University Industry Relation (in open innovation era) Kazuyuki Motohashi Professor, Department of Technology Management for Innovation, The University of Tokyo
Mar 27, 2015
University Industry Relation(in open innovation era)
Kazuyuki Motohashi
Professor, Department of Technology Management for Innovation, The University
of Tokyo
2
Outline of Lecture
• What is “Open Innovation”? And why is it relevant to technology transfer (from university) management?
• Survey of open innovation trends: a case of Japan (RIETI Survey on R&D collaboration)
• Understanding firm’s motivation for R&D collaboration• Technology management strategy in open innovation era:
industry variation
Open Innovation
“Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology” (Henry Chesbrough, UC Berkley)
Related Concept R&D collaboration, Joint venture, Licensing Technology market (via intellectual property right) Technology sourcing (via open market)
3
4
What drives the trend from internal R&D to open innovation?
• Globalization and intense innovation competition: Catching up and growing importance of emerging economies (such as BRICs)
• Necessity of innovation speed in order to appropriate rents from R&D
• Importance of scientific knowledge for industrial innovation: particularly the case for bio-pharmaceuticals
• Institutional changes in science sector: PRIs and national university reforms (such as US in 1980’s, Europe and Japan in 1990’s)
Implications for Technology Licensing Management in University
• Very welcome!• But it is important to understand the firm’s
incentives for acquiring external technology (management of “boundary of firm”)– Changing firm’s needs for university technology
– Technology management strategy depends on to what extent your counterpart well manages open innovation
– The style of open innovation movement is quite heterogeneous and substantially different across technology fields
5
High concentration of R&D activities
ToyotaHonda
Panasonic
Sony
Nissan
Takeda
Hitachi
Toshiba
Cannon
NEC
DensoNTT
FujitsuSharpFuji film
Daiichi Sankyo
AstellasEisai
Mitsubishi Elec.
Mitsubishi Chem.
Others
7
Japan’s national innovation system
8
RIETI’s Survey on R&D Collaboration
• Firm level survey on external R&D collaboration: business to business networks and university and industry linkages
• Data for 2003, 556 samples
• Survey items– Recent trend of external R&D collaboration and IPR licensing
– Factors behind R&D collaboration decision
– Managing the boundary of firm in R&D, internal R&D vs outsourcing
• Detail results are found as the following site http://www.rieti.go.jp/jp/projects/innovation-system/H15.html
9
Japanese system is changing? From RIETI survey
Collaboration with Large firms
12.2
13.0
24.4
38.8
46.0
68.1
11.6
5.6
6.1
2.3
12.8
4.3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
20 or under
21- 100
101- 300
301- 1000
1001- 2000
2001 or over
5 years agoPresent ( i ncreased)
Collaboration with small firms
14.9
11.0
16.5
25.2
22.0
51.4
4.2
5.7
4.1
10.3
13.3
5.2
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
20 or under
21- 100
101- 300
301- 1000
1001- 2000
2001 or over
5 years agoPresent ( i ncreased)
Collaboratio with universities
23.0
21.0
27.6
46.6
54.0
81.9
10.4
15.3
14.4
9.5
20.5
1.0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
20 or under
21- 100
101- 300
301- 1000
1001- 2000
2001 or over
5 years agoPresent ( i ncreased)
10
Understanding UIC activities
Fig. 2 Style of collaboration with university
0% 10% 20% 30% 40% 50% 60% 70% 80%
Use of patent
R&D service(eg. Testing)
Technology transfer
Training
Technology consulting
Research Grant
Contract research
Joint R&D
100 or less
101-300
300-1000
1000 or over
11
Factors behind R&D outsourcingReasons why increasing R&D collaboration
67.9
38.1
41.8
14.9
2.2
29.9
8.2
3.0
59.6
27.2
55.1
21.3
16.9
2.91.5
48.5
60.3
41.2
29.9
5.9
51.448.6
36.7
5.5
9.76.7
2.9
11.0
3.7
24.5
8.35.9
4.4
2.0
24.8
10.1
6.46.4 5.5
29.4
0%
10%
20%
30%
40%
50%
60%
70%
Respond to intense R
&D
competition
Upgrade ow
n basictechnologycapability
Cost reduction of R
&D
Needs to access tobasic science
Policy push for
industry-science linkage
Shortage of R
&D
fund by own
Upgrading technology level
of counterparts
Success in past
collaboration projects
Important for technology
standard
Easy to access
counterpart information
