Tasnim Sultana, Jamal Nazrul Islam, Haradhan Kumar Mohajan, Rajib Datta, Int. J. Eco. Res., 2012, so, v3i5, ISSN: 2229-6158 ORGANIZATIONAL MODELS IN UNIVERSITY-INDUSTRY COLLABORATION: INTERNATIONAL PERSPECTIVE Tasnim Sultana Assistant Professor, Department of Marketing, Premier University, Chittagong, Bangladesh, E-mail: [email protected] Jamal Nazrul Islam Emeritus Professor, Research Centre for Mathematical and Physical Sciences, University of Chittagong, Bangladesh Haradhan Kumar Mohajan * Premier University, Chittagong, Bangladesh, E-mail: [email protected] Rajib Datta Department of Finance, Faculty of Business Studies, Premier University, Chittagong, Bangladesh. Cell: +8801819895389, E-mail: [email protected] * Corresponding author IJER | Sep - Oct 2012 Available [email protected] 1 Tasnim Sultana, Jamal Nazrul Islam, Haradhan Kumar Mohajan, Rajib Datta, Int. J. Eco. Res., 2012, so, v3i5, ISSN: 2229-6158 ORGANIZATIONAL MODELS IN UNIVERSITY-INDUSTRY COLLABORATION: INTERNATIONAL PERSPECTIVE Tasnim Sultana Assistant Professor, Department of Marketing, Premier University, Chittagong, Bangladesh, E-mail: [email protected] Jamal Nazrul Islam Emeritus Professor, Research Centre for Mathematical and Physical Sciences, University of Chittagong, Bangladesh Haradhan Kumar Mohajan Premier University, Chittagong, Bangladesh, E-mail: [email protected] Rajib Datta Department of Finance, Faculty of Business Studies, Premier University, Chittagong, Bangladesh. Cell: +8801819895389, E-mail: [email protected] Abstract This paper aims at developing a taxonomy, which uses both institutional and functional criteria. Departing from the assumption that there are several evolutionary stages in the development of university-industry collaboration, which embrace unstructured to fully structured and complex modes, the paper identifies five stages: (i) ad hoc collaboration at an individual level, (ii) development of internal support structures, (iii) creation of autonomous support structures, (iv) setting up of individual enterprises and (v) national and transnational networking. These five development stages include organizational forms, such as Industrial Liaison Offices, University-Industry Research Centers, Trading Companies, Foundations, and, Affiliate programs and Consortia. Each of these organizational models is reviewed in terms of its objectives, functioning and predominance in different regions of the world. Without attempting to be exhaustive specific case examples are included from the African, Western European and Latin American countries. These case examples draw particular attention to some of the crucial management aspects in the development of university-industry collaboration. These lessons will refer to the choice of an appropriate organizational model. It will provide also some guidelines for the strategic and operational management of these relations. Key Words: Collaboration, Organizational model, University, Industry. 1. INTRODUCTION can be divided into six categories as follows The relations of business schools with their (Wei et al. 2011): socioeconomic environment have become a Research in inherent difference in topical issue in the literature on higher mission and objective focuses education over the past twenty years or so. directly on company issues Recently universities are receiving a single (Dierdonck and Debackere 1988, funding stream of Higher Education Ditzel 1998, Fassin 2000). Innovation Funding (HEIF) in terms of Research in the difference in direct funding, which creating supports a organization structure and policy wide range of business–university pays little attention to the firms that interaction and rewards success in commercialize inventions, but rather generating business income. As a result focuses on issues relating to the contribution of science and technology to university (Caroline and Jeannette business competitiveness is improving 2011). graduate enterprise and employability, and Research in differences of addressing specific business skills orientation philosophy and interests requirements (Wilson 2012). of individual researchers is The economic literature concerning beginning to receive attention university-to-industry knowledge transfer IJER | Sep - Oct 2012 Available [email protected] 2 Tasnim Sultana, Jamal Nazrul Islam, Haradhan Kumar Mohajan, Rajib Datta, Int. J. Eco. Res., 2012, so, v3i5, ISSN: 2229-6158 recently (Kathrin 2010, Waverly and improved interaction for the Emily 2011). development and adaptation of Research in effectiveness of degree programs, University-Industry arrange-ments improved employment prospects and mechanisms for collaboration for students, (Carayannis et al. 2000); supplemental income from Research in benefits and costs