ITRI-UCB-CHES

8/14/2019 ITRI-UCB-CHES

1/43

Dr. Otto C C Lin, 20071

ITRI: Driver of Technology Progress

of Taiwans Innovation System

Otto C C Lin

*****

China Nansha Technology Enterprises Ltd

Hong Kong University of Science & Technology

25-26 March 2007

U C Berkeley- Center of Studies in Higher Education

Symposium on Crisis of the Publics


2/43


Mission of a University: Sustainability

Scientific Research

- creation of knowledge

Education- dissemination of knowledge

Service to the Society

- creation of wealth- social harmony

- sustainability of development


3/43


Q: On creation of wealth --

Why was commercialization of scientific research inuniversity so difficult ?

Myth

* All it needs is science

* Superman scientist


4/43


ScientificResearch

Product

Commercialization

The Innovation Process: Creating Wealth from Knowledge(O. C. C. Lin, 1998)

Applied Research

Product Development

Process Development

Pilot Production

Technology Diffusion

Developing Industrial Technology

Policy / Planning / RD Funding

Taxation/Legal SystemsInfrastructure

Skilled Manpower

VC Funding / Entrepreneurship

Social Support and Stability

Nurturing Business Environment


5/43


Developing Industrial Technology

National Innovation System: the Players

UNIVERSITY BUSINESSINDUSTRY

INSTITUTE

GOVERNMENT

Nurturing Business Environment


6/43


National Innovation System: Dynamics

ProductCommercialization

UNIVERSITY

GOVERNMENT

ScientificResearch

BUSINESS

INSTITUTE

Technology Development


7/43 Dr. Otto C C Lin, 2007

7

National Innovation System: Dynamics

UNIVERSITY

GOVERNMENT

BUSINESS

INSTITUTE



8

ProductCommercialization

UNIVERSITY

GOVERNMENT

ScientificResearch

BUSINESS

INSTITUTE

Technology DevelopmentNational Innovation System: Dynamics



9

Business

Government

Funding

BasicResearch

AppliedResearch

Product & ProcessDevelopment

PilotProduction

Manufacturing TechnicalServicesFocus

Universities

Industries

Institute

National Innovation System:

The Role of Institute


10/43


Business

Government

Funding

BasicResearch

AppliedResearch


PilotProduction


National Innovation System: Taiwan

AcademiaSinica

Universities

Industries

Science-based Industrial Park(Host for Hi-Tech Companies)

Industrial Technology Research Institute (ITRI)

Micro-ElectronicsOpto-ElectronicsComputer &Communications

MaterialsEnergyChemicalsMachinery

AerospacePollution ControlIndustrial SafetyIndustrial Standards

Industries

Science-based Industrial Park(Host for Hi-Tech Companies)

Mission Oriented RD Institutes


11/43


Business

Government

Funding

BasicResearch

AppliedResearch


PilotProduction


Universities

Industries

ITRI


The Role of Institute-Taiwan ca.1980

Global TechnologySources


12/43


Business

Government

Funding

BasicResearch

AppliedResearch


PilotProduction


ITRI


The Role of Institute

Global Business

Universities


13/43


Taiwan IC Company Family Tree(Ref: Dr. F.C. Tseng, 2002)

1974 :Technology

Transfer

1980 : First IC Co.

UMC Team

3.5m , CMOS

IC Products

RCA ERSO/ITRI

7m , CMOS

(3-inch Fab.)

TSMC

Team

2m , CMOS

6-inch Fab.

Winbond

Team

2m , CMOS

IC Products

1987 : First Foundry

1987 : First IDM

Vanguard

Team

0.5m , CMOS

8-inch Fab.

SRAM/DRAM

Products

1994 :First DRAM

TI-AcerTIDRAM Tech.

IPR1992 :First JV DRAM


14/43


5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2001(e) 2002(f) 2003(f) 2004(f)

IC Testing

IC Package

IC Design

IC Fab

Outlook Taiwan IC Industry

M US$

Source: ITIS/IEK, Mar-2002

23%

23%

36%

31%

15,558

18,056

25,332

34,7212001-2004 CAGR= 31%


15/43


Source: ITIS/IEK, Nov-2001; SIA, Jan-2002

Taiwan IC Outperform WW IC

0

2,000

4,000

6,000

8,000

10,000

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

(e)

2002

(f)

TaiwanICRevenue

Taiwan Product Production Value$M USD


16/43


0

10

20

30

40

50

60

70

80

1995 1996 1997 1998 1999 2000 2001 Year

Taiwans Share of Global revenue

Fabless

Foundry

Source: Economic Intelligence Unit, 2003. NCTU, Taiwan

Percentage


17/43


W orldwide Top Ten IC Foundries by Revenue, 2005(Ref: L. P. Hsu, 2006)

