Namaste: Industrial Relations and Technology Transfer: From Theory to Practice

On the 5th-6th of November 2015, VGU organized the workshop “Industrial Relation and Technology Transfer: From Theory to Practice” in Ho Chi Minh City. The workshop aimed to provide fundamental knowledge in technology transfer and intellectual property, as well as to facilitate discussion, mutual learning from practical examples and experiences in Vietnam and other neighboring countries, and furthermore, to establish a network of universities, research institutions, and enterprises for future collaboration in technology transfer. Participants were coming from various universities, research institutions, departments of science and technology (DOST) and enterprises.

What is Technology Transfer?

Technology transfer, also called transfer of technology (TOT), is the process of transferring skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities among governments or universities and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products, processes, applications, materials or services. It is closely related to (and may arguably be considered a subset of) knowledge transfer (Wikipedia).

Technology Transfer in Vietnam - Current Status, Potentials & Challenges

Although both technology transfer and intellectual property were perceived as important to society, it was mostly considered that they are still on the early stage of development in Vietnam with many challenges ahead. However, there are also opportunities for Vietnam as we are opening to the global integration process.

According to Mr. Do Nam Trung (DOST HCMC), currently, Vietnam's technology level is ranked at the position of 92/140 in the world (World Economic Forum Report 2015); among 12 member countries of TPP, Vietnam has the lowest technology level, far behind 2-3 generations, as compared with others. We are still passive in technology innovation with mostly short-term problem solving and not long-term technology innovation linked with new product development. There is also limitation in R&D activities because of lack of information, experience and finance. It is obvious that we need to enhance our National Innovation System.

Dr. Michael Braun’s analysis showed that Vietnam’s economy is highly dependent on foreign technology and assembly processing. Vietnam economic development has been based on exploitation of natural resources and cheap labours. Vietnam mostly has no added value on technology. Large national enterprises serve mostly national markets. They have typically a medium technology level. Foreign-invested enterprises often have high technology level, but rely on technologies provided by their parent companies. Most SMEs work in low-tech sectors for local/national markets. Only a very small share have an advanced level of manufacturing technology and less than 5% employ university graduates. There is a large number of research institutions as potential “technology producers” but measurable outputs are still very limited. Research and knowledge are available in many fields but uneven distributed (high degree of regional concentration).

SWOT analysis of Technology Transfer in Vietnam today
Slide credit: Dr. Michael Braun (2015)

A/Prof. Nguyen Anh Thi shared the same concern that Vietnamese enterprises have just moved values around, and not yet created true values because just by moving values around they have already got benefits. And thus there was no pressure for them to create values. Universities and research institutes do not have business model, and are weak in customer relationship.

Dr. Michael Braun also noted that technology transfer in Vietnam is highly regulated with (unnecessary) extremely detailed regulations for every aspect. While in Germany, technology transfer is like a business in a free market. Instead of detailed regulations, only framework is provided which let the actors negotiate and deal it themselves. Law is there to encourage and to ensure the rights of the investors.

Improving competitiveness of Vietnamese SMEs is a mission for technology transfer. A number of intermediate mechanisms have existed and emerged to support technology transfer such as technology transfer centers (sàn giao dịch công nghệ), Tech Mart (internet-based platform for technology trade), and Technology Parks (Saigon Hi-Tech Park, Quang Trung Software City, Hoa Lac Hi-Tech Park, Danang Hi-Tech Park), etc. Technology incubators provide the environment for the systematic nurturing of young companies before they are ready for venture capital funding. Co-location of new university campuses with high-tech parks is a dedicated effort to create favorable conditions for linking high-tech training, research and development with production and services, stepping up innovations, nursery of technology enterprise and commercialization of high technologies (Dr. Michael Braun). As we can clearly see, innovations in Vietnam mostly focus on ICT, because ICT has the lowest barriers (A/Prof. Nguyen Anh Thi).

According to DOST HCMC, Ho Chi Minh city also have several programs to support tech-business such as policy for enterprise’s fund on science and technology development, program to encourage manufacturing of equipments that can substitute imported products, program for energy saving and efficient use in business, programs to develop incubators for technology startups. It was suggested that the city should facilitate startup ecosystem to promote innovation, establishing venture capital fund through public-private-partnership (PPP) and investing much more on science and technology development, especially on enhancement of research capacity in science and technology institutions.

