Slide1 : WIPO-IFIA INTERNATIONAL SYMPOSIUM ON THE COMMERCIALIZATION OF INVENTIONS IN THE GLOBAL MARKET
organized by the World Intellectual Property Organization (WIPO)
and the International Federation of Inventors’ Associations (IFIA)
in cooperation with the Korean Intellectual Property Office (KIPO)
and the Korea Invention Promotion Association (KIPA)
Seoul, December 4 to 7, 2002
PARTNERING WITH VENTURE CAPITALISTS TO ACHIEVE GROWTH AND DEVELOPMENT
Document prepared by Dr. Finarya Legoh, Assistant to the Deputy Minister for
Science and Technology Diffusion Mechanism, Ministry for Research and Technology of
the Republic of Indonesia, Jakarta
Slide2 : S&T FACTS IN INDONESIA (1/3) OECD: Globalization - Links between investment, productivity and growth: greater investment can increase TPF (total productivity factor)- R&D and S&T development play a crucial role in economic growth
Government/regional governments should create motivation and provide stimulation and facilitation, as well as build a conducive environment to the development of a S&T system; so that the government must define direction, main priorities, focuses and policies, which is stated in THE NATIONAL STRATEGIC POLICY OF S&T DEVELOPMENT
Priorities and policies must include strengthening the development of basic science, strategic S&T, capacity-building of R&D institutions, strengthening the development of technology-based industry, and strengthening the capability of technology audit
Slide3 : S&T FACTS IN INDONESIA (2/3) Function of Ministry for Research and Technology:
define policies, direction, main priorities, focuses for national development of S&T
Coordinating RDE institutions, including set annual budget through S&T sector within national budget – 0,54 % from total
Accelerate linkages between R&D sector and industry – such as: give incentives for R&D with different targets accordingly
Total IPR risen significantly:
Year Local Abroad
1998 202 1785
1999 320 2808
2000 369 3772
2001 408
Strength of Regional Innovation (3/3) : Strength of Regional Innovation (3/3) Medan Padang Manado Bandung Jogjakarta Surabaya Semarang Mataram Makassar Above
Average Around
Average Below
Average Samarinda Source : “PERISKOP PROJECT” 2001 - MRT
POLICY HIERARCHY FOR NATIONAL DEVELOPMENT OF S&T : POLICY HIERARCHY FOR NATIONAL DEVELOPMENT OF S&T GBHN 1999 PROPENAS S&T Nat Syst Law
No 18 / 2002
National Research Agenda (Regulations for S&T doers interaction)
(Milestones, focus industry)
Long term National
Guidelines Short Term
Guidelines
Slide6 : KEY PERFORMANCE INDICATORS
- NATIONAL STRATEGIC POLICY OF
S&T DEVELOPMENT -
Increasing S&T products within national and international levels, including: prototype, intellectual properties, and national standards
Improving the R&D products/results (including innovations) which are applicable and utilized by the community within national and international levels through increasing and strengthening “techno-industrial cluster and techno-preneurship”
Increasing cooperation among R&D institutions and business sectors
Improving the quality and quantity of S&T resources
S&T SYSTEM INSTITUTIONS : S&T SYSTEM INSTITUTIONS R&D Inst Private Sectors Environmental Condition Standardization Inst Professional Organization Consumer Inst Public Institutions Policy Making Inst Supervision Inst Universities IPR Inst Consultant Inst
R&D ORIENTATION & MANAGEMENT DEVELOPMENT FLOW : R&D ORIENTATION & MANAGEMENT DEVELOPMENT FLOW Research Capacity Focus on research activities in various scientific fields (uncertainty, risk taking) Innovation Capacity Focus on clusters of technologies and scientific competencies/ino. impr Tech Marketing Active search for applications of developed innovations, comm. gap Tech Licensing Gain additional value through patents and licensing Tech Partnering Establish high-value collaborations with business enterprises Venturing Leverage intellectual property through spin-off, equity positions, etc.
