Technology and wealth creation

8/11/2019 Technology and wealth creation

1/23

Technology and wealth

creation: where we

are, where weregoing

Other 19 December 2000

print this article...

The interrelationship of technology, economic

advance, and social and political systems, has

many ramifications. The last ten years, in

economic terms, have constituted an American

decade. But the way in which the Americandecade comes to an end is probably the most

important issue for the world economy today.

Every twenty years or so since the IndustrialRevolution, a group of new technologies has had

a major impact on economic life. Steam power,

canals, railroads, telegraph and telephone,electricity, road transport, radio, air transport,

pharmacology, television, computers and

information technology. Some of these have been

general enabling technologies (such as steampower or electricity) which change the way

production is organised some (such as television)create new consumer goods which command a

large fraction of household time or e!penditure.

Enabling technologies transform business life.

"onsumer technologies transform domestic life.

Some major new technologies have large effects

of both #inds. Road transport both changed theorganisation of business and gave households

automobiles. $he process of change set off by

major new groups of innovation has typicallyta#en half a century to wor# through. %or

enabling technologies, production systems have

to be reorganised around them and this

investment (sensibly) ta#es time. &ith consumertechnologies it ta#es some time to establish which

new goods have mar#et appeal and devise

http'www.john#ay.comtrends*+

whats this-

/ohn 0ay 1223
http://www.johnkay.com/print/187.htmlhttp://www.johnkay.com/about/rss.htmlhttp://www.johnkay.com/rssfeed.xmlhttp://htp//reddit.com/submit?url=http://www.johnkay.com/trends/187&title=Technology%20and%20wealth%20creation%3A%20where%20we%20are%2C%20where%20we%25u2019re%20goinghttp://del.icio.us/post?url=http://www.johnkay.com/trends/187&title=Technology%20and%20wealth%20creation%3A%20where%20we%20are%2C%20where%20we%25u2019re%20goinghttp://digg.com/submit?url=http://www.johnkay.com/trends/187&title=Technology%20and%20wealth%20creation%3A%20where%20we%20are%2C%20where%20we%25u2019re%20goinghttp://www.johnkay.com/print/187.htmlhttp://www.johnkay.com/about/rss.html


2/23

methods that will enable them to be produced

sufficiently cheaply for a mass mar#et. $he first

answers are rarely the right answers.

In this long term historical perspective, there isnothing very e!traordinary about the current

phase of innovation based around informationtechnology. 4ot in impact. It is hard to argue

seriously that its effects are more wide5ranging

than those of electricity or telecommunication.4ot in pace of introduction and adoption.

"omputers were invented fifty years ago, were

first commercial products in the 3627s andbecame universal in business in the 3327s.

8gainst the e!pectations of most people in the

early stages of the development of newinformation technology, the cost of processing fell

faster than the cost of communication. $he result

is that everyone has an intelligent terminal on

their des#s, rather than, as with electricity,plugging into a gigantic central system. Instead of

a handful of super computers, we have pc7s. It is

now evident that networ#ing will lead to a finalshape of the business that is somewhere between

the centralised and the distributed e!tremes.

9yperbole associated with the adopt of newtechnologies is familiar to economic historians. It

greeted the railways, electricity, automobiles,

radio and television. :rophets proclaim the arrivalof a new technologically driven era of peace and

harmony. ;an#ers and business gurus anticipate

the demise of traditional businesses and businessmodels. $hese claims are always hugely

e!aggerated, although never entirely wrong. In

the course of the resulting hysteria, gullibleinvestors lose large amounts of money, promoters

and some fortunate individuals ma#e smaller

amounts of money. $here is a rec#oning afterwhich most people pic# themselves up and start

again' at the end of it all, some new real assets

have been created., $here are some special

features of the current boom, but its general shapeis familiar and predictable.


3/23

Simply to #eep up the pace of economic growth

which advanced countries have enjoyed over the

last century, there needs to be a new technologyof significance comparable to electricity or

computers every twenty years or so. Since we arewell through the process of applying information

technology (if the normal cycle of developmentand implementation is fifty years, we are

approaching the end of that cycle) it is time to as#

what the ne!t technology is going to be. $here isone overwhelmingly strong candidate, and that is

biotechnology. and at more mundane levels > no5one

realised that ultimately the main use of video

recorders would be to play pre5recorded movies.