Innovation in nowaday information age - high speed of science and technology development - is a decisive factor towards a knowledge economy. It is an important element that directly affects productivity, efficiency and competitiveness of enterprises. As Vietnam participating in TPP and joining global integration process, with higher requirements in standards, quality, intellectual property, enterprises will have to invest more in innovation and modernization. Enterprises’ innovation need also means high demand for technologies from research.

What should we do to foster technology transfer in Vietnam, particularly in universities?

Solutions to move forward technology transfer in Vietnamese universities, research institutes were addressed in discussions. In general, it was agreed that research should be directed to more practical applications, and there should be more collaborations, partnerships and connections not only between universities, governmental agencies and industries but also among universities and research institutes themselves. Therefore, this workshop is the first foundation step for further collaboration among universities on technology transfer.

Remark on Technology Transfer concept
Slide credit: Assoc. Prof. Dr. Nguyen Anh Thi (2015)

Prof. Evelyn Taboada and A/Prof. Nguyen Anh Thi shared the same view that technologies from universities should be put in business model in order for them to bring values to society. For fostering innovations, it is essential to nurture a startup ecosystem of various supportive elements. While in the previous nursery/incubator model, relationships among different elements are indirect through the incubator, in the new model of startup ecosystem, relationships are direct to each other elements through network. Thus, networking is very important in startup ecosystems.

Elements of a startup ecosystem
Source: http://www.startupcommons.org/what-is-startup-ecosystem.html

How to create economically valuable technologies?
Slide credit: Assoc. Prof. Dr. Nguyen Anh Thi (2015)

Beside market/technology push approach, it is important to consider the market pull one. In order to create economically valuable technologies, market watch should be done to understand needs before assigning research projects to scientists. This customer-centric approach will help to connect research with practical needs of society and thus, bringing successful technology transfer in the market.

Technology Push vs. Market Pull
Slide credit: Dr. Michael Braun (2015)

Dr. Michael Braun emphasized the importance of capacity building, interpersonal skills training and creating entrepreneurship/spirit in students. The “T-shaped” entrepreneur has both the breadth of knowledge about design, entrepreneurship, leadership, innovation and the depth of knowledge in a particular discipline. “Good people like this they do not grow on trees.” It is a lot about practical experience. Thus, we should bring people from industry and invite them to talk to students. This will give us two effects, people can learn from the experience and students are motivated.

The "T-shaped" Entrepreneur
Slide credit: Dr. Michael Braun (2015)

Courses on entrepreneurship have been taught in TU Darmstadt and TU Dresden where students came from interdisciplinary majors (business, engineering, science) get together and forming startups. Internally, technology transfer seeks also to help facilitate interdisciplinary R&D collaboration for new customer-oriented solutions. VGU also has the MBA program which focuses on Innovation Management in SMEs.

To professionalize technology transfer, many universities have established dedicated units. Stanford university has Office of Technology Licensing focusing on achieving commercial success from Stanford’s research-based innovations. Max-Planck Society has a dedicated technology transfer subsidiary which provides services for all Max-Planck institutes. The effort pays as the number of successful innovators from Max-Planck’s research is continuously growing.

At VGU, our objective is to professionalize our relations with all our partners and bundle technology transfer and research offerings.

Example VGU: Technology Transfer and Industrial Relations
Slide credit: Dr. Michael Braun (2015)

Nowaday, technology transfer is more than only licensing, and involving in the creation of new ventures/spin-offs. Starting a company requires not only money but also commitment and good management. The Entrepreneurship Center in Technical University of Munich provides spin-off services and support their development.

Example from University of Munich - Entrepreneuship Center and Spin-off Services
Slide credit: Dr. Michael Braun (2015)

On the other hand, in order for university to create conditions where its staff or students are willing to invest in technology development and to take risks, it should have a very clear policy how to share cost, benefits and other things such as the example from MIT.

