1. “Research Commercialization: The role of SMEs & International Organizations” International Conference on Promoting R&D in North Africa July 2008, Rabat, Morocco
Vladimir Kozharnovich
Senior Industrial Development Officer
Investment & Technology Promotion Branch UNIDO

2. Technology & the Economy
Economists agree that the creation and diffusion of technological knowledge is at the heart of economic growth
At least two-thirds of per capita economic growth is due to technology
Technology provides the impetus for economic growth
Technology-based economic development focuses on enhancing the discovery, development, commercialization and adoption of technology
Economic growth is the function of capital and labour, which is influenced by technology
Innovation will be the single most important factor in determining a country’s success in the 21st century
Over the next 6 years, products representing more than 70 percent of manufacturers’ sales today will be obsolete due to changing customer demands and competitive offerings
The key to higher standards of living and job creation is the extent to which innovative ideas and technologies are embedded in services, products and manufacturing processes

3. Key Determinants of the 21st Century
Knowledge is now recognized as the key to determining competitiveness in the 21st century, which emphasizes the role of information, technology and learning in economic performance.
A key feature in the 21st century is that economic development rests upon knowledge and its useful application.
Today’s most technologically advanced countries are truly knowledge-based. By creating new knowledge and its commercialization, they create millions of knowledge-related jobs and thus generate new wealth from their innovations.
The term of “knowledge-based economy” results from a fuller recognition of the role of knowledge and technology in economic and social development.

4. Challenges and Opportunities of the 21st Century
Markets are becoming increasingly global and knowledge-intensive.
Industries and sectors are constantly being reshaped through these global forces and the knowledge push – even those which have been around for millennia, such as the agricultural, fishery and forestry sectors.
Only by raising the knowledge capacity of firms, can we base their competitive advantage on providing best new products, processes and services in the world.
This is why the true factor of competitiveness lies in our brains and in our creativity. It is “knowledge” in the broadest sense of the word.

5. Challenges and Opportunities of the 21st Century
The great challenge will be to use technology for growth and profitability. Controlling technology will be the competitive edge of the future.
If a country is to play a substantive role in sustainable and competitive manufacturing in the future, its industry must become proactive in developing a strong self-sustaining innovation capacity to meet customized concepts for high value added sustainable use and production.
Many important aspects of future manufacturing will also create pressure to change the established structures of industry.
A further need is for a change in the format of science education to encourage acquisition of the necessary knowledge and skills.

6. Challenges and Opportunities of the 21st Century
Businesses must become more responsive to radical advances, adopting more flexible and intelligent systems for production and people management.
In a world facing inevitable rises in resource costs, they must embrace the concept of sustainability, recycling and reuse.
They will also be required to co-operate in the setting of objectives for sustainable manufacturing, and to support industry by establishing roadmaps with quantifiable objectives and developing more effective tools for the assessment of sustainability.
With such solid government-research-industry collaboration, anticipative competence building and a strongly life-cycle-oriented production-consumption pattern could do much to fulfill the objective of making a country as being a world’s competitive knowledge-based economy.

7. Trends in Science & Technology
The continuing diffusion of information technology and new applications of biotechnology will be at the crest of the wave. IT will be the major building block for international commerce and for empowering non-state actors.
The integration – or fusion – of continuing revolutions in information technology, biotechnology, materials science and nanotechnology will generate a dramatic increase in investment in technology, which will further stimulate innovation within the more advanced countries.
Older technologies will continue lateral “sidewise development” into new markets and applications through 2015.

8. Trends in Science & Technology
Biotechnology will drive medical breakthroughs that will enable the world’s wealthiest people to improve their health and increase their longevity dramatically. At the same time, genetically modified crops will offer the potential to improve nutrition among the world’s one billion malnourished people.
Breakthroughs in materials technology will generate widely available products that are multi-functional, environmentally safe, longer lasting, and easily adapted to particular consumer requirements.

9. Failures of the Technology Market
Technology market is imperfect and it often violates the assumptions of the free market paradigm:
Externalities - technology research spillover exists (unless technologies are protected by patens or IPR measures)
Restricted competition - technology trades are restricted due to huge upfront investment and years of operation before a positive cash-flow
Asymmetry, incomplete or imperfect technology information - in spite of modern communication means
Use of technology requires development capabilities - both technical and organizational
Costly technology search
High degree of risk and uncertainty in absorbing technologies

10. Barriers to Technology Transfer
Lack of access to information on new technologies and innovations
Inadequate institutional infrastructure, management and marketing human skills
Organizational rigidities within the firms themselves
Limited access to finances
Regulatory constraints
Inefficient R&D institutes and disconnection from needs of industry
Inadequate human resources and mechanisms for their upgrading
Lack of resources, knowledge and capabilities within policy institutions
Low efficacy of government support schemes
1. Industrial Governance
-Industrial Policy Formulation & Implementation
-Statistics and Information Networks
2.Investment and Technology Promotion
-FDI, Technology & Know How Transfer to
Developing Countries
-Networking
3.Quality and Productivity
-Metrology, Standardization Certification and Accreditation
-Continuous Improvement & Quality Management
4.Business Development
-SMEs Policy Framework
-Women Entrepreneurs: Policy
-Entrepreneurship Development

11. Needs in Industry/Research Partnerships
SMEs are normally short of the existing R&D facilities due to high cost of research, whereas R&D institutes generally possess these in abundance.
SMEs cannot manage all new technologies due to multidisciplinary nature of innovation projects and R&D institutes can provide this knowledge and competence.
SMEs need an objective partner in monitoring technological advances, testing of new products, international standards, etc. enabling to manage the technological change in time so that to be competitive at the international market.

