Question For Management
while discussing the techno-entrepreneurship & innovation, we need to give thought to the following question:
· How to tackle the issue of geographical diversity and ethnicity problem in a vast country like Nigeria?
· How to maintain balance between traditional systems and innovations in a country like Nigeria where tradition has a lot of value?
· How to design reward systems to foster innovation and conversion of innovation into entrepreneurship?
· How to solve the problem of – ‘who gets the credit?’
Here, the most important question may be – “who gets the credit?’ Mostly just because of this question, the technological innovation may die. Research and technology institute may have innovative ideas void of support of converting them into entrepreneurship, whereas a management institute can have support for many components of entrepreneurship except technology and innovation. So, if they come together and start an intra-institution interaction and networking, they can best support innovative ideas. But here also, most of the times, the question – ‘who gets the credit?’ will create trouble and act as a hurdle to techno-entrepreneurship and innovation.
Technology business incubation is one of the most important support for commercializing technology innovations/patents. It involves the commercializing of science and technology through newer community institutional arrangements which can be thought of as technology venturing. It concentrates on alliances as an economic development strategy. Technology venturing is based on creative and innovative ways of linking public sectors initiatives and private sector resources within and across regional and national boundaries for promoting economic growth. Technology business incubation can foster corporate and community collaborative efforts, while nurturing positive government-academic business relationships. Technology venturing activities within a community are based on linking four critical factors: (1) talent – people, (2) technology – ideas, (3) capital – resources, and (4) know-how – knowledge. Support for each factor include expanding talent pool, accelerating the transfer of technology, increasing availability of capital and improving availability of managerial, technical and business know-how. The primary drivers of technology business incubation are entrepreneur (i.e. people who make things happen) and technologies or ideas that have potential to be commercialized within a reasonable period (Tornatzky et al., 1996). There is a growing realization that community at large also benefit from small business incubators. Not only can the incubator increase local employment opportunities, it can also diversify the local economic base and enhance the local image as a centre for business activity. The most effective use of incubator as a tool for economic development requires careful consideration of the process by which those entrepreneur choose to participate in the program (Spitzerand Ford, 1989). Allen (1985) has shown relationship between business incubators and start-ups as an entrepreneurial marriage. To qualify for incubation program one must have: sound technical knowledge, competence in focus area, entrepreneurial traits, good business sense, global thinking, conviction and strong perseverance and strong references. So commercialization support in the form of incubation is really essential. We can say that technology business incubation is really a very important mechanism of support for innovators who have patents but lack in business know-how and managerial skills. They can get all the supports for the commercialization of their patents.
Technology business incubator can help one to become an entrepreneur by commercializing his patented technology himself. If this option is not suitable, then the other option is to transfer the technology to well established organizations which can commercialize the patented technology effectively this arrangement will make an innovator earn in terms of royalty without being an entrepreneur himself. So, he can focus on other innovations also. One can transfer the patented technology himself also without taking help of any technology business incubators or any other supporting agencies. Nowadays, various universities and technology institutes have their own technology transfer offices to support the innovations of their faculty members and students.
But the technology transfer mechanism is not always simple, particularly, when the technology is new and has uncertainty. The receiving organization has to carry out feasibility study as discussed earlier. There are no set rules for deciding terms and conditions for technology transfer. Deciding pricing and monetary conditions (valuation of patented technology ) are also very difficult as the patented technology may be quite new and not well tested in the market. These problems may invite frustration to innovators some time.
As highlighted above, there are two options to commercialize patented technology innovations: techno-entrepreneurship and technology transfer. If the innovator is going for the first option i.e., techno-entrepreneurship, he should have enterprising tendencies or entrepreneurial characteristics. If one lacks entrepreneurial characteristic, then technology transfer would be a better option. Some of the entrepreneurial characteristic are given in the following discussion:
Need for Achievement: It includes the sub-characteristics like: Forward looking self-sufficiency, optimism, task-oriented, result-oriented, restless and energetic, self confidence, persistence and determination, dedication to completing a task. Purnima (2006) has given that entrepreneurs should have achievement motivation and Misra et al. (2000) has given important to effective competence. Desai (2001) has given importance to self confidence and energy. These would have some matching with the sub-characteristics given in ‘Need For Achievement’
Need for autonomy: It includes the sub-characteristics like: wanting to do unconventional things, preference to working alone, needs to do his ‘own thing’, needs to express what he thinks, dislikes taking orders’ likes to make up his own mind, does not bow down to group pressure, stubborn and determined.
