Assigning inventions to TTOs
TTOs will not diminish transaction costs associated
with having to obtain Government permission to
patent or license inventions, nor will they give
univ-ersities control over the inventions made by
their employees. Therefore, the two principal factors
underlying the success of the US Bayh-Dole system
are not present in the new TTO system.12 As in the
USA, TTOs will have incentives to concentrate
scarce resources on licensing a few promising inventions
while ignoring inventions with less immediate
commercial potential.