Commercialisation of R&D Output in ICT Industry – A University Perspective Prof. Dr. Noraieni Hj. Mokhtar, Bureau of Innovation & Consultancy. Prof. Dr. Azlan Abdul Rahman, Research Management Center. UNIVERSITI TEKNOLOGI MALAYSIA Seminar on Investment Opportunities for GLCs in Enhancing Competitiveness for ICT Industry, 14 Dec 2004, Equatorial Hotel, Bangi, Selangor

Outline Raise the level of debate among key stakeholders and influencers Observations & re-affirmation Mechanisms & related issues University scenario General recommendations

Raise the level of debate among key stakeholders and influencers

Observations & re-affirmation

Mechanisms & related issues

University scenario

General recommendations

Macro View of National Vision

ICT Research & Production Malaysia will struggle to be competitive in global market if we do not focus on continually improving domestic capacity in ICT innovation and production. Without ICT research & production capabilities , we may well lose the capability to be intelligent purchasers of ICT goods, let alone become pioneers of technologies.

Malaysia will struggle to be competitive in global market if we do not focus on continually improving domestic capacity in ICT innovation and production.

Without ICT research & production capabilities , we may well lose the capability to be intelligent purchasers of ICT goods, let alone become pioneers of technologies.

Relative Importance of University Research OECD Report : the role of technology & innovation as drivers of economic growth the positive impact on productivity growth of strong industry-university links and science-industry collaboration the contribution of ICT particularly on the service sector “ A New Economy? The changing role of Innovation and Information Technology Growth”, OECD/DSTI, 2000.

OECD Report :

the role of technology & innovation as drivers of economic growth

the positive impact on productivity growth of strong industry-university links and science-industry collaboration

the contribution of ICT particularly on the service sector

Relative Importance of University Research OECD Report : Research on national and regional systems of innovation had shown the importance of universities as sources of highly trained manpower and as generators of knowledge “ National Innovation Systems”, OECD/DSTI, 1997: and Local and Regional Systems of Innovation, edited by J. dleaMothe & G. Paquet, Kluwer Academic Pub. 1998

OECD Report :

Research on national and regional systems of innovation had shown the importance of universities as sources of highly trained manpower and as generators of knowledge

Aerospace/ Defense Industrial Machinery Home & Lifestyle products Fashion, Apparel & Textiles Health Services Consumer Product/Services Electronics Bio-medical Products Automotive Advanced Manufacturing Educational Services Info/Media & Entertainment Business services Transport & Distribution Tourism & Recreation Financial Services Business Services Agricultural & Food Processing Construction Materials Energy & Processed Materials Forest Products Metals Resources ICT As Enabling Tool Engines of the US Economy

ICT in Business In the K-economy, ICT is the enabling tool and talented knowledgeable people sharing business creativity progress ahead of others The internet has emerged as an increasingly important information channel for computer-literate businesses Internet firms tend to be particularly well-networked and informed, which gives them a certain advantage over other firms Internet portals and databases are also becoming increasingly important support delivery channels for university-based start ups. Technology has a short life-cycle for commercial sustainability, fierce competition in the globalisation era, innovation and product quality, first market entry and low price

In the K-economy, ICT is the enabling tool and talented knowledgeable people sharing business creativity progress ahead of others

The internet has emerged as an increasingly important information channel for computer-literate businesses

Internet firms tend to be particularly well-networked and informed, which gives them a certain advantage over other firms

Internet portals and databases are also becoming increasingly important support delivery channels for university-based start ups.

Technology has a short life-cycle for commercial sustainability, fierce competition in the globalisation era, innovation and product quality, first market entry and low price

Players in ICT R&D Commercialisation Basic researchers & knowledge creators Developers, sellers of knowledge-embedded technology Individual & organizational users of knowledge and tools Entrepreneurs – building wealth generating platforms Resource suppliers – financiers, governments, collaborators All of us are either one, or all simultaneously

Basic researchers & knowledge creators

Developers, sellers of knowledge-embedded technology

Individual & organizational users of knowledge and tools

Entrepreneurs – building wealth generating platforms

Resource suppliers – financiers, governments, collaborators

All of us are either one, or all simultaneously

Connectivity between Industry & Academia Commercialization of R&D has not been traditionally a high priority of universities During the last decade these efforts have been restructured in leading universities Increased emphasis has been put on connecting R&D capabilities to the commercial strengths and responsibilities of business

Commercialization of R&D has not been traditionally a high priority of universities

During the last decade these efforts have been restructured in leading universities

