Sample Letter Decline Invitation Letter by zxa28456

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									                                                   Industry/University
                                                      Cooperative
                                                    Research Centers



Who will join and who will
        decline?
An analysis of factors predicting a
firm’s decision to join a university-
     based industrial consortia

            Denis O. Gray, Ph.D.
             Drew Rivers, M.S.
  Psychology in the Public Interest Program
       North Carolina State University


                                              Page 1   IUCRC June 2006
Study Purpose
                                                       Industry/University
                                                          Cooperative
                                                        Research Centers

 • Help center directors and others understand
   which firm characteristics (sub-organizational
   and personal) and center marketing approaches
   have the biggest impact on a firm’s decision to
   join a center, so that the center can:
   – More clearly define the target market
   – Adjust the marketing approach
   – Structure the research program to optimize industry
     support
 • Add to the scholarly understanding of the
   factors that support and/or undermine
   cooperative research

                                                  Page 2   IUCRC June 2006
Study Plan
                                                   Industry/University
                                                      Cooperative
                                                    Research Centers


 1. Literature Review              Ongoing

 2. Assessment of marketing        Complete
    practices at NSF-
    supported cooperative
    research centers

 3. Qualitative interviews with    Wrapping up
    industry representatives:
    joiners & decliners

 4. Quantitative survey of         Design begins this
    industry representatives        Fall; assessment
                                    begins early next
                                    year
                                              Page 3   IUCRC June 2006
Membership Factors Model
                                                         Industry/University
                                                            Cooperative
                                                          Research Centers

 Factors at different levels influence membership decisions

           Economic &
          Industry-level


           Firm-level
          •Organization              Membership
            •Sub-org                  decision
           •Individual

           Center-level
            •Technical
          •Management
            •Marketing
             •Facilities
                                                    Page 4   IUCRC June 2006
Center Marketing Study-
Summary of findings                                                                Industry/University
                                                                                      Cooperative
                                                                                    Research Centers


    Relationship marketing model application

               Initiate &
                                        Develop                   Secure new
               establish
                                      relationships                members
             relationships




Key     •Director experience       •Involving other site        •Demonstrating
Factors •Recruiting budget         stakeholders                 technical relevance
        •Relationship networking   (consultant)                 •Future technology
        •Conference & tradeshow    •Face time                   transfer
           presentations           •Visiting the organization   •Justifying benefits
        •Involving other site      •Hosting visits to the       relative to costs
           stakeholders            center                       •Neutralizing IP
        •? Recruitment strategy                                 concerns
                                                                •Facilitating within firm
                                                                decision making

                                                                              Page 5   IUCRC June 2006
Membership Factors Model
                                                         Industry/University
                                                            Cooperative
                                                          Research Centers

 Factors at different levels influence membership decisions

           Economic &
          Industry-level


           Firm-level
          •Organization              Membership
            •Sub-org                  decision
           •Individual

           Center-level
            •Technical
          •Management
            •Marketing
             •Facilities
                                                    Page 6   IUCRC June 2006
Membership Decision Study
                                                                         Industry/University
                                                                            Cooperative
                                                                          Research Centers

 • Purpose:
    – To identify organizational, suborganizational and individual level
      factors that predict a firm’s decision to join/not join an IUCRC
        » Shed some light on industrial factors that might affect decision

 • Design
    – Known groups multiple case study: joiners vs. decliners
 • Approach
    – Solicit nominations of recent joiners/decliners from local
      directors
        » Target N = 10 joiners; 10 decliners
    – Unstructured Semi-structured taped telephone interviews
    – Multiple case study content analysis with pattern matching, etc.

                                                                    Page 7   IUCRC June 2006
Sample
                                                         Industry/University
                                                            Cooperative
                                                          Research Centers


 • Progress (23 contacts)
   – 10 completes (6 joined, 4 did not join)
   – 2 outright refusals
   – 7 no response to multiple attempts
   – 4 expressed interest but still unable to schedule
 • Target: 20 interviews




                                                    Page 8   IUCRC June 2006
Variable Domains
                                                        Industry/University
                                                           Cooperative
                                                         Research Centers


 • Topics covered in the interviews
   – Position and background
   – Responsibilities regarding external partnerships
   – Decision making process as relates to IUCRC
      » Initiation
      » Milestone events leading to decision
      » Roles/responsibilities of those involved
      » Decision criteria
   – Universities in overall R&D strategy