Millions of Dollars

2004Rank

2005Rank Company

2004Revenue

2005Revenue Change (%)

Market Share2005(%)

1 1 TSMC 7,668 8,228 7.3 44.7

2 2 UMC 3,497 2,822 -19.3 15.3

4 3 SMIC 975 1,171 20.1 6.4

3 4Chartered

Semiconductor 1,103 1,132 2.6 6.1

5 5 IBM Microelectronics 850 810 -4.7 4.4

7 6 Magnachip (Hynix) 360 396 10.0 2.1

6 7 Vanguard International 393 353 -10.2 1.9

9 8 Dongbu Electronics 333 347 4.2 1.9

10 9 HHNEC 324 305 -5.7 1.7

13 10 X-Fab 178 204 14.6 1.1

Top 10 Foundries 15,681 15,768 0.6 85.6

Others 3,150 2,653 -15.8 14.4

Total Market 18,831 18,421 -2.2 100


18/43


Notebook PC Consortium

ITRI CCL

CCL

TEAM A

PARTNERS

Project Leaders

Motherboard (Hitran)

Components (King Tel)

EMI / Battery (Wiso)

Mechanical Design (Tek Star)

Software (Cal Roc)

Testing (CCL)

Reliability (CCL)

System Integration (CCL)

Promotion (TEAMA)

Project ManagementThe Team


19/43


Notebook PC Production

15543

19238

22262

14453

11807

8919

51614318

35472824

14661

11073

60884625

3781

2592129186149422

0

2500

5000

7500

10000

12500

15000

17500

20000

22500

25000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Year

SHIPMENT,K

PCS Wor ldw ide

Taiwan

*

Reference: MIC / IDC* Estimated for 2000


20/43


0

50, 000

100, 000

150, 000

200, 000

250, 000

300, 000

350, 000

400, 000

450, 000

1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2

Modems

LCDs

Interfacecards

Portablecomputers

Foundrywafers

Taiwans production of selected electronics

manufactures

Source: Economic Intelligence Unit, 2003, MOEA-ROC

(NT$m)


21/43


Th N i T h l G i IC


22/43


The Narrowing Technology Gap in IC

Manufacturing: TaiwanMarket

Time

1982, 2u

1988, 1.2u

1992, 0.7u

1996, 0.35u Technology Progress


23/43


National Innovation System: Hsin-Chu

TsingHua

University

JiaoTong

University

Science-Based

Industry ParkITRIITRI


24/43


Principles of ITRI Operation 1(Ref: O. C. C. Lin, 2005)

1. Duality:

National RD Institute

Non-profit corporation- Board & Management

2. Positioning in NIS:Technology development (Industrial),

Partnership with University (non-educational, project base)

3. Balanced Revenue Finance (1 to 1)

4. Balanced technology portfolio: A, B, C, D


25/43



5. Project Selection:

Specificity, niche advantage, market orientation, economicfeasibility, industrial participation, pre-competitive

6. Technology Diffusion: multi-faceted

Technology transfer/licensing, industrial consortia,

strategic alliance, partnership, spin-off co, training

7. Technology transfer

Non-exclusive, non-compete, strategic withdrawal,

staff transfer policy8. Industrial Orientation- Management of roles

Co-developer, business partner, licensee,

strategic alliance, service client


26/43



9. Global orientation

Technology source, co-developer, strategic alliance,

service client, example:

RCA, Sun, Philips, TNO, Fraunhoffer, Inteco

TI, Lotus Engg,

10. Employee Orientation: Motivation Based

Problem solver, Career developer, growth partner,mutual respect

11. Measurement of Success:License, New Business/IEB, Patent & IP,

Service, Publication

12. Benefit Cycle


27/43


Benefit Cycle: National R&D

Government

Ministry

Province

$

R&DInstitutions

Industry

Technology Transfer

Business

TaxationEmployment

$$$Taxation

Employment

Loyalty


28/43


ITRI: Technology Output

Item 1983 1986 1989 1992 1995 1998 2000TechnologyTransferred:

# Technologies

# Companies

4

8

20

22

45

62

143

217

280

418

340

510

314

Patents Granted 5 15 59 274 381 560 640

Conferences

/Training# Programs

# Attendees 6,500

405

19,706

643

40,150

880

59,492

957

69,000

998

73,959


29/43


ITRI: Intellectual Property Rights -

Patents Awarded and Inventions

15

548

446

381368

277274

178

7859

3727

0100200300400500600

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Year

Number o f Patents Patents


30/43


The Economic Growth of Taiwan

13,75213,476

13,348

14,721

13,737

12,773

13,35912,872

12,39611,597

10,370

10,852

8,9828,111

7,626

6,3795,298

3,993

3,297

2,823

2,699

1,920

1,301964695

443345260154154

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004

GDP per capita, US$

Year

Sh f T i M f t i E t i 1971 1996 (U it %)


