Growth through Innovation An Industrial Strategy for Shanghai By Shahid Yusuf Kaoru Nabeshima April 22nd, 2009
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- Table 5.43: Technological Transfer from Universities (Science, Engineering, Agriculture and Medicine)
- Total 329 170,630 123,342
- By Type of Technological Transfer
- Table 5.44: Technological acquisition and Transfer by Natural Science Research and Technology Development Institutions (2006)
- Table 5.45: Technical Contracting in Shanghai, 2006
- Table 5.46: Technical Contracting in Shanghai, 2006
- Table 5.47: Areas of Technical Contracting in Shanghai, 2006
- Table 5.48: Technical Contracting in Shanghai, 2006
- Table 5.49: Flow of Technical Contracting in China, 2006
V. University Industry LinkagesBoth universities and firms are important components of a national innovation system. With globalization and intensifying competitive pressure, many countries are now seeing the collaboration between universities and industrial sector as a means of spurring innovation.118 The experience from the United States shows that productivity in terms of innovation increases when there is a joint venture between universities and firms (Darby, Zucker and Wang 2003).119 National and local governments have introduced a number of schemes to encourage key universities to increase research and to engage with firms so as to stimulate innovative activities in their locale. Shanghai is no exception. There are two broad vehicles for university-industry linkages in China. The first consists of the traditional mechanisms such as licensing, consulting, and collaborative R&D activities. This was formally encouraged by the establishment of six state technology transfer centers in key universities. Shanghai Jiao Tong University (SJTU) is one such center. The other vehicle is the establishment of university start-ups and spin-offs, in many industrial subfields few of which are high tech (K. Chen and Kenney 2007).120 Often these university enterprises were established to supplement a university’s budget and to absorb surplus university personnel although this practice is declining (Wu 2007).121 Fudan University and Shanghai Jiao Tong Universities are the two premier universities in Shanghai. Their technology licensing revenue in 2003 was 73.3 million yuan for Fudan and 224.5 million yuan for SJTU (Wu 2007). The state technology transfer center at SJTU has branch offices in the Yangtze River and Pearl River Delta regions, to extend their reach. Fudan University established a Commercialization and University Enterprise Management Office to promote spin-off activities. By 2003, there were more than 100 spin-off firms managed by the office. Some have gone public such as Fudan Fuhua Pharmaceuticals and Shanghai Fudan Microelectronics Company Limited, an IC firm. SJTU also has a number of spin-off firms, Angli Ltd., being the most well-known. Both universities find that the absorptive capabilities of local domestic firms, especially that of SMEs to be weak. These universities engage with MNCs mainly through joint R&D efforts, often focusing on the localizing of foreign technologies for the Chinese market (Wu 2007). In 2007, the contract value of technologies transferred by universities in Shanghai was 171 million yuan (see Table 5 .43). About quarter of this contract income is from the sale of patents. State-owned enterprises are the most frequent users of the technology developed in universities, followed by private enterprises. Foreign firms are not actively involved in university-industry linkages since they can draw on the parent firm’s expertise, the expertise of buyers and suppliers, and in-house research centers with the relevant specialized skills. Table 5.43: Technological Transfer from Universities (Science, Engineering, Agriculture and Medicine)
Source: Shanghai Science and Technology Yearbook 2007 A shortage of promising new startups is one constraint which is compounded – albeit to a diminishing extent – by the limited availability of venture financing for the riskier firms. Many start-ups, and even the spin-offs rely on personal and family financial resources for the seed capital (Wu 2007).122 Public research institutes in Shanghai are becoming more actively engaged in technology acquisition and transfer. In 2006, the total amount expended on acquiring technologies was 25 million yuan (see Table 5 .44). This amount is almost equally divided in between natural science and engineering. These institutes also received 570 million yuan from technology transfers. More than three quarters of the revenues come from technology transfer in engineering, followed by natural sciences and medical science (see Table 5 .44). Clearly the comparative advantage in engineering is substantial. Table 5.44: Technological acquisition and Transfer by Natural Science Research and Technology Development Institutions (2006)
Source: Shanghai Science and Technology Yearbook 2007 A total of 28,191 technical contracts were issued in Shanghai, valued at 34 billion yuan (see Table 5 .45). This represents a significant increase over the 23,816 technical contracts signed in 2001. The largest single type of contract in terms of value was in the area of technology transfer, followed by technological development, however, the majority of contracts were for services. Table 5.45: Technical Contracting in Shanghai, 2006
Source: Shanghai Science and Technology Yearbook 2007 Closer inspection of the purpose of such technical contracts reveals that industrial promotion has the largest share (see Table 5 .46). Within industry, electronics and information technology dominate other areas. Advanced manufacturing technology was second ranked and medicine and medical equipment came third (see Table 5 .47). Table 5.46: Technical Contracting in Shanghai, 2006
Source: Shanghai Science and Technology Yearbook 2007 Table 5.47: Areas of Technical Contracting in Shanghai, 2006
Source: Shanghai Science and Technology Yearbook 2007 Shanghai is still at the intermediate stage of industrialization and firms are attempting to upgrade technology. When these firms seek technological support they look to – public research institutes and universities to identify and adopt new technologies to meet their requirements. Therefore, the resulting intellectual properties tend to be trade secrets (since these technologies would be rather firm specific) and computer software (which are most likely embedded software either for machinery or the final products, see Table 5 .48). Only a few result in patents since not many firms are engaging in development of new technologies. This is also consistent with the fact that majority of the entities seeking technology are SOEs and local private firms that have limited in-house R&D. Foreign funded firms, tended to rely on parent firms for localization and adaptation of technologies, although more of them are entering into contract relationships with local public research institutes and local universities. Table 5.48: Technical Contracting in Shanghai, 2006
Source: Shanghai Science and Technology Yearbook 2007 The majority of the technical contracts entered into originated in Shanghai, followed by the neighboring provinces of Jiangsu and Zhejiang (see Table 5 .49). In addition, there are a large number of contracts (and in terms of the value, the second largest), coming from abroad. This may reflect the business accruing to the increasing number of R&D centers run by foreign firms.123,124 Since R&D activities are typically associated with activities of the parent firms instead of affiliates, these contracts may be classified as “foreign” in origin. It appears that Shanghai is on the threshold to becoming a regional innovation hub for industrial research, a promising development which if it does materialize, should benefit local industries. Table 5.49: Flow of Technical Contracting in China, 2006
Source: Shanghai Science and Technology Yearbook 2007 Private initiative was one part of the story, government support for R&D and demand for high tech products was the crucial second part. Abundant government funding and encouragement was critical to the coalescence of the Silicon Valley industrial cluster. It was government support spread over decades (much of it motivated by defense related spending), that provided the essential underpinnings for the mixed public and private tertiary education and research ecosystem which has sustained Silicon Valley’s legendary technological dynamism and ability to transition from one type of technologies to the next. This ecosystem is now a vast and vibrant service industry in itself employing large numbers of people and is tightly linked not only to firms in the Valley and California but also to services, venture capital providers, and industries throughout the United States and in India, Taiwan (China) and Israel to name some of the most prominent (Bresnahan and Gambardella 2004). Directory: curated curated -> Concept stage curated -> Concept stage curated -> Republic of Côte d'Ivoire Urbanization Review curated -> Report No: aus11011 Central America curated -> Report No. 94474-pk fiscal Disaster Risk Assessment Options for Consideration curated -> Environmental and Social Management Framework for the Costa Rica Telecommunications Sector Modernization Project curated -> Environment Impact Assessment For Jiangxi Shangrao Sanqingshan Airport Beijing Guohuantiandi Environmental Technology Development Center. Ltd. Oct. 2012 Content curated -> Report No: 70178. People's Republic of China curated -> Making Nutrition Policy Central to Development Understanding the Political and Institutional Conditions for Policy Change Case Study of the Political Economy of Nutrition Policies in Ethiopia Prepared By Download 0.88 Mb. Share with your friends:
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