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The National Science Foundation's Tokyo Regional Office periodically reports on developments in Japan that are related to the Foundation's mission. These reports provide information for the use of NSF program officers and policy makers; they are not statements of NSF policy.
Whereas the promotion of regional S&T activities has become an integral part of government policies for economic and industrial development in many countries, "cross-regional S&T collaboration" beyond national boundaries has been drawing much attention among policy-makers and researchers in recent years.
An International Workshop on "Cross Regional S&T Cooperation in
Asia" was held on March 17-18, 1998 at Hyogo House in Kobe, Japan
under the joint sponsorship of the National Institute of Science and
Technology Policy (NISTEP) and the Hyogo Prefectural Government.
Fifteen presentations were made including keynote addresses by speakers
invited from 15 Asia-Pacific nations, including Australia, China, India,
Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Russia,
Thailand, the U.S., and Vietnam. The workshop was divided into several
sessions by the main theme of discussions:
For each session, 3 to 4 papers were presented by speakers, followed by discussions between the speakers and the floor. Summaries of those discussions are also included below.
Noteworthy was the fact that at the closing round-table session, several speakers from various countries expressed the hope for holding this type workshop periodically in the future, or for keeping the network for communication for the promotion of Asia-Pacific cross-regional S&T collaboration. Some of them even suggested establishment of a center for cross-regional S&T cooperation. Dr. Gonda of the NISTEP has agreed to take the lead in developing a draft plan for this purpose, through close contact with Dr. Jain of India, Dr. Kong of China, and others.
What follows are short summaries of each paper presented at this
workshop, including the question-and-answer sessions. The agenda
(program) of this Workshop is attached as an appendix at the end of this
report.
NSF/Tokyo: M. Miyahara (TRM#98-09)
OPENING SESSION
The workshop was opened by Mr. Yukio Sato, Director-General of the National Institute for Science and Technology Policy (NISTEP). Mr. Sato pointed out that Japan is now undergoing a revolutionary change in her total socio-economic system, and so is the rest of the world; a phenomenon towards a borderless international society that can be characterized by such words as mega-competition, Internet and global issues. As an example, Mr. Sato mentioned that the Internet has led to knowledge-based and network-based societies. Referring to Japan's Science and Technology Basic Law, and the Science and Technology Basic Plan that called for the development of a new perspective for local and regional S&T activities, Mr. Sato emphasized the need for regional S&T activities to be linked with other regions ("transboundary") while taking advantage of each region's distinctive strengths and contributions. Along this line, he said, the International Workshop at this time has been organized around four main themes, namely 1) Framework of International Cross-regional S&T Collaboration, 2) Commercialization of S&T Outcomes in Regions, 3) Utilization of S&T Resources in Regions, and 4) Our Environment for Technology Development and New Industries.
Following Mr. Sato's opening remarks, Governor Toshitami Kaihara of Hyogo Prefecture, extended his welcoming remarks as a co- host of this International Workshop. With the 21st century just around the corner, he said, the expectations of the regional roles in meeting various challenges have become greater than ever. He emphasized the importance of partnership and cooperation of various regions not only within each nation state but also internationally with those in other countries. He also expressed his great expectations for the opportunities to be offered by the SPring-8, a new large-scale Synchrotron Radiation Facility constructed near Himeji in Hyogo Prefecture, for international research collaboration of scientists, especially of the Asia-Pacific Region.
KN-1: "Economy and S&T in Asia" by Mr. Masaru Yamano, Chairman, Committee on Science and Technology, Kansai Economic Federation
Mr. Yamano quickly reviewed the great advances made in S&T during the past century, such as the development of relativistic quantum mechanics leading to the "liberation" of atomic energy for human use, and the advances in solid state physics that have brought forth highly integrated and highly-functional semiconductor devices thereby making it possible to build an advanced information-based society. He noted that many of the advanced technologies could be used for both positive and negative objectives. Development of rockets was an example he quoted as a technology used for launching, on the one hand, warheads in wartime and, on the other hand, for launching satellites for peaceful use. S&T has been developed with many questions still pending unresolved, including for example, the large number of accidents in nuclear facilities, destruction of the ozone layer due to release of chemical substances, acid rain, global warming, the question of brain death, organ transplants, etc.
Regarding the current status of Japan's S&T, he noted that while Japan is relatively strong in applied research and development, it is lagging far behind the United States and other industrialized countries in terms of basic research, and in terms of strategic linkage between basic research and applied or developmental research. He said development of a system for strengthening basic research and also for more efficient transfer of useful technologies is what is needed for Japan.
Creation of new industries through close university-industry collaboration is another area of importance. As one possible scheme toward this end, steps are being taken by the Kansai Economic Federation to develop a network of the various research institutions, both industrial and academic, in the Kansai (Western Japan) economic region, so as to encourage closer collaboration of many institutions, rather than letting each single institution conduct research by itself. Promotion of "venture businesses" in the region is another goal to be achieved through the university-industry-government collaboration in the region. He cited a need to invigorate existing industry-university-government centers so that they work together in venture industries.
