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Toward Better Intersectoral Collaboration

Toward Better Intersectoral Collaboration for the Technology Innovation and Knowledge Diffusion: Recent Korean Policy Framework. 2013. 7. Jaemin Park. College of Business Graduate School of Technology Management Konkuk University.

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Toward Better Intersectoral Collaboration

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  1. Toward Better Intersectoral Collaboration for the Technology Innovation and Knowledge Diffusion: Recent Korean Policy Framework 2013. 7. JaeminPark College of Business Graduate School of Technology Management Konkuk University

  2. The background of intersectoralcooperation promotion in Korea Contents Problems and weaknesses The strategy of promotion and core programs Main tasks and programs

  3. Ⅰ. The background of intersectoralcooperation promotion in Korea

  4. Ⅰ. The background of intersectoral cooperation promotion in Korea Experts point out that Korea needs to utilize cooperation among industry, university, and public research institute more effectively for leaping up to 'First Mover'. • The cooperation among industry-university-public is a pivotal factor which promotes open innovation and contributes to creation of new value. • It is an effective method which is able to contribute to exchange of knowledge, distribution of risk, and diffusion of technology. The policy paradigm needs to be changed toward promotion of voluntary cooperation among industry, university, and public research institutes apart from governmental leadership. • Despite of many governmental policies and funds invested by government, it is assessed that cooperation caused by voluntary needs is still poor. ※ The 68.5%(7 billion USD) of governmental R&D is seemingly a form ofcooperative research among industry, university, and public institute(2011). • In particular, it is still needed to raise technology licensing and commercialization

  5. Ⅱ. Problems and weaknesses

  6. Ⅱ. Problems and weaknesses 1 Lack of voluntary cooperation The investment on cooperation relies heavily on government supports than voluntary initiation. • Among R&D investment of enterprises, the fund on industry-university-public cooperation tends to be either stagnant or decreasing even though investment of government R&D has been expanding※ Among R&D investment of enterprises, the proportion invested in university had been decreasing from 2.7% in 2001 to 2.0% in 2011. • Enterprises maintain the network with universities mainly to acquire manpower in the future more than doing cooperative research itself.

  7. Ⅱ. Problems and Weaknesses 2 Poor knowledge and technology diffusion Licensing and commercialization of intellectual property is poor. • Even if enterprises participated, the outcome of national R&D cooperative research is not realized in business • Technology of universities and public research institutes has not been leading to industry • As R&D programs and commercialization programs have been administered separately, there is a big gap between development and utilization of technology • Compared to advanced countries, achievements from technology transfer is fairly in low level. • ※ The R&D productivity(= earning from technology transfer/R&D expenditure) of public research institute is 6.82% in US and 1.35% in Korea (Ministry of Knowledge Economy ; 2011). • The investment on technology commercialization (more or less than 1% of national R&D budget) has been tied-up even if national R&D budget has been growing by 7% annually in average.

  8. Ⅱ. Problems and Weaknesses 3 The personal and institutional inadequacy in technology transfer Lack of foundation and support for cooperation and knowledge diffusion • Although TLO has been growing up due to legal mandate, many of them face paltriness as limitation • Lack of experts who connect cooperation among industry-university-public sectors ※ In average, only 15% of the staffs in university TLO works full-time for cooperation; 65% plays mainly the role of supporting and managing projects.

  9. Ⅱ. Problems and Weaknesses 4 The poor personal exchange between industry and university Because of poor open research culture, the exchange of researchers among industry, university, and public institute is in low level • Even though researchers are circulating between universities and public labs, there is limited movement between public sectors (including universities/public labs) and ptrvatesector (i.e., enterprises)※ According to a survey on 39 major universities, less than one person per university spent sabbatical leave in enterprises (2011).

  10. Ⅱ. Problems and Weaknesses Excessive concentration of researchers toward universities and public institutes 5 High proportion of researchers has been concentrated in universities • Although Ph.D. holders are abundant, most of them are gathered in universities, public labs and large companies ※ The share of R&D expenditure used by universities was 10.1%. However, university sector holds 64.1% of Ph.D.s in Korea.※ The distribution of researchers in natural sciences and engineering majors shows • Korea(2011): 50.6% in universities, 28.4% in public institutes, 21% in enterprises (10.3% in SMEs) • US(2012): 43.6% in universities, 9.2% in government sector, 47.2% in enterprises (22.6% in SMEs)

