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2010 UNESCO-WTA International Training Workshop on Science Park and Technology Business Incubator:

Triple Helix Model of Innovation: Government-Academia-Business cooperation

▪ Date. November 3-6, 2010 ▪ Venue. Conference Hall, Daedeok Innopolis, Daejeon, Korea

Supported by the cooperation of UNESCO, WTA and ISESCO

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Published November 2010 Copyright@ World Technopolis Association (WTA)

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

Table of Contents

Keynote Lectures.

Lecture 1. 7 · Dr. Clotilde Fonseca (Minister of Science and Technology, Costa Rica)

Lecture 2. 9 Triple Helix Model of Innovation: Government, Academia, Business cooperation ·Prof. DeogSeong Oh (Chungnam National University, Rep.of Korea)

SESSION 1. Innovation model in Government sector

▪ Lecture 1-1 45 The Innovation Platform for the Medical Device Industry in Kaohsiung Science Park · Prof. Shiann-far Kung (National Chengkung University, Taiwan)

▪ Lecture 1-2. 61 Mubarak City for Scientific Research and Technology Applications: Governmental Experience for Science Park Development · Prof. Yasser R. Abdel Fattah (Mubarak City for Scientific Research and Technology Applications, Egypt)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

SESSION 2. Innovation model in Academia sector

▪ Lecture 2-1 81 The Triple Helix: International Cases and Critical Summary · Prof. Fred Young Philips (Alliant International University, USA)

▪ Lecture 2-2. 105 Science and Technology Parks and Incubators to Promote University - Industry Collaboration in Iran · Prof. Mostafa K. Eghbal (Tarbiat Modares University, Iran)

▪ Lecture 2-3. 117 Current State and Prospects for Government-Academia-Industry Cooperation in Japan from the Point of View of Academia · Prof. Sang-Ryong Cha (University of Nagasaki, Japan)

SESSION 3. Innovation model in Business sector

▪ Lecture 3-1 137 The Role of University in the Triple Helix Model: The Practice in China · Dr. Herbert Chen (Tsinghua Science Park, China)

▪ Lecture 3-2. 147 Arrangement of actors in the Triple Helix Innovation · Mr. José Alberto Sampaio Aranha (Genesis Institute of PUC-Rio, Brazil)

▪ Lecture 3-3. 159 A Tale of Two 3-Helix like efforts in Malaysian Bio-technology Industry · Prof. Avvari Mohan (University of Nottingham, Malaysia Campus, Malaysia)

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

SESSION 4. Country Presentation 175 15 case studies on STP developments in 13 countries: Algeria, Brazil, Indonesia (part 1,2), Malaysia, Mongolia, Nepal, Nigeria (part 1,2), Palestein, Syechelles, Sri Lanka, Taiwan, Tanzania, Thailand

4-1. M. Abdallah Khellaf (Director, Hydrogen Division, Development Centre for Renewable Energy, Algeria) 4-2. Flávia Martins de Barros (Manager, Access to Innovation and Technology, Brazil) and Mr. Claynor F. Mazzarolo (CEO, Instituto Brasilia de Tecnologia e Inovação (Technology and Innovation), Brazil) 4-3. (part 1) Mr. Jangkung Raharjo (Director of Bandung Techno Park, Indonesia) and (part 2) Mr. Wisnu Sardjono (Director of Regional Research, S&T Program, Ministry of Research and Technology (RISTEK), Indoenesia) 4-4. Dr. Lim Li Sze (Manager, Science & Technology Unit , Sanggar SAINS Sdn Bhd; sains@usm) 4-5. Ms. OTGONCHIMEG Buyanjargal (Officer of Policy and Planning Unit Information, Communications Technology & Post Authority (ICTPA) , The Government of Mongolia) and Ms. OYUNCHIMEG Shagjjamba (Deputy director – System Integration Unit) 4-6. Baburam Ranabhat (Executive Director, Industrial enterprise Development Institute (IEDI), Kathmandu, Nepal) 4-7. (part 1) Dr. Abdulmalik Ndagi (Director General, Niger State Industrial Parks Development Agency, Governor’s Office) and (part 2) Prof. James Chukwuma OGBONNA (Head, Science, Engineering Technology Incubation Center, University of Nigeria) 4-8. Ms. Eng. Safa’ Seder (Testing Lab Manager, Marble & Stone Center, Palestine Polytechnic University) 4-9. Mr. Barry Assary (Manager, Project Development for Small Businesses, Seychelles) 4-10. Mr. Sunanda Gunasekara (Manager, Sri Lanka Institute Of Nanotechnology Pvt Ltd, Sri Lanka) 4-11. Ms. Cheng, Hsiu-Jung and Mr. Yeh, Jong-Kuan, STSPA Planning Office Southern Taiwan Science Park Administration, Taiwan 4-12, Dr. Raphael, L. M. Isingo (Director, Centre for The Development and Transfer of Technology, Tanzania Commission For Science and Technology, Tanzania) 4-13. Mr. Sompong Petroch (Manager, The Southern Thailand Science Park, Prince of Songkla University, Thailand)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

2010 UNESCO-WTA International Training Workshop Project Steering Committee

Chairman Dr. Deog-Seong Oh, Secretary General of World Technopolis Association (WTA)

Members Dr. Lidia Brito, Director, Division for Science Policy and Sustainable Devloment, Natural cience Sector, UNESCO Dr. Hadi Azizzadeh, Deputy Director General of ISESCO1 Dr. Byung-Joo Kang, Director, UNESCO-WTA Technopolios Development Center Dr. Taek-ku Lee, Director General, Economy and Science Bereau, Daejeon, Korea Dr. Malcolm Parry, General Manager, Surrey Research Park, Guilford, UK Dr. Jong-Deuk Kim, Professor, KAIST, Korea Dr. Mostafa K. Eghbal, Tarbiat Modares University, Iran Dr. Yasser R. Abdel Fattah, Mubarak City for Scientific Research and Technology Applications, Egypt Dr. José Alberto Sampaio Aranha, Genesis Institute of PUC-Rio, Brazil Dr. Fred Young Philips (Alliant International University, USA)

Coordinator Dr. Yoslan Nur, Science Policy & Sustainable Development Division, UNESCO Mr. Insup Yeom, Program Manager, World Technopolis Association (WTA)

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

KKEEYYNNOOTTEE LLEECCTTUURREESS

LECTURE 1

Dr. Clotilde Fonseca (Minister of Science and Technology, Costa Rica)

LECTURE 2

Triple Helix Model of Innovation: Government, Academia, Business cooperation

·Prof. DeogSeong Oh (Chungnam National University, Rep.of Korea)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

SSEESSSSIIOONN 11

Innovation Model in Government sector

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

Lecture 1-1

The Innovation Platform for the Medical Device Industry in Kaohsiung Science Park

Shiann-Far Kung and Yung-Chi Yen

Department of Urban Planning, National Cheng Kung University, Tainan, Taiwan

Abstract

The aim of this paper is to describe and analyse a new approach evolving in southern Taiwan to promote innovation and link science park development with local industrial reconstruction. It is generally expected that science park may greatly enhance the regional innovation environment that in turn attract high technology business investment and contribute to the transformation of local industrial structure and result in the regional prosperity. However, theories and practice have shown that technological innovations and business investments are both distributed and collective learning processes generated through interactions among heterogeneous agents. “Structure holes” often exist within these complex processes and may become the main reason for the failure of innovation and lack of investment. In this paper, the authors consider that the evolving “innovation platform” for the development of medical device industry in the Kaohsiung Science Park (KSP) is a promising model in solving the issues. It has evolved through the idea of fulfilling the local demand of upgrading its existing industry with the development of the new science park KSP, and the target medical device industry is expected to be linked with the existing metal industry. However, there are significant gaps in expertise, culture, knowledge type, and participators between them. Although a relatively new model, investment records already exhibit some positive effects. The authors have conducted interviews to some key persons involved in the model, and based on these preliminary studies, tried to analyse the mechanisms of innovation platform. Within the innovation platform, Science parks collaborate with local research institution MIRDC which acted as a “gatekeeper” to eliminate the geographical barriers and social heterogeneities among different players, and help to construct “public communication space” for the stakeholders, thus contributed to the high technology investments that are beneficial to both the KSP and the local industrial communities.

Key words: innovation platform, medical device industry, regional systems of innovation, Southern Taiwan Science Park (STSP), Kaohsiung Science Park.

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

1. Introduction

“Innovation platform”, literally translated from Chinese “Chuang Hsin Ping Tai, 創新平台”, is a term used by a group of people who have been involved in the creation of an industry-specific and region-oriented innovation network in southern Taiwan. The major driving force triggered the innovation platform has been the objectives of linking and speeding-up the co-development of a new science park and the existing local industries. Thus, the government, industries, and the research institutions are organized as a “triple helix” consortium, and the ultimate goal is to lay sound foundations for new industries that are suitable to utilize new technologies to transform the existing industrial base of the region. The industry selected was the medical device industry, to be developed in the Kaohsiung Science Park (KSP) and its neighbouring area. The author encountered this emerging and evolving regional innovation system recently, we are still in the preliminary phase of understanding the mechanisms. This paper will try to explain what we have learned to-date concerning why the medical device industry was selected, how to locate at KSP sphere, and what role has the innovation platform played?

The medical device industry is comparatively a new industrial sector all over the world, even the major associations in the USA, for example, MDMA and MassMEDIC, have been established only since the 1990s. However, it is widely recognized as very potential in the future, basically because of the global increase of ageing population as well as the rising awareness of the value of health. As a new industrial sector, the boundary of the industry is still shaping and major countries have different definition of the industry. Yet, there are common features that the products are used for the physical treatment of patients in diagnosis, therapy or surgery. While the products do not exert biochemical effects, there exist intensive technological inputs and interactions from biotechnology, microelectronics, optoelectronics IT and precision machinery. Different research estimated the global market of medical devices at about 200 billion US dollar per year between 2006 and 2008, with an annual growth rate between 6-9%. In Taiwan, the medical device industry was also assessed as one of the very promising industries that Taiwan may feature in the global market, and the central government of the Republic of China has included it in the list of new and strategic industries (MOEA, 2008).

The KSP is established in 2003 as the second site managed by Southern Taiwan Science Park Administration (STSPA). The first site managed by STSPA is Tainan science Park (TSP) which was developed in 1997, and is now a sizable high technology industrial agglomeration with three major clusters: TFT-LCD, semiconductors and biotechnology (Kung et al, 2006), total employment in the TSP is more than fifty thousand in 2009, and almost all the industrial land parcels are leased out, there is no room for large scale industrial expansion in the TSP. The distance between KSP and TSP is about twenty kilometres, there had been ideas of utilizing KSP as a spill-over site for the fast expanding TFT-LCD industry in TSP several years ago, however, the stronger calls from both local communities and STSPA expected that KSP should construct some core industries of its own, preferably, some new industries that may have closer relationships with the existing industries and may act as catalyst to transform local economy.

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

Before the establishment of KSP, Kaohsiung has been the major steel and petrochemical industrial centre in Taiwan since the completion of three major economic construction projects: China Steel Corporation, China Ship Building Corporation and the petrochemical plants in the late 1970s. With the variety of materials and the convenience of the biggest harbour of Taiwan, metal works and precision machinery SMEs have clustered in Kaohsiung and the southern Taiwan region, and are still a significant industrial sector in the early 21st century (Yen and Kung, 2008); besides the industrial firms, there is a Metal Industry Research and Development Centre, originally established by the Ministry of Economic Affairs (MOEA), in Kaohsiung. Yet, with the uprising industrial competition from China and ASEAN countries, many of these SMEs have to find new ways of production or higher value-added and more sophisticated products if they choose to stay instead of moving out to other lower cost countries. For those who decided to stay and transform, they need innovation to move up the market ladders. Therefore, the previous model of introducing new high technology industries that have little industrial linkages with existing local industries, as Hsinchu Science Park and Tainan Science Park had shown, is not considered to be locally beneficial. Indeed, most of the target industries in the KSP agenda were not seen as potentially having strong local linkages by the local industrialists in the beginning, the medical device industry was not an exception; however, through the collaborative efforts of STSPA and MIRDC, there are signals that it may make a difference. In the following passages, section 2 is a brief literature review and some further description of the situations that KSP has faced. Then, using information gathered from interviews and complimentary secondary data, section 3 will analyse how the innovation platform works in terms of institution operation, interaction among actors, and the flow of innovation resources. Finally, we attempt to conceptualize this innovation model into some design principles.

2. The Idea of science parks in attracting business investment by promoting innovation

A science park is a planned area for high technology firms, usually located nearby knowledge institutions such as universities and research institutions, in the aim to convey the knowledge spill-over effect through spatial proximity and agglomeration economies. There is a rich literature concerning the importance of proximity between science parks and university laboratories and other research centres, and the resultant collective learning process that the nearby firms have the advantage of easier access to scientific expertise and research results, and then it will facilitate transfer of research into commercial application, Stanford Research Park and Cambridge Science Park are among the most commonly cited cases along this front (Saxenian, 1994; Audretsch and Feldman, 1996; Vedovello, 1997; Audretsch, 1998; Keeble and Wilkinson, 1999). In this thesis, knowledge transfer and technological innovation between academic institutions and “knowledge-intensive” establishments may encourage the birth of high technology start-ups and growth in science-based or high-technology sectors (Komninos, 1998; Phillips, 2002), thereby enhance economic growth in the region (Cooke, 2001). Nevertheless, there are other empirical studies that criticised the widely expected benefits of science parks did not realised in some cases (Shearmur and Doloreux, 2000; Bakouros et al., 2002; Siegel et al., 2003). What may be concluded from theses different findings is that the benefits of a science park to its surrounding

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

region do not reveal automatically in all places in short terms, there is a need to plan and design suitable strategies to trigger of enhance the synergy effects.

Taiwan is not a new hand in promoting industrial innovation; there are at least three broad categories of projects that aiming at facilitating industrial innovations with universities and research institutions. The first is the establishment of industry-oriented research institution; perhaps the most frequently cited case is the Industrial Technology Research Institute (ITRI) which is founded by the Ministry of Economic Affairs (MOEA) in Hsinchu in 1973 by the merger of three previously established smaller industrial research institutes. ITRI has played very important role in the development of high technology industries in the HSP and the Hsinchu region. The second type is the innovation centre, first established in the HSP in the mid-1980s, and then promoted by the MOEA since mid-1990s, the official statistics of MOEA shows that there are 116 innovation centres all over Taiwan in 2009, most of them are associated with universities, science parks and research institutions. In the Southern Taiwan Science Park, the STSPA Innovation Centre is operated by a specialist team from National Cheng Kung University (NCKU). The third category is the industry-academy collaboration projects; the early version of this type has existed since the 1960s, which is more focused on providing internship opportunities to the technical and professional schools; Since the late 1990s the Ministry of Education (MOE), the National Science Council (NSC) and MOEA have initiated new types of industry-academy collaboration projects with emphasis on the “industrial research”. In these new projects, interested companies and academia initiate a joint research proposal to the prospective ministry, if the proposal is approved, the ministries and the participating companies jointly provide the research fund, and the university and the company conduct the project together with the aim of exploring technological solutions which are interesting to both the company and the academia.

When the KSP was established, it is well located between the two major metropolises in southern Taiwan – Tainan and Kaohsiung, and all the innovation promotion projects mentioned above are already existent. When the idea of developing medical device industrial cluster was coined, it was well surrounded by abundant industrial, higher education and research resources. According to the official website of KSP, these include: major teaching hospitals such as NCKU Hospital, Kaohsiung Medical University Chung-Ho Memorial Hospital (KMUH) and E-Da Hospital, among others; more than ten good universities such as the National Cheng Kung University (NCKU), National Sun Yat-Sen University, Kaohsiung Medical University, among others, and two industrial parks which are specialized in metal related industries – Yong-An Industrial Park and Benjhou Industrial Park. It seems that all the positive forces are in place. However, there are two major issues: firstly, distance matters, and the secondly, social heterogeneity.

In terms of spatial distance between the KSP and research resource, the nearest are the Private I-Shou University and its E-Da hospital, located about eleven kilometres to the southeast of KSP; the direct distance between the key research university in the south - NCKU (and its teaching hospital) and KSP is about fifteen kilometres, all the others are around or more than twenty kilometres away. Such geographical distances are considered “far” in Taiwan, and would be difficult to generate innovation links “naturally”. In contrast, the two industrial parks are very near, their direct distances to

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

the KSP are both around one kilometre; however, Yong-An Industrial Park is dominated by metal works and traditional industries, Benjhou is one of the three environmental technology parks in Taiwan, the two industrial parks and the surrounding area is described to be a major metal industrial district with quite complex and complete industrial chain; yet, the characteristics of firms in these industrial parks are suppose to be different from those in the KSP. In terms of park management, Yong-An is administered by the MOEA, Benjhou is monitored by the Bureau of Environmental Protection Agency, while the KSP is managed by the STSPA, under the National Science Council. Clearly, KSP is situated at a place without proximity to research resources or strong sense of industrial community. Obviously, there is a need for some efforts to overcome the geographical and social barriers.

Unlike the HSP which is located near the capital city Taipei where most of the public and private research resources are easily accessible, and the ITRI, the largest industrial research institute in Taiwan, is right to the next door of HSP; southern Taiwan has more agricultural research institutions, the only sizable industrial research institute was the Metal Industry Research and Development Centre (MIRDC). MIRDC was originally initiated and funded by the United Nations as a five-year special project to assist the development of metal industries in Taiwan in 1963, and transferred to the Government of the Republic of China in 1968 when the project was completed. It was reorganized and renamed as MIRDC in 1993, with a total work force near seven hundred in 2009, more than sixty percent of the workforce hold PhD or Master’s degree. In 2007 it won the Preliminary Planning Project to Revitalize Traditional Industries in Southern Taiwan which brought it to start collaboration with the STSPA in the incubation and introduction of medical device industry to KSP. Although this is a relatively small project for the MIRDC, but this is important to both MIRDC and, perhaps even more to, the KSP.

For a period of time in the beginning stage of the KSP, its target industries had been not very certain. The HSP has a clear advantage in microelectronics, especially the semiconductor, IC foundry, IC design, and computer and peripherals; the TSP has established a very strong TFT-LCD and its related precision machinery industrial clusters, and a sound foundation in biotechnologies; and the Central Taiwan Science Park had a location advantage of receiving the spill-over effects from the very strong high technology industrial base in Hsinchu and the northern Taiwan. The KSP has never been happy with the proposal of being an extension site of the existing industrial cluster in another science park. The idea of developing medical device industry is welcomed because it is not yet well developed in any other science park or industrial park, and it is potential to link the KSP with local industrial base. Therefore, the STSPA designated an area of 30 hectares in the KSP as the Kaohsiung Medical Device Special Zone (KSMD). With the Preliminary Planning Project to Revitalize Traditional Industries in Southern Taiwan at hand, MIRDC is naturally a good partner, and in addition, it has very good relationships with major universities in the region, and especially with NCKU, not only because of it has been the main source of researchers in MIRDC but also because of key personnel linkages. As NCKU is the top university in the south with a world leading engineering college, the highest ranking teaching hospital in the region and the earliest medical engineering research institute in the South, it has also operated the Southern Taiwan Innovation Centre for the STSPA, the

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

collaboration is firmly build upon administration, institutions and industries that already familiar with each other, and result in the formation of “innovation platform”.

To the STSPA managers, there is another issue: how to attract tenants as soon as possible. This is an issue commonly shared by many science park managers since long. The science parks in Taiwan had been relatively successful in attracting firms to fill the premises; however, the situation has changed since the beginning of the Millennium, not only because of the increasing competition from new science parks in the Mainland China or the neighbouring Asian countries, but also because of the increasing domestic supply. The great leap of sites and area has given heavy burden to the special fund for science park development in general and high pressure to the individual administration and park managers in particular. But, in any case, the speedier land leasing cannot sacrifice the ultimate goal of developing high technology industries. Therefore, given the size of KSMD, the introduction of very small start-up firms used to be adopted by the traditional innovation centre idea would be insufficient to reach the financial goal of land development. This implies that the innovation platform has to think even beyond common technological innovation, that is, how can the platform generate high technology firm that is capable of occupying sizable area and operate as soon as possible rather than just renting a lab-like space and start the process of business incubation.

Concept like regional system of innovation (RSI) provides an important inspiration, and the local entrepreneurial tradition also played a role in this new experiment called innovation platform. The RSI is understood as a system of innovation networks located within a certain geographical area, in which firms and other organisations are systematically engaged in interactive and collective learning through an institutional milieu characterised by social-economic linkage (Cooke and Morgan, 1998). The member of the linkage may come from the global or local actors. Both strong and weak linkages are important to innovation. Strong linkage (formal and informal relationship) includes a common language and high level of trust, whereas weak linkage (formal relationship) enables the flow of novel information to the system (Capello and Morrison, 2009). Innovation is, in practice, a collective process that entails the coordination of distributed knowledge across diverse strong or weak linkages, when they have the big gap or difference in trust, place characteristic, firm characteristic, knowledge type, and knowledge infrastructure (Figure 1), the operation of RSI will result in a “structure hole” (Kallio et al., 2009; Tödtling and Trippl, 2005; Viljamaa, 2007). Science park or its collaborate institutions could play a strategic role in the formation of RSI and the innovative performance of firms via bridging the structure hole through supporting, stimulating, and increasing the number of channels through which knowledge develops at both local or global level. In other words, STSPA could be a “gatekeeper” within the structure hole for the formation process of collective learning system such as A→B→D, A→C→D, B→D, and C→D (Figure 2).

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

Place Knowledge Characteristic Type TRUST Firm Knowledge Characteristic Infrastructure

Figure 1: the attributes affecting the operation of innovation system

Strong Global Linkage

Weak Strong Local Local Linkage Linkage

Weak Global Linkage

Figure 2: Science Park and collective learning environment (modified from Capello and Morrison, 2009)

The role of gatekeeper is like a “public good” and “intermediary” (Baxter and Tyler, 2007; Lester and Piore, 2004). The goal of the gatekeeper is to provide a “public space” to integrate diverse resources, to break different boundaries, and reduce the waste of the transaction cost, negative externalities and risk of failure in the structure hole. In the following section, we will use STSP as the case to analyse how it could be a gatekeeper to fill in the structure hole, to integrate and distribute different innovation resources, and to promote the localized collective learning (A→B) and non-localized

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

collective learning (A→C) by innovation platform. By providing the good environment and services for innovation, it could attract firms to locate in science parks.

3. Innovation Platform in KSP - the Case of MD industry

3.1 The production chain of MD industry

Industrial R&D is not as simple as a linear model that an industrial product in the market started from basic knowledge or idea, through design and testing, prototype development, manufacturing processes, and then marketing and selling to the customers. However, it is easier to utilise the linear model to analyse the gaps between major production processes, in the case of MD industry in Kaohsiung area, it may be shown as Figure 3, at least three big gaps existed and which are very difficult for a single small or medium-sized firm to deal with alone.

GAP 1 GAP 2 GAP 3

Clinical Design Clinical Idea 原型設計 Valid ation Manu- Brand 與尋找標的 facturing Market Research Testing Launch

Figure 3: the gaps in the production process of MD products

A. Gap 1 To produce high-level MD products needs firms to upgrade their original technology or develop a new technology, and to get the market information and consumer needs, which often takes long time and large investment to integrate complex idea, technologies, and researches. From the supply side, it needs to combine diverse technologies coming from HI, TI, and medical industries (MI) (Figure 4). However, in the HI like electronics and IT, knowledge inputs (as shown in Table 1) are often derived from reviews of existing research, and knowledge generation is often radical in nature and based on the application of widely shared and understood scientific principles and methods through formal R&D activities. In contrast, the innovation of TI is often based on the application or novel combination of obtainable knowledge with low levels of R&D. They are largely incremental and often arise from the firms’ persistent efforts to satisfy requests from customers. In addition, MI has high professional and closed-market characteristics; and then it is very different in the distributing and sharing knowledge with the other industries. From the demand side, doctors, hospitals and consumer are the main user of the MD products. Clinical information about patients is highly complex, not easily codified and prone informal transmission (Gittell and Weiss, 2004). Unless MI, HI and TI doesn’t have channels to connect with them. Therefore, although Taiwan has high reputation of manufacturing in product quality, complete industrial chain and international production network, the relationships between each other have less intersection and the

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

knowledge type is also very different. Moreover, it is difficult to find the proper channels to cultivate human resource and technological innovation, thus forming a kind of structure hole.

Supply Side Demand Side

Figure 4: The supply and demand sides in the MD industry

Table 1 A comparison of characteristics of different industries

Traditional Medical Device High-tech Medical Industry Industry Industry Industry (TI) (MD) (HI) (MI) Old Industrial Place Metropolitan Metropolitan Metropolitan region Characteristic region region region Peripheral region Low and Technology Low and Medium high high Medium

Absorptive Low and Low and Medium high high Capacity Medium

Learning Low Low and Medium High High Capacity

Knowledge Tacit Tacit Tacit Explicit Type Explicit

Knowledge Many Few Many Many Infrastructure Close Close Open Close

B. Gap 2

It is very important for the medical product to consider safety and efficiency carefully since it is going to be used in human body for the life-saving and working. US and EU have set up many regulations and legal procedures to ensure proper inspection, verification and management of the quality of biotechnology and medical products before they enter the market. In Taiwan, it is getting more serious because

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

there are so many firms and research institutes knowing how to apply these complex procedures from different counties, although we have a lot of experiences to apply patents of high-tech manufacturing in different foreign counties. Therefore, due to the high product certification and competition, it is not easy to estimate whether the product can pass the examination or when the product can enter the market. These may result in high operation cost, low survival rate and high entrance barrier for the small and medium sized firms in the early stage.

C. Gap 3

In the past, Taiwan has fought very hard to gain market access to the world through its capacity in OEM/ODM production; such as the steel and metal products in the traditional sector and electronics and IT products in the high-tech sector (Amsten and Chu, 2003). It has also learned through sweaty practice that marketing and branding are even harder than manufacturing. Yet, the MD industry of Taiwan is still in the emerging stage, not even a major OEM/ODM manufacturer in the global market. With the much stricter regulations on MD products, without a brand name that is familiar to the hospital or major end users, the gap between manufacturing and selling could be very wide.

3.2 The Innovation Platform and its gatekeeper

Especially in the research parks of North America, universities have played important role as the source of innovation, and usually also played a role like the gatekeeper to foster the innovation and spin-off. In contrast, in Taiwan, the science parks are built by the central government, the park administration like STSPA do not have sufficient capacity to play as a gatekeeper, nor do they have the flexibility like private developers; however, the STSPA has worked hard since its establishment to link and serve the local stakeholders, thus has accumulated enough trust among different actors in the region. The question is how to make good use of this advantage to fix the difference among four elements and integrate different resources to foster innovation.

In order to reach the two goals in developing MD industry and upgrading the traditional industries in southern Taiwan region, STSPA developed the innovation platform together with the MIRDC, and commissioned subsidy projects to the MIRDC to enable the latter as the gatekeeper. Because the MIRDC has had the needed local and global networks with academia, traditional industries and high technology industries, and it is familiar with all the national industry-academy project systems, therefore, it can further extend the trust from STSPA to the operational gatekeeper. The platform encompasses the set of components and rules, and may be described as follows:

A. Platform providers: National Science Council (NSC) and Ministry of Economic Affairs (MOEA)  Providing the fund to support the operation of platform..

B. Gatekeeper: Planning office (PO) composed of STSPA and MIRDC.

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 Responsible for determining who could participate in a platform network,  Contracting that specify terms of trade and the rights and responsibilities of network participants,  Developing its technology,  Setting up operation rules such as how to govern information exchange, innovation resources, and knowledge transfer.

C. The core systems: Technology Service and Product Service System. The subsystems are  Clinical Information Platform;  Technology Merging Platform;  Product Promotion Platform;  Certification Platform.

D. Supply-side users of the platform: Universities, medical schools, medical research centres, hospitals, and regional and local research institutes.  Offering complements employed by demand-side users in tandem with the core platform.

E. Demand-side users of the platform:  Firms from TI, HI and MD industry, commonly called the end users.

F. Other support system:  Capacity building, technical training and educational activities.

Table 2: the responsibility and information of innovation platform

Supply-side Core system Subsystem Mission users Clinical  Increase the information exchange during Information R&D  MC Platform  Setting up the professional team  HO (CIP)  Evaluation the clinical testing Technology  Analyse the key technology in developing Service Technology MD industry  UNI Merging  Studying and selecting proper firms  RI Platform Merging the proper firms (TMP)   Firms  Explaining and diffusing R&D results

 Setting up one window operation model Product  Integrating the existing certification Product Certification  RI resource Service Platform  UNI Setting up GLP laboratory (PCP)   Setting up GLP certification

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

 Participating the international exhibition Product and information exchange Marketing  Raising the industrial image  RI Platform  Setting the common marketing (PMP) mechanism  Planning the product exhibition site Note: MS: Medical Centre, HO: Hospital, UNI: University, RI: Research Institute.

MEA NSC (CG) (CG) KC (LG) PPP ＄＄

PCP Assistance Firm MIRDC Planning STSP Firm1 TMP (Industry) (KI) Office (CG)

CIP CIP Clinical CIP Information TMP TMP TMP TMP Platform PCP PCP Technology TMP Merging MD Univ. •MS Platform Clusters (KI) •MC Product In STSP PCP Certification Platform Product P A provide B PMP Marketing through Platform 2 Platform

Figure 5: Operational mechanism of the innovation platform for KSMD

A tentative model of the innovation platform in the KSP may be described as Figure 5, and the major operational mechanism is composed of the following parts:

1. STSPA use innovation platform as the environment to integrate different resources (fund, idea, and services) from different actors to reduce the negative externalities (structure hole) from production to marketing; 2. STSPA choose right local research institution with capacity of running R&D by themselves, transferring and diffusing different type of knowledge, and organizing social network as the gatekeeper to fill in the gaps within structure hole;

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3. Evaluating the feasibility to imitate the existing products by combining or upgrading the technologies from existing firms based on the concept of industrial clusters and technology base; 4. Planning Office constructing the dense connection with final product user such as Hospital and Medical Centre to understand and make sure the firm’s future market; 5. Transferring the direction of some university’s research from fundamental research to innovation of production technique; 6. The incubation of high technology business is not, as traditional, through the innovation centre as incubator, but rather using the science park as the incubator directly; 7. Activate, rather than passively waiting for, the leading manufacturers in the domestic market to apply industry-academy collaboration projects; 8. Acknowledging and persuading the industry side applicant of the industry- academy collaboration project to promise, upon the completion of the project, to invest and establish production plant in the KSP.

Judging from the result, the innovation platform seems to have yielded some positive effect. In 2010, there are 22 firms approved to enter in the KSP, and within these 10 firms actually engaged in plant construction and production, and four of them have been upgrading from traditional industries. It is maybe too earlier to conclude, and the authors’ have just started the examination of the platform since the mid-2010, there are still much to be learned.

4. Concluding Remarks

The value of science parks may be evaluated from different perspectives. In the case of Taiwan, albeit with a success in the development of a fast growing high technology industrial community in the HSP, it had been often criticised as the prosperity at the cost of creating a divided region in the early stage. Therefore, the science park builders and researchers have been continuously trying to make sure that the prosperity is not reserved within the park alone. Much of the effort in the construction and development of the TSP has been paid to the local concerns. However, how to develop new and high technology industries within the existing local industrial base is a continuous challenge; and this is perhaps a widely shared issue to many other science parks in the world.

On the other hand, many industry-academic collaboration programs have been created and transplanted to many places in the world or even adapted to suit local situations, yet, how to realise the potential of the innovations generated from these programs in the market place terms is still much waited. The case of the innovation platform for the medical device industry at the KSP as has been described in this paper, and may be attributed as a collective wisdom simultaneously evolved among the STSPA, the MIRDC, the local industrial communities and the regional HEIs may shed a light on the development of the concerned principles and good practice. Because of the limitation of time and resources, the authors have only touched the surface of this still

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

evolving model; while sharing the tentative findings, the authors would also like to apologise to the readers for the possible misunderstandings and errors.

References

1. Amsden, A. and Chu,W.-W. (2003) Beyond Late Development: Taiwan’s Upgrading Policies, MIT Press, Cambridge, MA. 2. Audretsch, D, and Feldman, M. (1996) R&D Spillovers and the geography of innovation and production, American Economic Review, 86(3):630–640. 3. Audretsch, D.B. (1998) Agglomeration and the location of innovative activity, Oxford Review of Economic Policy, 14(2), 18–29. 4. Bakouros, Y.L., Mardas, D.C., Varsakelis, N.C. (2002) Science park, a high tech fantasy? An analysis of the science parks of Greece, Technovation, 22, 123–128. 5. Baxter, C. and Tyler, P. (2007) Facilitating enterprising places: the role of intermediaries in the United States and United Kingdom, 6. Capello, R. and Morrison, A. (2009) Science Parks and Local Knowledge Creation: A Conceptual Approach and an Empirical Analysis in Two Italian Realities, in: C. Karlsson et al. (Ed.) New Directions in Regional Economic Development, Berlin & Heidelberg: Springer Verlag. 7. Cooke, P. (2001) Regional innovation systems, clusters, and the knowledge economy, Industrial and Corporate Change, 10, pp. 945–974. 8. Cook P. and Morgan, K. (1998) The Associational Economy: Firms, Regions and Innovation, Oxford: Oxford University Press. 9. Fennelly, D. and Cormican, K. (2006) Value chain migration from production to product centered operations: An analysis of the Irish medical device industry, Technnovation, 26(1), pp 86-94. 10. Gittell, J.H. andWeiss, L. (2004) Coordination Networks within and across organizations: AMulti-Level Framework, Journal of Management Studies, 41(1), 127–153. 11. Kallio, A., Harmaakorpi, V., and Pihkala, T. (2010) Absorptive Capacity and Social Capital in Regional Innovation Systems: The Case of the Lahti Region in Finland, Urban Studies, 47 (2): 303-319. 12. Keeble, D. and Wilkinson, F. (1999) Collective learning and knowledge development in the evolution of regional clusters of high technology SMEs in Europe, Regional Studies, 133(4): 295-303. 13. Komninos, N. (1998) After technopoles, in: J. Simmie (Ed.) Innovation, Networks and Learning Regions?, London: Jessica Kingsley Publishers. 14. Kung, S.-F. and Yen, Y.-C. (2009) A Sustainable Planning Approach for Science Parks: A Case of Southern Taiwan Science Park, WIT Transactions on Ecology and the Environment, 120(1): 141-150. 15. Kung, S. F. et al., 2006, “Planning and Development of High Technology Industrial Cluster: Case of Tainan Technopolis, Taiwan”, International Training Workshop on High-tech Clusters in Global Context (2006 UNESCO-WTA Cooperative Project, Daejeon, 6-11 Nov. 2006), pp. 195-218. 16. Lester, R. K. and Piore, M. J. (2004) Innovation: The Missing Dimension, Cambridge, Mass.: Harvard University Press.

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17. Ministry of Economic Affairs (2008?), Taiwan Medical Device Industry Analysis and Investment Opportunities, Taipei: Ministry of Economic affairs. 18. Phillips, R. G. (2002) Technology business incubators: How effective as technology transfer mechanisms?, Technology in Society, pp. 299–316. 19. Siegel, D.S., Westhead, P., Wright, M. (2003) Assessing the impact of university science parks on research productivity: exploratory firm level evidence from the United Kingdom, International Journal of Industrial Organization, 21: 1357–1369. 20. Saxenian, A. (1994) Regional Advantage: Culture and Competition in Silicon Valley and Route 128, Cambridge, MA: Harvard University Press. 21. Shearmur, R., Doloreux, D. (2000) Science parks: actors or reactors? Canadian science parks in their urban context. Environment and Planning 32(6): 1065–1082. 22. Tödtling, G. F. & Trippl, M. (2005) One size fits all? Towards a differentiated regional innovation policy research, Research Policy, 34 (8): 1203-1219. 23. Vedovello, C. (1997) Science parks and university–industry interaction: geographical proximity among agents as a driving force, Technovation, 17 (9): 491–502. 24. von Hippel, E. (1988) The Sources of Innovation, New York: Oxford University Press. 25. Viljamaa, K. (2007) Technological and Cultural Challenges in Local Innovation Support Activities—Emerging Knowledge Interactions in Charlotte's Motor Sport Cluster, European Planning Studies, 15 (9): 1215-1232. 26. Yen, Y-C and Kung, S-F (2008) An Empirical Study of Identifying Regional Cluster in Southern Taiwan, Journal of City and Planning, 35 (1): 51-78. (in Chinese)

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

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Lecture 1-2

Mubarak City for Scientific Research and Technology Applications: Governmental Experience for Science Park Development

Yasser R. Abdel-Fattah

Acting director of Mubarak City for Scientific Research and Technology Applications, New Burg El-Arab City, Alexandria, Egypt.

Introduction

Many developing countries have recognised the need to adopt a long term economic strategy that shifts some of its focus to developing a more extensive knowledge based economy. To achieve this requires planning at a national level in order to create the right environment in which to integrate the supply of knowledge that derives from investment of national resources in science, technology and education, with demand and to stimulate business and government to utilise the knowledge output and drive this up the commercial value chain. Building a knowledge based economy requires both a relevant supply of technology and demand for this from industry and other customers including government. In some countries there are weaknesses on both sides of this supply and demand relationship as well as at the interface between the two. It is now widely understood that the greatest chance of success in developing these connections on a broad front needs the cooperation between the three stakeholder groups of government, higher education and business. One strategy adopted to create better connections between business and higher education has been to develop science and technology parks. Evidence from international experience shows that the most successful science and technology parks are those which capitalize on existing location factors which influence the capacity for generation of knowledge capital, the capacity to actively engage with this output and the creation of new technology and products (includes services) that find a market. To do this requires scientific and technological competence, relevant social and human capital that can exploit this, markets for the outputs and the right physical facilities in which these linkages can be fostered and developed. Important physical factors in starting this cycle of generation are the role of a high-grade university, the location of a variety of research facilities, the attractiveness of the area to highly-qualified workers and entrepreneurs as a place to live and work and easy access to major cities by an efficient transportation network. The optimal set of components for successful science and technology parks include, as

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

a central component, a university or research centre that provides both the necessary qualified staff and the basic R&D, accommodation for commercial activities, access to technical facilities and support services which focus on giving commercial advice to the companies that locate on the site. In some instances where university facilities are not close enough to where a science and technology park is being planned an alternative has been to locate a research institute on the site as an initial focal point for R&D which can then be developed into a stronger network with other universities and research centres in the region. However, it is also important that in creating these links production capacity is also developed and protected.

In a wider urban planning context it is important that consideration is given to developing a high quality environment in order to improve recruitment and retention of the necessary high-qualified workers and entrepreneurs that are attracted to the site. The current policy framework in Egypt, which also has ministerial support, is favourable for the creation of a number of science and technology parks. That is, there is a fund to support technology transfer, there is a commitment by government to support a range of emerging important areas of scientific research, and a commitment by government to help to modernise the Egyptian industrial base. This is additionally supported by the existence of high numbers of graduates, recognition that there is a need for change and an emerging interest by business in establishing higher value products and services that will help them to modernise and find new markets. A number of early science and technology park initiatives are already underway in Egypt and there is also some longer term planning taking place for others that will build on the initial experience of the earlier projects. These projects are being led by central government. A report of UNESCO on the proposal for a pilot Science Park in Egypt suggested that the science and technology park development programme in Egypt should emphasize links between research and production. One strategy to achieve this is to locate high- tech industrial parks next to the proposed science and technology parks so that the option exists to first attract industrial plants to create an agglomeration of industrial activities. It is therefore recommended that this strategy is adopted for the development of the initial science and technology parks in Egypt. This is suggested because of the

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need to create industrial activity as a pre-cursor to high-tech development.

Context diversity of science parks Over 500 knowledge driven entities exists today in the world in various nomenclature and features such as Science & Technology Park, Research Park, Technopolis, and Knowledge Park etc. In spite of difference in design and intent these all serve the single purpose to drive technology up in the value chain and help create wealth through science and technology led products and services. There are striking differences in the motivation of setting-up the Science & Technology Park though they are targeted to institute wider economic and social changes in the region. Science and Technology Parks have emerged beyond physical infrastructure driven R&D led new businesses to innovation led economic development instrument.