Slide9 : Identify opportunities
·Develop prospective clusters of technology roadmap
·Building up network of competency resources
INCENTIVE PROGRAM FOR SUPPORTING CAPACITY OF TECHNO-CLUSTER AND TECHNO-PRENEURSHIP : INCENTIVE PROGRAM FOR SUPPORTING CAPACITY OF TECHNO-CLUSTER AND TECHNO-PRENEURSHIP NAT. STRATEGIC COMPETITIVE RESEARCH (RUSNAS) -2000
COOPERATION COMPETITIVE RESEARCH (RUK) -1995
TECHNOLOGY INSURANCE (ASTEKNO) -2001
IPR STRENGTHENING INCENTIVES:
- PATENTS, INDUSTRIAL DESIGNS -2000
- IPR CENTRE -2000
- TRADITIONAL KNOWLEDGE PROTECTION -2002
TECHNOLOGY AND MANAGEMENT STRENGTHENING
(SIPTEKMAN) -2001
S&T EMPOWERMENT IN INCREASING REGIONAL
INVESTMENTS (PRIDA) -2003
BUSINESS FORUM -2003
TECHNOLOGY INFORMATION KIOSK (WARINTEK) -2001
START-UP CAPITAL -2003
OBJECTIVES (1/4) : To bridge and accelerate the gap between industry (technology users) and R&D (technology suppliers)
To increase capability and competitiveness of industry and investment on R&D activities
To create atmosphere of productivity, value added, creation and innovation
To increase utilization of local technology by industry
To minimize risks in R&D investments OBJECTIVES (1/4)
COLLABORATIVE MODEL (2/4) : R&D institution (one/more) should have an agreement with the industry partner (one industry/more) to implement the program actively
Cost sharing between R&D institutions (funded by Government through MRT) and industry partners
Industry partners are responsible to continue the activities after finishing the RUK program (within 2 years), and to develop/apply technologies produced by RUK
Royalty produced through IPR within RUK activities should be shared appropriately including the amount of funding
Outcomes of post-RUK activities are evaluated by MRT
COLLABORATIVE MODEL (2/4)
Example 1: BOGIE FOR TRAIN COLLABORATION OF PRIVATE COMPANIES – UNIVERSITY – GOV., R&D INSTITUTIONS (3/4) : Example 1: BOGIE FOR TRAIN COLLABORATION OF PRIVATE COMPANIES – UNIVERSITY – GOV., R&D INSTITUTIONS (3/4)
Example 2: DEVELOPMENT OF BIOFERTILIZER INDUSTRY (4/4) : Biofertilizer EMAS® Collaboration among R&D Inst. (Bogor Plantation), Semi-private R&D Inst., (Biotecnology Institution) and Semi-Gov. Owned company (PT Nusantara Plantation III, V, VII, VIII)
Competitiveness:
reduce 50% of artificial fertilizer usage
20-40% < cost of fertilizers
environment friendly
can be used in all crops
has been patented: No. ID 0 000 206 S.
has been licensed by PT Bionusa and a
biofertilizer factory has been constructed and
operated in Purwakarta (West Java) – its capacity
5,000 tonnes/year Example 2: DEVELOPMENT OF BIOFERTILIZER INDUSTRY (4/4)
Slide15 : TECHNOLOGY INSURANCE (1/3) For new business/business that applys new/local
technology -- face critical period in the up-scaling
phase
To bridge mis-match risks between pilot scale and
commercial scale
Risks:
- Real risks - in general covered by insurance
company
- Speculative risks not always covered by
insurance company, unless has specific
characteristics
Participants:
inventors, investors (industry esp. SMEs),
insurance company consortium, and MRT as a facilitator
Slide16 : TECHNOLOGY INSURANCE (2/3)
Slide17 : TECHNOLOGY INSURANCE (3/3) The program started in 2001 and was implemented
successfully, and at the moment 3 packages were
given to 3 industries:
development of Industry for Flower Seedling
(investment of US$61,000)
development of Type B Gelatin Business as a by-
products from leather industry (investment of
US$103,500)
development of Activated Bleaching Earth
Technology for Bentonit Refinement Industry
(investment of US$940,000)
WARINTEK (Technology Information Kiosk) (1/3) : WARINTEK (Technology Information Kiosk) (1/3) Incentives to increase and to empower S&T information by improving S&T information access, developing IT quality and HR competency for regional development, in order to support SMEs development, includes:
1. S&T information services
2. Development of local/regional S&T
data-bases and packages
3. Training, HR capacity building in the field of
documentation, information, library, etc.
BUSINESS MODEL OF WARINTEK (2/3) : BUSINESS MODEL OF WARINTEK (2/3) Partnership between MRT and private providers - MRT’s role: giving supervision/TA, management training and IT content starter-package, and making sure that the program is implemented properly according to terms and conditions; provider’s role: provide funds for hardware investments, technical assistance, S&T information development, technical training (IT platform products and services), internet access services
The business model pattern is adopted - to create better management, quality and standard of services
This model is quite popular - approximate 2,300 outlets within community (IT providers, universities, libraries, regional governments)
WARINTEK (Warung Informasi Teknologi) (3/3) : WARINTEK (Warung Informasi Teknologi) (3/3) ( July 2002 = 2,358 kiosks in 30 Provinces; Target 9,000 by end of 2003 )
START-UP CAPITAL (1/2) : START-UP CAPITAL (1/2) Technology commercialization process is in emergence phase, usually need investment that is difficult to be given by a bank loan, because:
Innovation products still don’t have reliable markets (innovation based)
Investment is needed in the long run
New company usually doesn’t have track record (not solid business road map) and minimal business system development (lack of qualified management to develop business plan), as well as less physical asset for collateral
To develop technology-based industry in emergence phase - need early-stage financing to help new industry:
To prove concept and develop business plan
To develop products and to explore potential market
To make limited production
START-UP CAPITAL (2/2) : START-UP CAPITAL (2/2)
Incentives given as seed capital to a new business applying domestic/ new technology
Collaboration between MRT and PT PNM Techno-Venture
At the moment very limited business candidates fulfil requirements of investment through venture capital
Proposals that not yet reliable for venture capital, will be re-evaluated for start-up company incentives within 2-3 years - to bridge the gap towards venture capital financing
BPPT has a Research Institute for Incubator Technology - at the moment has several tenants to be nurtured towards start-up companies
Slide23 : The Ministry for Research and Technology of the Republic of Indonesia
The Indonesian Inventor Association
Assistant to Deputy Minister for S&T Diffusion Mechanism - Deputy for S&T Utilization and Socialization
Building II BPP Teknologi, 6th floor,
Jl. MH. Thamrin No. 8, Jakarta 10340
Tel: +62-21-316 9166–9, 391 6329
Fax: +62-21-310 1952, 391 6329