Dr. Suprapedi, M.Eng.Indonesian Institute of Sciences

STRENGTHENING PUBLIC-PRIVATE

LINKAGE ON IP IN INDONESIA

STRENGTHENING PUBLIC-PRIVATE

LINKAGE ON IP IN INDONESIA

The first Asian Science and Technology Seminar

“Appropriate Intellectual Property Right (IPR) Regime & PracticalSystem for Utilization of IPR for Asia“

March 19th - 21st 2006, Bangkok, Thailand

LIPI

LIPI

• Science-Technology (S-T) have important role in competitive economy activities. But, the development S-T, technology adoption, and diffusion are still facing the big challenge.

• The lack of quality of the R&D output from the government’s R&D institutions and Universities (Indicator: the national’s patent application less than 7% of whole Indonesia’s patents).

• The mismatch gap between technology supply with the technology demand (Public-Private/industry).

• The government technology policies are not fully implemented especially related to economy activity.

LIPIR&D in Indonesia ?

National Incentive R&D Program (2001– 2003)

R&D Outputs Number Proposal Journal Proceed. Prototype Industrial

ApplicationPatent*

163 (2001) 191 429 56 24 12

145 (2002) 75 205 57 7 9

60 (2003) 14 22 11 3 0

368 (Total) 280 656 124 34 21

( % ) 83.9 11.1 3.1 1.9

LIPI Patent ApplicationPatent Simple Patent Year

Domestic Foreign Domestic Foreign Total

1991 34 1280 19 3 1336 1992 67 3905 12 43 4027 1993 38 2031 28 43 2140 1994 29 2305 33 60 2427 1995 61 2813 61 71 3006 1996 40 3957 59 76 4132 1997 79 3939 80 80 4178 1998 93 1753 109 32 1987 1999 152 2784 168 19 3132 2000 157 3833 213 38 4141 2001 212 3714 197 24 4147 2002 246 3597 157 48 4048 2003 202 3098 163 92 3492 2004 235 3434 179 29 3877 2005 235 4069 163 32 4499

2006(Jan) 31 355 15 4 405 1899 46779 1656 631 50965

3.73 % 91.79 % 3.25% 1.24 % 100.00 % Total

Establishment of 90 TLO/IP Center/IP BDS :

Public R&D Institutions

Universities

Province government

Type of IP BDS :(1) IP Audit; (2) IP valuation for business negotiations and financing purposes; (3) Financial and other incentives for R&D and commercialization; (4) Technical and patent information services;(5) Research and examination services for IP; (6) Market studies and technical feasibility studies; (7) Business plans and IP strategy;(8) Patent drafting; (9) Legal and/or technical assistance for negotiating licensing, joint venture or

technology transfer agreements, R&D agreements, contract research agreements;

(10) Finding sources of financing; (11) Prototyping; (12) Branding;(13) Naming and trademark searching;

(14) Industry-specific R&D; (15) Patent/trademark/design application services within and outside

inventor's/applicant's home base; (16) Training e.g. for researchers, inventors, etc.;(17) Commercialization issues of a general nature and/or of a specific nature

relating to a specific market in ASEAN; (18) Sectoral/cluster research specialization; (19) Competitive intelligence;(20) Patent mapping.

Study of Need Assessment of IP BDS :

IP Services to Protect Market Competitiveness

IP Services for Supporting Collaboration

IP Services which is Essential and Crucial for IP Development in Organization

IP Services to Generating Income

IP Services to Protect Organization Market Competitiveness

0%

5%

10%

15%

20%

25%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

IP Services

Perc

enta

ge R

espo

nden

t

IP Services for Supporting Collaboration

0%2%4%6%8%

10%12%14%16%18%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

IP Services

Perc

enta

ge R

espo

nden

t

IP Services which is Essential and Crutial for IP Development in Organization

0%2%4%6%8%

10%12%14%16%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

IP Services

Perc

enta

ge R

espo

nden

t

IP Services to Generating Income

0%

5%

10%

15%

20%

25%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

IP Services

Perc

enta

ge R

espo

nden

t

Capacity and Capability of IP-BDS :

There are no IP BDS which are capable to give 20 types of serviceses

Most of services held by IP-BDS is not well integrated

Legal and financial aspect of the IP-BDS services is also un-integrated

COMMUNICATION NETWORK

- Consultant -

- Information Dissemination

- Match-making- Consultation /

Interaction

Business Associate

CCC

EECoEECo

EECo

Intermediaries

Center/NetworkBusiness Information

CCC - Consultant - CCC

EECoEECo

EECo

Direct contact

- Consultant - CCC

EECoEECo

EECo

Tech. Brokers, Technology Transfer

Networks

Business company/entities

Network/Partnership

Technology Developer

EECoEECo

EECo

SURVEY TO 98 INDUSTRIES(MORE THAN 100 EMPLOYERS)

