Vous êtes sur la page 1sur 10

World Patent Information 36 (2014) 22e31

Contents lists available at ScienceDirect

World Patent Information


journal homepage: www.elsevier.com/locate/worpatin

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

a b s t r a c t
Keywords: Higher education institutions in emerging regions of the world are increasingly expected (largely by their
Higher education governments and community) to promote regional economic development and national competitive-
Public university
ness. This case study on one of the prominent academic universities in Indonesia e Bogor Agricultural
Research
Entrepreneurialism
University (Institut Pertanian Bogor, IPB) e highlights its successes and lessons learned in managing
Intellectual property intellectual property as an entrepreneurial research-based university. This analysis of IPB provides
Innovation general and specic insights for university administrators, researchers, and policy makers, especially in
Technology commercialization emerging economies, on appropriate strategies and measures in promoting synergies between research,
Emerging economies entrepreneurialism and technology commercialization. The model provides strategies to maximize
Indonesia 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 based on an entrepreneurial, research intensive model to address


national and global challenges and opportunities.
This paper examines the programs of Bogor Agricultural Uni- This case study draws on primary and secondary data, analysis of
versity (Institut Pertanian Bogor, IPB) that support the universitys published studies, reports, and statistics, selected articles, policy
goal of becoming an entrepreneurial, research-intensive university. documents and patent databases over the four year time period of
IPB is the largest agricultural university and an important player in 2008e2012. Expert opinion was sought from public and private
Indonesias innovation systems for agriculture; it serves as a good sector intellectual property (IP) practitioners to analyze the current
case study of how Indonesias higher education institutions (HEIs) state of IPBs IP and technology management efforts and provide
are responding to regional and global challenges and opportunities. appropriate recommendations for further growth in the research
Although the management of knowledge and innovation of Asian and technology commercialization sectors. Analysis on the four Ps,
universities has been featured in many noteworthy publications, people, policies, processes, and products of IP management was
Indonesias case is of particular interest because of its current status modeled on the study of Payumo et al. [1]. Critiques of the impact of
as an emerging and booming economy. The added missions IP and patents to the mission and role of public sector institutions
imposed on Indonesian universities to support sustainable growth such as HEIs, including the suitability of policy and legislation such
and economic development are of relevance to HEIs in other as the U.S. 1980 BayheDole Act on technology transfer, as relevant to
emerging economies, which are increasingly expected to do the Indonesia, are beyond the scope of this paper.
same. Indonesias IPB has made great strides in restructuring itself

2. Higher education institutions as economic engines


* Corresponding author. International Programs, PO Box 645121, Washington
State University, Pullman, WA 99164-5121, USA. Universities have frequently been regarded as key institutions in
E-mail address: jane.payumo@wsu.edu (J.G. Payumo). processes of social and intellectual change and development. The

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


http://dx.doi.org/10.1016/j.wpi.2013.11.009
J.G. Payumo et al. / World Patent Information 36 (2014) 22e31 23

World Bank report Higher Education in Developing Countries: Peril especially in disclosing, protecting, and commercializing a univer-
and Promise [2] has further rationalized the existence of univer- sity invention [16].
sities: As knowledge becomes more important, so does higher Creating an entrepreneurial, research-based university model
education. The quality of knowledge generated within higher ed- likewise requires good IP management and technology transfer
ucation institutions, and its availability to the wider economy, is programs. The presence of IPR protection, patents for instance, for
becoming increasingly critical to national competitiveness. With university off-the-shelf technologies can help facilitate contrac-
the current focus on producing globally educated citizens, the tual transactions of intangible intellectual assets of universities
most explicit expectations of a university today regardless of social between the university and technology buyers/users, particularly
and economic conditions and geographic location are in providing the private sector, and thereby accelerate technology transfer. The
quality education, the training of the future workforce, and the primary benet of this process whether for commercial or for hu-
production of high income, skilled labor [3]. Academics and grad- manitarian uses is the exploitation of research results to benet
uates produce cutting-edge science, new ideas, knowledge, and society; other signicant benets include generation of funds from
university-based innovations that can be the major drivers of licensing fees that can be funneled back into research, IP education,
economic and social development [4e7]. 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,
2.1. Research-based to entrepreneurial universities and role of especially those working in modern biotechnology, now must un-
intellectual property derstand the IPR context in which they are conducting their
research to make sure they are not infringing the IPR of other re-
Modern technological developments, globalization and searchers and institutions [1,17e19]. Understanding the potential
increasing pressure from policy makers and funders have required for university technologies has also become critical so that re-
public universities to emphasize economic development as a fourth searchers can initiate necessary institutional strategies early in the
pillar to education, research and service. Funding agencies and process so as to not lose or compromise future IPR. IPR issues are
donors in the U.S. and in other countries are looking for and also increasingly important in establishing research partnership
demanding evidence of tangible outcomes from funded research with other institutions, locally and internationally, especially when
that can improve quality of life, create business opportunities and proprietary research materials (such as germplasm) are involved
promote economic development. Universities are now required to [17]. Increasingly, inter-institutional agreements and sponsored
transform themselves from ivory towers of scholarly pursuit to research contracts have built-in IPR provisions for ownership, ac-
entrepreneurial enterprises of innovation, knowledge transfer, and cess, and commercialization of future IP; these measures require
technology commercialization [8,9]. institutions and researchers to understand the nature of contracts
Advanced universities across North America, Europe, and and negotiable provisions, if and when needed. All these de-
recently Asia, are increasingly shifting their traditional primary velopments have required universities to implement institutional
roles in education and scholarly output to becoming entrepre- policies that address key issues, including ownership of IPR and
neurial, research-intensive university models that emphasize benet sharing in a commercialization process; strategies for and
interdisciplinary engagement, commercialization of institutional IP, management of privately sponsored research, collaborative
knowledge partnerships, and active contribution to the develop- research, conict of interest, and establishment of IP and technol-
ment of private enterprises in the local and regional economy [10]. ogy transfer ofces.
Notable US and European institutions in these efforts include:
Massachusetts Institute of Technology, Stanford University, and UC 2.2. Response and implications for developing countries
Berkeley in the U.S.; and University of Cambridge, University of
Oxford, and Imperial College, London in the U.K. [11]. In Asia, Sin- Universities in developing countries such as in Asia are also
gapores National University of Singapore (NUS), a strong partner of facing the same pressure to be more entrepreneurial and to have an
the governments Agency for Science, Technology and Research (A* enhanced role in local economic and social development through
Star) is known for its synergistic public/private activities that pro- modern approaches of expanding the commercialization of
mote the spirit of innovation and generating value from university research. A number of Asian universities (e.g. Zhejiang University,
resources through industry engagement and entrepreneurship China; Haryana Agricultural University, India; and University of the
[12,13]. The U.S.-based Association of University Technology Man- Philippines, Philippines), have taken the challenge and are now
agers (AUTM) recently reported that efforts of U.S. universities have exploring different mechanisms to replicate the widely acclaimed
resulted in increased research expenditures, intellectual property successes of research-intensive, entrepreneurial universities in the
rights (IPR) lings, commercialization agreements, and startups US and other advanced countries [1]. These universities have setup
based on university inventions (initiated as well as still in active and standardized their institutional IP policies and ownership in
business) [14]. support of their national technology transfer laws that are mostly
The 1980 US BayheDole Act (now in its 32nd year) and similar patterned after the US BayheDole Act [15]. They have also estab-
legislation are credited as the primary catalysts for increased aca- lished IP and technology transfer ofces to handle patent lings,
demic and technological entrepreneurship in U.S. and other coun- and have invested in entrepreneurial infrastructure, and services
tries [15]. These laws have enabled universities to claim title to such as business incubation spaces and research parks to support
inventions supported by government funding and for their scien- university research and entrepreneurship. Investigating initiatives
tists to participate in the commercialization of university in- of other universities to add to this list such as in Indonesia, and how
ventions. Besides national legislation, some of the factors that may these universities address the opportunities and challenges in
have contributed to the high-prole successes of entrepreneurial, becoming an entrepreneurial, research-based university is,
research-intensive universities around the world include: (1) a worthwhile.
well-funded high quality research system that encourages re- This paper focuses on Indonesias public research university
searchers to do more innovative research and generate technolo- Bogor Agricultural University (Institut Pertanian Bogor, IPB), and its
gies and products that can be used by industry; and (2) provision of efforts, challenges, opportunities, and learnings in becoming an
adequate incentives and support to encourage faculty participation entrepreneurial, research-based university to contribute to the
24 J.G. Payumo et al. / World Patent Information 36 (2014) 22e31

