Economic and Educational Growth from University-Industry

interaction System from the perspective of Technology Exchange

Dr.Yeetendra Kumar Bind 1, Dr Addiszemen Teklay 2, Dr Neelam Khare3
1
Department of Civil Engineering, BiT, Bahirdar University, Ehiopia, [email protected]
2
Department of Civil Engineering, BiT, Bahirdar University, Ehiopia, [email protected]
1
Department of Silviculture, SF&E, SHIATS Deemed University, India, [email protected]

Abstract — This paper analyses the outcomes of technology transfer which is one of the element of
university-industry linkages system. The paper highlights details of channels for successful operation
of interface. Paper also focuses on challenges in the linkage system. The possible framework and policy
details relating to interface have been analyzed by reviewing two existing case studies. Latter on the
associated benefits from technology transfer from have been highlighted. Paper also discusses
emerging conflicts in the system and reviews the measures to solve such issues.
Key words- Technology transfer, interface, linkages system

I. Introduction This paper is a contribution with a

Now a days business industries desires to perspective to first identify the potential areas of
achieve the completion of project within stipulated mutual coordination in both sectors and latter to
time and sometimes before it to prove the efficacy highlight the effective means to achieve this
of their system. It is because of the cut throat objective so as to ensure maximum innovation
competition of present days growing market. To from technology transfer. In addition this paper
achieve this goal industries require well developed also focuses on the policies and practices creating
system at every phase of work to ensure timely and enabling environment for the development of
qualitative end product. On the other hand the university industry linkage and associated benefits
elements of education system (Educational by reviewing an available case studies to
Institutes, Training Institutes and universities etc.) understand the capabilities and limitations of
are striving for practical exposure and funds. A university-industry linkage system.
mutual agreement can facilitate these requirements.
Partnering of universities and companies can help II. SCOPE OF TECHNOLOGY TRANSFER
both communities to gain competitive advantage.
Atlan, 1990 &, Peters and Fusfeld, 1982 [3-
The concept of university- industry
4] highlighted various field that can enhance the
partnership is a relatively not older than three
performance of business in an industry by exploiting
decades in most of the developed and developing
the advantage of University-Industry linkage. For
countries [1]. Therefore there are controversial
instance skilled human resource, well-trained
debates on contribution of universities industrial
graduates and experienced faculty; basic and
linkage on economic and educational growth.
applied research which can assist in the
However it is certain that research from higher
development of new products and enhance the
education and industrial motivation have indirectly
services; determining the cause and remedies to
played an important role for betterment of socio-
specific problems with the help of professional
economic condition [2].
expertise; use of advanced facilities available in
Higher education rely on research,
universities and lacking in companies and enhance
innovation and experiential learning for quality
in knowledgebase by attending training courses and
education and business rely on decision making,
continuing education in universities.
planning and systematic execution. These elements
Above practices helps in developing good
can be achieved from technology transfer by
relationship and brings prestige for company’s
sharing the resources like researches in both sector,
reputation. On the other hand such practices foster
data transfer consultancy etc.
the personality development in individuals.
There are several instances when
Contrary to objectives of industries which
coordination amongst University-Industry held at
actually seeks technical assistance from university
local and global level to face the emerging
industry linkage, the prime objectives of universities
challenges. Moreover, many countries have
are to obtain practical exposure and financial
developed the commissions which act as forum to
assistance. In addition sponsored research for
ensure the partnership between the university and
exposure to real world problems thereby motivating
industry through seminars workshops and training
the researchers to obtain fruitful solution; training
courses etc.
through internship and placement etc. However IV. CHALLENGES IN UNIVERSITY INDUSTRY
universities also procure funds from various LINKAGE
government agencies for their research needs but
such grants involve considerable formalities Every initiative has some ill effects also since
beforehand. perception of values in different individuals takes
place in intensive manner. This sometimes results in
III. CHANNELS FOR TECHNOLOGY negative impact of University Industry Linkage and
TRANSFER need to be minimized. Some of the unexpected
outcomes are listed below [1].
In reality there exist multiple channels to
facilitate technology transfer between university and  Diversion from actual objectives of research and