Technology Diffusion in Indonesia

Respondent Rank

10%

30%60%

Direktur Utama/Wakil Dirut Direktur ManagerPresident / Vice President Director Director Manager

Company Status

40%

46%

14%

PMA PMDN BUMNPMA (Foreign Co) PMDN (National Co) BUMN (Government Co)

Technology Needed Level Perception

1%1% 9%

20%

69%

Sangat Tidak Penting Tidak Penting Cukup Penting

Penting Sangat Penting

Very not important Not important

Important Very important

Quite important

Technology Use Goal

18%1%

81%

Keunggulan Biaya (Cost Advantage)

Keunggulan Difrensiasi (Differentiate Advantage)

Gabungan Keunggulan Biaya dan Diferensiasi

Cost advantage

Differentiate advantage

Mix

Main Technology Sources

92%

8%

Luar Negeri Dalam NegeriForeign National

Main Technology Sources

27%

37%3%

9%

2%4%9%1% 8%

Negara-Negara Eropa Jepang Korea Selatan

USA India China

Taiw an Thailand Dalam Negeri

Europe countries Japan

USA

Taiwan

South Korea

China

Indonesia

India

Thailand

Did you ever exploited the product technology of R&D Institute / University

26%

74%

Ya TidakYes No

Weakness Reason Source

60%21%

19%

Dari Sisi Pemasok Dari Sisi Linkage Dari Sisi PenggunaSupplier Linkage User

Technology Supplier Weakness Reasons20%

18%

14%12%10%

7%6%

6% 5% 2%

Teknologi tidak proven/tidak aplikatif/TeoritisWaktu lambanMasalah BirokrasiTidak Sesuai dengan Keinginan PasarKurang percayaSDMSarana & PrasaranaKurang ProfesionalTeknologi out of dateBelum Standar

Unproven technology / non applicative / theoreticallyLateBureaucracy problemsNot marketableUntruthfulHuman resourcePolicy & infrastructureUnprofessionalOut of date technologyNot standard

User reason

79%

21%

Sumberdaya/Dana Terikat Aturan PrinsipalCapital / Funding Principal Regulation

Linkage Aspect Weakness Reason

54%

21%

9%

9% 7%

Kurang Informasi/Sosialisasi Kurang Aksesibilitas

HKI Mekanisme Belum Jelas

Dukungan Regulasi

Uninformed/lack socialization

Intellectual Property RightRegulation support

Lack accessibility

Uncertain Mechanism

The company has R&D unit

58%

42%

Ya, Punya Unit R & D TidakYes No

Expenditure R&D

40%

22%

20%

12% 6%

2-4% terhadap nilai penjualan 0-1% terhadap nilai penjualan5-9% terhadap nilai penjualan 10-15% terhadap nilai penjualan> 15% terhadap nilai penjualan

2-4% to total sale

5-9% to total sale

>15% to total sale

0-1% to total sale

10-15% to total sale

Reason not have own R&D

24%

24%22%

12%8%

5% 3%2%

Biaya investasi mahal SDM/Fasilitas terbatas

R & D di perusahaan prinsipal/induk Tidak mendesak

Imitasi/adopsi lebih murah Waktu

Memakai jasa konsultan Belum ada insentif dari pemerintah

Invest cost is expensive

R&D at principal company

Adopt is cheaper

Consultant use

Limited human resource

Not rush

Time

No government incentive

Self R&D motivation

47%

39%

7% 4% 3%

Kemandirian dan Daya Saing Atas desakan pasar (market pressure)

Biaya R & D Tidak Terlalu Mahal Adanya insentif dari pemerintah

Lainnya

Independent and Competitiveness

Market pressure

R&D cost is not expensive

Government incentive

Others

Motivation of technology adoption/diffusion

49%

23%

14%

9% 5%

Inovasi lebih baik Relatif murah

Waktu adopsi tidak lama Informasi mudah diperoleh

Lainnya

Better innovation

Short adopt time

Cheaper

Well informed

Other

Technology Transaction Mechanism

41%

25%

12%

11%7% 4%

Pembelian mesin dan/atau peralatan Pelatihan atau bantuan teknisJual beli konvensional LisensiKontrak kerjasama Lainnya

Machine procurement

Conventional trade

Partnership contract Other

License

Training and technical support

LIPI CONCLUSION

To strengthening technology supplier, R&D quality should be improved by supporting of IP information, up to date science-Technology information and potential market information.

To strengthening public-private linkage, necessary to establishment of communication network between R&D Institutions, University, IP Center/TLO/IP BDS/consultant, Businesses association and Industry or SME.

Necessary to give the national incentive program for acceleration of Technology diffusion and start up company.

Thank you

Terima Kasih

LIPI