&ith hindsight we will laud geniuses li#e 9enry%ord and ;ill ?ates who saw the future correctly'

but in truth it is not clear that they see the future


4/23

correctly in a manner different from the manner in

which the people who put down the winning

numbers on their national lottery tic#et.

;iology is the e!citing intellectual frontier today,and this has intriguing implications not just for

the environment of economics and politics but forthe way we thin# about economics and politics

themselves. $he claims of evolutionary

psychologists that all human behaviour can bederived from our ancestors7 e!periences on the

8frican savannahs are way over the top, but

should not blind us to the possibility thatfundamental changes in the structure of social

sciences are in prospect. It is entirely credible that

within a few years we will have psychologywhich is firmly based in biology and

neurosciences, and that such psychology will then

form the basis for a more rigorous economics and

sociology. $hese would be fundamental changesin the nature of #nowledge as applied to political

issues. I used to believe that the structure of

economic reasoning which I learnt as a studentwas essentially set for all time. $oday I am less

sure.

If biotechnology is indeed the great new frontier,it seems li#ely to be a creator of new products >

and the associated demand for new products >

rather than a general enabling technology whichenhances the productivity of all business.


5/23

eliminated mortality from infectious diseases

among otherwise healthy adults and could induce

controllable changes in moods. Ather newcompounds could interfere with the progress of

other life5threatening conditions, such ashypertension and cancer. 4ew materials

synthesised from oil had greatly reduced the costof manufacturing many household objects and

made previously impossible construction, from

buildings to aircraft, feasible $he commercialapplication of nuclear power seemed li#ely to

displace fossil fuels as a primary energy source

and transform large scale construction, to befollowed by fusion and fuel cells.

It was reasonable to project all these advancesforward, and those who predicted technological

futures at the time did' yet the outcomes have

been disappointing. &e still travel in essentially

the same vehicles > cars, trains, planes > as in the3627s the space programme produced nothing of

economic significance many new drugs have

been produced, but the bloc#busters have beenanti5ulcerants and anti5depressants. %ew of the

more recent advanced materials have found

commercial application. 4uclear power has failed

to be commercially useful. &e ma#e electricitytoday by burning coal and gas and power our cars

by burning oil, much as we did a century ago.

$hus there is a serious argument that rather than

technological progress being unmanageably fast,

it ris#s becoming worryingly slow. $o find newenabling technologies for the ne!t fifty years, we

probably need to loo# at activities li#e transport,

fuel or to further advances in communications. Armaybe future technological changes will be much

more piecemeal, without discontinuities of the

siBe produced by electricity, aviation orcomputers.

&ealth creation in firms

$he most successful large firms of the twentiethcentury based their success on the management of

large integrated processes. Ail companies


6/23

e!emplify this' so did the great manufacturing

companies of the era, %ord and ?eneral


7/23


8/23

pioneered the technology and the definition of

customer needs.


9/23

to have gained the upper hand. 8ll previous

phases of intense merger activity (the turn of the

last century, the 3127s, the 3627s) have ended inregretful mornings after and this does not seem

li#ely to be an e!ception.

;ut many of the effects of changing technology,and of globalisation, on structures are industry

specific. Sometimes technical change and

liberalisation dictate large firms (airlines),sometimes smaller ones (telecommunications).

Sometimes globalisation implies greater

concentration (;oeing can ma#e planes for theworld from Seattle), sometimes less (neither

; or any at all > ifobliged to rely on their domestic mar#ets).

Sometimes technological change reduces vertical

integration (as in pharmaceuticals, where the

major companies ta#e on a new role as findersand distributors (FpublishersG) of other people7s

research, or in media) > sometimes it increases

the need for such integration (as in retailing,where shop#eepers e!ert an ever increasing

influence over manufacturing processes).

$here are also some general trends in the natureof employment. $he #nowledge economy and

globalisation increase the differentials earned by

those with specific and distinctive s#ills. Soincome ine=uality rises (or unemployment if the

effects on differentials are resisted). 8nd, where it

is possible, uns#illed jobs will be transferred topoor countries. ;ut it is not universally true that

the s#ill re=uirements of jobs rise. @isney7s hosts,

or


10/23

frontier. %or these countries, prospects of

economic growth depend little on technology and

principally on advances in their economic,political and social infrastructure.