12. UNIDO Technology Promotion Programme National Innovation Systems
New and enabling technologies (bio-technology, ICT, new materials)
Technology Foresight
Technologies for the Poor
Technology Centres
Technology Parks
Investment and Technology
Components
National Innovation Systems
Promoting enabling and new technologies to address critical social and economic problems for poverty reduction and achievement of MDGs

13. National Innovation System
Government
R&D
Business
Organisations
Firms
S&T
Structure
Market
Place
Productive
Chains
Financial
System
Learning & Education
System
Conformity
System

14. Strengthening National Innovation System
Process
Level
Needs
Services
Programmes
Technology Diffusion
Government
Policies Strategies Action-plans
Advisory
Awareness building
TF TRM Needs Assess.
Institutions
Capacity Networking Sustainability
Capacity building Tech. Promotion Links to market
ITCs TPs Needs Assess.
Technology Transfer
Enterprises
Knowledge Know-how Management
Partnership (ITPOs) Capacity building TM
BAs Needs Assess.

15. Technology Related Tools & Methodologies
Technology Needs Assessment Manual and reporting software system
UNIDO Manual on Technology Transfer Negotiation and Training Kit
Training Package on Technology Management
Guidelines on Business Alliances
Guide on Joint Ventures
UNIDO BOT Guidelines
UNIDO’s Subcontracting System

16. A holistic approach Quality Upgradation A holistic approach Technology
Market Access
Quality
Upgradation
A holistic approach
Capacity Building
ICT Application
Environment
Waste Minimization
Skill Upgradation

17. Global Forum Activities
Research and Publications
Technology Trends Assessment
Investment paper series
UNIDO’s industrial investment perspectives
Ranking of African countries investment attractiveness
Tools, Guidelines and Manuals
COMFAR (environmental assessment)
Technology Needs Assessment
Technology Roadmapping
High-Tech Park Guidelines
Conferences & Policy dialogue
Technology Foresight/Roadmapping
Management of Technology
Afripanet
Networking
ITCs, ITPOs, IPAs, SPXs, Exchange

18. R&D Institutes: New Global Setting
Increased financial, trade, investment and technology flows.
Rapid and accelerating technological progress, including ICTs, biotechnology, new materials, electronics, robotics.
New managerial and organizational systems.
New international rules and regulations: trade, quality, environment, intellectual property rights.

19. Present Performance of R&D Institutes
Technology push and supply-driven approach
Absence of marketing mechanism
Largely disconnected from the needs of industry
Weak international linkages
Limited knowledge of international best practice to improve competitiveness through technology upgrading and technology support services to industry 10

20. Global competition is getting fiercer
Major Reasons For Revitalization of R&D Institutes: Challenges of Industry
Global competition is getting fiercer
Cooperation and strategic alliances are now essential
Flexibility is becoming increasingly necessary in order to adjust to rapid technological pace and changing costumer demands
Quality requirements are higher than ever 2

21. Motivation for Encouraging Revitalization
Seek out new sources of finance
Eestablish links with the productive sector and increase industry expenditures through improved services to enterprises
Exploit the centres’ S&T capabilities on the national and international stage
Upgrade the performance and international competitiveness
Strengthen S&T infrastructure & improve networking capabilities 9

22. Types of Support Services
Formulation of new vision and strategy
Development of new management tools
Advice and assistance in policy formulation
Development of funding mechanisms
Introduction of marketing and project management tools
Benchmarking and training 3

23. Focus Areas in Specific Services
Innovation mechanisms
S&T funding systems
Best practices in management & marketing
Networking & collaboration
Vision and strategy development
High level policy advice 4

24. Strategy Process
The process starts with a diagnosis of selected R&D institutes followed by the formulation of a joint with industry vision and business plan for technology promotion and provision of technical support services to industry.
The implementation of strategies on commercialization of new technologies and innovations by industries and their support institutions are at the core of the process.
The government policies focus on key elements of the innovation and learning support system: global business linkages, development of skills, incentives, technological efforts, entrepreneurship, SMEs and infrastructure.
Joint programmes with focus on strengthening the relations between the support system and industry, including linkages with external knowledge partners and business and between research and the education institutions.

