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Universities and Public Research Institutions 91 As Drivers of Economic Development in Asia John A Public Disclosure Authorized DIRECTIONS IN DEVELOPMENT 38333 Public Disclosure Authorized Human Development How Universities Promote Economic Growth Editors Shahid Yusuf and Kaoru Nabeshima Public Disclosure Authorized Public Disclosure Authorized How Universities Promote Economic Growth How Universities Promote Economic Growth Editors Shahid Yusuf Kaoru Nabeshima © 2007 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: [email protected] All rights reserved 1 2 3 4 5 10 09 08 07 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The fi ndings, interpretations, and conclusions expressed in this volume do not necessarily refl ect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be ad- dressed to the Offi ce of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. ISBN-10: 0-8213-6751-X ISBN-13: 978-0-8213-6751-3 eISBN: 0-8213-6752-8 DOI: 10.1596/978-0-8213-6751-3 Library of Congress Cataloging-in-Publication Data has been applied for. Cover photo: The I. M. Pei–designed Landau Building on the MIT campus, photographed by Stuart Darsch Cover design: Naylor Design Contents Foreword xiii Preface xv List of Contributors xvii Acronyms and Abbreviations xxi Chapter 1 University-Industry Links: Policy Dimensions 1 Shahid Yusuf Innovation Matters More 4 Making Policies for University-Industry Links 7 National Policies 9 Subnational Policies 12 Corporate Policies 15 Policies of Universities 17 Conclusion 21 v vi Contents Part I UIL-Related Policies of National Governments 27 Chapter 2 Notes on UIL-Related Policies 29 of National Governments Luc Soete What Can We Learn from European National Policies with Respect to Research, Innovation, and UILs? 30 A Small, Highly Developed, Postindustrial Economy: The Dutch Case 39 Chapter 3 University-Industry Knowledge Transfer 47 in Switzerland Dominique Foray Three Levels of Policy Objectives 49 National Case: Switzerland 55 Conclusion 66 Chapter 4 University-Industry Links and U.K. Science 71 and Innovation Policy Alan Hughes The Diverse Nature of University-Industry Relationships 72 University-Industry Links: A U.S.-U.K. Comparison 74 U.K. SET Policy and University-Industry Links: A System Overview 80 Science and Innovation Investment Framework for 2004 to 2014 83 Conclusions 88 Chapter 5 Universities and Public Research Institutions 91 as Drivers of Economic Development in Asia John A. Mathews and Mei-Chih Hu The Latecomer Development Model 93 The Role of Universities and PRIs in Industrial Development in East Asia, 1950–2000 94 The Role of PRIs 97 From Imitation to Innovation 100 Contents vii The Emerging Role of Universities and PRIs in East Asia 104 Generalizability of the East Asian Experience 107 Chapter 6 UIL-Related Policies of National Governments: 111 A Synthetic View Rémi Barré Starting from the Microanalytical View: UILs in a Local but Complex Dynamic 111 Starting from the Macrosystemic View: UILs as a Paradoxical Component of the National Innovation System 112 UILs as a Driver of National Innovation Systems: The Importance of UIL Policy 113 Observations and Questions 114 Part II UIL-Related Policies 117 of Subnational Governments Chapter 7 The Role of Higher Education and New Forms 119 of Governance in Economic Development: The Ontario Case David A. Wolfe Policy Frameworks for the New Paradigm: Policy Delivery through New Forms of Governance 121 Best Practice: Learning Regions, Innovating Economies 125 Innovative Approaches to Economic Development in Ontario 126 Lessons for Policy: Principles, Institutions, Practices 134 Chapter 8 University-Industry Links in the Japanese 139 Context: Between Policies and Practice Juan Jiang, Yuko Harayama, and Shiro Abe A Brief History of the Japanese Technology Policy 140 Some Facts from the History of Tohoku University 143 viii Contents Government-Led UILs 145 Conclusion 147 Chapter 9 University-Industry Links: Regional Policies 151 and Initiatives in the United Kingdom Mike Wright Regional Development Agencies 152 Initiatives to Support Collaborative Innovation 152 Incubation Centers and Enterprise Hubs 153 Long-Term