Framework conditions of Egypt Egypt is one of the most leading industrial countries in Africa and in MENA region, with GDP real growth rate of 4.7% (2009) according to CIA World Fact book. The GDP composition by sectors if as follows; Agriculture 13.7%, Industry 37.6%, and Services 48.7% (2009 estimate) with 25.4 million work force where the unemployment rate remains at 9.4%. The distribution of labour force across the sector is as follows: Agriculture 32%, Industry 17% and Services 51%. The major industries are Textiles, Food Processing, Tourism, Chemicals, Pharmaceuticals, Hydrocarbons, Construction, Cement, Metals and Light Manufactures with Industrial Production Growth Rate of 5.1%. “With very limited investments we can exploit our best asset, which is our youth, given that more than half of Egypt’s population is below the age of thirty. We can fill the technological and communications gap faster than we can imagine” Dr Ahmed Nazif, Egyptian Prime Minister. Egypt is having demographic dividend where 62.8% of the population falls within 15-64 years age group with a median of 24 years (male 23.8 ye, female 24.3 yr). About 58 percent of the Egyptian population is under the age of twenty five, and more than 16 million young Egyptians are currently enrolled in primary, secondary and technical education.

Knowledge climate in Egypt Egypt is aiming to achieve a high standard of scientific achievements through institutionalizing science, technology and innovation (STI) system being supported by the presidential decrees. The program for research and development and innovation was established in 2008 to promote economic growth and international competitiveness by improving the performance of R&D and innovation. Science Park, Incubators and Technology valleys have been created to ground the development of innovation systems. In conformity with the main aim of the research policy to reform S&T activities in Egypt, 2006-2017 has been declared as “decade for Science& Technology” with a budgetary allocation of US$ 8.5 billion, The purpose of this decade

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

is to clearly extend the Egyptian government commitment to S&T, enhance scientific cooperation with scientifically advanced countries and strengthen Egypt’s scientific and technological base. STI activities were directed to specific priority sectors and technological areas, which are important for the competitiveness of the economy and for the specific national policies. The identified priority areas by Higher Council Science & Technology are; renewable energy, water resources, health, food and agriculture, space technology, ICT and socio-economic sciences and humanities.

Innovation & Invention Development Sector (IIDS) – It promotes the transfer of technical Know-how and granted patent, invention and innovation through marketing of valuable invention. It aims at pushing forward process of developing national technology through linking the scientific sector with the R&D units in production and services sectors. IIDS highlights the advantages of valid innovations and inventions, it contacts the industrial institutions and others to assess their needs of scientific and technological research, which would yield practical results that, could be successfully implemented and marketed. IIDS cooperates with the Egyptian Patent Office (EGPO) that provides it with granted patents to be marketed to reach the final end user. IIDS is a member of the International Federation of Inventors Associations (IFIA).

Science & Technology Development Fund – It has been enacted in 2007 as a part of S&T Governance Reform initiatives of Ministry of State for Scientific Research. It aims strategically to fund scientific research and technological development in alignment with the priorities set by Higher Council of Science & Technology. It intends to monitor S&T indicators continuously so that Egypt remains competitive in the field of S&T. STDF releases

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funds through two major streams – National Research Grants (NRG) and Joint Research Grants (JRG). STDF also manages International Research Cooperation Funds such as USAID Research Grant (US $ 4 million for 2008-2009), Federal German Ministry of Education & Research Grant (total budget €3.4 million), French Institute of Research for Development (budget €1.8 million), Japan Society for Promotion of Science (L.E 460000), and Arab Science & Technology Foundation.

The overall expenditure on the Egyptian scientific research is lower than the average for developing countries. Governmental funding is considered the main source of funding scientific research in Egypt, besides foreign funding through several economic and scientific agreements, resources devoted to scientific research are modest.

International Cooperation in Science &Technology - Cooperation have been taking place in various forms such as joint projects, sharing of information, conducting and participating in conferences, building and sharing joint laboratories, setting common standards for R&D, and exchange of expertise. The Government policy mainly aims to develop and enhance the Egyptian relations and internal standards to make it compatible with global benchmarks. It promotes networking and delivering appropriate instruments such as signing treaties and agreements and provides necessary finance for the various benefiting governmental bodies in order to implement their projects. Academy of Scientific Research and Technology (ASRT) is a member of the multilateral international organizations of scientists and the Inter Academy Panel for International Issues (IAP), and also a member in the Science and Technology Center for Non‐aligned and Developing Countries (NAM). It is a focal point for the International Center for Genetic Engineering and Biotechnology (ICGEB). ASRT has established bilateral scientific agreements with institutions for scientific research and technological development equivalent to it such as CERN (European Organization for Nuclear Research), DUBNA Joint Institute for Nuclear Research, ENEA (Italian Agency for New Technologies, Energy and Environment).

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Mubarak City for Scientific Research and Technology Applications (MuCSAT) In 1991 the government of Egypt has allocated land and money for constructing the first Egyptian Science Park in the northwest coast of Egypt to carry the name of “Mubarak City for Scientific Research and Technology Applications (MuCSAT)”. At the beginning 100 acres were allocated in the industrial area of New Borg El-Arab City near to Alexandria in which about of 40% of the Egyptian industry take place. Industrial categories of New Burg El-Arab City could be distinguished as follows: paper and wrapping industries (15%), Engineering and constructing (20%), plastic (15%), garments (10%), wood (7%), food and pharmaceuticals (33%).

Paper and wrapping Engineering and (15%) construction Plastic

Garments Wood

Food and pharmaceuticals

MuCSAT was established to realize the vision “to develop technology based economy serving different areas of human life”. MuCSAT aims to: 1-Develop centers of scientific excellence to serve both economic and social developments of the Egyptian society. 2- Develop Central Laboratories Core Facilities to serve for consultations, training and solving problems of the industrial sector. 3- Inspire research proposals to achieve the investment plan (previously submitted to the ministry). Fields of interest are: Biotechnology, Information Technology, Advanced Technology and New Materials as well as Arid land cultivation. 4- Attract private sector with innovative ideas to implement their insights in the most suitable form: Technology Based Incubators (TBIs), or Spin-offs in the fields of biotechnology, informatics and materials science. 5- Cooperate with different national and international institutes and organizations in the various areas of technology

Historical overview of MuCSAT Since that time, the Egyptian Ministry of Scientific Research (MOSR); through the National Research Center (NRC); started to build up the scientific human resources by establishing a rigid selection program to nominate potential candidates to start their

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training in different fields like biotechnology, material sciences and New and renewable energy. This step was established through 30 PhD scholarships funded from the German government represented by the Ministry of Scientific Research and Technology (BMFT) and 4 PhD scholarships from university of Georgia, USA, where the research titles was concentrated on the transfer of modern technologies of applications serving different areas that have a great impact on the Egyptian industry. Scholars continued their progress and obtained their Ph.D degree, while started to return back home 1997. At that time, the new buildings of two institutes were still under construction, while only one building gathered both administration and capacity building center in west Alexandria district was located. It was actually a great opportunity to start something as important as the science itself, which was to install laboratories properly and making it equipped with necessary instrumentation to carry out research at the same level as learnt in different European and American schools. That was the first step in transferring knowledge with the guidance of well designed vision. According to the presidential decree 1993, twelve institutes and technology centers were planned to be included in MuCSAT; 1. Genetic Engineering and Biotechnology Research institute GEBRI) 2. Informatics Research Institute (IRI) 3. Advanced Technologies and New Materials Research Institute (IATNM) 4. Technology Capabilities Development Center (TCDC) 5. Arid Lands Cultivation Research Institute (ALCRI) 6. Laser Research Institute (LRI) 7. Environmental and Natural Resources Research Institute (ENRRI) 8. New and Renewable Energy Research Institute (NRERI) 9. Fine Chemical Research Institute (FCRI) 10. Pharmaceutical and Fermentation Industries Development Center (PFIDC) 11. Small Scale Industrial Development Centers (SSIDC) 12. Engineering Industrial Development Center (EIDC) As a first launch, three institutes and one development center were officially started working in August 2000. Partial initial funds for this project was through granting mechanism from Italian Government and the State of Kuwait for infrastructure support (Equipment and Training). 1. Genetic Engineering and Biotechnology Research institute GEBRI) 2. Informatics Research Institute (IRI) 3. Advanced Technologies and New Materials Research Institute (IATNM) 4. Technology Capabilities Development Center (TCDC) The objectives of MuCSAT institutes were clearly categorized to serve the development and renovation of industry in Egypt. This was accomplished through many agreements, protocols and MOU's with different RTD institutes and universities in

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

U.S.A., U.K., Korea, China, Germany and many Mediterranean partner countries (MPC). Most of these agreements were about introduction and adaptation of new technological applications serving Egyptian industries.

Genetic Engineering and Biotechnology Research Institute (GEBRI): The aim of this institute is adding a scientific distinguished center in biotechnology field in Egypt, improving and developing the experience and the knowledge in the field of biotechnology and genetic engineering, using this experience for achieving the targets of economical and social development for the community, working on benefiting from research activities to ensure financial incoming; from local market; to help continuing the institute activities, and opening new opportunities for cooperation in domain of genetic engineering and biotechnology between Egypt and other countries to increase the researchers contact with international centers of excellencies. Since the official opening of GEBRI, its objectives become clearing, which are: - Carrying out applied research in the field of biotechnology serving different industries. - Establishment of strong links with industry by introducing novel biotechnological products and/or improvement of classical bio-products. The institute is divided into five scientific departments with uni-specification and multipurpose targets, which are: 1. Nucleic Acid Research Department. 2. Protein Research Department. 3. Environmental Biotechnology Department. 4. Medical Biotechnology Department. 5. Bioprocess Development and Pilot Plant Department. 6. Pharmaceutical bioproducts Department. The research staff power of GEBRI is 49 scientists representing professors, Ass. Professors, researchers, and assistant researchers. In addition, there are no less than 20 lab. Specialists and master scholars working to achieve the proposed scientific plan. GEBRI staff are highly qualified and well trained scientists working in different fields of biological sciences in coordination. About 80% of the researchers of GEBRI obtained their PhD degrees from internationally distinguished universities with high reputation in biotechnology studies. During the last three years, GEBRI has accomplished a very strong links with Egyptian and international universities and research centers of excellencies through joint research projects in applied biotechnology fields. The research plan of GEBRI was designed to cover advanced biotechnological areas for the coming five years; these areas are;

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1. Biodiversity. 2. Novel products. 3. Bioinformatics. 4. Genomics. 5. Cell Culture and animal Tissue Engineering. In which, research under these areas are the target of research projects administrated by GEBRI researchers to be funded either locally from the MuCSAT budget or local financing agents, and by seeking international funding agents. Recently, a central well equipped laboratory was established at the institute, personals responsible about the work of this laboratory are well trained specialists. Central laboratory was designed to serve research activities of GEBRI, research institutes and universities, as well as serving R&D in public and privet industries in the area of New Bourg El Arab, Alexandria, Matrouh and Behera provenances.

Also, it is expected by the end of this year that the instillation of the semi-industrial scale pilot plant will be completed. This unit is designed to be GMP unit with bioreactors of different sizes (15, 70, and 300 liters). The staff supervising this unit is well trained personals that used to work in similar units. Although, this unit is planed to be used in the production of pharmaceuticals and industrial enzymes either from wild or genetically modified organisms. Moreover, offers from two pharmaceutical companies are under investigation to make use of this unit for the production of some pharmaceutical products.

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Informatics Research Institute (IRI) Information technology constitutes basic elements in the process of national development and decision making system. It highly influences setting policies and strategies, allocating available resources, and directing implementation of national plans, which has a great impact on the countries social and economic systems. Moreover, information technology has been identified as an independent economic sector in its own right and has become among the sectors that have the highest turnover in the last few years. A visibility study carried out to assess the need for information technologies in the Egyptian market strongly support establishing the Informatics Research Institute (IRI) at MuCSAT. The objectives of IRI are; 1. To develop scientific software products. 2. To help modernization of Egyptian industry. 3. To carry out research activities in various areas of information technology. 4. To promote joint research projects with international organizations. These objectives are planed to be performed by a group of researchers with high capabilities and well trained nationally and internationally in the different fields of information technology and its related science. IRI include five departments; 1. Computer graphics and multimedia. 2. Networking and distributed systems. 3. Database and decision support systems. 4. Knowledge-based systems and robotics. 5. Computer-based engineering applications. IRI has established a strong links with local and international universities and research centers to strengthen the capabilities of its staff. Moreover, IRI is participating in the program sponsored by the Ministry of Communications for training of new graduates in the field of information technology. On the other hand, IRI has established a strong local and international cooperation through joint project for the development for new software products.

Advanced Technologies and New Materials Research Institute (IATNM): The mission of IATNM is to promote the understanding, manufacturing, production, utilization and manipulation of new materials as well as adapting advanced technologies utilized for production and processing of new materials--through industry- driven applied research. The objectives of IATNM are; 1. Promotion of new materials production, utilization and manipulation processes.

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2. Development of advanced manufacturing technologies utilized for new materials. 3. Establishment of strong links with the industrial sectors.

IATNM has focused its research activities under five major research areas for the next five years; 1. Electronic Materials 2. Polymer Materials 3. Composites Materials 4. Fabrication Technologies 5. Computational Materials Science As in the other MuCSAT institutes IATNM has established local and international cooperation through product directed projects.

Mubarak City for Scientific Research and Technology Applications (MuCSAT)

Vision: An Investment Zone to Build up New Mechanisms of Investment in Science & Technology in Egypt

Mission: The Concept of MSP Investment Zone; industry-academia cluster in Borg El- Arab city is to create a bold and comprehensive “vision for the future integrated Science and Technology services” serving Alexandria, Egypt and the region. The city location and its estimated area of 225 Acres will reflect the scale of small urban city development. This city will meet much needed scientific, industry, commercial and

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

mixed use of development needs. The new project enjoys among many other values than year-long pleasant whether, the unique location and size of the project, the vicinity of all utilities and the attractiveness of being near northern coast and Alexandria centres, with all its cultural and social weight.

Structure Board of Investment Zone President: Chairman of MuCSAT

Project attractiveness

 Mubarak city is located in Borg El-Arab City, 60 km west of Alexandria, and 7 km from the Mediterranean sea  The total project area is 135 acres (567 thousand square meters) within the allocated area of the city which is 225 acres .  Close to the accommodation area in Borg El Arab.  Close to a number of universities in Alexandria as the new universities  Proximity to transportation means (Nozha airport, Borg El-Arab Air port, Alexandria Sea Port, Cairo/Alex. Rail way, Borg El-Arab Rail way)  Road network serving the location (Cairo/Alexandria Desert Road, Hi Way International Road)  Alexandria is considered Egypt’s second capital and Borg El-Arab is among the top and most industrial advanced cities in Egypt.

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

Master Plan

Targeted Industries (Market)

 Biotechnology Products  Bio-pharmaceutics  Nanotechnology, Information technology incubators  SME’s  New and Renewable Energy  Advanced technology services

Proposed Investment Projects

Estimated No. of Direct Indirect Project Name issued capital Projects Employment Employment (million L.E.) Bio-Pharmaceutical 5 75 1250 7000 Nanotechnology 3 4.5 225 1200 Biotechnology Incubators 5 4.5 250 1700 SME’s 24 60 1800 4000 Advanced Technology 5 250 1000 6000 Services centers Training Centers 5 15 250 1300

Renewable energy projects 3 30 225 3000 Infromation technology 10 5 300 1000 Incubators Total 60 444 5300 25200

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

MuCSAT in Numbers: International publications: 634 international scientific papers have been published in a peer reviewed journals. Recently, 1st SCIENCE paper of MuCSAT has been published.

Total No. Of Publications No. of Publications for each Institute

2000 52 2 34 80 16 2001 36 91 2002 52 2003 97 2004 GEBRI 37 2005 ATNMRI 2006 ARADI 2007 IRI 113 2008 416 68 70 2009 2010 72 70 2011

Patents: 39 patent pending and 16 Egyptian patents, 3 Korean patents, and one US patent

Projects: Over than 70 funded projects either from National or international funding bodies, e.g. NSF, ASTF, STDF, RDI, FP07 ……etc. There are now 32 running projects with a total fund of 25 million US$.

تصوير بالليزر وتصميم حصن بابليون

تصميم ثالثى األبعاد لدير سانت كاترين

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

Prototypes and products:

Leveraging existing infrastructure of MuCSAT (i) MuCSAT is structured into three distinct divisions to capitalize knowledge based industries engaged in the sectors like e.g., Biotechnology; Nanotechnology; Information technology; Environmental technology; Water treatment and desalination; Food and agricultural technologies; New and Renewable energy and Culture Heritage. It is evident that MuCSAT intends to strike a balance between domestic priorities and international opportunities. a. R&D institutions

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

The four flagship institutions have been created . Genetic Engineering and Biotechnology Research institute (GEBRI), . Informatics Institute (ITI), . Advanced Technologies and New Materials Research institute (ATNMRI), . Arid Land and Agriculture development Institute (ARADI) In addition to, Technological Capabilities Development Center (TCDC) has been operating at Dekhela as off-site campus. These R&D institutions are engaged in high-end research and developed prototypes and Acquire patents having commercial value, which can be available for start-ups. The revenue plan of each institution is to avail grants support from national and international donors largely. Private sector driven commissioned R&D is yet to take off. b. Core Facilities The facilities common and cardinal to support the functioning of these institutions are available, such as  Wet laboratories Facility Central Laboratory for Services and Environmental Assessment at GEBRI - This unit is now in the process for accreditation for ISO 17025. Central Laboratory at ATNMRI – It can conduct and provide following scientific services viz., Elemental Analysis of Materials, Physical and Chemical Characterization of Materials, Micro and Crystalline Structure of Materials, Mechanical Characterization of Materials. Semi Industrial Scale cGMP Pilot Plant - This unit was designed to serve the production of new pharmaceutical products and some industrial enzymes and/or development of some existing products. Pre-clinical regional Center  Engineering Workshop  Well calibrated Field trial Plots  Incubators  Training facility  Window for technical consultancy c. Investment zone – Master Plan has been developed and Expression of Interest has been issued to attract investment in the Zone. In accordance with MuCSAT, the Investment Zone also identified the following sectors such as Biotechnology, Biopharma, Nanotechnology, IT and Renewable energy. The support towards SME will be prioritized. The Government of Egypt has made this investment in creating MuCSAT to promote the location as ideal destination for knowledge based industries. It aims to cater both the domestic industries mainly to enhance the quality through better scientific and technological intermediation and also to attract investment from outside the country considering the unique geo-political proposition of Egypt. (ii) It is therefore strategic to enhance the utilization of the current facilities both in terms of physical infrastructure as well human resources engaged in the Park.

Mubarak City for Scientific Research & Technology Applications intends to bring in investment both from national/ local as well as internationally in the form of new businesses in the identified sectors based on initial scoping. It further intends to

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

emerge as a ‘Lighthouse’ in the region where it steers science & technology led economic development to start with in Egypt and eventually in the region. The challenges to be addressed are as follows, a. Optimal utilization of already created infrastructure: The current infrastructure has been created based on the initial market research and opportunity scanning. It is evident from the fact the current utilization patterns of these facilities demonstrate sub-optimal usage leading to challenges both in terms of positioning vigorously as well as assessing the changing trends in the science and technology driven knowledge markets. b. creating the right perception/ image: New Businesses/ investment aspire to be in MuCSAT as it is ‘the destination’ for science and technology led business. c. benchmarking the process for performance delivery: Creating the appropriate ‘character’ of the Park, which brings in uniqueness in terms of services offered, quality ensured, share value increased and governance delivered, confidence installed within enterprises. d. identification right mix of sectors: Current and future market driven assessment of the potential of high-end science and technology sector so that MuCSAT will have the ‘edge’ over other competitors in the region in terms of its readiness to address emerging opportunities in sunshine sectors and also to provide business directions to results coming out of blue sky research. e. appropriate differentiator: World-class physical infrastructure, favourable ambience in the form of area development through master planning, connectivity and investment friendly financial packaging etc., are most common offer of the leading Science & Technology Parks in the region. It is henceforth evident that ‘the offer’ to business/ entrepreneurs needs to be unique and innovative so that value proposition has the clear edge over the competitors. f. significant contribution to GDP Science & Technology Park model would not provide mass employment. It being very niche and high-end knowledge dependent, the content that holds promise to convert into big spin-offs and the size of investment would be the determining factors in generating high-end employment and wealth in the economy it operates. Quality human resources would be one of the most critical factors in realizing the potential to conceivable outputs. The opportunities existed currently need to be harnessed, g. Favourable strategic enablers: Proactive and robust Science & Technology Policy, stable Government and smooth reform functioning, pragmatic human resources development plan and credible geopolitical identity within international communities will help Egypt in enabling STI towards substantial investment. h. catchment strength: MuCSAT is situated in Borg el Arab region, it houses 40% of the country’s industry. It is therefore expected that MuCSAT will encatch this favourable local conditions effectively. Being strategic geo-politically like proximity to Europe and as gateway to Africa will provide significant opportunity to businesses in the Park besides traditional existing markets. i. strategic geo-political axis: Strong and strategic relations with developed economies and growing clout in regional development will proffer opportunities to shape up and participate in the regional economies. Egypt has assumed the chair in COMESA that will provide sufficient leadership strength in shaping up science and technology based business in Africa as well. Egypt has been able to keep them away from the volatility of the Arab world significantly and that would act as confidence builder to investors.

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

The intent to develop MuCSAT as an ideal investment destination in science and technology led knowledge business (manufacturing as spin off will be taken care of outside the Park through the network of economic zones spread over the country designed on the basis of competitive advantages) draws its strengths from the current infrastructure, catchment opportunities as well ability to address the challenges effectively. In order to realize the “intent”, an intervention is conceptualized. The purpose being to develop MuCSAT as the most preferred destination for investment in science and technology led enterprises, which provides fundamental basis for manufacturing and processing of processes and products in the identified field of Biotechnology, Materials Science, IT and arid zone agriculture, will be guided by the principles of “re-positioning a institution”. The Framework to be followed to carry out the re-positioning intervention would be likewise,

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

SSEESSSSIIOONN 22

Innovation Model in Academia sector

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

Lecture 2-1

The Triple Helix: International Cases and Critical Summary

Fred Phillips Senior Fellow, IC2 Institute, University of Texas at Austin Senior Editor, Technological Forecasting & Social Change Managing Partner, General Informatics LLC

Sukaina Alarakhia Associate, General Informatics LLC

P. “Joy” Limprayoon Alliant International University and Associate, General Informatics LLC

October, 2010

For presentation at UNESCO-World Technopolis Association International Training Workshop “Triple Helix Model of Innovation” November 2010, Daedeok Innopolis, Korea

KEYWORDS: Technopolis; Technopark; High-Tech Economic Development; Industry cluster; Triple helix; Intersectoral cooperation

The authors thank Mr. Brooks LeComte for valuable research assistance.

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

The Triple Helix: Three Cases

ABSTRACT: This briefing will use five cases to examine the role of government-industry-academic cooperation on the development of technology clusters, research parks, and metropolitan-area technopoleis like Austin or Silicon Valley. We find that triple-helix cooperation is necessary in deliberate cluster initiatives (as opposed to spontaneously formed clusters) but is not a sufficient concept in itself. A fourth strand, consisting of non-profit enterprises, NGOs, and voluntary associations, is necessary. The “edge city” phenomenon is also key to cluster success.

Outline

1. Introduction: The triple helix 2. Portugal-Texas 3. Kansas City 4. Northwest Education Cluster 5. China and Russia 6. Lessons

1. Introduction: University – Industry – Government Cooperation

In a presentation at last year’s WTA-UNESCO workshop, Phillips (2009) displayed the Table below. For the present paper we have added emphasis to the phrase “especially with cross-sectoral links.” Technopolis success factors

Embracing change. Social capital, especially with cross-sectoral links. Cluster strategies that target specific company groups for collocation. Visionary and persistent leadership. The will to action. Action. Constant selling. Self-investment in infrastructure. Outreach and networking.

Source: Phillips (2006)

Cross-sectoral links are central to the idea of the triple helix. This briefing will use five cases – in many of which one or more of the present authors have been involved – to examine the role of government-industry-academic cooperation on the development of technology clusters, research parks, and metropolitan-area technopoleis like Austin or Silicon Valley.

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

Tech clusters and technopoleis are nonlinear phenomena. The accident of one influential person moving to a city, or the accident of one company spinning out from a university – the “butterfly effect” of complex system theory – can set the cluster/technopolis on a trajectory of growth or stagnation. A cluster/technopolis on a growth trajectory is subject to positive feedback, or lock-in. This means the benefits of locating in the city increase faster than the number of companies present. Lock in implies that each new or relocated company, university, or government office makes the city more attractive. It also implies that once located in the city, companies will be slow to leave, even if business conditions change. Locales lucky enough to experience this lock-in will enjoy lower recruiting costs, and fewer problems with “clawing back” incentives extended to companies that do not stay in the region for the contracted amount of time (or create the contracted number of jobs). The triple helix hypothesis is that cross-sector cooperation creates a second, reinforcing lock-in cycle. The hypothesis also notes that cross-sector cooperation makes an already complex system even more complex, thus increasing the opportunities for disaster (Leydesdorff, 2000; Etkowitz, 2002; Benner and Sandstrom, 2000; Cho, 2008). Even if disaster is avoided, saturation will eventually set in. Silicon Valley’s success led to congested highways and unaffordable housing – and as a result many experienced entrepreneurs and investors moved to Austin, Texas, to start leaner, cleaner companies. Most of the cases in this briefing involve locales that interacted with Austin’s IC2 Institute in developing their own technology-based growth strategy. One case is an international cooperation between the government of Portugal and several US universities. One is a metropolitan area in the American Midwest. One is a small but unique and important effort in the US Pacific Northwest. The remaining cases are based on current news stories concerning Russian and Chinese efforts. We find that triple-helix cooperation is necessary in deliberate cluster initiatives (as opposed to spontaneously formed clusters) but is not a sufficient concept in itself. A fourth strand, consisting of non-profit enterprises, NGOs, and voluntary associations, is necessary. The “edge city” phenomenon is also key to cluster success. It will help set the scene for the following cases to quote one of the IC2 Institute’s clients (UTEN, 2009) about IC2: The IC² Institute has a 30-year track record of working with emerging, developing, and developed regions worldwide on how to effectively structure industry-science-academic relationships to transfer and commercialize innovative and creative knowledge/technology to build wealth and high quality jobs while providing for a sustainable quality of life. Austin, Texas, is known internationally as having leveraged academic, business, and government collaboration to transform a mid- sized central Texas government and university town into a globally competitive technology center that successfully educates, attracts, and retains scientific and entrepreneurial talent from leading technology regions in the US and worldwide. Based on many national and international rankings, Austin is judged one of the top US cities in terms of entrepreneurship, economic growth, and

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

quality of life and [its success] is often referred to internationally as the “Austin Model” ... Key to Austin’s successful technology-based growth is the fact that the city and The University of Texas at Austin are able to educate, attract, and retain key US and international talent. This talent has been crucial to the establishment of globally competitive clusters in semiconductors, software and IT, and computers and peripherals as well as emerging clusters in biosciences, nanotechnology, digital media, clean energy and wireless technology.

2. University Technology Enterprise Network UTEN

In the mid-1990s, Professor Manuel Heitor of the Instituto Superior Técnico (the engineering school of the Technical University of Lisbon) visited the IC2 Institute and launched a program of student and faculty exchange between Austin and Lisbon. He became Deputy-President of IST in 1993, and was named a Fellow of the IC2 Institute. He also joined the editorial board of Technological Forecasting & Social Change. His talent and energy led to his being appointed Secretary of state for Science, Technology, and Higher Education for Portugal. In this capacity, he expanded the Portuguese government’s interactions with American universities, focusing especially on the University of Texas at Austin, Carnegie-Mellon University, and MIT. With UT-Austin’s IC2 Institute, Heitor conceived and structured the University Technology Enterprise Network (UTEN). This initiative followed a six-month assessment of the match between the capabilities of the IC² Institute and its partners and Portugal’s needs and challenges in the areas of technology development and commercialization. A five-year agreement was signed in 2007. It involved fifteen Portuguese universities, technology parks, and research centers. UTEN’s goal is to build a competitive and sustainable S&T transfer network and infrastructure in Portugal. Objectives include strengthening Portuguese technology transfer practices, and building academic-science-business cooperative networks. Under UTEN the IC² Institute has worked with Portuguese academic, government, and businesses. In 2008 the Institute received visitors from Portuguese universities and incubators, and from the Ministry of Science, Technology, and Higher Education. Visits by UTEN partners in Texas included (in Austin) the Austin Technology Incubator, UT Austin’s Office of Technology Commercialization, the Greater Austin Chamber of Commerce; (in Dallas) UT Dallas’ Institute for Innovation and Entrepreneurship, Office of Technology Commercialization, and Arts & Technology Institute; and (in San Antonio) UT San Antonio’s Center for Innovation, Technology Entrepreneurship, INCELL Corporation, and TEKSA. Later in 2008, “a biotechnology and medical technology expert team representing UTEN Austin visited with entrepreneurs, universities, incubators, research parks, and other institutions throughout Portugal” (UTEN 2009). Under UTEN one of the present authors (Phillips) has gone to Lisbon each summer with US colleagues to evaluate proposals from Portuguese researchers to the Fundação para a Ciência e a Tecnologia, the Portuguese national science foundation. In Austin, the team attended training on market-based entrepreneurship,

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

learned about government-sponsored and private funding opportunities and models… and visited with entrepreneurs, venture capitalists, business angels, IP lawyers, and professors from the IC2 Institute’s Master of Science in Technology Commercialization program. (UTEN 2009). Portugal’s government has provided more than 50 million euros for UTEN-related initiatives within Portugal and with the three US universities. Business-sector partners contributed a few million additional euros in 2009 (Fischer, 2010). UTEN’s missions are to:  ”Overcome a historic gulf in Portugal between academe and industry, an insular higher-education system, and a business climate with little tolerance for risk” (Fischer, 2010).  Encourage Portuguese universities to work together on common research problems. “Individually, many of the country's 13 public universities lack the capacity to tackle large-scale research projects” (ibid).  Internationalize the educational experiences of Portuguese students. Fischer (2010) adds, “…the Portuguese strategy is, at least in its conception, top down, driven by government initiative. In Portugal, however, those government officials are also academics—both Mariano Gago, the longtime minister of science, technology, and higher education, and Mr. Heitor, the secretary of state, or deputy minister, are former engineering professors.” UTEN’s annual report (UTEN, 2009) lists a dozen viable companies in each stage of growth (start-up, growth, mature) that have benefited from the program, and notes these spin-off benefits are additional to significant progress on the academic and entrepreneurial culture-change objectives.

3. Kansas City’s Life Sciences Cluster

Life science clusters primary require: (i) proprietary science that can support a wide array of commercially viable products, (ii) risk capital and, (iii) science and entrepreneurial talents. All life science clusters emerge around prominent universities and research institutions, which provide the intellectual base both in terms of highly trained human capital and proprietary technologies. The three key ingredients are prerequisites for a life science cluster but for it to thrive, a confluence of other factors is needed – environmental, infrastructural, and cultural.

Government’s role Life Science industry needs to operate in a favorable environment, with well-maintained infrastructure. A government’s supportive tax and regulatory policies imparts an enabling climate, fostering the commercialization practices and attracting more basic ingredients to the cluster. Many aspects of the infrastructure are public in nature which only the government is in a position to provide. Some of these include, but not limited to:

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

 A legal framework that protects intellectual property rights of inventors  Mechanisms to license these rights, transfer them from public to private domain, commercialize academic discoveries, and ultimately reward innovation  Education infrastructure to train large pool of labor, preparing human capital for the industry

The crucial role of the government in the creation of a life science industry existed long before its birth. For instance, in North Carolina, behind the excellence of universities was decades of government support (Song, 2004). Government funding continues to pour into research institutions’ labs, in tens of billions of dollars every year.

Commercial infrastructure There are other infrastructural elements which generally fall in the private sector. These include “professional service providers such as patent agents, intellectual property attorneys, consultants and accountants; wet-lab facilities and bio supplies and equipment; specialized suppliers such as contract manufactures and clinical research organizations; and related industries such as medical devices and information technology” (Song, 2004), all of which aid in facilitating the creation and growth of a cluster.

Collaboration The life science industry is probably more collaborative than any other industry where deal-making is a way of life. Extensive and intensive collaboration pervades the entire cluster.

 Academic collaboration It is rather common for faculty members from different institutions to collaborate on the same research project, and their institutions jointly own the IP rights of resulting inventions.

 Intra-industry collaboration Companies form alliances with each other to achieve synergy in R&D efforts, expand product pipelines, and leverage each other’s expertise and resources. These alliances take a number of forms, including one-way licenses, cross-licenses, R&D collaborations, and commercial and sales partnerships, in a wide range of product modalities such as proteins, peptides and small molecules (Song 2004).

 Academic-industry partnership In successful life science clusters, academic institutions and companies are mutually engaged. Through technology transfer, institutions license their government-funded technologies to companies for commercial development. Institutions may also conduct private research sponsored by companies. Institutions’ research expertise helps companies’ business; companies provide institutions with strategic directions of commercializing new ideas.

 Academic-industry-public partnerships In leading life science clusters, academic institutions and companies are also involved with government and local community to shape public policy, and push economic agenda forward. In the late 1980’s to early 1990’s when public understanding of

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

biosciences was foggy, the U.C. campuses and Stanford University’s public seminars and papers took a lead role in addressing public concerns in the State of California (Song, 2004). The intensity of these collaborations is an essential stimulant for research innovation and creativity. It helps cluster entities remain current on the industry’s rapidly evolving technical aspects, and gain access to information, financial resources, and alliance opportunities. Previous studies of the biotechnology industry showed that the number of network ties that a biotech firm or institution has within a cluster, as well as its position and centrality in relation to other firms in the cluster, can affect performance. "In the short term, firms lacking in alliances will be slower to generate research discoveries, obtain patents, and turn scientific results into marketable products. In the long run, firms that learn to manage diverse portfolios of collaboration, involving multiple projects at different stages of development, are less likely to fail." 1 The energy of these interactions also contributes to the vitality of the cluster as a whole. The nature of life science clusters With the onset of a mature life science industry, the industry tends to continue to gravitate towards established clusters where there is critical mass, provided those clusters can meet the growing needs at sustainable cost. The likelihood emergent of a new traditional cluster may not seem to be in sight, however, a combination of compelling forces conspire to create a new type of cluster – i.e specialized sub-clusters, or small clusters specialized in one or two niche strengths of a region. An article in Genetic Engineering News, dated September 2004, reported future trends in life science cluster development.2 “Tomorrow’s company in Seattle can have manufacturing in Research Triangle Park, marketing offices in New Jersey, and clinical trials in Kansas. It’s much more of a hub-and-node scenario now.” Hence, as regions and companies realize the impracticality of developing full-scale clusters today partly due to the huge cost investment, they are instead adapting their strategy to develop in niches they have competitive advantage in. Also reported in the Genetic Engineering News article mentioned earlier, “In the past, regions simply wanted to duplicate San Diego or Boston in their backyard.” The author quotes an interviewee. “In the future, the smart states will be trying to find out what their niches are. Then, they can make plans to develop their market opportunities and build business and clusters around these strengths.” Another economic development expert concurred, “The biotech industry will grow more reliant upon an outsourced business model much like the 60% of the global pharmaceutical industry that relies upon outsourcing. …”

The Life Science Cluster of Kansas City, Missouri and Kansas City, Kansas f

1 Walter W. Powell et al., “Network Position and Firm Performance: Organizational Returns to Collaboration in the Biotechnology Industry” 2 “Novel Model for Biotech Cluster Development”, David G. Jensen, Volume 24, Number 16, September 15, 2004.

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Kansas City, MO-KS, lies within the bi-state region of the Greater Kansas City metropolitan area.

Greater Kansas City metropolitan area

Credit: Kansas City Area Development Council (KCADC)

Despite the struggling economy, the region’s life sciences research and development industry has grown slowly but steadily over the past three years.3 “The demand for health sciences innovation remains high, and we’re fortunate to have a strong presence in both the human health and animal health industries,” said Dr. Dan Getman, president of KCALSI. A key element in the growth of the life science sector in Kansas City is that both Kansas City, MO and Kansas City, KS are home to leading universities, research centers and institutions and life science organizations, all of which support a strong research base. f

3 2009 Life Sciences R&D census report, released May 24 2010 by the Kansas City Area Life Sciences Institute (KCALSI).

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

The University of Missouri Kansas City (UMKC) located in Kansas City, MO is home to a large life science program. The number of patents filed over the last 4 years has increased with 65 patents filed in 2006 and 110 patents filed in 2009. Licenses and options signed also increased during the same period with 17 licenses signed in 2006 to 77 licenses signed in 2009, bringing a licensing income of $10.4 million in 2009 up from $2.4 million in 2006. Their annual licensing income goal by year 2014 is $50 million. The approximate amount of funding awarded to faculty to help bring their ideas closer to market was $600K.

Credit: University of Missouri Kansas City (UKMC)

Total externally sponsored research expenditures in the University of Missouri system- wide for the year 2009 was $308,296,926 million, of which the University of Missouri Kansas City (UKMC) research expenditure was $34,792,030 million. UMKC’s commitment to Kansas City's life sciences initiative has been strengthened by the opening of its new $50.2 million Health Sciences Building in Fall 2007. It also has

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

plans for a second building – the Center for Health Sciences Research – to accommodate the expansion of interdisciplinary and translational research.

Kansas City Research Centers of Excellence that received NIH Funding in Fiscal Year 2009 No. of 2009 Awards 2009 NIH Funds Research Universities University of Missouri Kansas City 30 $11,451,966

Research Institutions and Hospitals Children’s Mercy Hospital 4 $1,557,269 Kansas City Clinical Oncology Program 1 $520,000 Stowers Institute for Medical Research 15 $4,154,415 Source: NIH

The UKMC School of Biological Sciences (SBS) houses more than 30 active research laboratories with faculty members engaging in cutting-edge research, including structural biology, biochemistry, microbiology, molecular cell biology and developmental biology. A goal of the SBS is to create an infrastructure and environment where research programs exploring fundamental questions in basic biology can be developed and addressed. Annual research funding for faculty research projects exceeds $4 million. The UMKC School of Medicine has a diversity of biomedical research strengths enabling it to provide leadership in research at UMKC. Since medicine is at the very heart of all biomedical research efforts, the School's role is critical for UMKC to achieve maximal productivity from its life sciences research. It has also jointly recruited 18 Endowed Chairs in collaboration with its affiliated hospitals. These Chairs provide an established nest for highly productive translational research, which has led to an overall increase in federal funding, as well as foundation and industry sponsored research. Partner institutions in life science also include: Midwest Research Institute (MRI). MRI is an independent, not-for-profit research laboratory for applied scientific research and technology development. It includes life sciences research amongst its five research programs. MRI’s life sciences clients are government agencies, including the Centers for Disease Control (CDC), U.S. Department of Agriculture (USDA), U.S. Food and Drug Administration (FDA), and many other health-related agencies at the federal, state, and municipal level. In addition, MRI serves industry, covering the pharmaceutical, veterinary medicine, and biotechnology business sectors; and academia, including many of the nation’s leading universities. With its alliance with Kansas State University (K-State) in Manhattan, KS, it promotes collaboration on bioscience research. MRI also formed a for-profit sub-subsidiary, MRI Ventures, which handles the commercialization of intellectual property and new technologies that are developed either at MRI or through collaborative efforts involving the Institute. “The strategies used in translational research—bringing research developments out of the lab and into the marketplace—include all stages of new product development, licensing, technology assessment, market forecasting, investment management, strategy development, and

Daedeok Innopolis, Daejeon, Korea (November 3-6, 2010)

business planning.” (Source: MRI) Stowers Institute for Medical Research. Stowers Institute is a 501(c)(3) charitable organization structured as a Medical Research Organization under US Treasury statutes. Since it is privately funded, it gives Stowers researchers freedom to investigate promising ideas before there is enough evidence to garner outside financing—an arrangement that gives Institute researchers opportunities to initiate groundbreaking research. It also houses the headquarters of BioMed Valley Discoveries, a for-profit translational R&D organization, whose role is to develop basic biomedical discoveries into applications to improve human health. Kansas City University of Medicine and Biosciences. The oldest medical school in Kansas City, Missouri, it is known for its excellence in academic medicine including education, research and patient care. Through their affiliation with the Stowers Institute and the Kansas City Area Life Sciences Institute, they maintain an active research development and recruitment program to attract and retain top-notch researchers. University of Kansas Medical Center. Located in Kansas City, KS, it advances the discovery of new knowledge through its Schools of Allied Health, Medicine, Nursing, Pharmacy and Graduate Studies. It works in partnership with The University of Kansas Hospital which offers students and residents opportunities in patient care. Kansas City Area Life Sciences Institute (KCALSI). Founded by the Civic Council of Greater Kansas City and the Kansas City Area Development Council. The organization works to advance the life sciences research, commercialization, and workforce development in Kansas. Their role is to foster constructive relationships between the academic and private sectors; assist scientific collaborative research efforts; oversee and manage fundraising and marketing activities; advocate for the life sciences at the local, state, and national levels; and provide support to economic development and technology transfer & commercialization organizations. Kansas City Life Sciences Fund. Established at the greater Kansas City Community Foundation serves to support the region’s life science initiatives. The fund received an initial contribution of $1.5 million from the Ewing Marion Kauffman Foundation located in Kansas City, MO which fosters entrepreneurship. The Kansas City Life Sciences Fund enables donors to help Kansas City recruit top medical research talent focusing especially on cures for cancer and diabetes. Kansas Bio. A non-profit servicing the bioscience community in Kansas, composed of private sector companies, and partnerships with public and academic institutions. Its roles include:  Maintaining the funding for state agencies, programs and incentives that provide support for economic development activities within the bioscience industry in Kansas.  Develop guidelines for advantaging Kansas’ partners related to intellectual property (IP) protection for bioscience companies and Kansas’s research universities.  Evaluate the use of Research & Development tax credits in Kansas.  Ensure the bioscience industry is engaged and allowed to give feedback in legislative-led tax incentive comparison discussions.

