UNIVERSITY – GOVERNMENT -INDUSTRY COLLABORATION

Satryo S. Brodjonegoro and Bagyo Y. Moeliodihardjo

Problem Solving

Organization

Knowledge Organization

Governance

Lesson Learned from Selection of Options by Users

Business DevelopmentHealth Improvement

Food ResilientSustainable Environment

INNOVATION SYSTEM

PRODUCT OF INNOVATION

National Strategy• Increasing the capacity and capability of science and

technology resources to conduct productive R&D beneficial to the national production sector;

• Increasing the capacity and capability of R&D institutions and supporting institutions to support transfer process from the idea-laboratory of prototype-industry to prototype-commercial product (strengthening the national innovation system);

• Developing and empowering institutions or individual researcher networks at national and international levels to support the productivity improvement and empowerment of national R&D;

• Increasing the creativity and productivity of national R&D to meet the demand for technology in the industrial sector and improving competitiveness of national products and innovation culture;

National Strategy (2)

• Improving the application of national science and technology for economic development, creating new jobs to increase people awareness of the importance of science and technology;

• Setting seven science and technology priorities, namely i) food resilience, ii) energy, iii) information and communication technology, iv) transportation technology and management, v) defense and security technology vi) health and medicines, and vii) advanced material to support other priority area of focuses.

Implementor

• individuals and or groups of people who are conductingresearch, development and application of science and technology;

• science and technology institutions, such as universities, R&D institutes, business entities and supporting institutions.

Government Budget

• Major source for R&D activities in Indonesia;

• 90% of R&D budget spent by government institutions;

• There is a rigid funding mechanism (government fiscal regulation) for R&D activities

R&D Personnel

• Low number of qualified R&D personnel;

• Majority of them working in government institutions/state-owned corporations/public universities;

• 90% of them are civil servants.

Funding Mechanism

• Current mechanism is not effective for R&D activities;

• Current mechanism is appropriate only for construction project but not for knowledge project (such as R&D);

R&D in Universities

• DGHE funded activities;

• R&D in collaboration with industries;

• Non-DGHE supported activities;

• Community services.

Universities Grants Value (IDR) Average Size per Grant (IDR)

