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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Inventors suggest, business supports

One formula for successful promotion of innovations
29 April, 2010 - 00:00
Photo from the website LORI.RU

People can be divided into those who create something and those who use the creations. And if it were not for the non-standard thinking of inventors, it is unknown at what stage of development we would be now. It seems that the economic situation in Ukraine makes people think in a more down-to-earth fashion, but this is not the case: according to the State Department for Intellectual Property, every year the number of people who get patents for inventions increases in Ukraine.

Marking the International day of intellectual property, which the world celebrates for the 10th time on April 26, the winners of the All-Ukrainian contest “Invention-2009” were selected in Kyiv, and some innovators were awarded. However, in the opinion of Mykola PALADII, head of the State Department for Intellectual Property (Mi­nistry of Education and Science of Ukraine), a brilliant invention for society would be efficient methods for nurturing the growing generation, since the situation with crime, alcoholism, and lack of spiritual ­va­lues among the youth is threatening our future. He has told us about the fate that is awaiting inventions and inventors in Ukraine and when the state will need people who offer mo­dern methods of treating grave illnesses; people who created electrical boilers which can save Ukraine from gas dependence, or inventors who offered new non-radioactive technologies for producing nuclear fuel.

Mr. Paladii, are Ukrainians as always eager to work on new ideas?

“Believe me, the wish to invent and create hasn’t decreased. The Ukrainian nation is extremely rich in intellectual and creative persona­lities. Creativity is a way of their life; they will always strive for something new, improving the environment in which we live. These are people, so to say, not of this world, who think in a non-standard way. It is not easy to talk with them, for they accept the world a bit differently. But exactly this ability of theirs is the engine of progress in the world community.

“In the past decade, the State Department for Intellectual Property has been steadily increasing, by 9-12 percent per year, the number of issued patents. There are inventors who have a few dozens of patents and continue to fruitfully work on new ideas.

“It’s very sad to realize that today, unfortunately, we can’t give an answer to our inventors about what they should do and where to go to introduce a patented solution. This is a really painful issue.

“But we view the issue of innovation and invention activity from a bit wrong perspective. In fact, the problem with accomplishing important innovative projects should be regarded from the perspective of the state’s future. I have reasons to state that the national legislation in the sphere of intellectual property corresponds to the international standards and norms. There are no problems with this. We conduct serious examinations, issue patents of Ukraine for inventions, and industrial samples in the same way it is being done in all developed countries. But what should the inventor then do with his patent? Most European states take care of important inventions and assist in using new ideas and creative solutions on domestic and foreign markets. Inventors in such countries have decent remuneration for their creative achievements.”

Which inventions in Ukraine have been widely discussed in society?

“Regarding inventions for which one can get lots of money, in Ukraine there is company Proton-21, which deals with new nuclear technologies. One of their employee, inventor Stanislav Adamenko, has been ­awar­ded with many Ukrainian and international awards. He has proposed a new system of nuclear synthesis which is non-radioactive and generates thousands times more energy than the ­energy of an atomic station. This ­pro­ject is already operating, but if to develop it for commercial use, I even can’t say now how many billions in profits it could yield.”

Is there any interest on the part of the state?

“Seemingly there is an interest; politicians assure that this is a project that is necessary for the state, and we must implement this invention. But there is no mechanism which would enable us to move forward. I have been suggesting the same thing for 10 years now. We have the State Agency for Investments and Innovations. We should bring under its jurisdiction the legal, financial, and organizational possibilities of the Ministry of Finance, the newly-created State Committee of Ukraine for Scientific, Technical, and Innovational development, the State Department of Ukraine for Intellectual Property, as well as, perhaps, certain financial groups, Ukrainian banks, and other institutions. Under these conditions a person with an invention, for example, in the sphere of machine building will know where to go and who to address. Such questions have already been solved in Sweden and Finland. In terms of economic competitiveness these two countries rank about the best in the world.

“I think there should be a state program directed to creating conditions for inventors for their creative activity. I mean the program which would be coordinated with inventors, heads of regions, business representatives, financial circles, venture organizations, which come and go in Ukraine, and also with international organizations. I think that in Ukraine it’s necessary to solve problems of economic competitiveness on the legislative level and lay down, so to say, the rules of the game. For example, we can introduce privileges for businessmen who will come with their own finances and will invest them not in construction or purchase of land, but in modern projects of power stations, wind-driven generators, nanotechnologies, etc.”

Who should initiate it?

“I think that the initiative should come from the corresponding committee of the Verkhovna Rada, our legislative body. They can elaborate such a bill. Then the government will be able to create mechanisms to realize the legislative norms, i.e., thoroughly determine the activity of financial groups, inventors, entrepreneurs, and other bodies.

“In other words, it’s necessary to do everything on a professional level, on the level of the future. And we should look not two years ahead, but at least 10 years. If there were a question in what spheres we can compete, believe me, our scholars and our science could answer in which domains precisely we have chances to find our niche. For example, in aircraft construction, space, and nuclear energy – or in struggle against cancer and infectious diseases. When such developmental directions are defined, the state, even in the difficult time of economic recession, will be able to finance an innovative project, for example, by covering three to five percent of the costs, and businessmen will invest the rest of their own costs, provided that they will get future profits.

“A year ago we calculated with Arsenii Yatseniuk that the state annually spends about four billion hryvnias for the development of science. This is a considerable sum of money. With these finances we could approach the management of the economy diffe­rently, in particular by introducing innovations and modern technologies.

“I often invite inventors and businessmen for a mutual discussion of problematic questions. An inventor tells about how his vaccine works, while a businessman dealing with me­dicine asks him how much money it is necessary to invest, how much time it is required to get the final product, which laboratories are necessary to establish, etc. The inventor doesn’t know this! Actually, there should be companies that would prepare business plans and would act as mediators between inventors and business.

“For example, the head of the patent institution in the Japanese go­vernment is subordinated directly to the prime minister. The prime minister determines the directions of economic development of the country. In other words, in developed countries the functions of patent departments were expanded long ago. This is not just a body for issuing patents. The patent agency of Japan determines, for example, a university in Nagasaki which deals with corresponding questions, finds firms which have experience in manufacturing similar ­pro­ducts, and, so to say, ensures cooperation between them.

“During parliamentarian hearings we have never raised the question about Ukraine-2020 and how it will develop: by means of which institutions, which technologies, and costs. We are constantly saying that the state do­esn’t have money. But this conversation doesn’t have prospects; this is a Soviet-style conversation. And one should formulate the question, for example, in the following way: we will develop this technology, the state allots five percent of the necessary financing, while the rest is secured by concrete commercial structures, which will participate in the projects.”

Which recent inventions made by Ukrainians can compete on the international market?

“I want to mention Oleksandr Nikolaienko (this is the company Erbis which produces Erbisol). He has been producing his product for over 10 years now. It’s his enterprise, his patent, he invented everything himself, and I think that he has a turnover of a few dozen million hryvnias. About 20 employees work in the company.

“If we consider the new nuclear technology, about 200 people work there. One of the oligarchs finances this production fairly well. But there are extremely important things, as, for example, the struggle against tuberculosis, which were left out – inventors didn’t find a common language with the medical profession. The same problem is with the struggle against varicosity: we have people who produce medicine against this disease in a homemade way in private clinics. There is an honored inventor of Ukraine Bury from Lviv medical university. He delivers lectures there and makes surgeries without the scalpel. But all of official medical profession doesn’t accept his technologies and is against him. The same case was with Anatolii Zaviriukha — the official medicine stated that his vaccine didn’t cure cancer.

“Two and a half years ago, together with Vice Prime Minister Tabachnyk, we planned to establish an intellectual town near Kyiv. A draft resolution of the Cabinet of Ministers of Ukraine was prepared. And such inventors as Zaviriukha, Adamenko, and Bury together with representatives of business circles could work precisely there. This would be a common project with business. However, it is the state that must be interested in such issues as struggle against grave illnesses.”

Is anyone initiating the idea of such a town now?

“I think we are still in too much of a bind to think of that. This problem should be regarded in a comprehensive way. We have very many projects and can’t find, for example, 20 billion hryvnias to finance all of them. But we can finance a few. This would be right. I think inventors and representatives of business would understand this.”

Comparing Ukraine with other countries in the domain of introducing modern technologies in economy, what place do we take?

“As of two years ago we ranked 86th or 87th in competitiveness. Developed countries have never consi­dered the question of using innovations on the domestic market. For if a certain technology wins on a foreign market, it will surely win on the domestic market, too.

“Our situation is as follows: if we now asked what we can give for the foreign market and get scientists, businessmen, and inventors involved in this, we would see that for the cost of the suggested projects other spheres would develop as well. In other words, if we start producing modern nuclear technologies, then all industry will develop. For example, we’ll see that we need metal, fiber, chemicals, nano­technologies, crystals, etc. It looks that by developing three or four directions, five at the most, we would develop the entire economy. And we don’t need planning the development of our economy in 25 directions, as we have it now.

“First of all, there should be a desire to change something in the state for the better. Second, it’s necessary to find people who are able to do it and who can find costs. There are more than enough costs in Ukraine. It’s necessary to ensure conditions when investing costs in modern products will become interesting for business – and the state can do this by itself.”

In your opinion, when will the development of innovative technologies become a priority for Ukraine?

“When life conditions will make us do it. As far as I know, according to calculations of analysts, we’ll have enough oil and gas, according to optimistic forecasts, for 70 more years, and according pessimistic estimates for 30 years. In 30-40 years it will become clear that in the near future we won’t have anything to produce even if we wanted to. Then we’ll think about it. Thoughts stimulate business: for example, what we will fuel the tanks of our cars with, how we will warm ourselves in winter, and how we will generally survive. I guarantee you that in a year there will be numerous suggestions regarding new technologies! And some of them will be put into practice, and they will bring profits to people and the state. The state will have to address the needs of inventors, for there is no other way. If we all really loved our country and wanted to do something good for it, we would live much better now.

“And here we return to the spirituality of the nation. For if our youth since the early age is involved in drinking alcohol and if drug-addiction and prostitution are widespread, then we have already lost people. This is the main problem, for, perhaps, we are losing future Lomonosovs or Kurchatovs. Today I would still focus on the issues of education, people’s attitude to society, and its attitude to each person. It may be necessary now to work with those young people who are only thinking about marriage, for currently we need to think about children which were not born yet. We should necessarily think about it, for otherwise it’s unknown who will need nuclear power plants and nanotechnologies. It would put it as the highest priority, and the rest is secondary.”

By Oksana Mykoliuk, The Day
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