Sebato’s Triangle Redux: The Preferred Model for Industry-University Partnership?

Triple Helix Workshop “Building the Entrepreneurial University”

Stanford UniversityTriple Helix Research GroupNovember 13, 2012

                   

Wayne C. Johnson

California Institute of Technology

Perspectives that Matter

~ The State of the World ~

~ State of Education ~

~ The State of Business ~

The State of the World

Globalization is here to stay,Driving Changes of Equilibrium in…

• Standards of Living

• Economic Performance

• Educational Success

The State of BusinessIndustry Adapts to Globalization

Unrelenting Change

• Explosive Growth (some regions)

• Shrinking (others)

• Rebalancing• Offshoring• Onshoring• Outsourcing• Insourcing• Downsizing• Rightsizing

+ =

Sabato’s Triangle

•Academia

•Industry •Government

•Sabato’s Triangle

•Foundations

•Enlightened Self-Interest

•National System of Innovation

Changing the Ecosystem: Opportunity For Strategic Partnership

Knowledge Supply Chain

• Universities and industry generate knowledge and transfer knowledge.

• Barriers between the two cultures impact the ability to create new knowledge to satisfy society.

The Knowledge Process of the Future

• Outcomes for industry include more effective access to knowledge => reduced technology development cycles.

• Outcomes for universities include increased funds and capacity for pursuing relevant basic research.

10 25 Jan 2008

What is going on around the world?

Developing nations are making significant investments in S&T and innovation for

economic development

0

20

40

60

80

100

120

140

160

180

200

0

1

2

3

4

5

6

7

8

9

10

GE

RD

/ GD

P %

GDP 1960 US$0.7 bil 2009 US$178 bil (254X)

GERD 1978 S$37 mil 2008 S$7.1 bil (192X)

GERD/ 1978 0.2% GDP % 2008 2.7% 2015 3.5%

RSEs / 1990 27.710K FTE 2008 87.6 (3.2X)

Labourintensive

Skillintensive

Capitalintensive

Technology Intensive

Knowledge Based /Innovation Driven

Science & Technology Plan 2010

(2006-2010)

S$13.9 billion

Science & Technology Plan 2005

(2001-2005)

S$6 billion

National Science &

Technology Plan (1996-2000)

S$4 billion

National Technology

Plan (1991-1995)

S$2 billion

Transformation of Singapore’s Transformation of Singapore’s EconomyEconomy

Singapore as a global S&T hubSingapore as a global S&T hub

Partnerships in Talent DevelopmentMultiple Career Opportunities

PhD RSEs at A*STAR

Research

Start Ups

Academia

Industry

Research Leadership

A*STAR-Academia Pathway, University Joint appointments,Adjunct appointmentsSecondment

Awarded President’s Science and Technology Medal in 2009

13,000 papers published to date (FY2006-2010)

950 primary patents applications filed to date (FY2006-2010)

850 RSEs spun out to industry, including 150 RSEs to 100 SMEs through T-Up to date (FY2006 – 2010)

14 25 Jan 2008

Trends and Issues

Critical Success FactorsCritical Success Factors • A clear, shared vision between partners• Sustained commitment to mutual goals• Investment in talent development and

infrastructure• Policies that support R&D• Respect for intellectual property rights• Fluency in English• Ability to integrate across borders and disciplines

Innovation for GrowthThe Obama Initiative

•16

April 8, 2023 17

Universities Must Respond -Partnerships

for the Future

Industry-Caltech interactions - 3 distinct levels

30 11 August 2010

Holistic EngagementTraditional Engagement

Levels ofEngagement

Industry - University Relations Partnership Continuum

Extraction:Shared Tactics

Collaboration:Shared Ideas

Strategic Partnership:

Shared Aspirations

Level 1

Level 2

Level 3

Earthquake Disaster Management Earthquake Disaster Management System NeedsSystem Needs

Pre-Event (months –years)• Risk Assessment• Emergency Preparedness • Risk Mitigation & Recovery Planning• Capacity Building

During Event (seconds)• Early Warning Alerts (10s of seconds)• Move to safe zone• Shut down of critical infrastructure

Aftermath (hours-years)• Emergency Response• Situation Awareness• Damage Assessment• Damage Mitigation

