By Kevin Ouko, Nicholas Odongo and Esther Mugera
Overview
On August 8, 2024, the Research and Innovation Management (RIM)[1] Project hosted a webinar themed “Bridging Innovation and Market: Effective Technology Transfer and Commercialization”. The webinar was led by Prof. Tom Ogada, Executive Director of the African Centre for Technology Studies (ACTS) and Principal Investigator for the RIM project as the main speaker.
The RIM Project’s main goal is to enhance the ability of Science Granting Councils (SGCs) in Sub-Saharan Africa (SSA) to support research that contributes to economic and social development. This includes refining research frameworks, managing high-quality research competitions, and issuing contracts to ensure smooth project execution. It also involves joint monitoring of projects, integrating gender equality and inclusivity, supporting the synthesis and dissemination of research outputs, and organizing symposia for knowledge exchange.
The webinar aimed to increase participants' awareness and understanding of technology transfer and commercialization processes, identify best practices and strategies for successful commercialization, enhance collaboration among academia, industry, and government, and establish a network of professionals engaged in advancing technology transfer and commercialization efforts. These aims support the broader goal of strengthening Africa's innovation ecosystem to drive economic growth and sustainable development.
Highlights from the Webinar
(a). Impact of Technology Transfer and Commercialization
Science Technology and Innovation (STI) is intended to develop solutions impacting a wide range of users- government sectors, private sectors, NGOs, and other possible users- each with its specific objectives. From the lab to the actual users, the technology and solutions from innovations target diverse stakeholders with different orientations- some lack legal skills, some operate in activities with strenuous processes, and the bureaucracy among stakeholders such as the private institutions. In the past, technology transfer and commercialization has involved academia and the private sector but has broadened to increase other users, attracting new pathways for tech transfer and commercialization.
Technology transfer and commercialization impact at different levels; at individual, organizations, and government levels. The requirements at each of these levels vary, necessitating the capacity of bridging the various needs of stakeholders with diverse orientations and different work structures. For governments, investments in research targets social development such as elimination of hunger, access to health, reducing post-harvest losses, and industrialization. Assessment of research investment can be demonstrated by the real output and developments from the research outcome deployment.
At the institutional level, technology transfer and commercialization become relevant as a tool for attaining national development through knowledge generation. Part of this knowledge generation leads to publications that influence policy; however, it is through the application of the knowledge generated and innovations that social goals intended by research are addressed. Through technology transfer and commercialization processes, institutions enhance their image and relevance. For universities, engaging in outreach, and extension services as a third mission ensures knowledge and innovation generated is adopted. The transfer and commercialization processes also provide an avenue for universities to generate income by making knowledge generated available. Many universities in Africa are undertaking commercialization and technology transfer as a way to mobilize more funding.
Many universities in Africa are in the process of establishing institutional intellectual property (IP) policies, outlining ownership and benefit-sharing from products generating revenue streams. IP is an enabler in the commercialization and technology transfer process granting protection and the rights to exploit and make money out of an innovation. Moreover, for an institution such as a university, IP rights is a means of recognizing the effort for the innovation. Several options exist for exploiting the IP rights such as self-exploiting the knowledge or innovation, allowing others to use the knowledge, and preventing others from using the knowledge without permission.
Various categories of IPs highlighted included copyrights such as publications, music, and artwork; industrial property including patents, utility models, and industrial design, and trademarks; and plant breeder’s rights to new plant varieties. Another IP category that has gained much emphasis recently is traditional knowledge relating to cultural and geographical indications.
