EUINet

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EUI-Net

• Conference
• Tallinn, Estonia
• May 3-5, 2006
• University-Industry links Where to heading?
• Prof. Csaba FORGÁCS
• CORVINUS University of Budapest

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University-Industry links Where to heading?

• Mission of University need for change
• New way of University-Industry links
• International experience (EU, USA, etc.)
• Importance of regional aspect European regions
  and Centres of Excellence
• Case of Hungary
• One possible way of EUI-Net development

EUI-Net Tallinn, May 3-5, 2006
Csaba Forgacs CUB
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1. Mission of Universities

• Basic research
• Producing skilled talented people
• Promoting diffusion of knowledge
• Full state financing
• Independent from business interests

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1a. Mission has to be revised

• Economic and social environment has changed
  dramatically knowledge on high tech can be
  easily gained (books, internet and other sources)
• Speeding up research new patents and know-how
  produced every day
• Research results needs less time to be applied in
  industry (from military to civil society)
• Accumulated knowledge of people and group of
  people
• Creation of new knowledge based on extended
  experience
• Small groups of people can make significant
  contribution to technological development
• Universities have to open their doors to
  technological development

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2. New way of University-Industry links

• SPIN-OFF (and Spin-out) form is in use for
  improving cooperation between Higher Education
  Institutions (HEIs)/Research Institutes (RIs) and
  Industries involved university employees
• Triangle of HEI, Employees and Industry
  balance has to be found

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2a. OECD definition

• Enterprise established having following
  characteristics
• Any new business enterprise established either a
  by public institution or a university employee
• Any new business enterprise getting technology
  based on know-how from a university or other
  public financed research institute
• Any newly established business enterprise where
  university or other public research laboratory
  can be found among owners.
• Any newly established enterprises established by
  public research institute

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2b.Need for speeding up innovation

• Innovation new knowledge based on creative use
  of previous knowledge and experience
• Diffusion of knowledge in business. Determining
  Factors
• 1. pressure by competition
• 2. demanded capital investment of innovation
• - accumulated capital
• - possibility of accessing loans
• 3. limits of hiring skilled people

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2c. Pressure of competition

• The more the market players the stronger the
  competition pressure has been increasing
• Globalization new dimension competition
  crossing national borders
• Pressure from the market has an international
  character
• Increasing potential needs concentration of
  knowledge and sources

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2d. What Economic policy is needed?

• Recognizing the need for and helping to
  establsih HE-Indsutry cooperation
• Providing legal environment to prmote
  cooperation between industry and universities
• Placing partly the burden of providing budget
  to shoulders of universities and indsustries
• Role of State facilitator Example EXIST
  program in Germany.
• Focus on a. supporting new enterprise of
  technology-intensive
• b. helping diffusion of knowledge in economy
• c. promoting regional development
• Condition Spin-offs have to be
  integrated into
• national/local
  economy

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2e. Integrating sources

• Universities
• knowledge, skills, expertise, innovation
• capacities for making experiments
• Industry
• budget for R and D
• facilities, place for experiments
• industrial culture

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3. International experience

• Economic policy Funding establishing centres of
  excellence in order to concentrate ecnomic
  potential and speed up innovation (from USA, UK,
  Finland, Germany, Japan, Austria etc. To CEECs)
• Cooperation between University-Industy should be
  based on mutual economic advantages

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3a. Spin-offs

• Question Ability of a country to modernize
  national economy on a concept of knowledge based
  economy
• International experience
• Silicium valley in California
• Road 128, Boston area
• Cambridge successful development in
  agglomeration.
• Regional aspect of development (USA)
• UK experiment in HEIs some 10 universities were
  involved. Regional aspect is strong.

