The Need for Capacity Building at Universities in CEE Countries for Successful Technology Transfer
Owing to the rapid multiplication of related information, the acceleration in its dissemination and the constant reduction in the costs of access to it, technology transfer processes have undergone significant transformation in recent years. Adaptation to the changing circumstances causes difficulti...
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irk-123456789-1146962017-03-13T03:02:18Z The Need for Capacity Building at Universities in CEE Countries for Successful Technology Transfer Buzas, N. Technologies, innovation management and technology transfer Owing to the rapid multiplication of related information, the acceleration in its dissemination and the constant reduction in the costs of access to it, technology transfer processes have undergone significant transformation in recent years. Adaptation to the changing circumstances causes difficulties for several institutions even in countries with more developed economies and considerable traditions in innovation management. The transition economies of Central! and Eastern Europe, however, have to face the challenges of combating general economic fallback and establishing institutions that can enter the competition with the operating institutional system of modern economies. These latter ones also include effective technology transfer institutions. With the help of a case study, the present paper introduces how the main sources of technologies can be utilized and what basic measures universities should take in order to build up a successful technology transfer system. 2005 Article The Need for Capacity Building at Universities in CEE Countries for Successful Technology Transfer / N. Buzas // Наука та інновації. — 2005. — Т. 1, № 4. — С. 42-49. — Бібліогр.: 11 назв. — англ. 1815-2066 http://dspace.nbuv.gov.ua/handle/123456789/114696 DOI: doi.org/10.15407/scin1.04.042 en Наука та інновації Видавничий дім "Академперіодика" НАН України |
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Technologies, innovation management and technology transfer Technologies, innovation management and technology transfer |
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Technologies, innovation management and technology transfer Technologies, innovation management and technology transfer Buzas, N. The Need for Capacity Building at Universities in CEE Countries for Successful Technology Transfer Наука та інновації |
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Owing to the rapid multiplication of related information, the acceleration in its dissemination and the constant reduction in the costs of access to it, technology transfer processes have undergone significant transformation in recent years. Adaptation to the changing circumstances causes difficulties for several institutions even in countries with more developed economies and considerable traditions in innovation management. The transition economies of Central! and Eastern Europe, however, have to face the challenges of combating general economic fallback and establishing institutions that can enter the competition with the operating institutional system of modern economies. These latter ones also include effective technology transfer institutions. With the help of a case study, the present paper introduces how the main sources of technologies can be utilized and what basic measures universities should take in order to build up a successful technology transfer system. |
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Buzas, N. |
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Buzas, N. |
| title |
The Need for Capacity Building at Universities in CEE Countries for Successful Technology Transfer |
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The Need for Capacity Building at Universities in CEE Countries for Successful Technology Transfer |
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The Need for Capacity Building at Universities in CEE Countries for Successful Technology Transfer |
| title_fullStr |
The Need for Capacity Building at Universities in CEE Countries for Successful Technology Transfer |
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The Need for Capacity Building at Universities in CEE Countries for Successful Technology Transfer |
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need for capacity building at universities in cee countries for successful technology transfer |
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Видавничий дім "Академперіодика" НАН України |
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2005 |
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Technologies, innovation management and technology transfer |
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The Need for Capacity Building at Universities in CEE Countries for Successful Technology Transfer / N. Buzas // Наука та інновації. — 2005. — Т. 1, № 4. — С. 42-49. — Бібліогр.: 11 назв. — англ. |
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Наука та інновації |
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2025-07-08T07:49:49Z |
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2025-07-08T07:49:49Z |
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1837064247401512960 |
| fulltext |
42
Special Issue
© SCIENCE AND INNOVATION. 2005
1. TECHNOLOGY TRANSFER
IN KNOWLEDGEKBASED ECONOMY
Due to the changing value of technological
knowledge, the way of technology transfer and
the institutions involved have also been
changed recently. The traditional model of tech!
nology transfer in which technology moves from
a well characterized economic unit to another
one has been transformed to a complex knowl!
edge transfer process (Amesse and Cohendet
2001). As the spread of knowledge has changed
the patterns of the global division of labor and
comparative advantages have been rearranged
or eliminated by new technologies, the relative
position of actors in the new global economy is
mainly determined by their capacity to absorb
and modify knowledge (Buzas 2005). For the
Central! and East!European countries, the
emergence of a knowledge!based economy
means a special double challenge: during the
economic transitions, the additional require!
