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World Patent Information 36 (2014) 22 e 31 Contents lists available at ScienceDirect World Patent Information

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World Patent Information

journal homepage: www.elsevi er.com/locate/worpatin An entrepreneurial, research-based university model focused

An entrepreneurial, research-based university model focused on intellectual property management for economic development in emerging economies: The case of Bogor Agricultural University, Indonesia

Jane G. Payumo a , * , Prema Arasu a , Anas Miftah Fauzi b , Iskandar Zulkarnaen Siregar b , Deni Noviana b

a Washington State University, Pullman, WA, USA b Bogor Agricultural University (Institut Pertanian Bogor, IPB), Bogor, Indonesia

University (Institut Pertanian Bogor, IPB), Bogor, Indonesia abstract Keywords: Higher education Public university

abstract

Keywords:

Higher education Public university Research Entrepreneurialism Intellectual property Innovation Technology commercialization Emerging economies Indonesia

Higher education institutions in emerging regions of the world are increasingly expected (largely by their governments and community) to promote regional economic development and national competitive- ness. This case study on one of the prominent academic universities in Indonesia e Bogor Agricultural University (Institut Pertanian Bogor, IPB) e highlights its successes and lessons learned in managing intellectual property as an entrepreneurial research-based university. This analysis of IPB provides general and speci c insights for university administrators, researchers, and policy makers, especially in emerging economies, on appropriate strategies and measures in promoting synergies between research, entrepreneurialism and technology commercialization. The model provides strategies to maximize university research outputs, knowledge transfer and innovation to empower regional communities, and promote strategic and transformational partnerships, private sector engagement and economic growth opportunities for both the institution and the region.

Published by Elsevier Ltd.

1. Introduction

This paper examines the programs of Bogor Agricultural Uni- versity (Institut Pertanian Bogor, IPB) that support the university s goal of becoming an entrepreneurial, research-intensive university. IPB is the largest agricultural university and an important player in Indonesia s innovation systems for agriculture; it serves as a good case study of how Indonesia s higher education institutions (HEIs) are responding to regional and global challenges and opportunities. Although the management of knowledge and innovation of Asian universities has been featured in many noteworthy publications, Indonesia s case is of particular interest because of its current status as an emerging and booming economy. The added missions imposed on Indonesian universities to support sustainable growth and economic development are of relevance to HEIs in other emerging economies, which are increasingly expected to do the same. Indonesia s IPB has made great strides in restructuring itself

* Corresponding author. International Programs, PO Box 645121, Washington State University, Pullman, WA 99164-5121, USA. E-mail address: jane.payumo@wsu.edu (J.G. Payumo).

0172-2190/$ e see front matter Published by Elsevier Ltd.

based on an entrepreneurial, research intensive model to address national and global challenges and opportunities. This case study draws on primary and secondary data, analysis of published studies, reports, and statistics, selected articles, policy documents and patent databases over the four year time period of 2008 e 2012. Expert opinion was sought from public and private sector intellectual property (IP) practitioners to analyze the current state of IPB s IP and technology management efforts and provide appropriate recommendations for further growth in the research and technology commercialization sectors. Analysis on the four P s, people, policies, processes, and products of IP management was modeled on the study of Payumo et al. [1] . Critiques of the impact of IP and patents to the mission and role of public sector institutions such as HEIs, including the suitability of policy and legislation such as the U.S.1980 Bayh e Dole Act on technology transfer, as relevant to Indonesia, are beyond the scope of this paper.

2. Higher education institutions as economic engines

Universities have frequently been regarded as key institutions in processes of social and intellectual change and development. The

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World Bank report Higher Education in Developing Countries : Peril and Promise [2] has further rationalized the existence of univer- sities: As knowledge becomes more important, so does higher education. The quality of knowledge generated within higher ed- ucation institutions, and its availability to the wider economy, is becoming increasingly critical to national competitiveness . With the current focus on producing globally educated citizens , the most explicit expectations of a university today regardless of social and economic conditions and geographic location are in providing quality education, the training of the future workforce, and the production of high income, skilled labor [3] . Academics and grad- uates produce cutting-edge science, new ideas, knowledge, and university-based innovations that can be the major drivers of economic and social development [4 e7] .

2.1. Research-based to entrepreneurial universities and role of intellectual property

Modern technological developments, globalization and increasing pressure from policy makers and funders have required public universities to emphasize economic development as a fourth pillar to education, research and service. Funding agencies and donors in the U.S. and in other countries are looking for and demanding evidence of tangible outcomes from funded research that can improve quality of life, create business opportunities and promote economic development. Universities are now required to transform themselves from ivory towers of scholarly pursuit to entrepreneurial enterprises of innovation, knowledge transfer, and technology commercialization [8,9] . Advanced universities across North America, Europe, and recently Asia, are increasingly shifting their traditional primary roles in education and scholarly output to becoming entrepre- neurial, research-intensive university models that emphasize interdisciplinary engagement, commercialization of institutional IP, knowledge partnerships, and active contribution to the develop- ment of private enterprises in the local and regional economy [10] . Notable US and European institutions in these efforts include:

