Many universities these days are translating their academic breakthroughs to products and innovations that can be marketed. For example, years of research into understanding a certain phenomena in natural science could lead to a discovery that ought to be patented, and there-after licenced for application in industry. If this discovery is not licenced for use by other companies, researchers often seek to establish their own start-up company with the aim of developing that innovated product.
A university spin-off is ‘‘a new company founded to exploit a piece of intellectual property created in an academic institution’’ (Shane, 2004, p. 4).
In Europe, Asia and North America it is the norm to hear a handful or more companies established per University annualy with the aim of commercializing their research outputs. I wonder, to what extent is the performance of East African universities in establishing such start-up companies that are offshoots of university research? We have our DIT, UDSM, and KIST, how are their research-efforts performing in this respect?
It is a fact that many of our university academics are involved in consultancy activities outside their academic responsibilities in the university. While this is not necessarily a bad thing, I wonder why this vigour is lacking in the establishment of spin-off companies.
What is missing?
I believe it is high-time that we emphasize entrepreneurship skills to our M.Sc or even Bachelor degree students of technology, engineering and science. It would be appropriate if we integrate entrepreneurship courses and/or certificate programs in our universities that are open for non-commerce and non-business concentrators. Perhaps such courses should even be compulsory for engineering, technology and natural science students. Such a move would provide students those necessary tools for polishing their entrepreneurship skills, insights that might come-in handy when they develop research products with a commercial potential in the future.
The university must provide a supporting environment for knowledge transfer to ensure that a productive and profitable company is established. This is essential since for most spin-off companies universities do possess a stake in their holdings, and also an established spin-off company will carry the institution’s brand with it, therefore the university must ensure it is protected. Universities should therefore have local experts on patent laws, business, and technology who would provide the necessary advice and guidance when that potential innovation needs to be transformed for a market – not too late, not too early. It would be helpful if they also have a directory of venture-capital firms both local (if any) and foreign which provide that necessary investment for transforming on-the-bench discoveries to high-end industrial and marketable products.
The benefits of affiliation with a university,
in Xiaogang Peng, University spin-offs: Opportunity or challenge? Nature Materials 5, 923 – 925 (2006)…..university technology incubators often support networking opportunities by bringing in venture-capital investors from outside the area, negotiating with the university and local government, fostering business culture in a local area, and offering legal and daily business assistance.
Generally speaking, university technology incubators are more vital for spin-off companies not located in traditional high-tech areas, and could therefore help to equalize the development level in different regions in an industrialized country. For developing countries, such as China and India, high-tech centres are rare. It may be a reasonable strategy for these countries to build up their high-tech innovation basis through university spin-off companies and technology incubators.
The relationship between a university and a high-tech spin-off company has the potential to result in a win–win situation for both parties, but the university must have appropriate procedures in place to manage a variety of conflict-of-interest issues. Such a procedure is necessary to protect both the university and any faculty members who may be involved with spin-off companies. The benefits received by universities that foster such companies include a dynamic and diverse research environment for faculty and students, additional training opportunities for students, funding from industry, fulfilment of their outreach commitment to the local government and federal funding agencies, and employment opportunities for graduating students from the university.
For the next fiscal year, the government of Tanzania has allocated some 20 million USD for research and development. Most of these funds go to support field-research conducted by our universities. However, there need to be additional financing schemes from the government for provision of grants to start-up companies that sprout from universities. Support from the government and other stakeholders will ensure the necessary development of the local university spin-offs sector and eventually sustain local science and technology.
Some may lamment and say our judicial system is not developed to support such ventures. Well, since 1999 commercial courts have been active in Tanzania and their presence together with an apt legislature will be beneficial in settling business disputes that may arise as spin-off companies become established here and there.
I do understand that the drive for research should not be for commercial interest only – some people perform research just for their passion of increasing human understanding, or for solving inherent social problems. The pressure for commercialization of research output can have negative impact on the maintainance of appropriate ethics of research conduct; for example some corrupt researchers may forge data just so as to make that ‘product-X efficiency plot‘ look statistically significant for an investors meeting. But such issues can be avoided by establishing apt laws, or emphasizing research ethics guidelines and even by the provision of necessary incentives to researchers in universities.
Our universities should put an emphasis on knowledge and technology transfer, with this they will increase revenue, create employment and develop a genuine local science that can even be exported.
COET, UDSM MBB, DIT, VETA, mpo?
What are your opinions on this matter with regards to the East African context? Is it easy to start a company within UDSM for example? What are the challenges?
- For an indepth analysis on this topic see: Academic Entrepreneurship: University spinoffs and wealth creation By Scott Shane
- For more information about entrepreneurship assistance at the University of Dar es Salaam, visit: www.udec.udsm.ac.tz
Ndio mzee! Thank you for bringing this up!
I think that today’s generation of youth have more capabilities to be entrepreneurial, and that is why we are seeing the need for guidance on providing goods and services within higher-learning institutions.
