries Starts, Awareness on IP starts and Technology transfer starts

Simple criteria for assessing level of Technological Development 2.4. Stage four Local capacity in S&T and R&D exists Locals develops, adapts and transfer technologies Researchers start addressing local problems Governments recognize the importance of R&D in TD and increase R&D funding Linkages with industries strengthens and industries start funding local R&D R&D clusters identified IP embraced and annual reports include IP generated and registered

Simple criteria for assessing level of Technological Development 2.5. Stage five Local R&D produces machines using local materials and suitable for local conditions Local Scientists and Researchers involved in applied and demand driven research Linkages with industries strong and self sustaining IP and Innovation are integrated in the research culture of the university and R&D institution

Simple criteria for assessing level of Technological Development 2.6. Stage Six Local capacity available to produce machines which produce machines Linkages with industries very strong and R&D institutions produce new industries IP and Innovation are integrated in to the research culture of the university and R&D institution

Simple criteria for assessing level of Technological Development 2.7. Lessons learnt Teaching R&D Technology Transfer Teaching Teaching R&D Technological stages

Simple criteria for assessing level of Technological Development 2.8. Key Remarks All countries must pass through each of these stages The rate at which a country passes these stages depends on the political management of Natural resources Education R&D activities Industrialization

Simple criteria for assessing level of Technological Development 2.9. What we would like to see Government recognizes the importance of R&D for economic development and funding it Researchers are addressing local problems Knowledge generated through R&D activities is transferred to the Industry Linkages with industries is strong and self sustaining Industries are funding R&D activities R&D institutions producing new industries IP and Innovation are integrated in the research culture of the university and research organization Simple criteria for assessing level of Technological Development

Making R&D work for Development 3.1. Mandates of RTOs Universities R&D Institutions R&D Teaching R&D Extension Extension Capacity Building New knowledge Knowledge Transfer Technological development

Making R&D work for development 3.2. RESEARCH PRODUCTS The direct product of research is knowledge. It can be in the form of New Technology New Product New Process Improvement in existing product, process or technology

Making R&D work for development 3.3. UTILIZATION OF RESEARCH PRODUCTS Publication a traditional R&D output R&D is only useful if its products can lead to Economic development Industrialization Job creation Poverty Reduction

3.4. New evaluation criteria Making R&D work for development Outputs No of Publications, Patent applications, IP Assets generated IP Assets Licensed Outcomes Income from Technology Licensing No of Companies created directly based on the product of R&D Increase in sales, tax revenues, profitability Jobs created Impacts Contribution to the GDP and poverty reduction

Linking R&D to development Policy National Development Goals Priority Sectors Technology Needs Assessment Research Projects Results Application 3.5. MAKING RESEARCH WORK FOR DEVELOPMENT

Linking R&D to development Policy 3.6. Example 1: Agriculture Policy Policy Objectives: Enhancing Food Security R&D Objectives: Developing drought and disease resistance seed IP Objective: developing plant breeders rights, developing reward system for breeders

3.7. Promoting agro processing and value addition Examples 3.7. Promoting agro processing and value addition Policy Objective: Promoting value addition R&D Objective: developing value addition technology, processes and products IP Objectives: Protecting and commercializing value addition technologies, products and processes

Examples 3.8. Example 3: Industrialization Policy Policy Objective: Increasing productivity and competitiveness in a given sector R&D Objective: developing new technologies, products and process for the identified sector Intellectual Property Objective : producing the required patents, utility models and industrial designs

Examples 3.9. Policy Agenda for Heath Policy Objective: Access to affordable health care R&D Objective: Developing herbal products IP Objectives: TK policies on access and benefit sharing Technology for processing (patents and utility models) Trademarks

GROUP DISCUSSION

PART TWO – University-Industry Partnership Training Workshop On University Industry Linkages For African Universities PART TWO – University-Industry Partnership OGADA TOM NIGERIA, APRIL 26-28, 2017

Components Barriers and Challenges for U-I Linkages Support Structures to address these challenges Options for technology transfer and commercialization of R&D results Brief on Licensing Some examples from Kenya

Barriers and Challenges 1.1. Players in U-I Linkages R&D Institution Industry Students Researcher

Barriers and challenges Service oriented Bureaucratic and Weak marketing R&D Institution Industry Industry sees RTOs to be bureaucratic, theoretical and slow in decision making Researchers lacks legal, business, negotiation and marketing skills for technology transfer Researcher

Barriers and challenges 1.3. Changing the Paradigm Industry R&D Institution Old Paradigm Relationship driven by Service No pains if nobody uses products of R&D Researcher New Paradigm Relationship driven by Business Industry=Customer R&D = Enterprise Product = Knowledge Researcher = Marketer

Support structures 2.1. Need for support structures for TT RTO Innovation and Entrepreneurial Support Structures INDUSTRY Understands RTO culture, speaks the language of industry and behaves like a private enterprise

