takuji hara graduate school of business administration kobe university
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Roles of Technology Licensing Organizations (TLOs) in the Commercialization of Life Sciences ~ Japan ’ s Situation and Problems. Takuji Hara Graduate School of Business Administration Kobe University. Contents. The Process of Innovation The Bridging Problem - PowerPoint PPT PresentationTRANSCRIPT
April 2003Takuji Hara, Kobe
University 1
Roles of Technology Licensing Organizations (TLOs) in the Commercialization of Life
Sciences~ Japan’s Situation and
Problems
Takuji HaraGraduate School of Business
AdministrationKobe University
April 2003Takuji Hara, Kobe
University 2
Contents
The Process of InnovationThe Bridging ProblemTLO as an Organization for Bridging the Two CulturesThe Area of Life SciencesSome Case StudiesA SurveyConclusions
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The Process of InnovationThe Linear Model
Sciences Technologies Products
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The Interactive Model
Sciences Technologies
Organizations Institutions
Prod
ucts
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The Interactive ModelAn Example: Pharmaceuticals
Compound Application
Organizational Authorization
Market
Hara, T. (2003), Innovation in the pharmaceutical industry, Edward Elgar
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The Two CulturesThe Culture of Academic Research (Universities) Pursuing Knowledge
Diverse and Longer-term Perspectives
The Culture of Market Economy (Business Enterprises) Pursuing Profits
Focused and Shorter-term Perspective
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The Two Culture and Innovation
To achieve innovation requires both of the two cultures and their interaction.
Bridging the gap between the two cultures is the key to innovation.
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The Bridging Problem
Research World
Understanding NatureReputation in the Academic Society
Business World
Making ProfitsThe Growth of the Company
The Need of Research Funds The Need of New ProductsThe Desire for Contribution to Society
Bridging → Innovation
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The GatekeeperReceiving Information and Translating
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The Boundary SpannerReceiving and Sending InformationTranslating and Arranging
Research World Business WorldBoundary Spanner
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The System BuilderLinking Elements
Social ActorsTechnological Components
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TLO as an Organization for Bridging the Two CulturesReceiving and Sending Information about Technology and MarketValuing and Enclosing Technology (Translating)Marketing Technology (Translating and Arranging)Choosing Licensees (Linking Elements)Licensing (Arranging and Linking)Management of Intellectual Properties and Licensing Contracts (Arranging)Consulting (Translating and Arranging)
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TLOs in JapanInstitutionalized in 1998 by so-called Japan’s TLO act.32 Official TLOs in Japan (March 2003)Different Forms
・ Stock Corporations ・ Intra-university Organizations ・ Foundations
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Examples of TLOs in JapanCorporations:
Hokkaido TLO (Hokkaido U. etc.)Tohoku Technoarch (Tohoku U. etc.)Institution of Tsukuba Liaison (Tsukuba U. etc.)CASTI (Tokyo U.)Kansai TLO (Kyoto U. etc.)
Foundations:Osaka TLO (Osaka Prefecture, Osaka City, Osaka U.
etc.)Hyogo TLO (Hyogo Prefecture, Kobe City, Kobe U. etc)
Intra-University Organizations:Keio University Intellectual Property CenterWaseda University Intellectual Property Center
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Innovation in the Area of Life Sciences
Very Long Lead-timeHuge CostsHigh Risk, High ReturnDecisive PatentsExclusive Contracts Are Often Required. ↓
Significance of Each Licensing Contract → Finding Excellent Partners Is Crucial.
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Case StudiesOTM, UC San FranciscoOTTL, Harvard Medical SchoolIC Innovations, Imperial College, LondonCASTI, Tokyo University
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OTM, UC San Francisco (Aug 2001)
One of UC’s TLOs (Largest Income Source) 4 PhD Licensing Associates in Life Sciences
2 Associates Have Experience in Technology Transfer in Life Sciences170 Contracts a Year, $(2)77m IncomePersonal Network Is ImportantFocus at First, Then Go OpenBio-network in the Bay Area
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OTL, Harvard Medical School (Feb 2002)
Intra-University Organization 4 PhD Associates in Life Sciences All Have Experience in Technology Transfer or Business. Income $25m Personal Network Is Important Bio-network in Boston
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IC Innovations, Imperial College, London (Jul 2001)
Stock Corporation Owned by Imperial College5 Associates (2 PhDs in Life Sciences)3 of Them Have Experience in Business77 Inventions in Life Sciences32 Patents in Life SciencesHuman Network Is ImportantBio-network in London
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CASTI, Tokyo University (Aug 2001)
