Industrial support for European research demonstrates a thriving knowledge transfer culture in EU

A pan-European survey conducted by Proton Europe demonstrates that Industrial funding of research is one measure where we continue to outstrip the US.  This is the largest ever survey in Europe of KT activity from research institutions

Although R&D research expenditures of the universities is about the same in Europe and in the USA (approx 31 Billion Euros), the level of collaborative research with industry and research institutions was double that in the USA in 2004 and has stayed ahead in 2005. 

In the US industrial funding of research runs at around 7% of total and there has been significant investment recently by some leading US universities to develop this activity.  In Europe the percentage varies quite significantly but there are some universities already getting far more investment from industry with levels of 30%+ reported against top levels in the US of around 20%. 

The question for European industry and policy makers is how to sustain and grow that level of investment and turn it into products for the future.

• Almost 25% of research institutions report KT activity through interactions with industry but have no IP patented
• The research expenditure needed in Europe to produce one patent is significant at €4M for each patent filed and around €11M for extension internationally.
• The distribution of the IPR protection activity reveals an important concentration.  Some 31% of patent first filings are made by 3% of the respondents.
• The level of patent filing and conclusion of licences is about 5 times lower than in the USA
• The level of royalties is about ten times lower due to the time lag effect
• The number of spin outs is comparable to the US (although the effort required to spin them out and their rate of growth are different)

One conclusion is that Europe is lagging behind in all knowledge transfer activities that are based on patents by PROs and that more needs to be done at national and at EU level to address this.

The survey, which encompasses a wide range of metrics to reflect the extensive parameters of knowledge transfer activity between research institute ions and industry  was the 2nd conducted by ProTon Europe.
The survey captures the profile and level of knowledge transfer (KT) activities carried out by the dedicated Knowledge Transfer Offices (KTO) affiliated to European Public Research Organisations (PRO). The scope of KT in Europe is wider than that described by traditional “technology transfer” (TT). Its form varies across countries and is highly influenced by the different national legal and institutional frameworks.

KT related functions performed by KTOs




The survey allows comparison for the first time across institutions and across European countries.  Comparisons with the USA are restricted to the areas surveyed by the AUTM survey on technology transfer.

The 2005 results show that a consolidated KT process is underway in many European countries. With the exception of those in the UK and Spain, most KTOs were established less than 10 years ago. They engage in a wide range of KT activities from contract and collaborative research to licensing and spin-off creation.

The KT output indicators related to the traditional Technology Transfer activity (invention disclosures, patent filing, licensing) for European KTOs show a strengthening performance compared to figures for the US based on the AUTM licensing survey.

The creation of new companies in Europe, based on PROs’ research results is also a major KTO activity, whose outputs are catching up with the US; However, it is company growth and persistence in the market rather than formal setup that contributes to the success of spinoffs.  As a result the significance of market conditions, the context and of course the very different venture capital situation in Europe is highlighted – and out of the hands of the research organisations. 

Further Information:
Fernando Conesa,
Deputy Director,
CTT
Universidad Politecnica De Valencia
Spain

T: 0034 963 877 409
E:fconesa@ctt.upv.es