University Industry Relation
(in open innovation era)
Kazuyuki Motohashi
Professor, Department of Technology
Management for Innovation, The University
of Tokyo
Outline of Lecture
• What is “Open Innovation”? And why is it relevant
to technology transfer (from university)
management?
• Survey of open innovation trends: a case of Japan
(RIETI Survey on R&D collaboration)
• Understanding firm’s motivation for R&D
collaboration
• Technology management strategy in open
innovation era: industry variation
2
Open Innovation
“Open innovation is a paradigm that assumes that firms can
and should use external ideas as well as internal ideas, and
internal and external paths to market, as the firms look to
advance their technology” (Henry Chesbrough, UC Berkley)
Related Concept
 R&D collaboration, Joint venture, Licensing
 Technology market (via intellectual property right)
 Technology sourcing (via open market)
3
What drives the trend from internal R&D to
open innovation?
• Globalization and intense innovation competition:
Catching up and growing importance of emerging
economies (such as BRICs)
• Necessity of innovation speed in order to
appropriate rents from R&D
• Importance of scientific knowledge for industrial
innovation: particularly the case for biopharmaceuticals
• Institutional changes in science sector: PRIs and
national university reforms (such as US in 1980’s,
Europe and Japan in 1990’s)
4
Implications for Technology Licensing
Management in University
• Very welcome!
• But it is important to understand the firm’s
incentives for acquiring external technology
(management of “boundary of firm”)
– Changing firm’s needs for university technology
– Technology management strategy depends on to
what extent your counterpart well manages open
innovation
– The style of open innovation movement is quite
heterogeneous and substantially different across
technology fields
5
High concentration of R&D activities
Toyota
Honda
Panasonic
Sony
Nissan
Others
Takeda
Hitachi
Toshiba
Cannon
NEC
NTT Denso
Mitsubishi Mitsubishi Astellas Sharp
Elec.
Chem. Eisai
Fuji film Fujitsu
Daiichi
Sankyo
Japan’s national innovation system
7
RIETI’s Survey on R&D Collaboration
• Firm level survey on external R&D collaboration: business
to business networks and university and industry linkages
• Data for 2003, 556 samples
• Survey items
– Recent trend of external R&D collaboration and IPR licensing
– Factors behind R&D collaboration decision
– Managing the boundary of firm in R&D, internal R&D vs
outsourcing
• Detail results are found as the following site
http://www.rieti.go.jp/jp/projects/innovation-system/H15.html
8
Japanese system is changing?
From RIETI survey
C ollaboration w ith Large firm s
0%
10%
20 or under
12.2
21-100
13.0
101-300
20%
30%
40%
50%
60%
11.6
70%
5 year s ago
Pr es ent ( i ncr eas ed)
24.4
6.1
38.8
2.3
46.0
1001-2000
2001 or over
12.8
68.1
4.3
C ollaboration w ith sm all firm s
20 or under
21-100
101-300
301-1000
1001-2000
2001 or over
10%
14.9
20%
30%
50%
5.7
16.5
25.2
22.0
60%
C ollaboratio w ith universities
70%
5 year s ago
Pr es ent ( i ncr eas ed)
4.2
11.0
40%
80%
90%
20 or under
21-100
4.1
101-300
10.3
301-1000
13.3
51.4
90%
5.6
301-1000
0%
80%
1001-2000
5.2
2001 or over
0%
10%
23.0
20%
30%
40%
50%
10.4
21.0
60%
70%
80%
5 year s ago
Pr es ent ( i ncr eas ed)
15.3
27.6
14.4
46.6
9.5
54.0
20.5
81.9
9
1.0
90%
Understanding UIC activities
Fig. 2 Style of collaboration with university
Joint R&D
Contract research
Research Grant
Technology consulting
Training
100 or less
101-300
Technology transfer
R&D service(eg. Testing)
300-1000
1000 or over
Use of patent
0%
10%
20%
30%
40%
50%
60%
70%
80% 10
Factors behind R&D outsourcing
Reasons why increasing R&D collaboration
36.7
38.1
21.3
20%
29.4
24.8
24.5
27.2
41.2
41.8
40%
48.6
51.4
48.5
50%
Universities
60.3
59.6
60%
Small firms
67.9
Large firms
70%
PRIs
55.1
10.1
5.5
5.9
3.0
1.5
8.2
5.5
2.9
2.0
10%
6.4
5.9
8.3
2.9
2.2
11.0
9.7
6.7
6.4
4.4
3.7
0%
16.9
14.9
29.9
29.9
30%
Easy to access
counterpart information
Important for technology
standard
Success in past
collaboration projects
Respond to intense R&D
competition
Upgrade own basic
technologycapability
Cost reduction of R&D
Needs to access to
basic science
Policy push for
industry-science linkage
Shortage of R&D
fund by own
Upgrading technology level
of counterparts
11
Management of firm’s boundary in R&D
80%
70%
O w n R&D
W ith large firm s
W ith sm all firm s
W ith university
72.0
64.1
60%
50%
40%
52.8
51.2
47.6
47.0
46.5
37.7
32.9
30%
32.4
32.2
31.3
30.3
29.3
28.4
20.2
18.7
20.5
20%
16.9
16.2
13.5
10%
5.9
5.9
9.3
7.9
10.6
8.3
6.7
5.5
7.1
4.9
3.3
2.3
2.2
2.2
5.9
0%
Learning technology
Cost reduction
project
Basic science
Core technology
Technology
frontier project
R&D needing speed
R&D related to
core technology
New R&D subject
Product Development
project
12
Motivation and underlining hypotheses
for econometric analysis
• Factors behing external R&D collaboration
– Intense innovation competition?
