Support forUniversities in
Commercializing
Technologies
The Philippine Experience
By: Atty. Christopher E. Cruz, Ph.D.
March 2, 2023

The
Philippine
Economic
Context$433.2 B (nominal, 2022,IMF.org)
32nd largest economy byGDP
nominal GDP
12 largest economy in Asia
58.6% from Services (2018, DTI)
GDP per capita $3,858 (2022, IMF.org)
GDP Growth Rate 7.4% (as of Q2 2022, PSA)
Population~109 M (as of May 1, 2020, PSA
census)Developing / Emerging (2019,IMF.org)
Country Group
Lower-middle income
economy (World Bank)
Global Competitiveness 56 out of 148 (2018-2019, WEF)
Global Innovation Index

51 out of 132 (2021; one place
drop from last year)

Innovation Ecosystems• In the Research Economy, investment
into R&D leads to fundamental
technology breakthroughs.
• Breakthroughs proceed into theCommercial Economy and lead tonew products, features, or processes
that increase sales and profits.
• The increased sales and profits in theCommercial Economy are channeledback into the Research Economy (e.g.
through direct investments or taxation)
to continue the virtuous cycle ofinnovation and lead to the overall
growth of the ecosystem.
Image from the USAID STRIDE Philippines Innovation
Ecosystem Assessment 2019 Update

The Role of Universities in thePhilippine Innovation Ecosystem• The image on the right shows a frameworkused by the USAID STRIDE project to assess
the Philippine innovation ecosystem.
• Universities play a central role in theecosystem, which places “Education andHuman Capital” (the traditional purview ofuniversities) at its core.
• “Research and Knowledge Creation” – the2nd innermost layer in the model – is alsodone by universities.
• Universities also play a role in the 3rd layer inthe model: knowledge transfer to industry(e.g. through consulting work, studentinternships, and employment of university
graduates); licensing & commercialization ofuniversity intellectual property; formation ofspinoffs (e.g. formed by universityemployees) or startups (e.g. formed bystudent entrepreneurs).
• Triple-Helix Model of Innovation

Image from the USAID STRIDE Philippines Innovation
Ecosystem Assessment 2019 Update

The Triple Helix Model of Innovation (Etzkowitz and Leydesdorff)

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Triple Helix Model (2)• Emergence of Hybrid Institutions:• Technology Transfer Offices• Science Parks• Business Incubators and FabLabs• “Entrepreneurial University” (MIT)• Quadruple Helix: Society• Quintuple Helix: Environment

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Source: AUTM

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What is Technology Transfer?

What is TechnologyTransfer?
Technology transfer “encompasses avariety of activities that moveacademic discoveries into the publicsector” (Van Norman, et. al., 2017)
Technology transfer is the “process oftransferring scientific findings from one
organization to another for the purposeof further development andcommercialization” (Association ofUniversity Technology Managers)Why do universities engage intechnology transfer?
• A university’s “Third Mission”
Knowledge transfer, commercialization, andinnovation (Lambert, 2003; Laredo, 2007; Zomer &Benneworth, 2011)
Complementary to the “First” and “SecondMission” (Secundo, et. al., 2017)• The “Entrepreneurial University”
Universities that have effectively transcended
their traditional missions by advancing innovationand transferring technologies (Clark, 1998;Etzkowitz, et. al., 2000; Gibb & Hannon, 2006)

2020 Johns Hopkins
University Press
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Book is about his journey in the university technology transfer and how to develop andoperate university technology transfer officers.
“Sometimes the commercial route is the best way to deliver benefits from university
research results” (Tom Hockaday).
“University technology transfer is a commercial activity with benefits that go well beyond
the opportunity to make money” (Tom Hockaday)

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The Philippine Technology Transfer Act(Republic Act 10055)• Declaration of National Policies and Principles• “The State shall facilitate the transfer and promote the utilization of
intellectual property for the national benefit and shall call upon all
research and development institutes and/or institutions (RDIs) that
perform government-funded research and development (R&D) to takeon technology transfer as their strategic mission and to effectivelytranslate results of government-funded R&D into useful products andservices that will redound to the benefit of Filipinos, notwithstanding theincome generated from intellectual property rights (IPRs) andtechnology transfer activities.”