As regards the regional cooperation among Asian-Pacific nations, Mr. Yamano pointed out the need to pay due respects to the greatly- diversified religions, languages, customs and practices observed in various countries in Asia inasmuch as they are deeply-rooted in the long cultural history of each country. On the other hand, he also indicated his concern over the possibility for people in many of the Asian countries to try to simply copy the way of life of advanced industrialized countries, with the risk of repeating the same processes of environmental destruction that had occurred in industrialized countries. To cope with this problem, Mr. Yamano suggested the need for the industrialized countries to do their best in developing and testing environmentally- friendly technologies and to transfer them to the developing countries; a step to achieve collaboration rather than confrontation.
As an example of such international collaboration, Mr. Yamano quoted the so-called "Silk Road Genesis" project in China. In this project, it is planned to utilize a solar photovoltaic power generation system for supplying 3 KW/h of "clean energy" for individual household use. In practice, such a system is used in combination with the conventional power supply system of a utility company. For an experimental project in China, Japanese government is contributing one- third of the project cost at present.
Another example, he quoted, was an ODA project started in 1992 to establish seawater desalination plants in African Senegal to produce freshwater. At the total cost of 300 million yen, this plant supplies 150 ton of freshwater per day.
In concluding his presentation, Mr. Yamano emphasized the merits of these projects in that they can provide Asian countries with environmentally friendly energy sources that may lead to the development of new industries in those countries.
KN-2: "Another Asia: Towards a Local to Local Technology Cooperation System" by Dr. Young-Ho Kim, Kyungpook National University, Taegu, Korea
Dr. Kim introduced a new concept of what he called 'Another Asia.' It is not an Asia of nation states or national economies, but an Asia connected on a local level. The 'Another Asia' represents a new dimension of cooperation among local governments and economies in Asian countries; implying creation of inter-local economies in Asia. This could also be called 'Asia of Locals' in analogy to what is called 'Europe of Locals.'
In any event, Dr. Kim said, Asian countries are now building up 'Another World' or 'Another Region' by way of enhancing collaboration among local governments and/or local economies.
Another new concept he introduced at this Workshop was what he called 'reglobalization,' a concept with the emphasis given on collaboration and exchange among locals in neighboring countries or in a region, rather than locals being directly connected to the world. Cited as a typical example of 'reglobalization' was NEAR (North East Asia Regional Authority Cooperation) established in Kyungju, Korea last fall, with about 950 local governments in Northeast Asia participating as members.
In terms of cross-local S&T collaboration occurring beyond
national borders, Dr. Kim listed eight patterns based on the function of
markets as follows:
Dr. Kim also suggested four models for the promotion of cross-local
S&T collaboration, including:
Naturally, a combination of the four models listed above should also be possible for a new model for the promotion of cross-local technology collaboration.
SESSION 1:
FRAMEWORK OF INTERNATIONAL CROSS REGIONAL S&T
COLLABORATION
1-1: "Perspectives of Cross-regional Science and Technology Collaboration in Asia" by Dr. Kinji Gonda (NISTEP, Japan):
Dr. Gonda discussed spatial mobility of industries both within and across national boundaries. Based on statistical data collected for each of the 47 prefectures in Japan, he illustrated the close relationship between Japanese investments overseas and the hollowing-out of industrial plants in a number of prefectures within Japan, with the North Tohoku area known to have been most severely affected by the relocation of Japanese industries into Asian countries. Dr. Gonda also introduced findings from a survey conducted every three years by NISTEP to review regional (local) S&T activities of prefectures and municipal governments. He said, more than 50% of their S&T-related expenditures were for the management of their public research institutes (about 600 institutes in total) supporting technology transfer and modernizing local traditional industries. Speaking of the local public research institutes, he pointed that many of them are time-honored with long histories. For example, about 100 years ago, many public laboratories were founded as a means towards modernizing Japanese industries. Dr. Gonda also displayed a chart to show the number of international S&T exchange programs supported by prefecture and city governments, indicating that some prefectures, such as Osaka, Hokkaido, Iwate, Miyagi, Aichi, Hiroshima and Fukuoka are very active, while others are not.
As a summary, Dr. Gonda suggested that cross-regional S&T
coperation can be classified into 5 categories as follows:
1-2: "Some Considerations on Cross-Regional S&T Collaboration in Asia" by Prof. Kong Deyong (The State Science and Technology Commission, China)
Professor Kong Deyong proposed to establish a center in Asia for gathering and utilizing "knowledge," and to name it the "Asian Center for Tech-knowledge for Development (ACTKD)."
He said, today science and technology play an increasingly
important role in the development of economy, society and environment.
Having a center for cross regional science and technology collaboration
would therefore benefit the people and nations in Asia. According to
Professor Kong, some of the issues that beg the establishment of ACTKD
are:
1-3: "Creating Wealth from Science" by Mr. Hamish Campbell (Ministry of Research, Science and Technology, New Zealand)
Mr. Campbell presented an outline of the Technology New Zealand scheme and an overview of the New Zealand government's wider science and technology investment framework.
Total investment in R&D in New Zealand increased from NZX$825 million in 1993/94 to NZ$889 million in 1995/96, an increase of 8%. Despite this increase, New Zealand's investment in R&D has not kept pace with rising GDP. As a result, the proportion of GDP spent on R&D has dropped from 1.02% in 1993/94 to 0.99% in 1995/96, while the average investment in R&D by other OECD countries increased during this time from 1.76% to 1.80% of GDP.
The New Zealand government has developed three strategies for technology policy. Each strategy has its policy objectives and desired outcomes identified. To achieve these outcomes the Technology New Zealand scheme and its three programs were developed.