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

 Strengthen Kansas’ workforce development activities that advantage the biosciences.  Strengthen education programs and expand curriculum in bioscience education in K-12.  Enhance Kansas’ image as a globally recognized leader in the biosciences and as a preferred place to do business and start businesses involving advanced technologies. (Source: Kansas Bio)

State efforts in life sciences Both Missouri and Kansas have been committed to the development of a comprehensive network to support research, facilitate commercialization and to promote the adoption of new technologies.

MISSOURI

In order to induce existing businesses to increase their research efforts, businesses are permitted to claim a tax credit equal to 6.5% of the excess of qualified research expenses during the tax year, over the average amount of qualified research expenses incurred in Missouri during the preceding three tax years. The credit may be carried forward for up to five additional years.

New Enterprise Creation Act The New Enterprise Creation Act is intended to generate investment for new, startup Missouri businesses that have not developed to the point where they can successfully attract conventional financing or significant venture capital from later-stage funds.

Certified Capital Companies A Certified Capital Company (CAPCO) may invest in an eligible business, which is in need of venture capital and cannot obtain conventional financing. The eligible businesses must derive their revenue primarily from manufacturing, processing or assembling or products, conducting research and development, or, service businesses, which can demonstrate that more than 33% of its revenue would be from outside the state of Missouri.

KANSAS

In Kansas, two state organizations are instrumental in the development of new technology: The Kansas Technology Enterprise Corporation, which works with start-up technology ventures and the Kansas Bioscience Authority, which works with bioscience companies investing in Kansas.

The Kansas Bioscience Authority was created by the Kansas Economic Growth Act of 2004 which established a funding engine that will generate more than $580 million over the next 10 to 15 years, which will be fueled in research, commercialization and workforce development programs that support the growth of the state’s life science presence.

Seed & Venture Capital Funds

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A credit for a portion of a taxpayer's investment in Kansas Venture Capital, Inc., Sunflower Technology Venture, LP, or a certified private venture capital company or local seed capital pool may be claimed against its Kansas income tax liability.

The amount of the credit will be 25% of the total amount of cash investment. The amount of credit exceeding the taxpayer's liability in any one taxable year may be carried forward until the total amount of credit is used.

Angel Investor Tax Credit Program Tax credits are offered against Kansas income tax liability for accredited investors making investments in seed and early-stage capital financing for emerging Kansas businesses engaged in the development, implementation and commercialization of innovative technologies, products and agencies.

- The credit is 50% of the investor’s cash investment in the qualified business. - If the amount of credit exceeds the investor’s tax liability in any one taxable year, the remaining portion of the credit may be carried forward until the total amount of the credit is used. - There is a $50,000 tax credit limit per company per year. Accredited angel investors can receive a total of $250,000 tax credits per calendar year.

Further incentives that make Kansas City, MO-KS a magnet for investment include:  Its combination of big-city business amenities and small-market ease of living  One of the fastest growing major job markets in the Midwest  Lower business and lifestyle costs than most major metros  A well-educated, extremely productive workforce  The most geographically-central major metro in the country

Challenges and Prospects Compared to other top life science clusters, Kansas City’s needs more larger life science companies, to reduce the current sole dominance of research institutions and hospitals. Having a presence of larger life science companies would give the region more name recognition and gravity in attracting skilled workers and companies. Both the states of Kansas and Missouri have provided great incentives to both relocating companies and existing companies which offer great cost effective advantages over other life science clusters. Unlike California life science clusters, Kansas City’s life science cluster falls short of entrepreneurs and venture capital. In July 2010, Nicholas Franano, president and founder of Lenexa-based Novita Therapeutics asked, “Can anyone name a very prominent medical device or biotech firm that has started in Kansas City in the last three years?” His point was that Kansas City has had “a pretty long drought” when it comes to new life science companies. One of the key reasons cited during the panel discussion was a lack of venture capital, which all seemed to be in the West Coast or East Coast. The panel also added that it’s not that area companies aren’t capturing venture capitalists’ attention – 9 of the 20 companies that received investments from Enterprise Center of Johnson County’s (ECJC) angel investor networks were in the life science areas.

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

According to Steven St. Peter, managing director of MPM Capital Group, if Kansas City wants to attract more venture capital money, area companies need to be aware of where that money is coming from because financing plays a critical role in the process and success of drug development. Moreover, the process of getting a drug from the lab to the shelf takes more time and money than some venture capitalists are willing to gamble. The average drug discovered in a university takes between 10 and 17 years and costs $1.2 billion and upwards before it gets to market, according to Scot Weir, director of the Institution of Medical Innovation at University of Kansas Medical Center. He added that KU is making strides to curb that cost and time commitment. Weir cited a recent instance in which the KU Cancer Center and the Leukemia and Lymphoma Society were able to get a novel drug into a clinic in 13 months for $1.5 million.

KC Life Science Cluster Related Web Sites and Publications

Children’s Mercy Hospitals and Clinics http://www.childrensmercy.org/mobile/

Ernst & Young Beyond Borders. Global Biotechnology Report 2009 http://www.ey.com/Publication/vwLUAssets/Beyond_borders_2009/$File/Beyond_borders_2009.pdf

Ewing Marion Kauffman Foundation: Kansas City Life Science Fund http://www.kauffman.org/advancing-innovation/kansas-city-life-sciences-fund.aspx

Kansas Bio http://www.kansasbio.org/about/documents/IAP_Directory_2_20090125.pdf

Kansas City Area Development Council http://www.thinkkc.com/SiteLocation/GreaterKCProfile/GKCProfile_main.php

Kansas City Area Life Sciences Industry Census: 2009 Census http://www.kclifesciences.org/pdf/Newsfeeds/Life%20Sciences%20Census%20press%20release.pdf

Kansas City Area Life Sciences Institute http://www.kclifesciences.org/index.php

Kansas City Business Journal: Panelists Tackle Reasons For Kansas City’s Medical Device ‘Drought’, July 29 2010 http://kansascity.bizjournals.com/kansascity/blog/2010/07/panelists_tackle_reasons_for_kansas_citys_medical _device_drought.html

Kansas City University of Medicine and Biosciences http://www.kcumb.edu/

Midwest Research Institute http://www.mriresearch.org/BusinessPartners/Pages/default.aspx

Milken Institute. The Greater Philadelphia Life Sciences Cluster 2009: An Economic and Comparative Assessment. http://www.milkeninstitute.org/pdf/PhillyLifeSciencesRprt_ex.pdf

Missouri Biotechnology Association http://www.mobio.org/industry_resources/

Missouri North America’s Business Center http://www.missouridevelopment.org/index.html

Saint Luke’s Health System https://www.saintlukeshealthsystem.org/

St. Louis Business Journal: Nixon pushes for biotechnology incentive fund, December 16 2009 http://www.bizjournals.com/stlouis/stories/2009/12/14/daily46.html

Stowers Institute for Medical Research http://www.stowers-institute.org/MediaCenter/docs/FactSheet.pdf

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“Texas Biotechnology and Life Science Cluster Report”, State of Texas, August 2005 http://www.texasindustryprofiles.com/PDF/twcClusterReports/TexasBiotechnologyandLifeSciencesCluster.pd f

Truman Medical Centers http://www.trumed.org/

UMKC Health and Life Sciences http://lifesciences.umkc.edu/

UMKC School of Medicine http://www.med.umkc.edu/research/default.html

University of Kansas Medical Center http://www.kumc.edu/

University of Missouri System. Office of Research and Economic Development, Annual Report 2009 http://www.umsystem.edu/ums/departments/ed/documents/2010annualreport.pdf

U.S Department of Health and Human Services. NIH Awards by Location and Organization http://report.nih.gov/award/organizations.cfm?ot=&fy=2009&state=MO&ic=&fm=&orgid=&view=statedetail

Northwest Education Cluster The New York Times4 recently gave one of us (Phillips) credit for being godfather to the Northwest Education Cluster. It is gratifying to watch this group’s progress. While piles of politics, coveys of consultants, and bales of bucks have failed to produce robust entrepreneurial clusters in the industries that the State of Oregon officially targets, NWEC took off and has thrived for five-plus years – at the cost of a few pizzas.

NWEC now comprises more than forty companies and 260 individual participants. Pearson has paid a half billion dollars to acquire one of the companies (eCollege), and others are raising out-of-town capital at an impressive pace. To our knowledge there are no other clusters in the education space anywhere else in the US.

NWEC was born when Fred Phillips met investment banker Kelvin Ng, through the BudoDojo and the Harvard Club. In August 2003, Kelvin wanted to get Portland's education companies together, and asked Drs. Niki Steckler and Phillips to emcee. Phillips arranged a room at the Oregon Graduate Institute, added his education industry contacts to Kelvin's, and ordered pizzas. Kelvin brought along Jim Snyder, who has been leading the group ever since.

Phillips mapped a way forward in the event that the group found value in meeting with each other. Phillips also suggested the right questions to ask, to determine whether that value was there. (See the flow chart below.) It was Kelvin’s idea to call the meeting, “just to see what will happen.” So, Kelvin’s initiative and Phillips’ complemented each other nicely. We decided not to force matters; if sparks flew, we’d host more meetings. If no sparks, we would enjoy the group’s company for an evening, and then forget about it. f

4 http://www.nytimes.com/2007/06/21/business/smallbusiness/21edge.html?_r=2&adxnnl=1&oref=slogin&ref=educa tion&adxnnlx=1182492498-4uabtxWFL9zq2Uaigw6f/g

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

As it turned out, there were sparks. Subsequent developments played out actually much as the flow chart prescribed.

NWEC received no direct government support, though some state education-related agencies participate. It is thus a good example of a decentralized, spontaneous, networked initiative for knowledge-based industry and economic development. Our European and Asian colleagues are sometimes surprised that this can happen; in their countries, most such things are instigated by governments. But it is possible because when it comes to cluster formation, knowledge and a shared sense of possibility and empowerment are currencies every bit as valuable as money.

Oregon continues to attract educated people who are passionate about education. They are obvious employment targets for education companies, and obvious candidates to become education-related entrepreneurs. They don’t want to leave Oregon due to the high quality of life locally, so the companies have to come here and/or stay here.

NWEC does what clusters do: meet for knowledge sharing and social networking, and connect with universities, governments, and other cluster initiatives in the region. Technically NWEC is an industry association, representing companies in a nascent cluster.

Where VCs used to shun companies with “assets that could walk out the door tomorrow,” that is now changing. This means an enterprise with smart, committed, creative, relatively immobile people can now attract venture capital. A number of these companies also have proprietary code assets, but educational software is still not a mass market, nor one that commands high markups. Perhaps slow but sure growth, without the pressure for investor liquidity, is a success factor for NWEC.

NWEC, then, started without government assistance. Its connection with academe is straightforward, as all of its members are concerned with academics from Kindergarten level through graduate school level. However, as government is a key player in education at all those levels, connections between the cluster and governments were desirable and inevitable.

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Portland Area Education Industry Workshop, August 5, 2003

Jim Snyder writes (Snyder, 2008, and personal communication 2010):

At [a] December 2007 meeting the cluster held a roundtable where the Oregon State Superintendent of Schools (Susan Castillo), the Oregon Senate Majority Leader (Senator Richard Devlin) and others from the teacher’s union and Governors’ Office all sat together to talk about working towards building 21st Century schools. The businesses themselves could not have had these people at the same table except for the leverage of the cluster. Over 70 attended the meeting and ideas percolated.

As a follow up to the roundtable summit, the cluster had its quarterly meeting where the Portland Schools Foundation and the Chalkboard Project presented what they were up to and how we could work together. We are getting some pro-bono work from a local PR firm that is interested in what the cluster is doing.

How can the cluster support the Governor’s workforce strategy? One idea is to connect with very established manufacturing cluster here in Oregon to push for an educational/workforce reform agenda.

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

Saltare Software did get an NSF grant in 2007 for $1.5mllion in conjunction with the work they do with CASIO.

The cluster does work with the Oregon Department of Education and the State in a few ways. ODE sends panel speakers to the cluster’s meetings. The international trade person from Oregon State is a cluster member and is eager to know details of our member companies’ international trade. A few years back we cooperated with the Willamette Educational Service District on rolling out their new project for students called Accelerate Oregon, a statewide initiative that leverages public and private commitment to Oregon’s K12 education system to improve teaching and learning through the integration of technology.

Part of what we are doing now is working with the Oregon Business Plan and Oregon Cluster Network to help define our cluster economic analysis and build a strategy report. I have a business student creating a first draft of a written cluster economic impact study.

Northwest Education Cluster – Participants by sector

Government Academe Foundations/NGOs Industry Oregon State Superint Oregon Health & Science Oregon Business Plan eCollege endent of Schools University Oregon Governors’ Portland State University Chalkboard Project Cenquest Office Oregon Department of Portland Schools Found University of Oregon Saltare Software Education ation Willamette Educational Various public and charter Oregon Cluster Network local PR firm Service District schools University of Portland Teachers’ union Other firms

Northwest Education Cluster – What each sector contributes

Government Academe Foundations/NGOs Industry

Policy direction Research on learning Philanthropy Advanced products Access to policy maker Markets for educational Social entrepreneurship Jobs s products Research on education Export assistance Course content Input on policy al needs

Russia and China Russia In the mid-1990s, Prof. Nikolai Rogalev of Moscow’s Institute of Power Machinery and Mechanics traveled to the IC2 Institute to learn the techniques of incubation and commercialization. He built Russia’s first incubators and started his institute’s commercialization and spin-off programs. Fifteen years later, Rogalev’s pioneering work is being replicated elsewhere in post-Soviet Russia because of that country’s government’s efforts to foster closer ties between Russian academe and industry. Project Eureca (Enhancing University Research and Entrepreneurial Capacity) joins a number of Russia's national research universities with four American universities for training and action in technology transfer and academic-industry cooperation. Private

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foundations from the US and Russia have pledged up to $2.5-million a year for Eureca’s initial two years of support.

Eureca Participants

Government Russian Universities US Universities Companies NGOs/Foundations

American New Eurasia Russia U. Maryland venture-capital Foundation Lobachevsky State firms University of Nizhni Novgorod Russian Association of Purdue university spin- University Research off companies Parks

St. Petersburg State U.S.-Russian University of Foundation for US Information UCLA Economic entrepreneurs Technology, Advancement and the Mechanics, and Optics Rule of Law

American Councils for U. Washington International Education

National Council for Eurasian and East European Research

According to the Chronicle of Higher Education (Blumenstyk, 2010) and those the paper interviewed, Eureca’s goals are to:  Familiarize Russian governments and universities with the (to them) new ideas of technology transfer and university-industry partnerships.  Increase Russian knowledge of intellectual property best practices.  Educate on the effects of corruption on business growth.  Build a culture of academic entrepreneurship.  Build a knowledge economy that will be less dependent on oil and mining revenues.  Contribute to the success of Skolkovo, a city near Moscow that is intended to be the Silicon Valley of Russia.  Integrate Russian universities into local and regional economies.

The US universities will train Russian academics as trainers. They in turn will diffuse the knowledge of tech transfer to other Russian researchers and institutions. At the same time, the project will concentrate on the transfer of real technologies, with an emphasis on nanotechnology and computer science. The Russian government has provided the needed directives and permissions, and has also passed a Russian version of the US Bayh-Dole Act, which allows universities to keep revenues from licensing of their own inventions. The partnership is expected to attract US entrepreneurs who will seek new technologies as well as funding from

International Training Workshopon on Science Park & Technology Business Incubator Triple Helix Model of Innovation: Government-Academia-Business cooperation

investors recently made rich by Russian oil and gas revenues. US venture capitalists will also be seeking investment opportunities. China - TusPark Started 16 years ago but given a new boost by China’s 2007 15-year plan, Tsinghua University’s technology park emphasizes social capital, combining Chinese and Silicon Valley styles. Life at TusPark includes interacting with local executives from Microsoft, Google, and Sun, as well as with the entrepreneurs and service providers residing in the park. TusPark aims for a distinct culture, different from surrounding Chinese culture and more tolerant of Western styles of investment and entrepreneurship. The park has had successes, including attracting 200 companies and the participation of the US’ Purdue University. However, some tenant companies are headed by sons of top Communist party officials. This implies that strict meritocracy has not been adopted. The park’s companies have been accused of violating WTO rules because excessive central government support drives down the effective price of exports. Then too, lax enforcement of intellectual property laws makes entrepreneurs reluctant to start companies even within the protection of TusPark (Chronicle, 2010).

Lessons Immediate lessons from the cases are:  NGOs may play a role as important as governments, universities, or industry. It is really a quadruple helix, though that phrase lacks the poetic rhythm of “triple helix.” Trust is an essential element of social capital (Fukuyama, 1995), and the formation of voluntary associations (civic associations, trade associations, professional associations, etc.) is key to social capital also. Therefore, associations, non-profits, and NGOs cannot be excluded from the helix equation. Nonprofits play a particularly visible role in Kansas City’s life science cluster. As many hospitals are non-profit entities, this is true in many life science and med-tech clusters.  Movement of people among the sectors facilitates inter-sectoral cooperation and flexibility. (There is the danger that the “revolving door” will reinforce the status quo, or that, as happened in South Korea twenty years ago and seems to be happening in China now, cronyism and favoritism trump meritocracy.)  Each strand of the triple helix may involve more than one university, more than one government agency, more than one company or industry, collaborating within as well as across sectors.

As a first stage of analysis, let us examine what each sector brings to the table.

What Each Sector Contributes

Associations/ Government Academe Industry NGOs

Policy direction TT theories/frameworks Philanthropy Licensees

Educated knowledge Supportive laws Jobs Jobs workforce Social entrepreneu Idea leadership Idea leadership Idea leadership rship

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Export assistance Leading-edge curriculum Licensees Taxes Interns Networking Philanthropy Funding. Subsidies for Enhanced local quality of Economic develop young but essential Investment life ment initiatives future industries.

Invention Invention Invention Invention

The table above is a naïve analysis. The essence of a helix model is continual exchange among sectors, not just one-way flows. However, closer inter-sectoral relations result in better theories, better policy, better licensees, and smarter investment. The same as if the sectors were not inter-twined, but simply better. Universities and companies get earlier information about grant opportunities and new regulations. Traveling corporate executives notify universities of distant, promising potential licensees. University incubators attract more corporate spin-outs. And so on. Does a triple or quadruple helix create a stronger lock-in? It would seem that in “naturally occurring” clusters, it does. In “designed” clusters, inter-sectoral cooperation is absolutely necessary, so the question is moot. We must also consider the “butterflies” and the “edge-city effect” (Phillips, 2006). Let us look at this paper’s cases for evidence. Kansas City is the only large city between St. Louis and Denver. A look at a map will show this means Kansas City is quite isolated. Like Minneapolis, then, Kansas City has a large catchment area for its medical services. KC’s other butterfly is the Kauffman Foundation, the world’s richest philanthropic organization aimed at fostering entrepreneurship. KC has a history of civic cooperation and boosterism. KC is an edge city; it is not one of the US’ major cultural centers, and so has no tendency to rigid adherence to cultural norms, nor is it a rustic farm community where innovation cannot be expected. It is ideally situated for innovation. The city’s life science cluster is naturally occurring, its triple helix may be just “icing on the cake,” not providing significant extra lock-in, but nonetheless helpful. Beijing’s role as a center of cultural conservatism gives it no edge-city advantage, such as Skolkovo in Russia may enjoy. Indeed too much investment can disguise an underlying lack of cross-sectoral cooperation and trust. We have seen technopolis efforts in the US flounder because too much money was thrown at them. Government investments tend to be short-term; cooperation and trust are long-term assets that better serve the technopolis region. Portland is also an edge city. Its education cluster certainly does not suffer from too much money! The fact that an education industry cannot exist without the cooperation of academe, and to some extent the cooperation of public school officials, may be this cluster’s butterfly. Portugal is an interesting mixture of an edge culture – far from the main cultural centers of Europe and geographically perched on the edge of the continent – and a conservative culture boasting some of the world’s oldest universities. Its helix is characterized by personnel exchange across sectors. It has reached out beyond its own helix to foreign scholars and universities. Two of its three US partner universities

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are in edge cities, Austin and Pittsburgh, and the third, Boston/Cambridge, is known for innovation. Its case illustrates that the helix is not simply a matter of fixed entities cooperating, but rather of the blurring of the boundaries of the traditional entities. Universities become profit-seekers through licensing and taking equity in spin-off companies. Governments begin to act as venture capitalists. Non-profits and social entrepreneurs adopt the practices and jargon of business. Businesses embrace cooperation as well as competition. This blurring of categories always causes discomfort. Again it is the edge cities that are best positioned to deal with it, with the right mixture of boldness and prudence, bolstered by the social reinforcement Phillips (2010) emphasized at UNESCO’s Caribbean and Latin American workshop this spring and evidenced by the strong social capital in Austin, Kansas City, and Portland. Finally, cross-sector cooperation brings more (and better-coordinated) “eyes” to the process of launching and protecting a nascent technopolis. Diverse perspectives can better spot and manage possible “butterflies,” increasing the chances of sustained growth.

Bibliography Mats Benner and Ulf Sandström, Institutionalizing the triple helix: research funding and norms in the academic system. Research Policy. Volume 29, Issue 2, February 2000, Pages 291-301. Goldie Blumenstyk, In New Project, Russian Universities Tap American Expertise in Tech Transfer. Chronicle of Higher Education. September 30, 2010. http://chronicle.com/article/In-New-Project-Russian/124657/ Myung-Hwan Cho, Corporate helix model: the industry and triple helix networks. International Journal of Technology and Globalisation (IJTG), Vol. 4, No. 2, 2008 Henry Etzkowitz, The Triple Helix of University - Industry - Government: Implications for Policy and Evaluation. Working paper 2002·11, Science Policy Institute. Institutet för studier av utbildning och forskning, Drottning Kristinas väg 33D, SE-114 28 Stockholm. Karin Fischer, Portugal Aims to Modernize With Help From the U.S.: Effort to align academe and industry relies on campus partnerships. Chronicle of Higher Education. September 12, 2010. http://chronicle.com/article/Portuguese-Universities-Turn/124364/ F. Fukuyama (1995) Trust: The Social Virtues & the Creation of Prosperity. New York: The Free Press. Loet Leydesdorff, The triple helix: an evolutionary model of innovations. Research Policy 29 2000 243 – 255. Northwest Education Cluster, http://www.portlandedcluster.com Sebastian M. Pfotenhauer, Portuguese Partnerships Seek to Tackle European Higher- Education Reform Challenges. Chronicle of Higher Education. June 24, 2010. http://chronicle.com/article/Portuguese-Partnerships-Seek/66043/ F. Phillips, Social Culture and High Tech Economic Development: The Technopolis Columns. Palgrave Macmillan, London, 2006. F. Phillips, Cluster Bucks. January 13, 2008, http://consciousmanager.blogspot.com/2008/01/cluster-bucks.html

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F. Phillips, “The Godfathers: Characteristics and Roles of Central Individuals in the Transformation of Techno-Regions.” Journal of Centrum Cathedra, 1(2): 12-27, 2008a. F. Phillips, Toward a Sustainable Technopolis. 2009 UNESCO-WTA International Training Workshop “Green Growth based on the Science Park Initiatives.” Jim Snyder, Consider the Northwest Education Cluster. January 25, 2008, http://blogs.edweek.org/edweek/edbizbuzz/2008/01/friday_guest_column_consider_t.ht ml B.Song,, 2004. U.S Biotech Industry Report and an Analysis on BioCluster Development. A report prepared for the Asia Bio Cluster Study. Jeffrey R. Young, Chinese Research Park Incubates Hope for Scholarly Spinoffs. Chronicle of Higher Education. September 14, 2010. http://chronicle.com/article/Chinese-Research- Park/124420/ UTEN Portugal2008-2009 Annual Report. http://utenportugal.org/wp-content/uploads/uten- annual-report-2008-2009.pdf

AUTHOR BIOGRAPHIES Fred Phillips, PhD is a Senior Fellow of the IC2 Institute of the University of Texas at Austin, and Senior Editor of Elsevier’s international journal Technological Forecasting & Social Change. He is on the editorial boards of Int’l Jour. of Global Environmental Issues and Jour. of Sustainable Technologies for Growing Economies. Dr. Phillips’ books include Managing Innovation, Technology, and Entrepreneurship (2009), Social Culture and High-Tech Economic Development: The Technopolis Columns (2006), and The Conscious Manager: Zen for Decision Makers (2003). Originally trained in operations research (PhD 1978, University of Texas at Austin), his own scientific contributions include "Phillips' Law" of longitudinal sampling; the first parallel computing experiments with Data Envelopment Analysis; and “Relative Variety Analysis,” a tool for measuring organizational flexibility. He has won several awards for outstanding research. He holds professorships at Alliant International University in the USA, at Maastricht School of Management in the Netherlands, and at Pontificia Universidad Católica de Lima in Peru, and is Managing Partner of the consulting firm General Informatics LLC. He has consulted worldwide on technology-based regional development. His avocational passions are aikido, Argentine tango, travel and writing.

Pornpimol “Joy” Limprayoon, DBA recently completed a dissertation on industry-government-consumer relations.

Sukaina Alarakhia, DBA has been active with CONNECT, a San Diego area entrepreneurship and technology promotion agency.

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Lecture 2-2

Science and Technology Parks and Incubators to Promote University - Industry Collaboration in Iran

Author: Mostafa K. Eghbal1 Co-authors: Ardalan Najafooshani2, Habibollah Asghari3 and Ashk Fathi Saffar4

1. Tarbiat Modares University, Tehran, Iran, Email:[email protected] 2. Danashahr Co., Tehran, Iran 3. and 4. Rooyesh IT Incubator (RITI)

Abstract The growth of new business from academic research in science parks and incubators may be considered the manifestation of triple helix relations in knowledge-based economies. In developing countries, science parks and incubators have also shown significant influence on the development of government, university and industry interactions. The objective of this paper is to explore the role of science and technology parks and incubators to promote university-industry interactions in Iran. In provisions seen in the five years development plans of Iran, several main objectives have been followed to improve government, industry and university collaboration. Based on these objectives the government dominance is expected to be reduced, industries and universities move away from government domination and closer collaboration between university and industry is expected. The establishment of science and technology parks and incubators in Iran has also facilitated university-industry interactions. Currently 24 science parks and 60 incubators are active in Iran. In recent year, some universities in several cities, especially in Tehran, have also become interested to establish their own science parks and incubators. In one case of Sharif Advanced Technologies Incubator, 86 companies have been established by university professors and/or students since the start of its activity in 2003. At the same time, university related science and technology parks have been able to attract R&D units from the industry. In Isfahan Science and Technology Town, which is located next to Isfahan University of Technology, 12 R&D units from the industry have resided. These parks and incubators have created a good environment for establishment of university based start-up companies and also a platform for commercialization of research results coming out of universities and research centers.

1. Introduction

Knowledge-based economy has been the basis for development plans in many developed as well as developing countries. In a knowledge-based economy, interaction among university, industry and government is considered vital. Many models for such

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an interaction have been developed, but among them the triple helix model (Etzkowitz and Leydesdorff, 2000) has captured more attention. The triple helix model has been developed based on experiences gained in many developed countries. However, in developing countries, in many of which the economy is controlled by government, the triple helix model may not fully describe the actual interaction among university, industry and government. Thus, it is important to consider the evolution of the model and the path developing countries may take to enhance such interaction and get closer to the ideal situation. One of the first theories developed for understanding science and technology and its role on economic development has been the "Linear model of innovation" (Godin, 2005). In this model the innovation starts with basic research, then moves through applied research and development, and finally ends with production and diffusion:

Basic research  Applied research  Development  (Production and) Diffusion

In recent decades, a convergence and crossing-over of university, industry and government has been presented by Etzkowitz through the Triple Helix model, which was further developed by Leydesdorff who has provided theoretical systems for the model (Leydesdorff and Etzkowitz, 1996 and 1997, Etzkowitz and Leydesdorff, 2000). The triple helix refers to a spiral (versus traditional linear) model of innovation with multiple reciprocal relationships among university, industry and government at different points in the process of knowledge capitalization (Etzkowitz 2002). The first step toward a triple helix is usually collaboration among the institutional spheres most involved with innovation, taking place through their traditional roles (Etzkowitz 2008). These institutions are increasingly working together with a spiral pattern of linkages to form the "Triple Helix" (Viale & Ghiglione, 2007). The triple helix model of innovation has been read in different ways in various parts of the world (Etzkowitz 2002). For example, the triple helix model may be underway in the US and Europe at different rates and with varying emphases. In the US, the interface is well underway with a bottom up approach through the interactions of individuals and organizations from different institutional spheres (Viale, and Campodall’ Orto, 2000). In Europe, on the other hand, a top down approach by policy measures can be recognized. The top down processes can also be identified in the US, even though they are often hidden behind “bottom up” processes (Etzkowitz 2002). It may be more accurate to say that both the “bottom up” and “top down” processes are going on simultaneously in both regions. The issue of knowledge-based economy has also been increasingly the focus of policy makers in Latin America and Asia. In these regions, innovation is considered the driving force for future development and special attention has been made on non- traditional sources for new business development. In order to investigate the triple Helix models in developing countries, such as those in Asia, one should consider the individual cases of national innovation systems in these countries. Additionally, it should be noted that the patterns of university, industry and government relations in developing countries are different from those of developed countries. In these countries such a relationship is mostly "government led" at secondly "university led". In addition, it follows a top down approach (Etzkowitz & Leydesdorff, 2000). New types of innovation actors have entered the scene and they are involved in these interactions. These new actors include incubators, science and technology parks (STP), and venture capital firms. The growth of new firms from academic research in STPs

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and incubators and the location of science-based industry adjacent to universities is a manifestation of triple helix relations in knowledge-based societies (Etzkowitz 2008). In this paper, the model of innovation process and interaction among government, university, and industry in Iran will be presented. The government programs and legal provision for a knowledge-based economic development and support of STPs and incubators is also discussed. The main body of the paper is dedicated to presenting the current status of science parks and incubators in Iran and their role to promote university–industry collaboration and also present some relevant cases.

2. Government, University and Industry Model

Iran is an oil dependent country. As long as the revenue of the government comes from the oil, it is hard to imagine that the situation of the government control economy would change significantly. Like most developing countries, most universities and industries in Iran are under the control and influence of the government. The lack of incentive for closer cooperation between universities and industries can be attributed to the mentality of government officials and government funding for these public institutions. Figure 1 can be a good illustration of government, university and industry relationship before the privatization effort in the country.

Government

Industry University

Figure 1. The model of government, university and industry interaction before the privatization effort.

Until a few years ago most industries and universities were owned by the government. In recent years, however, the ownership of some of the big industries has been transferred to the private or semi-private sectors. Although most of the major universities in different regions of Iran are still owned by the government, in recent years more and more private universities and higher education institutes have received permission from the government to start their activities. Among these private universities, the Islamic Azad University has been the most active and admits as many students as the public universities. Although privatization of the industries and universities has been in the agenda of the government in recent years, but the role of these private institutions are still insignificant as compared to the public sector. Public universities receive their entire budget from the government and at the same time government industries are obligated to give their research contract only to public universities.

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The above mentioned actions of the government toward privatization are based on provisions seen in the five years development plans which have been approved by the legislative branch in the past 20 years. Several main objectives have been followed in these plans to improve government, industry and university interactions. The first objective is to change the government from the major role player in the country’s economy to a policy maker and a supportive entity for the private sector. The second objective is to privatize the government owned industries and at the same time provide support for establishment and development of new industries. The third objective has been to provide more independence to universities. It should be mentioned that during these years the dedication and commitment of different governments to above objectives has not been the same. In recent years, for example, there has been less dedication to giving independence to universities. Without considering the ups and downs in the implementation of policies, one can see the paradigm shift in the mindset of legislators and planners for improving government, university and industry interactions. Some of these provisions can be summarized as follows:

 Emphasis on knowledge-based economy for development plans  Privatization of major government owned industries including big industries such as steel, automobile, mines, shipping, insurance, communication, banks, etc.  Government industries and organization are prohibited from competing with the private sector  Support for products and services of local vendors specially hi-tech companies  Obligation for technology transfer in international contracts  To facilitate a competitive business environment  Provision of the new intellectual property regulations  Support for patenting new inventions  Increase of government R&D expenditure to 3 percent of GDP (presently it is about 0.6 percent)  Partial support of government for research projects ordered from industry to universities  Government support for establishment of science parks and incubators  Financial support for start-up companies and SMEs  Tax incentive to promote export of products and services  Free zones rule for tenants of science and technology parks  Contribution of government in establishing private venture capital funds  Support for establishment of R&D networks  Granting universities more independence by giving more authority to their Board of Trustees  Easing regulations for establishment of non-government universities

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 Easing regulation for spending research funds Based on these provisions it is possible to foresee changes in the interaction of government, university and industry in Iran. In this new setting, the government dominance is expected to be reduced; industries and universities move away from fully controlled situation and closer collaboration between university and industry is expected. Figure 2 illustrates such a change as compared to the more dominant government model shown in figure 1. As mentioned earlier, the current government of Iran has not put the same effort for implementation of these provisions as compared to previous governments.

Government

Industry University

Figure 1. The new model of government, university and industry interaction after the privatization effort.

The legal and planning provisions described above are certainly step in the right direction to improve the interaction of government, university and industry in Iran. However, establishment of other science and technology infrastructures such as science and technology parks and incubators can facilitate such interactions even further. This was the rational for the establishment of STPs and incubators in Iran.

3. STPs and Incubators

The idea of science and technology parks started in the early 1990s, but the establishment of the first STP goes back to 1998. One of the original models for this movement was Isfahan Science and Technology Town (ISTT). Although ISTT was established adjacent to and in a close cooperation with Isfahan University of Technology (IUT), but within a few years after it began its activity, ISTT became an independent government organization operating within the framework of Ministry of Science, Research and Technology (MSRT). Based on the experiences gained in Isfahan, several other parks (independent of universities) were established in other cities and provinces of Iran by MSRT. Currently 24 STPs and 60 incubators are active or in the process of establishment in Iran. In recent years prestigious universities in several cities, especially in Tehran, have also become interested to establish their own science and technology parks (STPs). It is evident that these universities follow specific

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objectives for establishing their own STPs, which may differ to some degree with the objectives of already established science parks. The field of activity in the most of these parks is considered as general. Five of the established STPs are located in the capital city of Tehran, of which 2 are university related parks and are located inside the city. The other 3 parks are located in the vicinities of the capital city. The first incubator in Iran started its activity in Isfahan in 2000 by ISTT, and now more than 60 incubators have been established. Tehran Province with 20 incubators has the highest number of incubators. Among these 20 incubators, 10 are university related (some general and some specialized in certain fields; biotechnology, ICT, etc) and the rest are affiliated to technology based institutions. After Tehran, other provinces have at least one incubator, but some have up to 4 incubators. Figure 3 shows the distribution of STPs and incubators in throughout the country. Figure 1- Distribution of STPs & incubators across Iran (The green area shows the Tehran province, the blue circles represent STPs and the red circles are incubators). About 500 SMEs are residing in science and technology parks and 1200 SMEs are located in incubators. On the average, each park and incubator in Iran has 20 SMEs. About 12500 knowledge workers are employed in tenant companies. It should be mentioned that most STPs are in early stage of their development as compared to incubators that most of them are operational.

4. STPs and Incubators in Academia and Research Organizations

In recent years prestigious universities in several cities, especially in Tehran, have become interested to establish their own science and technology parks (STPs). Among them are University of Tehran and Tarbiat Modares University. Majority of universities in Tehran are known for their focus on specific fields of science and technology. However, the above mentioned universities are considered comprehensive, in terms of their educational faculties. Both of these universities became interested to establish their own science and technology park in 2003 and officially started their activities in 2005. Presently, University of Tehran Science and Technology Park (UTSTP) has 80 tenant companies (60 percent incubatees) in different fields such as: biotechnology, ICT, petroleum and petrochemicals, nanotechnology, aerospace, management, agriculture

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and natural resources (UTSTP Website, 2010). Modares Science and Technology Park (MSTP) has focused on the incubation process; the development of the park itself is lagging behind as compared with UTSTP. Thirty companies are active in MSTP incubator (MSTP Website, 2010).

Figure 4. Relationship among different divisions of university STP and their respected clients. These universities follow specific objectives for establishing their own STPs, which may differ to some degree with the objectives of already established science parks. A model for university owned and operated science and technology parks in Iran have been described by Eghbal et. al. (2010). In the operational aspect of their model, different types of clients, types of value added services and the financial resources required for the operation of the park have been considered. Based on these university park clients, three divisions were proposed, each dealing with different categories of clients: i) General division for SME development, ii) Special Division for serving university faculties and student and commercializing research results and iii) Industry Division for expanding cooperation with specific sector of industry based on university potentials (Figure 4). Different kinds of services have been proposed for each division of university STPs (Figure 5). The main theme for services offered in the General Division is “Support for Knowledge-based SMEs”. Services offered in this division are similar to any other STP. The theme for the Special Division is “Technology Commercialization” which offers value added services such as patenting and licensing, technology marketing, financing for market development and technical support. And finally the main theme for the Industry Division is “Industry Networking” with the aim of providing support to initiate clusters and networking among university researchers, industry R&D units, industry spin-offs and international companies. In addition to STPs, many incubators have been established by universities and research centers. The majority of start-up companies in these incubators are formed by university professors, researchers and students. These incubators have created a good

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environment for establishment of university based start-up companies and also a platform for commercialization of research results coming out of universities and research centers. A few cases of such activities will be presented in the following section. 5. Cases from STPs and Incubators

1- Isfahan Science and Technology Town Isfahan Science and Technology Town (ISTT) is considered the first science park in Iran. The idea of establishing ISTT can be credited to the close cooperation of the steel industry in the region with the Isfahan University of Technology. Although the first steps for preparing feasibility study and planning for ISTT started in early 1990s, but the operational activity actually began in the late 1990s by establishing the first incubator in Iran. Isfahan University of Technology allocated 500 hectare of its land to ISTT for the establishment of several STPs and incubators. Such facility next to the university has created ample opportunities for university professors and students, as well as tenant companies and the industry R&D units who are interested to be close to the university. ISTT is considered an independent organization from the university operating under its own Board of Trustee; however, it has kept its close ties with the university to the degree that its top management team has always come from the university. Like many other science parks and science towns, ISTT clients come from a wide spectrum. A closer look at tenant companies, however, shows that university students and professors have a strong presence in these companies. At the present time more than 200 companies are active in ISTT, out of which about 40 companies (20 percent) have been established directly by university professors and students. In other companies, students and faculties are also active as knowledge workers or consultants. In the past decade, 16 new industries have been established based on the technologies developed in ISTT. Four of these new industries have come directly from companies established by university people. ISTT has also created a good environment for the activity of R&Ds coming from the industries in the region. The main objective of these R&D units is to use facilities and resource provided by ISTT and the university. Some of these R&D units and their field of activity are listed in Table 1.