Increased emphasis has been put on connecting R&D capabilities to the commercial strengths and responsibilities of business

Connectivity between Industry & Academia Efficient transfer of academic knowledge to industry is required due to : the relative importance of university R&D in the country’s system of innovations; the increasing amount of industry-funded research done in universities; the public pressure on universities to show the short-term relevance of their research activities

Efficient transfer of academic knowledge to industry is required due to :

the relative importance of university R&D in the country’s system of innovations;

the increasing amount of industry-funded research done in universities;

the public pressure on universities to show the short-term relevance of their research activities

Government-University-Industry R & D Projects Collaboration and Sponsorships Technology Incubation and Spin-Outs Product Development & Commercialisation of IP Consultancy & Testing Services Professional Training Programs Curriculum/Modules Development for Marketable Graduates Alumni/Professional Bodies

R & D Projects Collaboration and Sponsorships

Technology Incubation and Spin-Outs

Product Development & Commercialisation of IP

Consultancy & Testing Services

Professional Training Programs

Curriculum/Modules Development for Marketable Graduates

Alumni/Professional Bodies

Government-University-Industry When the government acts to champion excellence in R&D and endorse university-industry alliances, the ICT capabilities in our universities benefit both university & industry. Industry, university and government collaboration would attract outstanding researchers, train graduate students, and develop the technology needed to support and drive a broad range of leading edge initiatives.

When the government acts to champion excellence in R&D and endorse university-industry alliances, the ICT capabilities in our universities benefit both university & industry.

Industry, university and government collaboration would attract outstanding researchers, train graduate students, and develop the technology needed to support and drive a broad range of leading edge initiatives.

Proposed Areas High performance networks; Advanced simulation and visualisation software; Data, information, and knowledge repository, storage, access and synthesis; Software engineering; Computer-supported collaborative work; Data and network security; Social science; Entrepreneurial business networking in the ICT sector.

High performance networks;

Advanced simulation and visualisation software;

Data, information, and knowledge repository, storage, access and synthesis;

Software engineering;

Computer-supported collaborative work;

Data and network security;

Social science;

Entrepreneurial business networking in the ICT sector.

From Lab to Market RMC IP Committee IP Unit & BIP IP Unit & BIP Commercialisation committee

Bringing ICT Product to Market Short competitive life span of ICT products/services. Successful commercialization of ICT is critically dependent on bringing products to market quickly . Delay can reduce the useful market life of product and hence reduce the income needed to recover prior investment in R&D.

Short competitive life span of ICT products/services.

Successful commercialization of ICT is critically dependent on bringing products to market quickly .

Delay can reduce the useful market life of product and hence reduce the income needed to recover prior investment in R&D.

High Risk “ We think that commercialization of university research is very very high risk – high risk for the university and high risk for the companies, and the success very much depends on the type of company and our technologies are 10 to 15 years away. So the companies have to consider the long development time before they take on our projects.” Katherine Ku, Director of the Office of Technology Transfer, Stanford University

“ We think that commercialization of university research is very very high risk – high risk for the university and high risk for the companies, and the success very much depends on the type of company and our technologies are 10 to 15 years away. So the companies have to consider the long development time before they take on our projects.”

Katherine Ku, Director of the Office of Technology Transfer, Stanford University

Network Issues & Gaps Lack of entrepreneurship culture among students and university staff; The public sector provides major portion of finance; The public sector is unable to develop new & innovative financing as effectively as the private sector; Frequent organizational change; Fragmented initiatives; Lack of interaction/cooperation between universities , Research Institutions and private sector.

Lack of entrepreneurship culture among students and university staff;

The public sector provides major portion of finance;

The public sector is unable to develop new & innovative financing as effectively as the private sector;

Frequent organizational change;

Fragmented initiatives;

Lack of interaction/cooperation between universities , Research Institutions and private sector.