Example from MIT - Financial policy to foster research and technology transfer
Slide credit: Dr. Michael Braun (2015)

What universities and research institutes can do to foster technology transfer can be summarized in the following figure:

What can universities and research institutes do to foster Technology Transfer?
Slide credit: Dr. Michael Braun (2015)

Technology transfer as a “business process”

How do you know if a new idea from research is a good idea? Investment decisions must be based on a thorough evaluation. You can have the best invention in the world, but if it does not fit with the need of the society, you have invented a solution which is desperately looking for a problem! (Exercise of assessment Segway technology as a solution for transportation in Vietnam).

There are three assessment dimensions that should be taken into account (Dr. Michael Braun):

1. The innovator’s potential - Can the innovator realize it?

Does the innovator have the necessary competencies?

Can he build a strong market position?

Does he have the resources?

2. Technological potential - Is it technically feasible and attractive?

Is it an innovation?

Does it provide technical and competitive advantages?

Can it be protected?

3. Market potential - Is the business attractive and sustainable?

Are market volume & growth sufficient to earn money?

Is it a profitable market/can they make money?

Can they enter the market successfully?

From ideas to innovations
Slide credit: Dr. Michael Braun (2015)

From ideas to market success
Slide credit: Dr. Michael Braun (2015)

Different approaches, skills and actors required during Technology Transfer process
Slide credit: Dr. Michael Braun (2015)

Commercialization of new technologies is the final step in the transfer of a specific technology. Timing is important as missing the right moment means missing the opportunity. There are various types of innovations with commercial market potential.

Types of innovations with commercial market potential
Slide credit: Dr. Michael Braun (2015)

What are potential technology transfer customers asking for? The most obvious answer is product innovation (technology progress, new/extended functions, customer's convenience, non-physical goods). But there are more of that, there are not only product innovation but also service innovation, market innovation, etc. Process innovation has high need in the manufacturing sector. Successful innovation does not always have to be "high-tech" as in the case of business model innovation (example of J. C. Decaux and his idea of Abribus, providing free bus waiting shelters for people, and got benefits from advertisement) or modernization of indigenous enterprises in traditional sector (example of Vinh university helped indigenous enterprise improving fish sauce production).

Intellectual property management

Protection of your innovations
Slide credit: Dr. Michael Braun (2015)

Different IP Marketing Strategies for considering:

Selling
Licensing (licensing fees, royalties): exclusive licensing or non-exclusive licensing.
Joint venture; partnerships
Start-ups/Spin-offs

Transfer negotiation

Prepare your negotation meeting well is one step to a successful negotiation. Thinking of what do you want to achieve and finding a fair value where both parties can be satisfied at the end. It is important to be fair as for future and further collaboration. Different expectations should be considered.

Some thoughts about building technology marketing strengths (Dr. Michael Braun)
Some experiences from technology commercialization

Commercialization does not just happen. No commercial company will come on its own initiative and knock on your door to ask which technologies or patents you have to offer.

Good relations with (potential) partners are crucial. Cold calling potential licensees rarely works. A Technology Transfer manager must have networks in the industry

to build trust and to learn about the needs of the (potential) partner,

to find Technology Transfer opportunities,

to develop Technology Transfer opportunities and

to close Technology Transfer deals successfully.
Business is done between people! Most Technology Transfer deals are made between parties who already have a connection. This facilitates the deal opportunity and creates enthusiasm for the deal and mutual trust.

Technology Transfer opportunities must be developed systematically.

Identify valuable technologies

Work out the their potential benefits for users

Create attractive offerings for potential partners which address their needs

Develop a marketing and commercialization strategy. A technology marketing strategy is a plan which tells you: which technologies, R&D services, etc. we have to offer, who are potential users, what benefits our technologies can create for users, how we develop relations with these potential partners, how we market our technologies and achieve revenues, etc.

- Involve all stakeholders: Successful technology transfer requires involvement and active participation of all stakeholders. Commitment of your researchers (who invented the technology which you want to sell) is crucial!
- Carry out market analysis: Who are your target partners? What do they want?

- Build an image in the market: Invest in marketing (brochures, Internet, events, etc.)

- Establish a dialogue with your target partners, e.g. individual meetings, workshops, lunch meetings, etc.

Focus on value creation: There are lots of exciting technologies, but commercial users don’t care how innovative or scientifically interesting your technologies are – they just want solutions for their problems! So listen to their needs, before you talk about how “interesting” your technology is!