Massachusetts Institute of Technology, Stanford University, and UC Berkeley in the U.S.; and University of Cambridge, University of Oxford, and Imperial College, London in the U.K. [11] . In Asia, Sin- gapore s National University of Singapore (NUS), a strong partner of the government s Agency for Science, Technology and Research (A* Star) is known for its synergistic public/private activities that pro- mote the spirit of innovation and generating value from university resources through industry engagement and entrepreneurship [12,13] . The U.S.-based Association of University Technology Man- agers (AUTM) recently reported that efforts of U.S. universities have resulted in increased research expenditures, intellectual property rights (IPR) lings, commercialization agreements, and startups based on university inventions ( initiated as well as still in active business ) [14] . The 1980 US Bayh e Dole Act (now in its 32nd year) and similar legislation are credited as the primary catalysts for increased aca- demic and technological entrepreneurship in U.S. and other coun- tries [15] . These laws have enabled universities to claim title to inventions supported by government funding and for their scien- tists to participate in the commercialization of university in- ventions. Besides national legislation, some of the factors that may have contributed to the high-pro le successes of entrepreneurial, research-intensive universities around the world include: (1) a well-funded high quality research system that encourages re- searchers to do more innovative research and generate technolo- gies and products that can be used by industry; and (2) provision of adequate incentives and support to encourage faculty participation

especially in disclosing, protecting, and commercializing a univer- sity invention [16] . Creating an entrepreneurial, research-based university model likewise requires good IP management and technology transfer programs. The presence of IPR protection, patents for instance, for university off-the-shelf technologies can help facilitate contrac- tual transactions of intangible intellectual assets of universities between the university and technology buyers/users, particularly the private sector, and thereby accelerate technology transfer. The primary bene t of this process whether for commercial or for hu- manitarian uses is the exploitation of research results to bene t society; other signi cant bene ts include generation of funds from licensing fees that can be funneled back into research, IP education, and technology transfer activities at the university, and as addi- tional reward to the researcher. IPR have also become more important to universities in other respects. University researchers, especially those working in modern biotechnology, now must un- derstand the IPR context in which they are conducting their research to make sure they are not infringing the IPR of other re- searchers and institutions [1,17 e19] . Understanding the potential for university technologies has also become critical so that re- searchers can initiate necessary institutional strategies early in the process so as to not lose or compromise future IPR. IPR issues are also increasingly important in establishing research partnership with other institutions, locally and internationally, especially when proprietary research materials (such as germplasm) are involved [17] . Increasingly, inter-institutional agreements and sponsored research contracts have built-in IPR provisions for ownership, ac- cess, and commercialization of future IP; these measures require institutions and researchers to understand the nature of contracts and negotiable provisions, if and when needed. All these de- velopments have required universities to implement institutional policies that address key issues, including ownership of IPR and bene t sharing in a commercialization process; strategies for and management of privately sponsored research, collaborative research, con ict of interest, and establishment of IP and technol- ogy transfer of ces.

2.2. Response and implications for developing countries

Universities in developing countries such as in Asia are also facing the same pressure to be more entrepreneurial and to have an enhanced role in local economic and social development through modern approaches of expanding the commercialization of research. A number of Asian universities (e.g. Zhejiang University, China; Haryana Agricultural University, India; and University of the Philippines, Philippines), have taken the challenge and are now exploring different mechanisms to replicate the widely acclaimed successes of research-intensive, entrepreneurial universities in the US and other advanced countries [1] . These universities have setup and standardized their institutional IP policies and ownership in support of their national technology transfer laws that are mostly patterned after the US Bayh e Dole Act [15] . They have also estab- lished IP and technology transfer of ces to handle patent lings, and have invested in entrepreneurial infrastructure, and services such as business incubation spaces and research parks to support university research and entrepreneurship. Investigating initiatives of other universities to add to this list such as in Indonesia, and how these universities address the opportunities and challenges in becoming an entrepreneurial, research-based university is, worthwhile. This paper focuses on Indonesia s public research university Bogor Agricultural University (Institut Pertanian Bogor, IPB), and its efforts, challenges, opportunities, and learnings in becoming an entrepreneurial, research-based university to contribute to the

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country s goal of promoting innovation and global competitiveness. The data and dynamic model used by IPB are intended to promote better strategies and decisions among universities, especially in Indonesia, with similar social and economic conditions to accel- erate their research enterprises.