The Technology New Zealand scheme aims to provide a
motivating and enabling investment to foster enhanced levels of
technological innovation within New Zealand's small and medium sized
enterprise sector. The scheme is a government-funded initiative and
consists of three interrelated programs:
Questions and Answers for Session 1:
Following the formal presentations noted above, the floor was opened for questions and answers, to wit:
-- Dr. Nuna Almanzor of the Philippines raised a question to Dr. Gonda asking for elaboration of his remarks on R&D funds spent for higher educational institutions. In response, Dr. Gonda pointed out that the expenditures for higher educational institutions referred to in his paper were those funds spent by regional (local) governments. The key issue, he said, was to see how effective the regional government's investments in higher educational institutions were in terms of activating the regional economies, or in modernizing the small and medium enterprises in the respective region. One of the problems was the lack of incentives on the part of many professors working in public (local) universities for supporting R&D in small and medium enterprises; an issue currently under discussions at various levels. Although many regional governments have been trying to develop some type of framework to promote cooperation between local universities and the private sector, especially local small and medium enterprises, it is still difficult to find success stories in terms of technological innovations or new industries generated therefrom in Japan. Nevertheless, in some areas, there are people working hard to resolve the various problems involved in order to help the small and medium enterprises through increased collaboration with public (local) universities, either by means of technology transfer, or by developing new technologies. Also, some universities are now trying to set up incubation programs to spur new businesses.
-- Regarding data presented by Dr. Gonda suggesting that agriculture contributes only about 4% of GDP, a comment was made from the floor pointing out that the UNESCO statistics shows the ratio of R&D expenditure in agriculture to be something like 20%, raising the question of whether or not research on biotechnology was included as part of agriculture in Dr. Gonda's data. To answer the question, Dr. Gonda explained that some data included expenditures for biotechnology, but they were limited. In the public research institutes, many research projects involving agricultural technologies, including biotechnology, R&D on plants and microorganisms are supported but they are not directly related to the manufacturing industries, unlike the fermentation technologies or pharmaceutical technologies.
-- Regarding Dr. Kong Deyong's presentation, a question was raised as to whether or not it is necessary for Asian countries to list the lessons learned from the recent East Asian economic crisis, and whether any actions are being planned in this context. In response, Dr. Kong stated that it would be very difficult to determine the effect of hollowing out of industries on the local regional economy. In some regions, he said, factories have been closed leading to unemployment problems. Often they are small businesses related to industries moving elsewhere.
-- Another question was raised to Dr. Kong Deyong on what lessons were learned from the recent East Asian financial crises. Dr. Kong answered that there are a number of different causes for the financial crises occurring in East Asian countries. Just before the conference he said he had talked to Dr. Kim about South Korea. The financial crisis in South Korea was due to lack of control over Korea's financial systems, including the bubble economy, corruption, and so on. But, to improve the economic problems, it would be important to promote S&T, through international cooperation.
-- Dr. Ashok Jain of India added his comments at this point. He said the Asia Pacific Center of Technology Transfer of the United Nations had commissioned a study with Dr. Jain's group in India to review the questions just raised. The pattern is strategic foreign direct investment. To start with, mature industries are relocated with a scale of production much less than what is available internationally, and he thought the Japanese have a tremendous advantage in this respect. Mature technology is characterized by management of production, which provides a comparative advantage. After a few years, like what one can see happening in Malaysia, or Singapore now, the Japanese foreign direct investments will have shifted into somewhat new technologies.
SESSION 2:
COMMERCIALIZATION OF S&T OUTCOMES IN REGIONS
2-1: "Commercialization of R&D Outcomes: Thailand Experience" by Mrs. Kobkeao Akarakupt (Ministry of Science, Technology and Environment, Thailand)
Mrs. Akarakupt presented an overview of the current status of S&T in Thailand as follows:
-- Science and technology in Thailand are relatively weak due to several constraints, including 1) lack of S&T manpower in both quality and quantity, 2) limited capabilities for technology transfer, 3) low investment in S&T development, with R&D expenditures at about 0.18% of GNP in 1993 and 0.13% in 1995, and 4) insufficient and inconsistent S&T infrastructure development.
Nevertheless, a number of programs have been established by various organizations responsible for the promotion of R&D in S&T including: 1) Ministry of Science, Technology and Environment (MOSTE) established the Revolving Fund for Technology Research and Development (RFTRD) in 1985 to promote technological R&D by providing low interest and long term loans; 2) The Office of the National Research Council of Thailand (NRCT) is responsible for the support of R&D activities in public and private sectors, and provides financial support for cooperation among the Thai and foreign researchers we well as research institutes; 3) Thailand Institute of Scientific and Technological Research (TISTR) initiates and conducts research activities on S&T for economic and social development; 4) National Science and Technology Development Agency (NSTDA) performs and supports R&D and engineering activities, through its three National Centers (the National Center for Genetic Engineering and Biotechnology, the National Meal and Materials Technology Center, and the National Electronics and Computer Technology Center); 5) The Thailand Research Fund (TRF) provides support for research activities and encourages Thai researchers to cooperate with international organizations on research projects of mutual benefit; 6) The Industrial Finance Corporation of Thailand (IFCT) also provides financial support to private industries in many areas including R&D in S&T; and, 7) Office of the Board of Investment (BOI) gives incentives to promote foreign investment in Thailand as well as R&D activities by various means.
