Technology transfer in Lithuania: Sunrise Valley example

info@sunrisevalley.ltSauletekio al. 15, 10224 Vilnius,Lietuva/LithuaniaTel. +370 5 250 06 01Fax. +370 5 250 06 03http://www.sunrisevalley.lt

Lithuanian innovation context• Low level of:

– investment in R&D intensity– business investment in R&D– patent applications– internet penetration (but highest mobile penetration in

the world!)– high technology sectors export share in total export– eCommerce (except e-banking)

SII of the new EU Member States in 2006

• Catching up:– Lithuania– Latvia – Czech Rep.– Poland– Slovenia– Portugal– Greece

• Trailing:– Estonia– Hungary– Slovakia

Source: World Economic Forum www.weforum.org

No.9

Singapore – No.5

US – No.6

Japan – No.7

No.2

No.3

No.4

No.1

No.25

No.36

No.40

Surrounded by the Most Competitive Ones: Global Competitiveness Indexes 2006

No.10

No.8

No.9

Main problems • Gap between education, science and practical needs of

the society• Science and business establishments usually think in

different terms (basic science vs. competitiveness)• Science is engaged more in fundamental than in applied

research• Lack of institutions, facilitating interactions between

science and business systems

↓Results of scientific research are not compatible with

economic demands

Main problems II• “Brain drain”• Low level of entrepreneurship• Lack of trust among different societal groups and in innovation

protection system → lack of social capital• Intellectual property (IP) as a form of social capital does not operate• IP is alien as a social institute• Low level of scientists in business • Undeveloped national systems of innovation protection

↓Innovation in society is still not perceived as a necessary

prerequisite for successful business and economy development

Priorities

• Strong national innovation support systems

• Science-based incubation, science and technology parks

• Public-private partnership • Technology transfer

incentives↓

Enhancement of social capital

• National priorities in R&D and clusters

• Foreign direct investment

• Incentives for business investment in R&D

• Large scale international scientific projects

• Foreign scientific objects↓

Purposeful R&D politics

Social capital

• Social capital:– strong connections, social networks of individuals,

groups, institutions, etc.– represents economic and societal development– Embeds norms of reciprocity, tolerance,

trustworthiness↓

Social capital is prerequisite for higher social, scientific and economic achievements

Knowledge transfer as social capital

• Education, science systems and industries impact maturing of social capital

• Knowledge transfer between these social institutions is important social interaction, part of existing social capital

• Knowledge commercialization (transfer) is a source of innovations and social, scientific and economic development

• Knowledge commercialization helps to create social capital, oriented towards demands of global market

Priorities for technology transfer

• Establishing network between science and business and facilitating partnership

• Identifying supply and demand of knowledge and technology

• Representing and marketing universities and scientists• • Orienting basic science research to more applied research

• Providing services to business by competence derived from universities / research institutions

Priorities for technology transfer

• Business support programs → incubators and science parks not as renting agencies

• Effective and transparent technology transfer system

• High-tech and innovation focused science parks

• International co-operation

Sunrise Valley – bringing business and science together

Knowledge economy in Vilnius

Biotech – Paneriai clusterBiotech – Paneriai cluster

LLasersasers, IT, ITT, T, electronics, electronics,

engineeringengineering– – Sunrise Valley Sunrise Valley

clustercluster

Biotech, IT, medicine – Biotech, IT, medicine – SantariSantarišškkėėss/Visoriai/Visoriai cluster cluster

New materials, New materials, nanonanotechtech

IT, environemental – IT, environemental – North Town technology parkNorth Town technology park

IT, environemental – IT, environemental – North Town technology parkNorth Town technology park

R&D Intensive High-tech Industries in Vilnius

Information and telecommunication technologies

Optoelectronics (lasers)

Semiconductors

Biotechnology

Electronics & Precision mechanics

Nano and micro technologies

Science and technology parks by activity areas

Environmental protection technologies

5%

Engineering, chemical &

food products 12%

Biotechnology1%

Energetics & electronics

11%Medicine & pharmacy

3%

Financial, business and

other concultancy

services23%

IT34%Other

11%

Sunrise campus

• The biggest concentration of studies and R&D in Baltic countries

• Territory of 62 ha reserved for development (including 2,4 ha for business support infrastructure)

