Japan’s Triple

Helix Experiences:

Lessons Learnt

for ASEAN

Patarapong Intarakumnerd Professor

National Graduate Institute for Policy

Studies (GRIPS), Japan

2

1. Japan’s technological development and industrial catch-up

2. Triple Helix during catch-up period 3. Triple Helix during post catch-up period 4. Lessons learnt 5. ASEAN’s challenges

Presentation Outline

Overseas technologies

P r i v a t e

S e c t 0 r

P u b l i c

S e c t o r

Motivation to learn Indigenous technology Absorptive capacity

Financial incentives (subsidies, tax, loans etc.)

Schools Research at universities, arsenals,etc.

Investment Material, components

Procurement Protection Regulation

Fig. Technology and industrial development in Japan: the basic view ｂｙ Odagiri & Goto

Entry &

Competition

Demand

Entrepreneurship

Technological

capabilities

Japan World

market

Original research

The post catch-up period since 1990s

• Japan became net technology exporter in early

1990s. Reached technology frontier.

• The two lost decades (1990s-2000s)

• Increasing emphasis on science-based innovation

(vs. engineering based in the catch-up period)

• Promotion of university patenting and university-

industry collaborations

• Stronger enforcement of IPR

Triple Helix during catch-up period

Key features

• Long standing U-I linkages based on informal and individual basis

• Department of engineering, Tokyo University set up in 1873 educating very practical engineers (2 years of practice out of total 6 years).

• A national PRI, RIKEN started in 1917 providing technologies to 63 local firms in RIKEN Industrial Group through contracted research, licensing and production work (pilot plants)

• Public research institutes were set up across Japan by central and local governments to help local firms build up indigenous capabilities.

Local Industrial Public Research Institutes

As of June 1912

•Fukushima Prefecture textiles and spinning

•Fukui Prefecture textiles

•Ehime Prefecture dyeing and weaving

•Kyoto City pottery and porcelain

•Osaka Prefecture testing industrial materials and

products, and other testing and analyses

•Kyoto Prefecture dyeing and weaving

•Yamanashi Prefecture dyeing and weaving

•Shizuoka Prefecture lacquer ware, paper and Dyeing and weaving

•Hiroshima Prefecture dyeing and weaving

•Gifu Prefecture dyeing and weaving

•Mie Prefecture dyeing and weaving, and other manufacturing

•Kagawa Prefecture soy source

•Shiga Prefecture dyeing and weaving

Source: M. Kondo, Yokohama National University

R&D Consortium as Triple Helix Mechanism

• Early catch-up:

– consortium in traditional industries (textile/ceramic) formed by trade associations with assistance of local PRIs

– Consortium linking users and suppliers (e.g. between steel and shipbuilding firms) leading to innovations in both sectors

• Later catch-up:

– Joint ventures formed by MITI and large existing firms to invest in high-tech startups

– Research associations formed by large firms to solve specific longer-range, risky problems necessary for catching up. Some partially subsidized by government. Member firms received special tax breaks. Head of research sometimes on loan from PRIs.

Successful cases: VLSI and optoelectronics

Triple Helix during the post catch-up period

Key features

• several laws/policy initiatives were introduced to encourage better interaction between universities/PRIs and industry

• Third mission of universities emphasized: knowledge from universities would lead to innovation, new startups, and creation of new path-breaking industries. Get Japan out of lost decades.

• Many followed the US model

• More formal and patented-based UILs via intermediaries like TLOs,TTOs, incubators

• Mixed results

4th S&T Basic Plan

3rd Science & Technology Basic Plan

2nd Science &Technology Basic Plan

1st Science & Technology Basic Plan

“The Annual IP Promotion Plan”

Japanese “Bayh-Dole Act”

Establishment of TLOs

Able to invest to the TLO IP belongs to universities

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IP

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To Promote Tech Transfer from University to Industry

“The Law on Promotion of Tech. Transfers from Univ. to Industry.”

“The Law on Special Measures for Industrial Revitalization”

To reinforce I-U-G Collaboration & IP Management

“The Intellectual Property Basic Law”

“ National University Reform”

Major tool for

innovation

Amendment of “The Fundamental Law of Education”

Re-defining roles of universities

Screening Process for budget cut “New Growth Strategy”

Chronological table of University-Industry Collaboration Initiatives

②Project for Creating New Industries from Universities

Set up a system to encourage innovation by creating a team at universities and

similar institutions to work on commercialization beginning at the invention

phase and by promoting unified R&D and business development.

【Creating an environment conducive to beefing up support for commercialization】

Overview of Promoting Policies for Industry Collaboration & Regional Innovation

・JST support center for technology transfer ・JST support for overseas patent applications

【 Project for Developing Innovation Systems 】 ・University Research Administrator (URA)

MEXT Policy ＪＳＴ Policy

Universities

Local Governments

Corporations

⑤【 Support for patent applications 】

③【 Infrastructure of

industry-university cooperation 】 Regional Innovation Strategy Support

Program

Effectively support a high-quality locally

led scheme to encourage regional

innovation.

