Published in: OECD, Turning Science into Business: Patenting and Licensing at Public Research Organisations, 203-222, Paris: OECD, 2003.Current social and economic trends, dominated by market globalisation, technological innovation and the economics of information and knowledge, have renewed interest of both policy makers and social researchers in intellectual property rights (IPR) regimes (Maskus, 2000). In the specific field of scientific and technological research, IPR concerns are the protection of knowledge produced through international co-operation (EC, 2002a), the role of S&T policies (EC, 1999) and the management of IPR in the context of publicly funded research (EC, 2002b). The management of IPR in public research organisations (PROs) has been addressed mainly through legal protection and commercialisation of their scientific and technological research activities (OECD, 2002a; 2002b). Discussion of IPR and knowledge management in public research organisations (PROs)2 might be framed as part of a broader debate including: i) patterns of interaction and co-operation between academic research and business organisations; ii) alternative funding sources of R&D activities conducted by PROs; iii) the impact of strategic science and technology (S&T) policies; and iv) the legal framework for IPR protection. This chapter argues that the increasing relevance of strategic use of IPR in PROs is the combined effect over the last 15 years of three processes. First, the growth of the public research system (Muñoz et al., 1999). Second, the increasing relevance of “external funding”, either from public competitive sources such as the national R&D plan and the EU RTD framework programmes or business funding (Sanz-Menéndez and Cruz, 2003). Third, the emergence and consolidation in these institutions of technology transfer offices (TTOs) aimed at fostering technology transfer and creating economic value from scientific research. Consequently, IPR management in Spanish PROs is related to the increase in the relevance of contract-based research which lead to the growth of patent applications, licensing agreements and exploitation of IPR by these institutions. Thus, protection of research outcomes and effective management of IPR in PROs are likely to be strongly associated with an increase in targeted research, funded with a view to competitive advantage, and more specifically with a tightening of the relationships between PROs and business firms. These trends cannot be isolated from the development of research management capabilities within PROs, commonly in their TTOs.Peer reviewed