| As nations try to emerge from the most devastating | | | | world because of the number of technologies which |
| global recession since the Second World War, | | | | have been commercialized and subsequently |
| policymakers, business communities, academia, and | | | | penetrated across the globe. The discovery of the |
| governments will be looking at ways to accelerate | | | | search engine that powers Google was done in |
| growth and competitiveness. Many at the right will | | | | Stanford University. When Mr. Page and Mr. Brin |
| continue their propositions that governments should | | | | decided to pursue commercialization of this algorithm |
| be left out of business, while those at the left will | | | | and created Google, they must have been grateful |
| emphasize that governments must play central roles | | | | for the federal funds that partly funded their |
| in shaping commerce and industry. | | | | discovery. |
| The reality is that governments do matter and a | | | | In a recent trip to Africa, I noticed that many |
| single legislation could have impacts that can redesign | | | | universities now have Technology Transfer offices or |
| a nation's economic destiny. Globalization makes it so | | | | what they call Consults. Good idea, but I must say |
| important that nations must compete not just on | | | | that the structure where those offices operate is |
| technologies, but on policies upon which those | | | | entirely different from what Bayh-Dole Act gave the |
| technologies are developed and commercialized. | | | | American schools. The Act is helping American |
| This makes it possible that two universities in two | | | | taxpayers to reap the benefits of funding the |
| separate nations can develop similar technologies with | | | | academic institutions through innovative products in |
| one creating Fortune 500 companies within a decade | | | | the market. In Africa, you rarely see government in |
| and another having the idea locked up in a cabinet. In | | | | the mix of research and the whole constructs of |
| other words, the policies or legislations made by | | | | technology transfer office seems superfluous since |
| congress or parliament on what happens to | | | | no research takes place. |
| inventions supported by government funds matter. | | | | It is one of those things that happen when African |
| In 1980, a United States legislation dealing with | | | | professors visit American universities for two weeks |
| intellectual property emanating from federal | | | | and afterwards go home trying to recreate the |
| government-funded research was implemented. The | | | | American educational system. Unfortunately, the root |
| legislature called Bayh-Dole Act (after two Senators | | | | cause analysis is not thought through to appreciate |
| Birch Bayh of Indiana and Bob Dole of Kansas that | | | | the fundamental evolution of what goes in the US |
| sponsored it) or University and Small Business Patent | | | | system. Yes, you have technology transfer offices, |
| Procedures Act gave US universities, small businesses | | | | but the school has no electricity to run a lab. |
| and non-profits intellectual property rights and control | | | | Back to the Act, notice that many US universities are |
| of their inventions, even though they were funded | | | | very competitive. While some could argue over the |
| by government. | | | | benefit of that since universities should traditionally |
| Through this Act, universities, small businesses or | | | | share freely, the pursuit of commercialization and the |
| non-profit organizations could pursue ownership of | | | | rewards that come with it help to make research |
| inventions in preference to the government. | | | | relevant to the needs of the society. And this new |
| What this means is that instead of sending the | | | | focus has created a platform where collaboration |
| patents or inventions to the government agencies | | | | with industry has reached an all-time level. |
| like National Science Foundation (NSF) or National | | | | Possibly, without this legislature, the idea that powers |
| Institute of Health for them to file away in their | | | | Google might still be filed out someone in the NSF |
| office cabinets, this Act empowers the inventing | | | | cabinet. And the world will miss the dynamism, |
| entity to pursue commercialization of the idea. Simply, | | | | positive disruption, jobs, success-domino and |
| the U.S government elects to fund an idea and allows | | | | information access that arrival of Google gave the |
| the fund recipient to profit from any invention that | | | | world. When they introduced 1GB gmail, Yahoo was |
| comes from that idea. | | | | forced to upgrade its users from 4MB to 1GB and |
| This Act provides clarity on many issues that could | | | | later, limitless storage. |
| derail the process of taking ideas to market, | | | | It is not just Google, there are many small companies |
| especially when those ideas were funded by US | | | | in pharmaceutical, semiconductor, and IT industries |
| federal government. For professors, it provides | | | | which exist today because the Act made it so easy |
| incentives to pursue research both for discovery and | | | | that individuals and entities can hold rights in |
| for profit since they also could profit from their | | | | preference to government and in the process |
| inventions. Just as their students could discover and | | | | increase the chance of getting innovative products to |
| commercialize, the university dons can also do the | | | | the market. |
| same. | | | | The lesson here is that congress and parliament can |
| It has been a new era as the number of Technology | | | | change the future of any nation when good policies |
| Transfer offices in the US universities has increased | | | | are made. |
| many folds. As schools file more patents, they | | | | I understand that this Act might have reduced the |
| continually look for opportunities for venture funds to | | | | free flow of information and ideas across the |
| commercialize or simply license their patents to other | | | | academia because everyone wants to guard its ideas |
| institutions. These days, schools quote the number of | | | | for profit; but we have to live with the reality that |
| start-ups they have incubated as a metric to their | | | | there is nothing that does not have a potential |
| competitiveness. They will tell you the stories of their | | | | drawback. Yes, some of our professors are now |
| students who graduated and founded firms and use | | | | visiting venture capitalists more often. But at the end, |
| that as selling points in their brochures. This is | | | | it provides a perspective that makes education |
| business right in the four walls of the universities. | | | | relevant and useful. And I think American students |
| Interesting, schools do not just teach business | | | | are better off when their professors are not |
| regulation and competitiveness anymore, they | | | | decoupled from the industry. |
| experience them because they are getting products | | | | Also, early patenting of ideas or processes without |
| to the market, though indirectly. There are many | | | | pursuing immediate commercialization could decelerate |
| start-ups which have become pipelines for the big | | | | the pace of their improvements from other partners. |
| MNCS to buyout. Before the Act, some of the ideas | | | | In other words, when schools patent their ideas, |
| that enabled the start-ups might have been | | | | they could possibly be closing the channel of |
| overlooked by MNCs. But as the former show | | | | progressive advancement on those ideas. From |
| promise and profitability, they could be bought over | | | | professors to graduate students, few will be |
| and that mission of making society better is given a | | | | interested to work on ideas which have been |
| bigger scale. | | | | patented. |
| For me, Bayh-Dole Act is the most important | | | | But the reality is that over the last five hundred |
| business legislature of the last century in the United | | | | years, intellectual property rights (IPR) have proven |
| States. And this is American Congress at its very | | | | to be the difference between the old world and the |
| best moment. It delivered through legislature and | | | | new one and this Act cannot be an exception. A |
| transformed the pace of innovation by providing a | | | | world of IPR is a world of innovation and though |
| fluidic system that enhances U.S competitiveness. | | | | Bayh-Dole can have some drawbacks, it is to me the |
| The outcome of the Act has spread around the | | | | greatest business legislation in the last hundred years. |