Delivered to BIN@Sheffield 2014, universities role in leading the knowledge sector

1. Universities Role in Leading
the Knowledge Sector:
Evidence from Israel
Dr. Tzameret H. Rubin
●Prof. Dan Peled● Prof. Benny Bental
November 2014
@ All rights reserved
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

2. The bigger picture
We (nations) want to stimulate innovation to create
sustainable economic growth, improve citizens wellbeing.
How we do it?
Gov. bridges market failures and support long term
innovation investments - one of the mechanism doing so is
promoting public R&D. This creates knowledge to ‘show the
way’ and ‘educate’ the private market by creating outputs
such as graduates and knowledge in general (measured in
patents, publications etc.)
So??
A flourishing R&D in the private sector is it ‘that bad’??
Looks like Israel innovation indicators are leading among
OECD countries, so why to question what is going right?
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

3. A Global Challenge
Israel is not the only country that asks these
questions.
The National Academy of Science (NAS)
conducted a comprehensive review of how the
U.S. research universities should face the
growing competition, losing its advantage it
had enjoyed since World War II. The reduction
in gov. support, and technological changes that
allows fast growing countries to ‘catch up’ .
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

4. The Research Scope
The Israeli National Council for Civilian
R&D - a consulting gov. body - have
assigned the Technion SNI to examine ‘The
Israeli research Universities’ role in the
national R&D system’.
• Looking at other innovation systems in
the world
• Inputs
• Outputs
• recommendations
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

5. INPUTS
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

6. Civilian GERD
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

7. GERD/GDP
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

8. Civilian GERD by
Performing Sector
Israel
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

9. GERD by Performing Sector,
International comparison, 2011
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80%
77%
75%
70%
69%
68%
68%
68%
68%
67%
67%
63%
61%
54%
52%
52%
51%
43%
11%
14%
11%
17%
10%
4%
5%
5%
2%
9%
9%
12%
9%
15%
14%
4%
9%
13%
13%
13%
20%
26%
15%
26%
28%
30%
23%
18%
21%
27%
29%
37%
32%
38%
46%
Israel (9,487)
Japan (140,959)
Korea (53,243)
Finland (7,635)
Sweden (13,216)
United States (415,193)
Austria (9,762)
Ireland (3,277)
Denmark (7,052)
Belgium (8,719)
Germany (91,737)
France (51,891)
United Kingdom (39,627)
Italy (24,812)
Netherlands (14,581)
Norway (4,970)
Canada (24,258)
Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel
11%
3%
2%
2%
1%
0%
4%
0%
0%
0%
0%
2%
4%
0%
0%
0%
0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Turkey (9,713)
Business enterprise Government Higher education Private non-profit

10. Share of GERD Performed
by Business Sector
IL vs. other countries
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

11. GERD by Funding Sector, 2009
Business enterprise Government Higher education Private non-profit Abroad
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36%
47%
45%
51%
59%
46%
45%
59%
45%
44%
60%
44%
48%
52%
68%
68%
54%
27%
43%
38%
44%
66%
41%
75%
71%
62%
25%
27%
28%
31%
24%
23%
27%
18%
35%
33%
42%
41%
44%
42%
47%
47%
31%
34%
45%
14%
46%
34%
30%
60%
39%
38%
17%
17%
16%
12%
11%
10%
10%
9%
9%
8%
7%
7%
7%
6%
6%
5%
5%
5%
4%
Israel
Austria
United Kingdom
Ireland
Belgium
Hungary
Netherlands
Sweden
Czech Republic
Italy
Denmark
Norway
Canada
France
Finland
Switzerland
Singapore
Poland
Spain
New Zealand
Portugal
Germany
Turkey
Japan
Korea
Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel
4%
11%
46%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
United States

12. Universities’
OUTPUTS
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

13. High Education System
performances
• All 7 research Uni. In Israel are in top
500 (ARWU 2013)
• The quality of academic research –
ranking among the 40 OECD
countries, (top 25% article cited,
normalized by the country's GDP),
Israel is ranked fourth among the 40
developed countries
• The number of triadic patents per
Billion $ GDP: Israel 1.68, OECD
average 0.42
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

14. Methodology I
We wanted to understand if the outputs in the Israeli
industries is different than the universities outputs,
measured in PCT Patents Applications.
The problem – matching Industry Classification codes ISIC
with PCT fields codes.
Solution – using a Lybbert and Zolas concordance - they
map the probability of each PCT code to match a specific
industry.
We took the universities patents convert them to industry
codes, and did the same for private companies patents.
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

15. Methodology II
Data: we use PATSTAT data looking at European Patent
Office (EPO) in the years 1990-2010.
First , we present universities patent data relative to the
total patents granted in each of these countries in order
to understand the significance of universities activity
within its country.
Second, we examine the areas of universities patents in
relation to the segments of the business sector in Israel
and each of its benchmarked countries
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

16. EPO Patents
Applications
2.5%
1200
1000
2.0%
800
600
1.5%
400
200
1.0%
0.5%
0.0%
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6000
5000
4000
3000
2000
1000
0
EPO Patent Applications - CH
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Switzerland University patent applications
Switzerland Total applications
Switzerland University sector share
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
6000
5000
4000
3000
2000
1000
0
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
P
e
r
c
e
n
t
N
u
m
b
e
r
EPO Patent Applications - NL
University patent applications Total applications University sector share
P
e
r
c
e
n
t
EPO Patent Applications - IL
University patent applications Total applications
University sector share
We attributed the Israeli
significant role of universities in
patenting due to the declining
government funding of research
that 'pushed' the universities to
look for other research funding,
where patents are used to secure
any commercial process.

17. Correlation Along the Years
Between a Few Comparable Countries,
by using the Concordance
1990-1994 1995-1999 2000-2004 2005-2010
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90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel
R 2^Value
Switzerland Netherlands Belgium Israel

18. Uni. and Private Sector
Patents, Correlations by Field
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

19. Patents Applications
Counts
With a dominant private sector in R&D
expenditure, if businesses are not aligned with
universities fields of research, such gap of
knowledge and resources might cause a future
problem in the national R&D system in terms of
Graduates
The ability to leverage universities knowledge.
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20. The End
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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel