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V. Rishi Kumar

HYDERABAD, Feb. 3

UNLESS the domestic IT sector builds intellectual property (IP) in the next few years to ramp up operations, it might be edged out in the extremely competitive environment, according to a senior researcher and mentor based in the US.

Dr Rao Machiraju, who was associated with the Apple Advanced Research Labs and was the Founder of ConceptLabs, spoke to Business Line about intellectual capital creation.

He is associated with thinker Dr Edward de Bono. They have established a centre to support Governments, corporates and individuals at a picturesque fort in Malta to develop `design type' thinking. This is based on the concept "You can analyse the past, but you must design the future''.

On building intellectual capital.

When we talk about intellectual capital, it is about generation of new ideas and making sure it is a new idea. By subjecting it to the patenting process, we can create value.

One of the fundamental issues for creating IP is the ability to think and create new ideas. They do not come easily. There is a need to build an organisational framework at the societal level for the creation of IPR.

Best way forward is as practised in the US by attracting top-notch talent. It happened in the 1930s. Princeton had the great reputation of building IP. Europe had a similar tradition. Gradually, MIT emerged. It was like a polytechnic in the 1940s. It takes time to build IP.

At the national level, we need to build an institutional framework in order to help build organisations and develop IP culture. Institutions like the IISc, IITs in India are excellent examples.

The issue is how to push this innovation and transfer it into ways where we can make it concrete. This means we need to encourage thinking skills. Small part is always there. But this needs to be pushed by bringing in flexibility in the way our system works.

When an idea is sought to be put forth, we need to harness it. The IIM-Ahmedabad has Honey Bee network, providing a grassroot of database of ideas.

On thinking differently.

Lateral thinking or six hats are ways we can do things differently. We need to evolve a model whereby we can file for protection and patenting. Major investments are already in place. In most universities where research is on, there is no patenting. We need to encourage this and provide support of attorneys for IPR.

We need capital provided from organisations to push this through internally as well as externally. The tendency of organisations is to look at the status quo. Radical changes are needed to address this. Some tackle this through incubation centres; alternatively a network is necessary to build on ideas.

To protect patents and turn them into viable business proposition, there is a need to scale up operations. Indirectly, we need to build people who are creating intellectual capital.

What are the drivers?

The ability to create ideas and access to expertise are necessary. Further, this has to be supported by access to capital, which cannot be any capital but risk capital which looks at diversity. Even if it means 7 to 10 years, we continue to work and build ideas.

The era of making fast buck is gone. The ideas need to be generated based on threat perception and being able to watch out the way forward. In 1993, it was surprisingly Hungary, through its Academy of Sciences, which started calling for funding from private enterprises to support IP.

According to Dr de Bono, provocation is necessary for IP creation. Dr Reddy's Labs is an example of this process. The challenge is to be geared up for the long haul and in the next 10 years, we will be able to scale up the value chain. Already, Research Labs of HP, IBM are in India generating IP. Others will follow. Smaller groups cannot do this. Networking is essential.

The challenge.

Currently, the size of the population engaged in this is very small. There is a need to increase this to a critical mass. The Indus Entrepreneurs have taken the lead and are seeking to do this. ConceptLabs and institutes like the IITs and MIT will support this. Though research is hard to predict, the only way out is to strive harder.

A lot of innovation in the US is driven by Indians. It will not be difficult to replicate this. Xerox Park is a good example of outsourcing research group. For Apple, a lot of IP came from Xerox. Intervel Corporation and Apple Advanced Research Technology Group are similar examples. The trend is now to outsourse IP by creating culture of ideas.

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