Special issue.2005.V 1.N 4.P. 42–49.
THE NEED FOR CAPACITY BUILDING
AT UNIVERSITIES IN CEE COUNTRIES
FOR SUCCESSFUL TECHNOLOGY TRANSFER
Norbert Buzas
Ph.D., Director of Innovation Management University of Szeged
Dr. Norbert Buzas is the Director of Innovation Management at the University of Szeged and the Professor
Associate at the Institut of Economics and Regional Economic Development of the University. Dr. Buzas is
a member of the Hungarian Chemical Society and Secretary of the Innovation Working Group of the
Regional Committe of the Hungarian Academy of Sciences. He holds Master's degrees in Chemistry (1992),
Physics (1992), and Environmental Management (1995). Dr. Buzas started his career in the Department of
Inorganic and Analytical Chemistry, Jozsef Attila University, Szeged. He worked as research fellow at the
Technical University of Vienna, VUB University of Brussels and the University of Palermo. After defend!
ing his Ph.D. thesis in 1997, he worked as an application consultant for a scientific consultancy firm. He
joined Faculty of Economics in 2000 and gives lectures for the graduates in Innovation management and
Environmental Economics. Since 2003 he leads the innovation management acitvities at the university. Dr.
Buzas has 47 papers published in scientific journals and he is the author of two books and four university
textbooks. E!mail: buzas@eco.u!szeged.hu
Abstract: Owing to the rapid multiplication of related information, the acceleration in its dissemination
and the constant reduction in the costs of access to it, technology transfer processes have undergone signif!
icant transformation in recent years. Adaptation to the changing circumstances causes difficulties for sev!
eral institutions even in countries with more developed economies and considerable traditions in innovation
management. The transition economies of Central! and Eastern Europe, however, have to face the chal!
lenges of combating general economic fallback and establishing institutions that can enter the competition
with the operating institutional system of modern economies. These latter ones also include effective tech!
nology transfer institutions. With the help of a case study, the present paper introduces how the main
sources of technologies can be utilized and what basic measures universities should take in order to build up
a successful technology transfer system.
43SCIENCE AND INNOVATION. N 4, 2005
Technologies, innovation management and technology transfer
ments of a knowledge!based society must also
be taken into account but at the same time the
broadening of the economic gap has to be avoid!
ed. After several decades of planning economy,
government had to recognize that its role
should be to facilitate rather than control tech!
nology and the knowledge transfer process.
Considering financial and legal issues,
Hungary is in the most advanced group of can!
didate countries together with the Czech
Republic, Estonia, Poland and Slovenia. In this
group serious efforts were made to restructure
and reorganize science and technology facilities
(Meske 2000) creating new bodies, newly estab!
lished institutions with the financial ones
among them changes in activity profiles and
novel legislative elements, including a substan!
tive new Act of Innovation. However, these
changes did not really result in a new revolu!
tionary innovation system as far as effectiveness
is concerned. Although the importance of
research and development became a watchword,
the related expenditures did not increase satis!
factorily, because this value is still up to 1 % in
most of CEE countries. The number of
researchers employed in the knowledge inten!
sive sector is also still low and the knowledge
transfer between academic and business spheres
is incidental (Buzas – Szanyi 2004).
The evolvement of an effective innovation
system is mainly prevented by the lack of diffu!
sion!focused elements at the public research
institution including universities.
2. INTEGRATION OF HIGHER
EDUCATION INTO TECHNOLOGY
TRANSFER
2.1. Pioneering
Since institutions of higher education consti!
tute the essential elements of establishing an
effective technology transfer system, precise
regulation on utilizing the inventions deriving
from university research is indispensable. The
government needs to take the first step in this
question, since achievements emerging from
publicly financed research – in the lack of other
legislation – would become state property.
However, the state is obviously not the best
owner of these inventions. Only market players
can guarantee the best possible utilization of
technologies born in the public sphere. But in
order for technologies developed from public
money to become the property of other parties
and not the state, the rights of disposing over
such inventions must be established.
Over the last decade, a number of concepts
were proposed for modeling university!indus!
try!government relations. One of the better
known models is the Triple Helix (Leydesdorff !
