Transcript PowerPoint 演示文稿 - Association of Pacific Rim

The Relationship between University
and Industry: General Issues and a Case
Study on University-Run Venture
Businesses (URVBs) in China
Xie Kehai
Peking University Founder Group
Key points

History of cooperation between university and
industry in China

The reasons to set up URVBs in China

URVBs’ successes and challenges

Case study: Peking University Founder Group

Conclusions
Key points

History of cooperation between university and
industry in China

The reasons to set up URVBs in China

URVBs’ successes and challenges

Case study: Peking University Founder Group

Conclusions
History of cooperation between university and
industry in China
 Before 1980’s:
– University-attached factory for training students in practical
skills
– University with narrow disciplines mainly for one industry, eg
metallurgical industry, agriculture, textile industry
 1980’s and 1990’s:
– Bursting of university-run enterprises in real business word
 2000 onward
– Further development of the enterprises
– Clarify relation between university and industry: from universityrun to university-own, ownership reform
Key points

History of cooperation between university and
industry in China

The reasons to set up URVBs in China

URVBs’ successes and challenges

Case study: Peking University Founder Group

Conclusions
Background of setting up URVBs
Social environment: China adapts open-door policy
Planoriented
Marketoriented
Transform academic results
into commercialized products
Open door
policy
Public debate
“open mind”
…….
To-do-list!
University:
Insufficient fund
Intellectual’s
low - income
‘Jumping to the sea’
Lack of
Innovative
product
Deng: ‘Science and
technology is the first
productive force’
Why URVBs are needed and set up
 Raise fund to supplement educational finance
 University /professors want to let the process to
commercialize their academic outcomes under
control
 Technology: industry engine for industry further
development
 Some company did not have the ability to make
the transformation
URVBs characters
 Initial capital and intellectual property injected by
universities
 Sharing the intangible property of mother
universities, especially the brand names
 A unit of university (+/-?)
Key points

History of cooperation between university and
industry in China

The reasons to set up URVBs in China

URVBs’ successes and challenges

Case study: Peking University Founder Group

Conclusions
Statistics of URVBs in 2005
 Company No.：over 5000
 Revenue: from RMB 22.9 billion (Year 1996) to
RMB 96.9 billion (Year 2005）
 Nearly half of the revenue from Beijing
 All large companies from top research universities
 The revenue of URVBs of Peking University
Founder Group is RMB 24.5 billion
Challenges:
 Relationship between mother universities and
URVBs
-Size & No. of URVBs
-Time/reputation
-The nature of VC
 URVBS are experiencing reform
 Inadequate incentive for URVBs managements
State Council’s guidelines to URVBs’ reform
 Clarify ownership
 Normalize the mechanism of injection and withdraw
of university property
 Remove universities’ names from that of URVBs
 Define boundary between faculty members and
URVBs employees
 Explore MBO possibility and new incentive
mechanism
Possible problems for universities
 Faculty members ? time for academic advance, bias for
projects, free exchange of ideas, academic principles, etc..
 Students? Focus, unacceptable behavior, etc..
 University officials disturbed?
 Erosion of public trust and its reputation?
 Finance?
 Culture?
Possible problems for company
 Research projects are not the sponsor-oriented?
 Academic value or market value? paper or product?
 Stable supply?
 Confidentiality?
Key points

History of cooperation between university and
industry in China

The reasons to set up URVBs in China

URVBs’ successes and challenges

Case study: Peking University Founder Group

Conclusions
An Example:
Peking University Founder Group
Founder in 1986
 Founded in 1986 by Peking University
 With total investment of RMB 400,000 from
Peking University
 Office space: 21 sqm; 10 full-time staff
Social environment
Open door
policy
Public debate
Socialized
market
economy
--“open mind”
Deng: ‘Science and
technology is the first
productive force’
University:
insufficient fund
Innovation
Jumping to the sea
Intellectual’s
low – income
Transfer
Development of Founder
1986-1987:

Computer selling, project/product selection;

Technology transfer : turn laser typesetting technology into product.
1988-1992
•
Production of the Chinese Laser Typesetting System;
•
Development of the Founder SUPER Chinese Character Board, which
accounted for 50% of the market;
•
Establish subsidiaries and marketing and service net works;
•
The first overseas branch;
•
Developed full-line products associated with radio & TV workflows;
1993-1999:
•
Expand biz area into system integration;
•
Founder computers and monitors were released;
•
the Founder (Hong Kong) Co., Ltd. was listed on the Hong Kong stock
market;
•
‘Founder Tech”: listed on the Shanghai stock market;
2000-now
•
Founder entered broadband areas;
•
No.2 in computer production and sales in China / index company;
•
the Apabi DRM copyright protection system won the Award for Major
Technological Inventions by the Ministry of Information Industries;
2000-now (cont’d)

Founder Yinjie Digital Printing System, which is the most advanced
Chinese language printing system in the world;

