Toward Better Intersectoral Collabora-tion

for the Technology Innovation and Knowledge Diffusion: Recent Korean Pol-

icy Framework2013. 7.

Jaemin Park

College of Business Graduate School of Technology Management

Konkuk University

Problems and weaknesses

The strategy of promotion and core programs

Contents

The background of intersectoral cooperation promotion in Korea

Main tasks and programs

Ⅰ. The background of intersectoral cooperation promotion in Korea

Ⅰ. The background of intersectoral cooperation promotion in Korea

The policy paradigm needs to be changed toward promotion of voluntary coop-eration among industry, university, and public research institutes apart from governmental leadership.

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.

Experts point out that Korea needs to utilize cooperation among industry, uni-versity, and public research institute more effectively for leaping up to 'First Mover'.

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 of※ cooperative research among industry, university, and public institute(2011).

In particular, it is still needed to raise technology licensing and commercialization

Ⅱ. Problems and weaknesses

Ⅱ. Problems and weaknesses

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.

The investment on cooperation relies heavily on government supports than voluntary initiation.

Lack of voluntary cooperation1

Ⅱ. Problems and Weaknesses

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.

Licensing and commercialization of intellectual property is poor.

Poor knowledge and technology diffusion2

Ⅱ. Problems and Weaknesses

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.

Lack of foundation and support for cooperation and knowledge diffusion

3 The personal and institutional inadequacy in technology transfer

Ⅱ. Problems and Weaknesses

Even though researchers are circulating between universities and public labs, there is limited movement between public sectors (including universities/public labs) and ptrvate sector (i.e., enterprises)

According to a survey on 39 major universities, less than one person per university spent ※sabbatical leave in enterprises (2011).

Because of poor open research culture, the exchange of researchers among in-dustry, university, and public institute is in low level

The poor personal exchange between industry and university4

Ⅱ. Problems and Weaknesses

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)

High proportion of researchers has been concentrated in universities

Excessive concentration of researchers toward universities and public institutes5

Ⅲ. The strategy of promotion and core programs

Ⅲ. The strategy of promotion and core programs

Three strategies and 10 core programs were identified

Open research culture and voluntary cooperate is needed to construct the sys-tem fostering circulation and exchanges of knowledge, technology and re-searchers

Diagnosis and Strategic Goal

Ⅲ. The strategy of promotion and core programs

Fostering creative economy through open research culture and activation of cooperation

1. Activating voluntary cooperation among industry-university-public institutes

3. Promote personal exchanges and mobility among sectors

2. Promoting technology licensing and commercialization

1) Activating voluntary cooperation among industry-university-public

2) Introducing incentives to attract private enterprises3) Enlarge financial support on cooperative research

through public institutes

4) Introducing diverse commercialization models5) Vitalization of start-ups from universities and public

institutes6) Strengthening comprehensive support throughout R&D-

technology licensing-commercialization stages 7) Strengthening competency of TLO(Technology Licensing

Organization)

8) Support personal exchange between enterprises and public sectors

9) Dispatching researchers from public institutes to SMEs and activating flow of embodied knowledge

10) Foster “research hubs” and attract enterprises’ participation

Vision

Strategies Core programs

Ⅳ. Main tasks and programs

Ⅳ. Main tasks and programs

Activating voluntary cooperation among industry-university-public institute1

TASK1

Activating practical cooperation among industry-university-public

○ Derive areas that factually need cooperative research and support focal projects○ Prompt organizing consortium among industry-university-public for large-scale projects

TASK2

Introducing incentives to attract private enterprises

○ Raise tax deduction for R&D expenditures of enterprises○ Inducing private R&D by enlarging incentive for cooperative research

TASK3

Enlarge financial support on cooperative research through public institutes

○ 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

Ⅳ. Main tasks of core programs

Activating voluntary cooperation among industry-university-public institutePromoting technology transfer and commercialization2

TASK4

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 l icensing and 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

Vitalization of start-ups from universities and public institutes

○ Supporting the university centers to induce more start-ups○ Activating start-ups of public research institutes that owns prospective technology

TASK5

Ⅳ. Main tasks of core programs

Activating voluntary cooperation among industry-university-public institutePromoting technology transfer and commercialization2

Strengthening comprehensive support throughout R&D-technology licensing-commercialization stages

○ 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

TASK6

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 col-lected licensing fees as a form of royalty incentive.

TASK7

Ⅳ. Main tasks of core programs

Promote personal exchange among industry-university-public institutes3

TASK8

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

TASK9

Dispatching researchers from public institutes to SMEs and activating flow of embodied knowledges

○ Expanding a dispatch of researchers in public institutes to SMEs - Using experience and technology of research institutes to support product development and commercialization

Innovative SME Support Programs

(Ministry of Knowledge Economy, 12 Million USD in 2012)

Candidates with doctoral or master degree are employed by public research in-stitutes and dispatched to SMEs for three years for technology transfer and con-

sultation

Ⅳ. Main tasks of core programs

Promote personal exchange among industry-university-public institutes3

TASK10

Foster “research hubs” and attract enterprises’ participation

○ Organizing “research hubs” that is able to provide labs for cooperatively performing researches in university and public research institutes○ Promote practical instruction by utilizing technician and engineers as “industry professors” in the hub

THANK YOU