-- The Need for Further Cross-Regional and International Collaboration: Mrs. Akarakupt noted that many countries in Asia including Thailand have been suffering from the economic crisis for about a year now. However, she said, much has been learned from the crisis, reminding them of the need for reform of the nation's economic policy and systems, and the need to upgrade the nation's S&T capabilities through international and regional S&T cooperation.
As a step towards this goal, she proposed three specific areas for cooperation: i) Cooperation in technology foresight: Thailand has established the APEC Center for Technology Foresight to promote adoption of technology foresight across APEC member economies. This center will also conduct technology foresight exercises to improve the quality and effectiveness of technology-related planning and development and priority-setting for research across APEC; ii) The establishment of S&T R&D Park (STRDP) in Thailand will link R&D and production activities among public and private sectors by 1999; iii) The Thailand Metrology Institute, which is responsible for the analysis, testing, quality control of products and calibration on tools and materials, is seeking cooperation with other countries in this area; and iv) International networks through regional cooperation such as APEC, ASEAN, ASEM, STEPAN and G7, or bilateral agreement.
2-2: "Beyond Researching: Enhancing Utility of Public Research Findings" by Dr. K. Thiruchelvam (Ministry of Science, Technology and the Environment, Malaysia)
Dr. Thiruchelvam of Malaysia presented his paper entitled "Beyond Researching: Enhancing Utility of Public Research Findings."
According to him, Malaysia's R&D expenditure is around 0.22% of GDP, as compared to 1.6% in Singapore, 2.5% in Korea and 2.8% in the U.S., Switzerland and Japan. Also, their R&D manpower is low - about 400 per million population while most advanced countries have a ratio exceeding 4,000.
In view of this situation, various policy measures are being taken by the Malaysian government including 1) increasing allocations for public sector R&D; 2) support schemes for industry driven R&D; 3) separate S&T Human Resources Fund; 4) separate funding for R&D in multimedia technologies; 5) R&D tax incentives; and 6) Technology Acquisition Fund and Commercialization Fund.
In particular, a program called "Intensification of Research in Priority Areas (IRPA)" has been implemented for the past seven years as an important strategic tool for the government in S&T development of the public sector. Presently, 33 organizations are grant recipients under IRPA, with the total IRPA funding level increased to RM 1 billion at present. However, a preliminary study on selected research projects already funded under IRPA revealed that many projects, though technically sound, have not been economically relevant. Poor linkages and poor diffusion of findings from IRPA supported public R&D have been pointed out as weaknesses. To overcome these weaknesses, various measures are being taken, such as 1) special allocation for commercialization activities, 2) increasing collaboration between public research institutes and universities, 3) initiation of "Teaching Company Scheme" for university students to earn academic credits by working in private companies, 4) priority of funding accorded to projects with industry participation.
Based on these experiences in Malaysia, Dr. Thiruchelvam concluded that in order to further enhance research utilization, ever greater efforts would have to be made for 1) developing a competitive environment for research funding, 2) expanding scope of IRPA funding, 3) more autonomous operations of public research institutes and universities, 4) expansion of diffusion activities, and 5) changing mindset of researchers to be more responsive to end-user (client focused or value adding concept).
2-3: "Commercialization of S&T in Regions ? The Australian Scene" by Dr. Brian Hickman, Illawarra Technology Corporation Ltd., Australia
Dr. Hickman presented an outline of the various mechanisms
available in Australia to support R&D and technology commercialization
. Currently, about 28% of R&D spending is for basic research. Half of
government support for R&D goes into universities. Hickman's outline
follows:
The emergence of university owned commercial R&D companies is another trend noteworthy in Australia. While other Australian universities have sought to achieve commercial objectives through their normal administrative structures, the University of Wollongon determined at an early stage that effective operation in a commercial and industrial environment required the establishment of a truly commercial entity, Illawarra Technology Corporation Limited - or ITC for short. ITC is the fully owned commercial enterprise of the University of Wollongong, one of Australia's leading universities. ITL earns over 50% of the Corporation's annual revenue, which is expected to be $27 million in 1998. In terms of size and turnover, ITC is among Australia's top university companies mandated to provide educational services and technology development. ITC's client list includes major Australian and transnational corporations, international development agencies, government authorities and individual students. One of ITC's main activities is to commercialize the intellectual endeavors of the University of Wollongong. To this end, a Technology Development Fund has been established to seed fund commercially viable R&D projects.
Mr. Hickman also noted that in many instances, organizations in Australia have tended to concentrate on short to medium-term planning. Moreover, the focus in developing and implementing new technologies is short-term in nature. Industry must start to develop a long-term perspective and develop plans that incorporate a 10-20 year horizon and which will drive shorter term planning. Central to this process is developing the foresight to identify appropriate technologies that are needed over a longer time frame.
Questions and Answers for Session 2:
-- Dr. Hickman (Australia) commented that for Australia it is important to place more emphasis on applied research and development, as distinct from basic research. The R&D conducted in universities needs to be linked to national R&D and innovation strategies, with a long-term vision and longer-term programs for R&D in Australia. He further stated that Australian technology development activities must link into other Asian scientific and technology development through strong international collaboration. Recently, there is an increasing recognition of the need for collaboration between Australia and its Asian neighbors, rather than the traditional relationships that have existed with Europe and the United States. Also, he said that there is need for increasing private sector investment in R&D, and that until the investment by private sector increases further, the full benefit of the government expenditure on R&D cannot be realized.
