Technology transfer in Lithuania: Sunrise Valley example [email_address] Saul e t e kio al. 15, 10224 Vilnius, Lietuva/Lithuania Tel. +370 5 250 06 01 Fax. +370 5 250 06 03 http://www.sunrisevalley.lt

Lithuanian innovation context Low level of: investment in R&D intensity business investment in R&D patent applications internet penetration (but highest mobile penetration in the world!) high technology sectors export share in total export eCommerce (except e-banking)

Low level of:

investment in R&D intensity

business investment in R&D

patent applications

internet penetration (but highest mobile penetration in the world!)

high technology sectors export share in total export

eCommerce (except e-banking)

SII of the new EU Member States in 2006 Catching up: Lithuania Latvia Czech Rep. Poland Slovenia Portugal Greece Trailing: Estonia Hungary Slovakia

Catching up:

Lithuania

Latvia

Czech Rep.

Poland

Slovenia

Portugal

Greece

Trailing:

Estonia

Hungary

Slovakia

Source: World Economic Forum www.weforum.org No.9 Singapore – No.5 US – No.6 Japan – No.7 No.2 No.3 No.4 No.1 No.25 No.36 No.40 Surrounded by the Most Competitive Ones: Global Competitiveness Indexes 2006 No.10 No.8 No.9

Main problems Gap between education, science and practical needs of the society Science and business establishments usually think in different terms (basic science vs. competitiveness) Science is engaged more in fundamental than in applied research Lack of institutions, facilitating interactions between science and business systems ↓ Results of scientific research are not compatible with economic demands

Gap between education, science and practical needs of the society

Science and business establishments usually think in different terms (basic science vs. competitiveness)

Science is engaged more in fundamental than in applied research

Lack of institutions, facilitating interactions between science and business systems

↓

Results of scientific research are not compatible with economic demands

Main problems II “ Brain drain” Low level of entrepreneurship Lack of trust among different societal groups and in innovation protection system -> lack of social capital Intellectual property (IP) as a form of social capital does not operate IP is alien as a social institute Low level of scientists in business Undeveloped national systems of innovation protection ↓ Innovation in society is still not perceived as a necessary prerequisite for successful business and economy development

“ Brain drain”

Low level of entrepreneurship

Lack of trust among different societal groups and in innovation protection system -> lack of social capital

Intellectual property (IP) as a form of social capital does not operate

IP is alien as a social institute

Low level of scientists in business

Undeveloped national systems of innovation protection

↓

Innovation in society is still not perceived as a necessary prerequisite for successful business and economy development

Priorities Strong national innovation support systems Science-based incubation, science and technology parks Public-private partnership Technology transfer incentives ↓ Enhancement of social capital National priorities in R&D and clusters Foreign direct investment Incentives for business investment in R&D Large scale international scientific projects Foreign scientific objects ↓ Purposeful R&D politics

Strong national innovation support systems

Science-based incubation, science and technology parks

Public-private partnership

Technology transfer incentives

↓

Enhancement of social capital

National priorities in R&D and clusters

Foreign direct investment

Incentives for business investment in R&D

Large scale international scientific projects

Foreign scientific objects

↓

Purposeful R&D politics

Social capital Social capital : strong connections, social networks of individuals, groups, institutions, etc. represents economic and societal development Embeds norms of reciprocity, tolerance, trustworthiness ↓ Social capital is prerequisite for higher social, scientific and economic achievements

Social capital :

strong connections, social networks of individuals, groups, institutions, etc.

represents economic and societal development

Embeds norms of reciprocity, tolerance, trustworthiness

↓

Social capital is prerequisite for higher social, scientific and economic achievements

Knowledge transfer as social capital Education, science systems and industries impact maturing of social capital Knowledge transfer between these social institutions is important social interaction, part of existing social capital Knowledge commercialization (transfer) is a source of innovations and social, scientific and economic development Knowledge commercialization helps to create social capital, oriented towards demands of global market

Education, science systems and industries impact maturing of social capital

Knowledge transfer between these social institutions is important social interaction, part of existing social capital

Knowledge commercialization (transfer) is a source of innovations and social, scientific and economic development

