Research alliances in East Asia: Cross-border knowledge transfer

and cluster formation

Fumi Kitagawa

CIRCLE(Centre for Innovation, Research and Competence in the Learning Economy)

Lund University21 November, Cardiff University

S A Brains Cardiff.jpg

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Cardiff University

Öresund Bridge

EUI

Cluster Development and Knowledge Transfer :Higher Education Institutions and Regional Innovation

• PhD thesis, 2004 The University of Birmingham, HEIs and Regional Innovation policies in English Regions• European Forum, “The role of universities in the Innovation

Systems” (2005)• Regionalisation of Science and Innovation policies, and Cluster policies in Japan• Transnational R&D networks in East Asia• OECD, Supporting the role of HEIs in regional development

(South Korea and Canada, 2005-2007)• Research pooling in Scotland (to be published in EPS, 2009)• UK-Japan science linkages, internationalisation of HEIs

Background of research topicNew geography of knowledge collaboration- Growing mobilty of human capital (e.g. Saxenian, 2006)- Growing internationalisation of R&D (Reddy, 2000, Edler, 2008)- Increasing technology & knowledge production in emerging

economies in East Asia and East Asian Production Networks (Ernst, 2004)

Different models of Knowledge Transfer (triple helix linkages) and Cluster Development?

- What is the role of national and regional policies?- Regional Innovation Systems : Institutional, Structural as well

as human factors and serendipity

Topics of the presentation• Historical evolution of research alliances in different national

innovation systems in East Asia

• Evolving Triple helix linkages and Cluster Development in East Asia: Inter-organisational and regional learning?

• Multi-national enterprises (MNEs) and Universities: Strategic governance of science and innovation at sub-national level

• Cross-border perspectives and Future research agendas

Global Geography of Sceince and Innovation

• a growing tendency for innovation to be created within global networks of firms and research organizations (Reddy, 2000)

• internationalisation in R&D is growing, shifting the ‘geography of science and innovation’ to the Far East (Edler, 2008)

Research alliances for Knowledge Transfer in time and space

• Different types and motives of ‘cross-boundary research alliances’ (e.g. between firms, between university and firm, between government laboratory and firm)

• From linear model of university-industry linkages to ‘multifaceted relationships’ (Bercovitz and Feldman, 2007) between firms and universities

• From ‘Government-led large co-operative R&D’ (e.g. Sakakibara, 1997) for catching-up and diffusing technology To an ‘alliance-driven model’ (Birch, 2008) of the knowledge-based sectors e.g. life sciences (Cooke, 2004)

• Cluster policies and multi-scalar (local, national and international) linkages in innovation processes

‘Cross-boundary research alliances’Industry-oriented COEs in Japan

This part was prepared in collaboration with Mr. Lennart Stenberg• Combining Business approach and academic approach to Innovation

policy • 21 Innovation Centres for Fusion of Advanced Technologies supported

with funds from the Special Coordination Funds for Promotion of Science and Technology since its start in 2007;

c.f. Swedish equivalent - Vinn Excellence Programme • Unique combination of scientific disciplines and applications organized

under some innovative concept , plus the competence and technology of the partner companies (200 firms) e.g. Fujitsu, Olympus and Shimadzu, Hitachi, Toyota and Pentax…and local firms

• Diversification efforts by large non-life science companies: Many Japanese firms develop new life science related business each starting from the technology base they have built up in their existing businesses. E.g. Canon, Fuji Film, Olympus, Pentax, Toray, Nitto Denko and Dai Nippon Printing

Innovation Center Okayama for Nanobio-targeted Therapy, Okayama University

http://www.bs-network.com/nanobio/english/mainpage/researche.htm

East Asian ‘regionalization’: Competition and collaboration

• East Asian ‘regionalization’ - ‘competition between distinct national business models’ (Ernst, 2004) is no longer a distinctive feature

• firms of diverse nationality compete and collaborate within ‘multi-layered global networks of networks’ of marketing, production and innovation (Ernst, 2004)

• While competition is intensifying among East Asia’s economic agglomerations, inter-linkages between these regions are also growing (Kitagawa, 2005).

Launch your business in Fukuoka and lead the world market!

http://www.investfk.jp/industry_02.html • Semiconductors and Semiconductor Design

• According to World Semiconductor Trade Statistics (WSTS), the global semiconductor market in 2005 reached a record high of USD 227.5 billion, and is expected to exceed USD 245 billion in 2006. The Silicon Sea Belt Zone – the semiconductor belt zone in Asia ranging from South Korea to Kyushu, Shanghai, Taiwan, Hong Kong and Singapore – which includes Fukuoka Prefecture, is responsible for nearly 50% of all semiconductors produced globally, and this growth is expected to continue.

• Sony LSI Design Inc. Logic Research Co., Ltd. JM Technology Inc. Aldete Corporation

• Semiconductor Technology Marketing (STM)

• Institute of System LSI Design Industry, Fukuoka

Success factors of Cluster policies and academic entrepreneurship? : ideas from Fukuoka/Japan

From Coal Mining Region to Asian Hub of Semi Conductors and Environmental Technology

(1) The presence and proximity of leading companies in the leading technology area is matched with entrepreneurial individuals who have acted as nodal points connecting firms, local governments and academic sector synthesizing provisions and projects at multiple levels.

(2) Concentration of research universities supplemented by international research institutes and new training provisions provide the region with human resources and professional skills which serve as prime regional assets.