-- Dr. Jain of India noted that in several countries, including Malaysia and Australia, tax incentives have been implemented for R&D. However, Dr. Jain said, an assessment on similar schemes in India has found that tax incentives really did not encourage R&D. There were hardly any innovations to which this money can be attributed. So, he wanted to know if any assessment has been done in Malaysia and other countries.
In response, Dr. Thiruchelvam of Malaysia, commented on the Malaysian experience. He said that, as yet, no formal assessment has been made on the scheme, which is called "double reduction scheme" for firms that undertake R&D. In this scheme, if a company spends, for example, 100 dollars for R&D, then it can claim a tax credit for $200. A very preliminary study on this scheme revealed, he said, that it has actually only benefited big firms but not the smaller firms. Also, it appears to have been subjected to abuse. In short, this scheme of employing tax-based measures is not working in a way it was intended for. Thus, the government is now thinking of moving away from this to a matching-fund scheme, which would require more commitment from industry.
-- Dr. Hickman of Australia added comments based on the Australian experience. He said, while it is very difficult to obtain real quantitative results, some reviews came out with positive conclusions that the scheme has resulted in an increased level of R&D in industry. Certainly, R&D in the private business sector has occurred in Australia since 1990 when the 150% tax reduction scheme was first introduced. However, the tendency has been for the large proportion of the money going to medium and large size companies, while the responses from small companies have been somewhat disappointing.
-- Dr. Almanzor of the Philippines raised a question for both Dr. Thiruchelvam of Malaysia and Mrs. Akarakupt of Thailand. With reference to their earlier comments on the poor utilization of R&D for lack of adequate information on market demands, Dr. Almanzor pointed out that in the Philippines, market studies would be carried out before initiating an R&D project so that the research results would be eventually utilized. This leads to the question in her mind as to how R&D projects are selected in Malaysia and Thailand. More specifically, she wanted to know what criteria were used in selecting the R&D projects, and also how the industries participate in those R&D projects.
-- In response, Dr. Thiruchelvam of Malaysia indicated that only rarely do researchers in universities and public research institutes think about how their R&D findings can be utilized. Perhaps, it is now time to make a ground rule for the research organizations so as to encourage researchers talking to potential end-users of research findings. Heretofore, researchers in public sector research organizations and universities have been very poor at selling their research findings even though they are usually very good in terms of technical expertise. So, if the research organizations should start asking their researchers to talk to the end-users before initiating an R&D project, the chances of success of the project would be greatly enhanced.
-- As a follow-up, Dr. Almanzor of the Philippines commented that the reason why she had raised the question in the first place was because she had thought if researchers had been encouraged to talk to the potential end users before starting their projects, it would have helped make their R&D efforts more focused on the kind of research needed by the industry. She said, in the Philippines discussions are currently underway on these questions so that some solutions to the problem common to all economies in the Asia/Pacific region might be forthcoming.
-- Then, Mrs. Akarakupt of Thailand added her comments that the private sector in Thailand has little interest in R&D. To cope with this situation, the government has tried the strategy of tax exemption for R&D. Yet, the reactions from private sector were not very encouraging as only few have applied for tax exemption, and the government spent only 200 million Bhat last year.
-- Dr. Hickman of Australia, agreed that it is absolutely essential for any applied R&D programs to talk to potential end users at an early stage. He pointed out that the Commonwealth CSRI Research organization has had very rigorous criteria in selecting R&D projects to support. One such criterion he said is prospectivity, namely how successful an R&D program can be in terms of the outcome to be utilized.
-- Another question raised by Dr. Jain of India referred to the mechanism in Australia for collaboration between universities and industries. In response, Dr. Hickman reported that there are 67 cooperative research centers in Australia, with some of them having been set up in which the partners contribute personnel and equipment and money, while other centers are more or less for joint venture activities. They all have an independent board of governors who must have industry representation, and also have full-time executive director whose job is to coordinate the parties involved. Some of the cooperative research centers have as many as 15 collaborating institutions and companies, with the result of fairly complex management requirements.
SESSION 3:
UTILIZATION OF S&T RESOURCES IN REGIONS
3-1: "Blending Technologies of Traditional and Modern Industries: A Case for Cross Regional Collaboration" by Dr. Ashok Jain (National Institute of Science and Technology and Development Studies, India)
With reference to the art of weaving in India, Dr. Jain reviewed the relationship between traditional technologies and modern industrial technologies. Whereas this relationship has often been discussed in the context of rural development, technical factors that cause low productivity and profitability of the traditional technologies practiced in rural areas could be overcome by adopting a 'technology blending' approach in which the elements of traditional and modern are combined in such a way to retain local knowledge and specializations. He argued that the emergence of information technology has further enhanced the flexibility of technology blending. The impact of information technologies on manufacturing (modern industry) has been to make production processes feasible for producing products to meet varied customer needs.
