Intellectual Property Management: Key to Successful R&D Strategies Muscat, February 16, 2005 Intellectual Property and Economic Development Division Roya Ghafele,

IP Management in R&D Chart 2 Source: R.Ghafele The Main Take Away IP Management allows to better handle risks & uncertainties related to R&D & facilitates the interaction between the public & the private sector. Inadequate approaches to IP Management may hence be considered one of the major factors why the full potential of R&D remains unexploited. Governments have different public policy choices at their disposal to manage IP. No matter which approach is chosen essential regulatory settings ask for a clarification of ownership of IP created, the establishment of IP Management Centers & apt financial schemes for and within public research institutions. Oman is well aware of these trends; may however emphasize stronger on the IP Management dimension.

IP Management in R&D Chart 3 Source: R.Ghafele The Relevance of R&D for Prosperity Approaches to IP Management in R&D Framework of Action AGENDA

IP Management in R&D Chart 4 Source: R.Ghafele R&D Activity in Selected Countries, UNDP Human Development Indicators 2004

IP Management in R&D Chart 5 Source: R.Ghafele R&D is a Source of Wealth, yet Leveraging its Full Potential can be Challenging Little knowledge about IP No IP Management Petrol based trade Loneliness syndrome R&D perceived as a luxury Unclear mission of universities Brain Drain Insufficient cross-sectoral learning, UN MDG Task Force on STI Fights Desert- ification Enhances nutritional patterns Improves public health Creates Employ- ment Engine of economic growth Impact categories of R&D

IP Management in R&D Chart 6 Source: R.Ghafele The Relevance of R&D for Prosperity Approaches to IP Management in R&D Framework of Action AGENDA

IP Management in R&D Chart 7 Source: R.Ghafele Intellectual Property is key in R&D IP R&D Risky Uncertain Costly Explorative Complex Hedges against risk Rewards discovery Attributes ownership Facilitates knowledge trade Codifies knowledge

IP Management in R&D Chart 8 Source: R.Ghafele R&D with and without IP protection Not IP Protected R&D IP protected R&D Owner decides what to do with research: IP can be gifted, donated, sold, licensed Both basic and advanced R&D may be promoted R&D Findings are available for free to business Basic R&D may not get further developed

IP Management in R&D Chart 9 Source: R.Ghafele R&D Functions as a Public- Private Partnership, where Interaction mainly Happens through IP Return on Investment with Equity Basic research Applied research Spillovers through IP Markets of little relevance Early stage product development Market driven Bring products to the market R&DR&D, Carlo Carraro

IP Management in R&D Chart 10 Source: R.Ghafele The Relevance of R&D for Prosperity Approaches to IP Management in R&D Framework of Action AGENDA

IP Management in R&D Chart 11 Source: R.Ghafele Approaches to IP Management... Options for Managing the Profit Motive Not for Profit Approach Commercial Approach Hybrid Public/ Private Approach Private & public funds IP donated for sake of enhancing public welfare Strong incentives for private investments in R&D Relies on market mechanisms to foster innovation Merges public & private sector expertise & investment Amalgam of commercial & non commercial mechanisms, Antony Taubmann

IP Management in R&D Chart 12 Source: R.Ghafele … and Corresponding Basic Regulatory Settings Predictable and Reliable IP Regulation Corresponding institutions that work efficient & effective Clear ruling on who owns IP created in public research Apt Financial Schemes Debt & equity Finance available on the basis of IP Granting schemes for obtaining IP protection IP as a funding criteria for advanced research IP Management Centers within Public Research Act under public welfare paradigm Take away administrative burdens from researchers Promote IP aware research culture Trade IP in an equitable way

IP Management in R&D Chart 13 Source: R.Ghafele Possible Practical Next Steps Be very specific about the ownership of IP that is created within Public Research Institutions Build awareness among the R&D community of the advantages and possible pitfalls of using the IP system Expand the establishment of IP Management Centers within Public Research Institutions Allow researchers to get access to funding on the basis of IP Make IP protection affordable to everyone; either by bringing down costs or further fostering grants for the protection of IP