countrys goal of promoting innovation and global competitiveness. Table 1


The data and dynamic model used by IPB are intended to promote Basis of Indonesias IPR system [21].

better strategies and decisions among universities, especially in National laws


Indonesia, with similar social and economic conditions to accel- - Law No. 19 of July 29, 2002 on Copyright (2002)
- Law No. 14 of August 1, 2001 regarding Patents (2001)
erate their research enterprises.
- Law No. 15 of August 1, 2001, regarding Marks (2001)
- Law No. 30 of December 20, 2000 regarding Trade Secret (2000)
3. Overview of Indonesias economy, agricultural innovation, - Law No. 31 of December 20, 2000 regarding Industrial Designs (2000)
and IPR landscape - 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
Indonesia, one of the largest economies in Southeast Asia, is an
(2000)
emerging global force along with Brazil, the Russian Federation, - Government Regulation (PP) 20/2005 on Transfer of Technology of Intel-
India, and China [20]. The archipelago nation, with a population of lectual Property and Result of R&D by R&D Institutes and Universities
242 million, has a signicant gross domestic product (GDP 846.8 - PP 23/2005 on Financial Management of Public Service Agency (Badan

billion US dollars in 2011) due to strong domestic consumption and Layanan Umum, BLU).
International laws/treaties
investments exceeding the World Banks forecast (6.4 percent in - 1950 Paris Convention on Industrial Property
second quarter of 2012 versus prediction of 6.1 percent by The - 1979 WIPO Convention
World Bank). Indonesias economic activity is centered in three - 1994 Convention on Biological Diversity

