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“Research Commercialization: The role of SMEs &
International Organizations”
International Conference
on
Promoting R&D in North Africa
15-17 July 2008, Rabat, Morocco
Vladimir Kozharnovich
Senior Industrial Development Officer
Investment & Technology Promotion Branch
UNIDO
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Technology & the Economy
 Economists agree that the creation and diffusion of technological
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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
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Key Determinants of the 21st
Century
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 knowledgebased. 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
development.
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Challenges and Opportunities of
the 21st Century
• Markets are becoming increasingly global and knowledgeintensive.
• 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.
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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
industry.
• A further need is for a change in the format of science
education to encourage acquisition of the necessary
knowledge and skills.
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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
management.
• 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 productionconsumption pattern could do much to fulfill the objective of making a
country as being a world’s competitive knowledge-based economy.
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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
2015.
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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.
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Failures of the Technology Market
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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
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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
institutions
Low efficacy of government support schemes
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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.
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UNIDO Technology Promotion Programme
National
Innovation
Systems
New and enabling
Components
technologies (biotechnology, ICT, new
materials)
Technology Foresight
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
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National Innovation System
R&D
S&T
Structure
Government
Firms
Business
Organisations
Productive Market
Place
Chains
Learning &
Education
System
Financial
System
Conformity
System
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Strengthening
National Innovation System
Process
Level
Needs
Services
Programmes
Government
Policies
Strategies
Action-plans
Advisory
Awareness building
TF
TRM
Needs Assess.
Institutions
Capacity
Networking
Sustainability
Capacity building
Tech. Promotion
Links to market
ITCs
TPs
Needs Assess.
Partnership (ITPOs)
Capacity building
TM
BAs
Needs Assess.
Technology
Diffusion
Technology
Transfer
Enterprises
Knowledge
Know-how
Management
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Technology Related Tools &
Methodologies
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Technology Needs Assessment Manual and reporting software
system
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UNIDO Manual on Technology Transfer Negotiation and
Training Kit
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Training Package on Technology Management
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Guidelines on Business Alliances
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Guide on Joint Ventures
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UNIDO BOT Guidelines
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UNIDO’s Subcontracting System
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A holistic approach
Technology
Upgradation
Quality
Market Access
Capacity
Building
Upgradation
A holistic
approach
ICT
Application
Waste
Minimization
Environment
Skill
Upgradation
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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
Networking
 ITCs, ITPOs, IPAs, SPXs, Exchange
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R&D Institutes: New Global Setting
• Increased financial, trade, investment and technology
flows.
• 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.
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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
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Major Reasons For Revitalization of R&D
Institutes: Challenges of Industry
• Global competition is getting fiercer
• Cooperation and strategic alliances are now
essential
• Flexibility is becoming increasingly necessary in
order to adjust to rapid technological pace and
changing costumer demands
• Quality requirements are higher than ever
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Motivation for Encouraging
Revitalization
• Seek out new sources of finance
• Eestablish links with the productive sector and increase
industry expenditures through improved services to
enterprises
• Exploit the centres’ S&T capabilities on the national and
international stage
• Upgrade the performance and international competitiveness
• Strengthen S&T infrastructure & improve networking
capabilities
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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
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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
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Strategy Process
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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.
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The implementation of strategies on commercialization of new
technologies and innovations by industries and their support
institutions are at the core of the process.
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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.
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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.
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Recommendations for Improving
Performance
• Develop vision and strategy based on rapidly changing
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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
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Strengthening Research – Industry Links
(Revitalization of R&D Institutes)
ITP:
Cultural
Transformation
Vision
Leadership
Adapting and responding to
the external environment.
Legal,technological, environmental, political,
regional and national institutions,
commercial,
financial,
international,global
Business Process
Engineering
Organizational
Restructuring
Introduce
New Services
IT Systems
Quality
Management
R&D
R&D
Institutes
Institutes
Adopt
Best Practice
Benchmarking
Management
Support Services
Adopt Best
Strategies
Innovation
Management
Become a Learning
Organization
Networking
Fund Raising
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ITP:
R&D
Institutes
ITP
as
facilitator
Strengthening Research – Industry Links
(Revitalization of R&D Institutes)
IPT
Services
Approaches
Actions
Cultural
Transformation
New Vision
& Leadership
IT Systems
Business Process
Engineering
Quality
Management
Benchmarking
Management of
Supp. Services
Adopt Best
Strategies
Innovation
Management
Become
a Learning
Organization
Networking
New Services
& Activities
Fund Raising
Organizational
Restructuring
Adopt
Best Practice
Leading change processes
-towards revitalisation
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The Role of International Organizations
in Technology Cooperation
 Ensure transparency
 Provide technology options
 Ensure independent evaluation and selection of
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right technologies
Provide support services through UNIDO tools and
methodologies
Strengthen trust between technology owners and
recipients
Decrease financial risks in the transfer of technology
Develop multiple partnerships for sustainability
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UNIDO
Experiences and Instruments
 19 Investment & Technology Promotion Offices
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(ITPO)
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
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INTERNATIONAL TECHNOLOGY
CENTRES (Ongoing Projects)
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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,
Turkey)
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,
China)
Russia-Brazil Centre for Technological Cooperation
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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:
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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
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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
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International Programme for Technology
Commercialization & Transfer: Functions
 Assessment of needs of industry in new
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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
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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
transfer
 Support in access to financial resources
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Preconditions for Success
 Political support & endorsement
from the country leaderships
 Technological cooperation as
agenda of high-level political
dialogue in participating
countries
 Consensus on Technology
Partnerships
 Active involvement of business
& scientific communities
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Vladimir Kozharnovich
Senior Industrial Development Officer
Investment and Technology Promotion Branch
UNIDO
Phone: +43-1-26026 3720/3702
Fax:
+43-1-26026 6870
e-mail: [email protected]