INSTITUT TEKNOLOGI BANDUNG 13 3,584,970,000 275,766,923

INSTITUT SEPULUH NOPEMBER 7 1,756,550,000 250,935,714

UNIVERSITAS NEGERI SEMARANG 6 1,478,500,000 246,416,667

UNIVERSITAS PADJADJARAN 6 1,289,220,000 214,870,000

UNIVERSITAS HASANUDDIN 5 1,281,150,000 256,230,000

UNIVERSITAS MUHAMMADIYAH SURAKARTA 5 1,175,500,000 235,100,000

UNIVERSITAS BRAWIJAYA 4 1,003,800,000 250,950,000

INSTITUT TEKNOLOGI TELKOM 4 929,700,000 232,425,000

UNIVERSITAS TADULAKO 3 809,620,000 269,873,333

UNIVERSITAS MUHAMMADIYAH MALANG 3 790,000,000 263,333,333

UNIVERSITAS INDONESIA 3 708,000,000 236,000,000

UNIVERSITAS MURIA - KUDUS 3 702,500,000 234,166,667

UNIVERSITAS SUMATERA UTARA 2 567,650,000 283,825,000

UNIVERSITAS SAM RATULANGI 2 540,000,000 270,000,000

UNIVERSITAS WIDYA GAMA 2 533,333,000 266,666,500

UNIVERSITAS PENDIDIKAN INDONESIA 2 525,000,000 262,500,000

UNIVERSITAS MATARAM 2 490,000,000 245,000,000

INSTITUT PERTANIAN BOGOR 2 479,700,000 239,850,000

UNIVERSITAS WIJAYA KUSUMA 2 415,000,000 207,500,000

UNIVERSITAS GADJAH MADA 1 299,650,000 299,650,000

UNIVERSITAS SEBELAS MARET 1 287,300,000 287,300,000

UNIVERSITAS JENDERAL ACHMAD YANI 1 275,000,000 275,000,000

INSTITUT TEKNOLOGI ADHI TAMA 1 272,500,000 272,500,000

POLITEKNIK MANUFAKTUR BANDUNG 1 272,100,000 272,100,000

UNIVERSITAS CIPUTRA 1 270,760,000 270,760,000

UNIVERSITAS NEGERI MALANG 1 270,000,000 270,000,000

UNIVERSITAS NEGERI YOGYAKARTA 1 270,000,000 270,000,000

UNIVERSITAS HALUOLEO 1 250,000,000 250,000,000

Sources of revenue Total self generated revenue

Percentage of contract

BHMN Student Contract Others

INSTITUT PERTANIAN BOGOR 322,240 0 0 322,240 0.00%

INSTITUT TEKNOLOGI BANDUNG 590,021 123,850 42,736 756,607 16.37%

UNIVERSITAS AIRLANGGA 293,162 72,788 1,990 367,940 19.78%

UNIVERSITAS GAJAH MADA 709,735 100,000 213,645 1,023,380 9.77%

UNIVERSITAS INDONESIA 891,975 125,973 61,172 1,079,120 11.67%

UNIVERSITAS PENDIDIKAN INDONESIA 302,037 0 0 302,037 0.00%

UNIVERSITAS SUMATERA UTARA 399,603 25,300 19,372 444,275 5.69%

TOTAL BHMN 3,508,774 447,911 338,915 4,295,600 10.43%

BLU

UNIVERSITAS NEGERI JAKARTA121,743 15,183 148 137,074 11.08%

UNIVERSITAS PADJADJARAN494,428 29,534 113,177 637,139 4.64%

UNIVERSITAS DIPONEGORO317,046 58,207 30,774 406,027 14.34%

UNIVERSITAS NEGERI SEMARANG86,175 6,246 22,053 114,474 5.46%

UNIVERSITAS SEBELAS MARET193,725 - 34,884 228,608 0.00%

UNIVERSITAS JENDERAL SOEDIRMAN116,136 30 3,468 119,634 0.03%

UNIVERSITAS NEGERI YOGYAKARTA139,305 11,000 18,485 168,790 6.52%

INSTITUT TEKNOLOGI SEPULUH NOPEMBER150,599 73,677 23,249 247,526 29.77%

UNIVERSITAS NEGERI SURABAYA117,098 43,676 7,188 167,961 26.00%

UNIVERSITAS BRAWIJAYA232,380 171,275 44,783 448,438 38.19%

UNIVERSITAS NEGERI MALANG147,082 81,426 21,476 249,984 32.57%

UNIVERSITAS ANDALAS165,232 327 28,567 194,125 0.17%

UNIVERSITAS RIAU146,766 - 1,050 147,816 0.00%

UNIVERSITAS SRIWIJAYA209,497 6,520 12,233 228,250 2.86%

UNIVERSITAS LAMPUNG90,818 - 4,082 94,900 0.00%

UNIVERSITAS MULAWARMAN127,070 4,210 17,527 148,808 2.83%

UNIVERSITAS HASANUDDIN185,056 70,000 4,944 260,000 26.92%

UNIVERSITAS HALU OLEO54,670 1,200 2,146 58,015 2.07%

UNIVERSITAS BENGKULU82,789 - 1,945 84,734 0.00%

UNIVERSITAS TERBUKA1,265,590 - 2,485 1,268,075 0.00%

UNIVERSITAS NEGERI GORONTALO33,126 - 900 34,026 0.00%

TOTAL BLU4,476,331 572,511 395,563 5,444,406 10.52%

Other R&D activities

• Government institutions

– Non-ministerial R&D

– Line ministries

– Local government

• Industries

SECTOR Budget (IDR billion) %GDP

Higher education 1,821 0.031%

Manufactiring industries 880 0.017%

Government 2,019 0.036%

TOTAL 4,720 0.084%

University-Industry Collaboration

• Lack of understanding and mutual trust– Inadequate institutional framework for culture innovation

