A Reflective Study on the Factor Facilitating the Success of the
Cooperation between University-industry
Andik Asmara
1
1
Technological and Vocational Education, College of Humanities and Applied Sciences, National Yunlin University Science
and Technology
Keyword: Cooperation, University-Industry, Success Factor
Abstract. The increasing demands of innovation on products, manufacturing processes, and knowledge force industries
to build effective collaboration with academic institutes. The reciprocal university-Industry collaboration
needs supportive government policies. As a developing country, Indonesia is predicted to be the seventh
biggest economy country in the world. Indonesia needs high-functioned vocational education, which
successfully bridges schools and industries. The previous studies explained that the developing country
with an economy growing needs three significant factors: industries, government, and universities.
Currently, Indonesia needs to adopt further and implement the successful factors of cooperation university-
industry from understanding the experience of developed countries. It is crucial to analyze the perspectives
of industries regarding U-I cooperation, focusing on government policies, financial support, personnel
training, and university policies. This study takes a systematic literature review on the previous experiences
of the United States of American and Japan to understand these critical issues. Also, this study finally
provides some recommendations consisting of (a) Government policies, such as patent regulation, and
license certification, (b) Financial support, such as research funding for small companies, and innovative
equipment substitutes, and collaboration with universities, (c) Personnel training, such as senior engineers
involvement in universities, on-job-training for technology innovation, and student internship in industries,
and (d) University policies, providing industries consultant services, long-termed collaboration for
technology innovation, faculty members' internship in industries, and alumni retraining.
1 INTRODUCTION
The collaboration Universities and Industries
occurred a long time ago. Involved government,
university, society pushed by the rule or them self-
needs. The phenomenon has related innovation and
development activities from the public and private
sector increases (Rantala & Ukko, 2019). Public
resources are now being direct through different
regional-level funding mechanisms to generate
innovation, and economic growth used cooperation.
These described by Laasonen & Kolehmainen
(2017) that the pursuit knowledge-based economy
has become an essential goal for economic
development (Europe cases), and different types of
knowledge-based regional development strategies
have been widely adopted to achieve these goals.
Furthermore, the performance of an innovation
system depends on the intensity and efficiency of the
linkages (Universities, Industries, and Government),
the university tend to play a crucial part in recent
years as the country moves to develop acknowledge-
based economy (Hu & Mathews, 2009). Economy
growth some country depend on innovation
development, involved universities, industries and
government, and other Factor else. (Masarova, 2014)
explained are the economic growth of countries
depends on various factors; they can include
demographic trends, political system, legislation,
culture, trade relations, natural conditions.
Present time industries face on revolution
industries 4.0 and giving impact each line.
Revolution Industry 4.0 will impose new
requirements for the education system and applied
research while having significant impacts on the
labor market, employee skills and knowledge as well
as many social consequences (Habanik, Grencikova,
& Krajco, 2019). The requirement of industries to
establish makes them need about research and
continuous innovation. Currently, an increase in
146
Asmara, A.
A Reflective Study on the Factor Facilitating the Success of the Cooperation between University-industry.
DOI: 10.5220/0010170600002967
In Proceedings of the 4th International Conference of Vocational Higher Education (ICVHE 2019) - Empowering Human Capital Towards Sustainable 4.0 Industry, pages 146-152
ISBN: 978-989-758-530-2; ISSN: 2184-9870
Copyright
c
2021 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
productivity and productive capacity are considered
to be the significant factors of economic growth
(Masarova, 2014). The key factors that determine
productivity include physical capital, human capital,
natural wealth, technological change, and innovation
(Habanik et al., 2019). Innovations are the ones of
should have the industry to keep sustainability
production. The way of addressing these, the
industry can make cooperate with the university in
the research and development innovation field.
One advantage of the cooperation between
University-Industry is the form of strong linkage in
both. The linkages can be described as a partnership,
supporting, and knowledge transfer from industries
to universities. The industry also gains from this
collaboration since it provides access to new
knowledge and technologies necessary for
developing new products, improving product
quality, or designing solutions for production and
service problems (Azman et al., 2019). The
collaboration between academia and industry is
understood as the transactions between universities
and businesses for mutual benefit (Hoc & Trong,
2019). It means cooperation is obtained to benefit
improvement each participant. The industry has a
sustainable for production, and university has a more
reliable link and match.
Each country has a policy about University-
Industry Cooperation to create linked better. The
experience by several universities to conduct a
study, and then published to share with others.
Success experience to be a reference to some
universities to build cooperation with industries.
From both, Universities and Industries have their
perspective about the interest related from this
journal a focus on cooperation experience between
university-industry from the perspective of
industries.
