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| Annotation: This article had been published on Asia Pacific Tech Monitor May-June 2004 issue
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| Integration for Technology Transfer
| Liu Youlin
President of Northern Technology Exchange Market
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Introduction
As is well-known, the social development and the power of a nation is closely related to technological innovation and the transfer and application of technology. Today with the rapid development of modern high technology, there are unprecedented prospects of technology transfer.
As a developing country, China has committed itself to economic reform and modernization. It is therefore critical for China's social and economic development that it takes this historic opportunity, brought about by the rapid growth of modern science and technology and the emergence of a knowledge-driven economy, to extend the scale and rate of its technology transfer and to strengthen the competitiveness of its science and technology.
Although technology transfer has been under way in China for a while, there is now some doubt about which method is better - the diversification of technology transfer or the single-mode means of technology transfer. Fierce market competition makes it a necessity to shift the focus of technology transfer from "hardware"- products and technology - to "software"- information resources, strategy, and knowledge. The objective is to achieve comprehensive integration - "soft" with "hard", "hard" with "hard", and "soft" with "soft".
The concept of "integration" has achieved great success in such disciplines as information, manufacturing and management. Examples are the computer integrated system in manufacturing and the LAF (lean-agile-flexible) production system in management. Integration aims to fulfil holistic, multi-dimensional optimization of the various resource elements so as to improve the overall effect and efficiency.
Northern Technology Exchange Market (NTEM), a standing technology transfer market jointly set up in March 1995 by the Ministry of Science and Technology of China and Tianjin Municipal Government, has built up a Technology Providing Network, a Technology Seeking Network and an Information Network throughout the country -"a network of membership with its function socialized and service industrialized". This has now developed into a well-known regional intermediary institution of technology transfer, that integrates science and technology resources and builds up an integration platform to provide technology transfer, go-between, information and international communication services.
We will now discuss NTEM's achievements.
Integration for industrialization
The distinct feature of current developments in science and technology is the inter-disciplinary approach, to which technology transfer needs to adapt. In other words, stress needs to be laid on the integration of high and new technologies to provide services not only during R&D but also during transfer.
A technology integration platform facilitates the development of high and new technologies and their industrialization. It provides comprehensive technical services for the regional growth of the economy. It also helps advance science and technology through various activities: making full use of R&D and technical resources supplied by NTEM's Technology Providing Network and collecting information; developing significant areas of technology for the modernization of agriculture; developing advanced common technology; promoting technology commercialization and industrialization projects, and then building up a technology integration platform to cover talents, patents, productive projects and essential conditions for R&D.
As of now, NTEM has constructed an integration platform for specific technologies - nanometer technology; new materials; high-clarity TV sets, environment technology; water-sparing technology etc. NTEM has invited top experts 8t home and from overseas to give academic lectures and seminars; assisted with offering opportunities for project argumentation and consultation for enterprises; arranged exhibitions of research products, investment negotiations and technology match-making; established a specific information website, and assessed projects commissioned by the departments of science and technology management. Thus NTEM has earned a good reputation for offering comprehensive consultation and services to governments, integrating the resources of hi-tech and aiding in seeking new technologies and markets for enterprises.
Case: Tianjin environment project
In August 2002, NTEM held a seminar entitled "Tianjin Science and Technology Project for Environment in 2002", sponsored by Tianjin Science and Technology Commission, Tianjin Planning Commission, Tianjin Economic and Trade Commission, Tianjin Construction Commission and Tianjin Bureau of Environmental Protection. There were more than 200 participants who came from enterprises, colleges, universities and research institutions all over the country NTEM had invited Mr. Liu Hongliang, an academic of the Chinese Academy of Engineering, to give a lecture on "Environmental Pollution and Counter Measures in China"; and Mr. Wang Yangzu, president of the Association of the China Environmental Protection Industry to give a lecture on "Market Trends for Industries Relevant to Environment in China's Tenth Five-Year Plan".
The achievements of environment protection industries in Tianjin were demonstrated through the "Exhibition on Accomplishments in the North Environment Protection Technology Industrial Base", and a diskette named "Visiting the North Environment Protection Technology Industrial Base," because the environment industry is a key industry in both Tianjin and China. It was a large-scale, high-level seminar, with many renowned professionals, scholars and entrepreneurs making presentations. So many achievements from more than 66 enterprises in Tianjin - like Baili Environment Facility Group - were displayed that a complete communication platform was set up for Tianjin and the whole country's circle of environment protection, which will offer greater opportunity for development in Tianjin.