major sectors: mining (especially natural gas extraction), -1997 Berne Convention on Literary and Artistic Works
- 1995 Agreement on Trade-Related Aspects of Intellectual Property
manufacturing, and agriculture. According to the Agricultural
- 1997 Patent Cooperation Treaty
Outlook 2012e2021 report by the Organization for Economic Co-
operation and Development (OECD) and the United Nations Food
and Agriculture Organization (FAO), the emerging partnerships
issued to prescribe the guidelines and regulatory framework for
between public and private sectors in Indonesia are resulting in
Geographical Indications, to provide protection for place or origin
higher productivity and improvement in the countrys national
where a good is produced. Indonesia is making efforts to be
agricultural innovation system. In 2008, the public sector received
removed from the U.S. Priority Watch List [22] and combat IPR vi-
approximately 0.08 percent of the nations GDP in research support
olations and IPR infringements to secure its trading partners.
[20]. The private sector accounts for one-fth of agricultural R&D,
To help the countrys research institutions and universities
partly because of the large plantation-based structure supporting
benet from IPR, Indonesias 2002 Law 18, National Systems for
the agricultural economy.
Research, Development, and Application of Technology mandated
Indonesia is a net importer of IP-intensive goods and has sought
the establishment of formal units for IP management with over-
to strengthen protection of IPR, a relatively new concept in the
sight of monetary and other benets of IP commercialization
country [15]. Over the years, the country has supported several
[23,24]. Recently, the government passed two other laws that will
international agreements that promote IP usage. It became a
further help HEIs in managing university IP: Government Regula-
member of the World Intellectual Property Organization (WIPO) in
tion (PP) 20/2005 on Transfer of Technology of Intellectual Prop-
1979. In 1994, it became a party to the Convention on Biological
erty and Result of R&D by R&D Institutes and Universities and PP
Diversity (CBD), which recognizes the sovereignty of countries over
23/2005 on Financial Management of Public Service Agency
their genetic resources, which can be subject to IPR. In 1995,
(Badan Layanan Umum, BLU). The rst law enabled universities to
Indonesia joined the ASEAN Framework Agreement on Intellectual
be the owners of the IP/IPR and provided more comprehensive
Property Cooperation. It also joined the World Trade Organization
roles to ofces of intellectual property and technology transfer in
in 1995 and ratied in 1996 the Trade-Related Aspects of Intellec-
facilitating protection for university IP resulting from research and
tual Property Rights (TRIPS) which sets IP standards. In 2006, it
developing commercial partnerships with industries; the second
ratied the international seed treaty, the International Treaty on
law provided guidelines on the compensation for IP and nancial
Plant Genetic Resources for Food and Agriculture (ITPGRFA), and
mechanisms for universities and public research institutions to
now implements the standard material transfer agreement (SMTA)
benet from the process. The World Intellectual Property Guide-
for the transfer and exchange of biological and genetic resources.
lines on Developing IP Policy for Universities and R&D Organiza-
Indonesia has promulgated several national legislation initia-
tions and the U.S. 1980 BayheDole Act (1980 University and Small
tives parallel to these international treaties and agreements
Business Patent Procedures Act) are believed to have inspired the
(Table 1 presents the summary of national IP legislation and
establishment of these laws in Indonesia.
membership of Indonesia in international IPR agreements) and
Patent applications, granted patents, and trademark applica-
updated its IPR laws on patent, utility model, industrial design,
tions for Indonesia have steadily grown through the years (1997e
copyright and related rights, and trademark. Indonesia currently
2011) with the majority coming from nonresident applicants [25].
has seven laws [21] concerning IPR, with patents, trademarks,
The Derwent World Patent Index 2013 released in September that
copyright, industrial design, and plant variety protection (PVP) as
year, however, reported that nearly 55% of the countrys total pat-
the type of IPR protection most relevant to agriculture. A pertinent
ents in 2012 were awarded to Indonesias own citizens rather than
provision of Indonesias patent legislation relates to the patent-
foreigners applying for patents locally [26].
ability of life forms, which specically excludes the patenting of all
living plant varieties, animal breeds and essentially biological
processes for the production of plants and animals but allows 4. Case study: Bogor Agricultural University - at the heart of
patenting of microorganisms, non-biological and microbiological Indonesias agricultural R&D system for nation-building
processes. In response to TRIPS, the country also enacted the 2000
Plant Variety Protection Law (Law No. 29), patterned after the In- Founded in 1963, Bogor Agricultural University (IPB) located in
ternational Union for the Protection of New Varieties of Plants Bogor (about 60 km from the capital city, Jakarta), is the pioneer
(UPOV), which provides sui generis (of its own kind) system pro- institution for agricultural higher education in Indonesia and a
tection for plants and gives rights to breeders. Indonesia is not a major educational and scientic center in Bogor. The university
member of the UPOV. In 2007, Government Regulation No. 51 was fullls its Tri Dharma Perguruan Tinggi (Three Pillars of National
J.G. Payumo et al. / World Patent Information 36 (2014) 22e31 25

Higher Education) mission in education, research, and community 2012: Rp 107 billion) from the Indonesian government [29] and
empowerment; and has played a crucial role in the development of various sources to support research and improvements to facilities
the countrys agriculture, the backbone of Indonesias economy and infrastructure (laboratories, information systems, and experi-
which contributes roughly 15% to the nations GDP. IPB has pro- mental research farms). The research agenda at IPB has also
vided educational opportunities for Indonesians through graduates expanded in renewable-resources, bio- sciences, health, indigenous
with specialist knowledge and skills and providing refresher agri- knowledge and technology, food quality control and food safety,
cultural education programs for lecturers from the nations uni- genetic resources, genetic engineering and breeding, conservation
versities and others, and local employment opportunities. The and the environment, social welfare, economic affairs and culture,
university has also advised on national agricultural policy and plays biophysics, mechanics and equipment, management information
an important role in the development of science and technology and technology. IPBs research thrusts align well with Indonesias
(S&T) policies to support economic growth. IPB is now growing into medium-term national development goals for 2015e2019 [30].
a comprehensive, innovative institution for higher education in These investments have resulted to improvement of IPBs IP port-
natural resources-based development making it an important folio in many areas including agriculture, biotechnology, clean
player in nation building and helping increase Indonesias technologies, engineering, instrumentation, and food and health.
competitiveness [27]. Institutional mechanisms have also been placed to appropriately
manage research results, whether shared in the public domain or
4.1. Academic autonomy and pursuit of relevance: structuring a protected, marketed, or licensed to third parties for commercial
paradigm shift at IPB purposes, or technology entrepreneurship.
IPB has collaborations with about 200 institutions from 32
With its autonomous status approved in 2000, through Gov- countries focused on research partnerships and student internships
ernment Regulation (PP No. 154/2000) and full implementation in in areas such as organic agriculture farming, tropical rain forest,
2005, IPB formally changed to become a public legal entity uni- food safety, quality, and nutrition, plant biotechnology, tropical
versity and adopted the market or private model approach in fruits and vegetables, integrated pest management, engineering
higher education management. The use of the market model en- application in tropical agriculture, biofuels, and primatology.
ables universities to manage assets for academic excellence, Countries 32.
entrepreneurial purposes and other chosen purposes, and improve
the universitys relevance and ability to respond to market and 4.2. Managing innovation, partnerships, and technology
social needs [28]. This autonomy paved the way for improved entrepreneurship e challenges and opportunities for expansion
institutional governance, including the creation of a Board of
Trustees and an academic senate, the use of auditors, the stream- Even before IPBs autonomous status in 2000, the University had
lining of the universitys organization, including reforms, and already established the Ofce of IPR and Publications, OIP, to
strategic portfolio analyses by all university units. manage technologies and innovations coming out of university
IPB has reorganized its organizational structure and its aca- research as done at its peer Indonesian institutions such as the
demic and administrative units in education, research, and com- University of Indonesia, Bandung Institute of Technology, and
munity services into cross-functional units: 9 faculties/colleges Gadjah Mada University [1]. Established in 1999, OIP is under the
(previously 7 before autonomy status), 36 departments, and 30 Directorate of Research and Strategic Issue Studies (DRSIS), the lead
research centers. The 9 faculties provide undergraduate programs, unit in formulating IPBs research agenda. OIP continues to coor-
while the graduate school, the rst in Indonesia, manage the uni- dinate the administration of university technologies for deploy-
versitys graduate and postgraduate programs. The 9 faculties ment in the public domain; dissemination to the scientic
include: Agriculture, Veterinary Medicine, Marine Sciences and community is done via non-commercial mechanisms including
Fisheries, Animal Husbandry, Forestry, Agricultural Technology, teaching, seminars, trainings, publications, and community
Mathematics and Natural Sciences, Economics and Management, engagement. OIP also coordinates management of university
and Human Ecology. Its faculty academics currently total more than technology that will be protected, and manages a database of IPBs
1200 (accounting for almost one-third of Indonesias researchers in research, IPR, and publications.
higher education [29]) with supporting staff of more than 1600. In the early years at IPB, OIP did not have the legal mandate to
More than 60% of IPBs faculty hold PhD degree and were trained in manage the monetary benets resulting from technology transfer
advanced institutions in the U.S., Europe, Japan, and Australia. In activities. This resulted in the unit pursuing only IPR protection,
2012, these faculties served a student population of almost 25,000 accumulating patents and signing of licensing agreements but with
with 21% graduate students participating in some level of univer- no monetary benets coming back to IPB, the unit, and the faculty.
sity research (1201 PhD and 4067 Masters). OIP also faced additional challenges including: (1) limited number
The status change also prompted a new vision for IPB to increase of IP management staff with requisite technology transfer and
its research performance and community services and to be a marketing skills and professional knowledge. Limited manpower
world class research-based university with core competence in resulted in delayed responses and coordination with internal units
tropical agriculture and biosciences, characterized with entrepre- (research centers, business units, and administration) and external
neur values. For IPB, an entrepreneurial, research-based university partners; (2) limited competency and knowledge among re-
signied a university with good quality academic staff representing searchers in the importance of protecting and commercializing
different disciplines, good lab equipment, facilities and ventures, research results. The lack of institutional policy on IP ownership
large area for farm studies, a number of research centers, well and benet-sharing made faculty and staff less engaged on the
recognized community service, close linkage with the government technology transfer process; and (3) research results that were at
and private sector, international linkages and cooperation with the laboratory level as new, untested ndings with no prototype
other institutions of higher education locally and globally, and information; these generally did not address industry needs and
many potential activities for revenue generation [27]. represented high investment risk for technology buyers which
Institutional capacity building to support different research made it difcult for OIP to market university IP. IPBs technology
disciplines is also a priority with increasing research expenditures transfer efforts were also affected by the external environment
in the last three years (2010: Rp 8 billion; 2011: Rp 100 billion; and including lack of condence from businesses and other
26 J.G. Payumo et al. / World Patent Information 36 (2014) 22e31