in the consulting, allowing academic staff process of University-Industry to improve their salaries, and collaboration (Geisler 1995, Siegel enhancement of the business and Waldman 2003). schools’ image as a contributor to Research in evaluation of the the economy. university-industry collaboration From the practical evidence it is proved that performance (Michael and Alok placements, internships and other work 2002, Timothy et al. 2007). experience of the university students in industries are extremely valuable to Likewise, this issue has moved high on the students, both in terms of their academic agenda of business school’s success. Some performance and their employability skills aspects in this regard are discussed here. (Driffield et al. 2011, Green 2011, Reddy and Moores 2006, Little and Harvey 2006, 1.1. Benefits of Business School-Industry National Council for Work Experience Collaboration for Business Schools (NCWE) 2003). At the present time, some benefits for business schools are seen as underlying 1.2. Determining Factors of Type of stronger collaboration with industry as Collaboration and Its Degree of Intensity follows: Most business schools worldwide have by opportunity to attract additional now some type of interaction with local, funds for initial teaching and national or multinational industry. The type research thereby increasing of interaction and its degree of intensity financial autonomy of business depends on many external and internal schools, especially if government factors for instance the existence of: core funding is tightly linked to . research capacity within the specific academic purposes, business school, cooperative research with . an industrial base involved in enterprises as a lever to attract ‘Research and Development’ (R & more public funds if there are D) activities, governmental project funds for . the existence of governmental collaborative research programs, policies, initiatives structures or acquisition or access to up-to-date programs to stimulate collaborative equipment, R & D, opportunities for faculty and . a tradition of interaction between students to become familiar with business school and industry, state-of-the-art industrial . an entrepreneurial culture within management systems and the higher education sector, and enhancement of their familiarity of . an academic reward system and the constraints of industry, incentives. IJER | Sep - Oct 2012 Available [email protected] 3 Tasnim Sultana, Jamal Nazrul Islam, Haradhan Kumar Mohajan, Rajib Datta, Int. J. Eco. Res., 2012, so, v3i5, ISSN: 2229-6158 unstructured to highly structured 2. OBJECTIVES OF THE STUDY organizational models can be distinguished: The primary objective of this paper is to o Informal collaboration. highlight the different models of university- o Setting up internal support industry collaboration. Specific objectives structures. are as follows: o Creating autonomous support a) To present the readers with a structures. continuum of organizational models o Setting up independent support encompassing both the least and structures. most structured. o National and transnational b) To explore the benefits of networking. ‘university-industry collaboration’. c) To study the feasibility of different 4.1. Informal Collaboration models of ‘university-industry The informal links of individual academics collaboration’. with enterprises have been and still current practice in higher education institutions. The 3. METHODOLOGY extent of such linkages depends mainly on The paper is based mainly on secondary the type and professional specialty of data. Helpful information from different institution. In many cases, informal magazines, and articles published in interactions with the productive sector different journals were abundantly used. represent an important means for individual Different models of university-industry researchers to upgrade their salaries. Higher collaboration have been studied. Some cases education institutions may benefit from this on these models have been presented to interaction because it reduces the risk of prepare this paper. brain drain for economic reasons. However, if there are no rules and control of the use of 4. ORGANIZATIONAL MODELS OF staff time, such informal links with industry COLLABORATION DEVELOPED IN can conflict with professional commitments, DIFFERENT COUNTRIES i.e., teaching or research. In North America and in several Western European countries university-industry Case 1: 20% Formula (Kelly 1992) relations have a long-standing tradition and 20% formula is applied by some Western they have developed into a multitude of European universities. Under this formula, a organizational models. In Latin America and staff member may, under certain