$he gap between those countries whose systems

are able to accommodate e!tant technology toeconomic effect and those which cannot is star#

and persistent. Doosely, we might identify the first

group of countries as those whose levels of outputper head are half or more of the levels achieved in

SwitBerland or the nited States. 8t the other end

of the spectrum 5 those with output levels lessthan 2H 5 12H of this potential 5 countries are

constrained by their economic and social

organisation rather than by available #nowledgeand technology. $he first group of rich states

covers a little less than a billion people, the

second group, in sustained poverty, four fifths of

the world population $he intermediate group >which covers a wide span of levels of national

income and economic achievement > contains no

more than a doBen states with a total populationof only around 122 million (mainly in Spain,

8rgentina and South 0orea).

Aver the two centuries of rapid economic growthin rich states, the pattern has been for one or two

countries to join the group of advanced states

every decade or two. In the last fifty years or sothese new members of the rich list include Italy,

%inland and Ireland within Europe and the first

8sian economies (/apan, 9ong 0ong, Singapore)to operate at this technological frontier. $here is a

stri#ing geographical component within Europe,

the countries joining the group have always beencontiguous with, but peripheral to, the e!isting

members (as with Italy, %inland and Ireland) $his

pattern is li#ely to be repeated in the ne!t decadeas the wea#er E members (Spain, :ortugal,

?reece) increase their living standards and, in the

more distant future, other peripheral countries

may aspire to follow them (Slovenia, the "BechRepublic).


11/23


12/23

stoc# prices.

$his is not all nonsense, but it is largely nonsense.$here is no end to the debate about the

appropriate form of political or economicinstitutions' indeed, as I have suggested, we may

in a few decades conduct that debate in entirelynew ways. $he evidence for a permanent increase

in 8merica7s potential growth rate is thin, and it is

worth remembering that only a decade ago the Sproductivity slowdown was a central theme of

economic commentators. 8nd even if everything

said about the 4ew Economy were true, it is notclear why it should lead to the huge increase in

the share of profits in national income which is

needed to justify a level of share prices whoserelationship to earnings is completely out of line

with historical e!perience.

$his is why it is li#ely that the 3327s will beidentified as one of the great speculative bubbles

of history. 8lthough we tal# melodramatically

about stoc# mar#et crashes, precipitate collapseshave always been rare (what made the 313 crash

memorable was not that there was a blac#

$hursday7 ' it was that shares continued to go

steadily down for four years afterwards). ;ubblescan burst, or they can slowly subside. In either

case, the conse=uences are generally unpleasant.

$he 313 crash brought about the virtual collapseof the 8merican ban#ing system. $he most

important speculative bubble of our lifetimes >

the /apanese share and property boom of the3*27s > ended in a ten year recession from which

there still seems no substantial relief.

$hese two historic e!amples illustrate that the

conse=uences of such booms and busts are not

confined to financial mar#ets. It is, however,virtually impossible to give specific predictions of

how, or when, these conse=uences will evolve,

even if it seems inevitable that they will occur. It

has seemed reasonable (but been wrong) toanticipate an end to the 8merican boom for three

or four years now although there are much


13/23

stronger indicators today than before that the end

is in sight.

;ut the way in which the 8merican decade comes

to an end is probably the most important issue for

the world economy today. &hatever economicdevelopments of the ne!t twenty years hold, they

will be very different from the economicdevelopments of the last twenty years, especially

(but not e!clusively) as far as financial mar#etsICBBRMSTC

GlobalATI

IC Programs

Contact Us

Opportunities

News & Events

About GCG

Home

OUR UNIUENE!!

INNO"A#I"E PRO$UC#! !O%U#ION!

PROGRA!

PAR#NER!HIP!

!UCCE!! !#ORIE!