                                                   Page 9   IUCRC June 2006
Today’s Highlight
                                               Industry/University
                                                  Cooperative
                                                Research Centers


 • Preliminary thoughts on membership decision
   making process
 • Emergent IUCRC Business Model




                                         Page 10   IUCRC June 2006
Initial Sample
                                                                                                Industry/University
                                                                                                   Cooperative
                                                                                                 Research Centers


  Company                                Status                     Contact title
  Construction, small, private           Join                       Product group director
  Semiconductors, small,                 Join                       R&D Director
  international
  Paper, Large, public                   Join                       Manager of sponsored
                                                                    research
  Aerospace, large, public               Not join                   Director of Engineering

  Communications                         Not join                   Director-level, Systems
                                                                    engineering
  Chemicals, large, public               Not join                   Senior research fellow
  Textiles, start-up, private            Not join, but engaged      Owner and VP of R&D
                                         with Center
  Semiconductors, large, international   Joined, dropped out, did   Director-level, technical
                                         not return                 support function
  Specialty chemicals, large,            Joined, dropped out, did   Project leader, Performance
  international                          not return                 Materials
  Semiconductor, mid-size, public        Joined, dropped out,       IP Manager
                                         joined


                                                                                        Page 11    IUCRC June 2006
Network undercurrents
                                                                      Industry/University
                                                                         Cooperative
                                                                       Research Centers

 Dynamic interplay between
   universities and industry
 • Emergence of informal
   linkages
                                                                      Industry
 • Ongoing exchange               University/
                                                                        Gate-
                                  researcher
                                                                       keeper
 • Opportunities emerge
 • Evaluation
 • Acceptance or rejection of
   formal linkage                               Collaboration
 • Engage in formal partnership
 • Ongoing evaluation
 • Termination
 • Return to informal linkages

                                                                Page 12   IUCRC June 2006
Decision process: Initiation
                                                                            Industry/University
                                                                               Cooperative
                                                                             Research Centers

 • Contact (Director of Eng.) was familiar with Center through prior
   relationships at the University; Center Director approached contact and
   offered marketing materials (CD)
 • Contact (Owner, VP R&D) had a long standing relationship with the primary
   university; maintains working relationships will several universities.
 • US sales manager discovered the Center, informed contact (R&D Director).
   Contact did Internet research on Center, then invited Center to speak at
   their US office staff meeting.
 • Contact (Director of Tech Support) had existing relationships with Center
   universities and researchers. Contact perceived excellent opportunity.
 • Contact (Mgr of Sponsored Research) had existing relationships at the
   primary university, who recommended he investigate the Center.
 • Organization had R&D center near university. R&D manager had been
   networking with local university researchers, who extended invitation to join
   the Center.
 • Contact (Senior Researcher) and Center Director had met a scientific
   conferences; contact invited Director to speak at organization; Director later
   sent marketing materials to organization members.

                                                                      Page 13   IUCRC June 2006
Decision Process Overview
                                                                                 Industry/University
                                                                                    Cooperative
                                                                                  Research Centers

 • Gatekeeper establishes and                                             Financial
   maintains relationships with                                           approval
   universities and researchers                         Upper
                                                        level
                                                                         -Partnership review,
 • Potential projects or collaborations                Manager
                                                                         may assemble
   are identified and proposed to                                        team
                                                                         -Financial approval
   immediate manager                      Large firm

 • If accepted, then additional           Small firm
                                                        Next                  Corp-
   approvals may be required:                           level                 orate/
                                                       Manager                legal
     – Financial                          N
     – Legal
                                                                                 -Contract/
 • Return on investment is a key      N                                          Agreement
   criteria for most firms                              Gate-                    review
                                                       keeper                    -University
                                                                                 alliance
 • For smaller firms;                 N
     – No formal role
                                           N                     Environment scan,
     – No formal process                                         networking
                                                                 -Opportunity identification


                                                                           Page 14    IUCRC June 2006
Decision process: Milestones
                                                                                   Industry/University
                                                                                      Cooperative
                                                                                    Research Centers