stakeholders in Indonesia, limited venture capital, weak networks obtaining patents, registering copyrights, and signing appropriate
between investors, industries, intermediary institutions, as well as legal assignment documents.
poor infrastructure nancing. These challenges not unique to IPB
and are also faced by institutions in other countries as noted in 4.2.1.2. Protection, commercialization, and benet-sharing. The
earlier studies done by various authors, including Higgins [31] and policy also emphasizes the importance of managing public disclo-
Aiman [32]. sures or publications to ensure that the university can comply with
With the designation of autonomy status and the enactment of the requirements of IPR protection and not compromise protection
national laws related to IP and technology transfer for HEIs, IPB has and commercialization activities. IPB employees are obliged to
implemented many changes to help address these challenges and notify OIP of potential publications related to the IP or invention.
improve the universitys performance in managing university IP Disclosure of inventions to the public is a critical element in
and innovation: (see Fig. 1 for IPBs timeline of IP management determining whether an invention is patentable or not. Under
activities). Indonesian patent law, newness, non-obviousness, and industrial
application are the three requirements for an invention to be
4.2.1. IPBs IP guidelines patentable. In addition, patents and other form of IPR can be used
In 2004, IPB institutionalized two guidelines to further manage by IPB faculty and staff as incentives including career promotion.
intellectual property and IPR generated by its faculty and staff: To support the above steps, IPB has institutionalized a process to
Rector Decree 136/K.13/PG/2004: Intellectual Property Rights determine when a researchers nding will be protected and
Guideline in Three Pillars of Higher Education Collaboration Ac- licensed or commercialized (see Fig. 2). The process includes an
tivities in Bogor Agricultural University; and Rector Decree 209/ assessment of the business feasibility of any invention before
K.13/PG/2004: Intellectual Property and Intellectual Property incurring the expense of patenting. All IP not passing the rst
Rights Management Guideline in Bogor Agricultural University assessment of business feasibility is relegated to the inventor for
[33,34]. The former provides guidelines on how to regulate intel- further development or self-commercialization. On the other hand,
lectual property rights of collaborative undertakings by IPB and ndings with market potential are rapidly promoted with the pri-
other institutions (public or private, local and abroad); the latter vate sector. When a commercial partner is identied, the IP is sold,
denes guidelines to regulate IP/IPR implementation, establishing licensed, and/or used to setup a new venture, joint venture or other
university ownership, and assessing factors that will affect pro- entrepreneurial arrangement. IPBs employees and students
tection, commercialization and benet-sharing. involved in the invention are entitled to share in revenues gener-
ated by successful commercialization of the IP. IPBs revenue
4.2.1.1. Ownership. IPBs IP policy emphasizes university owner- sharing plan regardless of estimated value is xed at 40% for the
ship of IP generated by its employees and students receiving full inventor; 40% for the university; and 20% for the department or
funding by IPB and using university resources. It also asserts research unit.
ownership of IP developed by employees and students funded, With the increasing participation of IPBs graduate students in
partially or fully, by outside agencies, unless stipulated in a the overall framework of IPBs R&D, a separate Rector Decree 180/
collaborative agreement. IPB employees and students (as the in- K13/PG/2005 was issued in 2005 to provide for policies and pro-
ventors and creators of the IP), are thus obliged to disclose any IP cedures for research done by students. This decree, thought to be
and inventions that may have potential for commercial utilization, the rst of its kind reported for a developing country, expanded
in which IPB has an interest, whether done through collaborative, IPBs IP policy to graduate students working with IPB faculty. It
sponsored, consulting agreement, without any sponsor, or funding highlights the need for research notebooks and record keeping,
from IPB. Employees are also obliged to assist the university in ownership of IP using university resources, acknowledgment of a

