The « restructuring» of The « restructuring» of Research and Development InstitutesResearch and Development Institutes

Gilbert NicolaonGilbert Nicolaon

KievKiev

June 10, 2008June 10, 2008

A « UNIVERSAL » CHALLENGEA « UNIVERSAL » CHALLENGE

A gap between Research and EconomyA gap between Research and Economy Limited impact of R&D on competitivenessLimited impact of R&D on competitiveness

Limited cooperation between RDI and IndustryLimited cooperation between RDI and Industry

A challenge all over the worldA challenge all over the world Most countries support R&DMost countries support R&D

Gvts. expect to get R.O.I. from their R&D spendingGvts. expect to get R.O.I. from their R&D spending

A UNIVERSAL CHALLENGE ALL OVER THE WORLDA UNIVERSAL CHALLENGE ALL OVER THE WORLD

A « WIDE » CHALLENGEA « WIDE » CHALLENGE RDIs have the technical competencesRDIs have the technical competences

BUTBUT Lack of essential competences to innovate:Lack of essential competences to innovate:

Industrial linksIndustrial links Market experienceMarket experience Financial experienceFinancial experience Legal experienceLegal experience

EXTERNAL ASSISTANCE IS NEEDEDEXTERNAL ASSISTANCE IS NEEDED

A « DOUBLE » CHALLENGEA « DOUBLE » CHALLENGE

STRONG INCENTIVES ARE NEEDEDSTRONG INCENTIVES ARE NEEDED

Res. Scientists are not motivated to Res. Scientists are not motivated to work with industry work with industry

Industry is not motivated to work with Industry is not motivated to work with « academic » scientists« academic » scientists

A 3 Partners cooperationA 3 Partners cooperationTechnological Institutes (RDITechnological Institutes (RDIss))

Provide the appropriate technology servicesProvide the appropriate technology services

National industryNational industry Identify the market needsIdentify the market needs Suggest “important” R&D topicsSuggest “important” R&D topics

The GovernmentThe Government (Ministries, agencies ..)(Ministries, agencies ..) Stimulate the process to boost the economyStimulate the process to boost the economy Provide incentivesProvide incentives

• Both ways (for Scientists and for Industry)Both ways (for Scientists and for Industry)• Stable over long period of timeStable over long period of time

Push or Pull ?Push or Pull ?

Push or Pull ?Push or Pull ?

Technology PushTechnology Push From the Lab to the marketFrom the Lab to the market

Idea of a scientistIdea of a scientist

Limiting step : selling the Limiting step : selling the idea (and the project) to idea (and the project) to industryindustry

TOP DOWNTOP DOWN

Market PullMarket Pull From market needs to the lab From market needs to the lab AND Back to marketAND Back to market Need identified by industryNeed identified by industry Limiting step :Limiting step :

Identifying the customerIdentifying the customer Identifying the needIdentifying the need

BOTTOM UPBOTTOM UP

Push or Pull ?Push or Pull ?

Technology Technology PushPush

Market Market

PullPull

TechnologyTechnology High to Med.High to Med. Med. To LowMed. To Low

MarketMarket ?? Well knownWell known

RiskRisk High to Med.High to Med. Med. To LowMed. To Low

Rate of ReturnRate of Return High to Med.High to Med. Med. To LowMed. To Low

Success rateSuccess rate LowLow Med. To High Med. To High

Push or Pull ?Push or Pull ?

Market pull Market pull Will most likely give less « exotic » results but much Will most likely give less « exotic » results but much faster and with a higher success ratefaster and with a higher success rate

Technology pushTechnology push Will most likely give more « fancy » results but it will Will most likely give more « fancy » results but it will take more timetake more time

DO NOT NEGLECT MARKET PULLDO NOT NEGLECT MARKET PULL

Push or Pull ?Push or Pull ?

High Tech is very « prestigious »High Tech is very « prestigious »

BUTBUT Traditional sectors industries offer a Traditional sectors industries offer a

large market for technology Serviceslarge market for technology Services

DO NOT NEGLECT DO NOT NEGLECT

TRADITIONAL SECTOR INDUSTRIESTRADITIONAL SECTOR INDUSTRIES

RDI RestructuringRDI Restructuring

R.D.I. RestructuringR.D.I. Restructuring

A challenge all over the world for :A challenge all over the world for :

Political reasonsPolitical reasons

Economical reasonsEconomical reasons

Financial reasonsFinancial reasons

R.D.I. RestructuringR.D.I. Restructuring

The ultimate goal is to :The ultimate goal is to :

Build up strong links betwwen RDI’s scientists and IndustryBuild up strong links betwwen RDI’s scientists and Industry

Integrate RDIs activity into national economyIntegrate RDIs activity into national economy

ANDAND

Provide private financial support for RDIsProvide private financial support for RDIs

R.D.I.RestructuringR.D.I.Restructuring

GovernanceGovernance

ManagementManagement

FundingFunding

GovernanceGovernance

A managing board including representatives A managing board including representatives of Industryof Industry With decision making powerWith decision making power Which defines medium and long range strategyWhich defines medium and long range strategy

An executive officerAn executive officer (CEO) (CEO) with an industrial with an industrial background ?background ?

