University-Industry Cooperation: Risks, Opportunities and Its Importance for the Chemical Industry

1- Introduction

Looking at the historical process, it is evident that the tasks expected of universities have changed according to the development of societies. The first universities placed emphasis on education, taking on the task of disseminating and transferring knowledge. These institutions, also referred to as first-generation universities, have their best historical example in the University of Bologna, which is considered the beginning of universities in the Western world. Following this period, particularly in Europe, the dominance of the clergy diminished and in the 1800s, universities began to transform. Universities no longer solely undertook the task of disseminating knowledge; they began to produce knowledge and engage in Research and Development (R&D) activities. This resulted in the emergence of second-generation universities. The best example of second-generation universities, operating on the principle that science is for science's sake, is the Berlin Humboldt University. The development of societies, the rapid consumption of knowledge, and this situation gave rise to knowledge-based economies. The vital principle of knowledge-based economies is to ensure the sustainability of knowledge and to continuously present original knowledge to society. For this to be realized, it is necessary to bring together parties with qualified knowledge. However, second-generation universities, due to their authoritarian structures and inability to cooperate with society and other institutions, were forced to change once again. This gave rise to third-generation universities.

Particularly with the discovery and wider use of the internet, the circulation and obsolescence rate of knowledge increased. After World War II, alongside liberal economics, whose foundations were laid, knowledge economy also began to dominate societies.

Knowledge is now becoming obsolete at a dizzy pace. Outdated knowledge reduces our decision-making quality. Therefore, in third-generation universities, the understanding that knowledge should become public property, that is, science should be conducted for society, has been adopted as the foundation. Third-generation universities, rather than allowing knowledge to remain confined within walls of defined boundaries, appear as institutions that convert knowledge into economics and provide social and economic contributions to society. Today, the best examples that can be given of third-generation universities are the Massachusetts Institute of Technology (MIT), Stanford, and Harvard. In today's world, where third-generation universities are shaping societies, University-Industry Cooperation (UIC) is viewed as a key activity. While universities are the primary producers of scientific advancement, industry shapes the dynamics of new technologies and economic growth. However, in this relationship, as with all relationships, there are problematic situations. While universities are the primary actors in scientific developments, industry's expectation is that universities play this role. However, scientific studies conducted in universities are not directly used by industry in either form or timeframe. Moreover, reasons such as the parties not coming together properly or having different expectations emerge as fundamental problems in university-industry cooperation. Despite all these problems, development continues and institutions, organizations, or other components that make them up and cannot keep pace with this development will not be able to sustain their existence. Therefore, university-industry cooperation activities have become very important for all industrial organizations.

2- Funding Mechanisms in University-Industry Cooperation

Funding mechanisms in University-Industry Cooperation activities are generally examined in three parts: state-supported funds (TÜBİTAK, KOSGEB), European-supported funds (COSME, NIRVANA), and contracted R&D projects to be covered by the company. Industrial organizations prefer state-supported funds more in their qualified R&D projects. In particular, there are various and specialized industry support programs prepared by the Technology and Innovation Support Programs Directorate (TEYDEP) of TÜBİTAK. In addition, KOSGEB also provides many R&D supports specific to companies. Apart from these, the Ministry of Science, Industry and Technology also provides various incentives for R&D centers to be established by companies within their own structures. The purpose of state-supported funds is to establish university-industry cooperation activities and to encourage companies to conduct qualified R&D. However, R&D is a long and risky process (Figure 1). The state shares the risks to a certain extent (most of them) through the supports it provides. Technology transfer offices (TTO) have been established to facilitate access to these funds for industrialists and to enable universities to be used more effectively in this process.

Figure 1. Three main stages of R&D

Many universities in our country conduct basic research activities with state funds without any support from industrial organizations. However, adapting basic research activities to industry is a quite difficult and important process that needs to be emphasized. Among these, the number of studies that reach the commercialization stage is quite low. When studies that have completed basic research activities and reached technology development activities are developed with an industrial perspective, risks decrease in this sense. Regardless of how the process works, companies should determine their R&D studies based on the company's needs, not according to fashion. In particular, university-industry cooperations conducted through Technology Transfer Offices (TTO) within universities play important roles in enabling companies to implement the projects they want to undertake faster, with the right people and funds.

3- University-Industry Cooperation in the Chemical Industry

Due to its structure and sectoral sub-branches served, the chemical industry ranks among the sectors where UIC activities should be conducted most intensively. Across Turkey, there are approximately 60 companies with R&D centers in the chemical sector. At first glance, this number can be seen as a high figure. The countries where the chemical sector has the highest number of total patent applications are, due to the concentration in the pharmaceutical field, Switzerland (19.2%), Netherlands (15.8%), United Kingdom (14.7%), and France (14.1%). In our country, regarding the commercialization of R&D studies, the share of patent and utility model applications by domestic individuals and organizations for the chemical sector alone was 3% of applications made. This rate increased to 12% in 2013 in applications specific to the chemical sector. Looking at these data, we can see that R&D studies for our country's chemical industry are not at the desired level. In light of all this information, it is evident that a different perspective needs to be developed on university-industry cooperation for the chemical sector. Every medium and large producer operating in different branches of the chemical sector must first and foremost view R&D as a vital activity. By establishing R&D departments and turning R&D activities into disciplined work within the company and keeping them on record, they will play important roles in producing qualified products. The intellectual cycle of R&D studies needed by companies can be internalized through various stages (Figure 2).

Figure 2. Technology Transfer (Tao, 1999)

Many of the stages of incorporating external ideas or technologies into the company can be carried out more effectively through UIC activities. Here, the most important issue from the company's perspective is to be persistent about UIC and qualified R&D. Industrialists, particularly during the internalization of technology or ideas, should not overlook cooperation with start-up and spin-off companies within technology parks. They can invest in these companies and support the development of their business ideas as mentors. Through a win-win principle-based cooperation with these companies that closely follow technology, companies can pursue more effective R&D activities with less effort.

Conclusion

UIC activities that will take place in the chemical sector in the future, as they do now, will be inevitable for the sector's development and sustainability. Due to the sectors it serves, the chemical industry is in a critical position. To build this sector soundly, it will be inevitable to create innovation-based R&D clusters in the chemical sector encouraged by the state. Today's technology park-like structures should also be considered for the chemical sector. However, this facility, in a way somewhat different from classical technology park logic, should be structured like an institute where companies in the chemical sector can directly contribute and be incentivized in proportion to their contributions. This can primarily be a center where R&D activities are conducted with state incentives by companies or entrepreneurs for the production of products that we currently import in critical areas or export products with high potential and/or specialty chemicals. Regardless of what activities are undertaken for the chemical industry, it should not be forgotten that the future status of the chemical industry will be shaped by the R&D activities it will conduct with universities. Dr. Onur Tolga Okan University-Industry Cooperation Coordinator Karadeniz Technical University Technology Transfer Office