– Lack of shared vision about the autonomy process

• Impact of uncertainty in autonomy policy

• Financial management

• Balancing individual with institutional interest

• Incentives to promote R&D culture in industry

• Agriculture based downstream industries

• Regional disparity– Institutional capacity

– Limited human resources

Other Actors of Innovative Collaborations

• Business sector

• Public research institutes

• Linkages between actors

• Special funding mechanism

Current Constraints• Few incentives for knowledge workers to cooperate with government agencies;

• Unstable financing in knowledge institutions;

• Uncompetitive wages propelling analysts to donor and private sector programs;

• Government constrained by civil service rules and promotion criteria in recruiting and retaining high quality researchers;

• Indonesian university bureaucratic structures not rewarding policy research/ publication;

• Quality of education in Indonesia, does not encourage innovative, creative thinking and research;

• Poor oversight and review lowers the quality of knowledge products;

• Government lacks autonomous structures and skill mixes for obtaining reliable internal policy analysis; and narrow supply of knowledge resources limiting the diversity of policy perspectives and preventing quality improvement through competition.

• Indonesia has no overall policy that supports knowledge for national development;

• Government budgeting and procurement rules are extremely complex and unwieldy, geared primarily for large-scale infrastructure contracting rather than for the types of activities normally carried out by knowledge partnerships;

• Government managers lack strong incentives to hire the most qualified groups nor does it have effective mechanisms for providing quality control;

Key Initiatives for Strengthening UIG Collaborations

• The quality and the number of proposals submitted to the RAPID scheme was a bit disappointed when the DGHE tried to increased the budget allocation to cover more grantees. It might indicates that the number of potential grantees is also limited.

• Allocating DGHE’s fund for the benefit of the industrial sector through RAPID also implicates that the education sector provides direct subsidy for the industrial sector. Therefore a cap is applied to limit the total budget allocation and the nominal value of each grant.

• The extent of formal UIG collaboration is still limited due to the limited number of qualified researchers and due to limited industrial R&D capacity. On the other hand, there is very little incentive from GOI for industry to conduct R&D, therefore industry is not too keen in collaboration with university.

Key Initiatives for Strengthening UIG Collaborations (2)

• The assessment criteria for each of the schemes provided either by DGHE or MoRTmeets international standard i.e. in compliance with the universally accepted standard/practice. One of the constraints is the limited peers available to conduct the assessment while peer review is the most powerful tool for assessment. GOI may have to invite international peers to assist DGHE and MoRT in conducting peer review for selecting the most prospective UIG collaboration.

• The eligibility criterion for each scheme is clearly defined to avoid any duplication or overlapping between UIG collaboration grantees. One of the constraints is the limited qualified researchers in industry, which limits the number of industries that could participate in UIG collaborations. Although claimed themselves as “industries”, a significant proportion of such companies limits their activities in trading. Therefore this kind of business do not require R&D.

• The existing government’s funding scheme requires a considerable staff’s time to implement, particualrly to comply with the detailed accountability procedure, i.e. collecting receipts and signatures. In the dencetralized scheme piloted by LPDP, a significant staff time could be released. The scheme could be managed by allocating less number of staff.

Key initiatives for strengthening UIG collaboration (3)

• Informal collaboration between researchers and industry is not properly recorded in the university database system. This mainly happens in the university and not in industry since university staffs are mostly autonomous and very flexible although many of them are civil servants. Their nature as professors or lecturers make them very independent, and they are very active in making collaboration with industry or real sector or business sector. On the other hand, community is always referring to university or experts when they face problems. They believe that university could solve any problem.

• The impediments to performance in the current schemes are the rigid budgetary regulation and civil servant regulation that prevent merit system.

• The impediments to improvement in the current schemes are lacking of political will to reform the budgetary regulation and civil servant regulation, and lacking of knowledge regarding researchers and proper research programs.

• The ideal new scheme should be that GOI has an independent funding agency for research and education and also health care, and the essential design parameter for this is the strategy on people driven empowerment.