N ATIONAL I NNOVATION S YSTEM Noraieni, 2002

Key Success Indicators for MSC as Test Ted for R & D Commercialisation RM 124.61 million approved for 56 R & D projects 785 research personnel employed 37 completed projects 15 ICT local and foreign awards won by 9 MGS recipients 6 patents pending in Malaysia/US 5 MGS recipients listed at MESDAQ and more listings to come Source: Ravee MDC

RM 124.61 million approved for 56 R & D projects

785 research personnel employed

37 completed projects

15 ICT local and foreign awards won by 9 MGS recipients

6 patents pending in Malaysia/US

5 MGS recipients listed at MESDAQ and more listings to come

Some Success Stories 5 MGS recipients with market capitalisation of RM 740 million listed at MESDAQ Source: Ravee MDC Customer behaviour analytical engine and financial application data interchange Predictive CRM for financial applications Ingenuity M Software engine that allow users to build mobile and internet based business applications Biz –Engine & E-Biz Infotech Alliance Hardware and software based on SCADA system that captures processes and field information SCADA Willowglen MSC Authentication terminal that verifies a person’s identity through registered fingerprints Finger tec PUC Founder (MSC) CTI Solution to support Unified Messaging, Internet telephony and automatic call distribution Total Enterprise Communication System (TES) Redtone Telecommunications Product Project name MGS recipient

Some Potential Impacts Growing international presence (China, US, Japan) Increase international sales partners and distributors Established foreign R&D company relocated to MSC (US, Singapore) R&D Collaboration with foreign universities (China, Spain) Establishment of World Class R&D Facility Recruitment of R&D personnel with Masters/PhD Increase in patent disclosures and publications Create a pool of software engineers and IC designers National IC Design Institute Source: Ravee MDC

Growing international presence (China, US, Japan)

Increase international sales partners and distributors

Established foreign R&D company relocated to MSC (US, Singapore)

R&D Collaboration with foreign universities (China, Spain)

Establishment of World Class R&D Facility

Recruitment of R&D personnel with Masters/PhD

Increase in patent disclosures and publications

Create a pool of software engineers and IC designers

National IC Design Institute

MSC Hubs and Clusters of R&D MSC Central Incubator UTMJB Kulim Hi-Tech Park TPM USM UPM UKM MMU UM UTMKLCC UNIMAS UMS

MSC – Status in the Southern Corridor IHL & Technopreneur Flagship/Incubator Management UTM City Campus, CoEs, BIP Branch Office for Tech Comm UM UiTM MMU UPM UKM University Incubators-MSC/TDF KULIM Hi-Tech USM UUM Northern Corridor UTM UTM-Techno-Park Industry Center New Proposed KUTKM,Melaka KUITHO, Batu Pahat, Johor MSC boundary PETALING JAYA KLCC KLIA AIRPORT CITY Technology Park PUTRAJAYA KL Tower CYBERJAYA

RESEARCH COLLABORATIONS Recipients of MGS Name of Companies I-Power Technologies Sdn Bhd Multimedia Prospect Sdn Bhd iNavigate 3ntity MSC Trustgate I-Systems Group Sdn Bhd Inter nexus Protocol Chronos Airstair PUC Founder Pintar Media Ingenuity Machinery Performance Ambersoft Name of Universities MMU, UM USM USM UTM UKM USM UPM MMU UTM Peking University UKM UKM UTM UKM Source: MDC

Name of Companies

I-Power Technologies Sdn Bhd

Multimedia Prospect Sdn Bhd

iNavigate

3ntity

MSC Trustgate

I-Systems Group Sdn Bhd

Inter nexus Protocol

Chronos

Airstair

PUC Founder

Pintar Media

Ingenuity

Machinery Performance

Ambersoft

Name of Universities

MMU, UM

USM

USM

UTM

UKM

USM

UPM

MMU

UTM

Peking University

UKM

UKM

UTM

UKM

University-Cradle Program (U-CIP) under MAVCAP Allocation of RM 100 million Grant of RM 50 K for Pre-Seed Funding towards Idea Bank From research idea to product development to proof of concept 1 st Beta Institutions: UTM, MMU, APIT, LIMKOKWING Other universities in the process…

Allocation of RM 100 million

Grant of RM 50 K for Pre-Seed Funding towards Idea Bank

From research idea to product development to proof of concept

1 st Beta Institutions: UTM, MMU, APIT, LIMKOKWING

Other universities in the process…

Current Focus Areas in ICT of University R&D Projects Artificial Intelligence/Neural Network : Facial/Pattern Recognition/Image Processing Robotics Photonics Wireless Communication and Broadband Antenna RFID Open Source Internet Protocol (IPV6) Bio-informatics and Tele-Medicine Database Management IT Security; Firewall, authentication, encryption, decryption Financial and Management tool; ERP/CRM IC Design and prototype development Microelectronics and Digital Signal Processing Visualisation Multi-Media Education Software Web-Based learning software Specialised engineering /industrial design software (Life-cycle cost, info-forecasting, waste management, process and energy management)

Artificial Intelligence/Neural Network : Facial/Pattern Recognition/Image Processing