1.1 The Purpose of the Study
This study was conducted to systematically analyze
the significant factors which facilitate the success of
cooperation between university and industry,
focusing the government policies, university policies
and practices, student's preparation, and the
contribution in industries based on the perspective
industry. Each Factor will be analyzed and gaining
with literature reviews from the journal relevant.
Before obtaining the significant Factor of facilitating
the success factor cooperation between university
and industry, we have to know about the based
theory about government policy, university policy,
financial support, and personnel training based on
industry perspectives. Research framework can be
explained as follows,
Figure 1: The research framework.
2 METHODOLOGY
A systematic Literature review is the first approach
for this study. This method of increasing results
being adopts in the social field and science (Sheldon,
Bradshaw, Baldwin, Sinclair, & Burrows, 2001).
This method reduces subjective bias and risk of
overlooking literature in a careful and rigorous
process (Kitagawa, 2009). The essential data would
come from paper journal related used many
synonyms, historical terms, and variants of search
terms. They were using the dominant search engine
Web of Science (WOS) and Scopus to support other
data.
To obtain a literature related used
combination process to the literature review process.
The four-step process to obtain the literature, that is;
1. Step-one: Major data finding used journal
portal of Web of Science (WOS) and
consist of two groups. The first group is
Web of Science with the last five years, and
the second group is with a span of five to
ten years. Besides, if there is a lack of data
not found on WOS, then use the Scopus
Portal as supporting data.
2. Step-two: Eliminate other the journal, if
which one selected approves in the topic
related. Otherwise, if in the related
discussion topic lack, can use another
reference from input else.
3. Step-three: To know how many words or
sentences related to the primary topic,
would be used as a search engine on PDF
viewer and then will be recorded each
percentage.
4. Step-fourth: The higher percentages
explained a journal is related to the primary
JapanCase
USCase
GovernmentPolicies
FinancialSu ppo rt
PersonnelTraining
UniversityPolecies
Recommendation towar dthe
successofUniversity‐Industry
CooperationinIndonesia
IndonesiaCase
IndustriesPerspective
A Reflective Study on the Factor Facilitating the Success of the Cooperation between University-industry
147
topic, and then these a journal will be select
to significant references.
3 RESULTS
The literature review is showed Japanese planning
for the cooperation between universities and
industries starting from a long time ago. Policies for
promoting university and industry collaboration in
the Japanese started in the 1980s. However, most
initiatives were carried out during the 1990s and
after (Pittayasophon & Intarakumnerd, 2017).
Describe by Perkmann & Walsh (2008) the Japanese
had invested considerable effort in University-
Industry Cooperation, such as the Haranuma Plan
propose in 2001. This plan to preparing and promote
the development of enterprises through collaboration
with universities, the industrialization of university
research achievement, and the relationship between
universities and industries. The Japanese
government encouraged the universities to set up
business ventures through the industrial technology
Enhancement Act and Hiranuma Plan star beginning
in 2000-2001, and have target 1000 university-
originated venture in 3 year (Pittayasophon &
Intarakumnerd, 2017). Hiranuma plan is once of the
grand plan in Japanese to increase quality and
quantity in the University-Industry Cooperation.
Before the Japanese launching the hiranuma
plan, the Japanese had established Laws related to
science and technology. This Law is called "The
Basic Science and Technology Law" in 1995,
academia e industry cooperation in Japanese
extended to companies, universities, research,
national governments, and local government
(Tsuruya, Kawashima, Shiozuka, Nakanishi, &
Sugiyama, 2018). Further laws are Japanese
establish relevant with promoting technology
transfer from universities to industries. The both of
Law are "Daigaku-tou Gijutsu Iten Sokushin Ho"
have means the Law for promoting University-
Industry Technology Transfer (enacted in 1998) and
"Sangyo Saisei Tokubetsu Sochi Ho" have meant the
Industrial Revitalization Law (enacted in 1999)
(Kato & Odagiri, 2012; Vick & Robertson, 2018).
Kyoung-Joo (Lee, 2011) and Fumi Kitagawa
(Kitagawa, 2009) more detail explained about
historical of University-Industry Cooperation
constructing in Japanese as following:
Table 1: Historical of UIC constructing in Japanese.
Yea
r
Le
g
al chan
g
es and
p
olicies
1995 The Science and Technolo
gy
Basic Law
1996 The First Science Basic Plan
(
1996-2000
)
1998 Technology Transfer Law (Establishment
of Technolo
gy
Licensin
g
Office
)
1999 The Ja
p
anese version of the Ba
-Dole Act
2000 Law to Stren
g
then Industrial Technolo
gy
2001 The Second Science Basic Plan (2001-
2005
)
2003 Intellectual Property Headquarters
(IPHQs)
2004 National Universit
y
Incor
p
oration Law
2006 The Third Science Basic Plan (2006-
2010)
2008 'Regionally-based innovation
Acceleration Plan'
(
METI
)
The history related to University-Industry
Cooperation in Japanese from beginning in 1995
until now (2019) makes cooperation was settle.