Team approach: Often, many scientists have their own contacts in enterprises and pursue them in an uncoordinated way. This may create the danger of conflicting messages and missed opportunities. Lesson from Key Account Management: “One face to the customer!” Team up with your researchers and sensitize them for Technology Transfer issues, speaking with one voice. (Example: Conferences are often attended by business development staff of technology companies).

Develop the opportunity: Approach the potential partner to see if he/she is interested,be prepared before you meet him.Which arguments can open the door and raise interest in your proposed technology? What do you have to offer? What are your objectives and target conditions for TT? Team up with your researchers and sensitize them for TT issues

If you don’t know your target partner personally… Prepare a convincing “sales” package which can be sent to potential partners. Package may contain: one page non confidential description of the technology, data sheet to substantiate claims, link to published patent, link to published literature, Template Confidentiality Agreement or Material Transfer Agreement, Letter inviting an interested recipient to evaluate the technology

Identify all possible potential partners that may be interested. Identify key person in each organization to approach. Follow up with each recipient to whom it was sent. This approach should not be regarded as a first strategy. It should be considered when other strategies are inapplicable or exhausted. It might be a particularly useful strategy if a technology is proposed to license many times on a non exclusive basis or a technology complements existing technologies of the target recipients.

What proactive marketing initiatives can a Technology Transfer organization use to stimulate Technology Transfer? Example Johns Hopkins Technology transfer (JHTT): Selected initiatives such as JHTT Technology Booklets, Technology Bundling: Robotics & Neglected Disorders, Customized Conference Booklets, Entrepreneurial Events, BioMatch, Entrepreneurs Boot Camp, BioInvestor Conference, Hopkins Alliance, “Tech Lunch”-Initiative (informal lunch held once a month at different schools and departments, JHTT staff will be available to answer questions about tech transfer and our services. Targeted at senior-junior faculty, graduate students & Post-Docs).

Lessons learned from practice examples

At the workshop, Prof. Evelyn Taboada told her interesting story of “Turning Waste into Gold” from University of San Carlos, Cebu City, Philippines. Her company - GEMS (Green Enviro Management Systems) has brought knowledge and research generated from university into live through an environmental-friendly integrated bio-refinery plant for 100% treatment of fruit wastes from Cebu’s dried mango industry. The plant repurposes the dried mango wastes for a variety of products such as mango flour, mango butter, mango pectin, mango tea, briquettes, etc. It is a successful example of teamwork spirit and technology transfer in university, through collaboration with industry to bring values to society, creating more jobs and income for local community (especially for the marginalized people - the last, the least and the lost), and improving mango farming. One of the key message from Prof. Evelyn Taboada is that our research can start with a need or a chronic problem in society (problem-solving research). Just go straight to the problems and try to encourage frugal innovations - doing more with less. Do patents first to protect the innovations and then publish the papers.

Prof. Evelyn Taboada also shared her experience with the Association of Universities in Philippines on Technology Transfer. It was the Intellectual Property (IP) office who coordinated and invited all universities in Philippines to a workshop, brainstorming how to come up with a network. Each university who want to be member the Association has to participate and commit to be an active member in the association. Experts from industry were invited to talk in workshops and investors also came too. Universities take turn in holding workshop and sharing resources. So far 88/1500 universities in Philippines have joined the Association. Although the number is still small but they are really committed members, and that is what matters.

Another international practice example was presented by Mr. Ralf Opierzynski from Fraunhofer IFF, Bangkok, Thailand. The Fraunhofer Society is a German research organization with 67 institutes and independent research units, each focusing on different fields of applied science. In Asia, Fraunhofer has regional offices in Seoul, Tokyo, Beijing, Jakarta and Bangkok. Fraunhofer organization works very close to industry, get funding from them and thus, research results have to be applicable in the industry. They also have close partnerships with government and universities. As a regional R&D and transfer hub for technology and know-how, Fraunhofer IFF’s objectives are to initiate and implement joint research cooperation and network in innovative thematic fields. Fraunhofer IFF focuses on energy (biomass utilization, waste to energy, renewables, smart grid, smart infrastructures), digital engineering, Internet of Things /Industrial Internet /Industry 4.0, sustainable urban planning, infrastructure development, smart city concepts, innovation in agriculture, and logistics (Smart Work Systems). According to Mr. Ralf Opierzynski, one of the essential success factors in international technology transfer is network and partnerships with local expertises. We should not try to do everything by ourselves but instead, try to do in a team, building network. We also need strong commitment and funding structure.