Etzkowitz 1996) in which the three separate
spheres are defined institutionally. In this model
for analyzing innovation systems, knowledge
transfer is no longer considered as a linear
process from origin to application, but a com!
plex system with unique communication inter!
faces operating in distribute mode and mediated
by special organizations such as technology
transfer offices.
Prior to 1980, technology transfer was not
remarkable in the university!industry nexus.
The situation substantially changed when the
Bayh!Dole Act came into force in the US at the
end of 1980, allowing universities and other
non!profit organizations to patent and commer!
cialize the results of their discoveries made
under government!funded research (Schmoch
1999, Nelsen 2004). Because the majority share
of research at US universities is funded from
public financial sources, this act meant a break!
through in the history of university!industry
relations. Before 1980 every achievement deriv!
ing from publicly financed research activities
became the government's property. Conse!
quently, out of the technologies considered wor!
thy, approximately 25,000 governmental
44
Special Issue
SCIENCE AND INNOVATION. N 4, 2005
patents were born until 1980, only 5 % of which
reached industrial utilization through license
agreements.
However, the Bayh!Dole Act defined new
alternatives (of course, together with the relat!
ed obligations) regarding such inventions. In its
most important measure it made possible the
private ownership of research achievements
financed from public money by the inventors or
their institutions. At the same time, it also
obliged institutions to decide about patenting
the technologies produced from public money in
their sphere of action within maximum 2 years
following the birth of an invention.
As a result of the Act, in 2002, 269 new
products were created from inventions devel!
oped with the help of public money; users paid
royalties of over 1 billion USD to publicly
financed institutions at the account of the rev!
enue deriving from the sales of such products
(Spin!off book, 2004). A further, additional ben!
efit of the Act lied in 450 new spin!off enterpris!
es established to utilize university technologies
(from 1980 the number of these has reached
4320), which was accompanied by the emer!
gence of various new work places and therefore,
the development of the economy. Last but not
least, publicly financed institutes created their
own technology utilization system as a result of
the Act, which practically meant the establish!
ment of so!called TLOs (technology liaison
offices) or UILOs (university!industry liaison
offices) and the creation of a related marketing
strategy.
It is clear from the US example that various
problems need to be solved in order to reach the
successful utilization of publicly financed inven!
tions. As a comparison, in the following let us
examine first how and based on what European
traditions Hungary, a Central Eastern European
country tried to meet the challenges in terms of
the above!mentioned three elements, that is, the
ownership of publicly financed inventions, the
foundation of utilizing (spin!off) companies and
the creation of a university technology transfer
system. Then we will also describe how the
University of Szeged, one of the most active
institutions in technology transfer, has built up
its own technology management system.
2.2. Utilization of publicly financed research
in Central Eastern Europe
Due to the traditional differences in innovation
policies, countries could follow different models
in the commercialization of domestic discover!
ies. The US (bottom!up) innovation policy
principally focuses on creating incentives for
universities so that they commercialize their
inventions themselves. Federal actions foster
experimentation in university policies with
respect to how to best exploit the windfall of
intellectual property rights brought about by
the Bayh!Dole Act. On the contrary, for exam!
ple the Swedish way of selling academic
research ideas is far from those figured in the US
(Goldfarb and Henrekson 2003) because in
Sweden the government attempts to directly
create a mechanism facilitating commercializa!
tion. Bureaucratic interventions enforce
Swedish universities to establish an internal
policy focusing on the marketing of intellectual
assets. According to the authors, the latter (top!
down) model is similar to the models applied by
most EU countries. It can be generally say, this
"European way" proved to be much less effec!
tive than the US pursuance of commercializa!
tion because of the lack of incentives for
European scientists to get personally involved
in the transactions.
Considering the Central! and East!
European transition economies, first of all it
must be stated that those countries have no tra!
ditions in business!based technology transfer. In
the time of the state socialism various state!
owned research institutes received assignments
45SCIENCE AND INNOVATION. N 4, 2005
Technologies, innovation management and technology transfer
from similarly state!owned large companies for
technology development, so the industrial uti!
lization of the technologies developed this way
was guaranteed. The division of labor within the
Council for Mutual Economic Assistance also
contributed to an effective technology transfer
and defined the branches that certain countries
would improve, with the necessary technology
almost always coming from inside the communi!
ty. Consequently, the picture displayed by the
R&D expenditure of that period was much more
promising than that of today, although this was
far from representing the real situation of the
market.