(3) Regional and prefectural government and support organizations consider creating further incentives to attract large R&D firms as well as encouraging venture capital firms which supplement the activities of large firms.

(4) Firms and universities are collaborating across prefectures through and beyond region-wide innovation support organizations and networks.

(5) A big city provides research capacity for the whole region linking Asian and international markets and networks, attracting talent and skills from overseas through the human and institutional inter-linkages.

Sustainability of cluster policies and academic entrepreneurship? : evidences from Japan

• Strong concentration on development of new technology and on university-industry links

• Vertical sectionalism: Weak combination between industrial, regional, science and education policies (Mitsui 2003); and weak integration of cluster efforts with other regional initiatives to upgrade education, training, finance and other necessary elements (SHAPIRA, 2008).

• Many university spin-out firms have close links with local industry (Nakayama et al 2005);

• But financed by public sources (KNELLER 2007); with the low presence of venture capital in Japan, which is the second lowest in the OECD countries (OECD 2007)

• Clusters as ‘small world networks’ and research intensive universities and core firms serve as ‘connector hub’ (Sakata, et al.2006);

• Kosetsushi Centre are important for local industry and SMEs; Limited financial autonomy of local authorities.

• Appropriate levels of skills and partnerships and alliances among government, universities and the private sector needed.

Broad comparative perspectives to East Asian national/regional innovation systems

Evolving Policies: Triple helix linkages and Cluster Development in East Asia

• From Technopolis policy to Cluster policies in Japan

• Various forms of HE reforms (Japan, Korea, Taiwan, China), reforms of government research institutes

• Research universities as part of National Innovation and Regional Innovation Capacity : city-region development

(e.g. Shanghai - Wu, W. 2007; Beijing and Schenzhen -Chun and Kenny 2007; Korea-Sohn and Kenny, 2007; Taiwan- Matthews and Hu, 2007; Singapore – Wong et al. 2007; Japan-Kitagawa and Woolgar, 2008)

National Science strategies and Balanced regional development

Japan 2001 Knowledge Cluster Industrial Cluster initiatives2006-2010 3rd Science Basic PlanRegional Innovation Systems

Council for S&T Policy (CSTP)21st Century Centres of Excellence

South Korea 2003 Balanced National and Regional DevelopmentRegional Innovation SystemsNURI (New University for Regional Innovation)

Brain Korea 21

China 2006 11th National 5year Guidance, Issues of balanced development; Regional Innovation Systems

Establishing over 40 economic and technical zones to attract foreign high-tech FDIs; Helping MNCs to establish R&D center

863 plan (80s)Torch program (1988- ) 53 high tech zonesReforms in Chinese Academy of Sciences (CAS) Knowledge innovation program (2001-)211, 985 1st , 2nd phase

Inter-organisational and regional learning processes Research alliances and Role of National/Regional Policy as

Agents of knowledge transfer?

‐ Taiwan – Developing local technological capabilities - SMEs, ITRI and ERSO (Dodgson et al 2006); VCs, brain circulation between Hsinchu and Silicon Valley (Saxenian, 2000) and mainland China

- Singapore –Big science initiatives, National Research Foundation (NRF) , A*Star; attraction of foreign talents and institutes (Olds, 2007)

- Daejon/Korea – KAIST, high tech amalgamation and entrepreneurship (Shin, 2001 Sung et al, 2003). C.f. R&D concentration in Seoul.

MNEs and Academic Capabilities: Spatial dynamics in China

• 750 R&D centres with foreign investment in China in big cities (e.g. Beijing, Shanghaim Guanzhou and Shenzen) in 2005

• ”re-integration (R&D with production sales) and re-agglomeration (spatially close to each other)” in the

Beijing-Tianjin city-region (Chen and Vang, 2008)• Competition for talents in Beijing and Shanghai and

Decentralising efforts in collaboration with the top universities in the regions (Chen and Vang, 2008)

• localisation of the MNC R&D centres (Chen, 2006)• Intra-country spatial dynamics (Chen and Vang, 2008)• Building RIS with Universities and MNEs (Wu, W, 2007; Chen,

K, and Kenny, 2007) and the importance of local officials (Segal, 2003)

Source: Sigurdson (2004) Regional Innovation Systems (RIS) in China, Working Paper 195.

Strategic roles of sub-national Governance of Science and Innovaiton

– policy and funding implications• Building technological platform• Venture capital and Financing Platform building• IPR protection and management e.g. IP pooling in Hsinchu/Taiwan• Building ‘academic capabilities’• University-industry research collaboration• Innovation parks and industry clusters• Human resource development and International Mobility • Builing Regional Networks• ‘global industrial transfer’ (Zhou, 2006)• Macro-regulation and micro strategic coordination mechanism of central

and local government in innovation management (see Zhou, 2006)

• Inter and Intra regional disparities: National and regional resource allocation and management

Future research agendas: Cross-border reflections

• HEIs and RIS - Towards Evidence based policy? e.g. UK - ESRC and funding councils: IMPACT initiative: Higher Education

Institutions to Regions

• Governance of International research alliances – e.g. EU Framework programmes as tranasnational R&D networks – learning, knowledge production and spatiality (see Paier and Scherngell, 2008; Scherngell and Barbar, 2008)

• East Asian Production Network...Asianisation of industrial R&D ? and internationalisation of public R&D?

• New Emerging Technologies?

• Globalisation and National/Regional Innovation Strategies.....

• Lessons for Wales?

Tack så mycket!/Diolch yn fawr/

Thank you!

fumi.kitagawa@circle.lu.se