Academic and R&D institutions in Sunrise Valley

Vilnius University:

• The Faculties of Economics, Physics, Communication and Law;

• Centre of Excellence in Cell Biology and Lasers (CEBIOLA). ;

• The International Centre of Knowledge Economy and Knowledge Management of Vilnius University;

• The Institute of Material Science and Applied Research;

• The International Business School, Vilnius University Career Centre

• Faculties of Informatics and Mathematics, Chemistry, Natural sciences (to be transferred)

Vilnius Gediminas Technical University:

• The Faculties of Fundamental Sciences, Environmental, Civil Engineering and Business Management;

• Institute of Humanities;• Institute of Internet and Intelligent

Technologies;• International Studies Centre;• The Laboratories of Bioinformatics,

Parallel Computing, Numerical Modelling, Information Systems;

• The Faculties of Electronics, Mechanics (to be transferred)

Market assessment• Doubts as to spin-off creation capacity within universities

• However interest in business start-ups amongst students. More effective entrepreneurship development system needed to catalyse potential

• Steps needed to address obstacles - lack of an IP framework, need for IP sharing arrangements, formal technology transfer mechanisms etc.

• Positive response from locally based firms – 16/31 firms would consider partially/completely relocating to Sunrise Valley. Strong interest amongst IT and laser companies

• Opportunities for increased levels of contract research between publicly funded research/ private sector

• Good inward investment potential. Small but growing no. of FDI inflows in services sector

Market assessment: sectoral dimension

• Strong interest amongst IT co’s and laser firms. Several expressed interest in a business relocation / transferring business functions

• Electronics sector supportive. Investment in R&D critical to survival. Can no longer compete on price but on quality/ innovation

• Biotechnology firms recognised need to work more closely with the universities to ensure future supply of graduates more closely meets skills requirements. Joint research projects possible

• Chemicals firms were not interested in relocation but sectoral association saw scope for contracting out R&D, e.g. plastics sector

• Funding streams available for research in environmental technologies field

Research strengths within publicly funded research

• Vilnius University and Vilnius Gediminas Technical University have a number of areas of research expertise

• Strengths in laser technologies, biotechnology, electronics, engineering, medical devices & material characterization

• Interest amongst private sector in contract research – provided research tailored to more closely meet the needs of business

• Issues around spin-off creation capacity limitations and absence of an IP framework / technology transfer mechanisms

• • Entrepreneurship development programme in

conjunction with Business Schools should improve capacity to create new firms

Gap analysis

• While STPs and incubators in LT have high occupancy rates, focus has been on renting cheap space rather than on high quality service provision/ networking

• Existing STPs/ incubators in Vilnius region don’t have close linkages with higher education

• Need for a high-tech focused science park to attract inward investors

• Effective technology transfer mechanisms are needed to encourage and promote spin-off creation

• Increased investment in R&D by companies is needed. Cost base is increasing & new product development to compete on quality critical

Advantages for companies

• Networking – opportunity to be co-located with other companies in the same sector (critical mass, new business opportunities etc.)

• Research excellence – close proximity of research excellence, joint R&D projects

• Access to skills – access to students and a strong skills base. Internship & employment opportunities to help solve recruitment shortages

• High quality service provision – business and innovation support services provided by professional support providers

• Internationalization – opportunity to tap into European/ international networks that help firms identify new markets, business partners and routes to market

• Access to EU, Russia, Byelorussia markets

Mission and vision/ strategic aims• Sunrise Valley’s mission is to ‘put Lithuania on the map’ as a location

for businesses engaged in knowledge-intensive activities. • The target will be, by 2015, to create a high technology cluster at Sunrise

Valley of 150-200 businesses in ICT, laser technologies, electronics, environmental technologies and biotechnology

• By 2015, SV should directly employ 3,000 people and 5,000 indirectly. • Sunrise Valley will combine start-ups from Vilnius and spin-offs from two

universities with existing SMEs and inward investors

Strategic aims include:– Strengthening interface between higher education and industry– Promoting entrepreneurship & tech transfer– Leveraging intellectual property within the universities– Creating new employment and wealth opportunities in high value added

sectors and improving Vilnius’ competitiveness

Target groups and support infrastructure

• Start-up companies and micro-firms under 3 years old – these will be located in the Technology Business Incubator;

• Existing companies (SMEs) –small firms with less than 50 people located in the and medium-sized companies (up to 250 employees);

• Foreign direct investors – inward investors are also targeted. Speculative space jointly with private investors and operators will be developed to help attract inward investment.

