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“Research Commercialization: The role of SMEs & International Organizations”
International Conference on
Promoting R&D in North Africa
15-17 July 2008, Rabat, Morocco
Vladimir Kozharnovich
Senior Industrial Development Officer
Investment & Technology Promotion Branch UNIDO
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Technology & the Economy
Economists agree that the creation and diffusion of technological knowledge is at the heart of economic growth
At least two-thirds of per capita economic growth is due to technology Technology provides the impetus for economic growth Technology-based economic development focuses on enhancing the
discovery, development, commercialization and adoption of technology Economic growth is the function of capital and labour, which is influenced
by technology Innovation will be the single most important factor in determining a
country’s success in the 21st century Over the next 6 years, products representing more than 70 percent of
manufacturers’ sales today will be obsolete due to changing customer demands and competitive offerings
The key to higher standards of living and job creation is the extent to which innovative ideas and technologies are embedded in services, products and manufacturing processes
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Key Determinants of the 21st Century
Knowledge is now recognized as the key to determining competitiveness in the 21st century, which emphasizes the role of information, technology and learning in economic performance.
A key feature in the 21st century is that economic development rests upon knowledge and its useful application.
Today’s most technologically advanced countries are truly knowledge-based. By creating new knowledge and its commercialization, they create millions of knowledge-related jobs and thus generate new wealth from their innovations.
The term of “knowledge-based economy” results from a fuller recognition of the role of knowledge and technology in economic and social development.
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Challenges and Opportunities of the 21st Century
• Markets are becoming increasingly global and knowledge-intensive.
• Industries and sectors are constantly being reshaped through these global forces and the knowledge push – even those which have been around for millennia, such as the agricultural, fishery and forestry sectors.
• Only by raising the knowledge capacity of firms, can we base their competitive advantage on providing best new products, processes and services in the world.
• This is why the true factor of competitiveness lies in our brains and in our creativity. It is “knowledge” in the broadest sense of the word.
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Challenges and Opportunities of the 21st Century
• The great challenge will be to use technology for growth and profitability. Controlling technology will be the competitive edge of the future.
• If a country is to play a substantive role in sustainable and competitive manufacturing in the future, its industry must become proactive in developing a strong self-sustaining innovation capacity to meet customized concepts for high value added sustainable use and production.
• Many important aspects of future manufacturing will also create pressure to change the established structures of industry.
• A further need is for a change in the format of science education to encourage acquisition of the necessary knowledge and skills.
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Challenges and Opportunities of the 21st Century
• Businesses must become more responsive to radical advances, adopting more flexible and intelligent systems for production and people management.
• In a world facing inevitable rises in resource costs, they must embrace the concept of sustainability, recycling and reuse.
• They will also be required to co-operate in the setting of objectives for sustainable manufacturing, and to support industry by establishing roadmaps with quantifiable objectives and developing more effective tools for the assessment of sustainability.
• With such solid government-research-industry collaboration, anticipative competence building and a strongly life-cycle-oriented production-consumption pattern could do much to fulfill the objective of making a country as being a world’s competitive knowledge-based economy.
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Trends in Science & Technology
• The continuing diffusion of information technology and new applications of biotechnology will be at the crest of the wave. IT will be the major building block for international commerce and for empowering non-state actors.
• The integration – or fusion – of continuing revolutions in information technology, biotechnology, materials science and nanotechnology will generate a dramatic increase in investment in technology, which will further stimulate innovation within the more advanced countries.
• Older technologies will continue lateral “sidewise development” into new markets and applications through 2015.
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Trends in Science & Technology
• Biotechnology will drive medical breakthroughs that will enable the world’s wealthiest people to improve their health and increase their longevity dramatically. At the same time, genetically modified crops will offer the potential to improve nutrition among the world’s one billion malnourished people.
• Breakthroughs in materials technology will generate widely available products that are multi-functional, environmentally safe, longer lasting, and easily adapted to particular consumer requirements.
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Failures of the Technology Market
Technology market is imperfect and it often violates the assumptions of the free market paradigm:
Externalities - technology research spillover exists (unless technologies are protected by patens or IPR measures)
Restricted competition - technology trades are restricted due to huge upfront investment and years of operation before a positive cash-flow
Asymmetry, incomplete or imperfect technology information - in spite of modern communication means
Use of technology requires development capabilities - both technical and organizational
Costly technology search High degree of risk and uncertainty in absorbing technologies
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Barriers to Technology Transfer
Lack of access to information on new technologies and innovations
Inadequate institutional infrastructure, management and marketing human skills
Organizational rigidities within the firms themselves
Limited access to finances
Regulatory constraints
Inefficient R&D institutes and disconnection from needs of industry
Inadequate human resources and mechanisms for their upgrading
Lack of resources, knowledge and capabilities within policy institutions
Low efficacy of government support schemes
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Needs in Industry/Research Partnerships
• SMEs are normally short of the existing R&D facilities due to high cost of research, whereas R&D institutes generally possess these in abundance.