Figure 5. Different kinds of services offered in each division of university STPS

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Table 1. Industry R&D units active in ISTT Tenant R&D Unit Activity 1 Sekkeh Gaz Co. Food Industry - Chocolate 2 Chavosh Rayaneh Co. ICT 3 Khat Ramz Tak Co. Instrumentation – Standard Weighting 4 Fanavaran Keysam Co. Manufacturing – Check Valves 5 Plasma Tech Co. Metallurgy – Surface Engineering 6 Method Electronic Co. Electronics - Invertors 7 Poodr Afshaan Co. Metallurgy – Surface Engineering 8 Tavator Sepahan Co. ICT 9 Pardisan Co. Automation – Automatic Recorder 10 Behineh Niro Sepahan Co. Automation – Power Analyzer Manufacturing- Food Industry, Tanks and 11 Mobadel Tank Co. Reservoirs 12 Keyhan Shir Co. Manufacturing – Control Valves

2- Sharif Advanced Technologies Incubator Sharif University of Technology is considered the best technology university in Iran. It attracts the top high school graduate, many of which leave the country to continue their education or enter professional life in western countries. The presence of highly qualified students and faculties created an excellent opportunity for the establishment of a hi-tech incubator by Sharif University of Technology. Since its establishment in 2003, eighty six companies have been admitted to the incubator, out of which 52 companies have successfully exited the incubator and 9 companies have failed and ceased their activities. At the present 26 companies, are active in the incubator. There are many ways to evaluate the degree of success for incubators. But, for the Sharif Advanced Technologies Incubator, the main success comes from the fact that it has been able to create an environment to attract some the top university graduates (around 350 students) and dampen the impact of brain drain to some degree. In addition, 25 patents have been registered by incubatees in the Sharif incubator. Just in 2009, the tenant companies signed contracts with the value of more than 6 million US dollars. To illustrate how university incubators such as the one in Sharif University have been able to attract students and faculties and help them enter the business environment, two successful cases are presented. Parsa Polymer Sharif Company: This company was established in 2007 by couple of Sharif University professors and their students with the aim of producing polymer composits including anti-abrasion nano-composits. Currently the company employs 26 people and has a production line which is capable of producing 3000 tons of these materials. The company also plans to start another production line with the capacity of 10000 tons. Asr Gooyesh Pardaz Co.: Gooyesh-Pardaz is the first company in Iran that produces voice recognition softwares that are able to recognize Persian voices. This company

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has also been established by a Sharif University professor and his students. At the present time it employs 30 people.

3- Khorasan Science and Technology Park The cases of ISTT and Sharif Hi-Tech Incubators are just couple of examples from STPs and incubators that are associated with specific universities. There are, however, other STPs and incubators in Iran that have no direct or official ties with universities; yet they provide services to university staffs and students. One such case is Khorasan Science and Technology Park (KSTP) which was selected for closer evaluation in this research. KSTP was originally a research center in the Khorasan Province which focused on applied research for the food industry, one of the main industries in the region. In 2002 the Ministry of Science, Research and Technology mandated this and several other research centers to establish their own science and technology parks. With this new mission, KSTP was established in the industrial zone of Mashhad, the capital of Khorasan Province. Considering its previous background, KSTP established a close ties with the industry and that was considered one of the strong points for this newly established technology park. The inherited laboratory facilities and staff became an advantage for KSTP to attract new companies as tenants and provide technical support to them. Like many other STPs, KSTP started its activity by establishing its first incubator. Later, KSTP expanded its incubation activities by forming specialized ICT incubator and two satellite incubators in smaller cities in the Khorasan Province. The strategic location of KSTP in the industrial zone of Mashhad attracted start-up companies, many of them formed by university professors and students. Presently 145 companies are located in the park, out of which 47 are in the incubator, 47 are going through the pre-incubation and 55 considered mature companies and park tenant. Seventeen of these companies have been established by university professors and students (Table 2). Recently, KSTP has come to an agreement with the Ferdowsi University in Mashhad to establish a satellite incubator in the university campus in order to provided services to university start-up companies. This shows that KSTP, which started its activity with closer ties with the industry, is becoming closer to the university and serves as a platform for university–industry collaboration.

6. Conclusion

In their quest toward a knowledge-based economy, developing countries can certainly learn from experiences gained in developed nations. The triple helix model of innovation has been used to interpret the interaction among government, university and industry in many knowledge-based economies. But this model may not describe such interactions in developing countries. Although the economy in Iran is dominated by the government, through several stages of planning steps have been taken to reduce government domination in the in the industry and universities. At the same time, science and technology parks and incubators have been developed rapidly in the past decade to enhance the interaction between universities and industries. Through this process, start-up companies have been developed by university professors and students and industry R&D units have become closer to universities. Among STPs and

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incubators, those established by universities and research organizations seem to have a better chance of improving university-industry collaboration.

Table 2. University start-up companies active in KSTP

Company Field of Activity

1 Dotis Co. Face Recognition Systems Information Management Systems, 2 Sama Toos System Development Co. Organization information 3 Bina Toos Co. Traffic Control Systems Gathering and processing of Traffic 4 Bina Pardaz Shargh Co. Information By Visual Detectors 5 Armanpardaz Rayaneh Mehr Co. Network Base Voice Recording System

6 Behin Saman Co. Radar Distance Measuring Devices Designing Modular Databases and 7 Caspian ICT Co. WebPages Systems 8 Daneshgaran Sanate Sabz Co. Nanostructure Carbons

9 Riz Molecule Dana Co. Industrial Enzymes Production

10 KalaGen Project Co. Biotechnology Devices and Products

11 Sanjesh Abzar Pardis Toos Co. Real Time Volume Metering in fuel tanks

12 Danesh Garayan Novin Delsa Co. Food additives

13 Asre Nano Co. Riverbeds 3D maps

14 Azin Setare Barsava Co. Telephone Control Hardwares & Softwares Design And Manufacturing Driver for High 15 Noor Mashahd Afza Co. Power Electric Motors Material Texture Image Processing 16 Nahamin Pardazan Asia Co. Softwares Essence and Distillate of Medicinal Herbs 17 Exir Gol Sorkh Co. Standardization

Acknowledgment The authors would like to express their appreciation to Hamid Mahdavi from Isfahan Science and Technology Town, Majid Dehbidipour from Sharif Advanced Technologies Incubator and Hashem Mohazab and Fahimeh Hesami from Khorasan Science and Technology Park for their help in providing valuable information from their respective organizations. Contribution of Dr. Mehdi Keshmiri in revising the manuscript and providing constructive comments is also highly appreciated.

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References Etzkowitz, H. & L. Leydesdorff. 2000. The Dynamics of Innovation: From National Systems and ‘Mode 2’ to a Triple Helix of University-Industry-Government Relations. Research Policy 29(2): 109-123. Eghbal, M. K., A. H. Davai Markazi, M. Keshmiri and R. Navvabpour. 2010 A model for university owned and operated Science and Technology Parks in Iran. Proceedings for the XXVII IASP World Conference on Science and Technology Parks, 2010. Daedeok, Korea. Etzkowitz, H. 2002. MIT and The Triple Helix of University-Industry–Government Implications for Policy and Evaluation. Institutet för studier av ut b i ldning och forskning Drottning Kristinas, Stockholm. Etzkowitz, H. 2008. The Triple Helix: University-industry-government innovation in action. Routledge, New York. Godin, B. 2005. The Linear Model of Innovation: The Historical Construction of an Analytical Framework. Project on the History and Sociology of STI Statistics. Working Paper No. 30. Montreal, Canada. Leydesdorff, H., Etzkowitz, H. 1996. Emergence of a Triple Helix of University-Industry- Government Relations, Science and Public Policy. 23, 279-86. Leydesdorff, H., Etzkowitz H., (Eds.). 1997. A triple Helix of University-Industry- Government relations. The future location of Research, Book of Abstracts, Science Policy Institute, State University of New York. Leydesdorff, L. 1996. Luhmann's sociological theory: Its operationalization and future perspectives. Social Science Information, 35 (2): 283-306. Modares Science and Technology Park Website; www.mstpark.org. 2010 University of Tehran Science and Technology Park Website; www.utstp.ir. Viale, R., and Campodall' Orto, S. 2000. Neocorporations or Evalutionary Triple Helix? Suggestions Coming from European Regions. Third Triple Helix Conference. Rio de Janeiro. Viale, R., Ghiglione, B. (1998) The Triple Helix Model: A Tool of the Study of European Regional Socio Economic Systems, in the IPTS Report 29, retrieved www.jrc.es/home/report/english/articles/vol29/REG1E296.htm

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Lecture 2-3

Current State and Prospects for Government-Academia- Industry Cooperation in Japan from the Point of View of Academia

Sangryong CHA

Ph.D, Associate Professor University of Nagasaki, Japan [email protected]

1. Introduction

In Japan, it has been accelerated that intellectual property of universities is transferred to industries from 1998 when the Act on the Promotion of Technology Transfer from Universities to Private Business Operators (the TLO Law as a kind of “Japanese Bayh-Dole Act”) was enforced. Actually, between 2003 and 2008, the number of patent application from universities quadrupled from 2,462 to 9,435 and the number of patent licensing 29 times from 185 to 5,306. When we see only this increasing rate, the government-academia-industry cooperation in Japan seems to have succeeded considerably. However, diverse issues related with it are also pointed out from those who are doing the actual work as follows (Shirai, 2010): Firstly, patents applied from universities have not been necessarily effectively used. As showing in increasing of the number of patent application from universities, the accumulation of intellectual property is steadily advanced owing to a lot of progress like as change of teachers’ consciousness and organization maintenance for practical application of basic research in university. But, the industrial use of it does not necessarily advance and the rate of patent in dormancy is considerably high. Secondly, it does not work that universities reproduce their research fund through the Technology Licensing Organization (TLO) project by the TLO Law. In many Japanese universities, TLO as a mechanism that universities can contribute to industrial world was set up and has been achieving some results through active activities such as patent licensing to business, business incubation, and cooperation with foreign companies and so on. However, about 40 percent of the expenditure for the TLO project including Intellectual Property Office of each university has been covered by the subsidy from the Japanese Government, and the income earned from it is not too large in spite of the quantitative expansion of technology transfer though it.

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Thirdly, though the total of venture businesses from university exceeded 2,000 companies, it is still not much and the number of large-scale company in it is also few comparing with those of USA or China. Moreover, the number of business incubated from university has been decreasing since 2004. This paper, noting the issues mentioned above, reviews the current state of government-academia-industry cooperation in Japan and examines the future prospects of it primarily based on the policy materials of the Ministry of Education, Culture, Sports, Science and Technology (MEXT), Japan from the point of view of academia.

2. Backgrounds and Features

Since the Law for Facilitation the Creation of New Business enforced in 1999, innovation policies in Japan have begun to show a directionality to aim at building innovation system based on government-academia-industry cooperation for business incubation through technology transfer from universities to industries (Ishiki, 2007). Generally, government-academia-industry cooperation means various and wide exchange activities from co-research and technology transfer to internship and employee education between universities and industries supported by governments. In Japan, however, it has been given the strategic priority of policy especially in co- research and technology transfer for innovation and the maintenance of institutions to stimulate the university-industry linkage in universities of science and engineering has been advanced because universities play a critical role in the system of national innovation (Rosenberg, 2000). For example, in the ratio of R&D spending by sector in five major industrialized countries in the latter half of the 1990’s, the share of university in Japan was 20 percent that was the highest numerical value among those 5 countries (Table 2.1).

Table 2.1 Ratio of R&D spending by sector in 5 Major Industrialized Countries University Industry Government Japan (1998) 20.0 66.9 8.7 U.S. (1999) 13.9 76.1 7.0 FRG (1997) 17.8 67.0 15.2 France (1997) 17.3 61.2 20.2 U.K. (1997) 19.7 65.2 13.8 Source: Management and Coordination Agency, Index of Science and Technology, 2000

Much of Japan’s research resources were concentrated in universities that account for 167,000 researchers (35.7%) and 1.9893 trillion yen in research funds (13%) in 2001 (MEXT, 2001). Universities, which have great potential to create innovations, were expected to pass on their research achievements to society (Figure 2.1).

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Figure 2.2 Potential of Universities for Innovation

Source: Mitsubishi Research Institute, Inc., Report of Research on the current status of R&D activities in Japan, 2002

On the other hand, in order for Japanese companies, who had taken time to develop products for mass production by mass marketing under the steady growth of the economy during the “catch up” era that lasted until the 1980s in Japan, to be competitive in the global economy, they need to become “front runners” that create high added value. In addition, they must develop products by one-to-one marketing to meet the diverse needs and create innovations in short time cycles (Figure 2.2).

Figure 2.3 Backgrounds of Change in R&D Needs of Japanese Companies Source: http://unitt.jp/en/tlo/need

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In brief, Japanese companies must select and focus business activities and break away from adhesion to independent R&D through effectively utilizing external resources for gaining global competitive advantage. In such a situation, it is needless to say that academia-industry cooperation was paid to attention naturally. For companies, academia-industry cooperation has merits to utilize high-level research and research facilities, create opportunities for consultation, establish a human network with universities, and down cost compared to independent R&D. Universities, of course, can get merits to secure research funds, contribute to the local communities by passing on the technologies, and expand the scope of new ideas (Figure 2.3).

Figure 2.4 Merits of Academia-Industry Cooperation

Source: Small and Medium Enterprise Agency, White Paper on Small and Medium Enterprises in Japan, 2002

3. TLO and UNITT

The establishment of TLOs by the TLO law was the starting point of policies for urging innovation through technology transfer based on R&D competency of universities. TLOs discover patents and other research achievements that are already accumulated (left unused) in universities and license them out to optimum companies. For companies that are interested in utilizing universities’ research results but would not know where to start since they have had no relationships with universities, TLOs serve as the contact points to remove the inaccessible impression of universities and make it easier for them to make an approach (UNITT, 2010). As the center of government-academia-industry cooperation in Japan, TLOs have a mechanism to obtain patents for university researchers’ research results, license out it to private companies, get revenue from corporations that have commercialized the patents, and return royalties as funds for new researches to universities (Figure 2.4).

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Figure 2.5 Outline of TLO Operation Source: http://unitt.jp/en/tlo

Besides, it plays the core part of academia-industry cooperation as a driving force of the “cycle of intellectual creation” where new businesses are created by technology licensing and part of the resulting profits is returned to the universities as research funds to further activate research at universities (Figure 2.5).

Figure 2.6 Cycle of Intellectual Creation and Role of TLO Source: http://unitt.jp/en/tlo

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To foster TLOs, the Japanese government has introduced measures such as subsidy (maximum: 30 million yen in a year; promotion rate: 2/3; period: 5 years) and guarantee acceptances (maximum: 1 billion yen per TLO) from the Industrial Structure Improvement Fund (the Organization for Small & Medium Enterprises and Regional Innovation, Japan in now), dispatch of patent advisor (5 years) and fee reduction about patent application (1/2 for 1-3years) from the Japan Technomart Foundation. As a result, 50 TLOs has been established till now and the number of patent application was 7,601 cases in 2008 (the Japan Patent Office, 2009). In 2000, then, the Japan Association of University Intellectual Property and Technology Management (UNITT) that consists of all of the approved TLOs 5 was established in order to promote the sound development of partnerships between academia and industry, through exchange, awareness raising, investigations and research, proposals, and other activities aimed at helping institutions of higher learning manage intellectual property and transfer technology more efficiently, maintaining a close partnership between institutions of higher learning, TLOs, and the individuals and institutions that support their activities. Major activities of it are as follows (UNITT, 2010):

 Proposals to help institutions of higher learning manage intellectual property and transfer technology more efficiently  Exchange of information, investigation, and research  Workshops and seminars aimed at developing human resources and disseminating information  Publication of an Association journal and other periodicals  Enhanced communication, exchange, and cooperative relations with other organizations in Japan and internationally  Enhancement of a national support system for intellectual property management and technology transfer at institutions of higher learning  Raising awareness, education, and proposals regarding intellectual property management and technology transfer at institutions of higher learning

4. Functional Change of TLOs and Plan for creating 1,000 Venture Businesses from Universities

At first, it was thought that the relation between TLOs and business incubators in universities is supplementary because they are different from each other on method of technology transfer and target company criteria. TLOs, that is, was recognized as such organizations to focus on opening intellectual property of university for wide range of companies including big businesses and spreading it by technology licensing. On the f

5 An approved TLO is a TLO whose plan for implementation of specified university technology transfer operations (TLO operations) has been authorized by the MEXT and the Minister of Economy, Trade and Industry (METI) under the TLO Law.

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other hand, business incubators were recognized as such facilities to aim to build business start-up through technology transfer from universities to some specific promising entrepreneurs and venture businesses (Sakata, Fujisue, and Nobuhara, 2001). But now it has been strongly requested to create venture businesses from universities based on a functional and systematic cooperation between TLOs and business incubators because risk that technologies developed from university are easily imitated has been decreased owing to the protection of research results from university by TLOs’ activities. In a word, it seems that the focus of policy for government-academia-industry cooperation in Japan, in a word, has shifted from the promotion of technology transfer at the beginning toward the support of business incubation. Especially, since 2002 when the “Plan for Creating 1,000 Venture Businesses from Universities” as a new plan shows a numerical target for business incubation had carried out, a series of support measures such as support for practical researches by private matching funds, strengthening of business incubation in universities, assistance to the fund establishment for venture business from universities, and human resources development in MOT (management of technology) has been taken for business incubation in universities. As a result, it is certain that there have been obtained some visible results such as high-tech ventures that actively used research seeds of university increase by 200 or more every year etc. Though such a result showed possibility and potential of business incubation based on government-academia-industry cooperation, it caused a change on technology transfer, as an essential activity of academia-industry cooperation, to excite entrepreneurship and the foundational function of TLOs to support it. TLOs, that is, were established in most of universities in Japan by the subsidy for academia- industry cooperation from the central government based on the Plan for Creating 1,000 Venture Businesses from Universities mentioned above. However, many of TLOs turned into the place for “technology broker” ironically, and there were a lot of voices to be apprehensive about “play entrepreneur” by university researchers who took advantage of it (Nikkei Business Daily, 2004).

5. Incorporation of National Universities and University Intellectual Property Office

Until now, in Japan, discoveries and inventions made at universities were generally seen as the property of the individual. This system has been widely criticized, however, for not always sufficiently returning the results of research to society, and for too easily allowing intellectual property to remain idle. For this reason, the central government’s Science and Technology Basic Plan (2004) and Intellectual Property Strategic Network (2002) propose the conversion from individual ownership to institutional ownership. Furthermore, the Intellectual Property Working Group of the MEXT and Technology’s Council for Science and Technology created a report calling on universities to make systemic changes necessary to shift to institutional ownership of intellectual property at universities (UNITT, 2010). It became possible to shift institutional ownership of intellectual property at universities from 2004 when national universities were corporatized. Corporatization removes national universities from the national government organizational framework and greatly expands the independence and autonomy of each university. Corporatization was carried out with the objective of enabling national universities to

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improve the quality of their education and research, build appealing national universities rich in individuality (MEXT, 2010). On the assumption of it, in the first place, the MEXT began the University Intellectual Property Office Creation Program (UIPO program) in fiscal 2003 in order to support universities needing to create a system for nationwide intellectual property strategy. The university intellectual property office is a system for the strategic creation, protection, management, and utilization of intellectual property, consequent to the new system whereby as a rule, discoveries and inventions made at universities become the property of the institution (Figure 5.1).

Figure 5.1 University Intellectual Property Office Source: http://unitt.jp/en/ipoffice

The purpose of the UIPO program is to promote the creation of universities that contribute to society through the utilization of intellectual property, by creating university intellectual property offices aimed at managing and utilizing intellectual property at a university-wide level, in order to promote the strategic and systematic creation, management, and utilization of intellectual property at universities (As a rule, continued for 5 years; interim assessment after 2 years). The key points of this program are as follows:

 A new management system based on freedom of thinking by universities  Actively tap into people with experience in private enterprise and other outside personnel  Enhance partnerships with TLOs and other outside organizations

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This program supports 43 selected model universities and other institutions nationwide and about 100 or more public and private universities nationwide have been creating systems for the management and utilization of their intellectual property through this program. The following points are vital for the creation of university intellectual property offices:

 Establishment of a clear intellectual-property policy and other rules  Creation of an organized, university-wide management system  Hiring (outside) experts in intellectual property  Enhancing an effective and efficient utilization readiness

In fiscal 2005, moreover, a new program to support for creation of Super Corporate Relations Centers was begun. The purpose of this program is to further promote partnerships between industry, academia and the public sector by creating Super Corporate Relations Centers, serving as a system to systematically promote partnerships between industry, academia and the public sector, gathering together the university’s research resources with the university intellectual property office as the core. The key points of this program are as follows:

 Build a system for partnership between industry, academia and the public sector on an equal footing with major foreign universities  Promote systematic joint research  Attract active investment from the private sector  Contribute to the development of the Japanese economy and society

This program supports 5 selected model universities implementing the University Intellectual Property Office Creation Program (Figure 5.2).

Figure 5.2 Super Corporate Relations Center Source: http://unitt.jp/en/ipoffice

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In the survey of partnering between industry, academia, and the public sector by public and private universities and other institutions nationwide conducted by the MEXT as of June 2004, current management and utilization of intellectual property by universities and other institutions in Japan is as follows: To a question such as “Does the university assume ownership of intellectual property?,” 182 respondents (38%) in total of 490 answered that institution has ownership as a rule, 45 respondents (9%) answered that individual has ownership as a rule, and 258 respondents (53%) answered that no system in place (Figure 5.3)

Figure 5.3 Does the University Assume Ownership of Intellectual Property? Source: http://unitt.jp/en/ipoffice

On the other hand, to a question such as “Do you have a system in place to manage and utilize intellectual Property (e.g. University Intellectual Property Office)?,” 119 respondents (24%) answered that we already have one, 174 respondents answered that we plan to create one in the future, and 197 respondents (40%) answered that we have no plan to create one (Figure 5.4).

Property (e.g. University Intellectual Property Office)?

Figure 5.4 Do You Have a System in Place to Manage and Utilize Intellectual Source: http://unitt.jp/en/ipoffice

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6. Current Cases

There are some universities that work on more featurable activities to stimulate innovation based on vitalization of government-academia-industry cooperation in Japan: the Mie University, the University of Yamanashi and the Niigata University.

6.1 Case of the Mie University to Vitalize Regional Alliances

6.1.1 Building Regional System of Government-Academia-Industry Cooperation In 2004 when the incorporation of university was carried out, there were established two organizations that the vice president in charge of research is the general director in the Mie University to promote activities of government-academia-industry cooperation more effectively: one is the Intellectual Property Generalization Room to manage joint research agreements and intellectual properties uniformly in the university, and the other is the Mie University Research Center for Creation (the Mie University Social Cooperation Research Center from fiscal 2009) to take charge in digging up seeds for intellectual property from research sprouts to create intellectual property from research results and joint researches with private companies based on university intellectual properties. These organizations are closely related to each other and propelling regional alliance as an important mission of the university.

Figure 6.1 Building Regional System of Government-Academia-Industry Cooperation in the Mie University Source: Author

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Through these organizations and university personnel’s honest approaches, the Mie University is building coordinate relationship with companies and administration in the locality. As a result, the Mie University became a top class university nationwide on the number of joint research with small and medium enterprise. Besides, the Graduate School of Regional Innovation Studies that is the first as a graduate school specialized in education and research related with regional industries in Japan was established in the university in April 2009. Based on a closely cooperation between the graduate school and the center, the university is building a system to return results of education and research to the regional society (Figure 6.1).

6.1.2 Strategy for Regional Revitalization by Regional Promotion Producer Since fiscal 2008 when the Mie University received the adoption of the Project for Strategy Development of Government-Academia-University Cooperation (the Strategy Development Program), this university has concentrated on promoting effective government-academia-university cooperation using effectively the infrastructure of government-academia-industry cooperation that the Mie University had built in the Mie prefecture. In this program, a “Regional Promotion Producer” plans the “Regional Revitalization Project of Mie” that has an effectiveness on regional industries promotion and aims to build and embed a “mechanism” that the parties concerned execute by cooperation in the region. It is also advanced to bring up the following producers for the project succession through the on-the-job training in the project period based on government-academia-university cooperation. Like this, the Mie University is contributing to the regional revitalization of the Mie prefecture as a core of the Mie model of government-academia-university cooperation which aims at regional revitalization through accomplishment of the project for regional revitalization designed by the regional promotion producer.

6.2 Case of the University Consortium for International Intellectual Property Coordination (UCIP) between the University of Yamanashi and the Niigata University

6.2.1 Concept and Feature It was May 1997 that the UCIP, an intercollegiate network for international government-academia-industry cooperation, was started based on cooperation between the University of Yamanashi and the Niigata University. In now, there are 6 universities that participate in it: the Shizuoka University, the Shinshu University, the Shibaura Institute of Technology, the University of Electro-Communication, and two universities mentioned above. The participant universities are doing the activities of international government-academia-industry cooperation based on networking and pooling resources such as human resources, intellectual properties and technologies, facilities among each other. More concretely, the activities include sharing works about intellectual property and legal affair, joint training of international intellectual property talents, development and mutual use of overseas branches, sharing profitable information etc.

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6.2.2 Goal and System The UCIP had set some numerical goals such as the number of assignment and authorization to exploit patent and acceptance results of joint and funded research for laying the groundwork for international government-academia-industry cooperation and creating its results. To attain these goals, the UCIP consists of three subsystem components: a steering committee consisted of two university presidents, staffs of municipality, and intellectual property specialists, a secretariat consisted of international intellectual property talents, and five work sections consisted of participant universities’ staffs (Figure 6.2).

Figure 6.2 System of UCIP Source: Author

7. Conclusion

In the midst of a long-term economic slump, the government-academia-industry cooperation in Japan faces a new phase such as the number of joint research and funded research between universities and industries which had been going up of a right shoulder since fiscal 2004 changed to decrease in fiscal 2009. According to this, the MEXT started a new approach to fill in the gap between universities and industries,

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build a more effective system of government-academia-industry cooperation, and accelerate the return of research results from universities paying attention to two points as follows (Research Infrastructure and Industry-Academia Cooperation Division in MEXT, 2010). Firstly, research results from university are not been still used enough. The patent fee income of Japanese universities is 1/100 or less of it of American universities and the unused rate of patents possessed by universities and TLOs is over 80 %. It is considerably high comparing with that the unused rate of patents possessed by industries according to industry specification is 40~60% (Figure 7.1; 7.2). Besides, as a result of promoting that research results from universities change into intellectual property, smooth use of it might to be ruined.

Figure 7.1 Total Receipts of Research Funds from Private Companies Source: Research Infrastructure and Industry-Academia Cooperation Division in MEXT, 2010

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Figure 7.2 The Number of Patents Possessed by Universities and TLOs and Its Unused Rate Source: Research Infrastructure and Industry-Academia Cooperation Division in MEXT, 2010

Therefore, the MEXT starts two new projects for promoting using the patents in the R&D activities between universities and industries and digging up the utility value of the patents in industries: building the “Research Patent Commons” which patents of university are liberated free of charge for only R&D activities and the “Science and Technology Commons” which technology information related with the Research Patent Commons is additionally offered. The MEXT, moreover, aims at a strategic evolution of handling patent to promote innovation from research results through analyzing technological relativity of patent and making patent map in the projects Secondly, there are few that the approach to university-industry cooperation started from the stage of basic research. In fact, most of the current approach to university- industry cooperation is limited to the stage of applied research matured to some degree. Many private companies, however, are intending to start to cooperate with universities from the earlier stage of research. To answer the needs, the MEXT starts the “Basic Research for University-Industry Co-creation” as a trial from this fiscal year. It is a measure to aim at making “multilayer” and “depth” in government-academia-university cooperation through expansion of the cooperation to basic research fields. A university, that is, sets a technological theme that the university can contribute through discussion with industries, and makes a system for cooperation, discussion and results sharing with industries (“Place of University-Industry Co-creation”), and does the basic research needed by industries (Figure 7.3).

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Figure 7.3 Image of “Place of University-Industry Co-Creation” Source: Author

Now, open innovation is a world trend. However, the strong tendency of “Jimaeshugi (independence principle)” in R&D of Japanese private companies has been pointed out up to now. If private companies in Japan can build business easily taking technologies and ideas from outside the company organization based on the “Place of University- Industry Co-creation” mentioned above, it is expected that about 15 trillion yen of R&D investment by private companies become more effective for the improvement of global competitiveness of Japan.

Bibliography

Shirai, K., “Industry-Academia-Government Cooperation and Strengthening Research Infrastructure for Creating Innovation”, The Monthly Journal of MEXT, No.1674, 2010, pp.21-22 (in Japanese) Ishiki, S., “Venture Business and Policy” in Ohta, K. et al, Special Basic Library: Theory for Venture Business, Tokyo: Nippon Jitsugyo Publishing, 2007, pp.41-73 (in Japanese) Rosenberg, N., Schumpeter and the Endogeneity of Technology: Some American Perspectives, New York: Routledge, 2000, 136p. Management and Coordination Agency, Index of Science and Technology, 2000 (in Japanese) UNITT, http://unitt.jp/en, 2010 MEXT, Annual Report on the Promotion of Science and Technology, 2001 (in Japanese)

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Mitsubishi Research Institute, Inc., Report of Research on the current status of R&D activities in Japan, 2002 Small and Medium Enterprise Agency, White Paper on Small and Medium Enterprises in Japan, 2002 (in Japanese) Japan Patent Office, Annual Report on the Patent Administration, 2009 (in Japanese) Sakata, I., Fujisue, K., and Nobuhara, S., University-facilitated New Business Creation and the Revitalization of Regional Economies: The Role of TLOs and Business Incubators, Tokyo: RIETI, 2001, 254p. Nikkei Business Daily, “Business from Universities: Era Asked Quality”, May 7, 2004 (in Japanese). MEXT, http://www.mext.go.jp/english/org/struct/020.htm, 2010 Research Infrastructure and Industry-Academia Cooperation Division in MEXT, “Future Prospects of Government-Academia-Industry Cooperation”, The Monthly Journal of MEXT, No.1674, 2010, pp.33-34 (in Japanese)

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SSEESSSSIIOONN 33

Innovation Model in Business sector

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Lecture 3-1

The Role of University in the Triple Helix Model: The Practice in China

Herbert Chen Tian lei

Tsinghua University TusPark Research Institute For Innovation

1. Introduction

The triple helix model 6 focuses on the integration and dynamic evolution of different roles to promote knowledge-based production, expansion and industrialization, serving as the foundation for national and regional innovation system. Through the multiple linkages between government, industry and university, resource sharing and communication between the three will be enhanced, while the efficiency of using S&T resources will be improved, and innovation in knowledge, system and technology will also be promoted. As knowledge is playing an increasingly important role in economic development and universities are making growing contribution to high-tech enterprise incubation, more and more attention are being paid to universities that have strong academic background, advanced facilities and pioneering capability of innovation. In the triple helix model, university is playing an eye-catching role that is compatible with government and industry, while it’s actually more active in knowledge application and investment.

1.1 The two revolutionary changes of the university’s role in the world’s academic history. The role of university has mainly gone through two major changes: the first happened in the early 1920s, when research came to be recognized as a legal responsibility of university in addition to teaching. Yet university was still regarded as an organization to create knowledge and excluded from productivity and f

6 In 1995, Etzkowitz and Leydesdorff used the biological concept of triple helix model to analyze the dynamic relationship between university, enterprise and government for the first time.

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competitiveness. (which is decided by resource endowment difference, according to new classical economics). At that time, the dominant way for university to create and spread knowledge was restricted to the mode of teaching—cultivating high-tech talents and scientific researches—conducting fundamental research for industrial innovation. The second academic revolution happened at the end of the 20th century, when knowledge capitalization came to be the hit. University was positioned not only as an educator or a research institution, but wanted to be involved in economic activities to make its due contribution, which resulted in the emergence of a number of entrepreneurial universities. Aiming to enhance national strength and capability of innovation, university has formed a new complementary multi-relationship with industry and local/state government. With clear orientation in teaching and research, university also participates in the industrialization and commercialization of research achievements, effectively boosting the transformation rate of high-tech achievement and strengthening both state and regional capability of innovation. Since these two academic revolutions, the role of university in national and regional innovation system has gradually been defined.

1.2 The triple helix practice in China: Initiated by government and driven by academia In fact, practice of triple helix in China had started a decade earlier than relevant theoretical researches. Nowadays, the government-industry-university mode presently executed has been regarded as the model for regional innovation policy-making and practice; in contrast, academic research on this subject has just started in 2000 and is still at an initial stage. Since 1988, government-led university science park has been employed in China as the major form of pursuing industrial and high-tech innovation. The Zhongguancun Science Park and TusPark were respectively founded in 1988 and 1994 in Beijing, which symbolized the birth of the government-industry-university mode that later made a great number of achievements and promoted both national and regional innovation.

2. Technology innovation of Chinese universities

2.1 University: the cradle of patents Chinese universities are becoming the important cradles of patents that drive the country's scientific progresses. Since 2002, patents granted to universities have been increasing annually (figure 1). Universities throughout the country claim a total of 35,000 patents, among which 20,000 are inventive patents. Universities have won 75 National Natural Science Awards, accounting for 55.07% of all; 64 National Technological Invention Awards, accounting for 64.4% of all; 433 National Science and Technology Progress Awards, accounting for 53.37% of all. From 1989 to 2009, 36 out of the 140 China Patent Awards have been granted to universities, accounting for a quarter of all.

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25000 20000

) 15000 件 ( 10000 5000 0

9 1 3 7 98 99 993 995 997 00 00 1987 1 1 1 1 1 1999 2001 2 2005 2

Figure 1 Number of patents granted to Chinese universities

2.2 Innovation advantage in Chemistry and Metallurgy Since the opening-up and reform, higher education in China has also been seeking for changes with fundamental theology education, widening specialties, integration of science and humanities, developing interdisciplinary courses and humanity/quality education. Universities have been gaining significance in China's social and economic development. Chart 1 is the IPC of Chinese universities. According to the State Intellectual Property Office of China, Chinese (Hong Kong included) universities own 40,806 patents granted as first patentee, among which 40% belong to the Chemistry and Metallurgy category (Category C). Category C, G and B contribute to 70% off all the patents, while category E only has only contributed 1.5%, which shows that Chinese universities still have a long way to go to promote innovation in information technology, biology, communication, etc.

Chart 1. IPC (International Patent Classification) of Chinese Universities Percentage IPC Subject （%） C Chemistry; Metallurgy 39.9 G Physics 15.3

B Performing Operations, Transporting 13.5

A Human Necessities 11.8 H Electricity 11.6 Mechanical Engineering; Lighting; F 4.8 Heating; Weapons; Explosion D Textiles; Paper 1.7 E Fixed Construction 1.5 Total 100 Data Source: Science and Technology Development Center of the Ministry of Education, Report on Intellectual Property of Chinese Universities in 2009, Chinese Higher Education Press, P158

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2.3 High concentration of university patent applications. Patent application and grantees are mostly from the Top 100 universities in China; between 1985 and 2007, applications from these universities accounted for over 79.2% of all. Geographically, about one third of these universities are located in Beijing and Shanghai, while more than 50% are from coastal cities/provinces that are economically developed (Chart 2). This shows that innovation in universities is not only subject to scale effect, but also is closely related to the local economic development level.

Chart 2. Applications from Top 100 universities compared to the national aggregate

Number of patents National Top 100 Ratio university universities aggregate Patents applied during 1985-2007 133539 105881 79.2%

Patents granted from 1985-2008 78929 60011 76.1% Patents granted in 2008 19159 13997 73.1% Patents effective till end of 2008 39214 31813 81.1%

3. Chinese University’s contribution in the triple helix model for innovation

University is not only critical to the commercial transformation of knowledge, but also to create space for knowledge, assembling and innovation; it’s the key factor that influences the innovation system in a knowledge-based economy. In addition to traditional responsibilities such as cultivating talents and conducting researches, Chinese universities are beginning to play an entrepreneurial role by founding businesses with R&D achievements. Meanwhile, government also funds various research projects and improves operation environment to support such business- starting efforts. The triple helix model in China has shown that, university is a powerful engine for national and regional innovation; through methods such as patent and technology transfer, incubator and science parks, university contribute greatly to the industrialization of technological achievements and the growing of high-tech talents. Partnership between university and government, founding of university science park, R&D collaboration between university and enterprise, industry-university-research institution office, etc have turned out to be highly effective in transferring patents into productivity.

3.1 Promote new technology applications through university science parks. By leveraging the innovation advantage of university, university science park is a cluster of enterprise incubator, R&D institution, university entrepreneurship, educational institution and agency services. Incomplete statistics show that by the end of 2008, 69 state-level university parks have been founded in relation to 95 universities, distributed across 30 cities in 24 provinces (13 are in Beijing and 10 are in Shanghai). TusPark is a leader of university high-tech innovation in China. In Jan. 2010, cuaa.net and 21st Century Talents released the “2010 Ranking of Chinese University

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Patent Award”, which showed that Tsinghua University topped the list with 11 patents (from 1989 to 2009). Meanwhile, technology contracts that involve Tsinghua’s scientific achievements have increased dramatically. Technological contracts in 1998 added up to 650, with the total contract value reaching 175 million RMB. In 2009, the number of contracts reached 1624, while the contract value reached 880 million RMB.

3.2 Partnership with government Many universities have formed partnership with local government and enterprise by setting up collaborative R&D institution, fund or industry-university-research office, effectively promoting university's local engagement and the incubation of S&T projects. By now, most universities have set up their own technology transfer center or enterprise, while the R&D departments of these universities are also undertaking some responsibilities of technological transfer. （1）Set up the National Engineering Research Center to promote R&D Supported by the Ministry of Science and Technology and the National Development and Reform Commission, the National Engineering Research Center has been set up as a base of scientific research, technological innovation and industrialization to promote innovation and industrialization. Government has been offering financial and policy support for the center to promote technology transfer, focusing on solving common and key problems as that assembled and matching technology can be transferred and distributed to relevant industries. Currently, there are 141 national engineering technology research centers and 124 national engineering centers, among which one third are affiliated to universities. （2）Co-founding of research institution by university and local government Through co-founding research institution by university and local government, the two organs form a long-term and multi-beneficial collaboration in promoting local economy, in which university offers technology and talents while the government offer instruction and policy support. This is a win-win partnership in which university provides research strength and S&T achievements, while local government offers investment, venue and favorable policies. This is a kind of innovative partnership both for university and local government, which evolves from the initial contract to multi-way partnership that involves technology transfer, commissioned development, etc. The loose relation between the two has gradually developed into a stable, close and long-term partnership. Over recent years, R&D institutions co-founded by university and local government have greatly increased in number. TusPark has always maintained close relationship with local governments. By now, TusPark has signed contracts with 22 provinces (municipalities or autonomous regions) and more than 60 cities, establishing Beijing Tsinghua Industrial R&D Institute, Shenzhen Tsinghua R&D Institute, Hebei Tsinghua R&D Institute, “Yangtze Delta” Tsinghua R&D Institute respectively. These institutes have active served local economic development through industrialization of S&T achievement, talent growing, regional economic strategy planning, etc. By now, Tsinghua University has reached agreement with 28 provinces and 87 prefectural-level cities with regard to R&D, talent growing, etc; in economically developed areas such as Zhujiang Delta, Yangtze Delta and Bohai Sea, Shenzhen Tsinghua R&D Institute, Beijing Tsinghua Industrial R&D Institute, Hebei Tsinghua R&D Institute and Zhejiang “Yangtze Delta” Tsinghua R&D Institute have been founded. Industry-university- institute offices have been founded in Changzhou of Jiangsu Province, Manashan of Anhui Province, Shangyu of Zhejiang Province, Tianjin, Eerduosi of Inner Mongolia,

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Changshao of Hunan Province, etc, which have effective enhanced the industrialization of Tsinghua’s scientific and technology achievements. Some funds have also been set up in partnership with local governments, such as Guangdong Tsinghua Entrepreneurial Fund, Yunnan Tsinghua S&T Fund, Anshan Tsinghua R&D Fund, etc. Tsinghua S&D R&D Department has won the First Prize of the 12th Beijing Technology Market Golden Bridge Award. These institutes play an active role in introducing university’s key projects to local advantages industries, leveraging the intelligence resource of university to help local government make decision and plan, introducing international technology to local industry and helping local talents to pursue further study in university. （ 3 ） Set up S&T cooperation fund to quicken industrialization of S&T achievements S&T cooperation fund is a new successful mode to promote local economy which focuses on enhancing the key competency of enterprises while leveraging the talents, research and information resource of university. There are two types of funds: one is guided by government and benefits on enterprises directly while the other is jointly guided by university and government and benefits both the university and the enterprises; but both funds aim to better promote the industrialization of S&T achievements. Local government decides the focus of the funds according to the local industrial strategy, which serves as a useful tool in transforming the economic development mode. The S&T cooperation funds have not only quickened the industrialization of S&T achievements to promote local economy, but have facilitated the founding of industrial bases such Wuxi and Changzhou, which can be regarded as bonus achievement. After the Guangdong Tsinghua S&T Entrepreneurial Fund was founded, it has built a bridge for Tsinghua University to complete more than 500 projects in Guangzhou, covering a multiple of industries while the contract volume totaled 1 trillion RMB. After the Hebei Tsinghua S&T R&D Fund was founded, Hebei provincial government has allocated 5 million RMB each year to support high-tech projects that are in accordance with policy, with high added value and contribute to Hebei's economy. Over recent years, the fund has supported near 100 projects that valued 30 million RMB, most of which have generated social and economic benefits. Ever since the Yancheng Tsinghua S&T Entrepreneurial Fund was set up, industrialization of S&T achievements and S&T consulting services have been introduced to local industries, which greatly promoted the economic development in Yancheng.