In particular, new support for research

conducted by multiple regions.

Outputs /

Outcomes

of basic

research

Support for collaborative research (ideas-push)

・ ④ A-STEP Adaptable and Seamless Technology Transfer

Program through Target-Driven R&D

Support for top-down collaborative projects

1.Large-scale and long-term R&D projects with consortiums

2.Development of systems and technology for advanced measurement and

analysis

3. Cooperative basic research projects to solve problems in industry

JST stands for Japan science and Technology Agency which is one of the independent administrative institutions in Japan.

①Support to Forming Regional Cluster under Local Initiatives

Adaptable and Seamless Technology Transfer Program through Target-Driven R&D (A-STEP)

• Covering all fields of R&D for technology transfer including medical sciences.

• Application is submitted jointly by university researchers and company partners.

Other funding programs (JST, NEDO, etc)

In-house development, etc

To examine

commercial viability and start-up

ventures based on research results

obtained in universities

●Seed validation

●Start-up validation

Feasibility Study （FS)

To promote technology transfer

flexibly and seamlessly

●High-risk challenge

●Promoting R&D

●Practical application

●Start-up venture

Stage-gate review

Full-Scale R&D

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s, p

ub

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se

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tes, e

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ectio

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om

me

rcia

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peer-review process

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tion b

ack

in

to s

ocie

ty!

Optimizing R&D plan

•Small businesses

•Drug discovery

•Contract development

Funding Program for Technology Transfer ~A-STEP~ FY2013 Budget: 14.5 billion yen

13

To examine

commercial viability and start-up

ventures based on research results

obtained in universities

●Seed validation

●Start-up validation

Feasibility Study （FS)

Since1958

1972

High

luminosity Red

LED

Display device

2000 18O-labeled water

for PET diagnosis

1997

Polymers with pho-

spholipid polar

group

Cosmetics, contact

lenses, biocompatible

materials

1986

GaN-based

blue LED

1977

Amorphous

metals Magnetic components

in electronic devices Display devices Early detection

and treatment of

cancer

2003

Retinoic acid

nanoparticles

Cosmetics

2004

Large high-

precision scanner

system

For cultural assets etc.

Radios, TVs,

Watches, mobile

phones, PCs

1980

Interferon

preparation

(IFNβ)

Medicine for Brain tumors,

malignant melanomas, viral

hepatitis B

1990

Oxide

superconductor

Superconductive

cables/motors

1991, 1998

Optically active alcohols 2000

Mitigating method

for heat island

phenomenon

Water-retentive

pavement

2005, 2006

Production engineering

of valuable antibodies

Surgical influenza face

masks, air cleaner

Practical application

of research by R.

Noyori (Nobel Prize

in Chemistry 2001)

JST-launched start-ups : 248 (as of Nov. 09; cumulative)

• 12% of all academic start-ups ever established.

• Gross sales: ¥11 B, Employees: 1,800

• Benefit for the overall economy: ¥20 B

Licensing income: ¥19 B (as of Jan. 2010, cumulative)

• Benefit for the overall economy: ¥627 B

(approx. estimation)

1959

Synthetic crystal

Pioneering Results brought by A-STEP and Previous Projects

Structure of the Regional Innovation Cluster Program

Typical Results (FY 2002 to 2010)

Patents Domestic 3,829

International 692

Practical Use (commercialization,

Incorporation, etc.) 3,434

Articles Domestic 4,655

International 9,435

Sales of related products

Approximately 82.2 billion JPY

(7.53 billion EUR)

MEXT supports the creation of new businesses and R&D

businesses that utilize unique regional resources

through industry-academia-government collaborations

MEXT strongly supports the formation of world-class

clusters, while encouraging regional independence, in

cooperation with relevant ministries such as METI

Knowledge Cluster Initiative City Area Program

Knowledge Cluster Initiative and City Area Program Map

Hamamatsu(Shizuoka Prefecture)

Hokkaido Area (with Sapporo as the core)

KANSAI (Saito & Kobe)

Fukuoka Kitakyushu Iizuka

Greater Sendai Area

Nagano Prefecture Region

Kyoto and Keihanna

Toyama/Ishikawa

Tokai Region

Hakodate Area

Yamaguchi

Kurume Region

Tokushima

Fukushima Area

Southern of Lake Biwa Central Iwate-Kamaishi Area

Foot of Mt. Fuji

Tokachi Area

Hirosaki Area

Tsuruoka Shonai Area

Central/Northern Ishikawa Area

Yonago and Sakaiminato Area

Shinjiko and Nakaumi Area

Wakayama Prefecture Kihoku Kichu Area

Southern Gifu Area

Central Saitama Area

Fukuoka Chikushi Area

Ehime-Nanyo Area

Kazusa/Chiba Area

Regions with ongoing cluster projects will receive steady

support until 2013 when ongoing issues conclude, with

consideration to project continuity and consistency, under

the banner of the “Program for Fostering Regional

Innovation” for ongoing regions

On Ongoing Regions

Support to Forming Regional Cluster under Local Initiatives (2012)

• The amount of funds received from the private sector totally increases over 5

years from ¥54.9B (FY2006) to ¥ 59.0B (FY2011)

• However, licensing income remains at almost the same level.

