vladimir by dandanhuanghuang



“Research Commercialization: The role of SMEs &
          International Organizations”

             International Conference
           Promoting R&D in North Africa

            15-17 July 2008, Rabat, Morocco

                    Vladimir Kozharnovich
                    Senior Industrial Development Officer
                    Investment & Technology Promotion Branch

          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

      Key Determinants of the 21st
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

  Challenges and Opportunities of
          the 21st Century
• Markets are becoming increasingly global and knowledge-
• 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.

    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
• A further need is for a change in the format of science
  education to encourage acquisition of the necessary
  knowledge and skills.

    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
• 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.

   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

 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.

    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

     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
Low efficacy of government support schemes

    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.

UNIDO Technology Promotion Programme

                             New and enabling
                             technologies (bio-
     National                technology, ICT, new
                             Technology Foresight
     Systems                 Technologies for the Poor
                             Technology Centres
                             Technology Parks
                             Investment and Technology
 Promoting enabling and new technologies to address critical
 social and economic problems for poverty reduction and
 achievement of MDGs

   National Innovation System

            R&D         Government

                   Firms              Business
   S&T                              Organisations
            Productive Market
              Chains   Place

   Learning &                      System

           National Innovation System

 Process         Level           Needs             Services          Programmes
                                Policies          Advisory                TF
             Government        Strategies     Awareness building         TRM
Technology                    Action-plans                           Needs Assess.
                               Capacity        Capacity building         ITCs
              Institutions    Networking       Tech. Promotion            TPs
                             Sustainability     Links to market      Needs Assess.

                             Knowledge        Partnership (ITPOs)        TM
Technology   Enterprises     Know-how         Capacity building          BAs
                             Management                              Needs Assess.

     Technology Related Tools &
   Technology Needs Assessment Manual and reporting software

   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

  A holistic approach
Market Access

                 A holistic                ICT
                 approach               Application

Environment                        Minimization

      Global Forum Activities
Research 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
    ITCs, ITPOs, IPAs, SPXs, Exchange

R&D Institutes: New Global Setting

• Increased financial, trade, investment and technology
• 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.

      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

     Major Reasons For Revitalization of R&D
        Institutes: Challenges of Industry

• Global competition is getting fiercer
• Cooperation and strategic alliances are now
• Flexibility is becoming increasingly necessary in
  order to adjust to rapid technological pace and
  changing costumer demands
• Quality requirements are higher than ever

          Motivation for Encouraging

• Seek out new sources of finance
• Eestablish links with the productive sector and increase
  industry expenditures through improved services to
• Exploit the centres’ S&T capabilities on the national and
  international stage
• Upgrade the performance and international competitiveness
• Strengthen S&T infrastructure & improve networking

          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

 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

                   Strategy Process
•   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.

       Recommendations for Improving

• 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

         ITP:        Strengthening Research – Industry Links
                     (Revitalization of R&D Institutes)

      Vision                      Cultural                            Adapting and responding to
                                                                       the external environment.
    Leadership                 Transformation                 Legal,technological, environmental, political,
                                                                   regional and national institutions,
  Business Process
                                    Institutes                            Adopt
                                                                       Best Practice

     New Services                                        Adopt Best                 Become a Learning
                                                         Strategies                   Organization

                  Quality      Management        Innovation
IT Systems                                                         Networking                 Fund Raising
                 Management   Support Services   Management

         ITP:     Strengthening Research – Industry Links
                  (Revitalization of R&D Institutes)
                Approaches                                    IPT
                                        Actions             Services

                   Cultural             New Vision          IT Systems
                Transformation         & Leadership

  R&D                                 Business Process      Quality
                                        Engineering        Management
Institutes           Organizational
                     Restructuring                        Management of
                                                          Supp. Services
                                        Adopt Best         Innovation
                     Adopt              Strategies         Management
     as           Best Practice          Become
 facilitator                            a Learning         Networking
     Leading change processes
      -towards revitalisation          New Services       Fund Raising
                                       & Activities

The Role of International Organizations
     in Technology Cooperation

  Ensure transparency
  Provide technology options
  Ensure independent evaluation and selection of
     right technologies
    Provide support services through UNIDO tools and
    Strengthen trust between technology owners and
    Decrease financial risks in the transfer of technology
    Develop multiple partnerships for sustainability

      Experiences and Instruments

 19 Investment & Technology Promotion Offices
   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 promotion
      Technology transfer
      Technology needs assessment
      Entrepreneurship development

       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,
   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,
   Russia-Brazil Centre for Technological Cooperation

         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

      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

     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

      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
 Support in access to financial resources

          Preconditions for Success

 Political support & endorsement
  from the country leaderships
 Technological cooperation as
  agenda of high-level political
  dialogue in participating
 Consensus on Technology
 Active involvement of business
  & scientific communities

Vladimir Kozharnovich
Senior Industrial Development Officer
Investment and Technology Promotion Branch
Phone: +43-1-26026 3720/3702
Fax:      +43-1-26026 6870
e-mail: V.Kozharnovich@unido.org

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