The restructuring of Research and Development Institutes

1
The  restructuring of Research and Development
Institutes

• Gilbert Nicolaon
• Kiev
• June 10, 2008

2
A  UNIVERSAL  CHALLENGE

• A gap between Research and Economy
• Limited impact of RD on competitiveness
• Limited cooperation between RDI and Industry
• A challenge all over the world
• Most countries support RD
• Gvts. expect to get R.O.I. from their RD
  spending
• A UNIVERSAL CHALLENGE ALL OVER THE WORLD

3
A  WIDE  CHALLENGE

• RDIs have the technical competences
• BUT
• Lack of essential competences to innovate
• Industrial links
• Market experience
• Financial experience
• Legal experience
• EXTERNAL ASSISTANCE IS NEEDED

4
A  DOUBLE  CHALLENGE

• STRONG INCENTIVES ARE NEEDED
• Res. Scientists are not motivated to work with
  industry
• Industry is not motivated to work with
   academic  scientists

5
A 3 Partners cooperation

• Technological Institutes (RDIs)
• Provide the appropriate technology services
• National industry
• Identify the market needs
• Suggest important RD topics
• The Government (Ministries, agencies ..)
• Stimulate the process to boost the economy
• Provide incentives
• Both ways (for Scientists and for Industry)
• Stable over long period of time

6
Push or Pull ?
7
Push or Pull ?

• Market Pull
• From market needs to the lab
• AND Back to market
• Need identified by industry
• Limiting step
• Identifying the customer
• Identifying the need
• BOTTOM UP

• Technology Push
• From the Lab to the market
• Idea of a scientist
• Limiting step selling the idea (and the
  project) to industry
• TOP DOWN

8
Push or Pull ?
9
Push or Pull ?

• Market pull
• Will most likely give less  exotic  results
  but much faster and with a higher success rate
• Technology push
• Will most likely give more  fancy  results but
  it will take more time
• DO NOT NEGLECT MARKET PULL

10
Push or Pull ?

• High Tech is very  prestigious 
• BUT
• Traditional sectors industries offer a large
  market for technology Services
• DO NOT NEGLECT
• TRADITIONAL SECTOR INDUSTRIES

11
RDI Restructuring
12
R.D.I. Restructuring

• A challenge all over the world for
• Political reasons
• Economical reasons
• Financial reasons

13
R.D.I. Restructuring

• The ultimate goal is to
• Build up strong links betwwen RDIs scientists
  and Industry
• Integrate RDIs activity into national economy
• AND
• Provide private financial support for RDIs

14
R.D.I.Restructuring

• Governance
• Management
• Funding

15
Governance

• A managing board including representatives of
  Industry
• With decision making power
• Which defines medium and long range strategy
• An executive officer (CEO) with an industrial
  background ?

16
Management

• Critical size RD teams
• On some  selected  topics
• Stimulation of team working
• Stimulation of interdisciplinary projects
• Technical comitees associating some industry
  representatives

17
Management

• Human Resources Management
• Individual evaluation
• On a yearly basis
• Based on individual goals
• Individual  financial  rewards
• Based on performances
• Incentives to stimulate industrial links

18
Management

• Encouraging communication
• External (with industry)
• Internal (team work)
• Ultimate Goal
• Publicly owned
• Privately managed

19
R.D.I. Funding

• From 100 public funds
• TO
• Be  self-sufficient 
• New funding schemes are
• A goal
• AND
• A tool

20
R.D.I.Funding

• Ex. TNO The Netherlands
• Ex.Applied US Applied Univ. Centers
• (in the 80s)
• Ex. ANR (French National Agency for Research)
• Funding of RD based on  project 

21
R.D.I.Funding

• Ex. F.P. 7th program
•  Research for the benefit of Smes ()
• A few Smes (3 to 5)
• Some RDI (RD providers)
• For market oriented projects
• () Former CRAFT Program

22
Funding

• Indirect funding
•  
• Cifre scholarships
• Technology  diagnostics 
• Public support for technology services to
  industry
• To hire specialized consultants
• To prepare and file a patent
• .

23
Two  provocative  statements
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Statement Nb.1

• Working with industry will  degrade  my
  scientific level.

25
Statement Nb. 2

• Local industry is very traditional and does not
  need advanced technology

26

• Thank you for your attention
• Gilbert Nicolaon
• Win.tech_at_club-internet.fr

27
Policy Exercise No. 1

• Applied RD policy
• In order to prepare the Ukrainian economy to
  compete in a free market, when Ukraine will join
  the E.U., the Minister of Economy asked you to
  suggest concrete, short and medium term, steps to
  stimulate RDI restructuring.
• Describe processes, actors, measures,
  schedule..

28
Policy Exercise Nb. 2

• RDI Management
• You are the Director of an RDI.
• You are asked by the Minister to restructure
  your RDI in light of the forthcoming reform and
  budget cuts to recommend 4 or 5 concrete
  measures to stimulate cooperation with Industry
  and to increase your revenues from  outside 
  sources.
• Management, Human resources, IPR,.