31/43


Shares of Taiwans Manufacturing Enterprises 1971-1996 (Unit: %)

By number of enterprises1971 95.43 3.82 0.751976 95.26 4.10 0.64

1981 95.93 3.54 0.531986 96.03 3.54 0.431991 97.58 2.12 0.301996 98.07 1.67 0.26

By persons engaged

1971 35.62 28.25 36.131976 38.55 30.20 31.251981 41.66 28.80 29.541986 47.86 28.09 24.051991 56.48 21.30 22.221996 57.94 19.21 22.85

By value added

1971 21.59 20.52 57.891976 28.25 27.85 43.911981 30.87 26.40 42.731986 35.01 26.73 38.261991 40.94 21.79 37.281996 41.35 19.63 39.02

Data Source: Industrial & Commercial census, Executive Yuan, Taiwan, ROC, 1954-1996Reference: M-W Hu, Futures 35 (2003) 379-392

Employment size (persons) 1-99 100-499 >500


32/43


0

500

1000

15002000

2500

3000

3500

4000

1980

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Year

Totalamount

invested($M)

0

2

4

6

8

10

12

%o

fT

otalFD

$ invested % of total FDI

Investment of Taiwan Industry in the Chinese Mainland


33/43


Source: Economic Intelligence Unit, 2003; MIC, Taiwan

0102030405060708090

100

D es k top P Cs N otebookPCs

M otherboards Servers Digital s tillcameras

Projec tors Opt ical di skdrives

2001 2002 2003

China-based production as a % of Taiwaneseelectronic firms total production


34/43


China: Emerging Manufacturing Center of the World (2003)

54.1%

49.5%

43.7%

29.6%

27.8%

26.5%

13.4%

11.7%

0% 10% 20% 30% 40% 50% 60%

DVD Player

Desktop PC

Cell Phone

Color TV

DSC

Laptop PC

Motorcycle

A/C

Chi E t f Hi T h P d t (1991 2003)


35/43


0

200

400

600

800

1000

1200

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

High Tech Exports

High Tech Exports

as % total exports

Exports, in USD 100M Exports, as % Total

Exports

China: Exports of Hi-Tech Products (1991 - 2003)

Taiwan Trade with the Chinese Mainland


36/43



0

50

100

150

200

250

300

350

400

450

500

1996 1997 1998 1999 2000 2001 2002 2003 2004

Exports to Mainland

Imports from Mainland

100M USD

T i T d i h h Chi M i l d


37/43



0

5

10

15

20

25

30

1996 1997 1998 1999 2000 2001 2002 2003 2004

Exports to Mainland

Imports from Mainland

% of total


38/43


.

Dell, IBM, HP, Gateway, NEC,

Sony, Fujitsu, Intel Hitachi,

Sharp, Motorola, Nokia,

Siemens, Ericsson, Microsoft,etc.

TSMC, UMC, Acer,TCL, Haier,

Legend, Foxconn

Competitive Strategy of Global Chinese, Inc

Global MarketTaiwan Design

Mainland Manufacture


39/43


National Innovation System: Silicon Valley

UC Berkeley

Stanford

University

SRI

EPRILLNLLLBLAmesVCset al

IC, PC, Internet,Biotech

Industries

UCSF,

SJSU,

Others


40/43


National Innovation System: Boston

MIT

Harvard U

Lincoln Lab

Media Lab

Whitehead Inst.

Mass General H

U-I Consortia

etc

Biotech

IT

Industries


41/43


Concluding Remarks 1

The process of transforming scientific research results tocommercialization requires the concerted efforts of manyinstitutional and individual players

Establish a national innovation system (NIS) to establishclear goals, responsibility and rules for the players

For Developed Economy, university generally plays the role

of innovation leader and driver of technology

For New Developing Economy, technology institutegenerally plays the leadership role

Driver of Technology Progressin National Innovation System


42/43


Driver of Technology Progressin National innovation System

Concluding Remarks 2

For NDE, the process is facilitated by globalization

Globalization is facilitated by good environment for

technology transfer and people mobility

Technology business Incubation in university requires goodbusiness plan, entrepreneurship, and mentorship

University and Institute should forge collaboration toexpedite technology leadership for regional development

Re-educate people for creativity and innovation


43/43

Thank you!

Prof Otto CC Lin

China Nansha Technology Enterprises Ltd

Hong Kong University of Science and Technology

[email protected]

Documents

ITRI-UCB-CHES