 •   Contact reviews marketing material  Contact attends Center meeting  contact
     discusses Center with his manager  Contact convinces University Alliances
     Director to visit the Center  Legal Team evaluated membership agreement 
     Legal rejects agreement  contact pursues alternatives (Large aerospace firm)
 •   R&D group meet to discuss potential projects for the company  Project lead
     assigned based on expertise  Leader identifies/decides on potential collaborators
      R&D group meets again to reach consensus. (small textiles firm)
 •   Center PI’s make presentation to firm  Contact & US sales manager attend Center
     meeting  Contact meets with CEO, who agrees to associate membership  VP of
     Sales attends Center meeting and suggests full membership (international
     semiconductor firm)
 •   Contact and CTO visit university campus  Contact attends Center meeting 
     Contact writes brief letter to CTO about joining  CTO approves (large paper firm)
 •   Center approaches R&D manager  R&D manager proposes to his manager 
     Small team of researchers review review Center offering  upper management
     grants approval of funds
 •   Center Director does seminar at firm  Director sends marketing materials 
     Contact proposes Center to his manager  Team of researchers at firm reviews
     Center for ROI  membership could not be justified

                                                                             Page 15   IUCRC June 2006
IUCRC Business Model
                                                       Industry/University
                                                          Cooperative
                                                        Research Centers

 • Want to understand what factors influence the
   decision to join/not join
 • In parallel with this study have been working on
   an “IUCRC Business Model”
   – IAB member said he needed a “business model” to
     convey the center value proposition; challenged me
     to develop one
   – Model explains what the member gets or might get
     from participation
   – Emergent model
 • Proposed business model draws from our
   current study and earlier studies
                                                 Page 16   IUCRC June 2006
Assumption
                                                               Industry/University
                                                                  Cooperative
                                                                Research Centers


 • IUCRC provides an opportunity to access a
   portfolio of benefits
   – Individual member companies tend to weight the
     significance of specific benefits differently
      » Firm A might want something very different than Firm B

 • Value obtained by a member depends in large
   part on the investment they make in the center
   to obtain their desired benefit




                                                         Page 17   IUCRC June 2006
                         IUCRC

                                                    Industry/University
                     Internal Center                   Cooperative
                                                     Research Centers
                    Network & Facilities



    Input

Financial Support
   -Memb. Fee
                        Research           Business
  - Follow on $
                                           Objective
      Time
    Guidance




                     External Center
                         Network



                                              Page 18   IUCRC June 2006
                                           Faculty, Students and
                         IUCRC
                                            Extended Networks;
                                                 Facilities              Industry/University
                                                                            Cooperative
                     Internal Center                                      Research Centers
                    Network & Facilities




    Input

Financial Support
 (Memb. Fee +)                             Highly Leveraged (~20-1)
                        Research               Multidisciplinary
      Time
    Guidance                                  Research Program




                                                  Other members
                                                   (competitors,
                     External Center               supply chain,
                         Network                    customers,
                                                     suppliers)
                                                regulatory agencies
                                                                   Page 19   IUCRC June 2006
     IUCRC

                       Exceptional Graduate                 Industry/University
 Internal Center                                               Cooperative
                            Students                         Research Centers
Network & Facilities
                                                  • Ideas & Feedback
                        Informal Consulting
                                                    • Enhanced
                         Entrée to Other           recruitment of
                           Scientists              new employees
                                              • Broadened scientific
                          One-of-a kind
                                                       network
                            Facilities
                                                • Access to unique
    Research                                          Facilities
                                                        $???




                                              Consensus on Industry
                                                Problems/Issues
 External Center            Strategic
     Network             reconnaissance         Identify/Influence
                          and alliances         Partners & Supply
                                                      Chain
                                                      $??? IUCRC June 2006
                                                      Page 20
                   Not relevant to
Internal Center       this firm
    Network
                                                   Industry/University
                                                      Cooperative
                    Very relevant, would            Research Centers
     Near           do yourself within 1-2
     core                  years
    compet-
     ence


  Research         Highly relevant, would
 Amplification      like to do if you had
  Research
                    more time or money




    Emerg-           Outside core
      ing/        competence but might
  Competitive        be helpful or
     Tech.            destructive

External Center
    Network
                                             Page 21   IUCRC June 2006
Internal Center
    Network
                                                              Industry/University
                                                                 Cooperative
                    Very relevant, would        Cost avoidance Research Centers
     Near/          do yourself within 1-2         ~$200K
     core                  years                  Center IP
    compet-
     ence