Stock Corp. Owned by a Group of Academic Staff at Tokyo University 4 Associates (None Works Biotechnology Only) 2 Have Experience in Business but NOT in Life Sciences10 Contracts (10 More Close to Agreement)Co-marketing with Recruit Co. Ltd., a Human Resource Management Consultant
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A International Comparative Survey on the Situation of TLOs in the Life Science
Area(conducted in October 2001 - March 2002)
Licensing Associates in Life SciencesSocial NetworksActivitiesPerformance
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Licensing Associates in Life Sciences
North America Japan
Samples Average Samples Average
t-test *p<.05
Number of Associates 16 3.66 12 2.75
Number of Associates in Life Sciences 16 2.44 12 1.54
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Social NetworksNorth America Japan
Samples Average Samples Average
t-test *p<.05
Machine Industry 11 2.36 12 4.08 *
IT Industry 13 3.15 12 3.75 Chemical Industry 14 3.27 12 3.50
Pharma Industry 14 4.14 12 2.83 * Agri Industry 14 3.14 11 2.73
Machine Engineering 12 2.50 12 4.08 * Chemical Engineering 13 2.77 12 3.67
Electronics 13 3.00 12 3.83 Computer Sciences 13 3.62 12 3.33
Life Sciences 15 4.40 12 2.83 * Faculty of Engineering 13 3.85 11 4.64
Faculty of Sciences 15 4.00 10 3.60 Faculty of Agriculture 11 2.82 9 3.56
Faculty of Medicine 12 4.25 10 3.80 Faculty of Pharmacology 12 3.83 7 2.86
Graduates 13 4.00 11 3.09 Ministry of Industry 12 2.67 11 3.64 *
Ministry of Health 13 3.15 10 1.90 * Financial Institutions 15 3.27 10 2.90
5 = V
ery Stron
g Lin
kage 1 = V
ery Weak o
r No Lin
kage
Foreign Companies 14 2.43 10 2.10
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ActivitiesNorth America Japan
Samples Average Samples Average
t-test *p<.05
Finding Technology Seeds 16 3.81 12 4.17
Evaluation of Seeds 16 4.25 12 4.42
Supporting Patent Application 16 4.56 12 4.50
Information Services, Advertisement 16 3.63 12 4.42
Technology Licensing 16 4.56 12 4.33
Management of Royalties 16 4.00 11 4.00
Supports for Research (Grants) 15 3.07 12 2.67
Supports for Spin-offs 16 3.13 12 2.92
Investigation into Technology Needs 15 3.27 12 4.00
Supports for R&D Collaboration 16 3.94 11 3.09 *
Supports for Financing after Transfer 14 2.14 11 1.73
Supports for Patent Disputes 16 3.00 9 1.56 *
Proposal of Business Plans 16 3.00 11 2.18
Education to Academic Researchers 16 4.06 12 4.00
Education to Potential Licensees 16 4.00 11 3.64
Appeal to Governments 16 2.88 12 3.25
Enlargement of Social Network 16 3.25 12 3.83
Enhancement of Operational Funds 16 3.25 12 3.50
Improvement of Services 16 3.94 11 3.55
5=Very A
ctive
1=N
o Activity
Use of Information Technology 16 4.06 12 3.75
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Performance
North America Japan Year 2000
Samples Average Samples Average
t-test *p<.05
Number of Patents Filed in Total 16 46.50 12 44.83
Number of Patents Filed in Life Sciences 13 30.54 12 11.17
Number of Licensing in Total 15 46.13 12 6.83
Number of Licensing in Life Sciences 12 30.33 12 1.33
Values of Royalties in Total 16 $9.10m 12 $0.05m
Values of Royalties in Life Sciences 11 S7.15m 12 $0.0095m
Note) 1 dollar (Canada) = 0.6 dollar (US), 1 Yen =
0.008 dollar (US)
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ConclusionsTLOs are playing a role of bridging academic and business cultures.In the area of life science, each licensing contract is important.Ability in both life science and business is a key to successful technology transfer.Human network is another key to success.Life science expertise in TLOs is insufficient in Japan.Network in the life science area is underdeveloped in Japan.The linking function of TLOs is weak in Japan.
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Key Tasks for TLOs in Japan
Reinforcement of Expertise in the Life Science Area with Business Experience Development of Social Network in the Life Science AreaActivation of the Linking and Arranging Functions of TLOs
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Recently…The number of experts in life sciences in TLOs is increasing.Social networks and industrial clusters in life sciences are emerging. e.g. The Kobe Medical Industry Development Project
“Saito” life science park, Osaka
More and more university-industry technology transfers in the life science area are achieved.
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Selected ReferencesAllen, T. (1977), Managing the Flow of Technology, Cambridge, MA: MIT Press.Friedman, R. A. and J. Podolny (1992), Differentiation of Boundary Spanning Roles, Administrative Science Quarterly, 37, 28-47.Hara, T. (2003), Innovation in the Pharmaceutical Industry, Cheltenham: Edward ElgarHarmon, B. et al. (1997), Mapping the University Technology Transfer Process, Journal of Business Venturing, 12, 423-434.Hughes, T. P. (1987), The Evolution of Large Technological Systems, in The Social Construction of Technological System (W. E. Bijker et al. eds) , Cambridge, MA: MIT Press, pp. 51-82.Jamison, D. B. (1984), The Importance of Boundary Spanning Roles in Strategic Decision-Making [1], Journal of Management Studies, 21(2), 131-152.Powell, W. W., K. W. Koput and L. Smith-Doerr (1996), Inter-organizational Collaboration and the Locus of Innovation, Administrative Science Quarterly, 41, 116-145.Wiesendanger, H. (2000), A History of OTL, http://otl.stanford.edu.