3. Overview of Indonesia s economy, agricultural innovation, and IPR landscape

Indonesia, one of the largest economies in Southeast Asia, is an emerging global force along with Brazil, the Russian Federation, India, and China [20] . The archipelago nation, with a population of 242 million, has a signi cant gross domestic product (GDP 846.8 billion US dollars in 2011) due to strong domestic consumption and investments exceeding the World Bank s forecast (6.4 percent in second quarter of 2012 versus prediction of 6.1 percent by The World Bank). Indonesia s economic activity is centered in three major sectors: mining (especially natural gas extraction), manufacturing, and agriculture. According to the Agricultural Outlook 2012 e 2021 report by the Organization for Economic Co- operation and Development (OECD) and the United Nation s Food and Agriculture Organization (FAO), the emerging partnerships between public and private sectors in Indonesia are resulting in higher productivity and improvement in the country s national agricultural innovation system. In 2008, the public sector received approximately 0.08 percent of the nation s GDP in research support [20] . The private sector accounts for one- fth of agricultural R&D, partly because of the large plantation-based structure supporting the agricultural economy. Indonesia is a net importer of IP-intensive goods and has sought to strengthen protection of IPR, a relatively new concept in the country [15] . Over the years, the country has supported several international agreements that promote IP usage. It became a member of the World Intellectual Property Organization (WIPO) in 1979. In 1994, it became a party to the Convention on Biological Diversity (CBD), which recognizes the sovereignty of countries over their genetic resources, which can be subject to IPR. In 1995, Indonesia joined the ASEAN Framework Agreement on Intellectual Property Cooperation. It also joined the World Trade Organization in 1995 and ratied in 1996 the Trade-Related Aspects of Intellec- tual Property Rights (TRIPS) which sets IP standards. In 2006, it rati ed the international seed treaty, the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA), and now implements the standard material transfer agreement (SMTA) for the transfer and exchange of biological and genetic resources. Indonesia has promulgated several national legislation initia- tives parallel to these international treaties and agreements ( Table 1 presents the summary of national IP legislation and membership of Indonesia in international IPR agreements) and updated its IPR laws on patent, utility model, industrial design, copyright and related rights, and trademark. Indonesia currently has seven laws [21] concerning IPR, with patents, trademarks, copyright, industrial design, and plant variety protection (PVP) as the type of IPR protection most relevant to agriculture. A pertinent provision of Indonesia s patent legislation relates to the patent- ability of life forms, which speci cally excludes the patenting of all living plant varieties, animal breeds and essentially biological processes for the production of plants and animals but allows patenting of microorganisms, non-biological and microbiological processes. In response to TRIPS, the country also enacted the 2000 Plant Variety Protection Law (Law No. 29), patterned after the In- ternational Union for the Protection of New Varieties of Plants (UPOV), which provides sui generis ( of its own kind ) system pro- tection for plants and gives rights to breeders. Indonesia is not a member of the UPOV. In 2007, Government Regulation No. 51 was

Table 1 Basis of Indonesia s IPR system [21] .

National laws

- Law No. 19 of July 29, 2002 on Copyright (2002)

- Law No. 14 of August 1, 2001 regarding Patents (2001)

- Law No. 15 of August 1, 2001, regarding Marks (2001)

- Law No. 30 of December 20, 2000 regarding Trade Secret (2000)

- Law No. 31 of December 20, 2000 regarding Industrial Designs (2000)

- Law No. 32 of December 20, 2000 regarding Layout Designs of Integrated

Circuits (2000)

- Laws of Republic of Indonesia No. 29 of 2000 on Plant Variety Protection

(2000)

- Government Regulation (PP) 20/2005 on Transfer of Technology of Intel- lectual Property and Result of R&D by R&D Institutes and Universities

- PP 23/2005 on Financial Management of Public Service Agency (Badan Layanan Umum, BLU).

International laws/treaties

- 1950 Paris Convention on Industrial Property

- 1979 WIPO Convention

- 1994 Convention on Biological Diversity

- 1997 Berne Convention on Literary and Artistic Works

- 1995 Agreement on Trade-Related Aspects of Intellectual Property

- 1997 Patent Cooperation Treaty

issued to prescribe the guidelines and regulatory framework for Geographical Indications, to provide protection for place or origin where a good is produced. Indonesia is making efforts to be removed from the U.S. Priority Watch List [22] and combat IPR vi- olations and IPR infringements to secure its trading partners. To help the country s research institutions and universities bene t from IPR, Indonesia s 2002 Law 18, National Systems for Research, Development, and Application of Technology mandated the establishment of formal units for IP management with over- sight of monetary and other bene ts of IP commercialization [23,24] . Recently, the government passed two other laws that will further help HEIs in managing university IP: Government Regula- tion (PP) 20/2005 on Transfer of Technology of Intellectual Prop- erty and Result of R&D by R&D Institutes and Universities and PP 23/2005 on Financial Management of Public Service Agency (Badan Layanan Umum, BLU) . The rst law enabled universities to be the owners of the IP/IPR and provided more comprehensive roles to of ces of intellectual property and technology transfer in facilitating protection for university IP resulting from research and developing commercial partnerships with industries; the second law provided guidelines on the compensation for IP and nancial mechanisms for universities and public research institutions to bene t from the process. The World Intellectual Property Guide- lines on Developing IP Policy for Universities and R&D Organiza- tions and the U.S. 1980 Bayh e Dole Act (1980 University and Small Business Patent Procedures Act) are believed to have inspired the establishment of these laws in Indonesia. Patent applications, granted patents, and trademark applica- tions for Indonesia have steadily grown through the years (1997 e 2011) with the majority coming from nonresident applicants [25] . The Derwent World Patent Index 2013 released in September that year, however, reported that nearly 55% of the country s total pat- ents in 2012 were awarded to Indonesia s own citizens rather than foreigners applying for patents locally [26] .

4. Case study: Bogor Agricultural University - at the heart of Indonesia s agricultural R&D system for nation-building

Founded in 1963, Bogor Agricultural University (IPB) located in Bogor (about 60 km from the capital city, Jakarta), is the pioneer institution for agricultural higher education in Indonesia and a major educational and scienti c center in Bogor. The university ful lls its Tri Dharma Perguruan Tinggi (Three Pillars of National

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Higher Education) mission in education, research, and community empowerment; and has played a crucial role in the development of the country s agriculture, the backbone of Indonesia s economy which contributes roughly 15% to the nation s GDP. IPB has pro- vided educational opportunities for Indonesians through graduates with specialist knowledge and skills and providing refresher agri- cultural education programs for lecturers from the nation s uni- versities and others, and local employment opportunities. The

university has also advised on national agricultural policy and plays an important role in the development of science and technology (S&T) policies to support economic growth. IPB is now growing into

a comprehensive, innovative institution for higher education in natural resources-based development making it an important player in nation building and helping increase Indonesia s competitiveness [27] .