However, privatization occurring due to the
effects of the social economic changes of the late
90's significantly rearranged the scene in this
area too. The now privately owned companies
stopped submitting the former, predictable state
orders of great volume and due to the economic
uncertainties and the unclear nature of the
related legislation, the new – often foreign –
owners did not trust national institutes with
research assignments until the stabilization of
the basic institutions in the market economy.
In Hungary, beyond the above said, the
establishment of an effective technology trans!
fer was further hindered by the fact that the
government did not have a unified concept
regarding the utilization of such public money.
On one hand, for a long time there was no effort
to settle the issue of inventions created from
public money with the help of a law similar to
the Bayh!Dole Act. Although, based on the
effective patent law, universities and research
institutes are entitled to patent the (service)
inventions created in the institute to their own
benefit, but formally these still remain the pos!
session of the Treasury. In the case of universi!
ties the new law on higher education under way
would substantially change this and transfer the
ownership right to the institutes, however, the
date of its enforcement is rather uncertain.
2.3. Spin#off companies: diversification
of the knowledge#based industry
The formation of a spin!off company occurs
when a former employee of the parent organiza!
tion with a certain technology or essential
knowledge leaves to start his/her own firm. Due
to the features of the small technology!based
companies, spin!offs are among the most prom!
ising ways to commercialize technology or
knowledge. While established companies adopt
only new technologies closely aligned with the
company's existing products, spin!offs can take
advantages to absorb early stage technologies
and develop them in time for market entry.
Technology start!up companies can have
enough flexibility to change business directions
if the market requires so while established com!
panies have standard procedures and much less
ability to adapt and tailor early stage technolo!
gies as necessary. Furthermore, proximity of
spin!offs to the birthplace of technologies can
assure ongoing support from inventors making
the technology transfer process complete.
Spin!off companies can be categorized
based on the attributes of the parent organiza!
tions (Oakey 1995): the major source of the new
technology!based firm can be either higher!edu!
cation institutions (university spin!offs) or
industrial firms (corporate spin!offs). Since uni!
versities more frequently encourage the transfer
of knowledge to be used outside the university
than do private companies, the formation of uni!
versity spin!offs is predominant.
Irrespectively of their features, the entre!
preneurial spirit is particularly important in the
formation of spin!off companies. In terms of
entrepreneurship, research shows that the
European Union lags behind the United States
(COM (2003) 27). The aversion towards taking
business risks among Europeans is a main con!
tributing factor to this attitude. In the US the
brightest young people establish their own busi!
nesses, and in case of failure they keep on trying
46
Special Issue
SCIENCE AND INNOVATION. N 4, 2005
to set up new companies until they either suc!
ceed or, after several failed attempts, apply for a
job. In contrast, there is a European tendency
according to which only those individuals start
new businesses who do not find a decent job.
This attitude resulted in a huge "entrepreneur!
ship deficit" in Western Europe (COM (2003)
27). Due to the entrepreneurial philosophy
above mentioned, in the USA spin!offs were
popularized many years ago and created leg!
endary and prestigious places, like "Silicon
Valley" and "Route 128" near Boston. On the
contrary, due to the lack of motivation in many
European countries spin!off companies are less
favored among scientists and universities often
opposed the launch of such firms.
In order to study how to prevail the
European tendency in a developing economy
and what the main obstacles impeding the
establishment of new technology!based compa!
nies are, the spin!off formation process was
investigated in Hungary (Buzas 2003). In the
study, both scientists with marketable scientific
results and university students were considered
as potential entrepreneurs. The latter group
provided valuable information about the defi!
ciencies of the education system which focuses
mainly on the needs of large multinationals and
neglects the small!sized enterprise!specific top!
ics. The results showed that there are three
main obstacles preventing the spin!off forma!
tion: lack of motivation, competence and repu!
tation.