Support structures 2.2. Examples of support structures RTO Innovation and Entrepreneurial Support Structures INDUSTRY Technology Transfer Office Business Incubation Services University Companies Industrial/Science Park

Support structures 2.3. Technology Transfer Office RTO INDUSTRY Contract Research Protection of R&D Results Marketing of technology Technology Licensing

Support structures 2.4. RTO Based Companies RTO Contract Research INDUSTRY Contract Research Protection of R&D Results Marketing of technology Technology Licensing Pilot new technologies Establish new companies

Support structures 2.5. Technology Incubator Role of the Incubator Capacity building Technology and skill Marketing Access Business Information Supply pre-financing Negotiation with the government 2. Success factors Increases survival rates from 20 to 80 % E E E E E E

Support structures 2.10. Industrial Parks S S MiE RTO MiE MiE RTO Market Government RTO SE S SE MSE SE MSE MSE

Options for Technology Transfer 3.1. Routes for Technology Transfer by Universities and Research Organizations Own Exploitation Sell of IP rights Licensing Join Venture Merger and Acquisition Monetization

Licensing of IP Assets 1. Definition Licensing is permission granted by the owner of the IP rights to another entity to use the IP rights on Agreed terms and conditions Defined purpose Defined territory Agreed period

Licensing of IP Assets 2. Benefits of licensing to the universities manufacturing capability Distribution network Local knowledge Ability to enter into a new market faster

Licensing of IP Assets 3. Risks of licensing to the universities Self exploitation can generate more income Licensee can become your competitor Licensor critically depends on the skills, ability and resources of the licensee for generating profits

Licensing of IP Assets 4. Scope (technical) of technology licensing Patent Accompanying trademark Accompanying trade secret Accompanying copyright Improvement Training and capacity building

Licensing of IP Assets 5. Starting discussions on licensing Non disclosure agreement Memorandum of understanding or letter of intent Relationship building through distributorship List of issues for discussions

Licensing of IP Assets 6. Extent of rights in Licensing Agreement Exclusive rights Non Exclusive rights Sole licensing Most favored licensee Sub Licensing

Licensing of IP Assets 7. Scope (coverage) of Licensing Duration Geographical Territory Improvement Technical Assistance

Licensing of IP Assets 8. Commercial and financial consideration Royalty payment Royalty base Number of products Sales Royalty Rates Constant Variable

Licensing of IP Assets 12. Financial Administration Keep proper accounts and records Report the results on a quarterly basis and pay the subsequent royalty Rights of the licensor to inspect books of account Penalty on discrepancies in reporting

4: Some Examples from Kenya

4.1. The Kenyan Innovation System consists of Universities: 48 universities (31 public universities, and 17 chartered private universities) Research Institutions: 6 research institutions and 8 commodity research foundations Government Support Institutions: NCSTI, KENIA, National Research Fund, KIPI, KEBS, ACA Industry (Private Sector): Large, Medium, Small, Micro and Jua Kali Enterprises

4.2. Analysis of Progress in Technology Transfer in universities and research organizations 2004 2016 Adoption of IP Policy 1 9 Technology Transfer offices 2 10 RTO company 2 5 Business Incubation units 0 10 Science Park 0 1

Example of performance of individual RTO 4.3. Some key Technology Transfer Activities Upgrading of SMEs products by Kenya Industrial Research and Development Institute Licensing of organic fertilizer by University of Nairobi Kenyatta University Incubator Moi University Textile Factory

Upgrading of SMEs products Example 1: The welding machine project Ugly, inefficient, dangerous, not standardized, no name but working Required technology branding and standard Three public institutions (KIRDI, KIPI and KEBS)came together to work with Artisans

Upgrading SMEs products Example 1: The Welding Machine Project KIRDI provided technology through reverse engineering KEBS provided standards KIPI protected improvement as utility models Artisans did the work Some 840 produced and distributed to Constituency Industrial Development Centers

Biofix Licensing Project University of Nairobi Example 2: Licensing Project AKTP RTO Industry Associate

Biofix Licensing Project University of Nairobi Example 2: Licensing Project – the product BIOFIX was developed by UoN, College of Agriculture and Veterinary Services in the 1970s UoN engaged in small scale production of BIOFIX which was marketed during agricultural shows (sales: 2000 kg per year) For 20 years, UoN was happy with this arrangement and was unwilling to license it out.