Founder printing software system was successfully applied to 300
Japanese newspapers;

Founder Apabi eBook occupied over 80% market share in China’s
provincial public libraries;

Second core business: Pharmaceutical and Healthcare;

2005: received the award of “Top 10 Chinese Innovation Brands “and
“The Outstanding Enterprise in 20-year IT Industry”
Founder in 2006
Among the Top
100 Large
Enterprise Groups
in China
Among the First
Six State
Technology
Innovation
Enterprises
Founder Group Ltd.
Sales RMB24.5 bil
20,000 employees
Two Core Business
No. 7 in Top 100
China Electronics
& Information
Enterprises 2005
Has five public listed
companies and twenty
more solely-funded
and jointventured companies
Core Business：IT
IT Business
Hardware
Software
IC Chips
PCB
PC and
Peripherals
Network Security
e-Government
Digital Copyrights
Protection Tech
Chinese/Japan-ese
Publishing
Core Business: Pharmaceutical and Healthcare
PKU International Hospital I & M Co.,Ltd.
Hospitals
HIS
systems
Pharmaceutical Co.
Logistics
Equipment
leasing
24.5
24
22
Sales Income
(RMB Billion）
22
20
20
18
14.5
16
14
11.6
10.1
12
10
7.5
8
6
2.5
4
2 0.42
1992
1995
1998
2000
2001
2002
2003
2004
2005
Factors attributing to Founder success
 Support from Peking University
 Founder’ effort
 Right people in both sides!
Support from Peking University
 Full support from university authorities
(own baby: care, initial assistance, healthy grow)
 Top faculty members with business vision
 Academic advanced and commercially promising
technology continuously backed by universities
 Initial investment
 Brand name
 Culture
 Well-trained students
A healthy corporate culture is a guarantee to our success
Customer
Employee
Shareholder
Continuous
first class
service and
products
A platform
for staff
development
and
contribution
Long term
return as a
healthy
enterprise
Community
A role
model of
corporate
citizen
A healthy corporate culture, qualified management team
Peking University
Value and Behavior
 Innovation
 Integrity, Honest, Self-discipline
 Initiative, Efficient, Responsible
 Cooperative, Team-work
People is the key
People with right competence in both sides
Technology
People
Professor Wang Xuan (1937-2006)

One of the founders of Founder Group

A professor with entrepreneur’s vision and competence
As professor:
 Winner of China Preeminent Top
Science and Technology Award 2001
(mainly due to his phototyping
technology invention)
As entrepreneur:
 customer-orientation: right sense for the market
and close to customers
 People manager: excellent skills in team building,
employee motivation and retention
 Management focus: management upgrade, internal
processes, management team buildup
 People with charisma: spiritual leader of Founder
Group
Personal success and Founder’ success
Mr. XYZ
Excellent scientific achievement
…..
Not open minded
All results are just papers
Coercive leadership
Technology outdated
Single-fighter
Money burned
Reputation diminished
An example:
Peking University Computer Science Research Institute
• Mainly financed by Founder Group
• Projects defined Founder or Peking University
• All research results belong to Peking University
and Founder Group
• Founder has priority to use to results
Excellent achievements academically
Reliable suppler for Founder
Stable and qualified team!
Return to Peking University (1/2)
 RMB millions
 An incubator of new inventions
 Retention on some top scientists of Peking
University (combination of Peking University and
Founder)
 Founder: a well-known brand name in China (only
when we do well….. We must do well)
 Learning opportunities for students
Return to Peking University (2/2)
 A company with large net asset, profitable,
growing steady, with leading business and
competitive staff
Key points

History of cooperation between university and
industry in China

The reasons to set up URVBs in China

URVBs’ successes and challenges

Case study: Peking University Founder Group

Conclusions
Prospect of URVBs in China
 URVBs are still needed
 With the market maturing, it’s difficult to gain sudden
huge profits like before and the same opportunities
will probably never come again.
 In the new economy environment, the traditional
management can not matched with the new situation.
A professional management team is indispensable.
 At the same time,freedom will continue to be offered
to the scientific and technological elite.
A super smooth interface?
 Different mission
– To spread knowledge, scientific discovery
– Profit, shareholder value….
 Different culture
– scientific advance, freedom, non-authority,non-hierarchy
‘long term’, impartiality, objective
– Market value, customer, competitive, survive, fast,
processes, regulation, financial results
 Different development pattern
– Stable, long life
– Turbulent, ‘short’ life
Solution?
Contract, Communication, Compromise
Different mission, culture, development pattern:
‘Dispute’ is inevitable
Both sides are not difficult, but only different
“interdependent”
Great potential !
Research
Discovery
Transfer
Application
University
Industry
Unclear boundary
In Beijing,
Less than 10%
scientific
finding are
commercialized
Production
Sales
Social needs
Joint responsibility
Great potential
Thank you
[email protected]