Scientists often refuse to become business!
men and in order to save their independent
position as researchers they express their prefer!
ences for invention over selling (motivation
gap). The barrier of lacking motivation could
only be overcome by reducing the fear of an
uncertain future. If a scientist is motivated
enough, the academic career can serve as a good
platform for launching a company, but limited
experience in commercial matters (competence
gap) blocks the business. Even commercially
oriented researchers have limited capabilities in
finance or intellectual property rights. They
need an advisor with managerial abilities to
transform the research results into business suc!
cess. A successfully launched spin!off company
itself, however, can not guarantee prosperity
because trustworthiness is essential (reputation
gap) for business partnering. Entrepreneurs do
not have much time to become well known and
to establish a strong reputation. Young spin!off
companies are in constant need for guarantors
confirming their outstanding technical expert!
ise and creditability.
In order to encourage the formation of spin!
off companies, in 2002 the Hungarian
Government issued a call for proposals for the
financial contribution to their establishment
costs up to 40 000 EUR per applicant. This sup!
port can be used for the preparation of a feasi!
bility study, adaptation of research results,
acquisition of know!how, protection of intellec!
tual property rights or preparation of proto!
types. The small number (34) of proposals con!
firms that the above mentioned result, accord!
ing to entrepreneurship has not primary finan!
cial, but motivational obstacles in Hungary.
During the last two years the changing
entrepreneurial climate at universities by imple!
menting training programs and disseminating
success stories, and the provisions related to
Innovation Act, as well, resulted a much higher
motivation in establishing spin!off. This year
the Government issued the former call with sig!
nificantly increased support (maximum of
100.000 EUR, which is the upper limit of de
minimis financial support in EU). Although the
decision process is not yet complete, but it is
known the number of applicants has multiplied.
3. CHALLENGES FOR UNIVERSITIES
TO EXECUTE TECHNOLOGY TRANSFER
In order to eliminate the above!mentioned defi!
ciencies and create an effective institutional
47SCIENCE AND INNOVATION. N 4, 2005
Technologies, innovation management and technology transfer
technology management system, the following
general institutional target system can be
defined. In the following, we will also introduce
how the University of Szeged tried to integrate
Szeged's higher education effectively in the
international technology transfer network by
realizing these objectives.
3.1. Building up the institutional model
As a first step, taking into account local charac!
teristics, it is advised to define the already exist!
ing or future institutes that provide the frame!
works of the technology transfer process.
Obviously, no general formula can be used for
this, since the former weight and role of the
existing university institutes (innovation cen!
ter, research centers, technology transfer office
and so on) may define the participation of these
in the technology transfer system of the insti!
tute. The expertise of employees working in the
above!mentioned institutes may also be deci!
sive, since it is not easy to find people for a sys!
tem under development who are familiar with
the wide range of complex technology transfer
processes. However, it can generally be said that
a central organization that coordinates the
processes must be defined and it is also advised
to find a leader who is familiar with both the sci!
entific and business aspects of innovation
processes.
For the management of its innovation
processes, the University of Szeged has built up
the system displayed by Figure 1. The leading
institute of the system is the Innovation
Directorate that, on one hand, maintains rela!
tions with economic players as a type of indus!
trial interface, and, on the other hand, coordi!
nates inventions created in the institute.
Regional Cooperation Research Center of Life
and Material Sciences (DEAK) and Regional
Knowledge Center of Neurosciences (DNT),
two research institutes of the university, active!
ly participate in managing the research projects
and supporting the inventions produced there.
In the utilization of inventions Biopolisz Ltd.
has an important role, 25 % of which is owned
Figure 1. Schematic model of the innovation management at the University of Szeged: RD: research and development
units; DEAK: Regional Cooperation Research Center of Life and Material Sciences; DNT: Regional Knowledge
Center of Neurosciences
48
Special Issue
SCIENCE AND INNOVATION. N 4, 2005
by the university, since it contributes to the
commercialization of inventions produced in
the institute and helps the foundation of spin!
off enterprises.
3.2. Creating legal regulations within
the institute
In order for the interests of the institute to be
represented successfully in terms of rights relat!
ed to inventions, and at the same time for
researchers not to feel that the institute
'deprives' them of their inventions, thoroughly
elaborated institutional legal regulations suc!
cessfully motivating researchers are needed.
In 2004 the University of Szeged worked up
its own regulation on intellectual property.
