Recent developments in universities regarding intellectual capital and intellectual property

Within the context of the Health Industry Model (HIM), universities play a pivotal role in the development of new technologies and innovations. In particular, the creation of IC and IP policies within universities generates incentives for innovation and technological developments. These innovations in the health industry have the potential to spill over into other industries, especially other high-tech industries. In this light, universities are engines of growth, and key players in the promotion of high-technology sectors. This paper reports some preliminary research on the international development of policies regarding university governance, the corporatisation of research, the management of university intellectual capital (IC) and the management of university intellectual property (IP). A brief case study is provided which reviews contemporary Australian and Italian policy prescriptions concerning innovation, commercial practices and IP protection issues. Universities, as creators of knowledge, have a key role in the new ‘knowledge era’ as quasi-incubators of creativity and innovation. However, issues remain as to how university research is to be funded and how the intellectual capital of this research is to be distributed. The role of industrial partnerships in meeting this need for funding will be explored, as will issues concerning the complex contracts regarding ownership of IC and IP, the protection of public funds and risk transfers that accompany these relationships. It will be found that there are limits on the financial resources universities can obtain from private industry or other non-government sources. That is, while industrial financing can complement government financing, it will be argued that it cannot replace it. While university research can certainly make direct, short-term contributions to national economic goals, substantial core funding unrelated to identifiable short-term goals will continue to be required, if universities are to conduct the basic research on which the long-term vitality of the knowledge-based economy depends. Without this public funding, universities will be obliged to focus excessively on short-term research that could be carried out in other types of institution. This may be detrimental to the traditional mission of universities to conduct long-term, basic research and to impart knowledge to a new generation of students.