                                              Dead ends to avoid
  Research         Highly relevant, would    Shortened/accelerated
 Amplification      like to do if you had progress on current projects
  Research
                    more time or money Promising new areas or paths
                                                     to pursue
                                                  IP inside firm
                                                       $????
    Emerg-             Outside core
      ing/        competence but might       Anticipate and respond to
  Competitive          be helpful or      transformational or destructive
     Tech.              destructive                 Technologies
                                                      $???????
External Center
    Network
                                                        Page 22   IUCRC June 2006
                                      • Ideas & Feedback
                                        • Enhanced
      IUCRC                   recruitment of new employees
                                  • Broadened scientific
                                          Network                        Industry/University
                                      Equipment use                         Cooperative
   Internal Center                                                        Research Centers
                            Proximate              Near           Later
       Network

Near Core Competence
      Research                                     R&D
                         Early access to … • Dead ends to avoid Commercialization
                         • New knowledge •Shortened/accelerat        IP/Trade
                       • New analytical tools ed progress on     Secrets inside
Research Amplification      and methods       current projects         firm
                         • Tacit knowledge    •Promising new
                         about techniques areas or paths to      Improved/New
                                                  pursue            •Products
                          •IP within Center •Emerging threats
Emerging/Competitive                         and opportunities     •Processes
    Technologies                                                    •Services

   External Center
       Network                    Strategic
                               reconnaissance
                                and alliances
                                                                   Page 23   IUCRC June 2006
Preliminary themes
                                                                                        Industry/University
                                                                                           Cooperative
                                                                                         Research Centers

 • Industry maintains networks with university researchers
         – Supported by marketing study findings
         – Industry is proactive in seeking out potential projects/ partnerships (via
           conferences, publications, web searches, referrals, direct relationships)
         – Dynamic relationships: ongoing evaluation of the partnership
 • The consortium model has benefits (and shortcomings) beyond what could
   be achieved through working independently with faculty
         IUCRC Business Model
 •     Some themes in decision criteria
         – At least one prominent benefit
         – Relevance of research to organization: core or non-core
         – Reputation of universities and researchers
         – Generating or improving business through IAB network
         – IP agreement is barrier
     "Most of our R&D into base, core technology is actually taking place in Europe,
     and part of the reason for that is that government, university, industry
     relationships in Europe are much easier to manage (than in the US). …The real
     problem we have with funding research directly at universities in the US is, to be
     honest, the intellectual property ownership.“
                                     --IP Manager, mid-size semi-conductor firm
                                                                                  Page 24   IUCRC June 2006
Preliminary themes
                                                                                              Industry/University
                                                                                                 Cooperative
                                                                                               Research Centers

 • Industry developments/ changes impact R&D strategy
 • Larger firms tend to have formal positions for managing relationships
   (University Alliances, Sponsored Research)
 • Decision processes ranges from informal to formal, with varying degrees of
   resource intensiveness (e.g., review process, people involved)
     – More formal processes appear to be more fragile to manage
 • Return on Investment is either taken for granted, considered impossible to
   measure, or assessed with a structured method
     "To be frank, [the organization] typically does not regularly weed out monies externally. We're
     very cost conscious and budgetary conscious. …so there was a review... but when it came
     down to trying to evaluate the value in terms of how it may add to [organization] earnings in
     the future, then it was kind of fuzzy, because we were fairly early on [in the research]."
                              -Senior researcher, large chemical company

 • Dynamic relationships: ongoing evaluation of the partnership
     "It was more the question whether a) do we have the money that we can put in there, because
     it has to come from a project and b) is there added value for us. We'd been in the center for
     three years so we knew what was going on, and at that time we felt that we'd seen everything
     we needed to see. … We learned ourselves, we were able to set up our own research.“
                            -Project leader, international specialty chemical company

                                                                                        Page 25   IUCRC June 2006
Remaining work
                                                   Industry/University
                                                      Cooperative
                                                    Research Centers


 • Continue with industry interviews
    – Recent joiners
    – Recent decliners
    – Undecided
       » More formal qualitative analyses

 • Conduct quantitative study (12-18 mos. timeframe)
    – Instrument design
    – Data collection
    – Analysis


                                             Page 26   IUCRC June 2006
Study Implications
                                                        Industry/University
                                                           Cooperative
                                                         Research Centers

 • Help center directors and others understand
   which firm characteristics (sub-organizational
   and personal) and center marketing approaches
   have the biggest impact on a firm’s decision to
   join a center, so that the center can:
   – More clearly define the target market
   – Adjust the marketing approach
   – Structure the research program to optimize industry
     support
 • Add to the scholarly understanding of the
   factors that support and/or undermine
   cooperative research

                                                  Page 27   IUCRC June 2006

								
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