Innovative Pro'ucts
http://www.ic2.utexas.edu/http://www.ic2.utexas.edu/http://www.ic2.utexas.edu/bbr/http://www.ati.utexas.edu/http://www.ati.utexas.edu/http://www.ic2.utexas.edu/global/contact-us.htmlhttp://www.ic2.utexas.edu/global/support-staff/opportunities-2.htmlhttp://www.ic2.utexas.edu/global/latest/news-events.htmlhttp://www.ic2.utexas.edu/global/about-us.htmlhttp://www.ic2.utexas.edu/global/index.phphttp://www.ic2.utexas.edu/global/our-uniqueness/our-uniqueness.htmlhttp://www.ic2.utexas.edu/global/innovative-product-solutions/innovative-product-solutions.htmlhttp://www.ic2.utexas.edu/global/pioneering-programs/pioneering-programs-2.htmlhttp://www.ic2.utexas.edu/global/partnerships/partnerships.htmlhttp://www.ic2.utexas.edu/global/success-stories/gcps-economic-development-programs-3.htmlhttp://www.utexas.edu/http://www.ic2.utexas.edu/globalhttp://www.ic2.utexas.edu/http://www.ic2.utexas.edu/bbr/http://www.ati.utexas.edu/http://www.ati.utexas.edu/http://www.ic2.utexas.edu/global/contact-us.htmlhttp://www.ic2.utexas.edu/global/support-staff/opportunities-2.htmlhttp://www.ic2.utexas.edu/global/latest/news-events.htmlhttp://www.ic2.utexas.edu/global/about-us.htmlhttp://www.ic2.utexas.edu/global/index.phphttp://www.ic2.utexas.edu/global/our-uniqueness/our-uniqueness.htmlhttp://www.ic2.utexas.edu/global/innovative-product-solutions/innovative-product-solutions.htmlhttp://www.ic2.utexas.edu/global/pioneering-programs/pioneering-programs-2.htmlhttp://www.ic2.utexas.edu/global/partnerships/partnerships.htmlhttp://www.ic2.utexas.edu/global/success-stories/gcps-economic-development-programs-3.html


14/23


15/23

An &ntroduction to Commerciali%ation

= Commerciali1ation mo'el an' value4a''ing steps

= Critical bri'ging activities .or managing sta+e(ol'er interests/ e>pectations/

an' support

= Processes o. tec(nolog) trans.er?wit(in an organi1ation or between

organi1ations

= !trategies an' conte>t

= #(e role government can pla) to support an' encourage commerciali1ation

Technology Commerciali%ation Assessments

= uic+loo+ an' In4$ept( assessments = Assessments an' incubation o. new

ventures

Technology 'icensing &ssues

= Owners(ip c(allenges = Publication vs2 IP protection@ !tartups vs2 licensing =

Ro)alt) policies/ 'istribution o. licensing revenue/ etc2

"odule # (b)ectives:

= 9amiliarit) wit( t(e .un'amental issues o. t(e commerciali1ation process/ an'

un'erstan'ing o. t(e conte>t in w(ic( tec(nolog) assessments/ venture planning

an' business planning are value4a''ing commerciali1ation steps2

= nowle'ge o. (ow to assess a tec(nolog) .or its commerciali1ation potential2

= Un'erstan'ing o. (ow a tec(nolog) assessment process can be use' to i'enti.)

potential commerciali1ation partners an' to .ocus a''itional researc( an'

'evelopment2

= Un'erstan'ing o. basic tec(nolog) licensing issues2

"odule 2: *enture +evelopment and ,usiness $lanning

8 'a)s o. instruction

Assessing t(e .easibilit) o. a venture an' 'etermining t(e most appropriate

venture mo'el How a business plan is 'evelope' .rom a venture mo'el

Communicating an' A'vocating "enture I'eas an' ,usiness Plans

= Content an' 'eliver) o. messages t(at communicate an' a'vocate i'eas0plans

= Elevator speec(es/ ten4minute blit1es/ venture plan summaries/ an' e>ecutive


16/23


17/23

targets .or new pro'ucts/ 'etermining mar+et potential/ setting obectives/ an'

'eveloping mar+eting strategies an' tactics to launc( a (ig( tec(nolog) pro'uct

or service2

"odule 0 (b)ectives:

