The purpose of this essay is to elaborate the alignment between university and industry to develop business based on science. It will include the environment of collaboration between firms and universities. There are negatives views of aligning research result from universities to industries however research also show that the benefits come from this activities. Industries depend on universities in many cases and universities generate earning by commercialization of their research.
Key words: universities, industries, collaboration, commercialization, business
Washburn Jennifer (2005) implies that university began to utilize their asset and knowledge more aggressively since 1975. There was an energy crisis in that period. Therefore, the government reduce its research and education expenditure. It creates the problem for universities since that it was impossible to reduce or stop teaching and researching activity.
Industries demand especially in technological consultancy (Salter & Martin 2001). The role of universities can be seen in the following table:
Importance to Industrial R&D of Sources of Information on Public R & D (Including University research
|Information source||Rating it as ‘very important’ for Industrial R&D (%)|
|Publication and reports||41.2|
|Meetings and conferences||35.1|
|Cooperative R&D projects||17.9|
Source: Cohen et al (2002) in Mark Dodgson (2007)
This table shows that the highest ratings of industries demand on universities are publication and reports at 41.2 percents and 31.8 percents for consulting. It implies that the majority of demand from industries to universities’ research is in publication and reports. Industries also believe that meetings and conference are also important at 35.1 percents. However, only 17.9 percents of cooperative R&D projects regarding that it is the significant contribution to both party.
Moreover, Washburn (2005) implies that commercialization of research outcome from universities brought some negatives respond from inside universities and society. Industries claimed that they had pay taxes and they have a right to access every data and information from university. In many cases scholars afraid that it would have a negative impact and conflict of interest.
A researcher from a university received a huge amount of money to conduct the research on the impact of smoking from a company, which produce cigarette. The result was that there were no scientific data to support that smoking can create heart disease. People were easy to influence with this misinformation and the cigarette company support the result with big campaign. It creates more problems for society and university’s community.
Another example is the case of UC Berkley and Novartis coalition in early 80s. They were engaging in cooperation on biotechnology although the majority of the fellows did not support this cooperation.
However, learning and researching require a lot of money. It is almost impossible to support all academic activity and human resources expenditure properly with government subsidizing. More over, the process of patenting the technology also required sufficient financing that could not be support completely by government funding and sometimes the processes take a long period of time. It need 4 to nine years for the product of technology to be granted of patent in Indonesia. In this period researcher must prepare with sufficient budget to get the product tested and confirmed that this particular product has under no circumstances been patented.
The research shows that universities play the important role in inventing and developed technology which commercialized by industries. There are some product which are used by people come from university.
We are now live in biotechnology era where many scientists from universities try to develop vaccines, devices or super quality plant to make our life more comfortable and easier. Most of scientists work in-group or network. It is not common to work individually to achieve high standard of medicine, for example.
OECD research (2001) shows that innovation is a key driver to achieve economic welfare. OECD countries engage their mutual need by innovation. Every nation develops its own competitive strategy but they have good connection. Developing countries should keep up with this speed if they do not to left behind. Therefore developing countries has to accommodate the new way to catch up and meet economic welfare with competitive advantage.
The three stream of universities has come to operate in Indonesia. We call it Tri Dharma Perguruan Tinggi or three dedicated function of higher education. The major goal of universities is to educate people. The Education function of university is vital. The second function is research activities which enrich the teaching activities. The third function is more to socio and economic part. Universities should benefit their stakeholder, employment market and cultural structure of community.
Furthermore, science and technology are the major part in innovation. Most of developing countries equip with limited budget to support their research and development so they are lack of knowledge in science and technology. More over many companies with global network are rarely using the R&D from domestic countries. They are using the process or technology from their principal. However, there are small number of universities have good relations with industries and they can produce good financial result and people got benefit from this.
The role of patent is also important to view the contribution of universities to economic development. Intellectual Property (IP) management are vary between countries and only small number of patents success to reach market. In other side, the highest level of IP granted occur in develop countries such as the USA and Japan. The protection awareness take a chief portion in these communities which still in early stages for many countries in Asia.
Besides universities should have a very high standard to involve in business. Some cases show that certain university tend to get over their academic authority in doing business. “University is not for sale” was one of the flyer in a demonstration in UC Berkley when they reject the plan of their fellows to have a cooperation with Novartis. It is true that not everything can be sold by universities. They have to consider many aspects.
Since the oil crisis in 1974 government in many countries decline their budget for non-profit funding such us R&D finance and universities. Government assume venture on distribution, health or transportation are more important than in education or research which have non direct effect to the welfare of people. This lead universities have to self sustain to keep their education performance.
Moreover there are an increasing share of industry to university R&D in the form of joint project, contract or financing of researchers. Universities provide not only with high standard of intellectual people but also with high-tech laboratories which required from government budget so it is much cheaper if they could provide by their own. Researcher also benefit with this collaboration in order to finance their research.
- What are the most important features at the question as they apply to developing business from sciences
How should university commercial their research outcome
What aspect that industry want to collaborate with univerties
Influence to social
To balance between education and commercial activity
There are economic value and social competence to be considered to develop business from science. It is not only how the rules and regulations should be done in order to have a business going well but also the important factors are the supporting facility and social capacity. Universities and research institute consist of people with ethic and value. The flow of the creation of invention should not violate this value. However, it is consider that creativity comes from the freedom of mind. Consequently, societies should develop productive environment not only for university/research organisation but also for industry side. University should has its own authority in order to gain the highest standard of higher education.
Business need to earn profit. Moreover business require conducive atmosphere internally and externally. It is hard to make profitable activity with unstable situation or without government guideline.
Government also play important role in delivering business from sciences. It require a lot of money to provide business and research with resources like electricity, water supply and transportation. Research conducted by in West Java shows that it has a significant relation between infrastructure and the capability of university to contribute to society. Regions with sufficient water resources and electricity are more aggressive in achieving the economic advantage than regions with insufficient resources
Market is other factor that required to develop business from science.
University and research institute
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