3.3 Partnership with enterprises. （1）Set up university-enterprise R&D institute Collaboration between university and enterprise has led to the setting up of R&D institutes, centers, and labs that bridge the S&T resources of universities and market resources of enterprises; these organs conduct research, feedback the technological and talent demand of enterprises so as to create condition for technology transfer. Regular conferences are organized to discuss technological needs while expert teams are sent to enterprises to diagnose their problems. Enterprises also offer positions for young teachers to get practice and internship opportunities for postgraduates and undergraduates. The joint research lab of Internet multi-media system founded by Zhejiang University and Huawei-3COM Technology Co., Ltd is a typical case. Based on the project of Design of Embedded Software Platform for Digital Instrument Device,

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Zhejiang University has launched an embedded software platform for digital instrument device and 8 industrialized products. Huawei was authorized to develop products by employing this technology, and the products have turned out to be accepted widely among industry. This is a typical example of blending the need for technology and for market. Besides, both parties have made great efforts in solving key technologies, and they collaborated closely through project-setting, R&D and post-service and maintenance; such collaboration considerably contributed to quickening the R&D pace, improving innovative capability and market share for the enterprise. We can conclude that the collaboration between Zhejiang University and Huawei has not only transferred common technologies, but also made breakthrough with key technologies; while the enterprise’s innovative capability has been enhanced, the R&D work of university has become more targeted and practical. All of these have benefited from the multi- beneficial principal of such partnership. （2）Grow innovative talents through entrepreneurial education. In this knowledge-based era, universities, especially the entrepreneurial ones, have become the key organs to cultivate high-level talents for society and the axis of economic development. For universities to truly blend into local economy and society, they have to properly meet the needs of local talents through offering technological services and useful courses. Innovative efforts have been jointly made by Chinese universities and enterprises in cultivating talents, such as offering entrepreneurial courses in university, strengthen entrepreneurial education, offering positions for doctoral candidates in enterprises, etc. Through a variety of strategic cooperation, the graduates will have their abilities of innovation, teamwork, and resource integration improved, which can be further applied to scientific and technological research and entrepreneurial practice. The students will also have a better understanding of market, industry, resource integration and entrepreneurship. In 2000, the Department of Technology Economy and Management of Tsinghua University contributed in founding the Tsinghua National Entrepreneurship Research Center and the Research Center for Technological Innovation of Tsinghua, which have undertaken the task of designing entrepreneurship relevant courses, compiling relevant books and organizing domestic or international meetings and academic forums. Students are encouraged to participate in national entrepreneurship contests, through which a bridge is built between the investors and the young people who want to start a business. （3）Establish technology-based enterprises University is the cradle of new technology based firms and the fertile soil to develop competitive products and innovative ideas. High-tech enterprises have been founded either invested by university or social capital based on the technology of universities. As enterprises operate, the need for new technology and workmanship will appear, which will be immediately tackled by the research staff of university. This helps the enterprise to reduce technological risks. For example, OLED is regarded as one of the most promising display technologies. Since 1996 Tsinghua had been involved in the R&D of OLED and by 2001, Beijing Visionox Co., Ltd had joined hands with Tisnghua in testing products; in 2005, the plan of OLED mass production was confirmed. In Oct. 2008, supported by the industry- university-institute of Suzhou, the first Chinese product line of OLED was built in Kunshan, Jiangsu Province, which was based on the R&D achievement of the project team of Qiu Yong, a professor of Chemistry Department, Tsinghua University. Another example is, supported by the industry-university-institute of Baotou, the project of 3.6-

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ton thick-walled seamless steel pipe extrusion machine led by the Department of Mechanical Engineering of Tsinghua University was started in Baotou, and the hot commissioning turned out successful in Jul.2007, followed by the successful production of the first big-diameter thick-walled seamless steel pipe. Nanjing University has also set up a linkage with government and enterprise, forming an innovation system of “fundamental research—S&T incubation— industrialization of S&T achievement.” Guided by the national strategy of green S&T innovation, the Environment College of Nanjing University founded the Nange Tech in 2002 and an engineering center in 2004, which formed a market-oriented technology innovation system that involves government, industry and university. Through the partnership between the company and the engineering center, more than 20 patents have been applied to a dozen of organic wastewater processing solutions, which more than 40 projects have been promoted in 30 enterprises across 11 provinces, involving industries such as chemistry engineering, printing and dyeing, agriculture chemicals, etc. A dozen of state-level R&D projects have been completed, while a dozen of provincial S&T progress prizes were awarded. In this case, Nanjing University has focused on the governmental strategy of environment technology to pursue S&T innovation, effectively integrating research team, talent growing, product launch and marking to form a long-lasting innovative power.

4. Problems

4.1 Centralized ownership, loss through private channel and inactivity of S&T achievements. The majority of S&T achievements are dominated by only a few universities. According to the ranking result of patent application, grantee and effectiveness announced by the Ministry of Education in 2009, Zhejiang University was the No.1 applier and grantee with 1780 patent applications and 919 patents granted; Tsinghua University also topped the list by owing the most effective patents. However, in 2005, 75% of Chinese universities made few or none patent application. A survey proposed by the State Intellectual Property Office and conducted by Zhejiang Industrial University has shown that, patent applications are unevenly contributed by Chinese university: 6 universities, i.e. Tsinghua, Fudan, Shanghai Jiaotong, Zhejiang University, Wuhan University and South China University of Technology, made 4809 patent applications within 5 years, accounting for 26.5% of the all. Universities in Zhejiang made 1076 patent applications over 5 years, but 91.7% applications were made by Zhejiang University and Zhejiang Industrial University. Meanwhile, the management of S&T achievements is yet to be improved, as losses of such achievements happen frequently. A survey has shown that loss of S&T achievements happens at 30% of universities: some are plagiarized and others get lost with staff turnover. Some faculty or research staff of university even makes use of these achievements to make money privately or transfer them to others at a low price. Besides, the university implementation rate of patent is still at a low level. Over the 5 years, universities of China have been granted with 8389 patents but only 22.8% of them have been put into practice, while the average national patent implementation rate is about 30%. About 77.2% university patents, including new technologies, materials, products and techniques, are shelved and forgotten due to a variety of

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reasons. Statistics have shown that, 57.5% universities agree that many patents are applied out of the need of personal job review and are not intended for implementation; 58.8% universities agree that some patents are applied to complete a project and are not intended for implementation, either.

4.2 Powerful Government and Administrative Tendency of University System Although the triple helix model in the international sense defines the relationship between the three parties as equal and loose, the case in China is different: Chinese government plays a guiding role and takes lead in connecting university and enterprises; besides, Chinese government also offers a variety of services to quicken the industrialization of technologies and promote local economy. The triple helix model in China is led by government, which is not the most dynamic way even the target can still be met. The dominance and bureaucracy of government result in the fewer initiatives taken by universities, and their research ability is also restricted from leading industrial upgrade and development. Universities still rely too much on external forces. An article published on Science Sept. 3rd 2010 showed the concern over China's research culture. It pointed out that the huge investment made by Chinese government for R&D each year has failed to make a breakthrough with scientific and technological innovation in the country. The author thought the cheating in budget distribution and the general research culture was to blame. Many large projects are set by government not for the real “state need”, but are awarded to institutes or research teams that share good relationship with the authority. In general, the R&D and industrialization of technologies in China still has a long way to go to catch up with developed countries; technological innovation hasn‘t played its due role in raising the country’s international competency.

5. Conclusion

The university-industry-government interaction is becoming the foundation for a developed industry or society to map out its economic strategy. Through creating, broadcasting and using knowledge, university makes its due contribution to economic development and social progress; it plays a significant role for a nation’s innovation strategy. Chinese university features an interactive spiral relationship with government, enterprise, research institute and agency to realize industrialization and transfer of technologies; it’s not only an important base to grow innovative and entrepreneurial talents, incubate high-tech firms but a great power to enhance local economic competency and improve S&T ability. However, there are still many problems to be solved with Chinese universities and research culture. As these barriers get eliminated, academic institutes in China will surely shine brightly in building an innovative country.

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Lecture 3-2

Arrangement of actors in the Triple Helix Innovation

Mr. José Alberto Sampaio Aranha Translated by Vanessa Eleutheriou

Director, Genesis Institute of PUC-Rio Rua Marquês de Sao Vicente, 225 Edificio Dom Jaime de Barros Câmara Gavea 22451-900, Rio de Janeiro, Brazil

1. Introduction

Increased productivity / competitiveness of countries and cities depend more and more on public policies established by local government. The potential of a site no longer depends so much on its location, climate or natural resources, but on their willingness, ability, energy, values and human organization (KOTHER, 1993). The competitiveness of these places in the knowledge era is in the speed with which innovation is generated; this relationship was one of the critical success factors for population’s quality of life. The more it generates innovation, more economic development we have, and therefore more resources for investment in quality of life of the population that adds further knowledge to the process – what can generate more technological changes, that could lead to more innovation, forming a virtuous circle as shown in the UNDP's development human report7. And how is it possible to make the country more innovative? What public policies are needed to stimulate and organize people to innovate? How to explain that Brazil is the 13rd country (2008) in indexed scientific articles8, 28th in patents9 and 68th (2009) in innovation10? First it is important to identify that these indicators depend on different public policies. They can help themselves, but are not necessarily correlated or ordered. That is, we need a specific public policy towards innovation, in addition to those already used for the generation of knowledge and technology. f

7 Human Development Report 2001 – United Nations Development Program - http://www.undp.org/hdr2001/ 8 http://acessolivrebrasil.wordpress.com/2009/05/08/noticia-da-agencia-brasil-relata-nova-colocacao-do- brasil-no-ranking-de-numero-de-artigos-publicados/ 9 http://www.telecentros.desenvolvimento.gov.br/sitio/destaques/destaque.php?sq_conteudo=3840 10 Global innovation index 2010 – 3rd edition of Insead report, with the Confederation of Indian Industry (CII) - http://www.gii.networkedreadiness.com/main/home.cfm

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All these indicators belong to what we call innovation system, working with the generation and use of knowledge, but with different goals; only the innovation itself directly brings economic development, competitiveness and a possible social and environmental development. One of the factors that affect an innovation system is its transfer. The transfer is the action of diffusion of innovation among all elements of the system. To develop its full potential, one of the adopted models is linear, in which basic research becomes innovation through two intermediate steps: the conversion of basic research in applied research and the transformation of this technology11. The innovation really takes place by the time this technology is introduced into the market (Oslo Manual)12. An innovation is the consolidation in the market of a new product or service. This way, it is called "transfer process" the translation of the results of basic and applied research in technology and its subsequent use by the society through goods, services and processes.

2. Actors from the innovation system

Linear Model - Transfer of basic research in innovation

In basic research, the major scientific discoveries (usually called theories for consisting of a set of scientifically proven explanations about natural phenomena) in most cases involve a large number of scientists who contribute with parts of the theory, either through basic and experimental research work or by drafting laws (SABBATINI, 2000). f

11 II Encuentro Internacional de Rectores – Innovación y transferencia del conocimiento - Debate general - Reflexiones sobre el análisis de un sistema de innovación - Guadalajara , Mexico - 08 /03/ 2010 – http://iytc.universiablogs.net/2010/03/08/reflexiones-sobre-analisi-sistema-innovacion/ 12 http://www.finep.gov.br/dcom/brasil_inovador/arquivos/manual_de_oslo/cap3_02_inovacao.html

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Unlike the discoveries, inventions usually belong to a single person or a small number of employees who work in the same project. They enhance the technological potential of the country and are a way of transforming the knowledge generated through basic and/or applied research in projects and prototypes that can be patented13. The innovation – word derived from the Latin term innovatio – refers to an idea, method or object that is created and little resembles previous patterns. Currently, the word “innovation” is being considered as the invention that reached the market. So that innovation is consolidated, it requires different actors, researchers or scientists, inventors and producers or businessmen. This relationship of continuity was established at the advent of the Industrial Revolution, involving scientific progress-invention-innovation, so that the innovative process represented the end of a chain where technological practice was linked with other social systems, causing resistance and re-meaning the various institutions (THALES, 2006). However the current trend of formation of a technoscience significantly alters this panorama. The connection between components of technological advancement is organized as follows: invention-innovation-growth. The innovation becomes as the Schumpeterian perspective – means and instrument for the effectuation of economic growth. This implies in an instrumentalization of innovative practice aimed solely to growth, making it contained and programmable (THALES, 2006). In this context, one of the competitiveness factors of companies and nations is the time required to transform knowledge into products or services, that is, the time it takes to introduce them into the market before others do, i.e., before changes occur. We could then say that the future of innovation lies in reducing the time of knowledge generation and of its use by society (ARANHA, 2009). The linear historical sequence shown above where innovation is born according to different views – on academic research or in the company – tends to be modified so that it is effectively born on the market. The presence of civil society in innovation has a key role in the viability of projects, which makes the management of the innovative process better consider this group in the set of actors in innovation environments. The society then stands in the center of the triple helix (ARANHA, 2006). My view is that one should treat knowledge generation with a focus on solving problems of society and on the welfare of people, and set the proper use of knowledge generated by the society itself as a measuring parameter of this generation quality. Furthermore, it is necessary to integrate the research laboratories of one region in a steady stream of preparation of professionals and production of knowledge, through the creation of competitive enterprises directed towards a particular industry which can also provide local economic and social development. The biggest efficiency of this process will occur when there is complete utilization of knowledge by the society. A good example of this process was the mobilization of f

13 ANI – Associação Nacional dos Inventores - http://www.inventores.com.br/sistema/home/quem_somos.aspx

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Pasteur so that farms implanted minimum standards of hygiene – when he developed the process of "pasteurization." That is, he extended his laboratory to the farms. The incentive for knowledge generation, reducing the distance between the generation, accumulation and its use by society, will result in shortening the time between the product or service creation and its use in a greater interaction Industry-University, actors of this innovation system. A social system is a plurality of individuals who develop interactions according to shared standards and cultural meanings. Human relationships are the actions and attitudes developed by individuals and groups. The behavior of people is highly influenced by the environment and the existing informal attitudes and rules that exist in groups and are founded on individual processes, based on the interaction and relationships between people. These produce approach – cooperation, accommodation, assimilation (or expulsion), competition and conflict (ARANHA, 2009, ch. 8). The man builds his individuality in a contradictory way, because he is supported and constrained by singularizing (VIGOSTSKI, p.56, 1929). "We become ourselves through others”. The personality is made by the society or in social life, in a process that involves the internal workings of the human being to unify to others and distinguish from them, assuming a role more or less different from those performed by other group members (GÓES, 2000). In this context, we must consider that the innovation process is composed of different social groups (researchers, inventors, producers, innovative entrepreneurs and civil society), each one with a specific character, and who needs to assume a group consciousness with the same goals when treated as a macro group of innovation. The approach, rather than linear, must be seen then by the systemic point of view (ARANHA, 2010).

Systemic Approach

The term Social Capital refers to social networks based on trust, cooperation and innovation, developed by individuals within and outside an organization, facilitating access to information and knowledge. Such networks can adopt a formal character

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(determined by the hierarchical links typical from the formal organization chart); but above all are informal in nature, involving horizontal links (between pairs) and diagonal (between and stakeholders collaborators from different areas) (GARCIA, 2010). The Social Capital is the glue that interconnects the various forms of human capital, creating the most valuable intangible asset of organizations: the human working networks. The innovative entrepreneur is the actor who can deliver the benefits of Social Capital Management and create the necessary environments for innovation.

3. Innovation environments

The innovation environments take into consideration factors arising from cultural heritage and the particular creativity of a social group, which traditionally are not recognized as components of innovation.

My perception is that creativity includes three different aspects related to entrepreneurship (theory and practice): People, as innovators, entrepreneurs and articulators who are at the heart of creative production and function as agents of transformation; Culture, which helps to give people motivation and create a value system for communities and a sustainable creative culture; and Environment, where innovation occurs through the appropriation of knowledge and use of technology as productive factors to encourage more creativity (MIRANDA, 2009). The difference between creativity and innovation is the same as that between thinking about achieving goals and executing them. “Creativity imagines new things. Innovation does new things” (LEVITT, 1974). We might say then that the innovation process is to think new things, create new things and distribute new things. In these steps we need to: research and learn the thinking of new things; make and build in the creation of new things; and implement and commercialize in the distribution of new products, processes and services.

This is the business environment today. It requires more skill to manage change than strict controls to obtain results. Dynamic and integrated teams help more than a rigid structure with defined hierarchical levels. The alignment of mission, vision, values and social and ethic responsibility among people in the company, research institutions and society are more important than the balance sheet. This mechanism is composed of work teams built through continuous organizational learning, or acquisition and socialization of knowledge through individuals and their subsequent transformation into collective standards of performance. The main goal of these organizations is the human being. Therefore, managing becomes structuring the abilities of people in the formation of communities able to learn and safely act. Malvezzi (1999) calls these communities in the company “communities of action”, where the important thing is not having individuals who learn, but groups (human communities of work) that absorb knowledge, incorporate it and turn it into collective behavior.

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4. Smart cities

This is the characteristic of intelligent cities, localities of the triple helix, communities that apprehend and are creative (ELEUTHERIOU, 2010). The creative cities are linked to urban transformation, as an intergenerational collective that brings together professionals from various fields to think and propose creative solutions that have art and culture as drivers of urban and social transformation14. Smart City15 is a strategy for economic and social development of regions, promoting quality of life for its citizens16. These cities use innovative technologies based on open platforms, providing Internet services for the development of innovation ecosystems – what creates opportunity for new sustainable and high quality services for citizens and businesses. Smart City is different from a "digital city" when environmental and social capital play an important role. Smart Cities can be identified (and classified) along six main axes or dimensions:

A smart economy, that focused in stimulating competitiveness, innovative enterprises, productivity and international relations; The smart mobility, that includes a secure, sustainable and innovative transport system for accessibility; The smart environment, that stimulates the attractiveness of natural conditions, with environmental protection and sustainable management of resources, working technology, innovation and creativity to improve quality of life on the planet, targeting an global, sustainable and productive growth. Smart people, citizens as co-producers and consumers of content and services, engaged earlier in the innovation process and being respected in their patterns of behavior in their new behaviors. People encouraged to increase their skills with ongoing training in services and entrepreneurship, highlighting the social and ethnic diversity, the creativity and the participation in public life. Smart life, quality of life with healthy conditions, cultural facilities, safety, educational facilities, attractive tourism and social cohesion. Participatory urban planning and co- design. One of the roles of Culture in this context is the social integration, which disrupts the distances between social groups through "fostering creativity, the rescue of population self-esteem, the rescue of traditional values and, through them, the socio- cultural identity." (VETRALE, 2000) Smart governance, which involves the participation of citizens in decision making and encourages public-private partnerships. Participatory governance, responsible, transparent, receptive, efficient, equitable and inclusive. Develop long-term plans, creating a strategic vision that meets the needs of future generations. Foster innovation in education and learning. We need smart people: more than infrastructure legacy of f

14 http://www.cidadecriativa.org/ 15 Ranking of European medium-sized cities. Universidad Tecnológica de Viena, Universidad de Ljubljana y Universidad Tecnológica de Delft. 2007. 16 Vision of Parque de Innovacion de Servicios para las Personas da La Salle de Madrid - http://www.lasalleparquedeinnovacion.es/

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the big events, we have to think about the knowledge legacy for people - in the human capital.

5. Innovation mechanisms in cities

Entrepreneurship in Brazil has grown significantly in recent years. Much of this growth is underpinned by a model where the innovation habitats (incubators and parks), are supported or backed by fostering institutions where the government has a significant role. The incubator movement had a sharp increase between the years 1995 to 2008 and the technology parks have shown a sharp increase from 2003 on.

Chart 1. Annual evolution in the number of incubators and technology parks in Brazil Source: Portfólio de Parques Tecnológicos no Brasil – ANPROTEC – 2008

Technology and Science Parks are directly related to the local and regional socio- economic development, implemented from structuring programs. The state and local governments realize that it comes to strategies to stimulate growth and direct the development of their regions. These environments cause impacts with social reflect in their surroundings and, as a whole, in trade, services and real estate sectors, which will feel more acutely the effects of its operation. The existence of a technology park in a region (states and districts) tends to generate a change in behavior of the private and academic sector; among other impacts is the demand of professionals training with knowledge excellence. When well planned and structured, the impact of the Technology Park in local and regional economy, traditionally associated with a productive sector, promotes a

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considerable boost in the region. It is noteworthy that the impacts generated by the implementation of a Technology Park should be measured over the long term. It serves as the bridge between research and production in the process of transforming the local economy, playing a decisive role to leverage the state's development by introducing in academic field the demands of society and productive sector and, at the same time, responding to these demands (ARANHA, 2010). In a city that has no more physical space for the installation of large industries, a Technology Park is an alternative to diversify the local economy and prevent its stagnation. Brazil's position on the current world scenario and the supply of resources that characterizes the current moment of national economy, however, should be seen as a friendly warning that calls for the construction of a new model. In this new model, entrepreneurs, managers of innovation habitats, fund managers and investors themselves need to reexamine their performance. A possible strategy is to stimulate self-sustainable incubators and parks, which are those who are financially viable, besides the effectiveness to achieve their goals by optimizing resources and results. Only self-sustainable parks or incubators can be considered effective and with good prospects of becoming perennial. Self-sustainable incubators and parks should be managed and financed as private companies. They are born of a conjunction between entrepreneurs, venture capital and corporations and must have a manager or director who participates as a venture partner, sharing the enterprise risk: if the business fails, these actors are subject to loss of investment, but if succeed, will participate in the obtained financial return (FRICK, 2010).

6. A new profile for innovation actors

An initiative of SEBRAE and ANPROTEC developed between the years 2008 and 2009 allowed the start the building process of a performance model for the incubators, what received the name of Centro de Referência para Apoio a Novos Empreendedores – CERNE (reference center to support new entrepreneurs). The main objective was defined as to provide an important change in quantity and quality of their efforts in support of entrepreneurship17. The implementation of the project led to the conjunct definition along with the incubators themselves, of a reference model containing "the key systems, components and practices that an incubator must implement to systematically generate a growing number of successful innovative businesses” 18. The model led to the identification of four levels of maturity to be achieved in future by the incubators, being the goals of each, from minor to major, the following ones: CERNE 1: To professionalize the generation process of innovative entrepreneurships. f

17 Modelo de Referência para apoio a novos empreendimentos. Publicação (s.d) da ANPROTEC e SEBRAE. 18 Modelo de Referência para apoio a novos empreendimentos. Publicação (s.d) da ANPROTEC e SEBRAE.

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CERNE 2: To improve internal processes of prospection for demand and supply of innovative projects, strategic planning and attendance to associate companies. CERNE 3: To strengthen the partners’ network in order to increase the insertion into the regional system, implement a system of distance incubation and establishing a network of experts. CERNE 4: To implement an innovation management system, to be supplemented with other information security systems, environmental management and social responsibility. The CERNE is still under discussion by the various actors in all habitats of innovation. And it is extremely important that occurs an effective implementation at each stage as an initial step towards the consolidation of institutions capable of promoting the rapprochement of venture capital (venture capital and private equity). The table below lists some of the activities envisaged under CERNE according to investment funds requirements (CASTRO, 2010).

Table 1. Some support actions from incubators

Criteria How is the CERNE model able to help?

The incubator must provide guidance to entrepreneurs in developing the Technology Plan. In addition, the incubator needs to assist Favourable entrepreneurs in the development of aspects related to products, services position and technologies, so as to make them more competitive. The incubator can assist in finding the best way to create value based on their competitive differential. During the selection process, the incubator should have evaluation criteria of the entrepreneur profile. In addition, the incubator must develop behavioral aspects and the entrepreneur profile, always thinking Committed in his life included in the entrepreneurship (taking account of the possible entrepreneur difficulties in his personal life during the development of business). It is also important to support the entrepreneur in the relationship with your staff and partners, especially when internal disagreements occur between collaborators and partners.

The incubator must develop aspects related to the management of commercial sector, including at least topics on organizing and Business motivating sales staff, marketing strategies, sales strategies. Model Consultancies and target audience must be defined to be undertaken. For all that to be developed, the incubator needs to evaluate and structure, where necessary, the business model of the enterprise.

The incubator should have a Business Plan model so that entrepreneurs can present their entrepreneurship proposals and update them throughout the process of incubation. The incubators can also assist Business Plan entrepreneurs in developing the executive summary, raising the most important issues in the business. In addition, the incubator can help the entrepreneur to develop managerial skills for the management of critical functions and processes of the enterprise.

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The incubator guides entrepreneurs in preparing a formal document outlining the planning of short, medium and long term for the economic and financial development of the enterprise, considering the Investment need of working capital to support its activities and identifying the needs structure for capital investment. In addition, the incubator develops the aspects related to resource management, investor relations and risk analysis, among others.

Table 1 summarizes the support measures of general nature. It is also important to complement with the discussion of other actions to be implemented by incubators, accelerators and managers of technology parks. The ultimate goal is to reach the concept of profitable or self-sustaining incubators.

7. Proposal for an actors’ interface in the triple helix

Innovation takes place through a set of institutions – research centers, technological, productive, and society. These in turn are represented by different actors – researchers, inventors, producers, investors and consumers. Sometimes the same person can take some of these roles, but either way the relations between the actors, known as social capital, will be a decisive factor in the innovation process. To catalyze these relations we recommend the innovative entrepreneur, a role that needs to be prepared to articulate the networks that produce innovation. Innovation must be focused on the well-being of people and stimulate economic, social and environmental development with international scope. That is, it must be sustainable. Since we’ll depend on the interaction ability of the entrepreneur – a bridge between the generation and use of knowledge –, he has to be analyzed in its relation with the “social context” or the surrounding environment. This innovation environment within the Schumpeterian view is connected to the competitiveness of nations, as mentioned

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above, and should be part of public policy in providing conditions for competitiveness to the cities which will absorb these products in the market. But data from more advanced countries show that the innovative capacity of a company or a nation does not depend simply of their economic capacity to invest in new technologies, or of their leaders’, to develop appropriate economic strategies; but the social, cultural and political capacity to productively apply and socially enjoy the tangible and intangible assets available (MACIEL, 2001). The constructivist sociology says that the choice of specific technologies and the refusal of others are not based on purely economic or rational criteria, but rather in compatibilization involving beliefs and interests of various strategic groups and sectors that are in technological activity. In this sense, the economic interests of the triple helix follow up, but do not determine the route of innovation. Not only are the scientific and economic agents able to determine the technological practice, but also the social actors.

References

ARANHA, JA - Local Socio-Economic Development Micro Cluster In 5th Triple Helix Congress, Itália, maio 2005. ARANHA, JA -The Future Of Innovation Is The Approximation Between Knowledge Generation and The Market - Publication “The Future of Innovation”- http://thefutureofinnovation.org/, Article © 2009. ARANHA, JA - InterFaces: a chave para compreender as pessoas e suas relações em um ambiente de inovação – Editora Saraiva (SP) 2009. ARANHA, JA - Da visão de bem estar da sociedade as ações de realização local - Latin America and the Caribbean Regional Workshop on Development of Science Parks and Technology Business Incubators - UNESCO - Costa Rica - 2010.

ARANHA, JA - As relações humanas no processo de inovação - XI encontro de Reitores do Grupo Tordesillas -Seminario: Fomentando el Espíritu Emprendedor – Universidade Mackenzie (SP) 2010. CASTRO, Priscila O – Material para publicação de Venture Capital e sua relação com os Habitats de inovação – publicação BMF&Bovespa –SP, 2010.

ELEUTHERIOU, V; ARANHA, JA e ZARDO, JB - Smart Cities – 1o. Workshop do Programa 2014-Bis – Edição Finep – RJ, Out 2010.

FRICK, O; ARANHA, JA - Minicurso: O Venture Capital e sua relação com os Habitats de inovação - XX Seminário Nacional de Parques Tecnológicos e Incubadoras de Empresas – MTS – 2010. GARCÍA, IGNACIO - Do Capital Humano ao Capital Social. A nova ciência das redes organizacionais na Gestão de Pessoas – site 14/06/2010 – http:// www.rh.com.br/Portal/Mudanca/Artigo/6627/do-capital-humano-ao-capital-social-a- nova-ciencia-das-redes-organizacionais-na-gestao-de-pessoas.html GOES, MARIA CECÍLIA RAFAEL DE. A formação do indivíduo nas relações sociais: contribuições teóricas de Lev Vigotski e Pierre Janet. Educ. Soc., Campinas, v. 21, n. 71, 2000. . KOTLER, P., HAIDER, D., REIN, I. Marketing Places. The Free Press, 1993.

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LEVITT, HARVARD THEODORE – Marketing for Businee Growth - McGraw-Hill; [2d ed.] edition (NY) 1974. MACIEL M.L - Hélices, sistemas, ambientes e modelos: os desafios à Sociologia da Inovação - Sociologias, Porto Alegre, ano 3, nº 6, jul/dez 2001, p. 18-29 MALVEZZI, Sigmar - O Agente Econômico Reflexivo - Um novo desafio para a psicologia organizacional - (EAESP-FGV & IP/USP) - http:// www.ufba.br/~conpsi/conpsi1999/F009.html MIRANDA, PAULO C; ARANHA, JOSÉ ALBERTO E ZARDO, JULIA - IASP World Conference – Barcelona – 2009. SABBATINI, RENATO - As maiores descobertas científicas do milênio - Jornal Correio Popular, Campinas, 5/3/2000. http://www.sabbatini.com/renato/correio/ciencia/cp000305.htm THALES NOVAES DE ANDRADE - Aspectos sociais e tecnológicos das atividades de inovação- Lua Nova, São Paulo, 66: 139-166, 2006. VETRALE, Silvia (Coord.). Estudio internacional sobre políticas culturales urbanas. Montevideo: VYGOTSKY, L.S. - “Concrete Human Psychology”, in Soviet Psychology – 27 (2) pp. 53-77 - 1986; 1929.

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Lecture 3-3

A Tale of Two 3-Helix like efforts in Malaysian Bio-technology Industry

Mohan V Avvari Nottingham University Business School, Univeristy of Nottingham – Malaysia Campus, Jalan Broga, 43500. Semenyih, (Sl). Malaysia. [email protected]

Isshammudin Ismail Pahang Bio Science Snd Bhd. Malaysia

1. Introduction

The Triple Helix approach, developed by Henry Etzkowitz and Loet Leydesdorff, is based on the perspective of University as a leader of the relationship with Industry and Government, to generate new knowledge, innovation and economic development. In knowledge-based economies / societies and in the case of countries like Malaysia – which want to transform from a product based to a knowledge based economy - the interaction among Triple Helix of university-industry-government is being increasingly considered as the source of innovation and development. With a triple helix approach the university-government interactions are expected to help jump-start the creation of firms or if there is an existing set of firm it helps expand their growth. The triple helix model places a emphasis on interaction, external linkages and collaboration. It represents a departure from the conventional development models that has separated the three institutional spheres and has consistently left out universities / academic institutions from development strategies and policies. In the triple helix the focus is in bringing these three complementary but distinct spheres to work in tandem and can be seen as reflecting an model of science and innovation policy (Etzkowitz,2006) Conversely, the model can also be used to apply advanced science and technology in biotechnology and information technology to development problems in least developed countries (Saad and Zawdie 2005) The potential for future economic development is now being increasingly seen as lying not just with industry and government but within universities or institutes of higher learning, not just because of their research potential that may be underutilized but also, because these institutes of higher learning / universities have students who are a seen as sources of new ideas. Students may also be trained and encouraged to be entrepreneurs and be inspired to take up new roles as firm founders. Malaysia started the process of transforming its predominantly production based economy into a knowledge based one in the mid 90’s – while initially the focus was

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more on the ICT sector (with large government policy driven projects like the Multimedia Super Corridor etc) but there was fledging support for the Biotechnology sector – in the recent past there has been a more pronounced emphasis in policy to develop the Biotechnology sector in Malaysia. In this paper we present two cases of 3- helix type developments in Malaysia – in the Bio-tech industry. The first one is lead by the Malaysian Bio-tech Corporation, a federal level development with policy support. The second one is the Bio Valley project, a cluster oriented development, led by a private company called Pahang BioScience. The paper starts with a description of the initial national interests and the policy including identification of thrust areas for the biotechnology sector in Malaysia. This is followed by presentation of the 3-helix like case of the national Bi-technology project spearheaded by the Malaysian Bio-technology corporation and then followed by an overview of a second case – the Pahang bio-valley project, a state/province level project, led by a private company called Pahang Bio-Science. The paper concludes with a quick summary of these two different efforts.

1.1 Malaysian Bio-Technology Sector – An Overview It was in the 5th Malaysian Plan (1986-1990) that a very strong national interest in biotechnology had stared but the sector was given a lot more recognition and emphasis in the 8th Malaysian Plan (2001-2005). During this plan the Malaysian Government identified biotechnology as one of the core technologies to accelerate the transformation of Malaysia into a knowledge-based economy towards achieving the goals of being an industrialised nation by year 2020. For this purpose, the National Biotechnology Policy (NBP) was launched in 2005 to provide a development framework for the industry. The NBP is under the purview of the National Biotechnology Division (BIOTEK) in the Ministry of Science, Technology and Innovation(MOSTI) and BIOTEK is responsible for steering the national biotechnology agenda through the following programmes:

1. Research & Development 2. Technology Development 3. Promotion of Biotechnology

For the development of R&D capacities in biotechnology , three new National Biotechnology Institutes have been established namely ; Malaysia Agro-Biotechnology Institute (ABI), Institute of Pharmaceutical and Nutraceutical Malaysia (IFNM) and Malaysia Genome Institute (GenoMalaysia) . Technological development programme encompasses the use of natural bio-resources; new knowledge and technologies; new products and processes; joint-research between local and international institutions; and training and development programme for cutting edge technologies. In this respect, BIOTEK manages and facilitates funding for those with the expertise to carry out research on platform technologies; embarks on technology transfer; files patents; sets up good laboratory practice facilities; and form bioinformatics networking. BIOTEK provides the latest information and discoveries of research to create awareness in the industry and among the public. It also increases the level of interaction between foreign and local researchers as well as increases the knowledge on biotechnology and its benefits. Activities carried out include organising and participating in conferences, seminars, expositions, forums and education programmes for rural areas and schools.

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At the initial stage, it s the Government that would take on the role of the main driver for biotechnology development by providing strategic direction, infrastructure development and funding. This was so that it would provide an integrated platform for participation by the scientific, business and funding groups to ensure an eco-system that is capable of sustaining Malaysia’s growth and progress in biotechnology. What is interested to note is that the NBP identified several thrust areas as the way forward in the development of Malaysian Bio-technology Industry which are provided he following table (Table 1)

Table 1. The Nine Thrusts of the National Biotechnology Policy (NBP) of Malaysia

Agricultural Transform and enhance the value creation of the agricultural 1 Biotechnology sector through biotechnology. Capitalise on the country’s biodiversity for commercialising the Healthcare discoveries of health related natural products and bio-generic 2 Biotechnology drugs. Leverage on the country’s strong manufacturing sector to

Industrial Biotechnology increase opportunities for bio-processing and bio- 3 manufacturing. Research & Establish centres of biotechnology excellence, through Development, 4 research and development, as well as technology acquisition. Technology Acquisition Build the nation’s human capital through education, training Human Capital and research activities, with the aim of producing knowledge 5 Development generation capabilities. Provide the right financial support via competitive lab to market funding and incentives to encourage committed participation Financial Infrastructure 6 from academia and the private sector including Government- linked companies. Strengthen the legal and regulatory framework by reviewing Legal & Regulatory ownership of intellectual properties and regulations relating to 7 Framework biotechnology processes and business Build international recognition for Malaysian biotechnology and Strategic Development 8 find a niche in the global biotechnology value chain. Realise the execution of the policy through the establishment of a dedicated and professional Government agency to Government Support & spearhead the development of the biotechnology industry with 9 Commitment the incorporation of Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp).

The NBP was to be implemented over three phases

 Phase I - which was to be from 2006-2010 – the focus would be on capacity building ,  Phase II – which is to start from 2011 to 2015 is called as “Science to Business” and would focus on commercialisation of technologies and finally  Phase III which to start in 2016 and run through to 2020 – termed as the ‘Global Business Phase – where the hopes are that there would be a strong Bio-the

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sector up and running in the country with several companies operation at the global level..

Table 2: Development Goals for the Three Phases of Development of Malaysian Biotech

Table 2 Sourced from the Annual Report (2009-2010) of Malaysian BioTech corporation

The table (2) above provides an idea of the what the government expectations are from the investments its making towards the development of the Biotech sector in Malaysia. As noted in the NBP’s thrusts, the ninth thrust area was to develop an institution to coordinate the development. Under phase I of the National Biotechnology Policy, the government of Malaysia established The BiotechCorp (Malaysian Biotechnology Corporation) as the one -stop centre for biotechnology industry development in the country. In addition, to encourage the development of biotechnology industry, the government provided various fiscal and tax incentives to biotechnology companies which were accorded the “BioNexus” status. In this section on overview of the policy framework for the development of the Malaysian Biotechnology sector is provided. This is seen as essential it provided the backdrop to the Malaysian Bio-tech Corporation (here on called as The Biotech Corp) – which is identified as the key institution for coordinating the industry development – which it does like a Triple helix like approach involving the government (through itself) the Industry and Academia (Universities / Research Institutes). In the following section the 3-Helix type approach is explained – the role of The Biotech Corp as the key government institution is explained along with the role of Industry and universities inherently explained.

2. Case 1: Malaysian Biotech Corporation (National 3-Helix Like Programme)

Malaysian Biotechnology Corporation Sdn. Bhd.(hereby referred to as the Biotech Corp) is an agency under the purview of Ministry of Science, Technology and

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Innovation and is wholly-owned by the Ministry of Finance Incorporated. Biotech Corp is governed by the Biotechnology Implementation Council and advised by the Biotechnology International Advisory Panel. When it was formed it was chaired by the then Prime Minister of Abdullah Badawi. The objective of the establishment of Biotech Corp amongst others is to identify value propositions in both R&D and commerce and support these ventures via financial assistance and developmental services. Biotech Corp’s key mandates are as follows:

 Act as a one-stop-centre  Nurture and accelerate growth of Malaysian biotechnology companies  Actively promote foreign direct investments in biotechnology  Create a conducive environment for biotechnology

The overall approach that the Malaysian government through the Biotech Corp, is taking involves developing a network or “nexus” between industry and academic/research institutors and thus as Government, Universities and Industry are involved – we consider this as a 3-helix type approach and attempt to explain this as such.

2.1 Malaysian Bio-tech Corporation (Biotech Corp) – a 3-Helix Type Development Programme The programme for biotechnology industry development being managed by the Biotech Corp can be seen as a 3-helix programme – but instead of the universities being at helm – in this case it’s the government through the Biotech Corp that leads the development and the interactions. Sectoral Focus for Development of Industry - The three sectors identified for development by the government of Malaysia, are agricultural, healthcare and industrial biotechnology sectors. And biotechnology is seen as an enabling tool for the development of these three sectors with the view of impacting Malaysia’s economy by revolutionising the agriculture, healthcare and industrial sectors. The rationale for these three sectors being chosen is that they are based on the strength of the country in these sectors. One strength that these sectors, particularly agriculture and health care have is Malaysia’s unique biodiversity and abundant natural resources. Hence agricultural biotechnology, also known as “Green Biotechnology”, is one sector as it is hoped to provide the potential for greater productivity as well as environment-friendly solutions and sustainable agricultural development. Healthcare biotechnology, widely known as “Red Biotechnology” and refers to the interaction between biology and technology for the improvement of medical processes in healthcare. While benefitting the society in general – there is also a focus at the national level on health tourism which benefits and can benefit this sector. The third wave is industrial biotechnology, which is commonly referred to as “White Biotechnology”. This is the usage of life science technologies to support industrial processes and to improve manufacturing of industrial products while reducing the adverse impact of such processes on the environment. Malaysia has large petroleum and petroleum related sector and there are mutually beneficial outcomes expected focussing on this sector.

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Overall the Biotech Corp can be considered to be at the helm of this 3-Helix with a several roles to play starting with industry development programmes as a whole at the macro level and at the 3-helix level it has a very crucial role of being an innovation intermediary or innovation broker – as it is involved in developing and mediating relationships between the industry players and universities. The key role played by the Biotech Corp is discussed in the following passages. At the outset the Biotech Corp guided by NBP – has a major role to play in developing the industry and as mentioned before in the first phase the focus is on capacity building. For this specific sectors have been identified to be focussed on. The figure (1) below provide a diagrammatic representation of the of the three key players – the Government represented by the Biotech Corp, Industry and Universities.

Universities / Institutes of Higher Learning

Malaysian Bio-tech Corporation

Industry

Fig.1: A 3-Helix type Linkages by the Malaysian Biotech Corporation

2.1 The BioNexus Programme In addition the in order to encourage businesses to invest in and participate in the industry the BioNexus programme was created – the BioNexus status is a designation granted to qualifying biotechnology companies, making them eligible for several privileges like tax benefits, access to grants and other support from the BiotechCorp – which are contained within the BioNexus Bill of Guarantees (see Appendix A for details). The Biotech Corp is the administrator of this programme which involves activites from evaluating eligibility of firms for the Bio-Nexus status, administering of the grants/ funds to be provided to the eligible companies and also helping in / advising firms to access to other finance, providing the different support services (including matchmaking services, information services, development or writing of business plans, etc) and to monitoring the performance of the firms that have Bio-Nexus status.

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2.2 Universities in the 3-Helix type development with Biotech Corp The first role Biotech Corp has is in identification of R&D capabilities and facilities (specialised research laboratories etc and even scientists) and / or intellectual property (patents, laboratory outputs) available in various publicly funded business organisations, universities, institutes of higher learning, incubators etc – particularly those related to the identified sectors identified for development within the country.

Universiti es

Institutes Malaysian of Higher Bio-tech Industry Learning. Corporatio n

Governmen t Business Organisatio ns

Fig 2. Role of Biotech Corp as a Innovation Intermediary between University and Industry

As can be seen in the above Figure (2) – the Biotech Corp is like an innovation intermediary or even a broker – with aims to assist scientists in universities to take their outputs to market by linking them with the appropriate firms in the industry that can commercialise the scientists/ universities IP or link universities / other such institutes which can provide the needed solutions to problems faced by certain companies. In addition Biotech Corp. assist industry to access specialised facilities available at the universities / institutes of higher learning. This role played by the Biotech Corp is now formally called the Triple Helix programme with a formal portal being launched to provide information and enhance the partnerships between government institutions (including universities and business organisations with R&D), private industry. These linkages are further assisted by the BioNexus Partner (BNP) Programme (particularly for Life Sciences) and also their Commercialisation Assistance Programme. In addition to facilitating R&D and commercialisation, through the BNP programme, the Biotech Corp even assists laboratories and units within the partnering university or government linked business organizations in the maintenance of their facilities and equipment.

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2.3 Other Roles of BioTech Corp. in Development of Biotechnology Industry in Malaysia In addition to the crucial role in-between the universities and industry, it has other roles such the role a one stop shop for the industry for all the providing and administering of the financial and non-financial assistance given to the BioNexus firms, etc. and in information dissemination – to industry and government and also to society – somewhat depicted in figure 3.

One Stop Shop The Biotech Corp is a one-stop-centre for the biotechnology and life sciences industry in Malaysia, providing support, facilitation and advisory / developmental services for biotechnology companies in Malaysia. In addition to the funds and grants that it administers – the Biotech Corp helps firms in the industry to access funds by linking them to other sources like Venture Capitalists and other financial organisations. Developmental assistance include help with intellectual property (IP) – be in training related to IP or assistance to develop IP, in negotiations for IP (licences etc). The Corporation also assists industry and university players by doing international promotions and marketing with some of its employees located overseas or by participating in biotech trade related events, exhibitions etc

Other Sources Malaysian of Universiti F nding es Malaysian Informati Bio-tech on – Corporatio about n Technolo

Industry Internation al Marketing Information Dissemination to Society

Fig. 3 – Diagram depicting some additional roles played by BioTech Corp

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Science Communication The Biotech Corp also provides awareness on impact of biotechnology in daily lives or people through its various communications (be it press or public events) and alo education on Biotechnology and success stories from industry players. The education programmes include the impact of Biotechnology on health and well-being.

Annual Conference The Biotech Corp. organised “BioMalaysia” a Conference held annually in Kuala Lumpur. The main aim is to identify or Spot future trends and developments for the corporation itself and also to help the local industry and universities in this matter. Several leading industry players and academic researchers are invited to present papers and share knowledge about the science and technology developments and also business and legal aspects of the business. In addition a trade exhibition is held alongside the conference for partnership development be they firm to firm or firms and universities – with Biotech Corp playing a mediating role. The Annual Conference, while helping in communication of the industry related developments – also becomes a forum for business development

Development of Human Resources / Entrepreneurs There is an Entrepreneur programme run by the Biotech Corp to provide biotechnology entrepreneurs (bio-entrepreneurs) with the necessary skill sets and knowledge to commence, seek funding and manage new biotechnology ventures- the programme include help with new venture creation, one on one mentoring and a International Conference and Dialogues Programme to provide training, inspiration and networking opportunities to aspiring bioentrepreneurs.

The Biotech Corp also provides programmes to develop Biotechnology Entrepreneurs like the Biotechnology Entrepreneurship Special Training (BeST) Programme a 6 month intensive programme for graduates from all disciplines who want to enter this industry. Or the IP Research & Management programmes to educate players, financiers, researchers, government officials and IP practitioners on intellectual property management.

3. Some Issues that arise in the 3-Helix Relationships

Linkages and collaborations between three players like the government, industry and universities – with their varying objectives and personalities are bound to have some issues. Some of the issue are summarised below. One of the problems mentioned (in interviews with people in participating firms and universities) is due to the mismatch of Key Performance Index (KPIs) of Academia/Research Institutes and Industry – the mismatch occurs due to dimensions 1. of time – where the timelines of the industry and research institutions are different,

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2. scope of projects (while one group is concept or theory based versus mode 2 – application based) and 3. outcome related - research institutes more interested in publications versus industry interest in bringing out applications etc.

Also another interesting issue that hindered smooth partnerships between university / research institutes and industry was the different expectations of payments in terms of royalties etc. The industry players claiming that too much were being expected in monetary terms by the university / research institutes and particularly by some scientists / professors – while the industry was being accused of trying to exploit.

4. Some Outcomes after the National 3-Helix Type Biotech Development Project.

The table (3) indicates increase in numbers of companies and also revenues and hence increase in contribution to the economy and society as a whole. Table 3: Development in the Three thrust areas

At the university level – the BNP or BioNexus partner programme has helped to open up some of the laboratories of selected Research institutes and Universities to the industry (private sector) and is supposed to have increased the utilisation rates of these labs (more than 80% utilisation) - There is now effort to increase demand for such facilities and increase utilisation (of publicly funded facilities) while helping industry to access expensive research and testing facilities. Despite some of the issues in developing collaborations or partnerships, overall, since the launch of the NBP in 2005, the Malaysian biotechnology industry has recorded a total investment of USD 1.3 billion (RM 4.5 billion) by 2009. Out of this investment, 57.8% was funded by the Government while the remainder was funded by the private sector. The contribution of the biotechnology industry towards the Gross Domestic Product (GDP) in 2009 was estimated at 2%. In terms of total employment, it is estimated that 54,000 people were employed in the life-science and biotechnology- related industry in 2009.

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5. Phase 2 – Development of the BioExcel Cluster - attracting larger players and Commercialisation Focus

With the first phase nearly coming to an end and with a threshold of firms in the sector, the planning for the II (2011 – 2015)phase of the development programme has already started by Biotech corp. It has been noted that this phase the focus is on accelerating commercialisation (Science to Business) and a key initiative of BiotechCorp is the development of Bio-Xcell Cluster – as part of the Iskander City Development. This is a 70 Acre cluster being developed in proximity to Singapore and Johor Bahrau – with easy access to ports and airports – the aim is to attract larger global players in different parts of the value chain based on resources available in Malaysia (eg. Bio mass from palm etc ) by providing good infrastructure (an eco-system for R&D, manufacturing and commercialisation activities) in addition to incentives provided for the industry though BioNExus and other such government programmes. The Biotech Corp has developed a Commercialisation Assistance Programme (CAP), jointly with Larta Institute of the United States to help advance the market readiness and potential of Malaysian biotechnology entrepreneurs in the fields of agriculture, healthcare and industrial biotechnology. (Larta Institute is an independent, private, non-profit corporation that provides professional services in designing and managing commercialisation programmes for public and private companies and universities. This programme – the cluster development and the partnership for Commercialisation has just been started and so the results and ensuing issues are yet to be seen. Overall the attempts to bring Universities, Industry together by the government in seems to yielding some success at the beginning states of Biotech industry In the previous sections the case of the 3-helix like development lead by Malaysian Biotech Corporation has been presented. In the next section an overview of an emerging e-helix like project that is in the emerging stages of development is overviewed.

6. Case 2: Triple Helix type programme by Pahang BioScience

Unlike the 3-Helix programmes driven by a university or the government or government body as in the case of the Malaysian Biotech Corp - the Pahang Bio Valley project can be seen as a 3-Helix type project driven by a private sector company – in this cases it’s the Pahang Bio Science corporation. Pahang Bioscience Sdn Bhd, a subsidiary of Pahang Technology Resources Sdn Bhd - - an agency owned partly by the state government of Pahang, Malaysia and with some financing from commercial banks. Pahang Bioscience has stared the project with a RM300 million stem cell research centre in Lancang, in the Pahang state of Malaysia. The facility will include an animal research laboratory, stem cell culture facilities, medical treatment areas, and a closed-colony rabbit farm. The figure (4) below depicts the three players involved in this project in a 3-Helix like diagram and the roles of the different players are overviewed in the Figure (5)

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Universities / Institutes of Higher Learning

Pahang Bio- Science Corporation

Government

Fig.4 The 3-Helix of Framework led by Pahang Bio Science

Role of the Industry Player – Pahang Bio Science, the industry player is leading the project with the development of the facility. The role of the company includes development of the idea and project proposal and acceptance, raising of funds from different sources, identification of technology sources / partners and developing the collaborations. Role of Universities and Other Research Institutes: The project even at the beginning stages requires science expertise in different parts of the stem cell development The project draws on facilities and knowledge of scientists from universities to support the needs in different parts of the value chain of the project. Role of Government: In addition to providing the initial funding several interesting roles for the government in this 3-helix emerged in the discussions with the respondents. The state also helps in providing resources – be it land or water – both being crucial for the development of the stem cell facility and later on for the full project the government has also earmarked part The state government – by virtue of being part owner – allowed the firm to use the stages name ‘Pahang’ – which has given ‘legitimacy’ to this new firm and this in turn has allowed for ease in negotiations with either universities or foreign companies and also helped in raising funds from commercial financial intuitions etc. What is interesting to note is that for knowledge in allied areas of the project including related to environmental practices, practices related to traditional farming etc are being harnessed from not only scientists but from local communities be it the farmers or other village ‘elders’ who are considered repository of traditional knowledge.

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Malaysian Supplier Universities/ Scientist Industry/ Community Rabbit Farm Local Community Pahang – Farmers, etc Bio Science/ Project in Charge Mediator, Funds Raiser, etc

State Govt Funding, Market/ Legitimacy, health Mediate with Resorts Information Other Agencies, Dissemination Provide resources to Society

Fig. 5 – Diagram depicting some additional roles of different players in the Pahang BioValley

This is a project that can be described as work-in-progress - but is of interested because of it being led by a private company – that is played the role of the innovation broker between universities / academia, industry and government. At phase they this project also intends to develop a cluster based development – with a corporate social responsibility / sustainability theme involving not just the 3-helix players but also involving the society as a supplier and consumer of innovation and with a great emphasis of science communication to community.

7. Conclusions

Unlike the earlier efforts (eg like the MSC project which was developed from scratch) the National Biotechnology industry development project and also the project led by Pahang Bio Science are based on some strengths and resources that existed. There were universities with education programmes and reach being conducted in allied disciplines and also the country having an agricultural sector and rich biodiversity have been factors that could be leveraged through a 3-helix like programme with the Biotech Corp. or Phang Bio Science at the helm. Overall both the 3-helix like development industry projects show some similarities – the main similarity being both

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the projects are developed based on the strengths of the country / regions and involved partnerships or collaborations of government, industry and universities. The key difference being in the entity that has taken the lead in running the project- the national level project is run by a government agency while the project at the state/province level is led by a private company (albeit being partially owned it’s a registered private limited company). Since the phase II of the national project is just starting as is the project being led by Pahang Bio Science – it would be interesting to develop these as longitudinal case studies of 3-helix relationships and their outcomes.

REFERENCES Etzkowitz, H. (2006) “The new visible hand: an assisted linear model of science and innovation policy.” Science and Public Policy 33 (5):310-320 Saad, M. and Zawdie, G. (2005) “From Technology Transfer to the Emergence of a Triple Helix Culture: The Experience of Algeria in Innovation and Technological Capability Development.” Technology Analysis & Strategic Management 17 (1):89–103. Malaysian Biotechnology Country Report 2009 / 2010 BIOMALAYSIA – What & How – PM Explains by Koh Lay Chin (April 2005) in The New Straits Times, Malaysia. The New Straits Times, Malaysia, by Koh Lay Chin April 2005

WEBSITE SOURCES OF DATA/INFORMATION 1. Information about the National Biotechnology Policy Framework was gleaned from the website of the National Biotechnology Division (Biotek) of the Ministry of Science, Technology and Innovation - http://www.biotek.gov.my/index.php?option=com_content&view=article&id=46&Itemid=53 (accessed on October 13th 2010) 2.Information regarding incentives and grants for Biotechnology industry was gathered from the website of the Malaysian Biotechnology Information Centre (MABIC) http://www.bic.org.my/?action=localscenario&do=funding (accessed on October 2nd 2010) 3. Information about The Biotech Corp (Malaysian Biotechnology Corporation) is gathered from the organisation’s website 4. Excerpts from Speech of Datuk Maximus. Minsiter of Science Technology and Innovation, Government of Malaysia at Malaysian Biotechnology Conference 2009. http://www.mosti.gov.my/mosti/images/pdf/minister/speech%20maximus003.pdf 5. http://www.iskandarmalaysia.com.my/news/101013/biotechnology-industry-ready-to-enter- second-phase (accessed on 16th October 2010) Primary data was gathered from Interviews with executives in Firms in the Malaysian Biotech Sector, Scientists/ Academics and executives from Pahang Bio Science.

Appendix A - Incentives for Firms with BioNexus Status Source: http://www.mida.gov.my/en_v2/index.php?page=biotechnology-industry

A company undertaking biotechnology activity and has been approved with BioNexus Status by the Malaysian Biotechnology Corporation Sdn. Bhd. is eligible for the following incentives:

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An exemption from tax on 100% statutory income: • for a period of ten (10) consecutive years of assessment from the first year the company derived statutory income from the new business; or

• for a period of five (5) consecutive years of assessment from the first year the company derived statutory income from the existing business and expansion project; . An exemption of 100% statutory income derived from a new business or an expansion project that is equivalent to an allowance of 100% of qualifying capital expenditure incurred for a period of five (5) years. A BioNexus Status company is entitled to a concessionary tax rate of 20% on statutory income from qualifying activities for ten (10) years upon the expiry of the tax exemption period Tax exemption on dividends distributed by a BioNexus status company; Exemption of import duty and sales tax on raw materials/components and machinery and equipment; Double deduction on expenditure incurred for R&D; and Double deduction on expenditure incurred for the promotion of exports; Buildings used solely for the purpose of biotechnology activities will be eligible for Industrial Building Allowance to be claimed over a period of ten years. 4.2 Incentives for Investment in a BioNexus Status Company (a)Investment by a Company or Individual in a BioNexus Status Company A company or an individual (that carry on business) investing in a BioNexus status company is eligible for a tax deduction equivalent to the total investment made in seed capital and early stage financing. (b)Tax Incentives for Mergers and Acquisitions with a Biotechnology Company A BioNexus status company undertaking merger and acquisition with a biotechnology company is eligible for exemption of stamp duty and real property gain tax within a period of five years until 31 December 2011. Applications should be submitted to the Malaysian Biotechnology Corporation (BiotechCorp).

4.3 Biotechnology Funding for Bionexus Status Companies BiotechCorp provides funding to BioNexus status companies under its Biotechnology Commercialisation Grant (BCG). Three components of the Commercialisation Grant are as follows: i. Seed Fund Up to RM2.5 million per company Purpose: To fund seed or start-up costs in setting up biotech companies and to assist towards the development and commercialisation of biotechnology projects and R&D findings of priority and core areas. ii. Research & Development Matching Fund Maximum of RM1.0 million per project Purpose: To provide matching fund for R&D projects which can develop new or improved products and/or processes and/or technologies and lead to further development and commercialisation within the Malaysia's Biotechnology Focus Areas. iii. International Business Development Matching Fund Maximum of RM1.25 million per project Purpose: To promote the expansion of BioNexus Status Companies into the global market.

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SSEESSSSIIOONN 44

Country Presentations

4-1. Algeria 4-2. Brazil 4-3. Indonesia (1,2) 4-4. Malaysia 4-5. Mongolia 4-6. Nepal 4-7. Nigeria (1,2) 4-8. Palestein 4-9. Syechelles 4-10. Sri Lanka 4-11. Taiwan 4-12. Tanzania 4-13. Thailand

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Lecture 4-1. Algeria

Hassi R’Mel Solar Technopole: innovation and renewable energy

A. Khellaf

Centre de Développement des Energies Renouvelables BP 62, Route de l’Observatoire 16340 Bouzareah Algiers ALGERIA [email protected]

ABSTRACT Renewable energy, and more particularly solar energy, is the most important energy resources in Algeria. Priority has been given to the development of these resources. To this end, the Hassi R’Mel technopole is established as a tool to support the governmental strategy in renewable energy technology development. The main activities are focused on thermal solar energy, green growth and arid land research. Hassi R’Mel technopole acts as a hub of innovation and knowledge creation. It fosters exchange between high-tech companies and research and higher education communities. In the present work, we first review the renewable potential energy in Algeria. We then go over the legal framework and the ongoing activities in the field. Finally we present the Hassi R’mel technopole.

1. INTRODUCTION

Algeria is located in North-West Africa between the 18° and 38° of North latitude and between meridians 9° of West longitude and 12° of East longitude. It covers an area in excess of 2, 38 million square kilometres. Its coast line extends over 1200 km and the aerial space stretches out southward on 1800 km as far as the tropic of cancer. A semi arid land, Algeria has only 3 % of the land arable. Most of the country (87 %) is covered by the weakly populated unproductive arid land of the Sahara desert with hard to access and isolated dwellings. Algeria enjoys though qualitatively and quantitatively very important renewable, particularly solar, energy resources. The exploitation of these resources opens new opportunities. First the development of these energies will strengthen the actions undertaken for regional balance and improvement of life conditions particularly in the rural and isolated area of the South (electrification, telecommunication, etc.). This will undoubtedly stop the rural exodus, favour the creation of local job and stimulate the local economical development. Second this permits the increase and diversification of the national energy mix with all the implications that could have on the export opportunities and on the national revenue. Finally, the development of this energy addresses the world wide concern of the negative impacts on the environment using

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the conventional energy sources; and this could also stop or even reverse desertification and promote arid land development. In light of the high economical and social stakes that these energy resources present, a national strategy for the promotion and development of renewable energy applications was formulated. Algeria has given a strategic and a priority character to renewable energy sources through a legislative framework set up to this end. Scientific Research and Technological Development Law N° 98/11 of august 22, 1998 consecrated the Research National Program on Renewable Energy as a national priority program. The law on energy N° 99/09 of July 28, 1999 and the law No 04/09 of august 14 2004 on the renewable energy promotion in the sustainable development framework consecrated the renewable energy promotion and its use at all levels. This law clearly indicates the authorities’ determination to vitalise the energy policy and to draw a legal frame work for the energy demand orientation and management. The energy policy hinges around the preoccupations by the rational use of energy, the promotion of renewable energy and the protection of the environment.

2. RENEWABLE ENERGY POTENTIAL

Solar Potential: Solar energy is the most abundant renewable energy in Algeria Use of the solar energy, even at the rudimentary level, such as food drying, is an ancestral tradition in Algeria. However, modern and intensive use of this energy requires the suitable technology development for its collect, its conversion and its storage. As shown in Table 1, the insolation duration is very important. The mean yearly sunshine duration vary between 2650 hours in the north and 3500 hours in the south.

Figure1: Daily global irradiation on inclined plane

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Furthermore, as shown in Figure 1 and Table 1, one has a large solar energy power. If all this energy is collected, it will represent a great energy resource and an inestimable income. The daily solar energy potential is important. It varies from an average minimum of 4.66 kWh/m2 in the north to an average value of 7.26 kWh/ m2 in the south. This means that the potential on 80 % of the territory is of the order of 2650 kWh/ m2. The daily total available energy is of the order of 16.56 1015 Wh.

Table 1: Regional distribution of the sunshine duration and of the solar energy in Algeria Region North High Sahara plateaux Area (km2) 95271 238 174 2 048 296 Mean daily sunshine 7.26 8.22 9.59 duration (hours) Daily irradiation 4.66 5.21 7.26 (kWh/m2 ) Potential of daily 443.96 1240.89 14 870.65 energy (1012 Wh)

Wind Potential : with the fast development of its technology, wind energy has attracted worldwide a lot of attention these last years. For Algeria, wind energy is another very promising renewable energy source. There exists an important wind potential in Algeria (Figure 2) The regions of Tiaret, Maghress, and Biskra in the north and of Hassi R’Mel and Adrar in the south-western Sahara are the windiest corridors in Algeria. Wind speeds are high enough for a viable exploitation of the wind energy The Big south, particularly the Adrar region, is practically inhabited and encloses an important underground water cloth. Adding to that the fact that the wind energy potential is there one of the most important in the country, there is then no doubt that this region is the best choice for wind energy exploitation.

Figure 2: Average annual wind speed

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Geothermal Potential : Geothermal energy is yet another promising renewable energy source for the country The resources, mainly of hydrothermal nature, are estimated at 460 GWh/year More than two hundred hot springs have been found in the Northern part of the country. The water of about a third of these hot springs has temperature above 45 °C, with a temperature of 98 °C at Hammam Meskhoutine (Guelma). As shown in Figure 3, most of these sources are located in the north east. For the south, studies on the subject are still going on. Preliminary results have shown an important temperature gradient in the Tindouf region, in the extreme west of the Sahara. It is though worth mentioning the existence of sources with higher temperature: about 120 °C at Biskra and Aïn Oulma. The lower Sahara Sedimentary basin encloses 3104 Km3 of underground water with temperature between 50 °C and 60 °C. Besides bathing and balneotherapy, the main application resides so far in the heating of green houses.

Figure 3: Geothermal resources in norther Algeria

Hydraulic Potential The renewable resources are estimated to be of the order of 25 billion m3/year, of which about 2/3 are surface resources. Reduced number of rainy days, strong evaporation and quick evacuation to the sea reduce the availability of the useful quantity. The conditions for hydroelectric exploitation are not always favourable, and of the more than 50 exploited sites only 13 are used for hydroelectric power.

Biomass: Biomass potential evaluation is still underway. However rough estimates give a value of 2x106 m3/year of forest and agriculture products and of industrial and domestic wastes being processed.

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3. STRATEGY AND INSTITUTIONAL STRUCTURE

The strategy for developing renewable energy has been following successive phases:  The first phase has as objective to develop the know-how and the skill necessary to take in charge the renewable strategic goal.  The second relies on research and development program that covers the whole spectrum of the activities required for the promotion of renewable energy.  The third phase marks the coming to maturity and the true large scale exploitation on a commercial and industrial level. A frame work favorable for the development of renewable energy is set by creating the Institute for Solar Energy. This institute evolved to give the Renewable Energy Development Center (CDER) Other institutions have also been established to constitute with CDER a network of local poles for the development of renewable energy. These institutions are: - Silicon Technology Development Unit (UDTS, Algiers) - Solar Equipment Development Unit (UDES, Bousmail) - Research on Renewable Energy in Saharan Environment Unit (URER, Adrar) - Research on Applied Renewable Energy (URAER, Ghardaia) This network has been entrusted with the task of co-ordinating efforts with national, regional and international entities. In parallel, research laboratories have been set up in different universities (Constantine, Batna, Setif, Blida, Oran, Tlemcen, etc.). These laboratories conduct basic research in different fields of renewable energy. More over other entities, such as the Renewable Energy Directory at the Energy and Mines Ministry and the National Agency for the Promotion and Rational Utilization of Energy (APRUE) are active in the assessment and development of policy aspects of renewable energy penetration and deployment. To generalize the use of renewable energy, legislative measures have been undertaken to encourage the investment in this field. As a consequence a number of small and medium size enterprises and businesses ( MIE ALGERIE, TECHNOSOLAR, SDEP, CENTRAL-TELECOM etc.) are already activating particularly in the fields of solar and wind energy. Large companies have also been attracted. The national oil company (SONATRTACH) and the electrical company (SONELGAZ) has set up a joint venture (NEAL) for the economical exploitation of renewable energy. SONELGAZ is also getting into the production of photovoltaic panels. CEVITAL, a major private company is tempted by the renewable energy venture; it is getting into photovoltaic panels and mirror production. CEVITAL has also joined the DESERTEC consortium.

4. ACTIVITIES AND ACCOMPLISHMENTS

In order to implement the renewable energy strategy, various projects has been proposed and carried out. Besides the action on education, dissemination and capacity building at different levels, efforts are made in research and development projects, and in scale demonstration and field testing projects. Commercial projects are also underway at the national, bilateral and regional level. The basic research and development projects dealt basically with the topics related to:  Renewable Energy Potential Assessment

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 Small and large scale wind system for water pumping and electricity generation  PV cells technology and PV systems for water pump and for remote sites electrification  Solar thermal system for industrial process heat (desalination, heat storage, air collectors, etc)  Geothermal greenhouse heating  Solar hydrogen system  Biomass system for rural and urban waste treatment  Solar architecture. In the scale demonstration and fields testing projects, several systems have been designed and realized or acquired, then tested under different conditions at different sites. In the geothermal field, greenhouses heating by geothermal energy have been carried out successfully at different sites (Guelma, Ourgla, Touggourt). In the field of thermal solar energy, applications for plant and fruit drying (apricots, grapes, etc.), for greenhouses heating and cold production were demonstrated and field tested. In the fields of photovoltaic, different applications have been addressed such as desalination, distillation, telecommunication, tracks location light, water pumping, clinical refrigeration, remote site electrification, etc). In the fields of wind energy, a license for the production of multiblade wind systems has been acquired. Testing with mixed results has been carried out through the national territory. At the commercial level, many projects have been carried out, are underway or under consideration. Among these projects:  The programme of solar electrification. This program concerned the electrification of the remote regions in the South that are not connected to the grid of the national electrical and gas company (SONELGAZ). The aim is to boost the use of renewable energy, particularly solar photovoltaic. The program has been implemented in four Wilayat (Counties) with more than 20 villages (or 900 houses) being connected. As a result of the success of this operation, the program is going to be extended to other regions and more than 40 remote villages ( or 7500 homes) have been retained for this solar electrification program. Electrification of 500 homes per year is underway.  Program Special “Big South”: this demonstration program concerns more particularly the “deep” south regions (Adrar, Bechar, Tindouf, El Oued, Illizi and Tamanrasset). It dealt mainly with water (Pumping, desalination), cold (clinical refrigeration), home electrification and telecommunication.  Solar thermal: the company NEAL planned to build four hybrid solar/gas CSP (ISCC) installation of total capacity of about 1350 MW. The first installation of 120 MW total capacity with 30 MW solar is located in Hassi R’Mel. It is in the final phase of realisation. The other three, each with a total capacity of 400 MW, with 75 MW solar, will enter the production phase by the end of 2015.  Wind energy: Four wind farms projects, of 36 MW total capacity, are under consideration. The first one, of 6 MW capacity will be set in Tindouf. The other three, of 10 MW capacity each, are set in Tindouf, Timimoun and Bechar. They should be operational by 2015.  Photovoltaic panels’ production: SONELGAZ and CEVITAL have planned separately to produce photovoltaic panels. The production is planned to start within the next two years.

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 Solar Tower: this project is underway. The solar tower, of a 7 MW, will be built in Bourkika (Tipaza), west of Algiers. This facility will be used for on one hand education and capacity building and on the other hand for research and development and testing innovative technologies.  DESERTEC: of regional scale, this project aims at exporting green electricity to Europe. CEVITAL is a stakeholder in DESERTEC Industrial initiative.

5. Hassi R’Mel technopole

It is only through collaboration, technology watch and innovation that an impetus can be given to the development of technical and policy aspects of renewable energy exploitation. In this line, the Hassi R’Mel solar technopole has been established. This technopole serves as a hub for information dissemination, technological development and technology transfer and implementation. It is open to actors from universities and technological institutes, manufacturers, decision makers, investors and end-users. For the Hassi R’mel Solar technopole, interest is on thermal solar power, more particularly on steam power turbines, gas turbine ( with air solar preheating), concentrator solar power, mirrors and frame for solar fields and long distance power transportation. The aim is to constitute the industrial and technological basis so as to successfully carry out the strategic objective assigned in clean energy production. This aim could be reached through:  Education and capacity building  Research and development  Testing and prototyping  Implementing and joint venture. The activities are carried so as to catalyze synergy between education, research and business communities. Networking is an important factor to foster interaction and exchange between the different actors so as to open opportunities for innovative business ideas. The technopole offer support for new entrepreunarial ventures to get them through the start up and early development stage. Location: The technopole is located in central Algeria about 60 km north of Ghardaia. It has a key advantage as it is located not too far from two airports: Hassi R’Mel airport and the international airport of Ghardaia. It is not far from urban centers with their strong infrastructures and facilities. It is also situated in northern Sahara that is characterized by a healthy solar potential. Partners: As is the case in any technopoles, the Hassi R’Mel technopole works with different actors coming from academia, research centers, venture capita, financial institutions and government and nongovernment organizations. These partners could be at the local, national or international level. At the international level, The German space agency (DLR), the Spanish solar research center (CIEMAT) and the United Arab Emirate center MASDAR has expressed strong interest in the technopole Academic partners: The closest academic partners are those of the universities of Laghouat, Ghardaia, Ouargla. However academic cooperation extends to other universities as far Algiers or Adrar in Algeria. International academic partners are also considered. Academic partners are necessary not only for dissemination of knowledge

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and capacity building of the human resources but also for innovative ideas development and their transformation into business value. Industrial partner: It is NEAL, a solar development company, who is the main stakeholder. Its concern in finding the skilled manpower and the know-how for implementing its numerous solar thermal power projects has lead to the need to establish the solar technopole. The solar technopole is located next to NEAL’s solar/gas power installation and it is meant to provide innovative solution for its technology. Other national, such as SONATRACH and SONELGAZ, and international companies have followed suit. Memorandums of understanding for joint ventures are under consideration. Research partners: With its long experience in solar energy research and development, the Renewable Energy Development Center (CDER-Algiers) and the Applied Research in Renewable Energy Unit (URAER-Ghardaia) have been from the inception the privilege partners. Locate near the solar technopole, URAER is considered as the main research unit player. Other development research centers and research laboratories have expressed interest. The Spanish research centre CIEMAT is already involved in the technopole activities.

6. CONCLUSION

This brief overview depicts the Algerian real preoccupation and their goals in the renewable energy field. A prominent place is reserved to solar energy in the National Policy Directory Program. This includes an ambitious plan for the development of large scale solar thermal power facilities. This is based on several favourable factors such as the highly abundant solar insulation, the wide inhabited desert that is accessible to electric grid and gas pipe lines networks. The implementation of this plan requires a technopole. This technopole is not only inevitable but surely high desired for strategic reasons. The technopole will act as an innovation hub harboring research and development laboratories and institution of higher education and supporting the creation of small and medium enterprises dealing with solar thermal power development.

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Lecture 4-2. Brazil

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Lecture 4-3. Indonesia (1,2)

Part 1.

Mr. Jangkung Raharjo, Director of Bandung Techno Park, Tekom Institute of Technology, located in Telkom Education Area, Jl. Telekomunikasi

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Part 2.

Wisnu Sardjono Director of Regional Research, S&T Program, Ministry of Research and Technology (RISTEK), Email. [email protected]

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Lecture 4-4. Malaysia

The Role of Government, Academia and Business in Promoting Science, Technology and Innovation in Malaysia

Sidney Yee, Li Sze Lim, Izhar Hifnei Ismail

Sanggar SAINS Sdn Bhd (sains@usm) 10 Persiaran Bukit Jambul, 11900 Bayan Lepas, Penang, Malaysia. e-mail: [email protected]

Economic historians suggest that the main explanation for the success of today’s developed countries lies in their history of innovation. There are two fundamentals that innovation economics is based on, i.e. the aim of a country’s economic policy should be to encourage higher productivity and greater innovation, and that smart public- private partnerships are a way to spur these aims. Therefore, governments all over the world have put in a lot of resources to promote science, technology and innovation for if they are translated well into a product or service, it means solving a problem for the nation and humanity, generating income and thus helping to spur the economy.

The role of government In its bid to achieve the status of a developed nation by 2020, Malaysia, like many other developing and developed nations, has put in place various measures to create the right framework conditions and suitable environments for the development of science, technology and innovation. In 2004, the Cabinet of Malaysia revamped the Ministry of Science, Technology and Environment into the Ministry of Science, Technology and Innovation. This Ministry introduced the National Innovation Model in 2007 and various guiding policy documents to align the different sectors within the country so that they work towards a common vision with clear-cut missions and goals. These documents enable prioritising of research and development activities, identifying niche areas for development and devising national objectives and means of achieving them with careful consideration of all factors involved. The Ministry’s guiding policy documents include the Second National Science and Technology Policy in 2000, the National ICT Roadmap in 2007 and the National Biotechnology Policy in 2005.

With these policy documents, R&D infrastructure, incentives and funds are put in place. The National Biotechnology Policy highlighted two important factors to develop. One was strategic alliances, i.e. alliances between academia and business. The other landmark call was the creation of technology transfer offices within universities. Because of this policy, all universities and research institutions in Malaysia have technology transfer offices. These are the offices which all technologies will converge to once they are ready for commercialisation. And this is the place where public-private partnerships have the highest chance of success if handled carefully.

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Challenges in academia-business collaboration It is commonly known that only a fraction of university technologies ever make it to commercialisation. The reason most technologies fail may not be because of the technology itself, but for various reasons such as a bad business plan, a stroke of bad luck, lack of funding to develop the technology or business further, encountering a patent troll, etc. It is therefore imperative that these innovations which have been developed thus far be handled with a carefully crafted programme, with well-trained staff to maximise their chances of success.

With the development of technology transfer offices, there is even more pressure on academia to collaborate with industry. But there is this discord that has to be harmonised before any successful collaboration can materialise. Therefore, even though technology transfer offices exist in Malaysia, much effort has still to be put in place to make sure that there is healthy interaction among the government, academia and business. The lack of interaction between the factions can be largely attributed to the great cultural divide.

Innovations from academia may sometimes seem to be impractical to the industry as the processes may be too time-consuming, not cost-effective or may mean changing the whole machinery and mechanism of the industry’s existing system, incurring high capital expenditure. Requirements and demands from the industry, on the other hand, may seem to be too trivial or disruptive to a researcher’s experimental and theoretical work.

This may be because the academia and the industry are motivated differently. Innovations developed by academia are usually blue-sky research or are prototype- driven or are carried out to prove that something can actually work. The objective is usually to understand the mechanism of how something works. Because most of these researchers are funded by grants from the government, they are more risk-tolerant, the timelines are not that stringent and can tolerate experiments, trial and errors with unstructured business practices.

On the other hand, the development of products by the industry tends to focus on compliance and predictability, and is commercially-driven with the objective to deliver an outcome within a certain time-frame. Because time means money to the industry, they are risk-averse, driven by deliverables, where only the fittest will survive. Therefore, any venture is usually following industry best practices in the hope that outcomes can be achieved even at the first try.

Interaction among the government, academia and business As separate entities, these three elements have their own role in promoting innovation. The government develops policies to promote innovation, the academia carry out blue- sky research to invent and innovate and the businesses are hoped to be the adopters of these innovations. However, interactions among the three elements sometimes do not happen as smoothly as is hoped.

Henry Etzkowitz (2008) describes interactions among the government, academia and business as the Triple Helix, which is key to increasing innovation in knowledge-based societies. This Triple Helix intersection of relatively independent institutional spheres

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generates hybrid organisations such as technology transfer offices in universities, firms, and government research labs and business and financial support institutions such as angel networks and venture capital for new technology-based firms that are increasingly developing around the world. He stressed the importance of answering these questions to promote innovation:  How can governments, at all levels, encourage citizens to take an active role in promoting innovation and, conversely,  How can citizens so encourage their governments?  How can businesses collaborate with each other and with academia and government to become more innovative?  How do we enhance the role of universities in regional economic and social development?

Sanggar SAINS Innovator programme Sanggar SAINS Sdn Bhd is an example of the hybrid organisation described in the Triple Helix interaction. Located on the island of Penang, Malaysia, which is more fondly known as the Pearl of the Orient, Sanggar SAINS is a company wholly-owned by Universiti Sains Malaysia (USM), an APEX (Accelerated Programme for Excellence) university in Malaysia. USM was awarded the Accelerated Programme for Excellence status in 2008 in a competition for universities in Malaysia, organised by the Ministry of Higher Education of Malaysia. The status was awarded based on each university's state of readiness, transformation plan and preparedness for change. The university that is given the APEX status is one that has the greatest potential among Malaysian universities to be world-class.

Among the mandates of Sanggar SAINS is to bring together innovations in the sciences, technology and even arts for commercialisation, therefore generating income for the university, community and country. Through a well-crafted, unique Innovator programme, Sanggar SAINS has managed to bring together the different elements of the Triple Helix Model, namely the government, academia and business to translate innovations into commercialisable products or services to serve humanity.

The programme starts with i-Biz, which is a business clinic with technology innovators, which in our case are researchers from academia to understand the technology. In this session, analysts will try to understand the value proposition of the innovation, how it fits in the industry value chain, the knowledge, technology, funding, infrastructure and human capital gaps, the market needs and what it needs to take the innovation to the market place. It is also at this stage where the highest attrition occurs for innovations to be commercialised. The matrix of information from the i-Biz sessions dictates that about 50% of the innovations will be deemed inappropriate due to fundamental issues such as: me-too products or too-early stage of development. Business models will then be developed to determine the best way forward for the sifted-through innovations, which may come in the forms of licensing, service, spin-off company, join-venture company or outright sale.

As industry adoption is the foremost important ingredient to a successful commercialisation venture, industry-connect or i-Connect sessions are forged between innovations and the relevant industries. The outcomes of such sessions address the following key questions:

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 WHO - Who are the customers? End-users? Payers?  WHAT are the industry requirements for the innovations to be commercially viable?  WHEN is the industry due for a tangential progression because of external factors such as green issues etc.? (to avoid missing potentially disruptive innovations)  WHERE are the gaps in the existing value chains?  HOW is the innovation scalable - at marginal or incremental costs?