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3b. Importance of spin-off in transition countries

• Centrally planned economies have collapsed
• Need for restructuring national economy
• New structure of national economy will be
  occurred
• Break down big state owned firms
• Strengthening emerging businesses needs capital
  investments
• Newly established enterprises have been
  struggling of shortage of capital

EUI-Net Tallinn, May 3-5, 2006
Csaba Forgacs CUB
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3c. Mechanism

• Sharing advantages
• Industry
• University
• People individuals - professors
• Incentives
• conflicts of interests
• resolving problems

EUI-Net Tallinn, May 3-5, 2006
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4. Regional aspect of innovation

• Innovation spreading not balanced by regions
• A spatial aspect of innovation IMPORTANT
• USA 55 of HIGH TECH concentrated in 10 big
  cities.
• Elements of innovation process
• A. Gaining knowledge
• B. Improving technology
• C. producing and marketing the product

EUI-Net Tallinn, May 3-5, 2006
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4a. Innovation is interactive

• Elements of innovation systems
• A. industrial sector (manufacturers, suppliers,
  buyers, industrial research institutes)
• Academia universities, non-profit and sate
  universities)
• Innovation related service sector (technical,
  marketing, laws)
• Innovation based on strong interactions between
  product development, technology development and
  research

EUI-Net Tallinn, May 3-5, 2006
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4b. Flow of knowledge

• Coordinated by
• A. market (e.g. selling and buying licences, new
  technologies,
• B. State flow of technologies of national
  importance
• C. Reciprocity flow of knowledge through
  informal relationships you can access if you are
  involved in this channel

EUI-Net Tallinn, May 3-5, 2006
Csaba Forgacs CUB
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5. Case of Hungary Concentration of innovation

• BUDAPEST and agglomeration Strong regional
  concentration
• 48 of R and D institutions,
• 66 of R and D investments
• 61 of labor and
• 68 of patents

EUI-Net Tallinn, May 3-5, 2006
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5a. Conditions and opportunities

• Good potential in scientific-technical aspects
• To be in front line in international arena and in
  Europe too.
• After radical reforms much less money spent on
  innovation GDP 1,6 before and 0,8
  in 2000.
• Number of inventions has dropped significantly
  (1990 1805, 2000 330)

EUI-Net Tallinn, May 3-5, 2006
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5b. National actions

• Law in integration of universities (1996, 2006)
• To force integration of HEIs based one
  university in each city by law .
• New comprehensive universities emerged.
• Concentration of knowledge Founding Centres of
  Excellence and be involved in regional
  development

EUI-Net Tallinn, May 3-5, 2006
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5c. Regional aspect

• Flow of knowledge determined by several factors
  as
• 1. culture
• 2. legal environment
• 3. spatial aspect knowledge spillovers strong
  regional character
• 4. local-regional flow of knowledge as a
  determining factor in innovation system

EUI-Net Tallinn, May 3-5, 2006
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5d. Focusing on development of European regions
(NUTS 2)

• Regional innovations have to be supported by
  government policy
• Central region of Hungary has to play an
  outstanding role
• Role of centres of excellence should be fixed and
  relations with central region developed

EUI-Net Tallinn, May 3-5, 2006
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5e. Vision of a Rector for being elected

• New relationship university-city/town/region a
  key to European integration of a region
• New dimension of cooperation in the field of
  EUI-Net
• Establishing new center for innovation around
  university. 15-20 ha area new research
  institutes, incubator houses, technical-science
  parks etc. will be developed.
• Strong background for promoting SMEs
• Student Spin-offs for practicing .
• Support of University Alliance within a big
  cross border region (Kassa-Miskolc-Debrecen with
  affiliation centers based on alliance of
  colleges Salgótarján-Eger-Gyöngyös, Nyiregyháza
  -Sárospatak

EUI-Net Tallinn, May 3-5, 2006
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6. One possible way University-Industry links
development UK

• Early 90s cutting back budget for higher
  education institutions BUT Initiating a NEW
• Experiment in the field of improving and
  deepening cooperation between Universities and
  Industry
• Some 10 universities involved (Warwick, Oxford
  and others)
• Goal to generate additional income for
  Universities as well
• Government support for the experimental period