Technology commercialization bridges the gap between the innovators and final technology users. Ideally, it is the final movement of the initial technology movement from the researchers and innovators. Several options apply when commercializing a technology namely; i) Self-Exploitation that involves starting a spin-off company to manage and market the technology. This option is ideal if there is confidence in achieving higher returns and the required skills and resources are available. For universities, this route can also be used to create start-ups from student innovations; ii) Selling a technology in which technology ownership is transferred to another party. This option is suitable when an innovator lacks time or resources to invest. Evaluating the best terms for selling technology may require the involvement of a technology broker; iii) Joint Ventures through which researchers or innovators collaborate with fellow partners to pool resources and skills. This option reduces individual liability and requires clear guidelines for responsibilities and exit clauses; and iv) Licensing that allows others the use of a technology under defined terms while retaining innovator or researcher retains ownership. Licensing is appropriate when there is a lack of resources to commercialize the technology. Contracts should specify the purpose, territory, duration, and financial terms, and may include provisions for capacity-building and addressing improvements. Licensing agreements can be exclusive or non-exclusive. Exclusive licensing prevents competition but may limit revenue sources, while non-exclusive licensing allows multiple partners, providing a fallback if one partner underperforms.
Case Study: African Knowledge Transfer Partnership
The African Knowledge Transfer Partnership, led by the British Council, successfully demonstrated the effectiveness of technology transfer. Operating in Kenya, Uganda, Nigeria, Ghana, and South Africa, the project facilitated collaboration between universities and industries. One notable outcome was the licensing of Biofix, an organic fertilizer. The licensing agreement included a one-off payment and royalties based on sales, demonstrating the success of clear agreement terms and collaborative efforts.
Question & Answer Session
Following the informative webinar session, some of the participants sought clarification on pertinent issues on technology transfer and commercialization. The talk elicited reaction on the current stakeholders in technology transfer, level of IP awareness, technology commercialization, and the interaction between innovators and final users.
(i). Specialization in Technology Commercialization
Several organizations and individuals specialize in supporting innovators and universities. Universities are increasingly developing programs to encourage commercialization and support SMEs. However, awareness and understanding of intellectual property (IP) remain suboptimal among stakeholders. IP, while often seen as theoretical, is a practical tool essential for demonstrating ownership and facilitating commercialization.
(ii). Practical IP Management
To make IP more practical, it is essential to actively manage and demonstrate ownership. IP should be integrated into commercialization strategies and not treated as a theoretical concept. Evaluating technology transfer officers involves assessing their effectiveness and awareness. Many institutions have established offices to support this, though some still lack functional technology transfer offices.
(iii). Addressing Reluctance to Commercialize
Reluctance among innovators and SMEs to commercialize their innovations can often be attributed to trust issues and concerns about IP theft. Engaging neutral brokers can help build trust and facilitate the commercialization process. Universities may also hesitate to engage with industries due to public sector constraints and legal complexities.
(iv). Formalizing Relationships and Protecting Innovations
The relationship between innovators and researchers within universities often remains informal. More formal engagements are needed to enhance collaboration. Additionally, protecting innovations in the informal sector through IP is crucial, though awareness remains a significant barrier.
Conclusion
The webinar provided a critical analysis of the mechanisms and challenges associated with technology transfer and commercialization. Key takeaways include the need for effective research frameworks, robust intellectual property management, and strategic partnerships between academia, industry, and government. The discussion highlighted significant barriers, including inadequate IP awareness and reluctance to commercialize innovations due to concerns over intellectual property theft and trust issues.
Policy Implications:
- Strengthening IP Policies: Policymakers should enhance intellectual property frameworks to provide clearer guidance and support for innovation management, ensuring protection and incentivizing commercialization.
- Fostering Collaboration: There is a need for policies that promote stronger collaborations between universities, industries, and government bodies to facilitate the effective transfer of technology.
- Building Capacity: Investments in capacity-building for technology transfer offices and commercialization programs are crucial to bridge the knowledge gap and enhance the practical application of IP.
- Addressing Barriers to Commercialization: Developing policies that mitigate trust issues and legal complexities can encourage innovators and SMEs to engage more actively in technology commercialization.
[1] A collaborative project led by the African Centre for Technology Studies (ACTS), the Association of African Universities (AAU), and Université Cheikh Anta Diop (UCAD)