4.1. Academic autonomy and pursuit of relevance: structuring a paradigm shift at IPB

With its autonomous status approved in 2000, through Gov- ernment Regulation (PP No. 154/2000) and full implementation in 2005, IPB formally changed to become a public legal entity uni- versity and adopted the market or private model approach in higher education management. The use of the market model en- ables universities to manage assets for academic excellence, entrepreneurial purposes and other chosen purposes, and improve the university s relevance and ability to respond to market and social needs [28] . This autonomy paved the way for improved institutional governance, including the creation of a Board of Trustees and an academic senate, the use of auditors, the stream- lining of the university s organization, including reforms, and strategic portfolio analyses by all university units. IPB has reorganized its organizational structure and its aca- demic and administrative units in education, research, and com- munity services into cross-functional units: 9 faculties/colleges (previously 7 before autonomy status), 36 departments, and 30 research centers. The 9 faculties provide undergraduate programs, while the graduate school, the rst in Indonesia, manage the uni- versity s graduate and postgraduate programs. The 9 faculties include: Agriculture, Veterinary Medicine, Marine Sciences and Fisheries, Animal Husbandry, Forestry, Agricultural Technology, Mathematics and Natural Sciences, Economics and Management, and Human Ecology. Its faculty academics currently total more than 1200 (accounting for almost one-third of Indonesia s researchers in higher education [29] ) with supporting staff of more than 1600. More than 60% of IPB s faculty hold PhD degree and were trained in advanced institutions in the U.S., Europe, Japan, and Australia. In 2012, these faculties served a student population of almost 25,000 with 21% graduate students participating in some level of univer- sity research (1201 PhD and 4067 Masters). The status change also prompted a new vision for IPB to increase its research performance and community services and to be a world class research-based university with core competence in tropical agriculture and biosciences, characterized with entrepre- neur values . For IPB, an entrepreneurial, research-based university signi ed a university with good quality academic staff representing different disciplines, good lab equipment, facilities and ventures, large area for farm studies, a number of research centers, well recognized community service, close linkage with the government and private sector, international linkages and cooperation with other institutions of higher education locally and globally, and many potential activities for revenue generation [27] . Institutional capacity building to support different research disciplines is also a priority with increasing research expenditures

in the last three years (2010: Rp 8 billion; 2011: Rp 100 billion; and

2012: Rp 107 billion) from the Indonesian government [29] and various sources to support research and improvements to facilities and infrastructure (laboratories, information systems, and experi- mental research farms). The research agenda at IPB has also expanded in renewable-resources, bio- sciences, health, indigenous knowledge and technology, food quality control and food safety, genetic resources, genetic engineering and breeding, conservation and the environment, social welfare, economic affairs and culture, biophysics, mechanics and equipment, management information and technology. IPB s research thrusts align well with Indonesia s medium-term national development goals for 2015 e 2019 [30] . These investments have resulted to improvement of IPB s IP port- folio in many areas including agriculture, biotechnology, clean technologies, engineering, instrumentation, and food and health. Institutional mechanisms have also been placed to appropriately manage research results, whether shared in the public domain or protected, marketed, or licensed to third parties for commercial purposes, or technology entrepreneurship. IPB has collaborations with about 200 institutions from 32 countries focused on research partnerships and student internships in areas such as organic agriculture farming, tropical rain forest, food safety, quality, and nutrition, plant biotechnology, tropical fruits and vegetables, integrated pest management, engineering application in tropical agriculture, biofuels, and primatology. Countries 32.

4.2. Managing innovation, partnerships, and technology entrepreneurship e challenges and opportunities for expansion

Even before IPB s autonomous status in 2000, the University had already established the Of ce of IPR and Publications, OIP, to manage technologies and innovations coming out of university research as done at its peer Indonesian institutions such as the University of Indonesia, Bandung Institute of Technology, and Gadjah Mada University [1] . Established in 1999, OIP is under the Directorate of Research and Strategic Issue Studies (DRSIS), the lead unit in formulating IPB s research agenda. OIP continues to coor- dinate the administration of university technologies for deploy- ment in the public domain; dissemination to the scienti c community is done via non-commercial mechanisms including teaching, seminars, trainings, publications, and community engagement. OIP also coordinates management of university technology that will be protected, and manages a database of IPB s research, IPR, and publications. In the early years at IPB, OIP did not have the legal mandate to manage the monetary bene ts resulting from technology transfer activities. This resulted in the unit pursuing only IPR protection, accumulating patents and signing of licensing agreements but with no monetary bene ts coming back to IPB, the unit, and the faculty. OIP also faced additional challenges including: (1) limited number of IP management staff with requisite technology transfer and marketing skills and professional knowledge. Limited manpower resulted in delayed responses and coordination with internal units (research centers, business units, and administration) and external partners; (2) limited competency and knowledge among re- searchers in the importance of protecting and commercializing research results. The lack of institutional policy on IP ownership and bene t-sharing made faculty and staff less engaged on the technology transfer process; and (3) research results that were at the laboratory level as new, untested ndings with no prototype information; these generally did not address industry needs and represented high investment risk for technology buyers which made it dif cult for OIP to market university IP. IPB s technology transfer efforts were also affected by the external environment including lack of con dence from businesses and other

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stakeholders in Indonesia, limited venture capital, weak networks between investors, industries, intermediary institutions, as well as poor infrastructure nancing. These challenges not unique to IPB and are also faced by institutions in other countries as noted in earlier studies done by various authors, including Higgins [31] and Aiman [32] . With the designation of autonomy status and the enactment of national laws related to IP and technology transfer for HEIs, IPB has implemented many changes to help address these challenges and improve the university s performance in managing university IP and innovation: (see Fig. 1 for IPB s timeline of IP management activities).

