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  1. 1. A robust model promoting research and innovation . Manthan Topic: Brain Gain 1 Team: Rajiv Gandhi School of Intellectual property Law, IIT Kharagpur Team members: Ashish Kumar Srivastav, Isha Suri, Vishwambara R Sneh Tiwari, Avinash Kumar Sharma
  2. 2. Major concern  43% percent of investors think that India needs to enhance the quality of its labs and research.  38% of Investors cite distance between research institution and industry as a roadblock to developing new products in the country. A. Poor design and enforcement of Intellectual Property Rights law B. Poor research Infrastructure  Country spent only 0.9% of its GDP on R&D during 2009  The country’s output in new design innovation was 39 as opposed to 53,000 in China during 2002. C. Low Industry to lab linkages leads to unviable or unutilized research. Lack of industry linkage and conducting research in isolation with public sector R&D centers has severely hampered the quality of research in the Indian Institutions. Difficulties in commercialization of developed technologies D. The poor quality of education in the country also remains a big barrier to cutting edge research. Lack of research activity and shortage of high-quality faculty Despite having one of the largest higher education system in the world few Indian institutions have earned global distinction. In pursuit of better quality education, an increasing number of Indian students are studying abroad. Researchers in R&D per million people in 2006 in India was 119, while that of the US was 4,628. Source: Ernst & Young's 2012 attractiveness survey
  3. 3. Snapshot of Solution Proposed Integration of India core Capabilities to create Solution Platform •Research Institutes =400 •MNC R& D Centre = 870 •Number of Universities =530 •Number of Engineering Colleges=13 •Number of students enrolled in technical courses is equal to 4.30 lakhs. •National Innovation Foundation. Current Industry Clusters Health Energy Biotechnology ICT Research & Innovation Park IPR Policy for Pro Innovation Innovation based Growth Inclusive Growth World Class R& D Ecosystem Capture New economic opportunities. Talent Development Pharmaceutical Green Technology 1. Exclusive Innovation 2. Innovation for India Centric Problem 3. Making technology accessible to people at the bottom of the pyramid. 4. Creating an Innovation Ecosystem.
  4. 4. Gap Need Pro-Innovation Policy • Shortcomings in the existing IPR regime. • Weak patent processing system. • 2012: IPO - 123,255 patent app. pending for examination. • IPO: 214 patent app. per examiner per year | World benchmark: 100 patent app. per examiner per year. • Efficiency in patent examination. • Applicant interview for fast track examination. • Specialised IP protection for SMEs and small inventors. • Creation of Satellite offices. • Promote international patent harmonization • Build a Highly Transparent and Predictable Patent Examination Mechanism • Creation of Patent Satellite offices • Utility Model Patent system • Preferential Accelerated Examination system International Patent Harmonization Patent Prosecution Highway: Fast track Examination Procedure where patent examiners can make use of the work products from other offices. Average First Action Pendency • Non-PPH: 25 Months • PPH: 2-3 Months PPH is a Powerful Tool for Both Applicants and Offices Reducing Overall Costs Reduces pendency times thereby saving costs for Applicants and Offices Attracts Rapidly Evolving Industries Decreases Pendency Utility Model Patent System Types of inventions automatically routed for accelerated examination with fee waiver: 1. Energy inventions 2. Green technology 3. Anti-terrorism technology Term of protection: 7 – 10 years. Advantageous for SMEs that make incremental change/ minor improvement to the existing. Benchmark criteria: Less stringent criteria for inventiveness than for patents Preferential Super-Accelerated Examination System Applicants can opt for Accelerated Examination System by paying a higher fee. Disposal of applications: Within 12 months Expedited handling throughout the entire patent application process Intellectual Property Policy for Pro-Innovation Increase in efficiency of patent examination system. Increase the salary of the examiners Double the number of patent examiners Increase the qualificatio n for intake as examiners Setting up Patent Satellite Offices in Bangalore and Hyderabad: Top 6 States that are filing highest number of patent includes: States with already established Patent Offices + Karnataka +Andhra Pradesh Orphan drugs (for instance HIV/ AIDS): Granting Exclusive Marketing Rights to manufacturers of these drugs for a period of 7 years. This shall in turn incentivise inventors to undertake research in this area.
