institutional mechanisms for research institutions/industry linkages: technology incubation...

8/8/2019 Institutional Mechanisms for Research Institutions/Industry Linkages: Technology Incubation Perspective

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9th August, 2010


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Definition Concept

Scope

Vision/ Mission

Mandate

Goals & Objectives

Benefits

TICs Current Spread

Essential Requirements

Facts on the Ground

Stakeholders NBTI Host State Government Private Sector Entrepreneurs

Research Institutes/Tertiary Institutions ChallengesWay Forward Conclusion

INTRODUCTIONINTRODUCTION Background

Science & Technology and GDP Growth Technology Innovation National System of Innovation

TECHNOLOGY INCUBATION PROGRAMMETECHNOLOGY INCUBATION PROGRAMME


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S&T is the benchmark on which national progress andS&T is the benchmark on which national progress and

development is measured.development is measured.

Most under developed economies have naturalMost under developed economies have natural

resources but lack technologies required to addresources but lack technologies required to add

value to these; thus they remain in vicious cycle ofvalue to these; thus they remain in vicious cycle of

poverty.poverty.StrategizingStrategizing S & T goals for short term benefitsS & T goals for short term benefits

(e.g. food security, Poverty alleviation, job creation,(e.g. food security, Poverty alleviation, job creation,

national security and stability) as well as the longnational security and stability) as well as the long

term for Nigeria to be amongst the fastest growingterm for Nigeria to be amongst the fastest growing

and the top 20 economies by the year 2020.and the top 20 economies by the year 2020.


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Inventions and innovations produce wealtInventions and innovations produce wealth

therefore public support is needed totherefore public support is needed toenable continued investment in R & D.enable continued investment in R & D.

In the globalized knowledge-basedIn the globalized knowledge-based

economy innovation is recognized as theeconomy innovation is recognized as the

key element for competitiveness andkey element for competitiveness and

economic growth.economic growth.


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Source: UNESCO E-ForumReport Sept. 2003


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The Technology Innovation process is not R&Dalone but a larger constellation of inter-

related issues. Indeed R & D may typicallyconstitute only about one-third of TechnologyInnovation in a country.

In todays world, true competitivenessrequires entrepreneurships that can establishstrong positions in niche market throughinnovative product and services.


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DEFINITION:DEFINITION:

National System of Innovation (NSI) has beendefined as the network of institutions in thepublic and private sectors that interact in theproduction, diffusion and use of new andeconomically useful knowledge.Innovation basically begins with research, andprogresses through the process ofdevelopment, design, engineering andproduction and ending with the successful

introduction of new products and/or processes.


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Elements of Good Innovation System (IS):Elements of Good Innovation System (IS):

Quality and quantity of Educational output

(Manpower and Research & Development).Innovation considered as the supply side of S & T

such that most technologies produced in Universities,Government or private laboratories are channelled tocreate businesses such that R & Ds provide quality

life for our people through products and servicesthat are knowledge-based and competitive.

Scientists empowered with entrepreneurial skills.

Networking of entrepreneurship and knowledgebase which lead to policies on knowledge andindustrial linkages


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GOVERNMENTGOVERNMENT

INDUSTRIESINDUSTRIES UNIVERSITIESUNIVERSITIES

Laissez-Faire option describes the model whereLaissez-Faire option describes the model whereUniv.Univ. IndustryIndustry GovtGovt. relationship are institutionally. relationship are institutionally

separated with strong borders dividing them.separated with strong borders dividing them.


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Incubators, patent, prototypesand pilot schemes


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The most common strategies used byeconomic developers include:

Research and development capacity,Technology transfer and other financial

and nonfinancial incentives.

Technology business managementtraining,Customized training facilities,Increased access to capital,Creating networking opportunities and

export


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Such integrated support employs the creation

of:Incubators,Science & Technology Parks, andClusters

Technology Incubation generally has theeconomic development goals of creating jobs andbuilding wealth by fostering the formation of newbusinesses.

Incubator use as most important in all the

strategies


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Technology Incubation as illustrated above is the final stage and link between theentrepreneur and knowledge outputs.


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Technology Incubation (TI) is a populareconomic development tool which has been

used by both the developed and developingeconomies to fast track local and regionaleconomic development.

It is an integrated support programme

provided by the governments, academicinstitutions and private sector, eitherindividually or in partnership, with theintention of creating and nurturing of budding

value-added and technology-basedenter rises.