EUI-Net Tallinn, May 3-5, 2006
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QUESTIONS TO BE DECIDED6a. Spin-off Links with
mother institutions

• Short term if employee leave university/research
  institute after founding spin-off
• Links is limited for one transaction only
• Mother institution may use part of its
  capacities (laboratories etc) or provide services
  for start up businesses
• Long term link mother institutions is among
  founders or owners or, provides capital for
  spin-off

EUI-Net Tallinn, May 3-5, 2006
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6b. Management of EU-I cooperation at universities

• General manager
• Projects Professional project leaders
• Profit centers
• Training short programs, MBA,
• tailored ones
• Services Any kind which can be offered if
• demand is available.

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6c. Targeted markets

• Regional circles around universities
• Cooperation with big, medium and small size of
  companies/firms
• Research and extension activities
• Very fruitful cooperation
• Entrepreneurial Universities
• government budget
• leasing out real estates
• staring any new business if there is a demand
  for it

EUI-Net Tallinn, May 3-5, 2006
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6d. Financial results of experiment

• Not very much in short run
• Problems had to be overcome
• Reconciling conflicts of interests
• Royalties
• Real step ahead after some 5-7 years
• Speeding up profit generation later, probably
  after on decade

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6e. Major fields of successful cooperation

• Need and possiblities for experimental work
• Agriculture
• Medical science
• Engineering
• Less dynamic Management development

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6f. Learning from experience of others

• Use what others have already found out
• Analyzing causes of successes and failures of
  others
• Keep in mind local circumstances
• Adopt good models but taking into account local
  social, economic and cultural conditions

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6g. Networking

• Advantages
• Organizing change of experience on a regular
  basis
• Starting joint actions
• Synergy issue
• Spreading research findings

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References

• Bessenyei, Lajos Competing for Rectors chair.
  http//66.249.93.104/search?qcache1VaUccS_H6YJm
  ertnet.uni-miskolc.hu/cikkek3Bjsessionid3DD48772
  78CF3B00CB1638CF421A1A3B083Fkiadas3D2003-03-122
  6rovat3D126cikk3D94126sorrend3Drovatnovegye
  tem-iparkapcsolathlhuglhuctclnkcd34lrla
  ng_hu
• Borsi Balázs - Papanek Gábor Egyetem-ipar
  kapcsolatok a kutatóhelyek benchmarkingja
  Közép-Európában http//66.249.93.104/search?qca
  chebM-N1rstkkIJwww.gki.hu/index.php3Fid3D1292
  6lang3Dhuegyetem-iparkapcsolathlhuglhuctc
  lnkcd15lrlang_hu
• Kleinheincz, Ferenc Spin-off vállalkozások,
  avagy barátkozzunk eg yúj megnevezéssel
  (Spin-off enterprises Le us become famliar with
  a new concept. http//66.249.93.104/search?qcach
  eu_MkJ3-aKPwJwww.inco.hu/inco5/innova/cikk1.htm
  egyetem-iparkapcsolathlhuglhuctclnkcd12l
  rlang_hu
• Varga, Attila Regional policy of Innovation USA
  experiance and opportunities for Hungary.
• http//66.249.93.104/search?qcacheqPcDSgrQ
  ulkJwww.matud.iif.hu/05jul/13.htmlegyetem-ipark
  apcsolathlhuglhuctclnkcd7lrlang_hu
• http//www.nce.gc.ca/about_e.htm
• http//www.rcoe.gov.uk/rce/core/page.do?pageId1
• http//www.ceticwales.com/application/home.cfm?lan
  gen
• http//www.itu.int/ITU-D/hrd/coe
• http//www.dest.gov.au/sectors/international_educa
  tion/policy_issues_reviews/key_issues/internationa
  l_centres_of_excellence.htm
• http//www.kfki.hu/chemonet/TermVil/tv2002/tv0209/
  kroo.html

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• Thank you for your attention!

EUI-Net Tallinn, May 3-5, 2006
Csaba Forgacs CUB