industry. For instance, some means which can be training.
categorized into small scale medium in university  Wastage of energy
industry linkage are knowledge transfer through  Commitment of individual university
personnel discussion; relationships from professional with industry personnel
consultation; joint ventures following up research  Restriction against open communication and
projects and sequel companies etc. [5-7] publishing
Channels for technology transfer rely on  Internal groupings and conflicts within higher
interactions from university industry linkage. Such education professionals.
interactions are categorize depending on resource
deployment, length, and formalization agreements V. CASE STUDY OF HEBREW UNIVERSITY,
[8-9].Some of the channels playing significant role ISRAEL
are listed below
 Joint physical facilities (Ex. Campuses, Ongoing literature is the review of an available
laboratories and libraries etc.) case study in order to evaluate the promising results
 Incubation of technological transfer from university industries
 Spin-off companies linkage and also to understand the reasons of
 University industry cooperation negative outcomes so as to minimize the
research centers and committees shortcomings by implementations of new ideas. The
 Joint research agreements (involving study was originally carried by Vigdor, 2000 [10].
research undertaken by both parties) The Hebrew University was established in the
 Contract research agreements year 1918 and was not involved with society and
(initiated by industry and undertaken industry to avoid academic derogation. However
by university researchers) industries were expecting the university to involve
 Consultancy work (commissioned by in applied researches. Albert Einstein was also a
industry for the solution of specific member of board of trustees and one of its founder
problems) member. His constant efforts along with other
 Training of industry employees (Ex. members helped university in achieving expertise in
training courses and personnel real world problem by acquisition and diffusion of
exchanges etc) knowledge.
 Internship programs for university
aspirants A. University Industry Linkage Framework
 Secondments to institute or industry
 conferences with industry and As a consequence university succeeded in
university participation developing university industry linkage by
 Industry sponsored meetings establishing a new interface department named as
 Electronic networks licensing office. The most important objective of
establishing licensing office was to protect
Quite obviously above listed channels are some of innovative developments by researchers of
the means which can effectively help in technology university. The university started acting as
transfer resulting from university industry linkage. contractual party with industry and looked after all
There could be variety of means which may vary in contractual matters by enforcing its policy and
modus operandi, intellectual transfer, resource regulations. The university in 1964 established
management and profit sharing etc. but the ultimate “Research Development Company of the Hebrew
results will yield economic and educational growth University of Jerusalem (YISSUM) to foster
from technology transfer. relationship between researchers, academicians and
industries. The company was completely YISSUM has contributed more than USD 150
commercial and was generating its own income. million in past twenty years and this figure is
rapidly growing. University earned USD 16 million
in the year 1999, out of which USD 11 million was
the contribution from the companies seeking
B. Organization of YISSUM research within university laboratory under the
“Research and Licensing Agreement” whereas
The president of university is in charge for USD 5 million was acquired from the royalties that
nomination of board of directors of YISSUM from is 2.5 % of the total products originated at the
entrepreneurs and university employees. The board university and marketed by industrial enterprises.
elects the managing director of the YISSUM. The
interface is given full autonomy to enable it to make V. CASE STUDY OF NATIONAL TSING-HUA
internal changes of attitude. UNIVERSITY, TAIWAN
All business activities related to technology
transfer, commercial transaction and licensing This case study was originally carried by Vincent
arrangement with industry are handled by YISSUM. [11]. University industry linkage in Taiwan taken
Royalties collected by YISSUM are distributed as shape under three different programs. A brief
follows account of each is described in the subsequent
literature.
 33% to the researcher (private)
 33% to the researchers laboratory within the National Tsing-Hua University (NTHU) established
university a a non-profit organization namely Tze-Chiang
 33% to the YISSUM Foundation of Science and Technology (TCFST)
1973. This organization was an excellent example
C. Example of Licensing and Research of tripartite linkage in which university, industry
Collaboration and government industry coordinates to fulfill the
demand of growing market, promote economic
Twenty years after the establishment of growth, upgrade the industry, popularize human and
YISSUM some issue arose as the relation with the social science as well as speed up modernization of
industry became more frequent due to interest of industrial and business management. With an