Additional attrition occurs at this stage, when there is a mismatch between the industry requirements and the innovations’ features or perceived potential. The outcomes of these sessions also provide refinement of the business models for the innovations, rendering them industry-driven, rather than research-pushed, innovations.

Funding, or the lack of it, is widely known as the valley of death for innovation commercialisation. Sanggar SAINS’s Innovator programme has devised a myriad of mentoring activities that help raise funds or cross the valley. These activities include identifying, coaching and training of aspiring entrepreneurs for the innovations that are to be spun out as start ups. The innovators or university researchers are also mentored in the process, to equip them with a holistic view on their continuing research, as well as to prepare them for effective pitching to grant funding organisations to commercialise their innovations. Ultimately, the programme aims not only to build the bridge for the innovators and entrepreneurs to cross the valley, but also to provide the skills for them to build the bridge for future valleys to come.

Impact of Sanggar SAINS Innovator programme Creating entrepreneurs Since its inception about a year ago, the programme has reviewed 87 innovations from USM with 31 projects being start-up potential. Three companies have been set-up. These entrepreneurs continue to be nurtured through the programme to sustain continuity with the research community.

Engaging the industry 40 connections with the industry have been carried out to date. One innovation may sometimes be pitched to a few industry partners to see which will be the better match. Out of the 40 connections, there are twelve ongoing collaboration discussions, one in the final stage of negotiation for licensing, and one sale of goods.

Raising funds and investment The Sanggar SAINS Innovator programme team worked with the innovators in acquiring government funds. So far, 8 applications have been submitted with 20% hit- rate (The percentage is expected to be higher as we wait for the decision of the funders). An additional 22 projects have been mentored to be pitched to various grant funding organisations, where 36% have progressed to the next stage of evaluation.

Creating a platform for investors to invest This programme is also a platform for venture capitalists and angel investors to venture into high-risk, high return early stage investments from the university. With this platform

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available, investors know where to look for good innovations which are nurtured and packaged well to ensure a higher chance of success.

Creating a platform for industries to go up the value chain This well-defined programme also creates a platform for small and medium entrepreneurs (SMEs) and even big public-listed companies to approach the university to mine for technologies and innovations to improve their present processes or increase their portfolio of products or services. This is to help the local industries go up the value chain. This may be in the form of transforming a trading company to a company which owns IP, or developing products further before they are sold; therefore increasing the value of the company. The value for the business may also manifest in the form of creating higher value for wastes from the business itself, which generates another income stream for the business.

Figure 1: Sanggar SAINS Innovator programme and its position in the Triple Helix interaction

Conclusion As mentioned earlier, there are many reasons an innovation does not make it to the market place. The main aim of this programme is to nurture and prepare the innovations and entrepreneurs as best as possible for the market, identifying as many barriers and gaps as possible in order to mitigate the shortcomings of these candidates and hence increase their chances of success. Even after going through the Innovator programme, success is not always guaranteed for there are so many factors and forces at play. In cases where the entrepreneur does not succeed, it does help prepare him to be wiser in future attempts at entrepreneurship.

The Sanggar SAINS Innovator programme can be seen as a bridge between the academia and business (Figure 1). It can be installed as part of the university, extending the function of technology transfer offices, as a separate entity linking the university and businesses, or as an extension of industry associations or corporations to help mine for innovations from universities. It could also be an extension of

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government or government-linked agencies to promote more talks and collaboration between the industry and academia, at the same time monitoring its development. Installation of the programme provides an instant linkage to the wealth of knowledge already gathered at Sanggar SAINS and creates a shortcut for any collaboration to materialise.

The Sanggar SAINS Innovator programme is a true platform to encourage the Triple Helix interaction, thereby promoting innovation. With a platform like this, citizens in various capacities can identify a platform for providing input to promote innovation. The inputs from the people can later be channeled back to the government to provide better policies, incentives and environments. Businesses also have the opportunity to collaborate with each other through refining a university technology or finding a solution to address problems faced by many businesses within the same industry; or simply developing more innovative ideas together by working with academia. It enables translation of innovations from academia to business, thus generating income and enhancing the role of universities in regional economic and social development.

References 1. Committee on Accelerating Technology Transition. 2004. Accelerating technology Transition: Bridging the Valley of Death for Materials and Processes in Defense Systems, The National Academics Press. 2. Etzkowitz, Henry and Loet Leydesdorff. Eds.1997. Universities in the Global Knowledge Economy: A triple helix of university-industry-government relations (London: Cassell). 3. Mokyr, J. 2002. Gifts of Athena: Historical Origins of the Knowledge Economy. Princeton, N.J.: Princeton University Press. 4. Rosenberg, N. and Birdzell, L.E. 1986. How the West Grew Rich: The Economic Transformation of the Western World. New York: Basic Books.

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Lecture 4-5. Mongolia

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Lecture 4-6. Nepal

Science and Technology Development in Nepal*

Baburam Ranabhat

Executive Director Industrial enterprise Development Institute (IEDI), Kathmandu, Nepal e-mail. [email protected]

Introduction

Nepal embarked in the path of modern science and technology development after the advent of democracy and the abolition of autocratic Rana regime in 1950. Along with the political changes, an initiation in science and technology development took place from the first development plan introduced in 1956. The department of Irrigation, Hydrology and Metrology, Mines and Geology, Survey and Medicinal plants were the major institutions established during this period. In addition, other organizations such as Royal Drugs Research Laboratories, Central Food Research Laboratory and others were established under the Ministry of Forestry. Similarly, in the education sector, Nepal’s first university, Tribhuwan University, was established in 1959 and this University had started post graduate program in natural science from 1965.

The need and importance of science and technology policies were felt during early 1960s. In this course, the government of Nepal sought the assistance of UNESCO to advise on the formation of a body for the formulation of a Science Policy (Bajracharya 2001). In 1966, a detailed survey of scientific infrastructure was prepared under the commission of UNESCO. The second General Assembly of the National commission for UNESCO held in 1966 for the first time recommended for a long term science planning on a national scale. A series of meeting held between government institutions and UNESCO led to institutionalization of science and technology policy and establishment of National Council for Science and Technology (NCST) and the Research Centre for Applied Science and Technology (RECAST) in 1976. The main objective of NCST was to formulate a national science and technology policy, As a result, for the first time, government of Nepal accorded importance of science and technology policy in the sixth five year plan (1980-1985). Since the NCST lacked the necessary political authority and the resources, Nepal Academy of Science and Technology (NAST), then Royal Nepal Academy of Science and Technology (RONAST), was established in 1982 as an autonomous organization. The first comprehensive proposal of National Policy for Science and Technology was prepared and submitted to the government by RONAST in 1988.

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Another major step undertaken in Nepal’s science ant technology sector was the creation of Ministry of Science and Technology in 1996 which was upgraded to the Ministry of Environment, Science and Technology in 2005.

Realizing the importance of science and technology in national development, Science and Technology Policy 2005 has been issued with a vision “to build the country as a developed, dynamic and prosperous state by raising the living standards through the appropriate development and use of science and technology”. The three objectives policies are as follows:

 To enhance the national capacity through the appropriate development and use of knowledge, skill and efficiency in the field of science and technology,

 To assist in the poverty reduction activities by utilizing natural means and resources in a sustainable manner through the use of science and technology and by promoting social and economic status of the people and protecting and preserving environment,

 To elevate the country to a competitive position through the optimum development of science and technology.

Institutions involved in Research and Development Institutions involved in research and development can be grouped under four main sectors, namely;

 Government Organizations

 University Departments

 Autonomous Institutions

 Private and NGOs

Government Organizations

At government level, major organizations in research and development are related with agriculture, energy, biodiversity, forestry, hydrology, meteorology and others. Two organizations Alternate Energy Promotion Centre (AEPC) and National Information Technology Centre (NITC) are formed under the Ministry of Environment, Science and Technology. AEPC, established on November 1996, works with the objectives to popularize and promote the use of alternative/renewable energy technology, to raise the living standard of the rural people and to protect the environment. Bio-gas, micro- hydro power, solar energy, improved cook stove are some of the major sectors involved AEPC. The NITC has been assisting government in research and development in information communication technology. Department of Agriculture is mainly involved in food production and food security. Department of Hydrology and Meteorology has a mandate to monitor all the hydrological meteorological activities in

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Nepal. The department of Forest Research and Survey is the main organization designated to conduct forestry research and survey. University Departments

Another sector of research and development are placed under the University departments. At the university level, majority of research activities are carried out as a part of dissertation. At the science faculty of Tribhuwan University, there are 11 departments which have combined research and teaching. .Four institutes of Tribhuwan University namely Institute of agriculture and Animal science, Institute of Engineering, Institute of Forestry and Institute of medicine carry out different types of research activities. Research Centre for Applied Science and Technology (RECAST) is the main research wing of Tribhuwan University related to science and technology. Their major area of involvement includes solar energy, low cost housing, water turbine, improved cooking stove, wind energy and others. Similarly, research connected with dissertations are also conducted by Kathmandu University, Purbanchal University and Pokhra University Autonomous Institutions

Nepal Academy of Science and Technology (NAST), previously known as RONAST, is an autonomous apex body established in 1982 to promote science and technology in the country. The Academy is entrusted with four major objectives: advancement of science and technology for all-round development of the nation; preservation and further modernization of indigenous technologies; promotion of research in science and technology; identification and facilitation of appropriate technology transfer. The research activities of Academy are conducted through the Faculty of Science and the Faculty of Technology. The major research activities conducted by the academy are related with the alternate energy, biological resources, environment and climate study, molecular biotechnology, natural product chemistry and synthesis.

Nepal Agricultural Research Council (NARC) had been established as an autonomous organization under "Nepal Agricultural Research Council Act - 1991". The goal behind its establishment was to provide an efficient, effective and dynamic agriculture research system in the kingdom of Nepal to give a boost to the economic level of the people involved in agriculture. Its main objectives are to conduct high level studies and researches on various aspects of agriculture, to identify the existing problems in agriculture and find out measures to solve, to assist government of Nepal in the formulation of agricultural policies and strategies. Its major activities are associated with Cereals and Cash Crops, Horticulture, Livestock and Animal Health, Fisheries Botany and Bio-Technology, food science and others. Private and NGOs

The private sector research activities are steadily growing in Nepal. Some of the notable organizations involved in research activities are Agro Enterprise Centre established under Federation of Nepalese Chamber of Commerce and Industries (FNCCI), Green Energy Mission, Dabur Nepal, Institute of Biodiversity of Nepal, Botanical Enterprises, and International Quality Herbal Industries and so on. Since the government has introduced the system of Initial Environment Examination (IEE) and

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Environment Impact Assessment (EIA), various private forms are conducting these types’ surveys in Nepal.

Issues and concerns

As stated above, various institutions have been established for the promotion of research, science and technology in Nepal. Nepal has over 28000 manpower in S &T (UNESCO 2006), the critical number necessary to make visible impact to Nepal’s development. However, despite some remarkable achievement made in the energy, micro-hydro power, solar power, bio gas and others, science and technology sector has faced various problems and challenges as mentioned below:

Lack of Long-term Vision: Although Ministry of Environment, Science and Technology has prepared 20 years plan and programs for science and technology, but there is little hope that it will be implemented in planned manner. Political instability and frequent changes in the government has negatively affected to implement the defined programs in a planned way and to achieve the desired goal within the stipulated time.

Limited Budget for Research and Development: Nepal is one of the poorest countries in the world. Its per capita income was US$ 451 in 2009. The low per capita income is reflected in national investment in R & D. The total investment in R & D has been less than 1% (0.11-0.48%) of the total budget. (UNESCO 2006).

Lack of Political Commitment: As experienced in the past, one of the major problems in the implementation of S&T policies in Nepal is the lack of adequate commitment from the government. NAST, previously known as RONAST has experienced that the Priminister while they are invited to augur ate the national conference on science and technology, they promised to increase the budget, but after some time or once they are out of government, they forgot the commitment.

Inadequate Infrastructure: Lack of proper infrastructure and environment is another problem. Universities, central departments lack appropriate facilities and equipments for laboratories test. There is no budgetary provision for research activities in colleges and departments which have the responsibility of also conducting PhD programs.

Commercialization of R&D: Most of the small and micro enterprise of Nepal uses traditional types of technologies. One of the reasons for using low productive measures is the absence of appropriate technology. FNCCI and World Bank survey on Manufacturing Establishment has stated that 77% Nepali firms wanted assistance in finding new technology (Shrestha 2008). However, due to lack of cooperation and coordination between research institutes and SMEs, demand of SMEs sector has not been fulfilled by research institutions. Similarly, although the Nepal government has made a provision of Technology Transfer in its Act, very little progress is noticed in this sector too.

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Conclusions:

Nepal has made considerable progress in the areas of formulating science and technology policy and establishing institutions for the promotion of S&T in the country. Establishment of Ministry of Environment, Science and Technology and Nepal Academy of Science and Technology (NAST) could be considered as a milestone for formulating appropriate policy and developing appropriate technology. Considering the size of government budget, Nepal has been investing much more in R&D but results are not so encouraging. Although different organizations are involved in research activities, linkages and coordination between these institutions is lacking. Compared to other countries, national effort made in S&T is still low. Despite all the weaknesses and short comings, if proper attention is given and the political commitment is maintained, there is a great prospect for the development appropriate science technology in Nepal.

------Bibliography/References

Bajracharya, D. 2001 Science and Technology in Nepal, Royal Nepal Academy of Science and Technology, Kathmandu. Bajracharya, B, Bhuju, D and Pokhrel, J. 2006 Science, Research and Technology in Nepal, Working Paper No 10, UNESCO Kathmandu. Krisna, V and Usha, K 2006. The Science and Technology System of Nepal, Kathmandu. Shrestha, P. 2008 Technology Development in the Industries/Business in Nepal, a paper presented in the Fifth national Conference on Science and Technology, NAST Kathmandu.

Website Http://www. Medlibrary.org/South_Asia www.most.gov.np www.nast.org.np www.aepc.gov.np www.nitc.gov.np

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Lecture 4-7. Nigeria(1,2)

Part 1.

The role of Government, Academia and Business in promoting science, technology and innovation in Nigeria

Prof. J. C. Ogbonna, Engr. Echi Nwogu, and Prof B. N. Okolo University of Nigeria, Nsukka

Introduction The world is driven by science and technology and the economies are competitive to the extent that they internalize advances in science and technology. The low level of development in Nigeria and most other African countries is directly linked to the poor state of Science and Technology development in these countries. There is general lack of infrastructures for meaningful research in Science and Technology. They have limited human resources to drive the Science and Technology R and D, a situation that is exacerbated by the brain drain syndrome. Thus, the level of demand-driven and market oriented research is low and even the trickles of innovative results obtained from various laboratories do not get to the market because of poor industrial base. The industrial sector is not well equipped to take advantage of research output from the academia. There is therefore urgent need to promote Science, Technology and Innovation in these countries if they are to get out of the present poverty and low level of development. The pursuit of economic development in most developing countries has been to follow the developed countries through technology transfer. However, the emphasis must be on sustainable development - “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. In other words, the R and D in Science and Technology must be sufficiently innovative to yield products and processes that are economically competitive with the existing technologies to bring about sustainable development.

Roles of Government in promoting science, technology and innovation in Nigeria Nigerian policy on Science and technology is built around four technologies – 1) Information and Communication technology, 2) Biotechnology and Bio-resources, c) Engineering materials and d) Space science. Government recognizes the need to tap into the University for economic growth. Education system in Nigeria has passed

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through series of transformations geared towards repositioning Nigeria to be Science and Technology based. The Federal Government established Education Trust Funds (ETF) which funds specific projects in primary, secondary and tertiary institutions in the country. Aside from the basic functions of providing basic infrastructures and funding for education and research, the Federal Government of Nigeria has been promoting Science and Technology innovation through the following:

Establishment of Government Laboratories and Research Institutes The Federal Government of Nigeria has established many laboratories in the country with specific mandates to research on specific areas of Science and Technology. Aside from these laboratories scattered across the country, there is also Sheda Science and Technology Complex, Abuja which houses Biotechnology Advanced Laboratory, Advanced Chemistry Laboratory, Advanced Physics Laboratory and Nuclear irradiation Unit. However, these laboratories engage mainly in basic research and do not have the mandate for business training, professional advice, and mentoring of young and spinout companies.

Promotion of Entrepreneurship development As a result of the lean financial and human resources, research in Nigeria should be market oriented and demand-driven. Research objectives should be well focused to address specific national and international needs and problems. There must therefore be sufficient interaction between the academia, industries and the public for the purposes of cross fertilization of ideas that will help to sharpen research objectives. National University Commission, which is under the Federal Ministry of Education organizes biennial “Nigerian Universities Research and Development Fair” where Nigerian Universities showcase their significant research findings and build the necessary linkage with the relevant industries. The Raw Materials Research and Development Council, under the Federal Ministry of Science and Technology, also organizes similar research fair for Universities, Research Institutes and Private Organizations. These research fairs are opportunities for academia, industries, Government Agencies, Funding agencies and Public to interact, evaluate results and determine future research goals. During the each fair, the National Patent and Licensing Office also discusses with individuals and research groups and provide relevant information to help them patent their results.

Roles of business/private sector in promoting science, technology and innovation in Nigeria The Federal Government of Nigeria has made it clear that Universities should not rely completely on Government for their financial needs. Thus Universities have to partner

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with private organizations under the Public-Private-Partnership (PPP) concept. Thus, aside from collaborative research projects, many industries in Nigeria encourage research and innovation by funding specific projects in various universities. In University of Nigeria, Nsukka for example, a Central Laboratory was built by Nigerian Breweries, a facility for Diploma training in Brewing Science and Technology in the Department of Microbiology was also provided by Nigerian Breweries, a Biotechnology Center was constructed and is being equipped by Diamond Bank Nigeria Plc, an ICT/Innovation Center was built by Intercontinental Bank Plc, and Fidelity Bank Plc has agreed to construct a Clinical Diagnostic and Wellness Centre for the University. The University of Nigeria ICT infrastructure is currently being upgraded with the assistance of a group of Nigerian and international organizations including Google incorporated, MTN Nigeria, Hewlett Packard, Microsoft Corporation, Cisco Systems (Nigeria), Xirrhus Inc, Wavion Network Ltd (Israel), Systemtech, Business Connection of South Africa, First Bank of Nigeria Plc, and Zenith Bank Plc. Other universities in Nigeria are also receiving one form of assistance or the other from industries to upgrade their facilities and to facilitate Science and Technology R and D.

Role of Academia in promoting science, technology and innovation in Nigeria Teaching and research are the basic responsibilities of Universities. However, the concept of “Service University” has made it imperative that Universities should be directly involved in economic development of the regions where they are situated. They must have adequate and focused manpower training schemes for development of human capital and should be directly or indirectly involved in stimulating economic growth and job creation, especially in knowledge based and creative industries. The skill and technology in the university are valuable resources for improving the productivity and technology base of the local companies/industries. They can help to bring about innovation in traditional industries, not just to improve profitability and become more competitive but also to make them more environmentally friendly. Their research findings must be made accessible and they must encourage new enterprise and innovation. Economic development of the region/nation must be one of the missions of present day universities because economic development will in turn facilitate Science and Technology R and D.

Activities at the University of Nigeria, Nsukka (UNN) As the first indigenous university in Nigeria, one of the missions of University of Nigeria is to be in the forefront of teaching, research, innovation, knowledge creation, and manpower development in Nigeria and indeed in the whole of Africa. The university has been promoting science, technology and innovation in Nigeria in the following ways.

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University of Nigeria Centre for Entrepreneurship and Development Research The University recognizes the need to promote entrepreneurs that would innovate and ensure that inventions get to the market. She aims at producing graduates with high analytical and ICT skills, graduates with high entrepreneurial and problem solving/decision making skills. Thus, University of Nigeria Centre for Entrepreneurship and Development Research was established to promote and foster entrepreneurial culture and mind set, facilitate skill acquisition, self-employment, economic independence and self actualization. The Centre offers educational and skill acquisition programs for people to gain knowledge and skills to become entrepreneurs and start up and manage small and medium scale enterprises of their own. It organizes certificate courses in Entrepreneurship for both UNN students and public as well as Skill Acquisition Program for youths and School leavers. The areas of training include Creative Arts and Design, Agro-production, Cosmetology, Printing and publishing, IT and Communication, Food and Catering services, and Business enhancement. Currently, all UNN undergraduates take mandatory courses in entrepreneurship and ICT skills.

University of Nigeria Innovation Centre This was established to help Nigerian inventors, innovators and entrepreneurs make their ideas and concepts more commercially successful for the benefit of society, the Nigerian economy, the inventor and the University. The specific objectives of the University of Nigeria Innovation Centre include a) The Centre is a multi-disciplinary platform for extending the domestication of Technology and knowhow. The Centre encourages and supports the commercialization of knowledge from the various Departments and Research Centers of the University as well as other Institutions in the region. b) It is a take-off pad for the University Technology and Innovation Park for the incubation and commercialization of research results and innovations. c) It hosts an Intellectual Property Technology Transfer Office (IPTTO) [with the support of the National Office for Technology Acquisition and Promotion (NOTAP) and World Intellectual Property Office (WIPO)] for facilitating and promoting universal knowledge pursuits, Technology transfer and advancement of knowhow with attendant domestication of knowledge advancement and visible national economic benefits while promoting the protection of intellectual property rights of researchers, inventors and innovators. d) Services provided by the Centre include the identification, protection and licensing of Intellectual Property (IP), advice and mentoring in the creation of new company, provisions of seed funds and links to organizations, providing further funding, costing, contracting, negotiation, invoicing, insurance and support for

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staff who provide consultancy services to external organizations and links to industries through showcasing and networking events. e) The Centre therefore exists to facilitate the accelerated emergence of innovators and entrepreneurs who will be helped to translate their ideas and concepts to commercial success for the good of society, the national economy and the University of Nigeria with their sponsors.

The University of Nigeria basic policy on Intellectual Property commercialization is as follows: Responsibility: The University assists inventors, innovators, and entrepreneurs make their ideas and concepts more commercially successful for the benefit of society, the Nigerian economy, the inventors and the University. Ownership of Intellectual Property: University claims ownership of all employees’ and students’ IP rights resulting from University research activities. The University assists those researchers who wish to commercialize their research in patenting, licenses, spinout companies, and consultancy. The researchers share the benefits by royalty shares from licenses, equity in spinout companies and income from personal consultancy. University revenue sharing from licensing technology: Ninety percentage (90%) of the total profit goes to the researcher/inventor for profits of one million naira or below and 34% for profits above one million naira. All costs are reimbursed and in addition, researchers will have equity in spinout companies resulting from their research success.

Commercial Business Ventures The University, in partnership with staff has in operation several venture companies such as Water Resource Management company, Bakery and Poultry farm all of which use technologies and knowhow emanating from research in various academic Departments. It is anticipated that the number of such companies will continue to increase and the profit will be used to finance various university projects.

Challenges of University of Nigeria Innovation Centre 1.Patents and commercialization of products/inventions are not scored in staff appraisal for promotion. Thus many staff are reluctant in pursuing research up to patents and commercial ventures. 2.More funds are needed to provide more facilities and conducive environment for incubation of inventions resulting from the various research units of the university. The centre needs pilot scale research facilities for various areas in Engineering, Biological Sciences, Pharmaceutical Sciences as well as Chemical and Physical Sciences. These are capital intensive and require support from the Government, as well as national and

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International funding agencies. Furthermore, aside from basic infrastructures, the researchers/inventors need funding for research and development, and venture capital for incubation and commercialization stages.

International collaboration for promotion of Science, Technology and Innovation The University of Nigeria has signed MoUs with many universities in Europe, Canada, Japan, and the United States of America for exchange of staff, students and information, as well as for research collaboration. The University is developing shared curricula with eight universities in Asia. These are: University of Tsukuba, Japan; China Agricultural University; Bogor Agricultural University, Indonesia; Chungnam National University, Korea; Kasetsart University, Thailand; King Mongkut University of Technology, Thonburi, Thailand; Suranaree University of Technology, Thailand and University of the Philippines, at Los Banos, Philippines. Under this arrangement, UNN staff have the opportunity of giving lectures to the students of the participating universities while UNN students can register for courses which are jointly taught by the participating universities.

Conclusion Nigeria, like most other developing countries is lagging behind in Science and Technology, the area that is critical to her economic development. One of the most effective ways of promoting Science, Technology and Innovation is to provide facilities where laboratory results and novel ideas can be evaluated and further research and development needed to produce marketable products/services can be carried out. University of Nigeria, Nsukka recognizes the important roles Universities can play in this regard. Significant contribution to economic development through Science, Technology and Innovation is one of her missions. However, the financial resources needed to achieve this are enormous. Unfortunately, the amount of money Nigerian Governments are spending on education, Science and Technology is still relatively low due to general lean resources and demand from other crucial sectors. Furthermore, due to low level of industrial development and general economic meltdown, it has been difficult to get much from industries and organized private entities. The University is therefore looking forward to international collaborations and financial assistance to enable her performs this crucial role that will help leapfrog Nigeria out of poverty and high rate of un-employment.

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Part 2.

SCENCE, TECHNOLOGY AND INDUSTRIAL PARKS DEVELOPMENT IN NIGER STATE: THE ROLES OF GOVERNMENT, ACADEMIA AND BUSINESS

Dr. Abdulmalik Ndagi

Director General Niger State Industrial Parks Development Agency, Governor’s Office P.M.B. 43 Governor Hosue, Minna, Nigeria [email protected]

INTRODUCTION

Niger state is the largest in terms of land in Nigeria representing about 10% of Nigeria landmass with a population of about 4.0 million. It is an agrarian state with less economic activities and one of the least industrialized states in the country, sequel to above scenario the Niger State Government developed DAP 2007-2011with a vision of becoming one of the top three state economies in Nigeria by the year 2020. Science Technology and Industrial parks, clusters, free trade zones, enterprise zones and innovation centers are veritable tools for attaining above desire. Niger State Industrial Parks Development Agency is aimed at combining economic, industrial and technological development strategies using National and International Platform to solve the problem of under development of the State and transforming the state from a civil service state to economically self sustaining and vibrant state. It is also to facilitate the creation of innovation-based Industries, wealth and jobs creation through spin-off processes and other value-added services of the parks, clusters etc. The concept of Science Technology and Industrial Park is to fast track industrial development and enhance economic activities in the industrially disadvantage areas (States) through the development of a world-class infrastructural facilities with strategic business support packages that will meet the needs of industrialists and manufacturers of all sizes and types sourced both on- shore and off- shore. The STIP concept occurs at different levels and stages which include parks, Villages, clusters, free trade zones enterprise zones etc.

PARKS LOCATION IN NIGER STATE

The Agency presently have:

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i. One ICT Park ………………….Minna

ii. Two Industrial Parks ……….Minna and Garam

iii. Science Park……………………Lapai (Yet to take off)

iv. Technology Park……………..Bida (Yet to take off)

v. Industrial Park………………...Kontagora (Yet to take off)

OBJECTIVES i. Promote the Scientific, Technological and Industrial base of the state, through the establishment and management of parks, Clusters and enterprise zones. ii. Facilitate actualization of Niger State Vision 3:2020 through the promotion and development of the high-tech industrial sector. iii. Organize /set-up high-tech industrial development fund. iv. Promote technology acquisition, transfer and other innovative activities. v. Facilitate job creation and wealth management in Niger State.

STRATEGIES I. Development of implementation action plan II. Development of legal, institutional and regulatory framework for the parks. III. Identification of existing clusters gaps and proffer solution for scale up and up grading. IV. Establishing strategic alliance with Private sector to invest/establish at the parks and clusters. V. Ensuring specialization of the parks, clusters, innovation centers and enterprise zones. VI. Sourcing of industrialists and manufacturers from both on-shore and off-shore VII. Sourcing funding and technical assistance/partnerships from the Private Finance Initiatives and donor agencies

VISION To accelerate the industrialization process and facilitate economic development of Niger State within the contest of VISION 3: 2020.

MISSION

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To transform Niger State from a civil service State to an investor`s haven. To provide integrated infrastructural facilities that will enhance economic and industrial development of Niger State. To establish national and international partnerships and linkages that will actualize objectives of the Agency. THE ROLES OF GOVERNMENT AND BUSINESS The roles of Government and Business are quite specific but that of the Academia cannot be specified. The Government major roles include: i. Acquisition and compensation payment to the natives for the Land ii. Creating conducive enabling environment such as the PPP platform iii. Provision of some basic infrastructures and facilities iv. Designing, Development and Allocation of Industrial plots at the sites v. Provision of incentives such as tax rebates and holidays The Business (Private Sector) major roles include: i. Establishment and Investment at the Parks ii. Provision of private Independent Power and Water at the Parks iii. Networking and synergizing among the Parks operators.

The academia has no definite role for now except individual businesses contacting them for quality control analysis and consultancy services which also is at a very low significant level.

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Lecture 4-8. Palestein

PALESTINE AT A GLANCE Innovation Aspects (Facts, Growth, & Difficulties)

Eng. Safa' Seder

Testing Lab Manager, Marble & Stone Center Palestine Polytechnic University E-mail: [email protected]

General Information The location of Palestine is at the eastern coast of the Mediterranean Sea. Palestine is located to the south of Lebanon and to the west of Jordan. Palestine Geography consists of four regions in the country. The Palestinian territories are composed of two discontinuous regions: The West bank, including east Jerusalem, which has an area of 5655 square kilometers and a total population of 2.4 Millions according to 2009 statistics of Palestinian Central Bureau of Statistics “PCBS”, and the Gaza Strip, which is a small enclave located to the south of the Palestinian coast, and has a total area of 365 square kilometers and a population of 1.5 millions according to the 2009 statistics of PCBS too.

Growth and Development The Occupied Palestinian Territory (OPT) is passing through a transition period. Palestinians are trying to build their own state on their national soil in the few years to come, thus they are in need of building their national systems based on innovative basis. The researcher conducted many interviews and conducted a brain-storming workshop with many academic, political and economic figures in order to figure out the Palestinian national innovation system through assessing its different drivers. In order to build a national innovation system in the OPT, Palestinians should be more opened to global knowledge, reform of universities and R&D organizations, establish an incubation system at universities, induced FDI to set up large domestic research facilities, encourage expatriate scientists set up high tech industries, focus on premier universities as key knowledge institutions, learn from past policies/ review reports, consult private sector, scientists, government officials and economists, develop human resource, upgrade R&D Infrastructure, promote ICT, and build a knowledge network.

The Palestinian Context: The West Bank economy is growing and for the first time in years, it experienced positive real growth, estimated at seven percent in 2009. This should be placed in the context of an economy recovering from years of protracted conflict during which per capita GDP fell by nearly a third since 1999. According the Palestinian Central Bureau

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of Statistics (PCBS 2010), in the early part of 2009 most of the growth took place in two sectors: real estate, renting, and business services; and community, social, and personal services, both of which grew by more than 24%. Public administration grew by nearly 9% and construction by over 10%. Meanwhile, mining and manufacturing grew by only 2% and agriculture fell by more than 17%. This suggests that higher output was based on donor-funded sectors such as health, education, and public administration rather than private investment in productive sectors such as manufacturing, agriculture, and tourism. Since growth appears to be driven more by the enormous inflows of donor assistance than by improvements in investor confidence, there is a danger that it will not be sustained. In 2008, foreign aid to the Palestinian Authority (PA) rose by nearly 80% from the 2007 level, reaching almost $1.8 billion, equal to 30% of GDP. The PA has used these funds to pay salaries, and cover operating costs. This large amount of aid has increased consumption and stimulated economic growth. However the expansion of alternative roads is a major burden for the Palestinians in terms of land loss and the fragmentation of West Bank territory. These roads reconnect Palestinian communities that were disconnected due to the restricted access of Palestinians to a main road, or due to the obstruction of a road by Israel’s separation barrier blocking free movement between the West Bank and Gaza Strip. They emphasize the exclusion of Palestinians from the primary road network and thus undermine the West Bank’s territorial contiguity. Small and medium sized enterprises (SMEs) constitute the majority of enterprises operating in the Palestinian economy. The most important impediments to innovation in the SMEs are: Limited resources within many SMEs for carrying out research and development. Investing in new knowledge is a risky activity that most SMEs cannot justify. Access to new technologies and know-how Ineffective rules, procedures, education and training programs

Method: A side of the Academic-Government-Industry Partnership (AGIP) Conference that was held on May 12th 2010 in Palestine Polytechnic University in Hebron-Palestine, the researcher organized a workshop for 20 senior experts representing different sectors: government; private sector; educational institutes and donors. The main goal of the brain-storming workshop was to discuss the drivers of the national innovation system. The participants were asked to grade each driver based on a five-point scale (1 to 5): 1 means very poor; 2 poor; 3 average; 4 good while 5 means very good. The average was calculated for each factor. The researcher focused the analysis on the following factors: 1. Educational system 2. Business 3. Research and Development (R&D) System 4. Business incubation and Information and Communication Technology (ICT) 5. Institutions (Government, educational, and private) 6. Capital for Innovation 7. Culture for Innovation

Palestine’s Innovation System This section discusses each of the abovementioned drivers.

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1. Educational System With a high 91% adult literacy rate, Palestinians are the most educated population in the Middle East and North Africa (MENA) region (WB 2006). Tertiary education consists of universities that provide bachelor and master degrees and colleges that provide 2 or 4 years of education for a diploma. In West Bank and Gaza there are 11 traditional universities, 1 Open University, 12 university colleges, and 18 community colleges. Today, there are more than 200 institutions in the West Bank and Gaza providing short and long term training programs. These include vocational secondary schools, vocational training centers, cultural centers, societies and charitable organizations, and agricultural and economic development centers. In addition to these institutions, come the 18 community colleges providing postsecondary educations, 5 of them are technical colleges. These institutions are run by several bodies that include: the Ministry of Education and Higher Education (MoEHE), the Ministry of Labor (MoL), the Ministry of Social Affairs, UNRWA, several Philanthropic associations, and large number of religions and profit organizations, in addition to private and public organizations. There are five streams in school-based vocational training: industrial, agricultural, commercial, hotel and home economics. Palestine’s primary and secondary education systems do not promote innovations. The system is built on memorizing textbook facts instead of creative learning systems or explorative research. In this sense, the academic system up to the BA grade is an extension of the rigid school system. Only in master courses, students are exposed to independent learning and are applying creative learning concepts. Interests in innovations are thereby stimulated far too late in the educational system. Only a few dedicated courses to innovation management and entrepreneurship can be found in public universities while private academic institutions seem to be slightly more advanced in this field. The challenge for education is to provide learning environments that stimulate independence, creativity and an entrepreneurial approach to harnessing knowledge. "Participants ranked innovation in educational system as "average" emphasizing that educational institutes are providing standards specializations and programs focusing on the supply rather than the demand driven approach"

2. Business Labor force counts for almost 600,000. The employees distributed by sector as follow: agriculture (17%), industry (15%) and services (68%). Female employment is heavily concentrated in just two sectors: agriculture and services. In contrast, the male labor force is more evenly distributed across the main sectors. The two main changes during the last five years are the relative decline in agriculture, manufacturing and construction and the quite marked increase in the share of the services sector (WB 2006). The unemployment rate recorded as 16.3% and the inflation as 2%. The industrial sector includes: stone and marble, textiles and garments, food processing, engineering and metallurgical industries, chemical industries, pharmaceuticals and veterinary, construction industries, handicrafts, paper and printing, furniture, leather and shoes, and plastics. The services sector include: domestic trade, tourism, transport and communications, engineering design, communications, financial services, software services and others. In the OPT, enterprises employing less than 20 employees constitute 98 % of the total number of registered companies that operate in the local Palestinian economy in 2009

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"Participants ranked the innovation in business as "average" emphasizing that Palestinian businesses are mainly family-owned traditional SMEs producing standard products and services and competing each based on prices"

3. R&D System The OPT’s heterogeneous R&D framework consists of public and private universities as well as national research centers. Apart from general research, these institutions focus their work on the areas such as: water, environment, energy, biotechnology, and ICT. Though a clear need for new technologies and R&D results exist by Palestine’s industrial sector, dedicated and effective technology transfer processes are still under development and current processes work less efficiently. State initiatives to stimulate cross fertilization between industry and the academic institutions are little accepted and not very effective. Table below presents the main indicators for R&D in the West Bank (PCBS 2010).

"Participants ranked The R&D as "poor" emphasizing that there are no publications to speak of and no enough budgets allocated for R&D"

4. Business Incubations and ICT The Palestinian ICT sector started to show significant growth by the end of 1995. The biggest end-user of technology products and services was the PA, followed closely by Local Government (Municipalities) and then by the larger companies. By 1997, the Palestinian telecommunication sector was 100% privatized with the creation of PALTEL, the Palestine Telecommunications Company, which was licensed to be the exclusive telecommunication operator in Palestine. PALTEL installed a digital network connecting the West Bank and Gaza and currently offers a wide range of services such as fixed telephone lines, leased lines, ISDN connections, ADSL. The software industry produced a wide range of solutions and packages in areas such as human resources management, projects and sales management, Finance and accounting, education related solutions, management information systems, children education and entertainment. Many new companies were also established and specialized in web development, e-business solutions, web portals development, ICT

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consultancy, training, and office automations.

The Palestine Information and Communications Technology Incubator (PICTI) aims to develop the Palestinian Micro, Small and Medium Organizations (MSME) sector, as a means to generate new jobs, attract investments and improve the economic situation in the target areas. The PICTI work program aims to revitalize entrepreneurial culture in youth by encouraging new business development and entrepreneurs, and provides technical training and capacity building for PICTI staff to benefit its clients. "Participants ranked the Business Incubation in the OPTas "poor" emphasizing that the financial support of early phase entrepreneurial ventures is quite low, while the ICT as "average"

5. Institutions The OPT has in place a higher education law that provides the legal framework for organizing the relationship between education and business. The main problem is that the law has not been implemented as was intended, and in many respects the governance bodies are not functioning optimally. The Council for Higher Education(CHE) is the most and its creation predates the establishment of the MoEHE. As part of the implementation plan of the national strategy for technical and vocational education and training, the Higher Council of TVET was formed in 2005. In 2002, the MOEHE established an Accreditation and Quality Assurance Commission (AQAC) headed by a chair who is appointed by the Minister, and has a board of 12 professionals whose mandate is to take final decisions about licensing and accreditation — which get ratified by the Minister. The MoEHE has established the Council for Scientific Research (CSR) at the Ministry. It is a body that was established and operates within a draft by-law set out by the Ministry that has not yet been ratified. The private sector is represented by many institutes such as: Palestinian Federations of Industries, Palestinian Federations of Chambers of Commerce, Industry and Agriculture, Palestinian Trade Centre among others. Although these institutes are overseen by the Ministry of National Economy, they are not active and competing each other rather than complementing each other. Consultancy contracts can be useful as an indicator of how know-how is oriented toward various economic activities, and this information can help in identifying areas for building endogenous science and technology (S&T) institutions that may target the

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transfer of know-how from contracting bodies to enhance national strategic plans. In reality, the transfer of S&T depends largely on how these contracts are managed and what sort of a relationship is established between local teams and the consultants in terms of training, bridging and capacity building. "Although, there are many initiatives called for public private partnership in the OPT, the participants ranked the governmental, private, and educational institutions as "poor" emphasizing that these institutes are not active, and competing each other"

6. Capital The OPT’s financial support system of innovative entrepreneurial ventures is still underdeveloped. While seed capital generally exists, grants for capital intensive entrepreneurial ventures are very small. Business angel networks are only rudimentary existing and banks are very conservative and risk averse in their investment behavior even with a third party coverage up to 75%. The venture capital instrument is still underdeveloped due to current legislation. Moreover, most initiatives regarding educational development or private sector development are mostly from donors such as the World Bank, EU, USAID, GTZ, Belgium, Dutch, and French in addition to Arab and Islamic Funds. The Palestinian firms are facing difficulties in acquiring capital. Family businesses, most of the times, prefer to stay small and prefer not to bring in any external partner to their firms. As well, many banks might lack the knowledge and experience of dealing with small loans. However, in terms of capital assets, the lower investment rate in the OPT is consistent with the Palestine's low capital productivity and the Palestinian's history of relatively high macroeconomic volatility and the bureaucratic rules and regulations. "The participants ranked the financial support system of innovation as "poor" showing that grants and loans supporting innovative entrepreneurial ventures are very small"

7. Cultural Framework The OPT’s culture does not seem to promote individualism as prerequisite for innovations and entrepreneurship. The traditional trading orientation of the culture seems to be less geared towards innovation than a culture with is more manufacturing oriented. This might be one reason for the undeveloped innovation and entrepreneurial system. Education-business cooperation is still limited. However, the culture of education business cooperation started to significantly grow up after 1994, after the Palestinian Authority (PA) took over, a state attributed to many reasons: before 1994, education sector was governed by the Israeli occupation through military laws; TVET strategy and Higher Council for TVET were only created after 1994; and the Council of Higher Education, under which all universities and colleges were operating, was activated after the establishment of the PA. Some of drivers that have influenced the tradition are: the political effects: like uncertainty and mobility restrictions; the structure of the business community, where most of the business establishments are SMEs and the culture which is still in the stage of having family owned industries, usually limited to employing relatives and close friends, and reluctant or constrained toward approaching the schemes and programs of cooperation. "The participants ranked the culture of innovation as "average" showing that Palestinians manage to find out innovative solutions against many Israeli restrictions"

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Conclusion OPT’s innovation system is still underdeveloped and not working efficiently. It suffers from weak components and a lack of coordination and managed links between its components. The main challenges facing sustainable development in the OPT are: political turmoil; weak educational, private, and governmental institutes; weak linkages between educational and business institutes; low R&D expenditure; few scientists and engineers; non competitive industry and knowledge; low usage of information and communication technology; limited private sector R&D and Innovation activities; and brain drain. Education and labor force lack an overarching vision at the highest level of government that would serve to guide and coordinate reform initiatives. There exist many persistent national systemic barriers to the creation of an educational system that is demand driven, competency-based, flexible and responsive. Main general obstacles are: the pervasiveness of the academic model, bureaucratic processes, and the lack of performance management systems. In addition, there is an absence of a vehicle for creating a vision for education and leading and coordinating the growth and development, and the absence of strategic planning for the educational and business sub-sectors. In addition, labor market and institutional performance information is not being utilized for program planning. At the business level, it is obvious that more than 90% of industries are classified as small family administered businesses. This implies that efforts have to be devoted to enrich the family business administration tools and mechanisms and tackle small scale related problems in financing, promotion, technical assistance, raw materials and other business essentials. Productivity across all industrial sectors does not exceed 50% on average, and only few industrial investments were evident in the West Bank in the last decade, most of these were in the form of development to existing enterprises. It worth mentioning that there is a lack of coordination efforts between different private institutes, and inter-sector relations and inter-industry relations are weak. There is no unified reference for the private sector (i.e. unions, chambers, associations) to reinforce capacity to help SMEs to address their needs for skills, lack of information accuracy and the government is not able to control and regulate the internal market and eliminate unfair competition with local producers.

