Bridging the Gap between Academia and
the Industry: The Role of Academic
Entrepreneurship
Amirul Shah Md Shahbudin, PhD
Deputy Dean
Academic, Students & Alumni
School of Management
Universiti Sains Malaysia
11800 Penang, Malaysia
Knowledge Age
Universities and high schools become the
raw material of economic development as
coal mines were the raw material of the
industrial age !
The 21st Century Context for Linking
Universities and the Economy
• The Knowledge Economy – A world-wide phenomenon
• Knowledge – The new raw material driving innovation,
competitiveness, and economic development
• “Economic success is no longer determined by possession (e.g., of
raw materials or physical prowess), but by capacity to generate new
knowledge and by the ability of the workforce to apply this
knowledge successfully” (M. Walshok, Knowledge Without Boundaries, 1995)
The Role of Universities
in Disseminating Knowledge
• Develop effective and close co-operation between universities
and industry
• innovation
• start-up of new companies
• licensing of university intellectual property
• promotion of effective university-industry relations
• better exploit the results of their knowledge in relationship with industry
• evaluation criteria for the performance of universities
Success Factors for Technology Transfer
Academic
Business
Government
Community
Talent
Technology
Capital
Know-How
Market - Need
Successful
Value-Added
Technology Transfer
G. Kozmetzky
UT-Austin
Ecosystem
Investors’s
Lawyers
Head
hunters
Other
start-ups
PR agents
Patent
Firms
Real
estate
Accountants
Leasing
Brokers
Itinerant managers
Consultants
Banks
Students
But Government
why does the government invest in research?
Reservoir of
Knowledge
Funding of
Basic Research
In Academia
Increased
Efficiency
New
Industry
Taxes
Science, The Endless Frontier, 1945
New
Companies
(Jobs)
Vannevar Bush
Reservoir Theory of
Knowledge
The Business of Academic Research
Federal dollars
to Universities
have continued
to climb, even
while falling in
other sectors
Source: National Science Board Report 2002
Traditional academic roles
• Research
• Creation of new knowledge
• Breakthroughs and basis research (about half of all basic research in U.S.
conducted by universities)
• Incremental technical advances
• Education
• Dissemination of knowledge
• Graduation of students
• Service
• Transfer of knowledge and transfer of technology
Definition of Entrepreneurship
Entrepreneurship refers to an individual’s ability to turn ideas into action.
It includes
• creativity,
• innovation and
• risk taking,
• as well as the ability to plan and manage projects
in order to achieve objectives.
This
• supports everyone in day-to-day life at home and in society,
• makes employees more aware of the context of their work and better able to seize opportunities,
• and provides a foundation for entrepreneurs establishing a social or commercial activity
•
Overview
Entrepreneurship is not sufficiently integrated in the curriculum of HEIs
• The majority of entrepreneurship courses are offered in business and economic studies
• Chances of being exposed to Entrepreneurship Education are higher when the student is
enrolled in a business school or a multidisciplinary institution with a business school.
• More than half of the student population in Asia do not have direct access to
Entrepreneurship Education
•
Practical Data
Only 1/4 of specialized and 1/3 of multidisciplinary institutions without a business school
offer entrepreneurship
• Entrepreneurship most commonly offered to undergraduate or graduate students, fewer
courses for PhD students
• Entrepreneurship education is still at the infancy stage: often person driven and
depending upon the efforts of individuals
• In only 20% of HEIs the teaching staff must undergo training in order to teach
entrepreneurship.
• Less than 1/3 of staff teaching entrepreneurship had practical experience with
entrepreneurship outside academia.
Teaching tools
• There is a gap between methods applied and those that are seen as the most effective
• Experience-based methods are crucial: traditional pedagogies (lectures) are not the most
effective
• Most effective methods indicated: group techniques for new business ideas, case
studies, business planning workshops
• Essential element: crossing boundaries between disciplines, and multi-disciplinary
collaboration
•
Problems/Obstacles
Shortage of funding
• Too few professors of entrepreneurship
• Little incentive and reward for teachers
• Faculties and departments tend to work separately
• Mobility between HEIs and business is low
• HEIs are not sufficiently involved with their alumni
•
Actions for HEIs
Set up a strategy or action plan
• Create an entrepreneurial hub
• Offer introduction to entrepreneurship to all, and opportunities to follow more specific
courses
• Set up incentives to motivate and reward staff
• Encourage the spontaneous initiative of students
• Award credits for activities and practical work
National/Regional Innovation Systems (NIS/RIS)
• Policy makers’ attempts to increase
• Economic growth
• Entrepreneurship
• Employment, and
• Taxable income
• Innovative firms a.k.a high technology companies
• Assumed to create high salary employment
• Modern version of smoke-stack industry
• Most firm start small and never grow; 3% manage to grow beyond 100 persons
• Large body of previous research - growing
The ideal: Triple Helix
Government
b. A ’laissez-faire’ model
a. An etatistic model
c.Triple Helix
What do we know about university/business
collaboration
• Sometimes it leads to spun out business
• But; those conducting research in close proximity to business become better
scientists and if they start businesses become more likley to succeed
Who are the World’s Successful Entrepreneurs
•
•
•
•
•
•
Steve Jobs
Ingvar Kamprad
Mark Zuckerberg
Jack Ma
Salvatore Ferragamo
Josiah Wedgewood
Incubator Initiatives
1. University involvement:
Success of incubator depends on availability of graduates, access to R&D facilities, and environment of intellectual
creativity
2. Collaboration & networking:
Networking between industries, universities, research institutions and incubators provide mutual support & encouragement
3. Experienced incubator management:
To render continuous support, coaching, mentoring and motivation to start-up companies
4. Conducive business environment:
Incubators to function not as landlord but to create conducive business environment to incubatees
5. Linking business & technology:
Constitute important channels for distribution of knowledge and tools for business success
Potential Entrepreneurs – Academic and
Students
•
•
•
•
Do we have the capital?
Do we have ideas?
Do we have the resilience?
Can we balance life – work balance?
Thank you
Q&A