– Increasing complexity of innovation and the role of
scientific knowledge
– Selection and concentration of R&D projects, but it
needs wider technological scope
• UIC’s impacts on research and production
productivity: greater impact for small firms
– Less Not-Invented-Here Syndrome
– Focusing on more concrete project (short term benefit)
and greater pressure for commercialization
13
Business Environment Change Related to
R&D Strategy
0%
10%
20%
30%
40%
50%
60%
66.9
M eet m arket needs
59.2
Shoten lead tim e
37.9
Explore new R &D them e
29.5
Focus R &D them es
22.3
C ost reduction
16.7
C om m ercialize ow n tech seeds
Shift to applied R &D
11.9
U pgrade basic R &D skills
11.5
Staff reduction
70%
4.5
14
Collaboration and R&D strategy
Shorter development lead time
Focusing R&D theme
Reduce R&D cost
Reduce R&D staffs
Explore new technology seeds
more R&D for application and
development project
large firms
LF
SME
++
--
Universities
LF
SME
++
++
+
++
+++
Improving basic technology capability
Market needs for R&D
Commercialization of tech seeds
SME and startups
LF
SME
++
++
++
+
-++
15
UIC contents by firm size
Smaller firms collaborate with universities for development
stage project, while larger firms prefer more fundamental
oriented research projects
商品化時期（大学と連携した場合、従業員規模別）
1年以内
２～３年程度先
20人以下
５年程度先
19.4
10年程度先
商品化は念頭においていない
61.3
12.9
3.2
13.5
21～100人
101～300人
56.8
5.4
16.2
51.8
8.1
3.2
5.4
7.1
32.1
3.6
301～1000人 3.0
43.9
10.3
1001～2000人
2001人以上
28.2
37.5
0%
20%
9.1
9.1
43.6
10.3
7.7
43.8
9.4
9.4
34.8
40%
60%
80%
100%
16
Research Productivity by Firm Age
all
(1)
0.276
(7.81)**
0.250
(6.08)**
-0.030
(0.23)
0.377
(3.21)**
all
(2)
lrd
0.260
(7.19)**
lemp
0.246
(5.41)**
cord
-0.056
(0.45)
univ1
0.355
(3.05)**
lage
-2.402
(4.81)**
lage2
0.360
(4.86)**
Constant
-1.683
2.302
(7.10)** (2.57)*
Industry Dummies
yes
yes
Observations
450
438
R-squared
0.62
0.64
Absolute value of t statistics in parentheses
* significant at 5%; ** significant at 1%
-1950
(4)
0.434
(5.61)**
0.397
(3.72)**
-0.131
(0.53)
0.203
(0.95)
1951-70
(5)
0.183
(3.05)**
0.315
(3.30)**
0.146
(0.67)
-0.077
(0.33)
1971(6)
0.109
(2.29)*
0.131
(2.84)**
-0.169
(1.06)
0.348
(2.09)*
-4.257
(8.51)**
yes
168
0.77
-1.188
(2.83)**
yes
134
0.55
0.439
(1.30)
yes
136
0.49
17
Difference between large firms and SMEs
in university industry collaboration activities
Commercialization of
new product
Business development
Close to the market
Large firm
Commercialization of
new product
SMEs
Start-ups
Research Lab.
Scope of UIC
Scope of UIC
Scientific knowledge and fundamental science at
universities and PRIs
18
Role of UIC in economic
development : a case of PRC
IT infrastructure
(internet etc.)
Labor market institutions
Public research inst.
Universities
Firm’s innovative
capability and networks
Product market
competition
IPR Policy
Spin-out firms
Innovations
Financial market
condition
19
Patent application by type
Motohashi, 2008
20
Share of UIC patents by technology
Motohashi, 2008
21
Regional Cluster Policy
A Case of Hsinchu Science Industrial Park (HSIP) in Taiwan
Regional Proximity
ITRI
Universities
HSIP
Internal Technology
Externality
Silicon Valley
International Human capital mobility
(Yang, Motohashi and Chen (2008)
Conclusion
• Growing trend of open innovation leads to
increasing importance of UIC activities and
university’s IP management.
• UIC activities spur SME innovation and network
style innovation system.
• The role of university in NIS is important for
developing countries, where technology level at
private sector is relatively low.
• Technology development strategy at PRIs (public
research institutions) is also important in
technological catching up
23