Recommendations to Move Forward Drivers of Innovation Cultural development plays an important role in political, economic and social development. In the OPT, however, the cultural sector is witnessing many challenges that threaten to compromise cultural and artistic outputs and constrain innovation, mainly, due to the lack of clear national policies and strategies required to coordinate efforts and provide funding. To build an innovation national system, the OPT should be opened up to the global knowledge, reform of universities and R&D organizations, promote incubation system, attracted Foreign Direct Investment (FDI) for both domestic and export markets, wide consultation with private sector, scientists, government officials and economists, and promoting ICT. There should be legislation governing the relationship between education, business, Capital, R&D, and ICT sectors endorsed by the Ministerial Cabinet and Palestinian Legislative Council.

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References: - INNOVATION FOR SUSTAINBLE DEVELOPMENT: CASE OF THE OCCUPIED PALESTINIAN TERRITORY,2010, Palestine Polytechnic University - Palestinian Central Bureau of Statistics “PCBS” - Palestine Trade Center - Ministry of The Palestinian National Economy - The Palestine Information and Communications Technology Incubator (PICTI).

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Lecture 4-9. Syechelles

THE ROLE OF GOVERNMENT, ACADEMIA AND BUSINESS IN PROMOTING SCIENCE, TECHNOLOGY AND INNOVATION

COUNTRY: SEYCHELLES

Mr. Barry Assary Manager, Project Development for Small Businesses, Seychelles [email protected]

Introduction:

The Republic of Seychelles consists of over 116 islands scattered over 1 million square kilometres of sea in the middle of the Indian Ocean. Seychelles may be considered as one of the smallest republic, in the world which covers a total area of 4,553 square kilometers and is situated 4 degrees south of the equator. Seychelles is a democratic country, where President James Michel is both the Head of the state and Head of the Government. The Island has a population of just over 95,000 citizens. The three official languages are English, Creole and French.

The role of Government:

The Government of Seychelles recognizes the significance of having vibrant business sectors in order for the nation to emerge as a successful economy. Efforts have continuously been put on the importance for the enterprises to adopt appropriate use of technology, machinery or equipment in order to operate efficiently. The Government is committed to providing tangible support towards their development. The creation of the Small Enterprise Promotion Agency (SENPA) in 2004 and the enactment of specific legislation including: a Craft Policy (2002); Policy on Promotion and Development of Industries; and National Industrial Policy (1996), are evidence of this. The government took the appropriate role in promoting science, technology and innovation. There is at present the following;

 The right business climate  The right training Institutions training technologists, engineers and others in relevant fields  Introduction of new mechanism that support innovation, creativity and technology diffusion including greater use of public/private partnership

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 Strengthening the capacity to create knowledge, to create and to innovate  Invested in higher education as a strategic input into the development

The Government formed the National ICT Consultative Committee and tasked them with the responsibility to formulate a National ICT Policy (NICTP). Nevertheless, the publication of the National ICT policy is the output of the collaborative effort of several people from Government, private sector and civil society, including members and non- members of the National ICT Consultative Committee. To date the involvement of the public/private partnership has positive outcomes.

The government is currently confident that each and everyone involved will rise up to the challenges and contribute to the creation of a conducive environment and make provision of the appropriate ICT tools for the social, economic and cultural development in the fulfillment of the aspirations of the people of Seychelles.

In his 2010 State of the Nation’s address, President Michel acknowledged the innovative drive of the Seychellois people. He announced the creation of the Seychelles Innovation and Technology Council or SITC. It is evident that for Seychelles to move forward it needs to invest in knowledge and technology – now described as the third and fourth key factors of production besides labour and capital. The committee is mandated to network with key government agencies and leading innovators in the private sector to develop a national policy and strategy as well as implement a number of activities.

The long-term objectives of the council include (i) nurturing creativity and innovation as part of a lifelong learning process at all levels of society;

(ii) making all educational institutions, technologically and skilled driven;

(iii) transforming the workplace into learning and innovative environments which encourages active engagement rather than passive participation;

(iv) promoting the development of science, research and good practices aimed at improving our understanding, quality of life and prosperity;

(v) promoting good governance, dialogue and cultural advancement with the purpose of building a resilient and performance society;

(vi) supporting the development of processes which influence thinking, planning and doing; and

(vii) Supporting innovation across all sectors which contribute to wealth creation and sustainable development.

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The role of Academia: The push to provide Science, technology and Innovation in all academic circles has been successful in recent years. Most education institutions have computer labs but none have computers in every classroom. More than 60 percent of all schools are connected to the Internet. Although technology is prevalent, several factors affect how it is used. These factors include placement of computers for equitable access, technical support, effective goals for technology use, new roles for teachers, time for ongoing professional development, appropriate coaching of teachers at different skill levels, teacher incentives for use, availability of educational software, and sustained funding for technology. The Ministry of Education has seen an increase in demand for higher education or advance knowledge that favours participants with technological and/or technical expertise to satisfy the local economy. In this respect, vocational institutes and polytechnics are playing a vital role in promoting Science, Technology and Innovation. This is also being applied at all other levels of learning, from primary, secondary, technical institutes to University. The Creation of an ENTREPRENEURIAL UNIVERSITY focused on business incubation would surely give further boost to the already effective existing program as a result pride the country with the most needed science, technology and innovative enterprises. The Seychelles Government supports 'science engagement' activities through its annual science fair engaging all local education institutions. Aims of the event include encouraging the youth to present, meet and discuss their innovative work with the public, promoting sciences and inspiring others as well as promote science careers and strengthen young people's experience of science at school by doing so technology and innovation are promoted.

The role of Business: The small to medium-sized enterprises in Seychelles is now being engaged to take up a strong role in the development of new opportunities and the use of appropriate technology. This goal is now being heavily encourage by the government and could possibly be further promoted through the establishment and encouragement of regional or national road shows, technology days, trade shows, advertising, workshops, and/or online discussions. However, there are numerous obstacles for business to be innovative in their approach and creation. Many of the obstacles are low levels of effective demands in local economies with limited market development; constraints on finance and capital created by low-income and limited savings; absence of long-term credits; and high interest rates. Equally debilitating is the lack of support, knowledge, and experience in marketing, finance, and management; shortage of work experience and skilled labor; limited social and business networks; limited support institutions for entrepreneurship; and lack of SME schemes; lack of role models; lack of personal motivation; and there is the lack of knowledge on appropriate technology investment.

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CONCLUSION It is now more important than ever for Seychelles to take rigorous efforts towards scientific and technological development at a more advanced level so that we are positioned to take an active part in the global “knowledge economy” on an equal footing on science, technology and innovation with other countries.

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Lecture 4-10. Sri Lanka

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Lecture 4-11. Taiwan

Development of Southern Taiwan Science Park

Cheng, Hsiu-Jung19 Yeh, Jong-Kuan

Southern Taiwan Science Park Administration

1. Introduction The showcase of the miracle achieved in southern Taiwan, the Southern Taiwan Science Park (STSP), was built based on the concept of the "New Establishment of Science Parks" of the "Six-year National Development Plan" of the Executive Yuan in 1991. In 1993, the "Economic Revitalization Project" was approved and the proposal to "Establish the Southern Taiwan Science Park" was initiated. The National Science Council created the STSP in February 1995. On August 31, 2010, the number of Park enterprises at the STSP was 279 with nearly 54,600 employees. The STSP now is the largest industrial cluster in southern Taiwan and has the highest density of employees. In the future, the STSP, under the leadership of the Southern Taiwan Science Park Administration (STSP Administration), will serve as a high-tech Science Park that focuses on the co-existence of "human culture," "environment," and "technology" to lead southern Taiwan for more achievements. Located at the border of Xinshi Township, Shanhua Township, and Anding Township, the Tainan Science Park comprises of total area of 1,043 hectares. It is the headquarters of the optoelectronics, IC, precision machinery, and biotechnology industries. At the border of Luzhu Township, Gangshan Township, and Yong’an Township, Kaohsiung Science Park occupies a total area of 570 hectares. It is the home of biotechnology (medical device), optoelectronics, and precision machinery industries。

2 Industrial Builder and the Giant Wheel, the STSP

2.1 Industrial Trend 2.1.1 Industrial Investment f

19 Contact Information: +886-6-505-1001ext.2329; No.22, Nanke 3rd Rd., Xinshih Township, Tainan County 741-47, Taiwan, R.O.C.

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As the world is still facing the uncertainty of future economic situation, the STSP continues its efforts of the previous years. By the end of 2009, the number of existing approved enterprises reached 156 and in 2009 alone, the investment of an additional 18 Park enterprises in the STSP was successfully approved, including ten from biotechnology, five from optoelectronics, two from precision machinery, and one from the telecommunications industry while 14 presented themselves at the Kaohsiung Science Park and four at Tainan Science Park with an approximate approved investment amount of NT$2.3 billion. 2.1.2 Investment Trend of the Industrial Clusters  Optoelectronics Industry The STSP has Taiwan’s most integrated optoelectronics industrial cluster and by the end of 2009, the existing approved Park enterprises totaled 45 with the presence of five additional new Park enterprises in 2009. In terms of Flat Panel Display, fabs that started mass production include two Generation 3.5-4, four Generation 5-5.5, one Generation 6, and one Generation 7.5. One Generation 8.5 is now under construction.  IC Industry By the end of 2009, 11 IC approved manufacturers were in presence at the STSP. In addition to mass production of Fab 6 (8-inch wafer fab) and Phase 1, 2, and 3 of Fab 14 (12-inch wafer fab) of TSMC, at present, TSMC is constructing its advanced wafer packaging fab that is expected to start mass production in September 2010. UMC at the STSP has set up its R&D Center at the STSP making the STSP become one of the most important 12-inch wafer fab clusters in Taiwan. 2.1.3 Achievements  The Highest Turnover Growth Rate Generated by the Biotechnology Industry The overall turnover of the STSP in 2009 totaled NT$461.05 billion and among which, the contribution from the optoelectronics industry (61.97%) and the IC industry (32.57%) accounted for 94.54% while the biotechnology industry enjoyed the highest growth rate (27.15%).  The Highest Trading Amount Created by Optoelectronics The total import and export amount of the STSP in 2009 reached NT$372.06 billion and among which, the optoelectronics industry contributed the most with NT$249 billion and the IC industry came in second at NT$109.3 billion.  The Continuous Growth of Park Employees As the whole of Taiwan is striving for economic growth, the number of Park employees at the STSP continues growing. Compared with 2008, the number in 2009 grew by 500 for a total of 48,626. The continuous growth of employee numbers is the result of efforts by the Park enterprises.

2.2 Innovative Research and Development 2.2.1 The Gradual Growth of R&D and Patents In 2009, patent applications filed by Park enterprises totaled 1,516 with 836 approved. From 2003 to the end of 2009, the accumulated number of patent applications reached 11,462 with 7,388 approved. Each year, the average number of patent applications at the STSP is more than 1,000 and it has continuously grown. 2.2.2 Innovative Discoveries

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To encourage the R&D and innovation of the Park enterprises, the STSP Administration, since 2001, has sponsored the Subsidies for Encouraging Innovation and R&D and in 2009, 11 applications were granted for the amount of NT$30 million. By the end of 2009, a total of 72 projects were granted (31% governmental input) with an amount of NT$199 million. From 2007 to 2009, six papers were published, 37 patents were awarded, 32 master and PhD holders were cultivated, and a production value of NT$1.03 billion was generated.

3 The Beauty of Architecture, Shaping the STSP 3.1 A Green Science Park  The World’s Second Largest HCPV Power Generation Demo Site in Luzhu The HCPV Power Generation Demo Site in Luzhu was begun on December 22, 2009. It is the largest in Asia and the world’s second largest (next to one in Spain). It occupies two hectares with the installation of 141 light diffusing brackets, 8,040 sets of modules, and total power capacity of one million watts. Each year, 1.1 million units of electricity can be generated to reduce the emission of carbon dioxide by seven million tons. After installation, it had the potential to facilitate the building of an HCPV industrial cluster at Kaohsiung Science Park. Taipower is planning to set up a solar power plant with the capacity of 4.5 million watts at Yong’an Township and Kaohsiung County is expected to be the headquarters of the green energy movement.  Optoelectronics Exhibition, the Largest Green Energy Cluster in the STSP The STSP Administration invited Gloria Solar, Chi Mei Energy, Kenmos PV, AURIA Solar, King EnerTech System, and Delta to participate in the STSP Optoelectronics and Solar Exhibition at the Photonics Festival in Taipei from June 10 to 12, 2009. The innovative and clear theme attracted many visitors. 3.2 Public Art  Beauty of Craft, Fusion of Human Culture To provide a unique and artistic sensation for Park employees and visitors to the STSP, the STSP Administration, beginning in 2009, installed more than 20 pieces of public art work in five major areas at the Tainan Science Park (the Plaza in front of the STSP Administration Building, dormitory area, open space area, detention ponds, and major intersections and corners). The most appropriate artwork of different artists has been selected according to the features of different areas.  Greeting Ribbon for the Prosperous STSP The steel structured “Greeting Ribbon” at the South Entrance of Tainan Science Park was completed on January 25, 2010. This ribbon symbolizes a greeting from the STSP to all of its visitors as well as welcomes the contribution of Taiwanese businessmen and youth. It provides a sensational appeal of returning home and contribution to their hometown. The entrance was constructed by the lake in the shape of a flying ribbon to balance the dynamic speed and centrifugal force experienced when travelling to the South Entrance of the Park. With the reflection of lake surface, the sign on the flying ribbon states the “Rise of the South,” and signifies its prosperity and hope.

4 Advance the Future

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4.1 Continuous Industrial Cluster Building  Building a Green Energy Industrial Cluster Due to soaring petroleum prices and the promotion of a renewable energy policy, the STSP Administration has proactively introduced green industries with development potential. Under the assistance of a technical consultation group and cooperation with the Ministry of Economic Affairs and Kaohsiung County Government, the green energy industrial cluster has been developed. The development of a green energy industry at the STSP mainly focuses on the solar cell industry and LED industry with the following strategies: construction of solar energy industrial chain, attracting a relevant LED industrial cluster, and assisting in the establishment of a HCPV Qualification and Development Center of the Institute of Nuclear Energy Research at Kaohsiung Science Park.  Building a Medical Device Industrial Cluster In 2010, the STSP Administration will continue promoting the “Southern Taiwan Biomedical Device Industrial Cluster Development Plan” and making the Kaohsiung Science Park into a medical device industrial cluster. It is expected to generate approximately NT$10 billion in revenue, facilitate the industrial upgrading, transformation or attraction of 50 new investors (among them, 15 presenting at the STSP) for an estimated investment amount of NT$5 billion, cultivation of 200 entry- level talents and 25 high-end talents in medical device industry as well as the direct employment of 4,000 and indirect employment of 6,000 jobs three years later when the plan is completed. 4.2 Promoting a Sustainable Green Science Park In 2010, ecological landscape, environmental protection, and green building are in constant focus. In terms of ecological landscapes, green traffic that helps to reduce carbon emission will be promoted and an efficient biking and shuttle bus systems (in operation since January 2010) have been developed. Works on light pollution and control as well as conservation of the detention pond, ecological conservation area, and archeological sites are also to be included. Environmental protection focuses on waste reduction and treatment, wastewater pipeline and treatment, total amount control of pollutant, toxic chemical management and the recycling rate of used water at the STSP. Green energy and green building activities will be continuously developed, promoted, and encouraged. Related websites will be developed. Eco-Community Certification from the EEWH-EC will be introduced and participation in the “Green Factory Union” will be achieved to release the EEWH-EF green factory plant evaluation standard. 4.3 The Richest Art Culture The STSP Administration held a three-month long “STSP Installation Art Festival” from January 30 to April 24, 2010. It was the first artistic activity held by a Science Park in Taiwan. Programs included the opening performance of Paper Windmill Theatre and 20 pieces of installation artwork done by 20 artists in five districts, including the plaza in front of the STSP Administration Building, dormitory area, open space area, detention ponds, major intersections and corners. The public was invited to appreciate the artwork.

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Lecture 4-12. Tanzania

THE ROLE OF TRIPLE HELIX IN PROMOTING SCIENCE, TECHNOLOGY AND INNOVATION IN TANZANIA

RAPHAEL, M. ISINGO Tanzania Commission for Science and Technology P.O.Box 4302, Dar es Salaam, Tanzania

ABSTRACT

This paper emphasizes the role of Government, Academia and Business (triple helix) in promoting Science, Technology and Innovation (STI) for stimulating and supporting sustainable economic development in Tanzania. Institutional frameworks for building sustainable triple helix; technology innovation, popularization, acquisitions and transfer for socio-economic development are presented. Also available opportunities and challenges facing STI capacities and capabilities in Tanzania are highlighted.

INTRODUCTION

In the current wave of globalization STI play a fundamental role in economic growth, creation of wealth and improvement of the quality of life. Building of capacities and capabilities, development of new products and services that are competitive in a free market economy are among the crucial roles played by STI.

After 40 years of independence, Tanzania’s economy is still predominantly agricultural; a sector that contributed some 27.6% of Gross Domestic Product (GDP) in 2005 and little has changed even in the face of recent efforts to boost industrialization. Services contributed 45% of the GDP in 2009, whereas industry and construction contributed 20.8% of the GDP which has not changed for the last five years (Figure 1).

Though, blessed with abundance natural resources and bio-ecological diversities; best geo-political location with a comparative and competitive advantage; and a strategic location in the East African region and her neighbors leaves one to wonder why are we still where we are.

In the 1960s, Tanzania’s technological development and that of Ghana and Asian countries was quite similar. However, the increasing investments dedicated to basic infrastructure (roads, schools, water, energy and telecommunications); development of SMEs and government support in research and technology development (R&D), higher education, academies of engineering and technological sciences invested by some

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Asian countries made them surpass many other developing countries. It is for the first time the Tanzanian Government has now realized the importance of investing in STI and has decided to allocate 0.1% of GDP (from 0.024 %) for research and technology development this year.

Figure 1: Shares of Major Sectors in GDP 2005 and 2009.

A crucial aspect of social development is the capacity to generate wealth and employment as the basis of sustainable development. To attain these goals, it is necessary to streamline STI within the National development strategies and popularize applications of STI in all sectors of economy.

STREAMLINING of STI INTO NATIONAL INITIATIVES AND STRATEGIES

Policies and Strategies

In order to streamline the applications of STI in the development plans, the Government enacted several National and Sectorial Policies, which guide and emphasize applications and development of capacities and capabilities of STI. Among others, this include1-12

a) Education and Training Policy (1995). b) National Science and Technology Policy (1996) (under review). c) Sustainable Industrial Development Policy (1996-2020). d) Mineral Policy (1997). e) National Environmental Policy (1997). f) National Higher Education Policy (1999). g) Public Policy on the Employment of non-citizens (1999).

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h) The National Employment Policy (2000). i) National Investment Policy (2002). j) National Water Policy (2002). k) Small and Medium Enterprises Development Policy (2003). l) National Energy Policy (2003). m) National Trade Policy (2003) and n) National ICT Policy (2003). o) Public Private Partnership Policy (2009)

Most of these Policies were developed within the last 15 years to react to the changes introduced by the globalization and the free market economy. And it is during this time the Government pulled out of the productive activities to policy formulations and implementations.

Over the years there has been several development strategies adopted or laid down by the Government as development roadmaps with time frames. These include: The Millennium Development Goals (2015); The National Development Vision 2025 aimed at transforming the country from the least developed country to a middle-income country and transform our economy from the agriculture based economy to the semi- industrialized economy. The NSGPR (2005-2010) and now NSGPR II (2010-2015) with three major clusters namely: Cluster 1: Growth for reduction of income poverty; Cluster 2: Improvement of quality of life and social well-being; and Cluster 3: Governance and accountability. Also the drivers of Growth have been identified as: Agriculture, Manufacturing, Tourism, Mining and Infrastructure these few and focused drivers have been selected based on the areas of comparative and competitive advantage.

In all three clusters the role of STI is clearly spelt out in the intervention packages. This includes: human resource capacity building; infrastructure development; skills development; financing of STI activities; creation of conducive environment for private sector participation in STI activities; application of STI results in value addition; promoting technology innovation, transfer and acquisition for SMEs; supporting commercialization of innovations through incubators, clusters and technology parks; and promoting of ICT application. Therefore, the role of STI in the implementations of NSGPR has been accorded a crucial role, which requires pro activeness participation of both public and private STI institutions.

Human Capital

One of the essential components to achieve excellence in STI is to have is critical mass of human resources to propel research and applications of STI results. In Tanzania we lack infrastructure for our scientists and technologists to enable them to carry out high-quality basic and applied researches. Training of scientists, engineers and technologists at the postgraduate level (master’s and doctoral degrees) requires centres and institutions of higher learning with high academic standards and quality programmes relevant to the society.

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Government initiatives have led to the establishment of the College of Engineering and Technology, the Nelson Mandela African Institute of Science and Technology and the University of Dodoma. Also, two technical colleges have been expanded to offer degree programmes (Dar es Salaam Institute of Technology, and the Mbeya Institute of Science and Technology), which is a move aimed at enhancing programmes and increasing the number of graduates.

As shown in Table 1 and 2 the ratio on engineer professionals in to the population of about 40 million is 23 engineer professionals for every 100,000 Tanzanians. To become globally and economically competitive, Tanzania must achieve the world average of 5,000 per 100,000 (or 5%) which would result in the production of about 22 times more engineers than the current rate (about 500 per year) for the next 10 years.

Table 1. Registered engineering professionals as of January 2010 Category TOTAL Graduate Technician Engineers 637 Graduate Engineers 4,263 Technician Engineers 400 Professional Engineers 3,091 Temporary Professional Engineers 564 Consulting Engineers 229 Temporary Consulting Engineers 65 Grand Total 9,249

Table 2. Registered engineers by gender and employment as of January 2010 Gender R&D Institutions Universities PhD MSc BSc PhD MSc BSc Men 108 388 353 841 894 774 Women 29 164 159 175 318 259 Total 137 552 512 1016 1212 1033 Grand Total 4462

Technology Management and Institutional Setup

In Tanzania, issues relating to STI are coordinated through the Ministry of Communications, Science and Technology (MCST). Whereas, the Commission for Science and Technology (COSTECH) (1986)13 under the MCST is responsible in advising the Government and overseeing all matters related to research and technology development. To fulfill these mandates, COSTECH collaborates with sectoral R&D institutions (109 institutions) and all other stakeholders in public and private sectors. Among other activities performed by COSTECH include -Developing of a National Research Agenda; coordination and promotion of research and technology

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development; facilitating technology transfer and commercialization; administering the innovations and inventions awards and funding of STI activities.

Sources of technologies in Tanzania are through importation; development by local R&D institutions and private companies and through indigenous systems of innovation that is through adaptation and practice. Technology transfers through clusters and incubators are still at infantile stage. And the links between, innovation (knowledge generation) with business communities are still weak.

One of the challenges faced by our STI system is lack of National Intellectual Property Rights (IPR) Policy and low IPR awareness among our researchers, technology developers and innovators. That IP can be traded like any other commodity. On average, the annual application for patent is about 30 patents per year including both local and international applications, which is very low by international standards. Currently, there are about 266 registered patents by local Tanzanians. This low response, could among other factors be linked to the low human resource capacity in our engineering based R&D Institutions (Table 3).

Table 3. Human resources capacity for selected R&D Institutions (June 2010)

S/No. R&D Institution PhD. MSc. BSc. Engineering Based 1. TIRDO 5 15 13 2. NHBRA 2 10 15 3. CAMARTEC 1 5 8 4. TATC - 10 10 5. TEMDO - 4 8 6. SIDO - 5 20 Other 7. NIMR 21 82 70 8. TAWIRI 9 11 1 9. ARI-MIKOCHENI 8 12 5 10. TFNC 7 35 29 11. ARI-ILONGA 7 11 5

Participation of the Private Sector in Promoting STI

Low level of technology development though innovation and acquisition coupled with lack of venture capital, has led to most Tanzanians with the need to make a living turn to small entrepreneurial activities in the informal sector (it is estimated that there are

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about 2 million informal businesses worth over 29 billion USD in Tanzania). It is anticipated that with the enactment of the PPP Policy (2009) with several incentive packages, most businesses will be formalized and supported.

In Tanzania, our R&D institution are struggling in development of new innovations, which are sometimes not demand driven or they already exist in public domains. The use of reverse engineering and technology adaptation could be a better approach to shorten the development time and put more efforts in further developments and building of supporting SME’s for sustainability and dissemination (Figure 4). The role of Private sector participation is very much needed to alleviate technology assimilation deficiencies in capacity and capability.

Research and Technology Development: Status: No large firms to do R&D R&D

Design and Engineering: REVERSE Status: Low capability & capacity ENGINEERING

SME’s: TECHNOLOGY Status: Low skills and poor infrastructure ACQUISITION &

ADAPTION

Informal Sector and Small firms: Status: No financial support and technology support. TECHNOLOGY USE

Figure 4. Capability of technology assimilation in Tanzania

Innovation Systems -Incubators and Clusters

Our continued dependency on natural resource-based industries has resulted in a slower adoption of knowledge intensive industries. It is now that the Government and businesses are realizing the need for providing better economic environment to support knowledge-intensive investments, mostly driven by a skilled workforce and new technologies.

The concept of incubators is relatively new in Tanzania. However, there are efforts to establish incubators in the country. The SME Policy (2003) creates an enabling environment for SMEs evolution and growth. The policy sees the development of business/technology incubators as one of the ways to encourage enterprise creation, development and growth. The incubators are seen as a strategy to diffuse technically

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feasible and economically viable technologies. They are also seen as a channel to provide the support services to SMEs.

Under the leadership of the SME section in the Ministry of Industry, Trade and Marketing (MIT&M) a National Business Technology Incubator programme has been developed. The champions being the College of Engineering and Technology (CoET) through its Technology Development and Transfer Centre (TDTC)14-16 the University of Dar es Salaam Entrepreneurship Centre (UDEC); The Small Industries Development Organization (SIDO; and the SME section in the MIT&M.

The CoET is implementing pilot incubators to support agro-processing for value chain addition and products diversification. The Local Government and entrepreneurs are all involved in these pilot incubators. However, lack of innovative ideas for pre-incubation, lack management skills for running incubators, poor participation of the business community, inexperienced trainers and mentors and inadequate infrastructure are among the challenges faced by these pilot incubators.

CONCLUSION

The role of Triple Helix in promoting sustainable STI for sustainable social and economic development is very evident. New spin-off companies resulting in job creation and new innovations leading to new products and processes, all require a well articulated STI system with adequate skilled HR, infrastructure and financing. Tanzania sees this as a new opportunity in promoting homegrown innovations which are competitive and knowledge driven.

NOMENCLATURE

CAMARTEC - Centre for Agricultural Mechanization and Rural Technology CDTT - Centre for the Development and Transfer of Technology CoET - College of Engineering and Technology COSTECH - Tanzania Commission for Science and Technology NARST - National Award for Research in Science and Technology NIMR - National Institute for Medical Reserach STI - Science, Technology and Innovation SIDO - Small Industries Development Organization TATC - Tanzania Automobile Technology Centre TDTC - Technology Development and Transfer Centre TEMDO - Tanzania Engineering and Manufacturing Development Organization TIC - Tanzania Investment Centre TIRDO - Tanzania Industrial Research Development Organization

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REFERENCES

1. SIDO,(2006)“Small Industries Development Organization” at http://www.tanzania.go.tz/sido.htm. 2. SME Competitiveness Facility (SCF) (?) “Eligibility and Selection Criteria” Brochure. 3. Tanzania Investment Centre (TIC) (2006) “Investors Guide” at http://www.tic.co.tz/IPA_Information.asp?hdnGroupID=28&hdnLevelID=2. 4. Tanzania, United Republic of (2006) “Country Profile” at http://www.tanzania.go.tz/ministriesandinstitutions.htlm. 5. Tanzania, United Republic of (2006) “Economy” at http://www.tanzania.go.tz/ministriesandinstitutions.htlm. 6. Tanzania, United Republic of (2006) “Industries” at http://www.tanzania.go.tz/ministriesandinstitutions.htlm. 7. Tanzania, United Republic of (2006) “Human Resources” at http://www.tanzania.go.tz/ministriesandinstitutions.htlm. 8. Tanzania, United Republic of (2006) “Energy” at http://www.tanzania.go.tz/ministriesandinstitutions.htlm. 9. Tanzania, United Republic of (2006) “Water” at http://www.tanzania.go.tz/ministriesandinstitutions.htlm. 10. Tanzania, United Republic of (2006) “Communications” at http://www.tanzania.go.tz/ministriesandinstitutions.htlm. 11. Tanzania, United Republic of (2006) “Transport” at http://www.tanzania.go.tz/ministriesandinstitutions.htlm. 12. Tanzania, United Republic of (2006) “Science and Technology” at http://www.tanzania.go.tz/ministriesandinstitutions.htlm 13. Tanzania, United Republic of (2000) “The Tanzania Commission for Science and Technology Act No. 7 of 1986 (Revised)” Dar es Salaam: Tanzania Government Printer. 14. Kimambo, C. and Nyichomba, B. (2004) “The Business/technology Incubation Project of the University of Dar es Salaam” Proceeding of the National Stakeholders Workshop of an Innovation Systems and Clusters Programme in Tanzania, January 24-25, 2005, Bagamoyo, Tanzania. 15. Musonda, F. (2004) “The Potential of Clusters in the Growth and Development of MSEs in Tanzania” Proceeding of the Regional Conference on Innovation Systems and Innovative Clusters in Africa, February 18-20, 2004, Bagamoyo, Tanzania. 16. Mwamila, B. Katalambula, H. (2004) “University-Industry Linkage: The Case of Prospective College of Engineering and Technology at the University of Dar es Salaam” Proceeding of the Regional Conference on Innovation Systems and Innovative Clusters in Africa, February 18-20, 2004, Bagamoyo, Tanzania.

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Lecture 4-13. Thailand

Role of Government, Academia and Business in Promoting Science, Technology and Innovation in Thailand

U-sarat Bunnag Senior Director, Thailand Science Park, Thailand [email protected]

Thailand Science Park (TSP) is the first Science and Technology Park of Thailand established to be a key infrastructure to support the development of technology intensive business. Founded in 2002, the park, under the management of National Science and Technology Development Agency (NSTDA) is aimed at promoting Science, Technology and Innovation and stimulating research and development activities in private sector.

With well-equipped physical and knowledge infrastructure that encourages companies to innovate technological-based products and services, corporate tenants can utilize the park’s facilities to develop innovations to serve the market much faster and, importantly, with cost-efficiency. The Thailand Science Park also acts as a gateway to access to R&D Network, high quality knowledge infrastructures, Services and Incentives and Capital.

ACCESS TO R&D NETWORK Located in Pathum Thani province, TSP is surrounded by well-known universities including the Asian Institute of Technology; Thammasat University; and the Sirindhorn International Institute of Technology and 5 industrial estates. TSP houses NSTDA’s

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four national research centers, i.e. National Center for Genetic Engineering and Biotechnology (BIOTEC), National Metal AND materials Technology Center (MTEC), National Electronics and Computer Technology Center (NECTEC) and National Nanotechnology Center (NANOTEC). This proximity provides the opportunity for corporate tenants to gain access to highly-skilled personnel including 1,600 full-time NSTDA researchers, of which around 400 are Ph.D. scientists. Apart from research units in Thailand Science Park, national research centers have satellite research units in Universities all over the country.

The most important mission of TSP is to promote innovation and R&D activities in the private sector and to develop a critical mass of skilled R&D manpower for the country. TSP encourages Model of Modern Innovative Process – where knowledge creation takes place through collaboration among innovating firms, universities, and research institutes. One forth of the tenants’ R&D projects currently is developed under this model. The customer network development program provides various activities to facilitate partnership among Government, Academia and Business sector. The example of activities is as follows; 1. Monthly visit by The Federation of Thai Industries The visit is tailor-made by industrial sector so that we can gather researchers, academia, tenants and business group who have similar interest in the same forum. The 1 day program comprise of short technical sharing /update, follow by 3-4 Lab visits. After 6 month operation, we have reached 295 participants from 180 companies/organizations. 7 collaborative projects founded from this activities. 2. Executive Club @TSP This is an informal get together among executives of companies and research institutions in the park. The aim is to create interpersonal networking paving the ways for future business opportunities and partnership. 3. Series of Talks and Open houses by companies or institutions in the park On rotational basis, we provide opportunities for our members to present their companies and activities, enabling all members to understand each other’s businesses and discuss areas of collaborations.

ACCESS TO HIGH QUALITY KNOWLEDGE INFRASTRUCTURE

TSP offer advanced facilities such as superb R&D and testing equipments and business space. Tenant can share use of advance labs and equipments in the 4 National Research Centers. Other physical infrastructure includes Multi-tenant Buildings for rent, High bandwidth connectivity for internet and networking and video conference, Conference/Exhibition/Training Centers, Pilot plants, Green house and 8 pieces of land for large companies and multi-national corporations who can construct their own R&D facilities. The hazardous waste treatment is aligned with international practice and regularly monitored. With these excellent infrastructure, cost of space rental plus central facility fee is very low i.e; $10 per sq.m.

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Apart from physical infrastructure, the park provides easy access to technological knowledge and R&D database from electronic library for new idea development and innovative inspiration.

ACCESS TO SERVICES AND INCENTIVES In addition to advanced facilities and business space, TSP offers a full range of value- added services targeted at technology intensive companies.

• - Technology & Technical Services we conduct more than 400 training & Seminar on Science & Technology related issues each year. Companies can also do contract research and joint research with National research centers. The technical service covers licensing services and testing/Analytical service as well. In the case that companies need human resources for R&D , we can help recruit qualified personnel and provide specialist database.

‐ Business and Privileges Services NSTDA has Technology Licencing Office to provide Intellectual Property Service and business matching upon companies’ needs. The company located in Thailand Science Park will receive maximum incentives from The board of Investment ( BOI ) i.e; Corporate Income Tax Exemption for 8 Years plus 50% Corp. Income Tax Reduction for 5 more Years after Tax Exemption Period Ends. Import Tax exemption for machineries and Work Permit and Visa Facilitation for Foreign Specialists and Researchers are also in the package of BOI privileges. Companies located outside TSP and do not receive BOI privileges can have an option from Revenue Department such as 200% Tax Deduction for R&D Expense and accelerated Depreciation Rate for R&D Machineries and Equipments. Till now NSTDA has supported more than 2,000 companies of which more than 1,600 companies received technical experts support, more than $1,200 million received low interest rate loans for technology projects, more than 500 projects received 200% on R&D expenditure

ACCESS TO CAPITAL Corporate tenants are also offered financial supports from NSTDA in form of soft loan, research grants, and joint investment. These services is limited to Thai SMEs only

Corporate Tenants in Thailand Science Park

Phase 1 of TSP, with 140,000 square meters of built-up space, is fully occupied by the four national research centers and over 60 corporate tenants. Around 30 percent of the corporate tenants are international companies, from Japan, the United States, Germany and France. Distribution of tenants fall into the electronics & computer technology cluster (30%), metal and material technology cluster (25%) and biotechnology cluster (20%).

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As a hub for science and technology research, TSP is the preferred location for many world leading high-tech companies. International biotechnology companies who have regional research centers located within the park include Ecolab, Air Products, Alltech Biotechnology, Shiseido and Maine Biotechnology. Western Digital, a global leader in the development and manufacture of hard drives, uses TSP as a base to develop human resource for hard disk drive producers through Industry-Academic-Government linkage. PolyPlastics has set up an Asian Technical Solution Center for engineering plastics to support their customers in the region. TUV SUD PSB supports science and technology companies through product testing, inspection and certification services. These corporate tenants hire a combined workforce of over 500 skilled workers, of which 60% are involved directly in R&D. Together, these companies contribute an approximate US$100 million to the economy.

Thailand Science Park Phase II To serve the expansion of technology intensive business, TSP plans to open Thailand Science Park Phase II, Innovation Cluster II (INC 2), in December 2011. The new phase is built upon a conducive environment to encourage Government, Academia and Business to live, work and play together to develop Science and Technology innovations Thailand Science Park Phase II comprises 4 inter-connected towers with a total floor area of 127,000sq.m. The first-rate infrastructure of TSP Phase II is designed to create a conducive environment for technology companies and their talented people. The concept of “Work-Life Integration” is at the heart of TSP Phase II’s design and it is very adaptive to the ever-changing needs of today’s knowledge workforce. The 4 buildings are interconnected by walkways on every floor. Numerous green spaces have also been created throughout the buildings. These and other enhancements have been made to facilitate interactions and encourage networking among the occupants, so as to promote the exchange of ideas across various disciplines and collaborations among different groups.

The INC 2 provides its R&D-oriented tenants with a comprehensive suite of business facilities and a superb working environment. The modular design of the four towers makes it easy to accommodate the different needs of R&D intensive companies.

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Laboratory spaces in INC 2 are constructed to meet the specific research requirements of individual tenants. For example, there are designated areas for laboratories requiring vibration control and there are specific areas at the base of the towers suitable for setting up equipment requiring floor loading allowance of up to 2,000 kg/sq m. Furthermore, corporate tenants can gain access to advanced laboratories and use cutting-edge equipment from the national research centers co- located within INC 2 to conduct their research and development activities.

NSTDA believes that the expansion of the TSP will accelerate the pace of new innovation development and strengthen collaborations among the government sector, private sector and research institutions, hence stimulate and drive private sector research and development activities, which in turn will contribute towards Thailand’s goal of becoming a knowledge-based economy.

With this enlargement, the park will be the largest fully-integrated research and development hub in Thailand. Role of Government, Academia and Business in Promoting Science, Technology and Innovation will be highly strengthened and more coordinated once INC2 is up and running.

The Examples of Government, Academia and Business working model in Promoting Science, Technology and Innovation in Thailand

Example 1: Science Park Model

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Example 2: Hard Disc Drive Cluster

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Example 3: Sugar Industrial Network

Key Players in Promoting Science, Technology and Innovation in Thailand

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