Knowledge commercialization helps to create social capital, oriented towards demands of global market

Priorities for technology transfer Establishing network between science and business and facilitating partnership Identifying supply and demand of knowledge and technology Representing and marketing universities and scientists Orienting basic science research to more applied research Providing services to business by competence derived from universities / research institutions

Establishing network between science and business and facilitating partnership

Identifying supply and demand of knowledge and technology

Representing and marketing universities and scientists

Orienting basic science research to more applied research

Providing services to business by competence derived from universities / research institutions

Priorities for technology transfer Business support programs -> incubators and science parks not as renting agencies Effective and transparent technology transfer system High-tech and innovation focused science parks International co-operation

Business support programs -> incubators and science parks not as renting agencies

Effective and transparent technology transfer system

High-tech and innovation focused science parks

International co-operation

Sunrise Valley – bringing business and science together

Knowledge economy in Vilniu s Biotech – Paneriai cluster L asers , IT T, electronics, engineering – Sunrise Valley cluster Biotech, IT, medicine – Santari š k ė s /Visoriai cluster New materials, nano tech IT, environemental – North Town technology park

R&D Intensive High-tech Industries in Vilnius Information and telecommunication technologies Optoelectronics (lasers) Semiconductors Biotechnology Electronics & Precision mechanics Nano and micro technologies

Information and telecommunication technologies

Optoelectronics (lasers)

Semiconductors

Biotechnology

Electronics & Precision mechanics

Nano and micro technologies

Sunrise campus The biggest concentration of studies and R&D in Baltic countries Territory of 62 ha reserved for development (including 2,4 ha for business support infrastructure)

The biggest concentration of studies and R&D in Baltic countries

Territory of 62 ha reserved for development (including 2,4 ha for business support infrastructure)

Academic and R&D institutions in Sunrise Valley Vilnius University: The Faculties of Economics, Physics, Communication and Law; Centre of Excellence in Cell Biology and Lasers (CEBIOLA). ; The International Centre of Knowledge Economy and Knowledge Management of Vilnius University ; The Institute of Material Science and Applied Research; The International Business School , Vilnius University Career Centre Faculties of Informatics and Mathematics, Chemistry, Natural sciences (to be transferred) Vilnius Gediminas Technical University : The Faculties of Fundamental Sciences , Environmental, Civil Engineering and Business Management ; Institute of Humanities; Institute of Internet and Intelligent Technologies; International Studies Centre; The Laboratories of Bioinformatics , Parallel Computing , Numerical Modelling , Information Systems; The Faculties of Electronics , Mechanics (to be transferred)

Vilnius University:

The Faculties of Economics, Physics, Communication and Law;

Centre of Excellence in Cell Biology and Lasers (CEBIOLA). ;

The International Centre of Knowledge Economy and Knowledge Management of Vilnius University ;

The Institute of Material Science and Applied Research;

The International Business School , Vilnius University Career Centre

Faculties of Informatics and Mathematics, Chemistry, Natural sciences (to be transferred)

Vilnius Gediminas Technical University :

The Faculties of Fundamental Sciences , Environmental, Civil Engineering and Business Management ;

Institute of Humanities;

Institute of Internet and Intelligent Technologies;

International Studies Centre;

The Laboratories of Bioinformatics , Parallel Computing , Numerical Modelling , Information Systems;

The Faculties of Electronics , Mechanics (to be transferred)

Market assessment Doubts as to spin-off creation capacity within universities However interest in business start-ups amongst students. More effective entrepreneurship development system needed to catalyse potential Steps needed to address obstacles - lack of an IP framework, need for IP sharing arrangements, formal technology transfer mechanisms etc. Positive response from locally based firms – 16/31 firms would consider partially/completely relocating to Sunrise Valley. Strong interest amongst IT and laser companies Opportunities for increased levels of contract research between publicly funded research/ private sector Good inward investment potential. Small but growing no. of FDI inflows in services sector

Doubts as to spin-off creation capacity within universities

However interest in business start-ups amongst students. More effective entrepreneurship development system needed to catalyse potential

Steps needed to address obstacles - lack of an IP framework, need for IP sharing arrangements, formal technology transfer mechanisms etc.

