IITKharagpur9

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

Major concern

43% percent of investors think that India needs to enhance the qualityof its labs and research.

38% of Investors cite distance between research institution and industryas a roadblock to developing new products in the country.

A. Poor design and enforcement of Intellectual Property Rights lawB. 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 technologiesD. 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 facultyDespite 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

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.

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

qualification 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.

Gaps

R&D conducted in isolation withoutmarket inputs.

Many technologies stuck in labs andnever see the market

R&D diluted and not focused on a fewimpact solutions.

Adaptation of available technologies tolocal needs.

Bridging the Gap

Reduce fragmentation and createawareness about the ongoing R&Dactivities..

Standardize contractual agreementsand commercial terms with industry.

Systematic facilitation of collaborativeR&D with focus on technologies thatcreate high impact solutionsA knowledge database withassessment of potential for localizationof worldwide technologies.A support system for globalcollaboration on R&d , Technologytransfer 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.

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 globalnexus 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

World Class Centers of Excellence (WCCE)

Students, Teaching staff and Researchers

Dynamic Knowledge & Technology

transfer

Fost

eri

ng

& S

hap

ing

Tale

nt

• “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.

Rev

ers

ing

“Bra

in D

rain

” • 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.

Res

ear

ch c

on

du

cive

Ec

osy

stem

Cre

atio

n • 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.

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 RequiredInfrastructure 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

Organisation Structure

Chief Executive Officer (CEO)

Partnership Development Manager

Technology Analyst

Research FellowsProject Manager Investment Officer

International Networking

and Collaboration

Technology Development and

Transfer

IP CellCapacity 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)

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)

Concept and Implementation Challenges

Potential Risks

Risk Description Potential Mitigation

Financial Obtaining funding for operations and buildings

Accepting/dispersing finance in an efficient and transparentmanner.

Secure funding from the Government and establish strategic alliances with privateinvestors. Leveraging investment to the tune of 1:1 in cash and kind from local as wellas private partners over the first five years of establishment.

Clear governance structure and strong implementation partners.

Implementation Bridging cultural barriers between the academic and businesscommunities 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 andinnovatively 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 conduciveenvironment 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 isequivalent to INR695 crores. If this amount is combined with equal investment fromprivate sector, approximately INR1400 crores can be arranged.

Stakeholder support Continued support and buy in from government, industry andpartner institutions.

Partnership managers to maintain and develop relationships, board seats for keystakeholders.

• 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