In the context of regional cooperation, Dr. Jain said, 'technology blending' provides a new avenue for cooperative efforts in S&T. Capabilities in information technologies namely in software, automation tools and production process control systems exists in the Asian region. Simultaneously the region is also a rich source of traditional technologies especially in sectors that attain a 'niche' in the global markets on the basis of regional features. Although cross-regional collaborations through joint ventures and joint research in specific subject areas have received attention, the potential for collaboration in technology blending exercises has so far not been sufficiently recognized. As Dr. Jain pointed out, such collaboration requires: 1) Design of automation tools for processing, manufacturing and design of traditional items that have a 'niche' in the global markets, and 2) Making operating systems user-friendly-oriented as close as possible to the natural skill domain of control technicians. Thus, he said, such R&D and industrial collaboration appears to be a worthwhile Asian agenda.
3-2: "Regional S&T Cooperation in Asia-Pacific: A Review and Some Proposals" by Dr. Nguyen Van Hieu (National Center for S&T, Vietnam)
Dr. Nguyen Van Hieu pointed out that there are many scientific problems facing neighboring countries in the Asia-Pacific region, including natural hazards and environmental problems. He emphasized the need as well as the benefit of international scientific collaboration for the observation, prediction and prevention of such natural hazards as earthquakes, typhoons and so on. Monitoring of the environment is, he said, another area of importance and he spoke of the contributions made by Japan's NASDA under the auspices of ESCAP's regional program for space technology applications.
Dr. Hieu also discussed the importance of developing regional "centers of excellence" for cross-regional scientific cooperation. As an example, he made reference to the Asia-Pacific Center for Theoretical Physics (APCTP) in Seoul. Another example he cited was the establishment of the Asia Committee for Future Accelerators (ACFA) for the purpose of utilizing large-scale accelerators for the promotion of advanced accelerator research in the region.
Enhancement of cross-regional scientific exchanges was another issue Dr. Hieu emphasized in his presentation. As examples of the most effective forms of scientific exchanges in the region, he spoke of the various Asia-Pacific scientific conferences and forums, workshops, seminars, etc., all organized by various scientific societies and other groups in the region. In particular, he expressed his great expectations for the roles to be played by such organizations as UNESCO, UN University and UNIDO; as well as the Association for Science Cooperation in Asia (ASCA).
He concluded his presentation by expressing thanks to various organizations in the region that have for many years been supporting bilateral scientific cooperation with Vietnam, including CSIRO (of Australia), CAS (China), JSPS (Japan), KOSEF (Korea), CSIR (Taiwan), and ITRI (India).
3-3: "Elaboration of Chemical and Electrochemical Technologies for Utilization of Natural and Energetic Resources and Solution of Ecological Problems" by Prof. N. B. Kondrikov (Far Eastern State University, Russia)
Professor Kondrikov discussed the current status of technologies used in utilizing natural resources available in the Primorie region, Russia and technologies for resolving ecological problems in the region. As Dr. Kondrikov's presentation was a highly technical one about electrodialysis and was not germane to this conference, it will not be mentioned further.
3-4: "Analyzing the Spatial Allocation of Industrial Resources" by Dr. S. Collins, University of Washington. (Currently, NSF/STA Postdoctoral Fellow at the Kanagawa Industrial Technology Research Institute)
Representing a project participated by several researchers from NISTEP, Tokai University, the Japan Industrial Location Center, and the University of Washington, Dr. Collins presented findings from a study on the spatial allocation of industrial resources. In the project, an attempt was made to develop a set of quantitative indicators of industrial concentration, specifically to seek answers to three questions. First, how localized are Japan's manufacturing industries? Second, what is the relationship between localization and competitiveness of regional industries? Third, how do regions differ in terms of the concentration of industrial activity? The technique used was to develop indices of industrial concentration that measure the localization of industrial activity in prefectures, cities/towns/villages, and industrial districts. These indices were calculated for as many manufacturing sectors as possible, using readily available industrial statistics compiled annually by MITI.
For comparisons of Osaka and Kanagawa, which Dr. Collins discussed in detail, the indices were calculated based on annual data on the number of firms (NOF), number of employees (NOE), value of manufactured products shipped, and value-added over the period 1980 to 1994 in 160 three-digit manufacturing industries. Comparing Kanagawa and Osaka provided insights into the problems that beset older industrial regions in Japan. They share many similarities, including similar populations and per capital income. But in many ways they are very different. Companies in Kanagawa ship far more manufactured products per employee than do firms in Osaka, which reflects the much greater average size of manufacturers in Kanagawa. Kanagawa firms specialize in older, machine and electrical industries. Historical circumstance has made Osaka strong in a number of unusual niche markets, including carpets (81 percent of national shipments), thermos bottles (79%), and umbrellas (45%). Firms in Osaka are much smaller on average than those in Kanagawa. By contrast, Kanagawa's firms are extremely large by Japanese standards. Osaka and Kanagawa therefore have very different industrial characteristics, despite their many demographic similarities. Based on these observations, examples for application of the spatial allocation indices were explained. In case of the organic chemicals industry in Kanagawa, for example, the graph clearly showed a steep decline both in number of firms and employees since the early 1980s; in addition, it showed that the industry was concentrating geographically, suggesting that firms on the periphery are closing down, leaving behind a shrinking core that is relatively concentrated geographically. A different dynamic was at work in the electronic device industry in Kanagawa. From 1980 to 1987 the industry grew while spreading out spatially. After 1987, this trend reversed, beginning a pattern similar to that observed in organic chemicals. Employment, on the other hand, has increased in concentration since the 1980s, though the downward slide showed no sign of stopping.