4.2.1. IPB s IP guidelines In 2004, IPB institutionalized two guidelines to further manage intellectual property and IPR generated by its faculty and staff:

Rector Decree 136/K.13/PG/2004: Intellectual Property Rights Guideline in Three Pillars of Higher Education Collaboration Ac- tivities in Bogor Agricultural University; and Rector Decree 209/ K.13/PG/2004: Intellectual Property and Intellectual Property Rights Management Guideline in Bogor Agricultural University [33,34] . The former provides guidelines on how to regulate intel- lectual property rights of collaborative undertakings by IPB and other institutions (public or private, local and abroad); the latter de nes guidelines to regulate IP/IPR implementation, establishing university ownership, and assessing factors that will affect pro- tection, commercialization and bene t-sharing.

4.2.1.1. Ownership. IPB s IP policy emphasizes university owner- ship of IP generated by its employees and students receiving full funding by IPB and using university resources. It also asserts ownership of IP developed by employees and students funded, partially or fully, by outside agencies, unless stipulated in a collaborative agreement. IPB employees and students (as the in- ventors and creators of the IP), are thus obliged to disclose any IP and inventions that may have potential for commercial utilization, in which IPB has an interest, whether done through collaborative, sponsored, consulting agreement, without any sponsor, or funding from IPB. Employees are also obliged to assist the university in

obtaining patents, registering copyrights, and signing appropriate legal assignment documents.

4.2.1.2. Protection, commercialization, and bene t-sharing. The policy also emphasizes the importance of managing public disclo- sures or publications to ensure that the university can comply with the requirements of IPR protection and not compromise protection and commercialization activities. IPB employees are obliged to notify OIP of potential publications related to the IP or invention. Disclosure of inventions to the public is a critical element in determining whether an invention is patentable or not. Under Indonesian patent law, newness, non-obviousness, and industrial application are the three requirements for an invention to be patentable. In addition, patents and other form of IPR can be used by IPB faculty and staff as incentives including career promotion. To support the above steps, IPB has institutionalized a process to determine when a researcher s nding will be protected and licensed or commercialized (see Fig. 2 ). The process includes an assessment of the business feasibility of any invention before incurring the expense of patenting. All IP not passing the rst assessment of business feasibility is relegated to the inventor for further development or self-commercialization. On the other hand, ndings with market potential are rapidly promoted with the pri- vate sector. When a commercial partner is identi ed, the IP is sold, licensed, and/or used to setup a new venture, joint venture or other entrepreneurial arrangement. IPB s employees and students involved in the invention are entitled to share in revenues gener- ated by successful commercialization of the IP. IPB s revenue sharing plan regardless of estimated value is xed at 40% for the inventor; 40% for the university; and 20% for the department or research unit. With the increasing participation of IPB s graduate students in the overall framework of IPB s R&D, a separate Rector Decree 180/ K13/PG/2005 was issued in 2005 to provide for policies and pro- cedures for research done by students. This decree, thought to be the rst of its kind reported for a developing country, expanded IPB s IP policy to graduate students working with IPB faculty. It highlights the need for research notebooks and record keeping, ownership of IP using university resources, acknowledgment of a

of IP using university resources, acknowledgment of a Fig. 1. Timeline of activities, IPB ’ s

Fig. 1. Timeline of activities, IPB s IP management and technology commercialization efforts.

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et al. / World Patent Information 36 (2014) 22 e 31 27 Fig. 2. Standard operating

Fig. 2. Standard operating procedures of IPR commercialization improvement in IPB.

student s rights to IP if they contributed to its development, and their entitlement to commercialization bene ts.

4.2.2. Capacity building efforts To facilitate organizational restructuring, IPB from 2006 to 2007 concentrated in training its faculty, staff and students on IPB s new IP policy and framework. Several in-house training programs were conducted on the basics of IPR, prior art search, patent drafting, and conducting IP audits. With increasing focus on commercialization, OIP in 2008 began expanding its IP management and technology transfer program on recruiting additional personnel to prepare patent applications and market IPB s technologies for commer- cialization. OIP s current staf ng includes an in-house patent law- yer, and ve full time staff including a deputy director, two coordinators (administration of IPR and publications; IPR and database); and two technology marketing personnel supporting IPB s IP management and technology transfer activities. OIP staff work closely with faculty, monitor publication timelines, and develop strategies for ling patents, studying the invention s value versus cost, evaluating market potential and identifying licensing partners, domestic and international. An internal survey conducted in March 2013 revealed that IPB faculty members nd OIP to be very effective in helping faculty members with intellectual prop- erty, the process of IP ownership, technology transfer, patenting, and licensing. Various seminars and workshops were also done encouraging faculty to identify and disclose inventions that are developed through university funds for IPR protection, licensing, and tech- nology commercialization. Since 2009 e 2010, IPB utilized IPB s technology and agribusiness incubators to encourage technology entrepreneurship among faculty, students, and alumni, establish and run university spinoffs for local business development. OIP has organized educational informational, business and technology events and expositions to market its technologies and encourage more faculty, staff, and students to be entrepreneurs. All above efforts resulted in IPB s faculty members and re- searchers receiving the Extraordinary Intellectual Property Award for technology, plant varieties, and science categories from the Government of Indonesia; of the 21 recipients for 2009, 9 were