Integration platform for diversified services
The complexity and asymmetric character of information required during technology transfer require diversification of services by technology transfer institutions. It would be hard to meet these requirements without multi-functional services. To facilitate technology transfer, NTEM offers integrated services, such as technology match-making, project consultation, assessment of intangible assets, research of market potential, and insurance of technology contracts. This it does by need-seeking, listing current achievements, selecting projects, introducing key-projects, match-making, promoting contracts, coordinating performance and tracking feedback. NTEM has established several centres for technology transfer, a technical broker management office, and the like. Meanwhile it keeps in touch with scores of venture capital investment institutions, listed companies and intermediary organizations at home and abroad to extend its acivities to financial fields, such as investment and insurance.
Through an intermediary platform our services have been made specific, tailored to regions and to individuals, as we will now describe.
Services for SMEs
Small and medium-scale enterprises (SMEs) are an essential force not only in the development of an economy but also because of its enormous scale in technological innovation, and so it is the prime target in our services. Several years of experience have taught NTEM that what SMEs need is specific or individualized services for technology transfer. On the one hand, technology-oriented SMEs have their unique advantage in hi-tech areas, especially in technological innovation. This is because the origination of intellectual property primarily depends on an individual's intellect. Thus what these SMEs need is mainly project-packaging and market-development.
On the other hand, traditional SMEs lack technology resources for renewing their products and transforming their processes, and urgently need outside support in technology and intellect.
It is clear, there fore, that NTEM needs to provide two distinct types of services. For the former category of SMEs, NTEM assists with project consultancy and assessment, market investigation and commercial planning. It also applies for projects promoting local developments in science and technology by means of packaging and commissioning new techniques.
For the latter category, NTEM helps first with technical diagnosis for enterprises, expert consultations in the field, and inviting bids for technology solutions. It then helps them to improve their technology through effective match-making with the developing capabilities and technical specializations of research institutions.
For instance, through this match-making service, the Tianjin Research and Design Institute of the Chemical Industry and the Tianjin Science and Technology College were able to transfer the following projects: "Pilot plant operation for a new process of sodium tripolyphosphate", "Sewage disposal by polyester section", and "Complexing rectification technology". These have not only strengthened the competitiveness of certain enterprises but also brought handsome returns to the institutions. Meanwhile the more advanced general techniques - rapid original manufacturing technique, extraction above critical point, and information management - are disseminated among enterprises with the collaboration of departments of science and technology.
Trans-regional technology transfer
There is an imbalance in economic growth between different regions, which gives rise to a practical demand to spread knowledge and transfer technology. NTEM selected several regions (Jiangsu, Shandong, Hebei and the periphery of Tianjin, etc.) which are in urgent need of technology and can readily absorb them. It then arranges for experts and scientists with their projects and achievements to go to these regions and to offer their services to accomplish trans-regional technology transfer.
For instance, over a period of seven years, together with the government of Tianjin Wuqing District, NTEM has been undertaking activities from inviting bids for technology solutions to scouting for talents to inviting investments and foreign trade. As a result, in this district there are now more than 200 enterprises that have established long-term connections with 96 research institutions, like Qinghua University and Tianjin University, reached 306 agreements of technology cooperation, and solved 184 technology difficulties. Also, over the last four years, together with the government of Wuxi, NTEM has been conducting negotiations for new technologies for the private sector there. In October 2003 more than 50 institutions and universities presented the fourth Wuxi Negotiations held by NTEM, which saw the conclusion of six agreements for cooperative projects (with funds exceeding 10 million) and attracted investments of aggregate value exceeding 100 million.
Information integration platform
An inform8tion network based on the computer and the Internet is a driving force for technology transfer, thanks to the possibilities of information sharing and intending. It not only improves the efficiency of hi-tech information collection and dissemination, but also offers the channel an opportunity to be aware of feedback, market demand and technology demand. NTEM therefore established the -"NTEM Technology Web" (http://www.ntem.com.cn) and a newsletter, "NTEM Technology Info" in both English and Chinese. Together these have formed a chain of services - information collection, processing and issue, online services and feedback. The next step was to build up nine comprehensive databanks with technical projects, patent products, experts and talents, and investment proposals. The website has 40 columns and more than 700,000 pieces of information, and gets up to 5,000 "hits" a day. It has become a significant, well-known website for technology transfer and is an efficient platform to collect and spread information overseas.
