1 Strategic Alliances Between Universities and Industries Enhancing Cooperation The 5 th CRISU-CUPT Conference “Higher Education for the ASEAN Community in the 2 nd Decade of the 21 st Century Challenge and Opportunity” July 7-9, 2010 Chiang Mai, Thailand Assoc. Prof. Dr Sanguan Vongchavalitkul Dr.Busaya Vongchavalitkul Vongchavalitkul University, Thailand

2 Introduction Industries face new challenges to maintain their competitive advantages such as  rapid advancements in technology or  consumer behaviors change (Baby boom, Gen –X, Gen –Y) There is an increased need for university-industry alliance to develop more commercially management practices which are able to add value to industrial technology (Phibin, 2008). Moreover, Dooley and Kirk (2007) states that university-industry collaboration can help build new technology capability.

3 Introduction (Cont) Thus, universities should rethink the effective process-based models that can help both universities and industries to undertake contact research programs to satisfy their requirements.

4 Strategic Alliance A strategic alliance is “a voluntary, formal arrangement between two or more parties to pool resources to achieve a common set of objectives”. Strategic alliance involves exchange, sharing or co- development of products, services, procedures and processes (Serrat, 2009). Strategic alliance can be effective ways (Elmuti and Kathawala,2001):-.  to diffuse new technologies rapidly,  to enter a new market,  to bypass governmental restrictions expeditiously,  to learn quickly from the leading firms in a given field

5 Benefits for universities and industries 1.Achieve or ensure global competitive advantage. 2.Increasing need for innovation in product and processes 3.Lower R&D expenditure 4.Knowledge and technological transfer opportunities

6 The next slide will show the collaboration process

7 Terrain Mapping - Collaboration opportunity landscape - Share common perspective - Identifying needs - Developing mission statement - Identify common goals UNIVERSITY 1. Identifying Policy/Needs of the Industry 2. Identify Benefits of Cooperation 3. Provide Resources 4. Learn More about Industry Proposition Stage - Prepare written agreement - Document goals - Identify success measures Initiatio n Research proposal requirements Timeline Personnel requirements Other resource requirements Deliver y - Research Activity - Special projects Evaluation - Evaluate the project performance - Assess the extent of project success - Through the success measures INDUSTRY 1. Identify Needs of the University 2.Identify Benefits of Cooperation 3. Provide Resources 4.Learn More about Academia Figure 1. Industry-university collaboration process (adapted from Elmuti et al., 2005: Phibin, 2008 )

8 Santoro (2000) and Dooley & Kirk (2007) explains that industry-university strategic alliances encompass four highly related components:-  1) Research support  2) Cooperative research  3) Knowledge transfer  4) Technology transfer

9 1.Research Support: - Endowment Funds 2.Technology transfer: - Product development and Commercialization activities through university research centers 3. Knowledge Transfer: - Hiring of Recent Graduates - Personnel interactions - Institutional programs - Cooperative education 4. Cooperative Research: - Institutional agreements - Institutional facilities - Informal interactions The Channels of Industry- University Alliances University - Funding of professors time - Funding of research staff - Access to industry resources - Access to industry knowledge - Access to industry contacts - Research papers published - Masters’ thesis and Doctoral Dissertations - Patents, licenses, and non- patented, non-licensed products and processes Benefits/Outcomes Industry - Access to base scientific competence - Access to knowledge that has been developed within the research center - Access to innovative background/side ground knowledge & data - Access to rich sources of highly skilled researches - More cost-effective - Patents, patent application licenses, and non-patented, non-licensed products and processes - Innovation product Universities and Industries Performance Drivers of Innovation 1. Rate of knowledge development 2. Speed of Knowledge Transfer and Exploitation Figure 2. The dynamics of industry-university alliances and benefits/Outcomes (adapted from Elmuti et al., 2005: Dooley & Kirk, 2007; Jason Rutter, 2010)

10 What does it take for strategic alliance to succeed? 1.Partner selection 2.Clearly defined, shared goals and objectives 3.Senior management commitment. 4.Effective and strong management team 5.Good communications 6.Frequent performance feedback

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