= E>plain t(e place an' roles o. mar+eting in t(e process o. commerciali1ing new

tec(nologies an' (ig( tec( pro'ucts2

= Appl) t(e principles o. persuasion to inDuence sta+e(ol'ers an' customers at

all stages o. t(e commerciali1ation process2

= $esign an' be able to 'e.en'/ a mar+eting plan .or t(e launc( o. a (ig( tec(

pro'uct t(at coul' be supporte' b) sta+e(ol'ers an' customers2

"odule : Competitive Technology-,ased trategy

748 'a)s o. instruction

#(is mo'ule/ 'esigne' aroun' a -el' proect/ classroom lectures an' case

stu'ies/ will teac( managers (ow to 'evelop a tec(nolog)4base' strateg)2 #(e

un'erl)ing obective is to teac( e3ective strategic management in tec(nolog)4

'riven environments2

"odule (b)ectives:

= Un'erstan' (ow to con'uct a strategic global in'ustr)/ -rm an' pro'uctanal)ses in (ig( competitive tec(nolog) environments2

= #ranslate competitive strategic management t(eor) into practical applications2

"odule 3: $resentation Wor1shop and inal $resentations

748 'a)s o. instruction0presentations 'epen'ing on number o. participantsF

#(is mo'ule is t(e capstone o. t(e program an' consists o. two sections2 $uring

t(e -rst 'a) or 'a) an' a (al./ 'epen'ing on t(e number o. teamsF/ eac(

participating team will give a 'r)4run o. t(eir presentation2 9acult) will provi'e.ee'bac+ on bot( t(e content an' st)le o. t(eir presentation an' on t(e

substance o. t(eir venture i'ea an' plan2 #(e ot(er participants also will (ave

t(e opportunit) to o3er .ee'bac+2 #eams will (ave t(e opportunit) to integrate

t(at .ee'bac+ into t(eir -nal presentations/ w(ic( t(e) will give in t(e remaining

time2 9acult) will provi'e a''itional .ee'bac+ on t(e -nal presentations2


18/23

"odule 3 (b)ectives:

= Participants will receive .ee'bac+ t(at can be integrate' into t(eir -nal

presentation2

= Participants will learn about best practices o. presentations b) observing ot(er

teams/ listening to .acult) .ee'bac+/ an' o3ering t(eir own .ee'bac+2

= Participants will learn about best practices o. venture planning b) listening to

.acult) .ee'bac+ o. t(e presenting teams2

7J IC Institute/ #(e Universit) o. #e>as at Austin2 All rig(ts reserve'2

Global Commerciali1ation Group K ;5728;2885 K globalLic72ute>as2e'u

,ene4ts !or Countries and 5egions

= Create Globall) Competitive Regions/ In'ustries an' Enterprises

= I'enti.) Hig(4"alue Innovations

= Create Hig(4"alue Mobs

= Enable %ocal "entures to Access Global ar+ets an' Capital

= Accelerate Companies into Global ar+ets

= 9in' an' atc( Global Partners .or ,usiness0Researc(

= No4cost Economic $evelopment

= ,uil' t(e National an' %ocal Capacit) to !uccess.ull) Commerciali1e

#ec(nolog)

= %aunc( #ec(nologies into Global ar+ets

= Connect Innovations to Investment 9un'ing
mailto:[email protected]://www.ic2.org/mailto:[email protected]


19/23

= Create !uccess.ul Entrepreneurs

6With so many new technologies vying !or the attention o! resource

providers7 choices about which technologies to !und must be made

early and more con4dently than in the past. Those who ta1e the plunge

early with conviction are the ones who establish leadership in a

technology7 gain a proprietary position7 and then dominate the

products emanating !rom it.8-- Vijay K. Jolly, Commercializing New

Technologies

,ene4ts !or Corporations 9 $rivate nterprises

GCG (as provi'e' (ig( tec( corporations wit( action programs to better e>ploit

intangible assets?suc( as unlicense' IP?to create value2 ,) (elping

corporations 'etermine appropriate strategies .or on4t(e4s(el. tec(nologies an'

create 'ecision processes .or tec(nologies/ ICs GCG (as contribute' to t(e

generation o. signi-cant revenue2

= I'enti.) Hig(4"alue Innovations

= Uncover "aluable Corporate Intelletual Propert)