The website's information integration is reflected in both content and function. In terms of content, there is two-way communication between demand for and supply of technological information. Thus information on technological achievements is disseminated through many channels; while information is sought and collated on technical demand and difficulties; and feedback from enterprises is publicized online to develop appropriate technology to meet market demand. In terms of function, there is a constant effort to improve interaction with the website users. Instant data retrieval services are offered, and interactive windows in the homepage introduce key projects online. In addition, from last year, NTEM has been entrusted by the Chinese Ministry of Science and Technology with establishing a platform to popularize research achievements, as well as with establishing a Tianjin technical trade information platform. It will then be possible to offer information services at a new level as the NTEM technology network integrates with the national and regional network.
Case: Overseas research projects
In August 200, an exchange conference for overseas doctors' research projects was held in Tianjin. Prior to the meeting NTEM collected R&D projects from over 100 overseas doctors around the world through the information platform, processed them and presented them online, and then matched them with more than 3oo enterprises. It remained in contact with all the 62 cooperative projects that were contracted between China and foreign countries at the meeting, and facilitated their implementation and played an important role as a carrier of information integration.
Extending market for technology transfer
To develop international communication and cooperation is, to some degree, to extend technology transfer and to help Chinese technology transfer integrate with the global market. To achieve this goal NTEM introduced the advanced ideas, operating mechanisms and service models of research institutions in developed countries, thus evolving a strategy for the use of its intellectual property. Through international technology communication activities, it introduced new ideas and technologies. Finally it took up international cooperative projects between domestic research institutions and overseas enterprises.
NTEM insists on four principles: introducing new concepts and ideas, cooperating with other institutions, communicating information and striving for substantial results in its operations. In the eight years since the first China-Japan Technomart held by Japanese Technology Exchange and NTEM in 1996, the latter arranged 17 international technology exchange activities at home and abroad, received foreign delegations, experts and scholars, and officials of foreign embassies in China 25 times; organized 8 group visits abroad for technical exchange, and introduced and recommended over 460 international research achievements and projects. More than 670 research institutions and enterprises have been involved in the above activities, which extend to 28 provinces.
NTEM has gradually begun to benefit from advanced ideas on technology transfer by visiting developed countries, inviting experts to give lectures in China; attending and organizing international seminars, communicating with foreign experts face to face, etc.
For instance, its commercialization of research findings and technology transfer is an extended concept covering all actions and phenomena of transfer of technologies and knowledge from academia to industry. This enriched its views on, and experience of, technology transfer. It has expanded its serving functions from three to six: technical information, technical partnership, meetings and exhibitions, technical agency, technical property rights trade and international collaboration. Dozens of provinces in the whole country and in several foreign countries have been explored.
Again, in order to activate the technology transfer market, developed countries have paid great attention to building up a favorable policy environment and protecting intellectual property. So NTEM has been referring similar suggestions and appeals to local legislatures in many ways.
Developed countries consider technology transfer as a professional intellectual service calling for special knowledge and skills. Hence, NTEM not only makes a point of communication and cooperation with other technology transfer organizations, but also pays great attention to complement and benefit them.
In a word, these advanced concepts have been of great help for NTEM to broaden its vision, widen its horizons, and keep up-to-date with standard international practices.
During these 8 years, NTEM has built up relationships with more and more technology transfer organizations in America, Japan, Korea, Russia, Hong Kong, Taiwan, and other technological intermediaries in APEC, and APCTT. It was successful in entering cooperative agreements with Hong Kong Productivity Council, HK Science and Technology Parks Corporation, Songdo Techno Park in Korea, Office of Technology Licensing of Stanford University, Technology Licensing Office of the Texas A&M University, etc. Under the principle of mutual benefit, NTEM has regularly exchanged technical and operations information, provided technical items, handled requests promptly investigated cooperative opportunities, and assisted in technical activities. All this helped established the foundation for the international communications platform.