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


J.G. Payumo et al. / World Patent Information 36 (2014) 22e31 27

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

students rights to IP if they contributed to its development, and classied as researchers, 5 as lecturers, and 7 as students and
their entitlement to commercialization benets. alumni. Patent and trademark applications, with many already
awarded to the university, also showed growth increasing 12.92%
per year for the period 2008e2011 (see Fig. 3). The university IPR
4.2.2. Capacity building efforts
have largely been in the agricultural sector and have been licensed
To facilitate organizational restructuring, IPB from 2006 to 2007
to several private companies or are being commercialized by uni-
concentrated in training its faculty, staff and students on IPBs new
versity spin-off companies (See Table 2 for examples). In 2012, IPB
IP policy and framework. Several in-house training programs were
also received a recognition award from the Vice President of the
conducted on the basics of IPR, prior art search, patent drafting, and
Republic of Indonesia commending IPB as the university with the
conducting IP audits. With increasing focus on commercialization,
most patent applications and granted patents in Indonesia for ve
OIP in 2008 began expanding its IP management and technology
consecutive years. These numbers contributed signicantly to the
transfer program on recruiting additional personnel to prepare
increase of Indonesias own citizens applying for patents locally,
patent applications and market IPBs technologies for commer-
which in 2012 almost equaled foreign applications [26]. In 2012,
cialization. OIPs current stafng includes an in-house patent law-
IPBs licensing and commercialization projects exceeded 179, rep-
yer, and ve full time staff including a deputy director, two
resenting a ve-fold increase since 2008.
coordinators (administration of IPR and publications; IPR and
database); and two technology marketing personnel supporting
IPBs IP management and technology transfer activities. OIP staff 4.2.3. Networks and strategic partners
work closely with faculty, monitor publication timelines, and From 2010 to 2011, IPB focused on establishing strategic part-
develop strategies for ling patents, studying the inventions value nerships with intermediary institutions (e.g. National Innovation
versus cost, evaluating market potential and identifying licensing Committee, Business Innovation Center-BIC, Science Techno Park-
partners, domestic and international. An internal survey conducted STP, Puspiptek Serpong, and Business Technology Center-BTC).
in March 2013 revealed that IPB faculty members nd OIP to be OIP also works closely with IPBs Directorate of Business and
very effective in helping faculty members with intellectual prop- Partnership (DBP) under the Vice Rector for Business and
erty, the process of IP ownership, technology transfer, patenting, Communication, and the Research Center for Entrepreneurship and
and licensing. Empowerment (RCEE) under the Institute of Research and Com-
Various seminars and workshops were also done encouraging munity Empowerment. DBP is responsible for drafting and devel-
faculty to identify and disclose inventions that are developed oping resource management activities, and promoting science and
through university funds for IPR protection, licensing, and tech- technology related projects aligned with IPBs business develop-
nology commercialization. Since 2009e2010, IPB utilized IPBs ment and partnerships with government, private sector, and other
technology and agribusiness incubators to encourage technology groups. DBP, on behalf of the University, also formalizes the
entrepreneurship among faculty, students, and alumni, establish licensing agreements with a private company (the licensee) while
and run university spinoffs for local business development. OIP has OIP implements and monitors the agreement, including distribu-
organized educational informational, business and technology tion of royalty benets to the relevant department/research unit
events and expositions to market its technologies and encourage involved and the inventor. RCEE complements these activities by
more faculty, staff, and students to be entrepreneurs. working with micro, small and medium agricultural enterprises
All above efforts resulted in IPBs faculty members and re- and managing the universitys business incubators e.g. Incubators
searchers receiving the Extraordinary Intellectual Property Award Agribusiness and Agro-Industry, which collaboratively provide the
for technology, plant varieties, and science categories from the core infrastructure and integrated support for technology
Government of Indonesia; of the 21 recipients for 2009, 9 were commercialization at IPB (typically for three years). This tripartite
28 J.G. Payumo et al. / World Patent Information 36 (2014) 22e31

Fig. 3. IPBs IPR portfolio. (2008e2011).

approach ensures that resources are efciently used, R&D is coor- 5. Analysis, conclusion, and recommendations
dinated and aligned with university priorities and the university is
on-course to achieve its goal of being a research- and This paper presents the history, strategies and lessons learned
entrepreneurial-based institution. from IPB in its goal of becoming an entrepreneurial, research-based
IPB also works very closely with Indonesias Directorate General university e an emerging model for higher-education institutions
of Intellectual Property Rights (Direktorat Jenderal Hak Kekayaan in emerging economies to better interface core missions in edu-
Intelectual), which administers the Indonesias IP system and spe- cation and research with societal benets. Specically, this case
cically in talks with the Patent Ofce (Direktorat Jenderal Hak study focused on how IPB exploits intellectual property and crea-
Kekayaan Intelektual) to understand the process of securing patent tive ideas, creates new learning by partnership with internal and
protection for university technologies abroad and possibly external stakeholders, and how the university contributes to local
expanding market reach of the university. IPB also continues to economic and social development. IPBs case further demonstrates
strengthen its relationships with the private sector not only as a that pursuing the goal of becoming an entrepreneurial, research-
partner in delivering technologies to market but also as a partner in based university requires a national legal framework, research
building the necessary infrastructure to further promote research budget, and backed with the right mix of: Policies, People, Pro-
and agricultural development (e.g. the oil palm teaching farm with cesses, and Products. IPB has made good progress in supporting
Cargill, located in the Jonggol sub-district of Bogor). Partnerships academic research and management of university technologies,
with foreign institutions (e.g. Washington State University) and creating a professional model for emulation by other institutions.
international donors (e.g. United States Agency for International
Development) are deliberately pursued to support IPBs interna- 5.1. Policies
tionalization agenda, strengthen the universitys network, bench-
mark its practices, and enhance its resources for institutional and IPBs medium and long-term development plan supports in-
human capacity building in managing university technologies. vestment in research to enable the university to reach its vision of