Positive response from locally based firms – 16/31 firms would consider partially/completely relocating to Sunrise Valley. Strong interest amongst IT and laser companies

Opportunities for increased levels of contract research between publicly funded research/ private sector

Good inward investment potential. Small but growing no. of FDI inflows in services sector

Market assessment: sectoral dimension Strong interest amongst IT co’s and laser firms. Several expressed interest in a business relocation / transferring business functions Electronics sector supportive. Investment in R&D critical to survival. Can no longer compete on price but on quality/ innovation Biotechnology firms recognised need to work more closely with the universities to ensure future supply of graduates more closely meets skills requirements. Joint research projects possible Chemicals firms were not interested in relocation but sectoral association saw scope for contracting out R&D, e.g. plastics sector Funding streams available for research in environmental technologies field

Strong interest amongst IT co’s and laser firms. Several expressed interest in a business relocation / transferring business functions

Electronics sector supportive. Investment in R&D critical to survival. Can no longer compete on price but on quality/ innovation

Biotechnology firms recognised need to work more closely with the universities to ensure future supply of graduates more closely meets skills requirements. Joint research projects possible

Chemicals firms were not interested in relocation but sectoral association saw scope for contracting out R&D, e.g. plastics sector

Funding streams available for research in environmental technologies field

Research strengths within publicly funded research Vilnius University and Vilnius Gediminas Technical University have a number of areas of research expertise Strengths in laser technologies, biotechnology, electronics, engineering, medical devices & material characterization Interest amongst private sector in contract research – provided research tailored to more closely meet the needs of business Issues around spin-off creation capacity limitations and absence of an IP framework / technology transfer mechanisms Entrepreneurship development programme in conjunction with Business Schools should improve capacity to create new firms

Vilnius University and Vilnius Gediminas Technical University have a number of areas of research expertise

Strengths in laser technologies, biotechnology, electronics, engineering, medical devices & material characterization

Interest amongst private sector in contract research – provided research tailored to more closely meet the needs of business

Issues around spin-off creation capacity limitations and absence of an IP framework / technology transfer mechanisms

Entrepreneurship development programme in conjunction with Business Schools should improve capacity to create new firms

Gap analysis While STPs and incubators in LT have high occupancy rates, focus has been on renting cheap space rather than on high quality service provision/ networking Existing STPs/ incubators in Vilnius region don’t have close linkages with higher education Need for a high-tech focused science park to attract inward investors Effective technology transfer mechanisms are needed to encourage and promote spin-off creation Increased investment in R&D by companies is needed. Cost base is increasing & new product development to compete on quality critical

While STPs and incubators in LT have high occupancy rates, focus has been on renting cheap space rather than on high quality service provision/ networking

Existing STPs/ incubators in Vilnius region don’t have close linkages with higher education

Need for a high-tech focused science park to attract inward investors

Effective technology transfer mechanisms are needed to encourage and promote spin-off creation

Increased investment in R&D by companies is needed. Cost base is increasing & new product development to compete on quality critical

Advantages for companies Networking – opportunity to be co-located with other companies in the same sector (critical mass, new business opportunities etc.) Research excellence – close proximity of research excellence, joint R&D projects Access to skills – access to students and a strong skills base. Internship & employment opportunities to help solve recruitment shortages High quality service provision – business and innovation support services provided by professional support providers Internationalization – opportunity to tap into European/ international networks that help firms identify new markets, business partners and routes to market Access to EU, Russia, Byelorussia markets

Networking – opportunity to be co-located with other companies in the same sector (critical mass, new business opportunities etc.)