On its international communications platform, NTEM has promoted international cooperation among science and technology intermediaries, research institutions and enterprises of APEC members through imaginative technology activities. From 1996 to 2000, NTEM held China-Japan Technomart 5 times, during which more than 800 technology items were negotiated by 400 Chinese research institutions and enterprises and 57 Japanese companies. Thus, Chinese Yantai Aquatic Product Company signed an agreement with Japanese Fuji Corporation on a new type of wrapper. With improved packing technologies, they were able to export more aquatic products to Japan. Tianjin Communication and Broadcast Corporation signed a technology transfer agreement with Asia Hi-Tecs Corporation on automobile accessories. Their products have been exported to Japan. At China-Japan Software Cooperation Forum and Software Product Fair in 2003, NTEM invited more than 120 representatives of 70 Japanese companies, like NEC, Fujitsu and Shimadzu. These companies concluded 19 software export agreements with many Chinese companies, like Tianjin Apollo information Technology Ltd. NTEM also held China-India Technomart, China-Korea Technomart and Tianjin-Hongkong Technomart several times, organized Chinese companies to visit Japan to learn advanced technologies of environmental protection; and led scientific research institutions to take part in item partnerships in Hong Kong. Not long ago, it organized a delegation to visit the USA for technology transfer. The delegation visited the office of Technology Licensing of Stanford University, the Office of Intellectual Property Administration of UCLA and the Pacific Design Center. NTEM also established cooperative relationship with the OTL of Stanford University at that time.
Case: Major seminars
After China's entry into the WTO, technology transfer and intellectual property have been of increasing concern. In early 2002, NTEM organized a delegation for the International Patent Licensing Seminar 2002, held in Tokyo, Japan. This seminar inspired it to hold a large, high-level international communication meeting, to enable domestic enterprises and tech-transfer institutions to broaden their horizons and thought processes. Then, under the support of China Technology Market Management and Promotion Centre and Tianjin Science and Technology Commission, it held the first international seminar on technology transfer and intellectual property in Tianjin in Oct. 2002. The seminar took 21st century technology transfer and intellectual property strategy as its theme, and discussed the opportunities and challenges in facilitating technology transfer and new technology industrialization with China's entry into WTO.
Lectures were given by Mr. Terry A.Young, ex-president of the Association of University Technology Managers (AUTM); Mr. Uwe Haug, Director of the International Department of Steinbeis Foundation (StW); and Mr. Takeshi Murakami, Director of the Technomart Department of the Japan Industrial Location Centre. NTEM became aware of the policies, rules and laws relevant to technology transfer services, and practically developed country experiences of the concept and mechanism of intermediary services. Over 150 participants, representing 28 provinces of China, discussed the subjects and measures faced in establishing and developing the Chinese technology innovation service system.
They accepted NTEM's leadership in facing the new challenges in the domestic technical market and technology transfer service areas. There was also a very constructive seminar with a clear theme, and discussion on both theory and practice, which helped China's technology services to know about and make use of the experiences and practices in developed countries.
Technology transfer service is sophisticated and systematic, and needs multi-sided cooperation and support. NTEM has over the years established cooperation with more than 280 leading research institutions, such as Qinghua University, Xian Jiaotong University, Nankai University, China Carrier Rocket Institute, and China Ship Institute. This technology-providing network enables NTEM to attain sufficient and reliable technology and intellectual resources, and to provide tech-transfer services in an endless stream. It has set up nearly 100 liaison offices over 20 provinces in the country and has thus built up a large technology-seeking network in connection with thousands of enterprises. It thus has market resources with constant technology needs. It has also established cooperation with many well-known tech-transfer institutions at home and abroad, such as Shanghai Technology Transfer Exchange, Shenyang Technology Transfer Exchange, Japan Technomart Foundation, APCTT, Steinbeis Foundation, and Office of Technology Licensing of American Stanford University, to organize various activities.
In a word, NTEM has gained some knowledge exploration and practice in integrating resources and services and establishing platforms with assistance from many areas. On 9-10, February 2004, China's Ministry of Science and Technology and Thailand's Ministry of Science and Technology held a seminar to plan the 2004 Workshop on Development of S&T Intermediary Mechanism of APEC in Beijing, China. More than 180 experts and scholars, from the 14 members of APEC, were present at the meeting to discuss the theme - technology innovation and general development. The president of NTEM addressed the meeting on the subject of international technology exchange and cooperation. The chairman of the seminar spoke highly of the experiences and achievements of NTEM. The organization hopes that it can, together with more partners, develop in all directions and more areas, with greater multi-level cooperation to promote the development of technology transfer.
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