Business Support

Infrastructure(Science and technology park,

business incubator)

Technology transfer,

R&D commercialization (Technology transfer and IPR development

centre) Entrepreneurship Education

(Sunrise entrepreneurship school, enterprise clinics & mentors network,

business plan competitions,

etc.)

Access to Finance

(VC, business angels network,

guaranties, micro credits, loans)

Services for business and science

• SV will serve as a one stop shop facilitating access to high quality services for tenant companies (and other SMEs in the region)

• Relationships will be developed with both business support providers in the private sector and publicly funded support structures (bus & info centres, LVPA, LIC etc.)

• SV oversees implementation of 3 business support programmes –entrepreneurship development, risk capital financing and innovation support

• It will provide basic services in-house (shared services, administrative/ secretarial services, networking events etc.) and contract more specialist aspects of the business support programmes to outside suppliers

• Sunrise Valley develop and operate Technology transfer centre, Business incubator, Entrepreneurship school

Sunrise Valley technology park and business incubator

• First development phase – 2006-2008 (territory of 0,6 ha, up to 14.000 sq m of building space);

• First building of 6300 sq m is planned to be built in September 2008

Sunrise Valley – expansion of STP

• Second development phase – 2008-2015

• Territory of 1,8 ha • Up to 40.000 sq m of building space

Ongoing projects in 2006-2008

Sunrise Entrepreneurship

School

Science and technology

park (STP)Service to be provided:•Lectures and seminars for universities’ students and researchers (including course on IPR management!)•Entrepreneurship clinic and laboratory (network of practical teachings in companies, internships, methodological cabinet)•Creation of business plan (practical and theoretical help for starting business, mentor’s support)•Business simulation games, business plan competitions• Entrepreneurship courses targeted to SMEs, spin-off and spin-outs•Business angel’s investment

•6300 sq m including 900 sq m for business incubator•Priority given to hi-tech companies (mainly in IT, optical and lasers technology, electronics, engineering)•Up to 20% of office space is proposed to business support companies (legal, audit, marketing firms , etc.);•Facilities of STP and business incubator will also include a reception desk and shared secretariat services•Applications from prospective tenants will be for screened by Advisory Panel comprised of representatives from the Sunrise Valley, R&D, financial institutions and business support agencies

Technology transfer centre

The first stage of TTC project development (October 2006 – August 2008) is focused on networking between science and business sectors and methodological development of technology transfer system, applicable in Lithuania.

Main tools:• Methodologies:

– Technology transfer system– Innovation audit and technology scouting– Innovation and creativity fostering

• Seminars on technology transfer both for science and business representatives• “Business lunch” with the aim to narrow the gap between science and business• Creativity trainings• Technology data basis (Vilnius University, Vilnius Gediminas Technical University

and Vilnius Research Institutes)• Information magazines about technological potential in Vilnius University and

Vilnius Gediminas Technical University

Commercial exploitation of IPR

The TTC will serve as the main mechanism for delivering innovation support services to Vilnius region’s companies.

Services to be provided to companies include:• Technology assessment / technology audits of companies• Legal advice on patenting and IPR management/ protection• Marketing, i.e. generating interest in client technologies• Technology marketing and commercialization strategies• Technology partner search i.e. facilitating access to networks of

strategic partnersNon-company focused services that will be provided include:• Technology ‘scouting’ to identify scope for exploitation of technologies /

innovations/ research within VU/ VGTU• Licensing and royalties generation• Intelligence monitoring of technological and innovation developments

Welcome to Sunrise Valley!

Visit Sunrise Valley at:http://www.sunrisevalley.lt