Research excellence – close proximity of research excellence, joint R&D projects

Access to skills – access to students and a strong skills base. Internship & employment opportunities to help solve recruitment shortages

High quality service provision – business and innovation support services provided by professional support providers

Internationalization – opportunity to tap into European/ international networks that help firms identify new markets, business partners and routes to market

Access to EU, Russia, Byelorussia markets

Mission and vision/ strategic aims Sunrise Valley’s mission is to ‘put Lithuania on the map’ as a location for businesses engaged in knowledge-intensive activities. The target will be, by 2015, to create a high technology cluster at Sunrise Valley of 150-200 businesses in ICT, laser technologies, electronics, environmental technologies and biotechnology By 2015, SV should directly employ 3,000 people and 5,000 indirectly. Sunrise Valley will combine start-ups from Vilnius and spin-offs from two universities with existing SMEs and inward investors Strategic aims include: Strengthening interface between higher education and industry Promoting entrepreneurship & tech transfer Leveraging intellectual property within the universities Creating new employment and wealth opportunities in high value added sectors and improving Vilnius’ competitiveness

Sunrise Valley’s mission is to ‘put Lithuania on the map’ as a location for businesses engaged in knowledge-intensive activities.

The target will be, by 2015, to create a high technology cluster at Sunrise Valley of 150-200 businesses in ICT, laser technologies, electronics, environmental technologies and biotechnology

By 2015, SV should directly employ 3,000 people and 5,000 indirectly.

Sunrise Valley will combine start-ups from Vilnius and spin-offs from two universities with existing SMEs and inward investors

Strategic aims include:

Strengthening interface between higher education and industry

Promoting entrepreneurship & tech transfer

Leveraging intellectual property within the universities

Creating new employment and wealth opportunities in high value added sectors and improving Vilnius’ competitiveness

Target groups and support infrastructure Start-up companies and micro-firms under 3 years old – these will be located in the Technology Business Incubator; Existing companies (SMEs) –small firms with less than 50 people located in the and medium-sized companies (up to 250 employees); Foreign direct investors – inward investors are also targeted. Speculative space jointly with private investors and operators will be developed to help attract inward investment. Business Support Infrastructure (Science and technology park, business incubator) Technology transfer, R&D commercialization (Technology transfer and IPR development centre) Entrepreneurship Education (Sunrise entrepreneurship school, enterprise clinics & mentors network, business plan competitions, etc.) Access to Finance (VC, business angels network, guaranties, micro credits, loans)

Start-up companies and micro-firms under 3 years old – these will be located in the Technology Business Incubator;

Existing companies (SMEs) –small firms with less than 50 people located in the and medium-sized companies (up to 250 employees);

Foreign direct investors – inward investors are also targeted. Speculative space jointly with private investors and operators will be developed to help attract inward investment.

Services for business and science SV will serve as a one stop shop facilitating access to high quality services for tenant companies (and other SMEs in the region) Relationships will be developed with both business support providers in the private sector and publicly funded support structures (bus & info centres, LVPA, LIC etc.) SV oversees implementation of 3 business support programmes – entrepreneurship development, risk capital financing and innovation support It will provide basic services in-house (shared services, administrative/ secretarial services, networking events etc.) and contract more specialist aspects of the business support programmes to outside suppliers Sunrise Valley develop and operate Technology transfer centre, Business incubator, Entrepreneurship school

SV will serve as a one stop shop facilitating access to high quality services for tenant companies (and other SMEs in the region)

Relationships will be developed with both business support providers in the private sector and publicly funded support structures (bus & info centres, LVPA, LIC etc.)

SV oversees implementation of 3 business support programmes – entrepreneurship development, risk capital financing and innovation support

It will provide basic services in-house (shared services, administrative/ secretarial services, networking events etc.) and contract more specialist aspects of the business support programmes to outside suppliers

Sunrise Valley develop and operate Technology transfer centre, Business incubator, Entrepreneurship school

Sunrise Valley technology park and business incubator First development phase – 2006-200 8 (territory of 0,6 ha , u p to 14.000 sq m of building space); First building o f 6300 sq m is planned to be built in September 2008

First development phase – 2006-200 8 (territory of 0,6 ha , u p to 14.000 sq m of building space);

First building o f 6300 sq m is planned to be built in September 2008

Sunrise Valley – expansion of STP Second development phase – 2008-2015 Territory of 1,8 ha Up to 40.000 sq m of building space