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2006 2007 2008 2009 2010 2011

Licensing income(Others)

Licensing income(Patents)

clinical trial

sponsored research

joint research

< Amount of funds received by Universities from the private sector >

[Survey by MEXT]

Trends in University-Industry Collaboration in Japan

10

20

30

40

50

60

70 （billion Yen）

Collaborative Research between University and Industry Licensing of University Patents

0

200

400

600

800

1,000

1,200

1,400

1,600

0

1,000

2,000

3,000

4,000

5,000

6,000

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011

Number of Lisensing

Amount of LisensingIncome (Million JPY)

Trends in University-Industry Collaboration (Cont’d)

Japanese Start-Ups from Universities

Year of Establishment

Num

ber o

f Esta

blis

hm

ent

Tota

l Num

ber o

f Esta

blis

hm

ent

Number of Establishment Total Number

Cases

Trends in University-Industry Collaboration (Cont’d)

[Survey by MEXT]

１９９５

１９９６

１９９７

１９９８

１９９９

２０００

２００１

２００２

２００３

２００４

２００５

２００６

２００７

２００８

２００９

２０１０

２０１１

Befo

re

１９９４

The number of start-ups from universities became over two thousands in 2009

However, the number of the establishment is gradually decreasing after 2004

30

40

50

60

70

（B）The share of the number of adjusted top

10% papers in all fields (moving average over

3 years) (Fractional counting))

0

5

10

1982 87 92 97 02 07

U.S. U.K. JapanGermany China FranceKorea

20110

5

10

15

20

25

30

35

1982 87 92 97 02 07

（A）The share of the number of papers in all

fields (moving average over 3 years)

(Fractional counting)

U.S. U.K. JapanGermany China FranceKorea

20110

5

10

1982 87 92 97 02 07

U.S. U.K. JapanGermany China FranceKorea

201120112011

30

40

50

60

70

（C）The share of the number of adjusted top

1% papers in all fields (moving average over 3

years) (Fractional counting)

The change in the share of the numbers of papers in main countries

Source: National Institute of Science and Technology Policy, Japanese Science & Technology Indicators 2013, Research Material-225, August 2013

Data: 3-years moving average of share tabulated from Thomson Reuters “Web of Science(SCIE, CPCI-S)” by fractional counting.

The Share of the

number of All papers

The Share of the

number of Top10%

highly cited papers

The Share of the

number of Top1%

highly cited papers

Lessons Learnt for Others, especially ASEAN

• Impressive mechanisms e.g. some practical engineering departments, roles of local PRIs, research consortium during catch-up period

• Post catch-up period: mixed results

• Pros:

– Long-term continuous national policy

– Integrative financial supports in every stage

– Regional policies: cluster initiatives engaging local firms, universities, PRIs, venture capitals, etc.

– Evaluation/monitoring process

Lessons Learnt for Others, especially ASEAN (2)

• Cons:

– Too much emphasis on entrepreneurial roles of universities?

• Neglecting traditional strengths (spinning off from large firms, corporate ventures, intrapreneurship)

• Not all universities have to be entrepreneurial (teaching/research universities)

– Too much emphasize on patent-based technology transfer through TTOs/TLOs (vs. contracted research, informal interaction, HR mobility)

• Increase in R&D Capabilities of Firms

• More roles of universities as sources of

firms’ innovation

New Trends in ASEAN

Increasing Number of R&D performers

Universities or Public Research Institutes are Increasingly Important Sources of

Innovation

ASEAN 5

• Well aware of importance of triple helix

• However too many ‘me-too’ policies (TLOs, science parks, incubators)

• Need local/regional RTOs to help firms enhance advanced engineering, design and r&D capabilities necessary for upgrading in global value chain.

• Intermediary roles of RTOs between – MNCs-local firms

– Large local firms-SMEs

– Universities-firms

• More roles and capabilities of local government and agencies. Less top-down initiatives.

• Better division of labor among universities (teaching vs. research vs. third mission)

CLMV

• Universities: focus more on first mission

(teaching). To build critical mass of

professionals/engineers

• RTOs: helping local firms to efficient

production capabilities (like Japan before

WWII). Intermediary roles

Thank you very much