I was previously involved with a fairly exhaustive review of the technology transfer activities and commercialisation strategies across a broad swath of the Asia Pacific which included spending a bit of time in Singapore.  What strikes me is how economically similar Singapore’s operating environment is to Ireland’s. I thought it might be worthwhile to toss this out there so folks get an idea of where the technology transfer industry is going, some of the operating dynamics in a very similar market, and the importance of us of coming together within Ireland in order to offer a compelling argument for continued FDI.

Here are a few excerpts dealing with the Singapore TT/IP landscape…

I. Singapore Market Overview
With a total land area of 700 square kilometers and no natural resources besides an excellent deep water harbor, Singapore has always relied on human talent to drive the economic growth. The Singapore government has taken a very aggressive approach to management of the economy and setting the direction for future industries, leading many to dub the country Singapore Inc. The local economy is still dominated by current and former Government Linked Companies (GLCs). This top down approach has created a stable, progressive economy, but lacks the entrepreneurial and dynamic nature of many of its neighbors. It is often up to the government to create and nurture specific industry sectors. This has led to the growth of Singapore as a regional financial hub, as well as a base for infocomm and biotech R&D.

The government’s most recent focus is to fashion Singapore as a hub for the management and enforcement of Intellectual Property (IP). The local courts and laws have been brought up to date with international standards. Furthermore multinationals (MNCs) have been given tax and royalty incentives to manage their IP portfolios here. The government has also attracted many IP services firms which have opened regional headquarters in Singapore. The comprehensive initiative has also allocated funds for the training and education of manpower to fulfill these new roles. The program has gained momentum with the likes of Intellectual Ventures establishing its regional headquarters here.


II. Regulatory Issues
Intellectual Property Rights (IPRs) in Singapore are accorded the standards of protection compliant with international agreements such as the World Trade Organization’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, and the Berne and Paris Conventions.  The Intellectual Property Office of Singapore (IPOS) is a statuary board under the Ministry of Law, and is responsible for the oversight of IPRs. IPOS has been aggressive in enforcing IP policy as well educating the general public along with businesses and academia. In 2008, Singapore hosted the first conference for Asian partners of the Patent Cooperation Treaty (PCT).

IPR can be enforced by IP holders through civil actions which include injunctions, damages, and accounting of profits. The Singapore police force also actively combats media piracy through raids. The Singapore government has placed IP protection as a top priority and the courts have readily followed. The courts are efficient and effective, demonstrating a good grasp of the technical legal points of IP law, often in contrast with many other courts in the region. Moreover, costs to register and protect IP remain reasonable. Combined with strong government support, and a continued drive to create a regional IP hub, Singapore remains the top choice for companies to manage IPRs in the region.

III. Key Stakeholders
National University of Singapore (NUS)
NUS is Singapore’s premier tertiary institution, established in 1905 under British colonial rule as a branch of the University of Malaya. Since then it has continually built upon its reputation and is now ranked among the top universities in Asia. The university is particularly well-known for its engineering department which was recently ranked top 5 in the world. Blue-sky R&D efforts are concentrated within the areas of mechanical and electrical engineering, bio-technology, medicine, and information technology. NUS is well funded by the Singapore government, and is aggressive in pursuing top researchers from across the world. The university is headed by the President of Singapore.

NUS Enterprise is the university’s technology transfer division. Activities are divided between the Industry Liason Office (ILO) and NUS Entrepreneurship Center. The ILO was established in 1992 to facilitate industry links in activities such as IP licensing, and co-development research centers. To date the ILO has filed over 300 patents, and primarily licenses to US and Europe. The organization is divided between the Physical and the Life Sciences groups. NUS Enterprise is a member of the Association of Technology Transfer Managers (AUTM).

The Entrepreneurship Center manages university spin-offs which include both those that involve university IP and those that do not. The Center has managed a selected number of spin-offs to varying degrees of success. This is an area where NUS Enterprise has more limited experience. The Center provides incubation facilities, industry networks and other business support services. The Center also plays an educational role, aiming to encourage entrepreneurship among undergraduates at the university.

The combined primary staff number approximately 25. The management team possesses deep industry experience and expertise, and is extremely forward looking. The staff includes former academics and researchers as well as veterans from finance, consulting, and industry.

Nanyang Technological University (NTU)
NTU is Singapore’s second full-fledged university, established in 1955. Unlike NUS, NTU was founded and run privately for much of its history, with deep roots among the Chinese community and was once known for its left-wing allegiances. Currently it falls under the purview of the Singapore government. Although NTU is expanding its curriculum, the focus is still very much on engineering.