With this it unambiguously defined and since
then has consequently tried to enforce the
rights of the institute related to service inven!
tions. At the same time, it distributes the sum
deriving from the commercialization of inven!
tions by assigning 50 % to the inventors and 50
% to the institute, which is much more favorable
for inventors than usual. This way it tries to
maintain the researchers' constant interest in
the development of industrially utilizable
inventions.
3.3. The development of the institute's
own system of financing innovation
In order for the university to have an invention
portfolio that can be handled economically,
beyond the adequate institutional background
and legal framework, the funds for the expenses
in the initial period must also be assured. Even
the most effective technology transfer activity is
incapable of producing profit immediately,
since, on one hand, entering the market takes
time for the technologies, and on the other
hand, an economically manageable amount of
inventions must also be created.
To cover the expenses of patenting and
management, the University of Szeged voted an
annual 50 000 USD for the first 3 years of the
innovation system's operation. Consequently,
the registration of inventions has accelerated
and in the past year the university submitted or
prepared 11 new patent applications.
3.4. Linking the university
to the international technology
transfer circulation
The network of international relations is a high!
ly important, although often not spectacular
element of effective invention management.
This means not mainly the relations through
which technologies can be directly sold, but
rather the international organizations and ini!
tiatives, where, through participation and mem!
bership, institutes can join in the actual infor!
mation flow, follow international technology
trends and the experts dealing with technology
transfer have a chance to participate in training
programs regularly.
To further improve its international system
of professional relations, the University of
Szeged has joined in its own right or through its
Director of Innovation the most important
innovation management organizations includ!
ing the Association of University Technology
Managers, the Association of Scientific and
Technology Professionals, the Licensing Exe!
cutives Society and the International Society of
Professional Innovation Management. Further!
more, the university tries to constantly learn
from institutes with decades of traditions in the
field of technology management. In the frame!
work of this it has signed a collaboration agree!
ment with the Cedars!Sinai Medical Center of
California, which includes the joint utilization
of medical biological inventions, and the univer!
sity, based on CSMC's experience, tries to
improve its own technology transfer system.
49SCIENCE AND INNOVATION. N 4, 2005
Technologies, innovation management and technology transfer
ACKNOWLEDGEMENT
Financial support of the Hungarian Research
Fund (OTKA F043043) is gratefully acknowl!
edged.
REFERENCES
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encing the formation of spin!off companies in a tran!
sition economy. Paper presented at Annual Meeting
of IGU Commission on Dynamics of Economic
Spaces, Vancouver, Canada.
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/ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing. Created PDF documents can be opened with Acrobat and Adobe Reader 5.0 and later.)
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>>
/Namespace [
(Adobe)
(Common)
(1.0)
]
/OtherNamespaces [
<<
/AsReaderSpreads false
/CropImagesToFrames true
/ErrorControl /WarnAndContinue
/FlattenerIgnoreSpreadOverrides false
/IncludeGuidesGrids false
/IncludeNonPrinting false
/IncludeSlug false
/Namespace [
(Adobe)
(InDesign)
(4.0)
]
/OmitPlacedBitmaps false
/OmitPlacedEPS false
/OmitPlacedPDF false
/SimulateOverprint /Legacy
>>
<<
/AddBleedMarks false
/AddColorBars false
/AddCropMarks false
/AddPageInfo false
/AddRegMarks false
/ConvertColors /ConvertToCMYK
/DestinationProfileName ()
/DestinationProfileSelector /DocumentCMYK
/Downsample16BitImages true
/FlattenerPreset <<
/PresetSelector /MediumResolution
>>
/FormElements false
/GenerateStructure false
/IncludeBookmarks false
/IncludeHyperlinks false
/IncludeInteractive false
/IncludeLayers false
/IncludeProfiles false
/MultimediaHandling /UseObjectSettings
/Namespace [
(Adobe)
(CreativeSuite)
(2.0)
]
/PDFXOutputIntentProfileSelector /DocumentCMYK
/PreserveEditing true
/UntaggedCMYKHandling /LeaveUntagged
/UntaggedRGBHandling /UseDocumentProfile
/UseDocumentBleed false
>>
]
>> setdistillerparams
<<
/HWResolution [2400 2400]
/PageSize [612.000 792.000]
>> setpagedevice
|