Dr. Collins also reviewed implications of such other indices as: 1) the Industrial Location Index (ILI) that measures concentration of industries in a given space; 2) Concentration Index of Industrial Restructuring (CI/RIS) which measures concentration of industrial structure in a given region; and 3) Coefficient of industrial accumulation (CIA) which is a simple measure of concentration of a single industry in a given region. In conclusion, Dr. Collins pointed out that both regions (Osaka and Kanagawa) are losing manufacturing base; Osaka much more quickly and more profoundly than Kanagawa, and that in both regions some industries are spreading out while others are clustering; that is shrinking while spreading out. He emphasized the importance for policymakers to focus on the economic regions, rather than political regions, since economic boundaries often shift over time.
Questions and Answers for Session 3:
A comment was made from the floor to Dr. Collins, suggesting that traditionally in Japan a geographical unit of "g-u-n" (county) was often used as the basic unit for various surveys and planning purposes. Since a "g-u-n" is demarcated often by natural geographical features, such as rivers, mountains, etc., it should be a better unit than a prefecture for the kind of studies carried out by Dr. Collinsf group at this time. In response, Dr. Collins agreed that characteristics of a region were important in a study like this. For example, in the U.S., siting of steel industries was decided by access to transportation (railways), and automobile industries not only by access to transportation systems but also access to raw materials such as iron ore, rubber, etc.
March 18, 1998 (Wed)
SESSION 4:
ENVIRONMENT FOR TECHNOLOGY DEVELOPMENT AND NEW INDUSTRY
4-1: "Management Development Needs for a Science Based City at Serpong, Indonesia" by Dr. J. Moersito (Agency for the Assessment and Application of Technology, Indonesia)
Dr. Moersito presented an overview of the Science Based City (SBC) project started in Indonesia in 1978. Covering an area of 1000 hectares in Serpong, about 30 kilometers southwest of Jakarta, SBC is expected to support industrial development in Indonesia by various S&T activities to increase industrial productivity, improve quality of products and to create new industries.
SBC has three major components, i.e. 1) the Center for Research, Science and Technology (PUSPIPTEK), 2) the Science Based Industrial Park (SBIP) and 3) Education facilities. Conceptually, the primary function of SBC is to increase utilization of expensive, sophisticated research equipment that will be concentrated in PUSPIPTEK. As the core of R&D activities, PUSPIPTEK will perform basic research and research for developing new products and production processes contributing to SBIP. As an area for small and medium scale industries, SBIP is the gate to large scale industrial estates outside SBC, for example, the industrial estate in Techno Park, a special industrial park area provided for certain industries. SBIP is not merely an ordinary industrial park, it will embody national industrial development policy of the country, as well. The 3rd component of SBC, Education facilities, is directed to strengthen human resources.
Even though PUSPIPTEK itself is expected to drive R&D activities in Indonesia, cooperation with other institutions outside PUSPIPTEK is necessary to gain both return on investment and for increasing the service capacity of PUSPIPTEK in future. This calls for a link among PUSPIPTEK, education facilities and pioneer industrial estates resulting from applying new technologies.
At present, 17 laboratories are in operation in the PUSPIPTEK area. The laboratories and their supporting facilities can carry out tests, calibration and research for a wide variety of industries. Currently, six S&T fields are covered in PUSPIPTEK including 1) material science, 2) basic industries (mechanical, marine, chemicals, electrical and aeronautics), 3) electronics, 4) bio-technology (pharmaceuticals), 5) energy, and 6) production technology.
When the first laboratory came into operation in 1981, the number of personnel was only 82. In the 1993/1994 budget year, all activities in PUSPIPTEK were run by more than 2,500 people (37% researchers, 45% technicians and operators, and 18% administration staff). On the other hand, "education facilities", the third component of SBC, is practically non-existent yet, although a non-governmental educational institution has been residing in the SBC area. At present, improvement of human resources in PUSPIPTEK is conducted by providing scholarships for degree program and training program overseas as well as within Indonesia. Dr. Moersito pointed out that it is still a dream to create SBC as a 21st century technopolis. A study concluded that the root of all development problems was managerial issues rather than fundamental S&T capabilities and hardware. The major constraints faced in developing SBC and operating facilities can be grouped in three categories: activity coordination, financial support and human resources. Until now, overall management for SBC is non-existent even though some conceptual structures of management organization have been proposed in a few consultative meetings. Activities of laboratories in PUSPIPTEK are not moving toward innovative research to feed SBIP yet, rather orienting merely to service and contract research to make money as soon as possible. After 15 years of operation, no patent has yet been recorded from PUSPIPTEK.
In conclusion, he emphasized that in order to realize SBC as originally planned, it will be necessary to establish SBC management with appropriate authority and strong coordination capacity. The general management structure and the roles of line management so far proposed are limited to a general idea, and an in-depth study is needed (with political-will) to realize the goals first envisaged.