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

Invention Patent number Institution Remarks Mechanism of technology


transfer

Machine for dividing of wood ID P 0029402 Departement of Forestry Cooperation with Business cooperation
construction Product, Faculty of Forestry, IPB Private Company
CV. Cakra Mulya
Instant noodle from corn ID P 0028637, Southeast Asia Food and e Start up business
ID P 0032895, Agriculture Science and
P00201000633, Technology Center, IPB
P00201000634
Production of catsh our P00201000605 Department of Family and Cooperation with Start up business
Consumer Sciences, Faculty of Inotek Foundation
Human Ecology, IPB
Seed (papaya, melon, chilli, Plant variety Research Center for Tropical Spin off
mangosteen) registration Fruit Studies, IPB
Biofertilizer (Probio) Trade secret Department of Soil Science and Will be applied at Spin off
Land Resources, Faculty of national level by
Agriculture & Center for Environmental Innovation National
Research, IPB Committee
Avian inuenza vaccine Patent by PT Shigeta Faculty of Veterinary Medicine, IPB Joint Venture IPB Business cooperation
(Reverse Genetic Technology) Shigeta Enterprise
Fry counter (Seed Fish P00200300627 Faculty of Marine Sciences and Spin off
Counters with Fisheries, IPB
Speed and High Accuracy)
Extracts dignity barito P00200100385 Biopharmaca Research Center, IPB Start up business
(Ficus deltoidea)
Antitumor Efcacious
J.G. Payumo et al. / World Patent Information 36 (2014) 22e31 29

becoming a research-based, entrepreneurial university. IPB has also efforts are still relatively recent and new with several areas for
set the institutional framework to allow technology commerciali- improvement and below are some suggested areas that the uni-
zation of research results and link its integrated missions in educa- versity can look into.
tion, research, and economic and societal benets. Communicated
both inside and outside the institution, IPBs policy provides ar- 5.5. Avoiding the patent number trap
rangements for IP ownership, sharing any returns from commer-
cialization of IP, recognizes the range of IP activities of the university, Patenting of university inventions has been the indicator of the
and displays a balance of engaging in IP work for reputational involvement of universities in technology commercialization ac-
benet, for positive social and economic impact, and for scal tivities, beyond the traditional role of research and teaching. The
returns. Recently, the university transitioned to a more student- number of patent applications and granted patents for IPB con-
friendly policy which reects the universitys commitment to tinues to increase through the years; now IPB is considering
equitable policies and its recognition that graduate students have a seeking international protection in foreign markets. The increase in
voice and are IPBs partners in the research enterprise. Such patent numbers, whether for domestic or international patents,
recognition provides students with favorable impressions of the however, does not necessarily indicate that IPBs innovation out-
university, encourages entrepreneurialism, and provides public- puts are contributing to economic growth [36]. Patenting university
private sector experiences and connections when they join the technologies is not an end in itself; university patents need li-
workforce. censees to complete the commercialization process. IPB needs to be
careful on this patent numbers trap and make sure that OIP is
5.2. People proactively nding strategic ways to market and commercialize
them. Publishing patents is one of the ways of IPB faculty to gain
IPB has demonstrated in-house capability of managing univer- credits for job promotion and increased salary. The university needs
sity IP from handling and reviewing invention disclosures, mar- to consider providing more credits to faculty if the technology is
keting, executing licensing agreements with commercial partners, commercialized; this way, faculty is encouraged not only to publish
and forming spin-off companies. The overall IPB team is also patents but to develop technologies with commercial value and
growing. The team managing the university technologies has staff them actively participating in the technology commercialization
with full-time appointments and interdisciplinary expertise process.
including research managers and entrepreneurs. Full-time ap-
pointments enhance institutional and individual commitment and 5.6. Expansion of technology commercialization and
staff productivity resulting in sustainability and credibility within entrepreneurship programs
the institution and with external stakeholders [35]. Besides having
full-time appointments, IPBs technology transfer unit is manned The university needs to promote its success stories on food and
with experts from different technical disciplines thereby combining herbal products and build on this platform to commercialize other
a mix of technical knowledge with economic, management- university technologies such as those produced by biotechnologies
oriented, and legal knowledge to ensure smooth transition from and veterinary health science, the universitys two big areas of
laboratory research products to the eld or to retail shelves. IPBs research competence. Local private enterprises are emerging at a
senior administration, relevant ofces, faculty, and staff remain fast pace in the country and OIP will have to strengthen industry
committed and engaged with the growth and dynamics of the IP research connections and integrate with this group to help
property arena. commercialize university research products. It should be noted, too,
that IP management and technology commercialization should not
5.3. Processes just be narrowly based on institutional licensing revenues but
should also be focused on resulting impacts on the economy, in-
University inventions meeting the criteria of patentability dustryeuniversity relations, and formation of new start up com-
should not be encouraged without sufcient evaluation. IPB has panies. Student entrepreneurship should also be monitored and
initiated a protocol to evaluate the marketability and commercial documented whether student-formed companies have resulted
value of any invention before the university invests in resources to from university technologies, and determine whether these com-
le and execute patents. Mandating good record keeping and panies are contributing to IPBs entrepreneurial community and
laboratory notebooks among its faculty and students further Bogors local development. IPB can maximize existing international
support IPBs IP program and is being advocated throughout the research partnerships with its global university partners such as
institution. land-grant U.S. institutions like Washington State University, which
has wide experience in managing university IP and technology
5.4. Products commercialization in US and in larger markets, and identify best
practices in IP protection, marketing, technology transfer and
The university is uncovering a niche in knowledge creation entrepreneurship.
based on indigenous and local innovations and are now beneting
Bogor and its neighboring communities. Sales of IPBs trademark- 5.7. Continuing investments
registered natural-based, herbal and fast food products (e.g. noo-
dles) are increasing. Local consumers are increasingly patronizing Promoting an integrated entrepreneurial, research-based
university stores and in many instances, local demand is exceeding climate within a public university is a long-term commitment. US
supply. universities that are successful in this goal took a number of years
IPB is slowly moving down the learning curve and realizing that to institutionalize these processes into a sufcient and sustainable
supporting academic entrepreneurship and innovation can be level. IPB, hence, needs to continue investing in pursuing more
challenging at rst but rewarding. IPBs early successes are in- quality research that would result to: technologies and inventions,
dications of future returns, and the university may be well on the research publications, industryeuniversity relations, and new
path to harvesting the advantages of managing university intel- businesses. A sound IP management and technology commerciali-
lectual property toward becoming a model for emulation. IPBs zation program for an entrepreneurial university will also depend
30 J.G. Payumo et al. / World Patent Information 36 (2014) 22e31