25. Recommendations for Improving Performance
Develop vision and strategy based on rapidly changing economic environment
Improve and adjust organizational structure & strengthen management system
Design funding mechanism
Apply best international marketing practices
Implement project management system
Undertake market needs analysis
Improve negotiation skills 8

26. Cultural Transformation Adopt Best Practice Organizational
ITP: Strengthening Research – Industry Links (Revitalization of R&D Institutes)
Cultural
Transformation
Vision
Leadership
Adapting and responding to
the external environment.
Legal,technological, environmental, political,
regional and national institutions,
commercial,
financial,
international,global
Business Process
Engineering
R&D
Institutes
R&D
Institutes
Adopt
Best Practice
Organizational
Restructuring
Introduce
New Services
Benchmarking
Adopt Best
Strategies
Become a Learning
Organization
IT Systems
Quality
Management
Management
Support Services
Innovation
Management
Networking
Fund Raising

27. Leading change processes -towards revitalisation
ITP: Strengthening Research – Industry Links (Revitalization of R&D Institutes)
Approaches
Actions
IPT
Services
Cultural
Transformation
IT Systems
New Vision
& Leadership
R&D
Institutes
Business Process
Engineering
Quality
Management
Organizational
Restructuring
National Innovation System
Management of
Supp. Services
Benchmarking
Adopt Best
Strategies
Innovation
Management
Adopt
Best Practice
ITP as
facilitator
Become
a Learning
Organization
Networking
Leading change processes
-towards revitalisation
Fund Raising
New Services
& Activities

28. The Role of International Organizations in Technology Cooperation
Ensure transparency
Provide technology options
Ensure independent evaluation and selection of right technologies
Provide support services through UNIDO tools and methodologies
Strengthen trust between technology owners and recipients
Decrease financial risks in the transfer of technology
Develop multiple partnerships for sustainability

29. UNIDO Experiences and Instruments
19 Investment & Technology Promotion Offices (ITPO)
9 International Technology Centers (ITC)
48 Subcontracting and Partnership Exchange (SPX) Offices in 28 countries
34 National Cleaner Production Centres
Tools and methodologies, including software, for:
Investment & technology promotion
Technology transfer
Technology needs assessment
Entrepreneurship development

30. INTERNATIONAL TECHNOLOGY CENTRES (Ongoing Projects)
International Centre for Science and High Technology (ICS, Trieste, Italy)
International Centre for Advancement of Manufacturing Technology (ICAMT, Bangalore, India)
International Centre for Small Hydro Power (ICSHP, Huanzhou, China)
International Centre for Promotion and Transfer of Solar Energy (ISEC, Lanzhou, China)
International Centre of Hydrogen Energy Technology (ICHET, Istanbul, Turkey)
UNIDO-Shanghai International IT Technology Promotion Centre (Shanghai, China)
UNIDO-Shenzhen Environment Technology Promotion Centre (Shenzhen, China)
International Centre for Materials Technology Promotion (ICM, Beijing, China)
Russia-Brazil Centre for Technological Cooperation

31. Russia-Brazil Centre for Technological Cooperation: Results
The Centre transferred the technology allowing to prepare geophysics airborne surveys based on use of gravimetry, gamma-spectrometry and magnetometry for exploration of oil and gas resources.
The project allowed to:
Enable the Brazilian institutions develop a technology cooperation projects with relevant Russian institutions and enterprises
Facilitate the technology transfer process
Deploy the technologies in Brazil through:
Creation of a national company
Transfer and installment of equipment
On-job training of around 120 technicians
Preparation of guidelines for operation and maintenance of equipment
Reduce the risk of investment and stabilize the funding process
Ensure the high quality of services
Increase the trust between the partners
Develop new technology transfer project proposals for future cooperation

32. Future of Technology Cooperation: Goal & Objectives
To enhance international cooperation in technology commercialization and transfer between the countries for the sustained growth and partnership
Objectives:
Act as a catalyst for knowledge-based development
Increase capacities of science and technology institutions on innovation and technology commercialization
Effective and efficient utilization of available science & technology by industry
Increase productivity and industrial competitiveness of enterprises through international technology exchange
Increase trade and investment flows between the countries

33. International Programme for Technology Commercialization & Transfer: Functions
Assessment of needs of industry in new technologies and technology markets
Diagnostics of technology sources, institutions and transfer systems
Technology valuation and Intellectual property
Mobilization of funds
Business plan development
Catalyze, support and facilitate concrete UNIDO programmes
Capacity building programmes for technology commercialization and transfer
Technology intermediary and technical support services
Development of technology inventory, database and networks
Advice on technology development policy

34. Expected Response from the Business Community
Access to technology resources
Availability of expertise
Provision of information on technologies needed
Confirmation of technology ownership
Identification of transparent conditions for technology transfer
Support in access to financial resources

35. Preconditions for Success
Political support & endorsement from the country leaderships
Technological cooperation as agenda of high-level political dialogue in participating countries
Consensus on Technology Partnerships
Active involvement of business & scientific communities

36. Thank you ...for your attention. Vladimir Kozharnovich
Senior Industrial Development Officer
Investment and Technology Promotion Branch
UNIDO Phone: /3702
Fax: