Home > Topics > Institutional Policies and Strategies > Conflict of Interest and Conflict of Commitment Management in Technology Transfer > Editor's Summary, Implications and Best Practices

This chapter explores and covers issues relating to conflict of interest and conflict of commitment. Conflict of interest fundamentally involves financial issues, that is, where the financial interests of an institution’s researcher are incompatible with the institution’s mission, policy or goals. Conflict of commitment involves time issues, that is, where the time that the researcher spends in external activities related to, for example, downstream technology development interferes with the researcher’s attention to his duties to the institution (for example teaching or extension responsibilities). Hence, because both conflicts of interest and conflicts of commitment are potential pitfalls in the technology transfer process, both are addressed in this chapter.

As the chapter points out, the potential for personal interests to influence institutional decisions is increasing because many institutions are doing more in the area of IP management and technology transfer. Because these activities have the potential to generate both personal and institutional financial gains, conflict of interest issues are a constant concern. Indeed, in today’s modern research universities, the missions of which explicitly include the transfer of research to commercial partners, conflicts of interest are practically unavoidable. These conflicts need to be managed in ways that allow institutions to meet their technology transfer mission without compromising their basic missions, reputation, integrity and obligation to the public’s trust.

A conflict of interest is when there is a conflict between an individual’s private interests and his professional obligations such that an independent observer might reasonably question whether the individual’s professional actions or decisions are affected by his or her private interest. This is an important consideration in IP management, because the potential for a researcher to have a significant financial interest in an outside potential licensee can be quite high, particularly if the licensee is a start-up company founded by the researcher/inventor.

Multiple institutional goals create the potential for a conflict of commitment between the institution’s primary educational and research mission and the institution’s interest in effectively supporting economic development and technology transfer through the external activities of its faculty and researchers. Conflicts of commitment typically require determining the appropriate balance of time allocation between institutional and external activities— the critical test is that external activities should not detract from their primary institutional responsibilities.

The development of institutional conflict of interest and conflict of commitment policies is a critical step in developing technology transfer capabilities and programs. Developing the policy will require identifying and articulating institutional priorities and determining the appropriate balance between institutional interests and the interests—both internal and external—of its researchers. The chapter provides an outline for the basic structure of a conflict of interest/commitment policy:

• The purpose of the policy and applicability: the preamble of the policy should reiterate the primary mission of the institution and indicate in general terms how the institution views the balance between internal and external activities and the potential for developing conflicts.
• Definitions of key terms are typically provided to ensure the policy’s clarity. For example, the definition of “significant financial interests” should be explicit.
• The policy statement should clearly describe acceptable and prohibited activities, requirements for reporting and disclosure, and processes for evaluating and managing specific situations that are not directly addressed by the policy.
• Process, roles, and responsibilities: the policy should clearly describe the institutional processes for disclosing external activities, if there is a requirement to do so, as well as describing the processes for seeking a review and evaluation of conflict of interest disclosures.
• References and links to source documents: a conflict of interest/commitment policy does not exist in isolation but typically relies on the synthesis of a number of source documents.

In addition to the legal reasons to develop and enforce rigorous conflict of interest and conflict of commitment policies, the fundamental reputation of the institution rests on setting and maintaining high ethical standards. The policy itself is more than an essential administrative tool: the analytical process of developing the policy will reveal the institution’s priorities. The process will also clarify what the university considers the appropriate balance of allowed and prohibited activities for achieving the university’s mission(s). Finally, conflict of interest, conflict of commitment, policies will likely need to be tailored such that they conform to specific regional and institutional, and well as legal and political, demand and needs. Hence, although the basic principles are constant, effective and appropriate management will vary depending on specific circumstances.

Key Implications and Best Practices

Given that IP management is heavily context specific, these Key Implications and Best Practices are intended as starting points to be adapted to specific needs and circumstances.

For Government Policymakers

• Public sector research institutions can, and should, remain faithful to their missions of serving the greater public interest, even as they seek IP protection and pursue commercial development of inventions arising from their programs. Encourage and support these initiatives, but also stress the need for conflict of interest and commitment policies and guidelines. The integrity and reputation of these national institutions must be so preserved.

For Senior Management (university president, R&D manager, etc)

• An institutional conflict of interest, conflict of commitment, policy is essential in order to safeguard the institution’s reputation and also ensure that the institution remains faithful to it mission and does not stray towards the prioritization of ancillary activities.
• Drafting of an institutional conflict of interest, conflict of commitment, policy will involve a thorough reanalysis of institutional priorities and an assessment of the appropriate balance between institutional interests and the interest of researchers.

For Scientists

• Work with your institution’s technology transfer office so as to understand what constitutes a conflict or interest or conflict of commitment situation. This will be particularly important if you are involved in licensing of your program’s technology or participating in a startup company based on technologies you have created.
• Your participation in licensing negotiations or establishing startup companies may (depending on your level of involvement) require substantive review. Understand that this is a standard operating procedure, designed to protect the integrity and reputation of your institution.

For Technology Transfer Officers

• Management of conflict of interest and conflict of commitment involves ethical, legal and practical managerial considerations. Understand how these should be managed, particularly within the context of your institution’s conflict of interest, conflict of commitment, policy, guidelines and procedures.
• Instruct your staff and your institution’s scientists on the fundamental principles of conflict of interest and conflict of commitment. They need to understand and be aware of these issues. They will then be capable of more readily identifying potential conflicts. All too often, conflicts of interest or commitment quietly creep up.
• As IP management and technology transfer grow in importance in your institution, so will the potential for conflicts of interest and commitment. Remain alert to this, and preemptively manage such that potentially difficult and complex conflict and interest, or conflicts of commitment, situations are averted as early as possible.