Until only recently, I believe higher-learning institutions were primarily concerned with providing the “know-how”, not the “how”. Today, however, given various reasons finding roots in globalization and consequently in increased competitiveness, higher-learning institutions function as businesses in and of themselves.
As you say though, entrepreneurship education can be good, or bad. But it can definitely have positive externalities if operated wisely.
Mpango wa kutayarisha wahitimu wanaotafuta kazi inabidi tuubadili kwa ule wa wahitimu wanaojiajiri au watakaoajiri wengine.
Sijasoma UDSM, kwahiyo sifahamu kiundani curriculum, mission, au siasa zao kwahiyo ningeomba waliopitia hapo watuelezee changamoto zilizopo ambazo mwanafunzi/muajiriwa atakumbana nazo pindi akitaka kuanzisha kampuni inayohusika na kazi zake za utafiti. Au katika vyuo vingine TZ/Kenya/UG.
Mfano eneo kama la mlimani ni kubwa sana ambalo linaweza ku’accomodate makampuni yatakayozaliwa kutoka UDSM. Itapendeza tukisikia makampuni ya biotech yakianzishwa maeneo yale. Au tuwe na silicon-valley yetu katika mitaa ya mlimani. Vijana wetu watakuwa wafanya field hapo, na wanaomaliza chuo wanaajiriwa hapo.
Again its trend among developed world universities, they know varsities are one of the right place to trap the best, innovative and creative ideas.
Universities have to think ways of sustaining themselves, government coffers has dwindled, why not start companies by using their academic entrepreneurs?
We hope UDSM through UDEC will follow the trend, I believe we have the capable and competent people to do this as well.
Excellent article.
Mzee Joji, nimeipenda sana hii makala. Lakini, ningependa sana kusikia maoni kutoka kwa mtu anayehusika na mambo ya utafiti (hasa sayansi) UDSM na vyuo vingine.
I think entrepreneur courses should be taught at unis; I just don’t see any counter arguments. But, on the other hand, you need some sort of a technological breakthrough or very novel idea to start up a company. At the end of the day you will have to convince the funders to take a risk and invest in your idea (as their sole objective is to make money). That’s the main challenge, me thinks. I know we have the ability and competence to achieve all these, but do we possess the labs, equipment, etc. to support us?
Unfortunately, capitalitsts do need to see some results first before committing to any short or long term projects.
I had a chance to talk to the Deputy Director, Dr. Mariam I. Nchimbi of UDEC. I met her at an event organised by the BiD Network ( http://www.bidnetwork.org/ ) at the headquarters sometime in July, in the Hague. From what she told me, I think UDEC works more as consultants and give short diploma/trainning courses to institutions/firms, etc. I doubt if there is a special entrepreneur course organised by UDEC, each student at UDSM has to take.
Maybe such courses are organised by faculties/departments. The main problem she pointed out abt Small and Medium Size businesseses in Tanzania is that, people dont keep records — balance sheets/ book-keeping. Hence, its difficult to present a case to investors even though you have a promising idea.
Otherwise, UDEC has plans to expand into an institute like IFM and eventually have degree programmes.
However, are there venture-capital firms in Tanzania that a local scientist can go to for seeking an investment?
@ SN, umegusia la muhimu. The major hindrance is our research capability, especially in those high-tech fields. That’s when the financing issue should come up, perhaps even before we think of establishing spin-offs. The issue of setting aside 20 Million USD for R & D for the whole nation is a joke (well, this is another subject). Roll-in more funds, people will perform modern research and provide competitive research output.
Tunahitaji ukuaji wa local research, na hii haitakua kamwe kwa kutegemea fedha kutoka nje ya nchi.
@Bata, Nionavyo shukrani kwa kutupatia mwanga kuhusu UDEC. Binafsi sikufahamu kuwa hiyo centre ipo independently UDSM, nilidhani wanaoshughulikia masuala hayo ni Faculty of Commerce. Ninawapa pongezi kubwa walioanzisha UDEC. Ukipitia ukurasa wao ninaona Uholanzi wanawapa support kubwa tu – Tu/e na TU Delft wanahusika nini? 😀 It is a step in the right direction. Centre kama hizo ni muhimu sana kwani ukiwa mkali katika research sio lazima uwe mjuzi kuhusu masuala ya business planning and strategy.
PS: Singapore was a poor country in 1961 just like the then Tanganyika. See here where they are headed! (Click)
Bata and Joji:
Nashangaa kuwa UDEC hawatoi kozi kubwa kubwa, maana through their website, wanaonekana wanatoa kozi kadhaa tu, mojawapo ambayo naitamani na nilitegemea kuifanya mwakani.
Hebu fuatilia hii link ya MEEM.
http://udec.co.tz/index.php?option=com_content&task=view&id=75&Itemid=96
Na hii ya courses za PG:
http://udec.co.tz/index.php?option=com_content&task=view&id=48&Itemid=62
Thank you for this contribution to the East Afrcan universities. At the National University of Rwanda two companies are created and now functional both supported by the university to increase the academic entrepreneurship. Keep up and go on giving such ideas.This can itself be a good research topic for development.
Kind regards