Besides the two international cases, six practice examples in Vietnam were presented at the workshop, in which four examples from universities and research institutes (Nong Lam University, Bach Khoa University HCMC, Can Tho University and Bach Khoa Danang) and two examples from enterprises (Digital Seed Company and Ninh Phong Company). They are representatives of good practices from organizations that are strong and have successful experiences in technology transfer. Here are some noted sharings, recommendations from their presentations as well as from discussions among participants:

Successful technology transfer requires clear and strategic research objectives.
Continuous improvement of technology
Having specific plan for technology transfer (not only just selling the equipments)
Technology demonstration and training are important
Professionalizing the work of research project planning and development.
Professional unit in IP management, technology transfer is needed
Putting consultation services, technology transfer and production in universities into enterprise/business model.
Respecting the win-win principle for both universities and enterprises in industrial relations and partnerships.
Building centers to produce prototypes from inventions collaborated with universities/research institutes.
Government should support more information, mechanism for price evaluation of technologies.
Holding conferences where enterprises and scientists can meet
The way of using reference should be improved, not only just academic oriented (reading from papers, publications), but also more from practical applications, patent search, etc.

In summary, for fostering technology transfer in universities in Vietnam, we need:

To create network and improve the connections between universities and the enterprises, and between universities ourselves. Joining forces and using synergy.
Continue to build capacity. We want to create awareness among students and lecturers, which is complement. Training courses, disseminate success stories, work with political leaders so that… if we come up with good ideas, we will find support from them.
Professionalize: develop a seamless process start from finding a good research to selling the products. Seeing from the viewpoints of the users.
Form a network of Technology Transfer. And this workshop is a start.

“Coming together is a beginning,
keeping together is progress,
working together is success.”
~ Henry Ford

*****
Photos of the Workshop

Welcome speech by Dr. Nguyen Le Hung, Vice President of VGU

Speech by Dr. Nguyen Khac Thong, Department of Science, Technology and Environment, MOET

"Technology Transfer and Science-Industry Cooperation in HCMC
– Potential, status and challenges",
Mr. Do Nam Trung, DOST HCMC

From Theory....

"Technology Transfer as a Business Process"
Dr. Michael Braun, Head of Department Industrial Relations and Technology Transfer, VGU

"Open Innovation: Framework for University-Industry Collaboration"
Assoc. Prof. Dr. Nguyen Anh Thi, Dean of Faculty of Engineering, VGU

"Intellectual Property management and its role in Technology Transfer"
Mr. Tran Giang Khue, National Office of Intellectual Property of Vietnam

...to Practice

"International Practice Example
Technology Transfer at University of San Carlos, Cebu, Philippines"
Prof. Dr. Evelyn B. Taboada, Dean of Engineering School, University of San Carlos, Philippines

"International Practice Example
Technology Transfer Approach of Fraunhofer in South East Asia"
Mr. Ralf Opierzynski, Fraunhofer IFF Regional Office ASEAN, Bangkok, Thailand

"Technology Transfer in Vietnam – Why and how?"
Dr. Michael Braun, Head of Department Industrial Relations and Technology Transfer, VGU

"Practice example from Vietnam - University/Research Institute perspective
Technology Transfer at the Center of Agricultural Energy & Machinery, Nong Lam University"
Mr. Tran Van Khanh, Deputy Head of the Center

"Practice example from Vietnam - University/Research Institute perspective
Technology Transfer at University of Technology, HCMC (DHBK)"
Dr. Ngo Thanh An, University of Technology HCMC

"Practice example from Vietnam - University/Research Institute perspective
Building research collaborations with enterprises at the Institute for
Research & Development of Biotechnology, Can Tho University"
Assoc. Prof. Dr. Tran Nhan Dung, Director of the Institute

"Practice example from Vietnam - University/Research Institute perspective
Experiences of Da Nang University of Technology (BKDN)"
Assoc. Prof. Dr. Vo Chi Chinh, Deputy Head of Science and Technology and
International Cooperation Department