Creative tendency: It includes: imaginative and innovative, tendency today-dream, versatile and curious, lots of ideas, intuitive and can guess well, enjoys new challenges, likes novelty and change. Purnima (2006) has shown that creativity is an important characteristic for an entrepreneur. Even Desai (2001) has shown importance to creativity and Misra et al. (2002) have covered this in cognitive competence.
Moderate/ calculated risk taking: It includes: acts on incomplete information, judges when incomplete data is sufficient, accurately assesses his own capabilities, is neither over nor under ambitious, evaluates likely benefit against likely cost, set challenging but attainable goals. Purnima (2006) and Misra et al. (2000) both have given importance to this characteristic.
Drive and determination: It includes: taking advantages of opportunities, discounting fate, making one’s own luck, being self-confidence, believing in controlling one’s own destiny, equating result with effort, showing considerable determination.
Other important issues and challenges confronting commercialization of patented technology innovations are:
Obsolescence: Application for patent and acquiring it may frustrate and retard the process of commercialization of technological innovation. The technology may be obsolete by the time the innovator obtains the patent and the demand for the new product and process may decline. Hence, entrepreneur must take advantage of his technology innovation by accelerating commercialization of technology before it becomes obsolete.
Educational background and business soft skill: Lack of soft skill and lack of knowledge of business functions may affect the growth of one’s business enterprise, though the innovator may have good technology innovation.
Recommendations
1. Research in the ivory tower should endeavour to convert intellectual property into commercial reality.
2. There is need to work in partnership with clients in industry an government to develop, refine, demonstrate, and commercialize marketable technologies that provide practical solutions to real- world problems.
3. Government should institute a collaborative programme aimed at facilitating development, demonstration and commercialization of technology innovation projects pertaining to new products or process developments to encourage and promote development of capabilities to innovate and to bring high-risk innovations to the market for opening up opportunities for business linked with innovations. Government can also create a revolving fund for technology innovation for development, up-scaling, demonstration and commercialization of innovative technology-based projects.
4. Government and non-government agencies in our country should lend support for commercialization of technological innovation/patents. Our government should as a matter of urgency establish a board under the Ministry of Science and Technology with full fledged website and web portal, where all the information about techno-entrepreneurship and conversion of technological innovation into techno-entrepreneurship can be obtained.
5. Each university can establish a Research Centre to operate as a business within the University, be committed to the demonstration and commercialization of technological innovations, and aggressively market technological innovation for the benefit of the society and the innovator since commercialization of innovative technologies is key to the creation of high-quality jobs, new wealth and economic prosperity. The Research centre should assist its entrepreneurial partners to cost-effectively translate breakthrough inventions into marketable products. The success of these innovative products in the market place will result in significant economic, environmental, and societal benefits nationwide and/or worldwide. The Research Centre should develop true working partnerships with government, the research community, and private sector clients from all over the nation/globe with a view to leverage federal money with non-federal money.
6. University programmes should combine science and technology with business management for tremendous benefits to the society at large.
7. Universities and research Institute across the nation are advised to establish their technology transfer offices in order to support the technological innovations of their faculty members, undergraduate and graduate students.
8. Teaching entrepreneurship fundamentals should be incorporated into the undergraduate programme in our tertiary institution to engineering students, as done in University of Lagos, in order to build future techno-entrepreneurs with not only techno-innovations but also commercialization of knowledge.
Text of a lecture delivered by PROFESSOR RAHAMON ADE BELLO Vice- Chancellor- University of Lagos at a conference at the University of Ife- Ile- Ife recently)
Leave a Reply