A Legal Study on Conflict of Interest in Research Commercialization at Government-Funded Science and Technology Research Institutes

This study examines the commercialization of research conducted by government-funded science and technology research institutes (hereinafter referred to as 'science and technology research institutes') and the associated legal frameworks for preventing conflicts of interest. The aim is to analyze the perceptions within the research community and propose legal improvements. Science and technology research institutes are tasked with not only conducting scientific research but also promoting technology transfer and commercialization for the dissemination and utilization of research outcomes. However, this process may involve personal interests or commercial activities, which can lead to conflicts of interest. Notably, since the implementation of the Act on the Prevention of Conflict of Interest in 2022, issues related to technology transfer and commercialization have been raised, necessitating a thorough review. The perception survey conducted within the research community revealed differences in views on research commercialization between science and technology research institutes and other organizations, with the potential for conflict of interest concerns posing a more significant barrier in the former. Additionally, research-oriented companies and researcher-founded startups reported experiencing limitations in collaboration due to conflict of interest concerns. The proposed legal improvements include: first, the establishment of explicit provisions related to researcher entrepreneurship within the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes to provide a clear legal basis for proactive efforts; second, a reconsideration of the application of the Act on the Prevention of Conflict of Interest to science and technology research institutes, with the consideration of exceptions or exclusions reflecting the unique nature of research and development; and third, the suggestion to utilize existing laws, such as the National Research and Development Innovation Act, to establish autonomous conflict of interest management systems within these institutes. These measures aim to strike a balance between the public responsibilities of research institutions and the social utilization of research outcomes, ensuring that researchers can actively commercialize their research while fulfilling their ethical responsibilities.