= %aunc( #ec(nologies into Global ar+ets

= 9in' an' atc( Global Partners .or ,usiness0Researc(

= Create an' Invigorate Innovation Ecos)stems

= oneti1e %atent Intellectual Propert)

= a>imi1e Innovation Potential o. Organi1ations

= Compelling Programs to Help *in Government Contracts

= Hig(4ROI Programs .or Generating O3set Cre'it

= $evelop New Global ar+ets

= Create New "entures

(ttp600www2newsDas(2org07:070si0si7552(tm


20/23

TRANSFERRING TECHNOLOGY, CREATING WEALTH

MANILA, June 7, 2005(STAR) STAR SCIENCE By Ellery F. Jose - As a graduate

student of te!nology "anage"ent (a relat#$ely ne% graduate &rogra" of ') I a"often as*ed +y "y a,ua#ntanes to d#fferent#ate "y degree fro" an MBA or MA. I

e&la#n #t #n ter"s of !o% t!ey d#ffer #n ontent and e"&!as#s a $ery aade"#

def#n#t#on. My lass"ate g#$es a "ore #llustrat#$e def#n#t#on and a +etter #dea ofte!nology "anage"ent. For !#" #t #s s#"&ly "a*#ng "oney out of te!nology. I!a$e s#ne ado&ted !#s def#n#t#on and I %as glad t!at t!#s #dea resonated #n a reent

art#le t!at I read. It %as a+out se$eral F#l#no entre&reneur#al tea"s t!at %on #nloal and #nternat#onal +us#ness &lan o"&et#t#ons. Featured %ere a graduate student

fro" S#ll#"an 'n#$ers#ty %!o #n$ented a te!nology for %aterless l#$e f#s! trans&orta tea" fro" FE' %#t! t!e#r +us#ness &lan for onstrut#on +oards "ade out of

alu"#nu" &a*ag#ng and eng#neer#ng undergraduates fro" ' /#l#"an %!o&re&ared a +us#ness &lan for afforda+le !#g!-,ual#ty "ed#al e,u#&"ent.

Congratulat#ng t!e" %as res#dent#al Consultant Jose Coneon III %!o sa#d It0st#"e for F#l#nos to "a*e "oney.

1o%e$er t!#s #dea of te!nology for %ealt!-reat#on st#ll !as to +e ult#$ated #n t!eF#l#no ons#ousness. In t!e !#l#&nes a s#ene or eng#neer#ng areer #s notloo*ed at as a &at!%ay to +eo"#ng r#!. 2!en I %as an undergraduate students

*ne% t!at aade"# resear! es&e#ally #f t!ey generate #n$ent#ons !a$e &otent#al

o""er#al $alue. But so"e!o% #t %as uno""on to t!#n* of us#ng our s#ent#f# orte!n#al *no%-!o% to +u#ld a +us#ness enter&r#se. 2e *no% t!at t!e 'n#$ers#ty of

t!e !#l#&nes !as not yet real#3ed t!e &otent#al $alue of #ts te!nolog#es or +enef#tedgreatly fro" t!e" unl#*e Stanford 'n#$ers#ty %!#! !as already earned 4556 "#ll#on

#n royalt#es fro" #ts &atents s#ne 789:. Based on a sur$ey for t!e year 6:::A"er#an un#$ers#t#es !a$e ree#$ed a total of 47.6 +#ll#on #n royalt#es fro" t!e#r

l#ensed te!nolog#es %!#! !a$e generated 4;: +#ll#on #n &rodut sales and no%ledge an also+e e"+edded #n #n$ent#ons t!at ar#se fro" un#$ers#ty resear! and are t!e su+=et of

te!nology transfer. A un#$ers#ty %#ll t!en a&&ly #ntelletual &ro&erty (I) &rotet#on#n t!e for" of a &atent or ut#l#ty "odel and t!en see* &otent#al #n$estors %!o "ay

%ant to l#ense t!e #n$ent#on. It #s atually l#*e a soft%are l#ense t!at g#$es a user ar#g!t to use MS 2ord +ut not o%n #t %!#! "eans t!at #t annot +e re&rodued and

d#str#+uted to ot!er Cs unless &er"#ss#on #s granted +eause t!e o&yr#g!t for #tre"a#ns %#t! t!e o%ner #n t!#s ase M#rosoft.

