Technology Transfer: Challenges and Issues for SMEs

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1 2009/SOM1/IPEG/SEM/006 Session: 4a Technology Transfer: Challenges and Issues for SMEs Submitted by: Opteon From Mind to Market: The Highs and Lows of Technology Transfer Singapore February 2009

2 4(a) Tech Transfer: Challenges and Issues for SMEs APEC IPEG Singapore 23 February 2009 OPTEON Philip Mendes Principal Level 5, 138 Albert St Brisbane QLD, Australia Ph Fax philip@opteon.com.au Outline Themes in this session Technology transfer from universities Obstacles faced by SMEs in relation to technology transfer Demystifying common SME perceptions, challenges and issues Models to help overcome perceptions, challenges and issues Outline What are some of these perceptions, challenges and issues faced by SMEs, in their relationship with universities Description of an innovative SME engagement model by an Australian Cooperative Research Center, CAST CRC Limited

3 Perceptions, Challenges and Issues How do SMEs perceive universities? University research perceived to be Distant and inaccessible Basic research not applied research The R end of R&D, and little of the D end of R&D Driven by the need to publish, when commercial use and secrecy is sought by the SME Expensive SMEs cannot often afford a research or development program measured in years, with a research team of multiple researchers CAST CRC Limited CAST has an innovative program that has largely overcome these perceptions in one industry sector has created significant economic value for the SMEs in the program What is CAST? A Cooperative Research Center A 7 year R&D collaboration in the light metals manufacturing sector ($7B sector) Funding and resources brought together from Australian Government 5 universities CSIRO 2 multinational companies 5 Australian companies, including 1 SME 1 industry association

4 CAST CRC Limited Snapshot Intellectual Property 21 patent families Commercialisation 15 intellectual property licenses granted (2 of which are to SMEs) Academic benefits 136 refereed journal and conference papers Economic benefits $29 million in documented savings, increased sales and profit to companies 36 new jobs created amongst companies Environmental benefits 108,000 tonnes of CO 2 equivalent in greenhouse gas savings CAST s Best Practice Program Initially targeted specifically at the die casting industry Die casting is the process of forcing molten metal (and alloys) under high pressure into mold cavities To make parts and components From large engine blocks To small components Automotive industry a big user

5 CAST s Best Practice Program Die casting companies are often SMEs, making components, which are sold to car manufacturers Challenge for CAST How to Develop a relationship with die casting SMEs Assist them, technologically, in their businesses Scepticism initially on SME s attitude to learning Survey indicated that 80% of die casters believe they are in the top 20% of their industry but they can t all be Capacity to absorb technological change CAST s Best Practice Program 3 features of the Best Practice Program Benchmarking (how is a specific company performing) Training (how can that performance be improved) Specific projects to transfer technology into the SME Benchmarking a diagnostic exercise on how an SME is performing companies often think that they are performing better than they are outcomes that identify areas for improvement stimulate curiosity, learning, and willingness to change, and willingness to adopt new measures

6 CAST s Best Practice Program Specific projects to transfer technology into the SME Problem solving teams are formed Composed of personnel from the SME, and personnel from CAST To address a specific product, process or systems improvement problem Commercial problem Environmental problem Occupational health and safety problem Projects are not consultancy projects, but on the boundary between consulting and the D in R&D CAST s Best Practice Program Case Study The problem Australian die casting company Convertor housing for Corvette Need to overcome consistent manufacturing defects What CAST provided Access to modeling software & expertise The solution Better model for the component Novel casting approach Superior casting quality Elimination of defects Lower cost

7 CAST Best Practice Program Outcomes for SMEs from the Best Practice Program Cost savings Increased profits Energy savings and CO2 emission reduction More efficient processes Reduction in manufacturing defects Better cast components Trusted and valued relationships between SMEs and researchers Diminishing impediments to SME / researcher interaction in the D phase Best Practice Program catalyst for engagement of CAST by SMEs to undertake research projects in the R end of R&D to realise greater value Now, extension of the Best Practice Program into the foundry industry How were these outcomes achieved? What makes the Best Practice Program work? Willingness of academics to engage with SMEs in projects that are on the border of being consulting / research projects Demonstration by CAST of Benchmarking data An SMEs s performance benchmarked against that data Areas where there can be improvement Building of a trusting relationship between the SME and the scientist Demonstration of economic benefit to the SME from outcomes of projects Breaking down perceptions that Academics are lofty and inaccessible Academics insist on owning the IP Academics want to publish at the expense of protecting the IP