Japanese to be the most important industrial country
in the world and have high-quality products.
Besides, innovation in Japanese has improved every
year, causes collaboration to developing of industrial
technology to engage researchers from university. It
has shown the cooperation between Universities and
Industries function is as well.
The University-Industry have many Factors
to be a success in the cooperation established. Based
on the literature review and perspective industries,
cooperation divided to be four groups. As following
is a group of Succes factor from prospective
industries:
3.1 Government Policies
The development of Japanese University-industry
collaboration since the late 1990s has been
characterized by growing cooperation not only
between universities and industry but between the
two ministries, namely METI (Minister of Economy,
Trade, and Industry) and MEXT (Minister of
Education, Culture, Sports, Science, and
Technology), especially concerning strengthening
intellectual property strategies and local industrial-
cluster strategies (Kitagawa, 2009). After the
cooperation between both of the ministers has
established, the Japanese government focused on
creating new knowledge, followed by transferring
technology, commercializing research outputs, and
creating business ventures (MEXT, 2014). However,
not enough, Innovators should have legality in
innovation and invention activity. Further action of
MEXT is established and introduced a policy to
ICVHE 2019 - The International Conference of Vocational Higher Education (ICVHE) “Empowering Human Capital Towards Sustainable
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148
build Intellectual property headquarters (IPHQs) to
be placed inside significant research universities in
2003 and provided the universities with financial
support for five years (Lee, 2014). IPHQs designed
organizational procedures to apply for patents of
research achievements and implemented a central
management system of IP rights in a university. The
primary function of the IPHQs by MEXT looked
similar to that of the Approved-TLOs by METI.
Still, they have several distinctive aspects of
organizational status and the treatment of IP (Lee,
2011).
As a member of the Paris Convention for the
Protection of Industrial Property concluded in 1883,
the Japanese adopted the treaty's methods for
protecting intellectual property, companies with
technology holders, or participating in the capital
(Tsuruya et al., 2018). Furthermore, the intellectual
property rights issue was promoted due to the
influence of US government policy (Pittayasophon
& Intarakumnerd, 2017). Besides, the Japanese have
"the Japanese Bayh–Dole Act," it is like the US
Bayh–Dole Act, allowed the state not to acquire
patent rights from university inventors researching
with government funds. After establishing this Law,
the number of university patent applications
increased in Japanese after 1999 and, the number
jumped to 3756 during 2004 (Kato & Odagiri, 2012;
Mowery, 2011; Lee, 2011).
Some technology licensing organizations (TLO)
established in 1998 withdrew from the patent
application business and began specializing in
matching researchers with companies (Tsuruya et
al., 2018; Kato & Odagiri, 2012; Lee, 2011; Vick &
Robertson, 2018). Patents are more effective as a
means of appropriating return to R&D in drugs
where innovations are standalone (Fukugawa, 2017).
At the end of the application process, when patents
issue in various countries, over one-third perhaps
over half) of patents issued to Japanese universities
are co-owned by companies the overwhelming
majority of which are large Japanese manufacturers.
Dissatisfaction with university policies preventing
companies from automatically owning (or otherwise
controlling) collaborative inventions was most acute
in the case of narrowly focused (typical)
collaborations (Kneller, Mongeon, Cope, Garner, &
Ternouth, 2014).
3.2 Financial Support
The Japanese government has policies to increasing
and improving university-industry cooperation
through two ministries, which have a role in
regulation about financial support to universities and
Industries. The university system comes under the
jurisdiction of MEXT, while economic and
industrial activities become the responsibility of the
Ministry of Economy, Trade, and Industry (METI).
This has created competition between the two
government agencies in an attempt to gain greater
administrative control over the UI collaboration
policy. In 1998, the METI moved first in introducing
a policy of Approved TLO, which was aimed at
effectively transferring university generated
technologies to industry (Lee, 2014).
The government provides technical
infrastructure, such as laboratories and equipment,
which is also one of the critical modes of
collaboration. Due to government financial support,
the technical infrastructure is very advanced and
reliable to establish cooperation between universities
and industries (Pittayasophon & Intarakumnerd,
2017). The facilities are the one crucial supporting to
build and maintain cooperation with each other.