Large firms
Small firms
Universities
PRIs
12
Management of firm’s boundary in R&D
72.0
5.9
31.3
7.9
64.1
13.5
5.9
47.6
16.9
6.7 7.1
18.7
37.7
47.0
4.9
16.2
20.5
5.9
51.2 52.8
10.6
30.3
3.3
32.4
29.332.9
2.2
20.2
5.5
9.3
32.2
28.4
2.2
8.3
46.5
2.3
0%
10%
20%
30%
40%
50%
60%
70%
80%
Product D
evelopment
project
New
R&
D subject
R&
D related to
core technology
R&
D needing speed
Technology
frontier project
Core technology
Basic science
Cost reduction
project
Learning technology
Own R&DWith large firmsWith small firmsWith university
13
Motivation and underlining hypotheses for econometric analysis
• Factors behing external R&D collaboration – Intense innovation competition?– Increasing complexity of innovation and the role of
scientific knowledge– Selection and concentration of R&D projects, but it
needs wider technological scope
• UIC’s impacts on research and production productivity: greater impact for small firms– Less Not-Invented-Here Syndrome– Focusing on more concrete project (short term benefit)
and greater pressure for commercialization
14
Business Environment Change Related to R&D Strategy
4.5
11.5
11.9
16.7
22.3
29.5
37.9
59.2
66.9
0% 10% 20% 30% 40% 50% 60% 70%
Meet market needs
Shoten lead time
Explore new R&D theme
Focus R&D themes
Cost reduction
Commercialize own tech seeds
Shift to applied R&D
Upgrade basic R&D skills
Staff reduction
15
Collaboration and R&D strategy
large firms SME and startups UniversitiesSME LF SME LF SME LF
Shorter development lead time ++ ++
Focusing R&D theme -- ++Reduce R&D cost +Reduce R&D staffs
Explore new technology seeds +++ ++more R&D for application and
development project++ ++
Improving basic technology capability --Market needs for R&D
Commercialization of tech seeds ++ ++ +
16
UIC contents by firm size
Smaller firms collaborate with universities for development stage project, while larger firms prefer more fundamental oriented research projects
商品化時期(大学と連携した場合、従業員規模別)
19.4
13.5
5.4
3.0
10.3
61.3
56.8
51.8
43.9
28.2
37.5
12.9
16.2
32.1
34.8
43.6
43.8
9.1
10.3
9.4
5.4
7.1
9.1
7.7
9.4
8.1
3.2
3.6
3.2
0% 20% 40% 60% 80% 100%
20人以下
21 100~ 人
101 300~ 人
301 1000~ 人
1001 2000~ 人
2001人以上
1年以内 2~3年程度先 5年程度先 10年程度先 商品化は念頭においていない
17
all all -1950 1951-70 1971-(1) (2) (4) (5) (6)
lrd 0.276 0.260 0.434 0.183 0.109(7.81)** (7.19)** (5.61)** (3.05)** (2.29)*
lemp 0.250 0.246 0.397 0.315 0.131(6.08)** (5.41)** (3.72)** (3.30)** (2.84)**
cord -0.030 -0.056 -0.131 0.146 -0.169(0.23) (0.45) (0.53) (0.67) (1.06)
univ1 0.377 0.355 0.203 -0.077 0.348(3.21)** (3.05)** (0.95) (0.33) (2.09)*
lage -2.402(4.81)**
lage2 0.360(4.86)**
Constant -1.683 2.302 -4.257 -1.188 0.439(7.10)** (2.57)* (8.51)** (2.83)** (1.30)
Industry Dummies yes yes yes yes yesObservations 450 438 168 134 136R-squared 0.62 0.64 0.77 0.55 0.49Absolute value of t statistics in parentheses* significant at 5%; ** significant at 1%
Research Productivity by Firm Age
18
Scientific knowledge and fundamental science at universities and PRIs
Commercialization of new product
Research Lab.
Business development
SMEs Start-ups
Large firm
Commercialization of new product
Difference between large firms and SMEs
in university industry collaboration activities
Close to the
market
Scope of UICScope of UIC
Role of UIC in economic development : a case of PRC
19
IT infrastructure(internet etc.) IPR PolicyLabor market institutions
Product marketcompetition
Financial marketcondition
Firm’s innovativecapability and networks
Universities Public research inst.
Spin-out firms
Innovations
Patent application by type
20Motohashi, 2008
Share of UIC patents by technology
21Motohashi, 2008
Regional Cluster PolicyA Case of Hsinchu Science Industrial Park (HSIP) in Taiwan
ITRI Universities
HSIP Internal Technology
Externality
Silicon Valley
Regional Proximity
International Human capital mobility
(Yang, Motohashi and Chen (2008)
Conclusion
• Growing trend of open innovation leads to increasing importance of UIC activities and university’s IP management.
• UIC activities spur SME innovation and network style innovation system.
• The role of university in NIS is important for developing countries, where technology level at private sector is relatively low.
• Technology development strategy at PRIs (public research institutions) is also important in technological catching up
23