• SMEs cannot manage all new technologies due to multidisciplinary nature of innovation projects and R&D institutes can provide this knowledge and competence.
• SMEs need an objective partner in monitoring technological advances, testing of new products, international standards, etc. enabling to manage the technological change in time so that to be competitive at the international market.
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UNIDO Technology Promotion Programme
National Innovation Systems
ComponentsNew and enabling technologies (bio-technology, ICT, new materials)Technology ForesightTechnologies for the PoorTechnology CentresTechnology ParksInvestment and Technology
Promoting enabling and new technologies to address critical social and economic problems for poverty reduction and achievement of MDGs
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National Innovation System
R&D
S&TStructure
Learning & Education
System ConformitySystem
FinancialSystem
BusinessOrganisations
Government
Firms
MarketPlace
ProductiveChains
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StrengtheningNational Innovation System
Process Level Needs Services Programmes
TechnologyDiffusion
GovernmentPolicies
StrategiesAction-plans
Advisory
Awareness building
TFTRM
Needs Assess.
Institutions Capacity
NetworkingSustainability
Capacity building Tech. PromotionLinks to market
ITCsTPs
Needs Assess.
Technology Transfer
EnterprisesKnowledgeKnow-howManagement
Partnership (ITPOs)Capacity building
TM
BAs Needs Assess.
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Technology Needs Assessment Manual and reporting software system
UNIDO Manual on Technology Transfer Negotiation and Training Kit
Training Package on Technology Management
Guidelines on Business Alliances
Guide on Joint Ventures
UNIDO BOT Guidelines
UNIDO’s Subcontracting System
Technology Related Tools & Methodologies
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A holistic approach
Skill Upgradatio
n
Market Access
ICT Application
Environment
Quality
Upgradation
Technology
Upgradation
Waste Minimizatio
n
Capacity Building
A holistic approach
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Global Forum ActivitiesResearch and Publications
Technology Trends Assessment Investment paper series UNIDO’s industrial investment perspectives Ranking of African countries investment attractiveness
Tools, Guidelines and Manuals COMFAR (environmental assessment) Technology Needs Assessment Technology Roadmapping High-Tech Park Guidelines
Conferences & Policy dialogue Technology Foresight/Roadmapping Management of Technology Afripanet
Networking ITCs, ITPOs, IPAs, SPXs, Exchange
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R&D Institutes: New Global Setting
• Increased financial, trade, investment and technology flows.
• Rapid and accelerating technological progress, including ICTs, biotechnology, new materials, electronics, robotics.
• New managerial and organizational systems.
• New international rules and regulations: trade, quality, environment, intellectual property rights.
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Present Performance of R&D Institutes
• Technology push and supply-driven approach• Absence of marketing mechanism• Largely disconnected from the needs of industry• Weak international linkages• Limited knowledge of international best practice to improve
competitiveness through technology upgrading and technology support services to industry
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Major Reasons For Revitalization of R&D Institutes: Challenges of Industry
• Global competition is getting fiercer • Cooperation and strategic alliances are now
essential • Flexibility is becoming increasingly necessary in
order to adjust to rapid technological pace and changing costumer demands
• Quality requirements are higher than ever
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Motivation for Encouraging Revitalization
• Seek out new sources of finance• Eestablish links with the productive sector and increase
industry expenditures through improved services to enterprises
• Exploit the centres’ S&T capabilities on the national and international stage
• Upgrade the performance and international competitiveness• Strengthen S&T infrastructure & improve networking
capabilities
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Types of Support Services
• Formulation of new vision and strategy• Development of new management tools• Advice and assistance in policy formulation• Development of funding mechanisms• Introduction of marketing and project management tools• Benchmarking and training
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Focus Areas in Specific Services
• Innovation mechanisms• S&T funding systems• Best practices in management & marketing• Networking & collaboration• Vision and strategy development• High level policy advice
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• The process starts with a diagnosis of selected R&D institutes followed by the formulation of a joint with industry vision and business plan for technology promotion and provision of technical support services to industry.
• The implementation of strategies on commercialization of new technologies and innovations by industries and their support institutions are at the core of the process.
• The government policies focus on key elements of the innovation and learning support system: global business linkages, development of skills, incentives, technological efforts, entrepreneurship, SMEs and infrastructure.
• Joint programmes with focus on strengthening the relations between the support system and industry, including linkages with external knowledge partners and business and between research and the education institutions.