IEC Strategic Partnerships IEC Strategic Partnerships

• Open collaboration benefits everyone • Optimized investments for Win-Win-Win

– Universities, industry and government– Improves ability to innovate in order to solve world-wide problems – Enhances international relationships and capabilities–Improved infrastructure and education benefits the world

•Include other university/academic institutions that complement Caltech/JPL capabilities

Funding Model

Industry PartnershipsIndustry Partnerships

US Government PartnershipsUS Government Partnerships

Models for Public Private Partnership in Higher

Education Think Globally <-> Act Locally

…is now…

Think Locally <-> Act Globally

Academia

Industry GovernmentSabato’s Triangle

Foundations&

NGO’s

Enlightened Self-Interest

National System of Innovation

The Partnership Continuum• An

increasing level of trust is developed in the partnership.

• The relationship becomes a holistic engagement in the strategic partnership phase.

“My vision is simply this – the top 50-100 companies and entrepreneurs in America come together and join with government and universities to create the next ecosystem platform: steer the investments, manage the complexity, solve the problems and issues that arise, and work together to create the next level of unbridled innovation and prosperity.”

Wayne JohnsonVice President, HP University Relations

Worldwide

“Innovation 3.0”

April 8, 2023 26

“Today, the only remaining sustainable source of competitive advantage is implementation of new knowledge.”

Lester Thurow

Thank You!

Backup Slides

Partnership Models

Partnership Models• 1-Element (“go it alone”)• 2-Element: Industry-University• 3-Element: Industry-University-Government

−Sabato’s Triangle• MegaCommunities

Model Evolution• Over time, the higher-impact models have

evolved from −1-element (go-it-alone),

− to 2-element partnerships,

−and more recently to 3-element partnerships,

−and finally Megacommunities

Vertically-Integrated Value Chains

• Closed value-delivery systems (VDS)• Example: IBM in the early 70’s• “Go it alone” or, “Do everything yourself” philosophy• Little visibility to competencies “inside” the single VDS• Competitive at the “ends” of the model (Research, and

Customer Delivery)• Essentially, a “black box” model, where something

wonderful comes out at the end• Middle notes in VDS remain hidden from view, not exposed

to competition, and relatively unoptimized

Ideas, R&D,Technology

Products,Services

Circa: 70’s, 80’s for ICTs

IBM

Partnered, Value Networks

• Beginning of transparent value-delivery systems (VDS)• Examples: Raytheon, defense subcontractors• Some outsourcing is taking place, along with selective

insourcing and partnering (non-competitive)• Partners are still discouraged from working with

competitors• Model is competitive at the “ends” (Research, and

Customer Delivery), and co-operative in the middle• Distinctive competencies begin to emerge• Business leaders seek to gain leverage on the

competencies the choose to keep “in-house”

Products,Services

Ideas, R&D,Technology

Circa: late 80’s, early 90’s for ICTs Defense subcontractor

Raytheon

The Emergence of Ecosystems… the Beginning of “Open”

• Optimization around distinctive (core) competencies• Examples: Boeing, HP, Autodesk, nVIDIA• Lines between “competitors” and “partners” begin to blur• All forms of cooperation are entertained• Model is both co-operative and competitive at each node in the VDS (“co-

opetition”)• Disintermediation becomes the norm; spin-offs are common• Costs are driven down, efficiencies are gained, and the end-users and

customers benefit significantly from increased contribution at much lower cost

• Model decisions are managed and optimized on the 1st derivative – how things evolve and change over time (vs. static position, competitive position of today)

Products,Services

Ideas, R&D,Technology

Graphics Companies (ex. nVIDIA)Circa: late 90’s for ICTs

HP, Autodesk

“Open” Value-Net based Ecosystems

• Highly networked, multi-output, multi-stakeholder model• Examples: Individual entrepreneurs, Olin student• “Open Standards” enable rapid evolution, and intense competition• New value nodes are created and destroyed easily and frequently• World-class competencies are needed, in order to survive• One company’s deficiency becomes another company’s opportunity• Cross-discipline, cross-industry contributions are the norm• Cross-geography, cross-cultural “localizations” are the norm• Economies of scale are present, that are simply not possible in

other models

Products,Services

Ideas, R&D,Technology Circa: 2000+ for ICTs

Olin student mfg. in China