Topics to be Covered
I. What is IP? II. Why is IP Important? III. What is IP Strategy? IV. Who will make IP Strategy? V. How to make IP Strategy?
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I. What is IP?
PROPERTY
Real
Personal
Capital
Intellectua
l
VALUE CREATION ACTIVITY
Product Creation Investment Improvement Sale Rent or Licensing
RESULTS
Revenues/ Profits
Employment Appreciation Solution of
Needs
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Patents (inventions) Trademarks Industrial designs Geographical
indications Copyright (works of
authorship) Trade Secrets, etc.
Human CapitalHuman Capital
Strategically Developed,
Targeted to a Marketand Used
Strategically Developed,
Targeted to a Marketand Used
+
What are “IP Assets”?
Intellectual Property and Its Role in Economic Development
Jared NyaguaIP and New Technologies Division, WIPO
WIPO National Roving Workshop on IP StrategyBeira, Nampula and Maputo, MozambiqueFebruary 6 to 14, 2006
II. Why is IP Important? Economies
based on land, physical assets
Trade in goods Cheap labor Nationally
based trade Pre-Internet
economy
Old Economy New Economy
• Knowledge Based Economies
• Value-added goods /IP Licensing
• Productive Human Capital
• Regional/Global Markets
• Internet
There is an IP Divide... 91% of patents are from OECD
countries. PCT filings and national patent
filings in developing countries are by non-residents primarily.
Why IP is Important?
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Cultural industries Trade in cultural goods has grown exponentially over the last two decades.
Between 1980 and 1998, annual world trade of cultural goods surged from US$95.3 billion to US$387.9 billion.
On a global scale, trade remains concentrated in a few countries: in 1998, thirteen countries were responsible for more than four-fifths of imports, and twelve countries for the same proportion of exports.
Why IP is Important?
World Trade of Cultural Goods (in millions of dollars, 1980-98)
Source: Study on International Flows of Cultural Goods Between 1980-98, UNESCO 2000.
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Because of technology access...
Lack of IP assets is a disadvantage Royalty drain instead of royalty stream Owning IP assets is an advantage
Why IP is Important?
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Because of IP Licensing... Worldwide licensing revenues
– In 2001, $US 100 billion estimated Pharmaceutical licensing
– In 1996 US$3.5bn– In 2000 US$10.5bn
IT licensing University and research center licensing
– In 2000 $US 1.3 billion by non-profits in North America
New entrants--Singapore, Brazil, Korea
Because IP Owners Use IP Assets to Make Money...
Build valuable portfolios of IP as base for licensing revenues;
Offensive: Monopoly power for price and products;
Defensive: Avoid and defend against litigation; Enhance products, upgrades, higher revenues
and margins; Promote brand value for advertising; Attracts Investments, Strategic alliances, joint
ventures; Enhance corporate valuation.
Why IP is Important?
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Because IP is in Every Sector...
Categories of technical projectsfunded by the World Bank andRegional Development Banks
Issued patents by the USPTO(since 1976) related to thosecategories
Patents published in2001 and 2002 at theEspacenet
Water: Management Irrigation Sanitation Power Drink
147,01714588654
4,962261
100,000675
2,687205
17,2291,649
Agricultural technologiesFood processingAgricultural irrigationCottonSugarcaneCacaoMangoRiceCoffeeCoconut
3969136
2,304793725
1,1501,945257
6,2024,837125
21,52644436896
29,49313,1701,927
Solar powerPhotovoltaic
1,1871,716
4,1575,870
TransportRoad construction
23,643260
83,2811,918
Emergency assistance 82 215Patent applications published in 2001 and 2002 in member States of the European Patent Organization,the European Patent Office and the World Intellectual Property Organization.
Can IP Assets be Developed?
III. What is IP Strategy?
Public IP Strategy
What is happening here? The task is to identify what governmental and
enterprise policies support such results, and to provide tools to Member States to implement such policies in a proactive way.
SOUTH KOREAN CASE
0
20
40
60
80
1986 1991 2000
% resident
Can IP Assets be Developed?
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Public IP Strategies Today Australia Canada Philippines Japan ASEAN Romania European Union Mexico
Two Complementary Ways
IP
Importation=TOT
Importation=TOT
local creationlocal creation
Can IP Assets be Developed?
Universities, public research centers; SME promotion and incentives; Targeting and protecting new technology; Recognizing local inventions in joint
ventures, FDI, technical assistance projects;
Modification, enhancement of traditional knowledge/folklore.
LOCAL CREATION OF IP ASSETSLOCAL CREATION OF IP ASSETS
Can IP Assets be Developed?
Academia[Universities,
Research Centers]Government
Private Sector[large enterprises,
SMEs,individual inventors,
NGOs]
IV. Who Will Make IP Strategy?
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V. How to Make IP Strategy?
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The IP / Innovation Strategy House
Economic Growth
Technological Development and Solutions
Networks
Laws and Policies
IP Audit and Plan
Clusters
Funding/Valuation
Policy
Commitment
IP Ownership
IP Skills
•
TOT/Licensing
Marketing
Incentives
Education
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Expenditure in R&D as % of GDP(2001)
Total Expenditures (1989-2000 average) in R&D as a % of World GDP: 2.12%Sources: 2002 World Development Indicators (World Bank) and UNESCO Institute for Statistics (March 2005).¤ Data for 2000 # Data for 2001
0
1
2
3
4
5
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Expenditure on R&D as % of GDPhas been increasing in Uganda…
1996 0.51%
1997 0.53%
1998 0.57%
1999 0.65%
2000 0.74%
2001 0.82%
Source: UNESCO Institute for Statistics, March 2005
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...But the source of funds (%) for expenditure on R&D comes mainly from abroad
Funds from abroad 90.3%
Government 6.6%
Higher Education 0.6%
Business Enterprise 2.2%
Private non-profit 0.3%
Source: UNESCO Statistics Institute, March 2005
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Uganda has 14 Universities and at the National Agricultural Research Organization (NARO) there are 9 Research Centers. Still, the average of researchers per million people (2001) is still low
Argentina 709 Singapore 4,053
Brazil 352 Sudan 245
China 584 S.Africa 192
Croatia 1,192 Uganda 25
Finland 7,110 UK 3,100
Japan 5,320 Zambia 55
Source: UNESCO Statistics Institute, March 2005
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The Program Theme One: Introduction Theme Two: Professional Training Theme Three: Policies and
Incentives Theme Four: Funding Theme Five: IP Strategy Game
(small groups) Theme Six: IP Audit Tool
(small groups)
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