ManagementManagement

Critical size R&D teamsCritical size R&D teams On some « selected » topics On some « selected » topics Stimulation of team workingStimulation of team working Stimulation of interdisciplinary projectsStimulation of interdisciplinary projects

Technical comitees associating Technical comitees associating some industry representativessome industry representatives

ManagementManagement

Human Resources ManagementHuman Resources Management

Individual evaluationIndividual evaluation On a yearly basisOn a yearly basis Based on individual goalsBased on individual goals

Individual « financial » rewardsIndividual « financial » rewards Based on performancesBased on performances

Incentives to stimulate industrial linksIncentives to stimulate industrial links

ManagementManagement

Encouraging communicationEncouraging communication External (with industry)External (with industry) Internal (team work) Internal (team work)

Ultimate Goal :Ultimate Goal : Publicly ownedPublicly owned Privately managedPrivately managed

R.D.I. FundingR.D.I. Funding From 100% public fundsFrom 100% public funds

TOTO

Be « self-sufficient »Be « self-sufficient »

New funding schemes are :New funding schemes are :A goalA goalANDANDA toolA tool

R.D.I.FundingR.D.I.Funding

ExEx. : TNO The Netherlands. : TNO The Netherlands

Ex.Applied US Applied Univ. Centers Ex.Applied US Applied Univ. Centers

(in the 80s)(in the 80s)

Ex.: ANR Ex.: ANR (French National Agency for Research)(French National Agency for Research)

FundingFunding of R&D of R&D based on « project » based on « project »

R.D.I.FundingR.D.I.Funding

Ex. : F.P. 7th program:Ex. : F.P. 7th program:

« Research for the benefit of Smes »« Research for the benefit of Smes »(*)(*)

A few Smes (3 to 5)A few Smes (3 to 5)

++

Some RDISome RDI (R&D providers) (R&D providers)

ForFor market oriented projects market oriented projects

(*) (*) Former CRAFT ProgramFormer CRAFT Program

FundingFunding

Indirect fundingIndirect funding  

Cifre scholarshipsCifre scholarships Technology « diagnostics »Technology « diagnostics » Public support for technology services to Public support for technology services to

industryindustry To hire specialized consultantsTo hire specialized consultants To prepare and file a patentTo prepare and file a patent …………..

…………

Two « provocative » statementsTwo « provocative » statements

Statement Nb.1Statement Nb.1

Working with industry will Working with industry will « degrade » my scientific level.« degrade » my scientific level.

Statement Nb. 2Statement Nb. 2

Local industry is very traditional Local industry is very traditional and does not need advanced and does not need advanced technologytechnology

Thank you for your attentionThank you for your attention

Gilbert NicolaonGilbert NicolaonWin.tech@club-internet.frWin.tech@club-internet.fr

Policy ExercisePolicy Exercise No. 1 No. 1

Applied R&D policyApplied R&D policy

In order to prepare the Ukrainian economy to In order to prepare the Ukrainian economy to compete in a free market, when Ukraine will join compete in a free market, when Ukraine will join the E.U., the Minister of Economy asked you to the E.U., the Minister of Economy asked you to suggest concrete, short and medium term, steps suggest concrete, short and medium term, steps to stimulate RDI restructuring.to stimulate RDI restructuring.

Describe : processes, actors, measures, Describe : processes, actors, measures, scheduleschedule…..…..

Policy ExercisePolicy Exercise Nb. 2 Nb. 2

RDI ManagementRDI Management

You are the Director of an RDI.You are the Director of an RDI.

You are asked by the Minister to restructure your RDI You are asked by the Minister to restructure your RDI in light of the forthcoming reform and budget cuts: to in light of the forthcoming reform and budget cuts: to recommend 4 or 5 concrete measures to stimulate recommend 4 or 5 concrete measures to stimulate cooperation with Industry and to increase your cooperation with Industry and to increase your revenues from « outside » sources.revenues from « outside » sources.

Management, Management, Human resources, IPR,….Human resources, IPR,….