  11. Ⅲ.The strategy of promotion and core programs

  12. Ⅲ. The strategy of promotion and core programs Diagnosis and Strategic Goal Open research culture and voluntary cooperate is needed to construct the system fostering circulation and exchanges of knowledge, technology and researchers • Three strategies and 10 core programs were identified

  13. Ⅲ. The strategy of promotion and core programs Fostering creative economy through open research culture and activation of cooperation Vision Activating voluntary cooperation among industry-university-public Introducing incentives to attract private enterprises Enlarge financial support on cooperative research through public institutes Introducing diverse commercialization models Vitalization of start-ups from universities and public institutes Strengthening comprehensive support throughout R&D-technology licensing-commercialization stages Strengthening competency of TLO(Technology Licensing Organization) Support personal exchange between enterprises and public sectors Dispatching researchers from public institutes to SMEs and activating flow of embodied knowledge Foster “research hubs” and attract enterprises’ participation 1. Activating voluntary cooperation among industry-university-public institutes Core programs Strategies 2. Promoting technology licensing and commercialization 3. Promote personal exchanges and mobility among sectors

  14. Ⅳ. Main tasks and programs

  15. Ⅳ. Main tasks and programs 1 Activating voluntary cooperation among industry-university-public institute TASK1 TASK2 Enlarge financial support on cooperative research through public institutes Activating practical cooperation among industry-university-public Introducing incentives to attract private enterprises ○ Induce public research institutes to spend larger portion of fund to be allocated to cooperative research with business and universities ○ More focused allocation on high performance projects ○ Derive areas that factually need cooperative research and support focal projects ○ Prompt organizing consortium among industry-university-public for large-scale projects ○ Raise tax deduction for R&D expenditures of enterprises ○ Inducing private R&D by enlarging incentive for cooperative research TASK3

  16. Ⅳ. Main tasks of core programs 2 Activating voluntary cooperation among industry-university-public institute Promoting technology transfer and commercialization TASK4 Vitalization of start-ups from universities and public institutes Introducing diverse commercialization models ○ (Model 1) Organizing/managing consortium to develop technology supporting SMEs - Licensing developed technology in the form of platform technology ○ (Model 2) Licensing technology through cooperation between university and public institutes - Cultivating prospective technologies by utilizing the strength of university and institute - Research institutes overtake technologies initially cultivated by universities through licensingand commercialization ○ (Model 3) Promoting R&D spin-offs - Creative Lab: establishes and administers the corporations outside universities that can commercialize the technology owned by universities ○ Supporting the university centers to induce more start-ups ○ Activating start-ups of public research institutes that owns prospective technology TASK5

  17. Ⅳ. Main tasks of core programs 2 Activating voluntary cooperation among industry-university-public institute Promoting technology transfer and commercialization TASK6 Strengthening comprehensive support throughout R&D-technologylicensing-commercialization stages Strengthening competency of university TLO(Technology Licensing Organization) ○ Supporting university TLOs for the provision of one-stop service ○ Extending reward for contributors of technology licensing in TLOs ※ The Ministry of Trade, Industry and Energy is to reward contributor of technology licensing with 10% of collected licensing fees as a form of royalty incentive. ○ Initiate R&D programs that eventually aim at commercialization ○ Giving comprehensive support in form of package throughout R&D stages - Activating multi-departmental co-planned R&D to comprehensively support the whole process from technology development to commercialization TASK7

  18. Ⅳ. Main tasks of core programs 3 Promote personal exchange among industry-university-public institutes TASK8 Innovative SME Support Programs (Ministry of Knowledge Economy, 12 Million USD in 2012) Candidates with doctoral or master degree are employed by public research institutes and dispatched to SMEs for three years for technology transfer and consultation TASK9 Dispatching researchers from public institutes to SMEsand activating flow of embodied knowledges Support personal exchange between enterprises and public sectors ○ Attract university researchers into business labs during sabbatical leaves ○ Allow multiple affiliation to allow long-term cooperative research ○ Expanding a dispatch of researchers in public institutes to SMEs - Using experience and technology of research institutes to support product development and commercialization

  19. Ⅳ. Main tasks of core programs 3 Promote personal exchange among industry-university-public institutes TASK10 Foster “research hubs” and attract enterprises’ participation ○ Organizing “research hubs” that is able to provide labs for cooperatively performingresearches in university and public research institutes ○ Promote practical instruction by utilizing technician and engineers as “industryprofessors” in the hub

  20. THANK YOU

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