classi ed as researchers, 5 as lecturers, and 7 as students and alumni. Patent and trademark applications, with many already awarded to the university, also showed growth increasing 12.92% per year for the period 2008 e 2011 (see Fig. 3 ). The university IPR have largely been in the agricultural sector and have been licensed to several private companies or are being commercialized by uni- versity spin-off companies (See Table 2 for examples). In 2012, IPB also received a recognition award from the Vice President of the Republic of Indonesia commending IPB as the university with the most patent applications and granted patents in Indonesia for ve consecutive years. These numbers contributed signi cantly to the increase of Indonesia s own citizens applying for patents locally, which in 2012 almost equaled foreign applications [26] . In 2012, IPB s licensing and commercialization projects exceeded 179, rep- resenting a ve-fold increase since 2008.

4.2.3. Networks and strategic partners From 2010 to 2011, IPB focused on establishing strategic part- nerships with intermediary institutions (e.g. National Innovation Committee, Business Innovation Center-BIC, Science Techno Park- STP, Puspiptek Serpong, and Business Technology Center-BTC). OIP also works closely with IPB s Directorate of Business and Partnership (DBP) under the Vice Rector for Business and Communication, and the Research Center for Entrepreneurship and Empowerment (RCEE) under the Institute of Research and Com- munity Empowerment. DBP is responsible for drafting and devel- oping resource management activities, and promoting science and technology related projects aligned with IPB s business develop- ment and partnerships with government, private sector, and other groups. DBP, on behalf of the University, also formalizes the licensing agreements with a private company (the licensee) while OIP implements and monitors the agreement, including distribu- tion of royalty bene ts to the relevant department/research unit involved and the inventor. RCEE complements these activities by working with micro, small and medium agricultural enterprises and managing the university s business incubators e.g. Incubators Agribusiness and Agro-Industry, which collaboratively provide the core infrastructure and integrated support for technology commercialization at IPB (typically for three years). This tripartite

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Payumo et al. / World Patent Information 36 (2014) 22 e 31 Fig. 3. IPB ’

Fig. 3. IPB s IPR portfolio. (2008 e2011).

approach ensures that resources are ef ciently used, R&D is coor- dinated and aligned with university priorities and the university is on-course to achieve its goal of being a research- and entrepreneurial-based institution. IPB also works very closely with Indonesia s Directorate General of Intellectual Property Rights (Direktorat Jenderal Hak Kekayaan Intelectual), which administers the Indonesia s IP system and spe- ci cally in talks with the Patent Of ce (Direktorat Jenderal Hak Kekayaan Intelektual) to understand the process of securing patent protection for university technologies abroad and possibly expanding market reach of the university. IPB also continues to strengthen its relationships with the private sector not only as a partner in delivering technologies to market but also as a partner in building the necessary infrastructure to further promote research and agricultural development (e.g. the oil palm teaching farm with Cargill, located in the Jonggol sub-district of Bogor). Partnerships with foreign institutions (e.g. Washington State University) and international donors (e.g. United States Agency for International Development) are deliberately pursued to support IPB s interna- tionalization agenda, strengthen the university s network, bench- mark its practices, and enhance its resources for institutional and human capacity building in managing university technologies.

Table 2 Example of IPB s start-ups/spin-offs. 2007 e2012.

5. Analysis, conclusion, and recommendations

This paper presents the history, strategies and lessons learned from IPB in its goal of becoming an entrepreneurial, research-based university e an emerging model for higher-education institutions in emerging economies to better interface core missions in edu- cation and research with societal bene ts. Speci cally, this case study focused on how IPB exploits intellectual property and crea- tive ideas, creates new learning by partnership with internal and external stakeholders, and how the university contributes to local economic and social development. IPB s case further demonstrates that pursuing the goal of becoming an entrepreneurial, research- based university requires a national legal framework, research budget, and backed with the right mix of: Policies, People, Pro- cesses, and Products. IPB has made good progress in supporting academic research and management of university technologies, creating a professional model for emulation by other institutions.

