The document discusses challenges facing technology transfer offices (TTOs) in emerging markets and potential resolutions. Key barriers include insufficient infrastructure, low capital, weak innovation pipelines, lack of skilled professionals, and cultural mindsets. The International Finance Corporation could address these barriers by setting up centralized TTO support offices, establishing risk-sharing investment funds, developing training programs and marketing materials, and creating mentorship programs between TTOs in developed and emerging markets. Next steps proposed include assessing priority countries based on research funding and commercialization metrics, diagnosing specific barriers, and organizing stakeholder meetings to gain commitments to action plans.

1. IFC Emerging Market Technology Transfer Convocation 14-15 May, 2009

2. HI 2 - Participants Group Co-Chairs Jane Muir Technology Transfer Manager University of Florida Marcelo Menossi, Ph.D. Professor and Director UNICAMP Tech Transfer Office Participants Natalia Zolotykh Transtechnology (Russia) Kevin Donovan Georgetown University Zhu Yizhun Fudan University IFC / World Bank Participants Dimitrios Zevgolis World Bank Sylvia Zulu IFC Facilitator Jean Hayden Dalberg IFC “Circulator” Gordon Myers Wharton Wharton Workshop Intern Jose Baez

3. HI 2 – Situation & challenges How can IFC advisory capacities be supplemented, enhanced and packaged to develop TTO capacity in emerging markets? Issues associated with the establishment, operation and effectiveness of TTOs in emerging markets include: Enabling culture and environment Operations, management and procedures Marketing innovation licensing and spin-outs Integration into global technology marketplace Sustainable development

4. HI 2 – Key Framework Key Stakeholders Barriers of TTOs Faculty Administration/TTOs Government Industry NGOs/Interest Groups Legislation/Regulation Incentives Human Resources Insufficient Infrastructure/Low Capital Culture/Mindset Weak Pipeline Marketing

5. Legislation/Regulation Brazil/Russia~ lack of consistency in the interpretation of the laws by the court system. China~ upon approval Chinese government will pay all fees for patent filing both domestically and internationally. Chinese government proposed IP law code. IP ownership laws Brazil~ every license involving exclusive rights, despite funding source, must go through bidding process that can take up to two months. Authority to Execute Agreements Eastern Europe~ unclear authority/responsibility to execute (i.e. TTO, Government, Scientist) Incentives Royalty Distribution China~ scientist receives 40% of royalties tax free. Russia~ law states that the royalties from patents produced by state funded research facilities belong to the state. (R$D facilities have title but no rights). State funded research facilities are mandated to file patents. Tenure/Non-monetary incentives Human Resources Inadequate supply of skilled professionals Brazil-every university is required to have a TTO and most contain little/no experienced professionals, and frequently operate alone with little guidance. Hard to retain skilled technology transfer professionals (Salaries, Industry) Russia~ lots of talented patent professionals, but no one wants to work in TTOs because of low salaries. Common Barriers to a Successful TTO

6. Common Barriers to a Successful TTO Insufficient Infrastructure/Low Capital Resources Little training/mentoring support system in place for many technology transfer Offices Culture/Mindset Struggle with “Academic Mindset” scientists can’t explain their technologies, or don’t want to commercialize (maintain academic purity). Lack of Awareness by Industry Brazil~ industry isn’t fully aware of opportunities that innovations present to their businesses. Management of Expectation/ Metrics Establishing realistic expectation among all stakeholders. Insufficient Technology Pipeline Few worthwhile innovations Smaller Part 2 countries (e.g. Zambia, Kenya, Peru) Marketing Lack of understanding of the value proposition of TTOs by key stakeholders China~ scientist prefer to negotiate directly with Industry. Inability to link with Industry Russia~ the research being developed by the r and d facilities along with the universities is too advanced for the capabilities of Russian manufacturers. China~ has an online database of all patents that are filed. Use of technology brokers (maybe a role for the IFC).

7. HI 2 – Resolutions & interventions IFC Business Plan Elements: highlight legislative and regulatory obstacles in member countries, including IP framework. Assist H1 organization in preparing country audits, and integrating intellectual property and related innovation issues into the Doing Business Report. work with HI 1 international organization to provide training under the Business Edge brand. identify best practices to incentivize innovation and technology harvesting at emerging markets research institutions and their faculty. Translate and localize a set of best practices for TTOs. Would require use of local law firms, regulators, etc. “ determining what is needed for the intervention…” Legislation Incentives Human Resources Culture/Mindset

8. HI 2 – Resolutions & interventions IFC Business Plan Elements: track research dollars in order to identify gaps/trends in the research. in low volume regions, create a national/regional organization that centralizes core capabilities that can be leveraged by local TTOs. create presentation for use by TT professionals containing talking points about value proposition of TTO to each stakeholder. work with TT organizations to create a training program containing the core skills needed by TT professionals (Praxis Study could be a guide). leverage SME platform to raise awareness of potential benefit from relations with TTOs. “ determining what is needed for the intervention…” Weak Pipeline Insufficient Infra. Human Resources Marketing

9. HI 2 – Resolutions & interventions IFC Business Plan Elements: structure formal and informal partnerships between research institutions, private sector, and government. Attempt to manage expectations. create a point of contact for TTOs worldwide at each field office, in order to facilitate better use of IFC tools and offerings. creation of funds to provide risk-share capital in Part 1 countries (first loss guarantees). Development of global angel network. develop local capacity. Establish a buddy/mentor programs with TTOs in Part 1 countries paired with TTOs in Part 2 countries. “ determining what is needed for the intervention…” Marketing Insufficient Infra. Low Capital

10. HI 2 – Output - Recommendations Key Stakeholders Barriers Faculty Administration Government Industry Legislation/Regulation Incentives Human Resources Insufficient Infrastructure/Low Capital Culture/Mindset Insufficient Technology Pipeline Marketing Set up centralized office that allows TTOs to outsource. (Moderate Cost/ Long Term) Establish funds to lower the risk associated with angel investing. (High Cost/ Long Term) Development and marketing of web based training platforms for TT professionals. (Moderate Cost/ Medium Term) Localization and translation of available TT material (WIKI). (High Cost/ Medium Term) Buddy/Mentor program. (Low Cost/ Short Term) Expansion of Doing Business Report to include TT metrics. (Low Cost/ Medium Term ) Creation of standardized marketing material. (Low Cost/ Short Term)

11. HI 2 – Next Steps Asses the Part 2 countries in order to determine the countries of greatest impact: Research dollars should indicate the degree of commercialization potential within a given country. Review output of the countries: is patent activity high? Is licensing and deal-making occurring? identify initial countries for focus Diagnose the situation in initial target countries Which barriers are holding back commercialization, e.g. legislative framework, talent, training Organize convocations in targeted countries with all stakeholders demonstrate benefits of well-operating technology transfer infrastructure develop country action plans to improve Get commitment from key stakeholders to act (e.g. MOU) Track success/failure of countries, either within the Doing Business report or under a separate technology transfer index