The Philippine Technology Transfer Act(Republic Act 10055)• Key Provisions• Ownership of IP generated from projects funded by a Government
Funding Agency shall be vested in the Research and Development
Institution (RDI) that actually performed the research.
• RDIs are responsible for identifying, protecting, and managing IPgenerated from projects funded by a Government Funding Agency• Commercialization of IP by researchers is encouraged – spinoff
formation; commercialization leaves; management of conflicts ofinterest• A Revolving fund for R&D and technology transfer is created• Use of TK, GR, TCE, indigenous knowledge is required

Innovative Startup Act(Republic Act 11337)• Philippine Startup Development Program, which has several objectives
including:• Section 5e. “Support the collaboration of startups, startup enablers,
national government agencies, local government units, public andprivate academic institutions, and industry partners to develop
innovative products, processes or business models which may beutilized in the delivery of public services, programs, or projects of hostagencies;”

Philippine Innovation Act(Republic Act 11293)• Section 13. Innovation Centers and Business Incubators• The government, through the [National Innovation Council], shall encourage
and support the establishment of innovation centers and business incubators,
in partnership with the private sector, the academe, and research anddevelopment institutions towards fostering skills and technology transfer,collaboration on innovation initiatives between small and big businesses,
supplier development, access to finance, and creating marketing opportunities.
• Section 15. Strategic Research, Development and Extension (RD&E) Programs• As part of the strategies to address the multi-dimensional nature of certain
research requirements, the [National Innovation Council] shall: (b) Establish
centers of collaborative research activity between academic and business;• Joint NEDA-DOST-DTI Adm Order: Creation of Innovation Council (2020)

Other Laws and Issuances (1)• Republic Act 10372 (IP Code amendment)• “Sec. 230. Schools and universities shall adopt intellectual property
policies that would govern the use and creation of intellectual property
with the purpose of safeguarding the intellectual creations of thelearning institution and its employees…”• IPOPHL-CHED Joint Memorandum 23 April 2008
• Encourage establishment of Technology Transfer Offices• Require State Universities and Colleges (SUC) and Higher Education
Institutions (HEI) to adopt IP policies• Magna Carta for Scientists (Republic Act 8493)• Share in royalty payments from IP commercialization for Science andTechnology Personnel.

Other Laws and Issuances (2)• Magna Carta for MSMEs (R.A. 9501, 2008)• Govt assistance• MSMED Council• Promotion for MSMEs (R.A. 10644) “Go Negosyo Act” (2013)• Startup fund fo MSMEs• Tech transfer and Marketing Assistance• MSMED Council• Data Privacy Act (R.A. 10173) (2012)• Ensuring free flow of information for innovation and growth (Sec. 2)• Philippine Development Plan 2023-2028• Advance Research and Development Technology and Innovation (Chapter 8)• Market-driven and customer-centered research and development advanced; (outcome 2)• Technology Extension, adoption, utilization and commercialization scaled up (Outomce 3)• Innovation and Entrepreneurship Accelerated (Outcome 4)

Other Laws and Issuances (3)• Industry Roadmaps (manufacturing industry, construction industry, Filipinnnovation andEntrepreneurship)• Balik-Scientist Program (DOST)• Aims to tap Filipinos abroad to strengthen S&T capabilities of local researchers inacademe and industry.
• Investment Priorities Plan 2022 (Omnibus Investments Code)• Tax incentives for SIPP (tax holidays, 5% CIT)• National Intellectual Property Strategy (IPOPHIL) (2022)• To harness intellectual property for innovation, creativity and knowledge generationfor enterprenersuship and competitiveness