A te!nology l#ense %#ll al%ays #nlude &ro$#s#ons on &ay"ents (royalt#es u&-front

fees "#lestone &ay"ents) elus#$#ty (MS 2ord #s non-elus#$e +eause #t #sl#ensed to anyone %!o %ants to use #t and &ay t!e re,u#red fee) lengt! ofeffet#$#ty and o+l#gat#ons of t!e #n$estor or l#ensee. I %as saddened to !ear fro" an

Ateneo &rofessor t!at one of !#s olleagues #n$ented a $ery useful de$#e +ut sold #ts&atent to an #n$estor rat!er t!an l#ens#ng #t t!ere+y los#ng all !#s r#g!ts to t!e

te!nology. ?es t!#s #s an o&t#on +ut not &referred for o+$#ous reasons. @#ens#ngallo%s "a#"#3at#on of re$enues fro" t!e te!nology +eause #t g#$es t!e &atent (or

ut#l#ty "odel) o%ner a longer (and ult#"ately greater) strea" of #no"e unl#*esell#ng %!#! "eans =ust a one-off &ay"ent +ased on t!e &resent (and &otent#ally


21/23


22/23

or&orat#ons #n t!e &ast %!#! "ay !a$e ontr#+uted to t!e#r negat#$e #"age. T!euse of eternal f#r"s or foundat#ons re"a#ns a $#a+le o&t#on deste t!ese

d#sad$antages as s!o%n +y '> Austral#an and er"an un#$ers#t#es.

R#g!t no% t!e 'S !as one of t!e "ost $#+rant syste"s of un#$ers#ty te!nology

transfer. T!ere #s a &rofess#onal organ#3at#on alled t!e Asso#at#on of 'n#$ers#ty

Te!nology Managers or A'TM %!#! #s o"&osed of !undreds of l#ens#ng&rofess#onals fro" d#fferent un#$ers#t#es. T!e suess of t!e syste" !as +eenred#ted to t!e fa"ous Bay!-/ole At of 78: an at t!at ga$e A"er#an un#$ers#t#es

t!e r#g!t to o+ta#n t#tles on #n$ent#ons ar#s#ng fro" federal-funded aade"#resear!es. It &ro$#ded t!e aade"e #nent#$es to set u& t!e#r o%n te!nology

transfer un#ts and to "a#"#3e t!e transfer of t!e#r #ntelletual &ro&ert#es to #ndustry.

Indeed aord#ng to t!e la% #t #s t!e#r "andate to do so. If t!ey fa#l t!en t!efederal go$ern"ent %#t! #ts "ar!-#n r#g!ts an ta*e t!ese &atents and

o""er#al#3e t!e" on #ts o%n.

T!e suess of t!e Bay!-/ole #n t!e 'S %#t! ot!er ountr#es l#*e Ja&an and er"anyado&t#ng so"e of #ts &ro$#s#ons !as generated #nterest and de+ate #n so"e of our

aade"# #nst#tut#ons and %#t!#n /DST. T!e#r ,uest#on #s 2#ll a s#"#lar leg#slat#on#"&ro$e our loal te!nology transfer syste"G I !a$e "et so"e &eo&le %!o +el#e$e

t!at #t %#ll and so"e %!o +el#e$e ot!er%#se. Dn t!e ot!er !and "ost are +et%eent!ese etre"es. ersonally I +el#e$e t!at t!ere are lessons t!at %e an learn fro"

t!e !#story of t!e Bay!-/ole At +ut t!ese lessons "ust +e &laed #n t!e r#g!tontet. T!e Bay!-/ole0s &r#"ary ontr#+ut#on %as to re"o$e t!e greatest o+stale

to t!e &roess +ureauray. By g#$#ng t!e res&ons#+#l#ty for te!nology transfer toun#$ers#t#es t!e Bay!-/ole re"o$ed t!e need for &r#$ate f#r"s to na$#gate t!e "a3e

of oftent#"es #nons#stent rules on l#ens#ng +y t!e d#fferent federal agen#es t!atfund aade"# resear!. For ea"&le l#ens#ng an #n$ent#on t!at %as funded +y

NASA t!e NI1 and 'S-/DE %ould !a$e +een a legal n#g!t"are Today a f#r" %ould=ust !a$e to go to an a&&ro&r#ate off#e #n a un#$ers#ty.