Biofix Licensing Project University of Nairobi Example 2: Licensing Project - the company MEA Limited a private company established in 1977 A leading provider of fertilizer in the country Has sales outlets throughout the country and in Tanzania, Uganda and Rwanda in 1996 the company decided to diversify to organic fertilizer in line with increased global demand for organic product

Biofix Licensing Project University of Nairobi It involved licensing of knowhow and trademark Exclusive licensing Covered several (8) countries It involved one off payment and royalty based on sales It specify minimum performance It allows joint marketing Took care of improvement It did not allow sub licensing It allow joint ownership of any IP that arises out of the collaboration. Example 2: Key Feature of the Licensing Agreement

4. EXAMPLES OF TECHNOLOGY TRANSFER ACTIVITIES Example 3. Chandaria Business Innovation and Incubation Center – Kenyatta University Launched in 2011 Funded by a leading Kenyan industrialist Aims at supporting 100 innovations per year – 70 % KU Students and 30 % other students Blends academic research and innovation through establishment of companies

4. EXAMPLES OF TECHNOLOGY TRANSFER ACTIVITIES Example 3. Chandaria Business Innovation and Incubation Center – Kenyatta University It is run by a board of professionals from both public and private sectors Incubation lasts for 12 months Popular sectors include agroprocessing and agribusiness, ICT, Energy, health and Nutrition

4. EXAMPLES OF TECHNOLOGY TRANSFER ACTIVITIES Example 3. Chandaria Business Innovation and Incubation Center – Kenyatta University Partners Chandaria Foundation Youth Enterprise Development Fund National Commissions for Science, Technology and Innovation Telkom Kenya Limited Total Kenya

4. EXAMPLES OF TECHNOLOGY TRANSFER ACTIVITIES Example 4. Moi University’s Textile Company – Rivatex East Africa Limited Company was established in 1976 by Kenya Government and a consortium of foreign investors The factor is an integrated mill with spinning, weaving and wet processing The company operated well and profitably until 1990, when it collapsed and stopped operations in 2000

Example 4. Moi University’s Textile Company – Rivatex East Africa Limited In 2007, Moi University acquired Rivatex and is currently using it for research, training and manufacturing purposes The company has collaborated with Moi University to develop textile dyes that are commercially viable in order to reduce costs. These products are protect at KIPI In 2016, the company received a loan of US$ 300 million for upgrade from Indian Government

GROUP DISCUSSION ON LICENSING

PART THREE – Developing Institutional IP Policies. Training Workshop On University Industry Linkages For African Universities PART THREE – Developing Institutional IP Policies. OGADA TOM NIGERIA, APRIL 26-28, 2017

Contents Introduction Why IP Policy Key Stakeholders Key Issues Tools for implementation Success factors

Introduction 1. IP Politics

Key Objectives 2. Why an IP Policy Harmonize conflicting interest on various stakeholders Provide guidelines on key issues related to creation, protection and commercialization of IP Assets Define obligations and responsibilities of RTOs and the Inventors

The Stakeholders 3. The stakeholders Universities Inventors (Researchers, Students, Research Assistants, Guest Researchers etc) Sponsor Industry Collaborators Government Public RTOs National IP Offices

The Stakeholders 3.1. University and R&D institutions RTO is a key stakeholder since it provides R&D Infrastructure Salary Goodwill Knowledge basis to support a research

The Stakeholders 3.2. The Inventor as a key stakeholder Develops proposals and Sources for R&D funds Undertakes R&D Intellectual inputs Inventor requires Adequate recognition and reward for intellectual input Need for publication and promotion must be safeguarded

The Stakeholders 3.3. Sponsors, industries and collaborators Provides R&D funds Equipment Research material Intellectual input The interests of the sponsors, industries and Collaborators must be taken care of

The Stakeholders 3.4. Government and Public are major stakeholders General source of funding for R&D infrastructure and operation expenses Invest in universities and research organizations Expects returns Cares that the benefits reaches the widest scope of the society at affordable cost

The Stakeholders 4.5. Technology Transfer Office Creates IP awareness Manages IP disclosure, filing and protection Markets IP and negotiates for licensing TTO Implements Obligation of University Obligations of Inventors Confidentiality

4. Issues covered by IP Policy Key Issues covered by IP Policy Ownership of IP Rights Revenue or benefit sharing Government rights Privately funded research and intellectual property rights IP Assets management Research Commercialization Spin-off companies and licensing IP protection and maintenance Invention Process Conflict of interest and commitments

4.1. Issues covered by IP Policy Key Issues covered by IP Policy Ownership of IP Rights Revenue or benefit sharing IP Assets management Responsibilities and obligations of the main stakeholders

Key Issues 4.2. Ownership of IP rights The Policy to clarify who owns IP rights arising from Publicly funded research Privately funded research Collaborative research Donor funded research Students Activities Staff activities outside the university

Key Issues 4.3. Benefit Sharing The IP Policy is required to provide direction on the following elements What to share – income, royalty, equity Key beneficiaries – Inventor, RTO, Inventors group, Department, TTO Sharing principle Duration of income stream

Key Issues 4.4. IP Assets Management The policy will define how: Disclose and protect IP Commercialize IP Assets Finance IP protection, maintenance and marketing Manage conflict of interest Put in place structures required to implement the policy

5. Agreements required for implementation Policy Implementation 5. Agreements required for implementation Participation Agreement Material Transfer Agreement Confidentiality Agreement Contract Research Agreement Disclosure Agreement Consultancy Agreement

Policy implementation 6. Success Criteria Procure commitment from the Top Appoint a drafting team- internal, external, a driver Educate the stakeholders Discussion of the drafts by various stakeholders Public launching