The ITSO Network of the IPOPHL• A network of 100 universities, higher education institutions, RDIs
• Initially conceived to be “patent libraries”• Now also assist in IP management and commercialization

The ITSO Network of the IPOPHL• Eligible for certain assistance programs. For example, IPOPHL MC No. 2023-005:
PCT Filing Assistance Program extension; waives certain PCT fees for ITSOs• Recognized as “Innovation Centers” in the 2020 Investment Priorities Plan of theBoard of Investments. (link to story)• Receive training / capacity building opportunities• DL-101 (General Course on IP)• DL-301 (Advanced Course on Patent)• DL-318 (Advanced Course on Patent Information Search)• DL-320 (Advanced Course on the Basics of Patent Drafting)• DL-450 (Advanced Course on IP Management)• WIPO Enabling Innovation Environment (EIE)• JPO IP Rights Training Courses

DOST RITTD
Support for Spinoff
PolicyDevelopment• RA 10055 encourages spinoff formation by
university researchers. However, universities
often require guidance on managing
spinoff issues (e.g. managing revenue;
managing conflicts of interest; how to
support the spinoff)

The IMPACT Program• IP Management Program for
Academic Institutions
Commercializing Technologies.
Funding for universities and RDIs to:• Establish processes and policies ontechnology commercialization• Jumpstart commercialization ofuniversity-owned technologies throughprotection, assessment, and audit• Conduct full market assessments oftechnologies• Promote university-owned technologies• Generate licensing agreements

Technology
Business Incubators• TBIs are facilities where startups are hosted andbusiness development services are provided.
• Many TBIs are located in universities; such TBIs
naturally focus on commercializing innovations
from their own institution. Universities seeking toestablish TBIs are supported through thePCIEERD’s Higher Education Institution
Readiness for Innovation andTechnopreneurship (HEIRIT) Program.

The SUSTAIN IP-TBM
of DOST-PCAARRD• Philippine Council for Agriculture,
Aquatic and Natural Resources R&D(PCAARRD) has a program specific tothe commercialization of innovations itfunded.
• Many beneficiaries of the SUSTAIN IP-TBM
program are State Universities andColleges (SUCs).
• SUSTAIN IP-TBM is a mentorship program
wherein mentees are aided by mentors
in IP management and technology
commercialization especially ofagricultural innovations.

Knowledge and Technology
Transfer Offices (KTTO)• The establishment of KTTOs was a key initiative of therecently-completed USAID-STRIDE project.
• Many universities in the Philippines now have KTTOs –some are ITSOs with expanded functions; others are
offices separate from the ITSO.
• The USAID-STRIDE method of establishing KTTOs isused by the newly-established Alliance ofTechTransfer Professionals of the Philippines, Inc.
(AToP) in assisting new KTTOs.
• DOST continues to support KTTOs.

Collaborative R&D toLeverage the Economy(CRADLE)• Through CRADLE, a company identifies aproblem and collaborates with an HEI or RDI tofind solutions.
• The solutions are sometimes new products orservices that are then commercialized by thecompany.

Programs of the DOST-TAPI• The Technology Application and Promotion Institute has various
programs that support the commercialization of university
innovation, including:• IP Rights Assistance Program – funding for securing IP rights• TECHNICOM – support for prototyping, pilot-testing,technology validation, field testing, feasibility studies,
valuation, technology licensing• Concept prototyping program –• Venture Financing Programs for companies that adopt
technologies developed in universities (especially if DOSTfunded)Capacity Building Programs
for Developing
Commercialization Skills• Many institutions have their own programs forbuilding capacity in commercialization skills forvarious members of their communities – fromresearchers to the IP management andcommercialization personnel.
• Examples at DLSU:• CAPACITA• MIPMI (upcoming)• SMIPResearch transforms money into
knowledge … technology transfer
transforms knowledge into money.”

Conclusion:

Dr. Geoffrey Nicholson, father of the“Post-It”

De La Salle University - Manila