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The incubation process begins with theThe incubation process begins with the

admission of a value-added technology basedadmission of a value-added technology based

enterprise into a Technology Incubationenterprise into a Technology IncubationCentre (TIC) and ends with graduation afterCentre (TIC) and ends with graduation after

two (2) to three (3) years.two (2) to three (3) years.

At the TIC, shared facilities At the TIC, shared facilities working spacesworking spaces,,

offices, hands-on management assistanceoffices, hands-on management assistance,,access to finance, networking/linkages toaccess to finance, networking/linkages to

knowledgeknowledge and exposure toand exposure to critical business,critical business,

technical, & legal support servicestechnical, & legal support services thatthat

enhance the success of enterprise duringenhance the success of enterprise duringincubation period are provided at subsidizedincubation period are provided at subsidized


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The scope of Technology Incubation ProgrammeThe scope of Technology Incubation Programme

is to nurture the development andis to nurture the development and

commercialization of:commercialization of:


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To facilitate the establishing andmanaging of Technology

Incubation Centres as well ascoordinating and regulating Technology Incubation activitiesand Science Parks which aredesigned to create and nurturetechnology based SMEs nationwidebased on value addition and ornew innovation in industrialproduction.


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Technology Incubation Centres are where theTechnology Incubation Centres are where the

development of the enterprises take place.development of the enterprises take place.

The first pilot Centre was established inLagos in 1993.

Next came Kano and Aba in 1994.

Today, there are a total of twenty five (25)approved Centres spread across the country(as shown below) out of which twenty one(21) have taken off and four (4) are in thepipeline:


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For Technology Incubation programme to succeed andFor Technology Incubation programme to succeed and

deliver the intended benefits of spawning SMEs for thedeliver the intended benefits of spawning SMEs for the

growth of the productive sector, certain basic andgrowth of the productive sector, certain basic and

essential requirements for best practices are required:essential requirements for best practices are required:

Technology Supply:

Commercially viable: R&D results,inventions and indigenousknowledge


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Infrastructure:

Appropriate incubation building facilityGood Access RoadSteady Power and Water SupplyQuality Control Laboratory

Central Workshop & EquipmentLibrary Services, ICTBusiness Service facilityIndustrial Safety


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Funding:

Adequate funding for infrastructure andManagement of the programmeVenture CapitalSeed Capital

Human Resources:

Quality Management/StaffQuality Professional Service Providers (Technical,

Legal, Commercial, Management/Accounting)Capacity Building opportunities

Linkages/Networking:KnowledgeCapital

National and International Liaison

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TIC FACTS ON THE GROUND SUMMARY

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FEDERAL GOVERNMENT:

STATE & LOCAL GOVERNMENTS

PRIVATE SECTOR

ENTREPRENEURS

RESEARCH & TERTIARY INSTITUTIONS

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NBTITICsTICs

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SCALING UP

FROM

R&D

TO

PR

ODUCT

FUNDING

INFRASTRUCTURE

Pre-

Incuba

tio

n

Technolo

gy

Incubatio

n

Products

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Poor funding for efficient running of the

programmeLack of adequate and appropriateinfrastructure

Poor commitment by stakeholder

Lack of technology or know-howPoor quality and quantity of output(manpower and R&D)

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Slow economic growth with more than 70.8% living on less than $1 aday

Weak economic sector resulting from import dependent economycoupled with absence of adequate control.

Development primarily measured by physical structure and less onhuman capital.

Lack of adequate framework for technology transfer

Linkages between Universities/Research Institutions and Industries arealmost at zero level.

The Universities/research institutions do not involve the industrial

sector in course design/industrial scheme hence not providingsufficient linakge needed to fill the requiste work experience in theindustrial sector.

Lack of realistic opportunities within the system

Absence of dedicate Technology and/or Innovation Fund to stimulateresearch activities including commercialization.

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5. Way Forward

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Pre-incubation are those preliminary activities bythe managers of the program prior to incubation

which are geared towards enhancing theprogram success.

Some of these activities include:

Data collection, assessment, analysis andcataloguing to ensure easy access to theto ensure easy access to the

required input data for incubationrequired input data for incubationTrial production - proto-types, pilot schemesto ensure commercial viability of product.to ensure commercial viability of product.

Capacity building support: to train prospectiveto train prospectivetenant entrepreneurs on how to preparetenant entrepreneurs on how to prepare

feasibility studies, and bankable proposals/feasibility studies, and bankable proposals/

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The Incubatee (Technopreneur) undergoes theprocess of mentoring through the provision ofcritical soft and hard infrastructures. These

include the following activities:

Technology Development Support Services tosource for and facilitate inputs of emergingtechnologies from universities/Research Institutionsinto products to improve their competitiveness.

