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Technology Transfer and Entrepreneurial Development through University Business Incubation Process in Thailand
Jarunee Wonglimpiyarat* Professor, College of Innovation, Thammasat University, Thailand.
The Thai case study on commercialization of technology il-lustrates the government attempts to support entrepreneurial development through the incubation programs. The Thai gov-ernment has introduced the university incubation program as a means to promote job creation, entrepreneurial develop-ment, innovation and economic growth. In attempts to transi-tion from lower middle income economy towards upper middle income economy, the Thai government has enhanced the capacity for innovation through the use of use business and technology incubators. With the economic growth rate of 5 percent per year and one of the worlds fastest growing country, the case of Thailand would provide interesting theo-
retical and managerial implications to understand the strate-gies for commercialization of technology.
Accounting for the aspect of commercialization of technol-ogy, the Thailand entrepreneurial development experience il-lustrates the prospects of innovation government and innovation policies in technological upgrading. The overview of economic and innovation performance of Thailand is shown in . In 2012, Thailand was ranked 30th (out of 59 countries) according to the International Institute for Manage-ment Development (IMD) world competitiveness ranking and 38th (out of 144 countries) according to the World Economic Forum (WEF) Global Competitiveness Report.
The paper is organised as follows. Section 2 reviews the the-oretical frameworks on technology transfer and entrepreneur-ial development and the Triple Helix model. Section 3 provides the background of research universities and policies to sup-port university technology commercialization. Section 4 dis-cusses the research methodology and presents the research findings. The analyses of findings cover case studies of univer-sity business incubators (UBIs) and technology business incu-bators. The case studies of UBIs include three major universities in Thailand: Mahidol University, Chulalongkorn
*Correspondence to : Jarunee Wonglimpiyarat, Ph.DProfessor, College of Innovation, Thammasat University, Anekprasong 3 Bldg., Prachan Rd., Bangkok 10200, Thailand. E-mail : email@example.com
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This is an open-access article distributed under the terms of the Creative Commons Attri-bution Non-Commercial License(http://creativecommons.org/licenses/by-nc/3.0) which permits unrestricted noncommercial use, distribution, and reproduction in any medium, provided the original work is properly cited
Abstract : This study is concerned with the process of technology transfer and commercialization. It is focused on the entrepreneurial development through the university business incubation process of Thailand. The study analyzes the leading university business incubators (UBIs) as well as major science and technology incubators to understand the strategies for commercialization of technology. The analyses of results, based on the Triple Helix model, have shown that the incubation program is one of the major policy mechanisms to support innovation and suggested that UBIs should act as an intermediary between the spheres of university and industry to provide interactive linkages and promote effective utilization of university research. The empirical study provides theoretical and managerial implications on the government policies to support the entrepreneurial development, innovation development and diffusion.
Keywords: Commercialization of technology, Innovation commercialization, Entrepreneurial development, University business incubator (UBI)
ArticleWTR 2014;3:78-88 http://dx.doi.org/10.7165/wtr2014.3.2.78
78 2014 CopyrightWorld Technopolis Association
University and King Mongkuts University of Technology Thonburi (KMUTT) whereas the science and technology incu-bator cases include national incubation centres of National Science and Technology Agency (NSTDA) and National Inno-vation Agency (NIA). It also presents the multi-faceted discus-sions of policy issues with regard to the capacity of university technology transfer and commercialization. The analyses and discussions are based on the Triple Helix model emphasising the integration of three institutional spheres (university-in-dustry-government relations). Section 5 proposes the model of university technology commercialisation in Thailand. Sec-tion 6 concludes the paper by drawing lessons and insights
that can be used as policy guidelines for other developing economies in the process of technology transfer and commer-cialisation through the university incubation mechanism (uni-versity technology commercialisation).
2. THEORETICAL FRAMEWORK
2.1 Technology transfer and entrepreneurial develop-ment
Technology transfer is the process of transferring or exploit-ing knowledge and technologies to achieve a level of innova-
Table 1. Overview of economic and innovation performance of Thailand
Indicator Year Thailand
Population (million) 2012 69.5
GDP 2012 USD 366 billion
GDP growth (%) 20112012
IMD world competitiveness ranking 201020112012
IMD world competitiveness ranking Ranking in economic performance Ranking in government efficiency Ranking in business efficiency Ranking in infrastructure
- Ranking in scientific infrastructure - Ranking in technological infrastructure
WEF competitiveness ranking 201020112012
WEF competitiveness ranking Ranking in basic requirements Ranking in efficiency enhancers - Ranking in technological readiness Ranking in innovation and sophistication factors - Ranking in innovation
Knowledge Economy Index (KEI) Ranking KEI Index
Research and development (R&D) expenditure 2012 USD 740 million
% of R&D expenditure to GDP (approximate) 2012 0.24%
Proportion of R&D spending (public and private) 2012 60:40
Source: The authors design, based on the World Competitiveness Scoreboard (various years) by International Institute for Management Development (IMD), World Economic Forum (WEF) Global Competitiveness Report, World Bank, United Nations Conference on Trade and Development (UNCTAD)
Jarunee Wonglimpiyarat, WTR3(2):78
792014 CopyrightWorld Technopolis Association
demonstrates a schematic presentation of tech-nology incubator. The university business incubator provides services such as laboratories and equipment, management and technical support, legal advice and networkings which add value to incubating companies (OECD 1997, 2010). Given the high risks associated with the formation of new enter-prises, many governments attempt to use technology incuba-tor as a vehicle for linking technology, entrepreneurs, small and large firms and sources of capital for technology develop-ment and commercialisation (OECD 1997 ; Lofsten and Lin-delof 2005 ; McAdam and McAdam 2008 ; Wonglimpiyarat 2010).
tion diffusion (Rogers 2003; Wonglimpiyarat 2010). The conditions for technology transfer affect the development path of innovation commercialization. Most of the entrepre-neurship literature defines entrepreneurial development as a new business creation whereby the incubation programs can help achieve a higher rate of diffusion. The entrepreneurial development is recognized as an engine of economic growth. The process of technology transfer and entrepreneurial devel-opment also needs financial support, network support, gov-ernment support, market support (Livingston 2007; Zahra and Nambisan 2012).
To fill the gap between R&D and commercialization, the business incubator therefore plays an important role in entre-preneurial development. The university business incubators (UBIs) play an important role in transferring basic research or academic research from universities to industry. Business in-
cubator and technology incubator are a kind of infrastructure geared to support and nurture the development of small and medium-sized enterprises (SMEs) (Barrow 2001 ; Bllingtof and Ulhi 2005). Business incubator provides business assis-tance to firms in the early stages of development to increase firm survival rates (Bllingtof and Ulhi 2005 ; Bllingtof 2012). Business incubators typically provide office space, ad-ministrative support and mentoring services (Peters et al. 2004). Technology incubators are business incubators focus-ing on new companies with advanced technologies and often have the characteristics shown in . Generally, tech-nology incubators are known under various names such as innovation centres, science parks and technology centres (OECD 1997). The incubator resources could help young en-trepreneurial firms access new knowledge, expertise and in-dustrial networks (Barrow 2001; Rothschild and Darr 2005).
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Table 2. Characteristics of technology incubators
Host institution University
Technology transfer office Park facilities Incubator
Science and research parks x x o x x x o
Innovation centre o o x x o x o
Technology park x x x x x x x
Note: x = Essential feature of technology incubator o = Desirable feature of technology incubatorSource: The Working Group on Innovation and Technology P