on continuing support from the management, faculty, staff, and [10] Etzkowitz H, Leydesdorff L. The dynamics of innovation: from national sys-
tems and Mode 2 to a triple helix of university-industry-government re-
students. IPBs Ofce of Intellectual Property need to constantly
lations. Res Pol 2000;29:109e23.
budget activities for IP education and dissemination of IPBs IP [11] Graham R. Technology innovation ecosystem benchmarking study: key nd-
management programs at all ranks within the institution so they ings from phase 1. Cambridge, Massachusetts: MIT Skoltech Initiative; 2011.
understand fully the benets and tradeoffs of these processes [12] National University of Singapore. NUS enterprise: national University of
Singapore. Retrieved from National University of Singapore Web site: http://
needed to reach universitys vision of becoming a research-based, www.nus.edu.sg/enterprise/careers/index.html; 2013, January 16.
entrepreneurial university. The current knowledge level of IP and [13] Nezu R, Chou Siaw K, Ganguli P, Nishio K, Tansinsin L, Hwa-Chom Y, et al.
technology commercialization awareness among faculty, staff, and Technology transfer, intellectual property, and effective university-industry
partnerships: the experience of China, India, Japan, Philippines, the Republic
students should be also assessed regularly so as to identify gaps and of Korea, Singapore, and Thailand. Geneva, Switzerland: World Intellectual
training needs on up-to-date IP regime developments such as Property Organization; 2007.
material exchange and IP instruments (especially on conicts of [14] AUTM. FY 2010 AUTM US licensing activity survey. Deereld, IL: AUTM; 2011.
[15] Graff G. Echoes of Bayh-Dole? A survey of IP and technology transfer policies
interest). in emerging and development economies. In: Intellectual property manage-
ment in health and agricultural innovation. Oxford, UK; Davis, USA: MIHR;
PIPRA; 2007. pp. 169e95.
5.8. IP policy not set in stone [16] Heher AD. Benchmarking of technology transfer ofces and what it means for
developing countries. In: Krattiger A, Mahoney RT, Nelsen L, Thomson J,
Bennett A, Satyanarayana K, et al., editors. Intellectual property management in
IP policies and programs will continue to be a key factor in health and agricultural innovation: a handbook of best practices. Oxford, UK;
establishing research relationships especially for international Davis, USA: MIHR; PIPRA; 2007. pp. 207e28.
[17] Payumo J. Licensing agricultural intellectual property: how should public R&D
collaboration [37]. IPBs IPR policy is important in helping manage
institutions in developing countries respond? Intellect J Innov Technol Manag
the universitys intellectual capital and partnerships and will help 2012;9(4):1250028e40.
dene its position in the international order. IPB should, however, [18] Maredia K, Erbisch F, Ives C, Fischer A. Technology transfer and licensing of agri-
take note that IP policies may need some exibility to address cultural biotechnologies in the international arena. AgbiotechNet; 1999. pp. 1e7.
[19] Van Wijk JC, Komen J. Intellectual property rights for agricultural biotech-
current needs of the institution and adjust to national and inter- nology. Options and implications for developing countries. The Hague: In-
national developments. This will require continuing review of its ternational Service for National Agricultural Research; 1993.
policies and education of faculty, staff, students, and even domestic [20] World Bank. Indonesia overview. The World Bank; 2012, August 12. Retrieved
from World Bank Web site: http://www.worldbank.org/en/country/
and international collaborators. indonesia/overview.
Overall, the strategic decisions, success stories, lessons learned, [21] World Intellectual Property Organization (WIPO). WIPO Lex. WIPO; 2012,
and opportunities for improvement for Bogor Agricultural Univer- August 30. Retrieved from WIPO Web site: http://wipo.int/wipolex/en/.
[22] Ofce of United States Trade Representative, 2012, 2012 Special 301 Report,
sity are a useful reference for other institutions intent on creating Washington, DC: Ofce of the United States Trade Representative.
similar growth trajectories in university research wedded to [23] United Nations Educational, Scientic and Cultural Organization (UNESCO).
entrepreneurship and technology commercialization. The approach Portal: UNESCO. Retrieved from UNESCO Web site: http://portal.unesco.org/
pv_obj_cache/pv_obj_id_C74B5BE23B9439279E9C04C2F80B90867DF30200/
is also an effective mechanism for keeping higher education in- lename/Indonesia.pdf; 2008, January 09.
stitutions relevant to current day national priorities, ensuring that [24] Centre for Research on Science and Technology, University of Stellenbosch, Institute
basic research is translated for effective use and public benet, for Research on Development. Mapping research systems in developing countriese
country report: the science and technology system in Indonesia. South Africa;
providing the potential for income, incentivizing staff and their
France: UNESCO Forum for Higher Education, Research, and Knowledge; 2009.
level of productivity, and furthering research output and outreach [25] World Intellectual Property Organization. Statistical country proles. WIPO;
opportunities. Research universities like IPB and other universities 2013, November 3. Retrieved from WIPO Web site: http://www.wipo.int/
need to proactively develop mechanisms to facilitate the ow of ipstats/en/statistics/country_prole/countries/id.html.
[26] Thomson Reuters. ). The research and innovation performance of the G20 and
knowledge and technologies generated by research and supported its impact on decisions made by the worlds most inuential economic
by public funds for societal benet. The time has come for these leaders; 2013. pp. 1e45.
research universities to embrace the mandate for entrepreneurial [27] Chozin M. An introduction to Bogor agricultural university. In: First international
symposium food production and environmental conservation in East Asia held
dimensions to leverage academic research, intellectual property on September 13e15, 2005 at the faculty of agriculture, Niigata University.
and innovation, and make entrepreneurship an important fabric of Niigata: Niigata University; 2005. pp. 155e9. http://www.agr.niigata-u.ac.jp.
the institution. [28] Susanti D. Privatisation and marketization of higher education in Indonesia: the
challenge for equal access and academic values. Higher Educ 2011;61(2):209e18.
[29] Stads G-J, Haryono, Nurjayanti S. Agricultural R&D in Indonesia. Washington
DC; Jakarta: International Food Policy Research Institute; Indonesian Agency
References for Agricultural Research and Development; 2007.
[30] Asia Pacic Economic Cooperation. Indonesias structural reform priorities:
[1] Payumo J, Gang Z, Pulumbarit E, Jones K, Grimes H. Managing intellectual submitted by Indonesia. Retrieved from APEC website: http://aimp.apec.org/
property and technology commercialization: comparison and analysis of Documents/2011/SOM/WKSP/11_som_wksp_009.pdf; 2011, August 10e11.
practices, success stories and lessons learned from public research universities [31] Higgins R. Commercialization of public sector R&D: results, opportunities, and
in developing Asia. Innovat Manag Pol Pract J 2012;14(4):391e432. challenges. Tech Monitor; 2001. pp. 15e22.
[2] The World Bank. Higher education in developing countries: peril and promise. [32] Dhewanto W, Umam KK. Technology commercialization in developing
Washington, DC: The World Bank; 2000. country: current condition and its challenges in Indonesia. Asian J Technol
[3] Brennan J, King R, Lebeau Y. The role of universities in the transformation of Manag 2009;2(1):1e7.
societies: an international research report. London: Association of Common- [33] Bogor Agricultural University. Guidelines arrangement of intellectual property
wealth Universities; Centre for Higher Education Research and Information; rights associate with Tri Dharama collaboration activities. Number 136/K13/
2004. PG/2004. Decree of Rector of Bogor Agricultural University; 2004. pp. 1e7.
[4] Schultz T. Investment in human capital. New York: The Free Press; 1971. [34] Bogor Agricultural University. Intellectual property and intellectual property
[5] Sakamota A, Powers P. Education and the dual labour market for Japanese rights management guideline in Bogor agricultural university. Number: 209/
men. Am Sociol Rev 1995;60(2):222e46. K13/PG/2004. Decree of Rector of Bogor Agricultural University; 2004. pp. 1e11.
[6] Psacharopoulos G, Woodhall M. Education for development; an analysis of [35] Bland C, Center B, Finstad D, Risbey K, Staples J. The impact of appointment
investment choise. New York: Oxford University Press; 1997. type on the productivity and commitment of full-time faculty in research and
[7] Vandenbenbussche J, Aghion P, Meghir C. Growth, distance to frontiers, and doctoral institutions. J Higher Educ 2006:89e123.
composition of human capital. London: Center for Economic Policy Research; [36] SciDevNet. SciDevNets South-East Asia and Pacic. Retrieved from SciDevNet
2005. Web site: http://www.scidev.net/asia-pacic/innovation/news/indonesia-
[8] Etzkowitz H. Research groups as Quasi-Firms. The invention of the entre- excels-in-patents-from-local-scientists.html; 2013, July 10.
preneurial university. Res Pol 2003;32:109e21. [37] Kok J. The internationalization of universities through the management of
[9] Etzkowitz H, Webster A, Gebhart C, Terra B. The future of university and the their intellectual capital. In: Proceedings of the 6th international conference of
university of future: evolution of Ivory Tower to entrepreneurial paradigm. the faculty of management Koper congress, Centre Bernardin, Slovenia,
Res Pol 2000;29(2):313e30. November 24e26, 2005 2005.
J.G. Payumo et al. / World Patent Information 36 (2014) 22e31 31

