STRUCTURAL HURDLES FOR SPIN-OFFS FROM RESEARCH
New survey shows great need for improvements in IP transfer
The transfer of IP rights from research institutions and universities to start-up teams represents a considerable challenge that is slowing down the innovation process in Germany. A recent survey of 118 spin-offs, conducted by Fraunhofer ISI as part of the project IP Transfer 3.0 - New Paths in IP Transfer,
shows that the path from first contact to contract conclusion takes an average of 18.4 months and often suffers from a lack of transparency and unclear negotiation processes.
Founders who want to commercialize innovative ideas from universities and research institutions are confronted with various structural hurdles. Access to intellectual property rights (IPRs), which are important for their start-ups, is made considerably more difficult by complex and lengthy negotiations. In addition, many scientific institutions do not have standardized procedures and models for IP transfer, which creates uncertainty for start-up teams.
The response rate to the start-up team survey was 118 start-ups, with a total of 667 spin-offs from the years 2017 to 2023 being contacted. The results are alarming: In the negotiation processes in which a transfer office, the legal department, or patent exploitation agencies were significantly involved, their role was perceived as inhibiting or strongly inhibiting. Another point of criticism is the usually very long period of time between the initial consultation and the final conclusion of the contract. The average period is 18.4 months, although the spectrum ranges from 3 to 54 months for the negotiations, which the respondents reported were for the most part completed. The negotiation processes are often not only lengthy, but also lack transparency and are overly complex. There is a clear need for reform in order to lower the often internal institutional barriers to accessing IP for start-ups and to strengthen Germany as a location for innovation,
stated Barbara Diehl, Chief Partnership Officer at the Federal Agency for Breakthrough Innovation.
To remedy this situation, SPRIND has initiated the IP Transfer 3.0 project together with 17 scientific institutions, the Stifterverband, and Fraunhofer ISI and with the support of Niedersachsen.next Startup, and has developed a range of tools. These are intended to speed up the negotiation process and make it more transparent. A central element is the Pocketknife Transfer,
which supports start-up teams with a structured catalog of questions on the IP situation, an IP scorecard for simplified evaluation, and a series of sample contracts. The model contracts provide the founding teams with initial points of reference for negotiations and help to improve the basis for negotiations.
In addition, SPRIND and the Stifterverband are in close contact with funding bodies and political representatives at the state and federal levels in order to anchor the importance of more efficient IP transfer in the guidelines of funding programs. A first example of the successful implementation of these criteria is the Start-up Factories lighthouse competition organized by the Federal Ministry for Economic Affairs and Climate Action (BMWK).
The results of our survey highlight the urgent need to optimize transfer processes in order to reduce the considerable barriers to access to IP for start-up teams – both at universities and in non-university research institutions. The main points for improvements are the reduction of complexity and duration, the professionalization and simplification of transfer processes as well as more transparency through clear guidelines, regulations, and standard contracts,
said Marianne Kulicke, project manager at Fraunhofer ISI. This includes measures such as creating clear guidelines and process handbooks and introducing standardized procedures, such as those already established internationally at the ETH Zurich or the Imperial College London.
The IP-Transfer 3.0 project will take further steps in the coming months to make IP transfer more transparent and accessible for start-up teams. The findings will be presented and discussed in the federal states as part of background discussions in order to further raise awareness of the problem and initiate change.
Find more information here.
Resultsof the founding team survey.