Research Partnerships 154 Innovation and Regional Fellowships to Facilitate Academic-Led Commercialization 154 Boundary-Spanning Schemes 155 Regional Funds for the Development of Spinoffs 155 Graduate and Researcher Education and Mobility 156 Education and Network Schemes 156 Effects of University-Industry Initiatives 157 Conclusions and Issues 159 Chapter 10 University-Industry Research Collaboration 163 and Technology Transfer in the United States since 1980 David C. Mowery Historical Overview 164 Industry Criticism of U.S. University Licensing Policies and Practices 176 Conclusion 178 Part III UIL-Related Policies of Universities 183 Chapter 11 Building Research Universities for Knowledge 185 Transfer: The Case of China Weiping Wu National and Local Initiatives to Promote University-Based Innovation in China 187 Building World-Class Universities and Industrial Links at Fudan and SJTU 191 Conclusion 194 Contents ix Chapter 12 Approaches to University-Industry Links: 199 The Case of the National University of Singapore Poh-Kam Wong Overview of Singapore’s Transition toward a Knowledge Economy 200 Effect of NUS’s Shift toward the Entrepreneurial University Model 204 Conclusion 207 Chapter 13 University-Industry Links and Enterprise 209 Creation in India: Some Strategic and Policy Issues Rakesh Basant and Pankaj Chandra Spinoffs from Educational Institutions in Two Indian Cities 210 R&D, Patenting, and Enterprise Creation: Two Profi les 212 Enterprise Creation at IITs: Two Models 214 The Incubation Experiment at the Indian Institute of Management, Ahmedabad 221 Some Concluding Remarks 223 Chapter 14 The Entrepreneurial University: 227 The Idea and Its Critics Elizabeth Garnsey A New Area of Research 228 U.S. Experience 230 Dissenting Voices from the Corporate Sector 232 Use of Disruptive Knowledge by Incumbent and New Entrant Companies 233 University Policy Responses in India, Singapore, and China 234 Conclusion 236 x Contents Part IV Corporate Strategies of Multinational 239 Corporations and Small and Medium Enterprises Chapter 15 Beyond Absorptive Capacity: 241 The Management of Technology for a Proactive Corporate Strategy toward University-Industry Links Fumio Kodama, Shingo Kano, and Jun Suzuki Modeling Proactive Absorption Mechanism: University-Industry Link Morphology 242 Technological Platform for Gatekeeping of New Sciences: TOTO Ltd. 246 Organizational Design for Inserting Intermediary Function: Takeda Chemical Industries 249 Conclusion: Proactiveness, Reciprocity, and Organizational Design 251 Chapter 16 Corporate Strategies in University-Industry 255 Links in France Jean-Jacques Duby Knowledge Transmission 258 Knowledge Production 259 Knowledge Sharing 261 The New Programmatic Law for Research 263 Chapter 17 Specifi c Approaches to University-Industry 265 Links of Selected Companies in Thailand and Their Relative Effectiveness Peter Brimble Six Case Studies of UILs in Thailand (plus IDEMA) 266 Lessons Learned and Best Practices 271 Indicators of Effectiveness of UILs 272 Index 275 Contents xi Figures 2.1 An Ideal Virtuous Innovation Growth Circle 35 2.2 National UILs in EU Countries: A Bird’s-Eye View 37 2.3 National UIL Strengths and Weaknesses 38 3.1 R&D Contracts by Destination and Receiving Institutions, 2004 57 3.2 Historical Evolution of Extramural R&D Expenditures 57 3.3 Multinational Enterprise R&D Inward (to the United States) and Outward (from the United States), 1999–2001 60 3.4 Percentage of Firms with Technology-Transfer Activities by Partners in Suisse Romande, 2004 63 3.5 Financial Development and Profi ts, 1996–2000 64 4.1 University-Industry Interaction Contributing to Innovation 75 4.2 University-Industry Interactions Regarded as Highly Important for Innovation 76 4.3 Use of Sources of Knowledge for Innovation 78 4.4 Sources of Knowledge for Innovation Regarded as Highly Important by Users of That Source 79 4.5 Funding and Performing SET in England: University-Industry Links in Context 81 5.1 National Systems of Economic Learning in East Asia 95 5.2 University Students per 10,000 Population, 1870–1920 96 5.3 University Students per 10,000 Population, 1950–2000 96 5.4 GDP
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