Business Development Support Services Coaching,networking, sercretariat support, marketdevelopment, business information, financial adviseand consultancy.

R&D results, New Invention and Innovation sourcing

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To ensure sustained competitive growth of theTo ensure sustained competitive growth of the

graduated entrepreneurs, some interventiongraduated entrepreneurs, some intervention

measures are recommended to include:measures are recommended to include:Monitoring and evaluating performance,

Facilitating networking and linkage toknowledge base to encourage continuous

improvement in services and/or processes,Facilitating access to capital for businessexpansion

Encouraging graduated entrepreneurs toreturn to Centres from time to time to act as

mentors and positive role models for

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To increase the reach of TIP services toentrepreneurs who may not wish to relocate to a

TIC or who may just be too far away from a TIC, thefollowing activities are proposed:

Data collection to identify and classifyentrepreneurs and their technology needs,

Capacity building support workshops,conferences,

Professional support services (Technical, Legal,ICT, Management/Accounting, ...)

Facilitate Linkages/Networking with knowledge

base, capital, market, ...

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Encourage the establishment of Incubators atTertiary Institutions. Advantages include:

Proximity to R&DsEncourage product based research activities.

Promote entrepreneurship amongst theresearchers and students spawning the growth ofhigh-tech SMEs commercializing the R&Ds andhence revenue generation for the institution.

Resolve the issues of ownership with technologytransfer since the researchers would most likelybe the entrepreneurs and or be directlysupervising the commercialization.

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Encourage the establishment of ModelIncubation Centre in the six (6) zones and FCT

The poor state of infrastructure at theexisiting centres calls for the need toestablish a state-of-the-art TechnologyIncubation Centre with top-quality

management team and furnished/equipedwith all the requisite amenities for bestpractices to serve as model and resourcecentre for other centres and SMEs.

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TICTIC

CommonCommon

DesignDesignFacility CentreFacility Centre

Training &Training &ConferenceConference

FacilityFacility

CommonCommonMachiningMachining

Facility (FabFacility (Fab

Lab)Lab)

IncubationIncubationUnitsUnits

BusinessBusiness

CentreCentre

Quality ControlQuality ControlLab.Lab.


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Establishing Innovation Fund.Establishing Innovation Fund.

To provide much needed funding supportin form of grant for the scale-up of theindigenous knowledge, R&D and inventionsto value-added commercial products.

This is because scaling up R&D and inventiveactivities are generally high risk and unattractive tocommercial banks. Thus for the program to succeed,other funding schemes, as obtained in other countries(China, Israel, Malaysia, etc) have to be devised.

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There is urgent need to establish aThere is urgent need to establish a

comprehensivecomprehensive Science, TechnologyScience, Technologyandand InnovationInnovation ((STISTI) policy for the) policy for the

nation to provide the overall policynation to provide the overall policy

framework within which all actors/framework within which all actors/

stakeholders will operate.stakeholders will operate.

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Encourage the establishment of Technology parksas integral part of Technonoly Incubation Program

Advantages include:

Permanent site for relocation of graduates of theprogram,Will provide warehouse for incubators as well asserve as innovation hub,

Cluster formation of enterprises producing similaror related products where external economies of

scale exists and collective productivity gains can becreated through joint actions and networkingfostering competitive advantage.

Provision of extended service support gearedtowards service/product improvements to ensure

competitive growth of the enterprises.

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Pre-Incubation:Pre-Incubation:Facilitating Proto-Facilitating Proto-

typing,typing,Pilot SchemesPilot Schemes

R&DR&D

CollaborationCollaborationR&D ResultsR&D Results

InnovationsInnovations

FacilitatingFacilitating

R&DsR&Ds

CommercializedCommercialized

ProductsProductsCommercializedCommercialized

ProductsProducts

CommercializedCommercialized

ProductsProducts

Feed-BackFeed-Back

R&D ResultsR&D Results


R&D Results.R&D Results.


Proto-typingProto-typing

Pilot SchemesPilot Schemes

Feed-BackFeed-Back

Feed-BackFeed-Back

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TERTIARYINSTITUTIONS

INDUSTRIES

RESEARCHINSTITUTES

TECHNOLOGYINCUBATION

CENTERS

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institutional mechanisms for research institutions/industry linkages: technology incubation...

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