IP Frontiers - Rise of the Chinese Entrepreneur

1. IP Frontiers - Rise of the Chinese Entrepreneur LESANZ Annual Conference 17-19, April 2008, Melbourne, Australia by Alice Ngan Director, Technology Licensing Office alicengan@cuhk.edu.hk Steve C.F. Au-Yeung Professor, Department of Chemistry scfau-yeung@cuhk.edu.hk The Chinese University of Hong Kong Shatin, New Territories, Hong Kong SAR

2. Technology Licensing Office of The Chinese University of Hong Kong • IP Protection • R&D Contract • Technology Transfer • Facilitate Establishment of Spin-off Company

3. Major Players of R&D Impact of Government Policy China • 1993 Law on Progress of Science and Technology of PRC encourages R&D collaborations with international parties • State owned universities • 154 States Key Laboratories • designated 6 strategic TLOs • 200+ National Engineering Research Centres under MOST • 1999 regulation announced by the Ministry of Education Hong Kong • universities • funding to universities

4. Government Financial Supportfor R&D and Technology Transfer 2006/2007 budget HK$605.9 million Initial injection HK$5 billion

5. Initiatives to SupportR&D and Technology Transfer in Hong Kong Basic Research Applied Research Other Infrastructural Establishments 1967 HK Productivity Council 1990 Intellectual Property Department 1991 Research Grants Council 1993 Applied Research Fund Hong Kong Industrial Technology Center Corporation 1994 Industrial Support Fund 1996 Services Support Fund 1999 Growth Enterprise Market 2000 - Innovation and Technology Commission - Applied Science and Technology Research Institute 2001 - Hong Kong Science & Technology Parks - Hong Kong Jockey Club Institute of Chinese Medicine • IC Design Centre • Material Analysis Laboratory • Wireless Communication Test Laboratory • IC Development Support Centre • Bio-Informatics Centre • Photonics Centre

6. IPOs in Greater China China (1) Year 2006: 140 IPOs US$ 440 million US: US$ 220 million UK: US$ 130 million Hong Kong (2) Year 2006: 56 IPOs Year 2007: 82 IPOs US$ 130 million US$ 157 million No. of IPOs Average Deal Size Source: (1) PWC Report 2007 (2) New Listing Report - Main Board of Hong Kong Exchanges and Clearing Limited (HKEx)

7. Number of Patent Application and Issuance in China & Hong Kongby Type of Patent Application 2000-2007 No. No. 280,000 16,000 Designs Patent Appn 260,000 14,000 240,000 Invention Patent Appn 220,000 12,000 200,000 Utility Models Patent Appn 180,000 10,000 160,000 Utility Models Patent Granted 140,000 8,000 Designs Patent Granted 120,000 6,000 100,000 80,000 4,000 60,000 Invention Patent Granted 40,000 2,000 20,000 0 0 2000 2001 2002 2003 2004 2005 2006 2007 HK Standard Patent Appn HK Standard Patent Granted HK Short-tem Patent Appn HK Short-term Patent Granted Invention Patent Appn Invention Patent Granted Utility Models Patent Appn Utility Models Patent Granted Designs Patent Appn Designs Patent Granted Source: (1) State Intellectual Property Office of PRC (IIP) (2) Intellectual Property Department, Govt. of HKSAR # Remarks: Patent applications published by State Intellectual Property Office of PRC (SIPO) on or after 27 June 1997 can form the basis for an application for a standard patent to HK Patents Registry

8. Chinese Entrepreneurs Source: “Three generations of Chinese entrepreneurs: will the third generation be as successful?” by Bing Xiang and Bing-Sheng Teng (Ivey Business Journal, November/December 2007)

9. Summary Remarks Chinese Entrepreneurs • Recommends site inspection with/by an independent observer • objective is to understand mindset of key research managers • and research staff • Look for • strong evidence of GLP practice • strong evidence of possession of proper research skill sets • commitment to Technology Development • transparency in research management practice • IP capture & control practice