5.1. Policies

IPB s medium and long-term development plan supports in- vestment in research to enable the university to reach its vision of

Invention

Patent number

Institution

Remarks

Mechanism of technology transfer

Machine for dividing of wood construction

ID P 0029402

Departement of Forestry Product, Faculty of Forestry, IPB

Cooperation with Private Company CV. Cakra Mulya

Business cooperation

Instant noodle from corn

ID P 0028637, ID P 0032895,

Southeast Asia Food and Agriculture Science and Technology Center, IPB

e

Start up business

P00201000633,

 

P00201000634

Production of cat sh our

P00201000605

Department of Family and Consumer Sciences, Faculty of Human Ecology, IPB Research Center for Tropical Fruit Studies, IPB Department of Soil Science and Land Resources, Faculty of Agriculture & Center for Environmental Research, IPB Faculty of Veterinary Medicine, IPB

Cooperation with

Start up business

 

Inotek Foundation

Seed (papaya, melon, chilli,

Plant variety

 

Spin off

registration

 

mangosteen) Biofertilizer (Probio)

Trade secret

Will be applied at national level by Innovation National Committee Joint Venture IPB Shigeta Enterprise

Spin off

Avian in uenza vaccine (Reverse Genetic Technology) Fry counter (Seed Fish Counters with Speed and High Accuracy) Extracts dignity barito (Ficus deltoidea) Antitumor Ef cacious

Patent by PT Shigeta

Business cooperation

P00200300627

Faculty of Marine Sciences and Fisheries, IPB

Spin off

P00200100385

Biopharmaca Research Center, IPB

Start up business

J.G. Payumo et al. / World Patent Information 36 (2014) 22e31

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becoming a research-based, entrepreneurial university. IPB has also set the institutional framework to allow technology commerciali- zation of research results and link its integrated missions in educa- tion, research, and economic and societal bene ts. Communicated both inside and outside the institution, IPB s policy provides ar- rangements for IP ownership, sharing any returns from commer- cialization of IP, recognizes the range of IP activities of the university, and displays a balance of engaging in IP work for reputational bene t, for positive social and economic impact, and for scal returns. Recently, the university transitioned to a more student- friendly policy which re ects the university s commitment to equitable policies and its recognition that graduate students have a voice and are IPB s partners in the research enterprise. Such recognition provides students with favorable impressions of the university, encourages entrepreneurialism, and provides public- private sector experiences and connections when they join the workforce.

5.2. People

IPB has demonstrated in-house capability of managing univer- sity IP from handling and reviewing invention disclosures, mar- keting, executing licensing agreements with commercial partners, and forming spin-off companies. The overall IPB team is also growing. The team managing the university technologies has staff with full-time appointments and interdisciplinary expertise including research managers and entrepreneurs. Full-time ap- pointments enhance institutional and individual commitment and staff productivity resulting in sustainability and credibility within the institution and with external stakeholders [35] . Besides having full-time appointments, IPB s technology transfer unit is manned with experts from different technical disciplines thereby combining a mix of technical knowledge with economic, management- oriented, and legal knowledge to ensure smooth transition from laboratory research products to the eld or to retail shelves. IPB s senior administration, relevant of ces, faculty, and staff remain committed and engaged with the growth and dynamics of the IP property arena.

5.3. Processes

University inventions meeting the criteria of patentability should not be encouraged without suf cient evaluation. IPB has initiated a protocol to evaluate the marketability and commercial value of any invention before the university invests in resources to le and execute patents. Mandating good record keeping and laboratory notebooks among its faculty and students further support IPB s IP program and is being advocated throughout the institution.

5.4. Products

The university is uncovering a niche in knowledge creation based on indigenous and local innovations and are now bene ting Bogor and its neighboring communities. Sales of IPB s trademark- registered natural-based, herbal and fast food products (e.g. noo- dles) are increasing. Local consumers are increasingly patronizing university stores and in many instances, local demand is exceeding supply. IPB is slowly moving down the learning curve and realizing that supporting academic entrepreneurship and innovation can be challenging at rst but rewarding. IPB s early successes are in- dications of future returns, and the university may be well on the path to harvesting the advantages of managing university intel- lectual property toward becoming a model for emulation. IPB s

efforts are still relatively recent and new with several areas for improvement and below are some suggested areas that the uni- versity can look into.

5.5. Avoiding the patent number trap

Patenting of university inventions has been the indicator of the involvement of universities in technology commercialization ac- tivities, beyond the traditional role of research and teaching. The number of patent applications and granted patents for IPB con- tinues to increase through the years; now IPB is considering seeking international protection in foreign markets. The increase in patent numbers, whether for domestic or international patents, however, does not necessarily indicate that IPB s innovation out- puts are contributing to economic growth [36] . Patenting university technologies is not an end in itself; university patents need li- censees to complete the commercialization process. IPB needs to be careful on this patent numbers trap and make sure that OIP is proactively nding strategic ways to market and commercialize them. Publishing patents is one of the ways of IPB faculty to gain credits for job promotion and increased salary. The university needs to consider providing more credits to faculty if the technology is commercialized; this way, faculty is encouraged not only to publish patents but to develop technologies with commercial value and them actively participating in the technology commercialization process.

5.6. Expansion of technology commercialization and

entrepreneurship programs

The university needs to promote its success stories on food and herbal products and build on this platform to commercialize other university technologies such as those produced by biotechnologies and veterinary health science, the university s two big areas of research competence. Local private enterprises are emerging at a fast pace in the country and OIP will have to strengthen industry research connections and integrate with this group to help commercialize university research products. It should be noted, too, that IP management and technology commercialization should not just be narrowly based on institutional licensing revenues but should also be focused on resulting impacts on the economy, in- dustry e university relations, and formation of new start up com- panies. Student entrepreneurship should also be monitored and documented whether student-formed companies have resulted from university technologies, and determine whether these com- panies are contributing to IPB s entrepreneurial community and Bogor s local development. IPB can maximize existing international research partnerships with its global university partners such as land-grant U.S. institutions like Washington State University, which has wide experience in managing university IP and technology commercialization in US and in larger markets, and identify best practices in IP protection, marketing, technology transfer and entrepreneurship.

