A presentation made by Dr Gordon McConnachie, CTO of APICC on the development prospect of Innovation & Technology, Technology Transfer and Technology Commercialization in Hong Kong.

1. IP AND TECHNOLOGY
TRANSFER:
SOME PRACTICAL COMMENTS
Presentation by Dr Gordon McConnachie
Former Manager of Technology Transfer, Dow Chemical Europe
Founding Chairman of Scottish IA Centre
CTO of Asia Pacific Intellectual Capital Centre
Mail: gordon@gmcconnachie.com
gmcconnachie@apicc.asia
Roundtable on :
Hong Kong’s Patent System and
Hong Kong as an IP Technology Transfer Centre
5.30 – 7.30 pm, Wednesday , 7 December 2011
Room 502, Legislative Council Complex

2. The Developing World Situation:
GDP
2

3. The Developing World Situation:
Population Density
Source: TripAtlas
Persons per square kilometre 2006
3

4. In a classical economy:
Factors of production:
 Land
 Labour
 Capital ($)
Intangible factors of production:
 Enterprise or Entrepreneurship

5. In a Knowledge Economy:
Factors of production:
 Creativity
 Innovation
 Wealth Creation
Complimentary business assets:
 Manufacturing facilities
 Distribution capacity
 Sales force

6. Intangible Assets are the key
Components of S&P 500 Market Value

7. Hong Kong does not have any choice
•As a high-cost economy, Hong
Kong must follow the examples of
OECD and EU in climbing up the
economic ladder
•Hong Kong should try to
understand what it takes to build a
Knowledge Economy in Hong Kong

8. Hong Kong Now and Future
Today Future
 Centre for Financial Services  Centre for IP + TT
 A trading centre for tangible goods  A trading centre for intangibles
 Trusted Legal System  A knowledge centre for China
 Science Park at early stage  A bridge China – The World
 Cyberport well founded
 Solid base in real estate
 World class public transport

9. USA started in the early 1990s:
Facilitate the formation of industry-specific
Knowledge-based Economy expert groups
ICM Gathering of the USA:
A group of ~ 30 companies, sophisticated in the management of their intangibles. The
frameworks and methods for extracting value from intangibles were created by the
companies themselves and not by academics or consultants
Dr Patrick
Sullivan

10. Another View of Intellectual Capital
TOWARDS INNOVATION
Intellectual Knowledge & Innovation
Intellectual
Assets Know-How
Property
(Intellectual
Capital)

11. Innovation
(in products and services offered or
government policy outputs)
Intellectual Capital (unique) Complementary Business
Assets (differentiated)
Value Creation Value Extraction
Intellectual
Intellectual
Human Assets
Assets $
Capital and
(Free Innovation)
(Free Innovation) Intellectual
Jobs
ecr o F s e a S
Property
l
s etili c a F gnr u c a una M
s etili bapa C not ubrt s D
i i i
i t f
Structural Capital (generic)
Source: © Patrick Sullivan, ICMG i
i

12. Sources and Conversions of Value
Conversion
Sources of Value
Mechanisms
• Innovations • Sale
• Complementary • Out-license
$
Business Assets • Joint Venture
– Purchasing • Strategic Alliance
– Manufacturing • Integrate with
– Distribution Current Business
– Sales • Create New Business
• Donate
• Barter/Trade

13. IP AND TECHNOLOGY TRANSFER
IN HONG KONG IS
MUCH MORE THAN JUST TRADING
PATENTS
MUCH MORE THAN COPYRIGHT AND
TRADEMARK LICENCING
Source: US Patent Office

14. WHAT DO BUYERS AND SELLERS NEED?
e.g. Dow Chemical Freeport, TX, USA Facility
Source Gordon McConnachie

15. Dow Chemical - IAM Model
Source: Dow Chemical INTELLECTUAL
ASSET
DOW INTELLECTUAL STRATEGY/
ASSET PORTFOLIO BUSINESS TACTICS
STRATEGY
BUSINESS BUSINESS
INTELLIGENCE
VALUE &
ASSESSMENT TECHNOLOGY
ASSESSMENT
TECHNOLOGY Five Phases
R&D ALTERNATIVE INVESTMENT PLANS 1 Portfolio
INTELLECTUAL VALUE 2 Strategy
ASSET GENERATION
GENERATION 3 Business Intelligence &
Technology Assessment
4 Valuation
TECHNOLOGY 5 Investment
PROCUREMENT
Value Creation - Value Extraction – Value Release

16. BUYERS AND SELLERS NEED SOME
OR ALL OF THE FOLLOWING
The full service model provides all aspects of the well defined
process for packaging and selling an IP + Technology bundle. The
buying process is simply a mirror image.
 Package definition,
 Potential buyer sourcing and analysis,
 Potential buyer contacting,
 Making the sale,
 Making the deal in detail,
 Transferring the technology,
 Following up on obligations (royalties, performance).

17. CHOICES FOR HONG KONG
IN IP & TECHNOLOGY TRANSFER
1. Form a commercial IP trading hub
(have no control and accept whatever small risky market is present)
2. Create a true IP+TT Trading Centre to
facilitate IP+TT transactions from the
World into China and from China into the
World (which can also do (1)).
(be in control and build the market in co-operation with China and the World)

18. Investing in technology alone?
AApolicy of investing in technology
policy of investing in technology
alonewithout knowing how to extract
alone without knowing how to extract
economic value from it has no future.
economic value from it has no future.
HongKong must learn how to manage
Hong Kong must learn how to manage
its Knowledge Capital.
its Knowledge Capital.
HongKong must have aapolicy that
Hong Kong must have policy that
supportscommercialisation of
supports commercialisation of
technology.
technology.

19. FUTURE VISION
for IP and Technology Transfer in
HK
enterprise
Cities of China
china
HONG KONG enterprise
HAS A UNIQUE
ROLE network
china
Hong Kong
network and about 100 other
IP + TT players large
and small
.

20. What will HK’s IP & Technology
Transfer development strategy be?
Will we depend on …
 Formation of an IP Exchange?
 Formation of an IP Exchange?
 Trading of IP derivative as financial products?
 Trading of IP derivative as financial products?
 Innovation and Technology Bureau?
 Innovation and Technology Bureau?
 Build upon our strong producers services
 Build upon our strong producers services
capacity and further develop the IP and
capacity and further develop the IP and
technology transfer services and IP
technology transfer services and IP
commercialisation knowhow through hard work?
commercialisation knowhow through hard work?

21. The Presenter
 Dr Gordon McConnachie,
 Former Manager Technology Transfer Dow Europe
 Founding Chairman IA Centre Scotland
 Chief Technology Officer APICC Hong Kong SAR China
 Co-ordinates APICC China Network
 Owner GM ICM Services
 Located: Bangkok, Thailand
 Tel: +66-8-9923-5110
 e-mail: gordon@gmcconnachie.com
 web: www.gmcconnachie.com
 www.ia-centre.org.uk
 www.apicc.asia