Dr. Jane G. Payumo is a research associate at Washington Dr. Iskandar Z Siregar is a professor at IPBs Department of
State Universitys (WSU) Ofce of International Programs Silviculture, Faculty of Forestry. Currently, he serves also as
and helps WSU increase, monitor, and measure outcome of Director for IPBs Research and Innovation, which helps IPB
the universitys international collaborations. She has manages research agenda, publication, intellectual property
technical, managerial, and policy expertise, in the area of rights and innovation. His research interests are population
plant biotechnology, grant development, intellectual genetics of forest trees, molecular genetics of forest Plants,
property rights (IPR) management, and international conservation and sustainable management of tropical for-
research. She has handled patent, trademark, and copy- est genetic resources, forest tree improvement, forest
right cases while she was an IPR specialist at Philippine adaptation and genetics in silviculture. He received his PhD
Rice Research Institute, and licensing assistant at WSUs from University of Gttingen, Germany.
Ofce of Intellectual Property Administration from 2004 to
2012. She obtained her interdisciplinary PhD from Wash-
ington State University.

Dr. Prema Arasu is CEO and Vice Provost at Kansas State Dr. Deni Noviana is deputy director of IPBs Directorate of
University-Olathe campus in the greater Kansas City area. Research and Innovation and associate professor at IPBs
She previously served at Washington State University as Faculty of Veterinary Medicine. He helps manage the IPBs
Vice Provost of International Programs and at North Car- intellectual property rights and help run IPBs technology
olina State University for 15 years where she held various transfer ofce. He was joined several national and inter-
positions including Professor in the Department of Molec- national IPR and technology transfer management training
ular Biomedical Sciences, Director for Global Health Initia- course. He received his PhD from the United Graduate
tives, Director for Comparative Biomedical Sciences School of Veterinary Science, Yamaguchi University, Japan.
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.

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
(2003e2007) and was a lecturer in this faculty since 1985.
He received his PhD from Kent University, U.K.