5.7. Continuing investments

Promoting an integrated entrepreneurial, research-based climate within a public university is a long-term commitment. US universities that are successful in this goal took a number of years to institutionalize these processes into a suf cient and sustainable level. IPB, hence, needs to continue investing in pursuing more quality research that would result to: technologies and inventions, research publications, industry e university relations, and new businesses. A sound IP management and technology commerciali- zation program for an entrepreneurial university will also depend

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J.G. Payumo et al. / World Patent Information 36 (2014) 22 e31

on continuing support from the management, faculty, staff, and students. IPB s Of ce of Intellectual Property need to constantly budget activities for IP education and dissemination of IPB s IP management programs at all ranks within the institution so they understand fully the bene ts and tradeoffs of these processes needed to reach university s vision of becoming a research-based, entrepreneurial university. The current knowledge level of IP and technology commercialization awareness among faculty, staff, and students should be also assessed regularly so as to identify gaps and training needs on up-to-date IP regime developments such as material exchange and IP instruments (especially on con icts of interest).

5.8. IP policy not set in stone

IP policies and programs will continue to be a key factor in establishing research relationships especially for international collaboration [37] . IPB s IPR policy is important in helping manage the university s intellectual capital and partnerships and will help de ne its position in the international order. IPB should, however, take note that IP policies may need some exibility to address current needs of the institution and adjust to national and inter- national developments. This will require continuing review of its policies and education of faculty, staff, students, and even domestic and international collaborators. Overall, the strategic decisions, success stories, lessons learned, and opportunities for improvement for Bogor Agricultural Univer- sity are a useful reference for other institutions intent on creating similar growth trajectories in university research wedded to entrepreneurship and technology commercialization. The approach is also an effective mechanism for keeping higher education in- stitutions relevant to current day national priorities, ensuring that basic research is translated for effective use and public bene t, providing the potential for income, incentivizing staff and their level of productivity, and furthering research output and outreach opportunities. Research universities like IPB and other universities need to proactively develop mechanisms to facilitate the ow of knowledge and technologies generated by research and supported by public funds for societal bene t. The time has come for these research universities to embrace the mandate for entrepreneurial dimensions to leverage academic research, intellectual property and innovation, and make entrepreneurship an important fabric of the institution.

References

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J.G. Payumo et al. / World Patent Information 36 (2014) 22 e 31 31 Dr.
J.G. Payumo et al. / World Patent Information 36 (2014) 22 e 31 31 Dr.

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Dr. Jane G. Payumo is a research associate at Washington State Universitys (WSU) Of ce of International Programs and helps WSU increase, monitor, and measure outcome of the university s international collaborations. She has technical, managerial, and policy expertise, in the area of plant biotechnology, grant development, intellectual property rights (IPR) management, and international research. She has handled patent, trademark, and copy- right cases while she was an IPR specialist at Philippine Rice Research Institute, and licensing assistant at WSUs Of ce of Intellectual Property Administration from 2004 to 2012. She obtained her interdisciplinary PhD from Wash- ington State University.

interdisciplinary PhD from Wash- ington State University. Dr. Iskandar Z Siregar is a professor at IPB

Dr. Iskandar Z Siregar is a professor at IPB s Department of Silviculture, Faculty of Forestry. Currently, he serves also as Director for IPB s Research and Innovation, which helps IPB manages research agenda, publication, intellectual property rights and innovation. His research interests are population genetics of forest trees, molecular genetics of forest Plants, conservation and sustainable management of tropical for- est genetic resources, forest tree improvement, forest adaptation and genetics in silviculture. He received his PhD from University of Göttingen, Germany.

Dr. Prema Arasu is CEO and Vice Provost at Kansas State University-Olathe campus in the greater Kansas City area. She previously served at Washington State University as Vice Provost of International Programs and at North Car- olina State University for 15 years where she held various positions including Professor in the Department of Molec- ular Biomedical Sciences, Director for Global Health Initia- tives, Director for Comparative Biomedical Sciences graduate program, and Associate Vice-Provost for Interna- tional Academics and was a founding member of the Trian- gle Global Health Consortium. Arasu was also AAAS Congressional Science & Technology Policy Fellow with the U.S. Senate Subcommittee for Health from 2002 to

2003.

the U.S. Senate Subcommittee for Health from 2002 to 2003. Dr. Deni Noviana is deputy director

Dr. Deni Noviana is deputy director of IPB s Directorate of Research and Innovation and associate professor at IPB s Faculty of Veterinary Medicine. He helps manage the IPB s intellectual property rights and help run IPB s technology transfer of ce. He was joined several national and inter- national IPR and technology transfer management training course. He received his PhD from the United Graduate School of Veterinary Science, Yamaguchi University, Japan.

Prof. Dr. Anas Miftah Fauzi is the Vice Rector for Research and Collaboration of Bogor Agricultural University (IPB) since 2008. He oversees university partnerships in educa- tion and research with higher education and research in- stitutions in Indonesia and across the globe. He served as Dean at Faculty of Agricultural Engineering and Technology (2003 e2007) and was a lecturer in this faculty since 1985. He received his PhD from Kent University, U.K.