Strategy Process
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Recommendations for Improving Performance
• Develop vision and strategy based on rapidly changing economic environment
• Improve and adjust organizational structure & strengthen management system
• Design funding mechanism • Apply best international marketing practices• Implement project management system• Undertake market needs analysis• Improve negotiation skills
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ITP: Strengthening Research – Industry Links(Revitalization of R&D Institutes)
R&DInstitutes
IntroduceNew Services
VisionLeadership
OrganizationalRestructuring
AdoptBest Practice
CulturalTransformation
R&DInstitutes
Business ProcessEngineering
BenchmarkingAdopt BestStrategies
Become a LearningOrganization
IT SystemsQuality
ManagementManagement
Support ServicesInnovation
ManagementNetworking Fund Raising
Adapting and responding tothe external environment.
Legal,technological, environmental, political,regional and national institutions,
commercial,financial,
international,global
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ITP: Strengthening Research – Industry Links (Revitalization of R&D Institutes)
R&DInstitutes
IPTServices
New Vision& Leadership
OrganizationalRestructuring
AdoptBest Practice
CulturalTransformation
Business ProcessEngineering
Benchmarking
Adopt BestStrategies
Become a Learning
Organization
IT Systems
QualityManagement
Management ofSupp. Services
InnovationManagement
Networking
Fund RaisingNew Services& Activities
ActionsApproaches
Leading change processes -towards revitalisation
ITP as
facilitator
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The Role of International Organizationsin Technology Cooperation
Ensure transparency Provide technology options Ensure independent evaluation and selection of
right technologies Provide support services through UNIDO tools and
methodologies Strengthen trust between technology owners and
recipients Decrease financial risks in the transfer of technology Develop multiple partnerships for sustainability
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UNIDO Experiences and Instruments
19 Investment & Technology Promotion Offices (ITPO)
9 International Technology Centers (ITC) 48 Subcontracting and Partnership Exchange (SPX)
Offices in 28 countries 34 National Cleaner Production Centres Tools and methodologies, including software, for:
Investment & technology promotionTechnology transferTechnology needs assessmentEntrepreneurship development
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INTERNATIONAL TECHNOLOGY CENTRES (Ongoing Projects)
International Centre for Science and High Technology (ICS, Trieste, Italy) International Centre for Advancement of Manufacturing Technology
(ICAMT, Bangalore, India) International Centre for Small Hydro Power (ICSHP, Huanzhou, China) International Centre for Promotion and Transfer of Solar Energy (ISEC,
Lanzhou, China) International Centre of Hydrogen Energy Technology (ICHET, Istanbul,
Turkey) UNIDO-Shanghai International IT Technology Promotion Centre
(Shanghai, China) UNIDO-Shenzhen Environment Technology Promotion Centre (Shenzhen,
China) International Centre for Materials Technology Promotion (ICM, Beijing,
China) Russia-Brazil Centre for Technological Cooperation
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Russia-Brazil Centre for Technological Cooperation: Results
The Centre transferred the technology allowing to prepare geophysics airborne surveys based on use of gravimetry, gamma-spectrometry and magnetometry for exploration of oil and gas resources. The project allowed to:
Enable the Brazilian institutions develop a technology cooperation projects with relevant Russian institutions and enterprises
Facilitate the technology transfer process Deploy the technologies in Brazil through:
Creation of a national company Transfer and installment of equipment On-job training of around 120 technicians Preparation of guidelines for operation and maintenance of equipment
Reduce the risk of investment and stabilize the funding process Ensure the high quality of services Increase the trust between the partners Develop new technology transfer project proposals for future cooperation
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Future of Technology Cooperation:Goal & Objectives
Goal: To enhance international cooperation in technology
commercialization and transfer between the countries for the sustained growth and partnership
Objectives: Act as a catalyst for knowledge-based development Increase capacities of science and technology institutions on
innovation and technology commercialization Effective and efficient utilization of available science &
technology by industry Increase productivity and industrial competitiveness of
enterprises through international technology exchange Increase trade and investment flows between the countries
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International Programme for Technology Commercialization & Transfer: Functions
Assessment of needs of industry in new technologies and technology markets
Diagnostics of technology sources, institutions and transfer systems
Technology valuation and Intellectual property Mobilization of funds Business plan development Catalyze, support and facilitate concrete
UNIDO programmes Capacity building programmes for technology
commercialization and transfer Technology intermediary and technical
support services Development of technology inventory,
database and networks Advice on technology development policy
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Expected Response from the Business Community
Access to technology resources Availability of expertise Provision of information on technologies needed Confirmation of technology ownership Identification of transparent conditions for technology
transfer Support in access to financial resources
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Preconditions for Success
Political support & endorsement from the country leaderships
Technological cooperation as agenda of high-level political dialogue in participating countries
Consensus on Technology Partnerships
Active involvement of business & scientific communities
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Vladimir KozharnovichSenior Industrial Development OfficerInvestment and Technology Promotion BranchUNIDOPhone: +43-1-26026 3720/3702Fax: +43-1-26026 6870e-mail: [email protected]