NTU’s Innovation and Technology Transfer Office (ITTO) was established in 2000 and currently has a staff of 5. Much of the research done at NTU is applied rather than ground-breaking. As such the market dynamics for NTU’s IP are rather different from a university like NUS. Much of the new developments at NTU are incremental improvements in existing technology. As such, the preferred commercialization route is co-development programs with industry. NTU currently has 80 such programs ongoing. The ITTO has also successfully spun off 2 university ventures in nanotech and environmental tech.

SPRING
SPRING Singapore is a government agency tasked with encouraging development of local small-to-medium enterprises. SPRING supports SME’s through financing, management development, technology and innovation, and access to markets.

Economic Development Board (EDB)
EDB is the government agency responsible for attracting foreign investment into Singapore. They do so through a variety of tax benefits, training grants, and other incentives designed to bring in foreign companies deemed most aligned with the governments long-term plans for the national economy. There is currently a strong push towards developing Singapore as a hub for IP management for the region.

Agency for Science, Technology, and Research (A*STAR)
A*STAR aggregates a number of major research institutes under a multi-billion dollar governmental organization. A*STAR is extremely well funded, and holds tremendous influence in the local arena. The subsidiary research programs focus on a wide variety of subjects including biotechnology, genomic research, infocomm, nanotech, chemicals, materials, electronics, and most importantly defense research. A*STAR also runs biopolis and fusionpolis technology parks.

A*STAR’s technology transfer is the responsibility of Exploit Technology, a subsidiary corporation. Exploit currently consists of approximately 70 staff. Due to the large amount of applied research being conducted under A*STAR, Exploit is one of the region’s largest players.

A*STAR has been known for its aggressiveness, and expansionary activities, even attempting to bring the local universities’ technology transfer under its umbrella.

IV. Opportunities & Challenges
The Singapore government’s focus on the IP industry has resulted in a plethora of incentives, financial and otherwise, to add to the already attractive enticements for foreign investment into the country. Initial discussions with EDB and other government representatives have resulted in preliminary offers of a 10% corporate tax rate, alongside employee training grants, matching investment funds, up to $300,000 in tax-free profits for the first 5 years of operation, and access to government services and contacts.

Moreover, the conducive environment for businesses is enhanced by the use of English as the primary language (Mandarin secondary), the efficient and transparent government services, and the high density of MNCs. It is therefore no surprise that many potential IP trading companies are planning to or have already established offices in Singapore, not the least of which is Intellectual Ventures, alongside a variety of IP brokerages and services firms.

Technology Licensing
The local market for IP in-licensing is relatively small. Singapore would instead have to act as gateway to wider South-East Asia, and southern China.  It is relatively efficient to access ASEAN markets from Singapore due to the strong ties of government and businesses. Countries such as Malaysia, Thailand, and Vietnam are on a rapid growth trajectory, and there is a palpable drive to move up in the value chain. Governments have begun education programs to inform local businesses of the value and management of IP. The SME sector in these countries is relatively more advanced compared to China. In-licensing of technology is therefore much easier, with local businesses more understanding of the early-stage nature of most university research. China is also accessible from Singapore due to the shared language and short distance to southern China, but is still much better served from a presence in Hong Kong or on the mainland itself.

Consulting Services
Singapore is home to a number of well-funded and significant research institutes such as NUS, NTU and A*STAR alongside corporate R&D departments. Consulting opportunities vary with the maturity of these organizations. Of significant interest are newly founded research institutes as well as new technology startups. A fourth national university is currently being founded and represents a unique opportunity for new partners to become involved with its TTO.

Collaboration Opportunities
NUS and NTU have sophisticated technology transfer operations, and are aggressively pursuing opportunities abroad. Initial meetings with the TTO’s were encouraging, and demonstrated receptiveness for collaboration. One potential form discussed was the idea of IP clustering, the aggregation of IP from these universities with international partners that results in greater value as a whole. Other aspects of collaboration include more traditional exchange of best practices and industry networks.

Intellectual Ventures (IV) have been active in wooing universities in Singapore and in the wider Asia region. In Singapore the local universities have resisted significant deals with IV due to the distaste for ‘patent trolling’.  However, IV has become increasingly sophisticated in its dealings with universities and have managed to shed its negative reputation is certain regions. It may be only a matter of time before IV’s value proposition overcomes any negative sentiments local universities have to working with them.

Emerging Markets Challenges
Due to the relatively new nature of IP management and technology transfer, experienced personnel may be difficult to acquire in these emerging markets. Any expansion into the region will have to take into account manpower needs and availability. Moreover, a wider task involves the education of key stakeholders around the region regarding the value of open innovation and technology transfer. Practitioners in this space have often found that researchers have a poor understanding of IP protection, resulting in poorly filed patents which become difficult to enforce.

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