Management of intellectual property in publicly-funded research

feedback and frequent interactions at different levels between Science and Industry. This is one of thegoals of the Framework Programs sponsored by the European Commission.This observation is further reflected in the revised definition 12 of innovation as being “the conversionof new knowledge into economic and social benefits – now acknowledged to take place as the result ofcomplex long-term interactions between many players”. This is exactly what the Innovation Modelsets out to achieve.The Innovation Model is comparatively more developed in certain European countries, notably theUK, Scandinavian countries, Netherlands and Belgium, than in the US. The potential benefits for thepublic and for the university will also be larger and more regional in character.One of the consequences of this difference is that the metrics developed to measure the efficiency ofthe knowledge transfer process should not be limited to the patenting and licensing cycle but shouldalso capture the importance of collaboration with industry and the assistance in the creation of newcompanies.1.5. The Way Ahead – An Innovation Model in parallel with the Open ScienceModelThe “Open Science model” has proven very effective in fostering the advancement of science andknowledge. It is probably more appropriate for fundamental or basic science and social sciences. Incertain instances where the technology has far reaching implications and where the risks ofmisappropriation by private interests are detrimental to the public, the open science model can even bethe most effective to promote innovation. IPR management has a very limited role to play here.On the other hand, there is substantial evidence from the surveys conducted by the Association ofUniversity Technology Managers (AUTM) that the progressive implementation of the “licensing”model in the USA since 1980 has produced substantial returns to the US economy in terms of newproducts, new businesses and employment. It is estimated that at least half the new products based onuniversity patents would not have been developed if the results had been put in the public domainwithout patent protection.The recently published OECD Report 13 demonstrates that mere application of the licensing model hasnot been able to generate the same level of financial or economic results as in the US. There are anumber of reasons for this and these are explored in more detail in later chapters. On the other hand,certain PROs have pioneered the implementation of the innovation model with conclusive evidence ofsuccess in terms of increased new company generation, enhanced relations with industry and licensingactivity. The two models are actually complementary and should be supported. By the same token, itwould be a mistake to orient all research conducted at PROs to short or medium term economicapplications. PRO’s should seek to strike a balance between the two models thus ensuring that IPgenerated from public funding which has potential economic or social applications is managed in aprofessional manner.12 The October 2002 special edition of Innovation & Technology Transfer includes a very useful glossary ofterms; www.cordis.lu/itt/itt-en/02-spec01/glossary.htm13 Op. cit.11