  5. 5. Gaps R&D conducted in isolation without market inputs. Many technologies stuck in labs and never see the market R&D diluted and not focused on a few impact solutions. Adaptation of available technologies to local needs. Bridging the Gap Reduce fragmentation and create awareness about the ongoing R&D activities.. Standardize contractual agreements and commercial terms with industry. Systematic facilitation of collaborative R&D with focus on technologies that create high impact solutions A knowledge database with assessment of potential for localization of worldwide technologies. A support system for global collaboration on R&d , Technology transfer and knowledge sharing Benefit for Industries •Retains and attracts the best brains that are industry-ready by acquisition of industry oriented research and technology experience. •Readily available infrastructure. •Potential for shared facilities and resources. •Tax incentives. •Attractive one- stop services: IP strategies such as Accelerated Examination system, Patent Prosecution Highway. Benefit for Universities •Gain Global recognition. •An increase in grants will improve the laboratories significantly.. •Students shall be exposed to state of the art technology. •Nurturing the talent of the graduates for getting placed in the top class industries. •Out of box thinking shall lead to a surge in innovative ideas. Innovation Ecosystem Special Features •Fosters and nurtures talent pool for research. •Attracts domestic as well as international students as well as researchers, thereby providing them with a cross-cultural environment to brainstorm in. • Creates a large industry base •Signature site for the innovation economy •Industry-targeted services. •Knowledge and Technology Transfer.
  6. 6. Innovation Centre Technology Transfer & IP Policy Business Incubation Service Capacity Building, Training and Mentor Service International Networking & Collaborations Financial Independence Technology Development Scientific Services  Focus on talent development by developing itself as a global nexus for local as well as international scientific talent.  Help to capture new economic opportunities.  provide a concerted and structured effort to faster inter- disciplinary research.  Creating a world class environment for scientific career development.  promoting science to the young people and building a pipeline of R&D talent. Proposed Model Location • Suburban community • < 500,000 population Area • 100 acres Governance • University or university-affiliated non-profit Tenants • 72% :profit companies • 14% : university facilities • 5% : governmental agencies Employment Opportunity • 3000 Scientists + 8000 Technical Staff Finances • 300 crores INR Fund inflow • Revenues from park operations + University fund + State and central fund Services provided • Assist in accessing state and other public programs • Linking to or providing sources of capital • Business planning • Marketing and sales strategy advice • Technology and market assessment Priority industry sectors IT, Pharmaceuticals, Scientific & Engineering service providers, Health and Energy. Pro-Innovation Proposed Model
  7. 7. World Class Centers of Excellence (WCCE) Students, Teaching staff and Researchers Dynamic Knowledge & Technology transfer Fostering&Shaping Talent • “Youth on the move”: Ensure at least 20% mobility of Indian University students through foreign exchange program every year for gaining knowledge. • “Brain circulation”: turning of academic talent into industry– ready scientists. • Strong and vibrant visiting faculty programs across nations. • Promote co-inventor innovations through collaboration with foreign universities as well as industries. Reversing“BrainDrain” • Economic incentive and better social security system for Scientists and Technologists of Indian origin. • Retaining of home- grown talent by offering assured career for 15 years. • Special packages for scientist willing to settle in India. • Offering Start-up Visa and streamlining visa policy. Researchconducive EcosystemCreation • World class research oriented infrastructure. • Knowledge and Technology transfer. • Research and Scholarship grant schemes. • Pro-innovation IPR Policy. • Promote international patent harmonization. • Flexible examination system corresponding to the various needs of the applicants such as super-accelerated examination.
  8. 8. Details of the setting-up, Launch Funding: Finalise funding sources and close-on transaction , revise budget appropriately. Admin and Infrastructure: Incorporate the company, establish office, create operating policies, launch Programs Launch policy advocacy Launch additional programs: mentor training, entrepreneurship training, develop toolkits Launch R&D collaboration program Innovation cells Launch applied R&D programs Monitoring and evaluation Technology assessment and management Commercialisation of technology Creation and protection of a strong IP base Year 1 Year 2 Year 3 Year 4 Year 5+ Implementing the Model Total Funding Required Infrastructure Cost Internal Lab Facility Cost IP management Student Exchange International Faculty Visit INR 125 Crores INR 25 Crores INR 75 Crores INR 25 Crores INR 50 Crores Total Estimated Cost for 1 Research Park is INR 300 Crores Organizational set up and administrative costs Technology development cost Total Operation Cost Research Grant Talent Grooming Cost
  9. 9. Organisation Structure Chief Executive Officer (CEO) Partnership Development Manager Technology Analyst Research Fellows Project Manager Investment Officer International Networking and Collaboration Technology Development and Transfer IP Cell Capacity Building, Training and Mentor Services Business Incubation Service Innovation Cell Network Quality Insurance Cell Partner Organisations, Universities and Industry Technologists, Entrepreneurs, Start –up firms, Industry and SMEs Board of Governor (Academician, Industrialist and 1 Government Representative)
  10. 10. Impact and Reach Universities 1. More grants at their disposal, which would in turn increase the overall research activity. 2. Exposure to industry specific needs which will further enable them to provide real time solutions. 3. Increase in the number of patents filed and subsequently granted. 4. Significant improvement in the quality of faculty and students. 5. Inter-disciplinary research. Students 1. Direct interaction with the industry through internships as well as research collaborations. 2. Ability to learn in a global environment through exchange programs. 3. Opportunity to work with leading scientist in India as well as across the world. No of patents to increase considerably 1. Target of filing 200 patents each year from a single research park. 2. An increase in the number of patents granted by the Indian Patent Office through the introduction of differential patent regime. Employment generation- direct as well as indirect 1. One job in a research park shall on an average create 2.67 indirect jobs in the market. 2. Each park shall have approximately 3,500 scientists and an estimated 8,000 technical staff to support them. Miscellaneous 1. The overall quality of research and development in the country will improve. 2. An increase in public private partnership. 3. India’s ranking on the global innovation index shall improve from the current ranking of 66 (2013)
  11. 11. Concept and Implementation Challenges Potential Risks Risk Description Potential Mitigation Financial  Obtaining funding for operations and buildings  Accepting/dispersing finance in an efficient and transparent manner.  Secure funding from the Government and establish strategic alliances with private investors. Leveraging investment to the tune of 1:1 in cash and kind from local as well as private partners over the first five years of establishment.  Clear governance structure and strong implementation partners. Implementation  Bridging cultural barriers between the academic and business communities and facilitating true partnerships.  Overcoming commercialization challenges.  Attraction as well as retention of talent.  Parks must continue to serve as an intermediary that understands both cultures and innovatively fosters integrated, collaborative efforts.  Research park will need to offer funding and support for technology commercialization, including proof of concept funding.  Proper incentives must be provided to attract new talent. Furthermore, a conducive environment for growth must be provided to retain the said pool of researchers. Conceptual  Initial investment capital is high and could prove to be a hurdle  DST has been allocated INR21,000 crores during the 12th five year plan; 3% of which is equivalent to INR695 crores. If this amount is combined with equal investment from private sector, approximately INR1400 crores can be arranged.  Stakeholder support  Continued support and buy in from government, industry and partner institutions.  Partnership managers to maintain and develop relationships, board seats for key stakeholders.
  12. 12. • Unleashing India’s Innovation: Toward Sustainable and Inclusive Growth, World Bank, Washington, D.C. • Understanding Research, Science and Technology parks: Global best practices, Prepared by Committee on Comparative Innovation policy in association with National Research Council of the National Academies. • Characteristics and Trends in North American Research parks: 21st Century Directions, Prepared by Battelle Technology Partnership Practice and developed in association with Association of University Research Parks. • The Power of place: A National Strategy for Building America’s communities of innovation, Published by Association of University Research Parks. • ‘Engaging Diaspora: The Indian Growth Story’, FICCI Theme paper. • A business plan for financing and implementation of a CIC in India, prepared by InfoDev for the UK’s Deparment for International Development. • “India: The uneven innovator” - The Atlas of Ideas: Mapping the new geography of science, prepared by DEMOS, UK. • India’s Emerging Competitiveness as Destination of Global R&D, A knowledge paper prepared by FICCI in association with Battelle India resulting from Global R&D Summit 2013. • R&D Ecosystem in India, A EvalueServe study, A Report commissioned by the British High Commission and the Canadian High Commission, New Delhi. • Creative Switzerland? : Fostering an Innovation Powerhouse!, Joint Study of the Swiss–American Chamber of Commerce and The Boston Consulting Group, Zurich. • The Growth of Research Triangle Park, Research paper by Department of Economics, University of North Carolina at Greensboro & Dartmouth College, Hanover. • Indiana Competitiveness: State and Cluster Economic Performance, Michael E. Porter , National Governors Association Winter Meeting. • Driving Today’s New Economy, an Economic Impact Study of the Purdue Research Park Network, May 2011, Research by Thomas P. Miller and Associates. • Purdue Research Foundation, 2009-2010 Annual Report. • Annual report of The office of the Controller General of patents, designs, trade marks and Geographical indication, Indian Patent Office, 2010-2011. • White paper on Simulation of Investment of Private Sector into Research and Development in India, Report of the Joint Committee of Industry and Government (JCIG), May 2013. References