1. Innovation Centre at University of Latvia: structure and costs calculation BSRUN Warsaw 2011

2. Facts about University of Latvia Faculties – 13 Institutes – 21 Study programmes – 140 Undergraduate 56 (40%) Graduate – 60 (43%) Doctoral – 24 (17%) Students – 19 095 Undergraduate 14 339 (75%) Graduate – 3 903 (20%) Doctoral – 853 (5%) Staff – 2954 Academic staff – 797 (45%) Administration – 207 (6%) Other staff – 1 950 (49%) Budget – 71 173 775 EUR (int.al. 17 772 015 EUR balance at beginning of year)

7. University of Latvia applied and approved patents 2006.-2010.

8. Patent cost calculation I. DIRECT COSTS 1. Wages, social insurance allocations 2. Travel and accommodation costs 3. Materials and supplies 4. Services (including patent application costs) II. DIRECTLY ALLOCATED COSTS 1. Equipment costs (depreciation) 2. Facilities / building depreciation costs and premises-related running costs (electricity, rent, supply, water supply and sewerage, heating, waste disposal, taxes, service staff remuneration): III. INDIRECT COSTS 1. Faculties and institutes administration and support costs (wages, social insurance allocations, supplies, services, equipment, facilities, etc.) 2. University central administration and support costs (wages, social insurance allocations, supplies, services, equipment, facilities, etc.) IV. PROFIT

9. Patent cost calculation example I. DIRECT COSTS 44 783.41 1.Wages 37 008.41 1.1.Wages One hour rate Ls / h Productive hours Proportion of productive hours Working hours 29 823.85 x3 230x3 852 1.1.1.Head researcher101 05082%1 28012 804.88 1.1.2.Researcher81 38082%1 68313 463.41 1.1.3.Laboratory assistant480090%8893 555.56 1.2. State social insurance contributions 7 184.57 2.2. TravelUnit cost, LsAmount2 000.00 2.1.Brazil100022 000.00 3.Materials, including:Unit cost, LsAmount600.00 3.1.Lab materials205100.00 3.2. Computers 5001500.00 4. Services and other expenses, including: Unit cost, LsAmount5 175.00 4.1. Telecommunication services 15575.00 4.2.Technical Maintenance502100.00 4.3Intellectual poperty protection500015 000.00

10. Patent cost calculation example (continued) II. DIRECTLY ALLOCATED COSTS 1 554.67 5. Equipment costs (depreciation) UL inventory number Costs Ls per 1 hour Working hours 437.50 5.1.Measuring instrument1112240.251750437.50 5.2. 0.00 6. Facilities / building depreciation costs and the premises related running costs (electricity, rent, supply, water supply and sewerage, heating, taxes, service staff wages): Room costs for 1FTE hour, Ls Working hours1 117.17 6.1.Kronvalda St. 4, room 3120.293 8521 117.17 6.2.

11. Patent cost calculation example (continued) III. INDIRECT COSTS 4 926.18 7. Faculties and institutes administration and support costs (wages, social insurance allocations, supplies, services, equipment, facilities, etc.) % of overheadsDirect costs2 239.17 Cost driver-1 Ls5%44 7832 239.17 8. University central administration and support personnel costs (wages, social insurance allocations, supplies, services, equipment, facilities, etc.) % of overheadsDirect costs2 687.00 Cost driver-1 Ls6%44 7832 687.00 TOTAL (I.+II.+III.) 51 264.26 Profit5% 2 563.21 Contract Price 53 827.47 VAT22% 11 842.04 The contract price including VAT 22% 65 669.51

12. UL Innovation Centre / general information Innovation centre of Technology transfer office Since 2006th – As part of MoE financed project to make TTO network in Latvia Structural unit in Planning and Development department 4 employees competent in: innovation management; biology, chemistry, physics; microbiology, pharmacy; IPR management The average age of employees 34 years

13. UL Innovation Centre / functions −Management of internal environment (IPR management, innovation support services to researchers, internal communication, education to researchers etc.) −Marketing (to companies) −Supporting the development of innovative ideas −Initiating commercialization processes

14. UL Innovation Centre / the main results Date base of Competences - information about 82 groups of researchers – Marketing tool for selling contract research projects) – we have visited every group of researchers 124 potentially commercialable ideas, technologies 25 seminars and contact/brokerage events – 3 spin offs have been established 23 commercialization proposals

15. UL Innovation Centre / IPR −Registered IPR −1 international patent −3 European patent applications −11 Latvian patent applications −IPR management regulations: elaborated and introduced −IPR belong to University of Latvia −researchers have to inform IC about the potential IPR −IC evaluates the commercial potential before granting support to protect IPR −Revenue sharing model - 50:50

16. UL Innovation Centre revenue / expenses structure ESF ERDF UL budget Co-financing IC administration Conferences and travel Intellectual poperty protection Revenue Expenses

17. UL Innovation Centre revenue / expenses structure 2006.-2010. EUR 20062007200820092010 Revenues76 764120 94493 94899 610110 843 UL budget -55 49212 80614 229 - Ministry of Economics69 00348 336 - - - ESF projects7 76117 116 - - - ERDF projects - -81 14285 381110 843 Expenses76 266107 484103 18791 320110 771 IC administration57 76978 71383 40971 69992 167 Conferences and travel9 9609 5337 8268 9645 976 Intellectual poperty protection8 53719 23711 95210 65712 628

18. Challanges Weak cooperation between industry and researchers; Commercial vs ‘academic’ value of patent; Project results (IP) belongs to financer; ERDF for non-commercial research projects; In time IPR expenses increase and value decrease;

19. Thank you!