Second development phase – 2008-2015

Territory of 1,8 ha

Up to 40.000 sq m of building space

Ongoing projects in 2006-2008 Sunrise Entrepreneurship School Science and technology park (STP) Service to be provided: Lectures and seminars for universities’ students and researchers ( including course on IPR management! ) Entrepreneurship clinic and lab oratory (network of practical teachings in companies, internships, methodological cabinet ) Creation of business plan (practical and theoretical help for starting business, mentor’s support) Business simulation games, business plan competitions Entrepreneurship courses targeted to SMEs, spin-off and spin-outs Business angel’s investment 6300 sq m including 900 sq m for business incubator Priority given to hi-tech companies (mainly in IT, optical and lasers technology, electronics, engineering) Up to 20% of office space is proposed to business support companies (legal, audit, marketing firms , etc.); Facilities of STP and business incubator will also include a reception desk and shared secretariat services Applications from prospective tenants will be for screened by Advisory Panel comprised of representatives from the Sunrise Valley, R&D, financial institutions and business support agencies

Service to be provided:

Lectures and seminars for universities’ students and researchers ( including course on IPR management! )

Entrepreneurship clinic and lab oratory (network of practical teachings in companies, internships, methodological cabinet )

Creation of business plan (practical and theoretical help for starting business, mentor’s support)

Business simulation games, business plan competitions

Entrepreneurship courses targeted to SMEs, spin-off and spin-outs

Business angel’s investment

6300 sq m including 900 sq m for business incubator

Priority given to hi-tech companies (mainly in IT, optical and lasers technology, electronics, engineering)

Up to 20% of office space is proposed to business support companies (legal, audit, marketing firms , etc.);

Facilities of STP and business incubator will also include a reception desk and shared secretariat services

Applications from prospective tenants will be for screened by Advisory Panel comprised of representatives from the Sunrise Valley, R&D, financial institutions and business support agencies

Technology transfer centre The first stage of TTC project development (October 2006 – August 2008) is focused on networking between science and business sectors and methodological development of technology transfer system, applicable in Lithuania. Main tools: Methodologies: Technology transfer system Innovation audit and technology scouting Innovation and creativity fostering Seminars on technology transfer both for science and business representatives “ Business lunch” with the aim to narrow the gap between science and business Creativity trainings Technology data basis (Vilnius University, Vilnius Gediminas Technical University and Vilnius Research Institutes) Information magazines about technological potential in Vilnius University and Vilnius Gediminas Technical University

The first stage of TTC project development (October 2006 – August 2008) is focused on networking between science and business sectors and methodological development of technology transfer system, applicable in Lithuania.

Main tools:

Methodologies:

Technology transfer system

Innovation audit and technology scouting

Innovation and creativity fostering

Seminars on technology transfer both for science and business representatives

“ Business lunch” with the aim to narrow the gap between science and business

Creativity trainings

Technology data basis (Vilnius University, Vilnius Gediminas Technical University and Vilnius Research Institutes)

Information magazines about technological potential in Vilnius University and Vilnius Gediminas Technical University

Commercial exploitation of IPR The TTC will serve as the main mechanism for delivering innovation support services to Vilnius region’s companies. Services to be provided to companies include: Technology assessment / technology audits of companies Legal advice on patenting and IPR management/ protection Marketing, i.e. generating interest in client technologies Technology marketing and commercialization strategies Technology partner search i.e. facilitating access to networks of strategic partners Non-company focused services that will be provided include: Technology ‘scouting’ to identify scope for exploitation of technologies / innovations/ research within VU/ VGTU Licensing and royalties generation Intelligence monitoring of technological and innovation developments

The TTC will serve as the main mechanism for delivering innovation support services to Vilnius region’s companies.

Services to be provided to companies include:

Technology assessment / technology audits of companies

Legal advice on patenting and IPR management/ protection

Marketing, i.e. generating interest in client technologies

Technology marketing and commercialization strategies

Technology partner search i.e. facilitating access to networks of strategic partners

Non-company focused services that will be provided include:

Technology ‘scouting’ to identify scope for exploitation of technologies / innovations/ research within VU/ VGTU

Licensing and royalties generation

Intelligence monitoring of technological and innovation developments

Welcome to Sunrise Valley! Visit Sunrise Valley at: http://www.sunrisevalley.lt