Furt!er t!e la% allo%ed elus#$e l#ens#ng of #n$ent#ons fro" resear! funded +y&u+l# funds. As a result "ore f#r"s %ere enouraged to l#ense t!ese te!nolog#es.1o%e$er not all #n$ent#ons are l#ensed %#t! elus#$#ty as #n t!e ase of

reo"+#nant /NA (and ot!er +as# te!nolog#es t!at %#ll #"&at se$eral #ndustr#es).But elus#$#ty !as #ts #n!erent +us#ness ad$antages t!at "a*e te!nolog#es "ore

attrat#$e to &otent#al l#ensees.

S#"#lar to t!e 'S a large &art of aade"# resear! #n t!e !#l#&nes #s funded +ygo$ern"ent funds and a Bay!-/ole-ty&e la% %#ll greatly #"&at te!nology transfer.

But t!e go$ern"ent &art#ularly t!e /DST and not un#$ers#t#es !as alreadyde$elo&ed s&e#f# "e!an#s"s for te!nology transfer (I u#del#nes and TAI or

Te!nology A&&l#at#on and ro"ot#on Inst#tute) alt!oug! ' also !as an e"erg#ng

syste". Su! leg#slat#on %#ll fa#l#tate t!e transfer &roess es&e#ally no% t!at ot!ergo$ern"ent agen#es are des#gn#ng t!e#r o%n I rules and &ol##es. 1o%e$er #t #s!#g!ly unl#*ely t!at t!e /DST %#ll g#$e u& #ts &r#"ary role #n t!e transfer &roess.

2!#le t!e /DST syste" needs #"&ro$e"ent #t !as s!o%n #tself a&a+le of suessfulte!nology transfer fro" un#$ers#ty resear! as #n t!e ase of t!e !er+al "ed##nes

lagund# and sa"+ong fro" ' Man#la.

T!ere #s no e$#dene loal or fore#gn to suggest t!at #nternal un#ts %#t!#n

un#$ers#t#es %#ll neessar#ly +e "u! +etter t!an a go$ern"ent ageny or any ot!er


23/23

eternal ent#ty #n transferr#ng te!nology. It "ay +e t!at a /DST-led a&&roa! "ayadd anot!er layer of +ureaurayH !o%e$er +ased on "y o%n o+ser$at#ons t!e

d#stane +et%een a ' &rofessor and a /DST resear! oun#l "ay +e s!ortert!an t!e d#stane +et%een ' faulty and t!e ' ad"#n#strat#on. Ne$ert!eless t!ere

are good reasons for "a#nta#n#ng t!e autono"y of aade"# #nst#tut#ons &art#ularly#n s!ang t!e#r resear! agenda. A redued role #n "anag#ng t!e#r o%n #ntelletual

&ro&ert#es "ay defeat t!e $ery &ur&ose of aade"# freedo" %#t! gra$eonse,uenes. (A o"&ro"#se t!en !as to +e "ade) Regard#ng elus#$#ty for

&u+l#-funded resear!es I &ersonally +el#e$e t!#s #s a non-#ssue #n t!e +roaderontet and #s +est de#ded for ea! ase +ased on ae&ta+le r#ter#a.

Ellery F. Jose is an honor graduate of the BS Molecular Biology and Biotechnology

program of the University of the Philippines, Diliman. e is currently finishing hisresearch pro!ect on "Developing a Frame#or$ for University %echnology %ransfer&

%he 'ase of UP " for his Master in %echnology Management (M%M) at the UP%echnology Management 'enter. e #or$ed for the UP %echnology *icensing +ffice

in -- and #as also an S/% research teacher at the Philippine Science igh Schoolmain campus. e is a founding mem0er of the Pilosopong %asyo %echnopreneurs

'ooperative esta0lished 0y enterprising graduate students of the UP1%M' to serve asan incu0ator organi2ation for potential technology entrepreneurs. 3n the future, he

plans to pursue a career as a technology transfer consultant.

E-"a#l !#" at ef=ef=6::7ya!oo.o".
mailto:[email protected]:[email protected]

Documents

Technology and wealth creation