multinational companies in the university research. expertise in semiconductor technology, TCFST
The issues were mostly related to equity offered to expanded five laboratories, namely Optoelectronics
the researcher, conflict of interest that became Lab., Information Technology Lab., Special
relevant, consultant to industry etc. To resolve such Chemicals Lab., Industrial Material Lab. And
conflict YISSUM revised the regulations. Revised Environmental Protection Laboratory. Since its
regulation successfully resolved the matter of inception TCFST has been carried out more than
capital distribution and licensing issue. To fifty research projects, ten survey projects and have
understand this two examples are summarized been trained nearly forty thousand engineers for
below. upgrading traditional industries. In addition it owns
The school of pharmacy developed a new many patents and has developed high tech products
molecule for the treatment of Alzheimer diseases the field of solar cell, power MOS, LCD display,
with the collaboration of a leading European drug composite materials, automatic mail box and
company. The license was given to company, in automatic tailoring machines etc.
return YISSUM received generous research grant. Second program was a University-Industry
However, distribution of royalties was agreed upon Research Cooperative (UIRC) Project initiated by
for the future. Ten year latter drug was approved by National Science Council. The objective of the
United States Food and Drug Administration project was to study “how to develop and build the
resulting massive sales. As a consequence YISSUM competence of the critical components of the
collected tens of millions of dollars as the royalties. industry in the field of emerging opto-electronic.
Faculty of agriculture developed new tomato UIRC initiated with Advanced Erasable
seeds with the collaboration of a local seed CD( AECD) project and latter on many
company. Seeds were genetically engineered and development taken place in this project. As a result
were having considerably long shelf life. The local three patent applications have been file and one of
company is now marketing the seeds throughout the them has been approved till date. In addition, more
word and most surprisingly the cost of one kilogram than 20 papers were published and six graduate
seed is higher than the price of gold. students who participating the project entered the
industry and helped in transferring the related
technology and knowledge to industry. However, "Institutions and national competitiveness",
some short comings viewed from the projects were Seoul, South Korea, Aug. 18-19, 2009.
delay in results due to frequent change in 3. Atlan, T., “Bring Together Industry and
researchers and attempts to steal the technology by University Engineering Schools, in Getting
More Out of R&D and Technology”, The
license the non exclusive results by some
Conference Board, Research Report #904, 1987.
companies. 4. Peters, L., and Fusfeld, H., “University-Industry
Research Relationships” National Science
Foundation, 1982.
Third projects was to promote incubators programs 5. Faulkner, W. and Senker, J., “Knowledge
which was initiated by Small & Medium Enterprise frontiers: public sector research and industrial
Agency (SMEA) of Ministry of Economic Affairs, innovation in biotechnology, engineering
Taiwan. SMEA has establishment about 50 ceramics, and parallel computing” Oxford
incubators programs within the university aiming to University Press, New York, 1995.
subsidize academics and individuals for the 6. Arundel, A. and Geuna, A., “Proximity and the
development of small & medium enterprises, create use of public science by innovative European
firms”, Economics of Innovation and New
new jobs and enhance economic growth.
Technology 13 (6): 559-580, 2004.
7. Sequeira, K. and Martin, B. “The links between
VI. CONCLUSION university physics and industry” Institute of
Physics, London, 1997.
University industry linkage has great 8. Bonaccorsi, A. and Piccaluga A., “A theoretical
potential for socio economic development. framework for the evaluation of university-
Therefore possible modes of university industry industry relationships”, R&D Management 24
linkage must be promoted. However university (3): 229-247, 1994.
should refrain from directly promoting businesses 9. Schartinger, D., Schibany, A. and Gassler, H.
“Interactive relations between university and
and running economic enterprises to maintain its
firms: empirical evidence for Austria”, Journal
academic integrity. Technology transfer, joint of TechnologyTransfer 26: 255-268, 2001.
research and innovation are some the productive 10. Vigdor, M., “Organizational response – the
outcomes of the university industry linkage which management of interface, experience from
can contribute significantly and equally in the Hebrew University, Jerusalem, Israel”.
development of university and industry. The Proceedings of Policy Forum on Management of
interface management policies for university University Industry Linkage. IIEP Paris, PP 145-
industry linkage should be formulated by university 161, 2000.
and should be flexible to incorporate the future 11. Vincent F.-S. Wu., University-Industry Linkage
amendments. -The Case of Taiwan,
www.oecd.org/sti/inno/2754521.pdf

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