Page 84 - OHKF_Gerontech_report_en

Second, the licensing revenue-sharing policies in Hong Kong Therefore, we recommend that all Hong Kong universities
universities do not provide enough incentives to researchers to encourage researchers to commercialise their research
commercialise their research. Table 8 illustrates this, with Hong output by increasing the share of licensing revenue received
Kong universities distributing only 25% to 50% of revenues to by inventors and identify suitable licensing terms and
inventors under university-led commercialisation processes, while revenue-distribution ratios.
overseas institutions adopt more generous revenue-sharing terms.

Table 8. Revenue sharing policies of Hong Kong and overseas universities

Patenting through
universities Patenting through inventors
University [Percentage inventor(s)
[Percentage inventor(s)
receives] receives]

Hong Kong
universities 25%–50% 20%–80%

Overseas
universities 60%–90% 75%–100%

Note: The numbers in the table are as of 31 August 2020. Hong Kong universities include HKU, CUHK, HKUST. Overseas universities include University of Toronto, University of
Waterloo, and University of Cambridge.
Source: Adapted from OHKF, 2020
Third, most companies do not have the necessary cash-flow under the HKUST Entrepreneurship Program, HKUST accepts
to pay for hefty licensing or patent fees at early-stages of 3% of the spin-off company’s shares as part of its licensing
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developing a start-up. Spin-off companies, which are a subset of agreement (HKUST, n.d.). Taking note, we recommend all
start-ups, often face the same problem. However, in the case of Hong Kong universities to consider accepting a small share
spin-off companies, universities can offer support through flexible of equity as compensation for paying for the licensing fees
financial terms to encourage entrepreneurship. For example, of spin-off companies.

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In an overseas example, Stanford University accepts equity, which is typically less than 5% ownership (Stanford, 2016).
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