In an era of technological advancements, innovations are on a verge of representing the qualitative approach of a changing society. On one hand, innovations have the potential of ameliorating the quality of life by significantly contributing to labor and production. On the other hand, such transitions also demand ground-breaking competitive advancements that can square up to the needs of changing dynamics of developments. The ideology of managing the adoption and flow of knowledge has become a crucial parameter for every country. Therefore, it’s of utmost importance to focus on scientific and technological research methods for fruitful exchange to maintain the aura of competition.
Technology Transfer comprises of transferring skills and knowledge of technological advancements through legal recourse such as licensing and assigning so that the accessibility of innovative developments is assured at a wider range throughout the globe. This phenomenon helps in exploiting the already existing knowledge about technological advancement and at the same time provides scope for further innovations. In the words of the World Intellectual Property Organization (WIPO):
“Technology transfer is a collective term for the mechanisms and processes that enable the development of a product or a technology used to manufacture products from the knowledge formed in public research organizations.”
The main parameters that function alongsidefor a successful technological transfer mechanism are academia and industry. Academia contributes to promoting and generating novel knowledge, whereas industry synthesizes such knowledge into a marketable entity, thereby making the two parameters act directly proportional to each other. This interface has a significant impact on economies driven by knowledge and innovations, which subsequently lead to an advanced modern society.
However, this interface doesn’t exist since time memorial. Educational institutions and industrial sectors had their separate ways, with no intention to cross paths. Their objectives were opposed to each other, back in the times, the former being rigid towards the traditional ways of spreading knowledge and the latter being flexible in adopting ways to generate wealth. Till the 19th century, universities were isolated from the various aspects of society whereas industrial organizations were practically involved in ameliorating the economic conditions. The idea that their interaction could help the country in its growth and development was only figmental.
The very first reason these two sectors started coming together was war. A majority of the technological advancements taking place in the 20th century were driven towards facilitating the war situation prevailing during that era. This led to the diversion of objectives in the academic sectoras scientists and researchers were expected to use their studies catering tothe needs of society. Another factor was the propagation of education as a basic right for all. This allowed education not being limited to only a few but presented as a commodity accessible to all. Research and innovations started developing simultaneously.
Innovations percolated the idea of being protected from infringements through emergence of intellectual property rights. Academic researchers that had the probability of generating industrial products sought protection through patenting their invention, which later were licensed to the preferred industry which would generate marketable products using the invention and would share the profits with the patent owners by paying contracted royalties rates. Hence, this led to the genesis of the technology transfer mechanism.
When talking about innovations, wars, and a leading economy, Israel comes to mind instantly. It has gained a considerable appreciation for its innovation-based economy and serves as an inspiration for all the developing countries. We have covered the innovation model of Israel and the reason behind its journey for becoming the Start-Up Nation in one of our previous articles in the Blog, which can be accessed here. In this article, we will address the successful technology transfer model of Israel and what lessons concerened thereto.
Israel has heavily invested in civilian research and development (R&D) projects and has been inspiringly successful in building a flourishing knowledge-based economy. The concept of technology transfer in Israel dates back to the 1960s and its model has been adopted by great nations such as the United States of America. The success rate of the Israel technology transfer model has led WIPO to consider it as the best practice in existence. Israel has three sectors devoted to R&D and there exists a clear demarcation between all three concerning their methodology of having an impact on the market. These three sectors include industry, academic, and government.
Industrial R&D is led by business entities who indulge in developing a product that can fit the market demand. Owing to the commercialization aspects, it receives a huge amount of funding, both public and private, as compared to the other two sectors. Academic R&D is mostly curiosity-driven, wherein the researcher is free to contribute to the pool of knowledge and embrace academic freedom. It is supported by the research center in academic institutions. Government R&D is devoted to public welfare. The research is generally necessity-oriented focusing on public health, education, agriculture, so on and so forth. Such research is either proposed via tenders or by specific governmental research institutes.
All three sectors operated independently and were concerned with their specific technology transfer mechanism till the late 1950s. The universities started coming up with Technology Transfer Companies (TTC), an independent legal entity, operating as a not-for-profit subsidiary of a particular university. The objectives of such TTC were to commercialize academic research on University’s behalf. These TTCs are regulated by statutes framed by the concerned university that governs the right and obligations of the research.