Robotics

Photonics

Wireless Communication and Broadband Antenna

RFID

Open Source

Internet Protocol (IPV6)

Bio-informatics and Tele-Medicine

Database Management

IT Security; Firewall, authentication, encryption, decryption

Financial and Management tool; ERP/CRM

IC Design and prototype development

Microelectronics and Digital Signal Processing

Visualisation Multi-Media Education Software

Web-Based learning software

Specialised engineering /industrial design software (Life-cycle cost, info-forecasting, waste management, process and energy management)

Indicators for Universities’ Achievement No. Invention Disclosures: No. Patents Filed: No. of IP granted: No. of National Awards: International Awards: No. Number of Projects Commercialised: Amount of Revenue received by University from Technology Licensing: No. of projects prioritised listed for commercialisation: No.of prioritised ICT projects : (TDF/MDC & U-CIP/MAVCAP program): Number of anticipated projects commercialised Licensing:JV: Start-ups:Spin-outs:Tech Incubators: Amount of Research Grants/contract Research received from Industry: MoU & MoA (Consultancy, Testing Services and Research Contract) Number of Researchers (Professors,PhDs, MScs.) Number of Research Assistants Growth/increase of Scientists and Technical Personnel State of The-Art Facilities Sponsored/Shared facilities

No. Invention Disclosures:

No. Patents Filed: No. of IP granted:

No. of National Awards:

International Awards: No.

Number of Projects Commercialised:

Amount of Revenue received by University from Technology Licensing:

No. of projects prioritised listed for commercialisation:

No.of prioritised ICT projects : (TDF/MDC & U-CIP/MAVCAP program):

Number of anticipated projects commercialised

Licensing:JV: Start-ups:Spin-outs:Tech Incubators:

Amount of Research Grants/contract Research received from Industry:

MoU & MoA (Consultancy, Testing Services and Research Contract)

Number of Researchers (Professors,PhDs, MScs.)

Number of Research Assistants

Growth/increase of Scientists and Technical Personnel

State of The-Art Facilities

Sponsored/Shared facilities

ICT Projects Management (UTM Case) 1. Research Management Centre 2. Centres of Excellence and Faculties 3. Bureau of Innovation and Consultancy 4. R&D Focus Group: Aerospace, IT and Telecommunication Aerospace: GIS, GPS, Remote Sensing Information Technology: Bio-info & Software Engineering, Computing System,IS and K Management, Security, IM Pro Telecommunication: Wireless Communication, Switching and Optics

1. Research Management Centre

2. Centres of Excellence and Faculties

3. Bureau of Innovation and Consultancy

4. R&D Focus Group: Aerospace, IT and Telecommunication

Aerospace: GIS, GPS, Remote Sensing

Information Technology: Bio-info & Software Engineering, Computing System,IS and K Management, Security, IM Pro

Telecommunication: Wireless Communication, Switching and Optics

State-of-the-art Facilities and Niche Programs Computer facilities and network Infra-structure Computer Laboratories Super-Computers, Servers, PCs, Training Labs; CAD/CAMS R&D Equipment Training ; Post-Grad Programs; (MSc & PhD, by Coursework and by Research: Software Engineering, IT Entrepreneurship, Professional Courses NUDP-Technopreneurship Development MSC Technology Incubator Management Program Undergraduate course in Entrepreneurship Alumni & Students Entrepreneur Clubs Library (ISO and E-Library)

Computer facilities and network Infra-structure

Computer Laboratories

Super-Computers, Servers, PCs, Training Labs; CAD/CAMS

R&D Equipment

Training ; Post-Grad Programs; (MSc & PhD, by Coursework and by Research: Software Engineering, IT Entrepreneurship, Professional Courses

NUDP-Technopreneurship Development

MSC Technology Incubator Management Program

Undergraduate course in Entrepreneurship

Alumni & Students Entrepreneur Clubs

Library (ISO and E-Library)

UTM ICT Project 1 WIDEBAND SUSPENDED MICROSTRIP ANTENNA Assoc. Prof. Dr. Ir. Wan Khairuddin Bin Wan Ali wankhai @fkm.utm.my An antenna using square microchip patch antenna with suspended parasitic element that can give broader bandwidth in the order of 6 to 10 times that of a normal antenna Frequency bandwidth of between 4.72 GHz to 6.02 GHz. A 24.21% bandwidth against a 2% - 4% narrow bandwidth with normal antenna. Applications include Satellite and Mobile Communication. Radio Astronomy. Aeronautical radio-navigation, satellite services, satellite earth exploration, Radiolocation, 3G multi-point indoor application. Marine Radio-navigation and Industrial, Scientific and Medical (ISM) spectrum. Award: 2nd Prize,INATEX, UTM 2002/2003 1 st UTM recipient of CIP (MAVCAP) SHOWCASE- EXHIBITION

An antenna using square microchip patch antenna with suspended parasitic element that can give broader bandwidth in the order of 6 to 10 times that of a normal antenna

Frequency bandwidth of between 4.72 GHz to 6.02 GHz. A 24.21% bandwidth against a 2% - 4% narrow bandwidth with normal antenna.