4-2: "Technology Business Incubator: The Philippine Experience" by Dr. Nuna E. Almanzor (Industrial Technology Development Institute of the Department of Science and Technology, the Philippines)
Dr. Almanzor discussed an outline of the Technology Business Incubator (TBI) Program developed in the Philippines as a model mechanism for technology transfer and technology commercialization. The TBI model extends support to start-up businesses that are entering new technology ventures. Support is in terms of providing an optimum operating environment that would enable them to get established and operate on their own within the shortest possible time. The "environment" consists of business spaces equipped with common facilities for production, access to technical and business consultant services, access to R&D outputs, marketing, and other forms of assistance. The TBI is a combination of an incubator, a demonstration center for appropriate technologies, a showcase for mature technologies, and a training center on practical technology. Operationally, the guiding principle of TBI is that the technology venture must be technically and commercially viable and must be nurtured on a self-help basis. It nurtures start-up businesses only on temporary basis (usually 3-5 years).
Through the TBI Program, the TBI tenant gets first hand information on newly-developed R&D outputs, since the tenant's operation will be located right in the Science Community. The availability of common service facilities reduces the tenant's overhead expenses. Those common service facilities accessible include: machinery and equipment, office spaces, conference rooms, office equipment, communication system, training facilities, chemical/electrical equipment, basic utilities, audio-visual facilities, display and exhibit center, and so on. The TBI tenant can also tap the marketing assistance services of the Technology Application and Promotion Institute as well as support/auxiliary services available in the system, including management services, business advisory, training services, and linkage assistance services.
The TBI Program is open to: 1) Filipino individuals who will engage in light manufacturing business ventures in pioneering areas, 2) Industrial service enterprises where the owners are not actively engaged in production but perform varied tasks without the help of a specialized staff, 3) Potential entrepreneurs requiring technical assistance in project identification and development, technical evaluation, and in marketing and promotion, 4) manufacturers of products that are clearly related to on-site R&D, 5) professional services related to business operations, and 6) support services such as maintenance and machine shops, etc.
Launched in early 1990, the TBI Program has recruited a substantial number of TBI tenants, and includes many success stories. Moreover, in addition to DOST-TBI, seven more TBIs are being set up in different parts of the country.
In conclusion, Dr. Almanzor stated that the Technology Incubator Program initiated by the DOST helped in the creation of new SMEs. The concept started at its Bicutan Science Community and now has spread to other parts of the country.
4-3: "R&D to New Business: An Experiment of Hyogo Prefecture at Harima Science Park City Using SPring-8" by Dr. Jun-ichi Chikawa (Center for Advanced Science and Technology, Hyogo Prefecture)
Dr. Chikawa first reviewed the history of technology development over the past century, based on numerous episodes of great inventions and discoveries made to date (including the first air flight by Wright brothers, discovery of radio waves, invention of radio communication devices, etc.). He noted that during the 20th century, innovations have upgraded many technologies by 3 orders of magnitude. For example, he said, the radio vacuum tubes (~ 10-15 cm in size) have been reduced to ICs of ~10 microns, memory chips of a few hundred kilobytes in capacity are now gigabyte chips, microscopes of ~0.2 micron level in resolution have now been improved by electron microscopy to ~0.1 nanometer level.
Based on these observations, Dr. Chikawa noted that the new century will bring about synthetic or integrated technologies, rather than discrete technologies, in order to cope with many difficult-to-solve technical problems, such as cancer therapy, environmental problems, and energy issues. He expressed his great expectation for the new century to realize many dreams of human beings through innovations and technology breakthroughs.
As an example of a regional-level (namely, prefectural) S&T project, Dr. Chikawa presented an outline of a project initiated by Hyogo Prefectural Government for the development of an ion-beam cancer therapy system, which will utilize one of the beam lines of the SPring-8, the new 8 GeV Super Photon Ring Synchrotron Radiation Facility, constructed by JAERI/RIKEN in Harima Science Park City near Himeji, Hyogo Prefecture. According to Dr. Chikawa, one beam line at the SPring-8 facility has been set aside for the exclusive use for experiments to be carried out by the Hyogo Prefectural government. To begin with, a project to develop an innovative X-ray cancer diagnostic and therapeutic system is being supported as a cooperative research project by about 20 research laboratories in Japan, as well as Australia's CSIRO.
Dr. Chikawa also reported that the Hyogo Prefectural Government started a small program this year to help individual researchers or groups of researchers develop their ideas into industrial businesses. A unique feature of this program is to pair a natural scientist with an economist; this pair will serve as coordinators. He believes that while scientists are good at technologies, they are not necessarily skilled in selling their ideas to business; hence the need for the paired. He said any inquiries for further details should be directed to himself.
Questions and Answers for Session 4:
-- Dr. Gonda raised a question to Dr. Almanzor regarding the incubator program in the Philippines. Because new venture businesses have a high probability for failure; he asked for Dr. Almanzor's comments about such experiences in Philippines. In response, Dr. Almanzor pointed out that while a tenant can stay with TBI from 6 months to 5 years, the tenant himself is expected to explore the market for his products. In principle, a tenant is expected to run the business and assume all the risks involved. Asked what the success ratio is in the TBI program, Dr. Almanzor indicated that it was rougly 50:50; in other words, half the tenants were successful while the rest failed.
-- Dr. Jain asked about the possibility for SPring-8 to be used as an
international incubator. In response, Dr. Chikawa mentioned that already
several project teams are thinking of utilizing the SPring-8 for incubation
purposes. The coordinators (of the prefectural government) could play an
important role in expanding the use of SPring-8 as incubator for venture
businesses in the future.
Appendix:
Program
9:00-9:20
11:00-12:00
14:00 - 15:20
(15:50-16:10 Break)
16:10-17:30
9:00 - 10:00
10:50-11:50