The first of its kind TTC was started by the Weizmann Institute of Science by the name Yeda Research & Development Co. Ltd. Its success has contributed to a paradigm shift in the technology transfer model in Israel, and at the same time, it has become a vanguard for several other TTCs that were established subsequently. It has also set a benchmark by being among the top universities around the world in terms of generating income from commercialized academic research. Faculties of the University also act as a consultant to private sectors that help in creating a link between academic and industrial sector. Its strategy of creating a harmonious balance between public interest and financial profits has made its technology transfer model exemplary for the rest of the world.
The role of the TTC includes but is limited to the following:
- To check if the invention qualifies for patent registration
- To deduce the probability of commercializing a particular innovation
- To formulate market strategies for introducing a suitable innovation
- To propose the innovation to specific industrial bodies who might be willing to introduce the resultant product in the market.
- To facilitate the university and the concerned industrial entity with the licensing agreement, in case such proposal is successfully implemented.
- To identify any research gap with the registered innovation that can hinder the commercial viability of the invention concerned.
- To provide proper guidance to the researcher by suggesting ways that can fill the void created by the research gap, so that the innovation becomes compatible with the marketable standards.
The part of the share received from commercialization of academic research goes to the concerned University, which is utilized as funds for future research.
Israel has come up with another interesting concept called “Technology Entrepreneurship”. It is an amalgamation of technology and business, facilitated by academic institutions to introduce an innovative and marketable product.
Enstorage Inc., founded in 2007, by two business entrepreneurs (Mr. Eran Yarkoni & Mr. Nachman Shelef), and an academician (Prof. Emanuel Peled) was the first of its kind, which led to the genesis of such a concept. Such a business model is formed based on the intellectual properties associated with the technological innovation, which eventually decides the licensees willing to vouch for the result of such innovation. This arrangement has made all three R&D sectors in Israel come together and promote innovations in a manner that minimizes the risk of market failures and at the same time contributes to maintaining information symmetry.
Another major contribution for having such an advanced model of technology transfer is attributed to the Israel Tech Transfer Organization (ITTN). It is a private non-profit organization that provides a platform for technology transfer companies in Israel towards fruitful engagement. It facilitates these companies through synchronized affiliation with world-renowned universities and research institutions. The objective of having such an organization was to set up an authority to represent the interest of member companies before the government. It also helps in bridging the gap between local companies and global institutions, helping them engage in advanced technology transfer. It also promotes the awareness of innovations and research propositions, thereby enhancing the public accessibility of the same. As of now, there are fifteen organizations contributing to the cause for which ITTN was formed.
Israel Advanced Technology Industries (IATI) is yet another player in this field. It is an umbrella organization that aims to connect Israel’s tech ecosystem and act as a medium for integrating governments’ goals with the various sectors of the industry. It also provides accessibility to successful global R&D, business & financial enterprises to promote mutual R&D and engender business opportunities for its members. At present, it has a plethora of members that include academic institutions, incubators, investment entities, service providers MNCs, tech-transfer offices, etc.
Some of the successful technology transfers assisted by IITN are listed below:
| S.No. | PRODUCT | DESCRIPTION | DEVELOPED BY | IMAGE |
| 01. | PERIOCHIP | A rectangular chip, inserted into a periodontal pocket for treating patients with chronic periodontitis. | School of Pharmacy; Yissum, the Hebrew University Technology Transfer; Hadasit, Hadassah Medical Organization. |
Image from here. |
| 02. | MOBILEYE | An automated onboard driver assistant system. The technology uses algorithms that have an advanced Spatio-temporal classification technique that trains the system with static and dynamic visual information. | MobilEye Vision Technologies Ltd. & Yissum, the Hebrew University Technology Transfer |
Image from here. |
| 03. | ERBITUX | An antibody-based therapy presenting synergism with conventional chemotherapy. | ImClone System Inc.; Yeda, Weizmann Institute of Science. |
Image from here. |
| 04. | EXELON | A cholinesterase inhibitor, prescribed for people in the early or middle stages of Alzheimer’s disease. | Yissum, Hebrew University Technology Transfer, The Hebrew University of Jerusalem. |
Image from here. |
| 05. | STOREDOT | An Israeli lithium-ion battery company that develops batteries that charge significantly faster than conventional lithium-ion batteries. | Tel Aviv University & Doron Myerdorf, CEO, StoreDot. |
Image from here. |
Author- Himani Jaruhar, National Law University Odishas
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