Applications include Satellite and Mobile Communication. Radio Astronomy. Aeronautical radio-navigation, satellite services, satellite earth exploration, Radiolocation, 3G multi-point indoor application. Marine Radio-navigation and Industrial, Scientific and Medical (ISM) spectrum.

ICT Project 2: FLAT ANTENNA FOR POINT-TO-POINT MICROWAVE LINK Prof. Dr. Tharek Abdul Rahman [email_address] www.fke.utm.my/wcc Award Gold medal, INPEX 2004, Pittsburg, United States Application: Wireless Local Area Network (WLAN), 5.4 -6 GHz

TRIAL AT KOLEJ PERDANA, UTM Access Point Mobile Stations Switch Indoor Unit Backhaul Indoor Unit

ICT Project 3: ADVANCED CYTOGRAPHIC PROCESSOR IC CHIP PROTOTYPE FOR NEXT-GENERATION SMART CARDS AND SECURITY DEVICES Prof. Dr. Mohamed Khalil Hj Mohd Hani [email_address] The IC prototype is an advanced cryptographic processor, designed for improving security and performance for elliptive curve public-key cryptographic (ECC) operations, that are essential in smart card Public Key Infrastructure (PKI) Digital Signature and advanced security requirements. It is prototyped in a single FPGA IC chip. Application: Wireless communication, electronic government, transportation and health/telemedicine systems. Award Silver medal, IENA 2004, Germany

ICT Project 4: MEMS FIBER ALIGNMENT SYSTEM (PROTOTYPE) Prof. Dr. Abu Bakar Mohammad [email_address] surface micromachined MEMS. Specification: For SMF diameter 7-9µm, Operating voltage 0-20V, Actuation range 100µm Award Silver medal, IENA 2004, Germany Advantages: Efficient optical signal coupling, Eliminate conventional off chip alignment submount, Integrated on chip alingment solution, Simple packaging and assembly work Reducing production time while maximizing yield for optical MEMS device Application : Active alignment of fiber with up-down control, Passive alignment of fiber,On chip integrated alignment for optical device packaging (i.e. switch, router), Field test of fiber communication system, Laboratory optical device characterization and measurement & Photonic components manufacturing equipment and automation

Advantages:

Efficient optical signal coupling,

Eliminate conventional off chip alignment submount,

Integrated on chip alingment solution,

Simple packaging and assembly work

Reducing production time while maximizing yield for optical MEMS device

Application :

Active alignment of fiber with up-down control, Passive alignment of fiber,On chip

integrated alignment for optical device packaging (i.e. switch, router),

Field test of fiber communication system, Laboratory optical device characterization

and measurement & Photonic components manufacturing equipment and automation

Waste Water Treatment Plant design (WASDA) Design of Storm Filter, Hybrid membrane reactors Prof. Dr. Zaini Ujang [email_address] Other Technologies for Commercialisation Prof. Dr. Marzuki Khalid [email_address] Fuzzy Logic/Artificial Intelligence Visual/Facial Recognition and Licence plate CAIRO/AISB WASDA Licensed to DOE KAQ 60 Intelligent Solutions by VisionPlate Computer Database

Final Remarks Having a local ICT research & production capacity would enable rapid take-up & deployment of ICTs across the economy. Important to realise that ICT production & trade play a significant role in driving employment & productivity growth. Need to create an environment that is globally competitive through world-class R&D in ICT sector. Develop effective government-university-industry advisory group. To promote commercialisation, there is a need to make university R&D more visible to private sector and encourage IP guidelines

Having a local ICT research & production capacity would enable rapid take-up & deployment of ICTs across the economy.

Important to realise that ICT production & trade play a significant role in driving employment & productivity growth.

Need to create an environment that is globally competitive through world-class R&D in ICT sector.

Develop effective government-university-industry advisory group.

To promote commercialisation, there is a need to make university R&D more visible to private sector and encourage IP guidelines

Thank You