Universities need supporting financially to build
office and training places, and on the other side,
industries need a researcher involved in developing
innovative technology. Pittayasophon &
Intarakumnerd (2017) describes that Japanese
universities prefer to conduct joint research, where
university researchers and company researchers
work together on equal footing. The Japanese
government focus on developing the small firm,
Fukugawa (2016) explain that technology diffusion
programs to help small local firms enhance
absorptive capacity are of high importance
particularly in the catching-up economies, and in
economies where small firms have a more
significant presence in the business ecosystem.
3.3 Personnel Training
The national universities in both (Japanese-US)
countries have quality graduate students, famous
researchers, and advanced technical infrastructure;
therefore, large firms prefer to work with them
(industry) (Pittayasophon & Intarakumnerd, 2017).
These were achieved a long time ago, starting
beginning from government policy. Furthermore, the
university continuing engage researcher and teacher
to be a participant in the training program in
industries. The government was supporting on the
financial side and then university preparation of
researcher and teacher.
A Reflective Study on the Factor Facilitating the Success of the Cooperation between University-industry
149
3.4 University Policies
One of the earliest policies to encourage UICs was
establishing the UICRC in national universities by
MEXT. Since 1994, large national universities in
urban areas, such as Kyushu University, began to
establish centers for UI collaborations (Lee, 2014).
Since 1996, the Japanese government has formulated
a basic plan for science and technology every five
years, and the current plan is now in itsfth phase
(Tsuruya et al., 2018). The activities of local public
technology centers have an immediate impact on
innovative outputs. The local public technology
centers fostered industrial innovations in the region
through other routes than the promotion of
university-industry joint research (Fukugawa, 2016).
Local public universities in Japanese, on the other
hand, are under the control of the local government.
They aim to provide higher education opportunities
to local people and to serve as intellectual and
cultural centers within the local community
(Pittayasophon & Intarakumnerd, 2017).
Following the declaration of the first Science and
Technology Basic Plan in 1996, the government
took several policy initiatives to deregulate and
encourage UI collaboration. Now professors can join
boards of directors of private companies, and
universities can accept research funds more easily
from industries and accept researchers dispatched
from companies at their laboratories (Kato &
Odagiri, 2012). University provides consultation on
product and process improvement because most
collaborating firms are small local firms that do not
have R&D capabilities and may not know how to
access the universities (Pittayasophon &
Intarakumnerd, 2017). The center coordinators
respond to a partner firm's requests to find university
researchers who can provide technical consultation
and conduct joint research (Lee, 2014). The
University of Tokyo explicitly encourages and takes
advantage of its multidisciplinary knowledge across
faculties or departments when it has joint R&D
projects with the industry. In the case of Tohoku
University, it does not have a specific policy
eliminating boundaries of faculties (Pittayasophon &
Intarakumnerd, 2017).
In the United States to support
commercialization, many universities have
established specialized structures, such as
technology transfer offices (TTOs), science parks
and incubators and created supportive internal rules
and procedures (Jensen & Thursby, 1998; Perkmann
et al., 2013). The United States established
numerous innovative collaboration systems centered
on universities. For example, Silicon Valley
successfully linked academia and industry through
Stanford University and effectively converted
university research and development achievements
into applicable industrial technology. (Chang, 2017).
4 DISCUSSIONS
Indonesia has predicted to be the seven biggest
economy country in the world. This country needs to
improve and build a sustainable economy, with a
continuing economy and technology growing up.
Japanese is part of ASIA, and have similar
characteristic with Indonesia society. Moreover, the
Japanese have a big factory in Indonesia and
dominate the automotive market as a whole.
Indonesia given big impact economy to the Japanese
industry has established victory in this country. It
should easy to implementation of transfer
knowledge from Industries to universities or
established cooperation between Japanese factories
with university.
The four factors, as described in the finding on
literature review, if at duplicate and implement in
the Indonesia system given a significant impact on
universities and industries. Implementation should
consider about society, government-supported, and
local wisdom from Indonesia. The four factors
included government policies, university policies,
financial support, and personnel training that have
the representation of the desires of industries. All
this time, industries have little contribution and
cooperation with universities and the government.
They were only limited to internship places and
worker recruitment as an employee in industries.
The cooperation as established have equal foot each
other had explained by Pittayasophon &
Intarakumnerd (2017), where university researchers
and company researchers on the collaboration has a
principle as work together on equal footing.
The first Factor is government policies;
Indonesia has a source for all the Law, called
UUD45. The whole of the Law which developed
from this source, and have reference to being a
prosperous society. The Japanese government
policies can be implemented in the Indonesia
situation should in line with UUD45. The
government policies that can be implemented to
improve and develop University-Industry
Cooperation are; The Cooperation between two
ministries, that is the Ministry of Research and
Technology and the Ministry of Industry; and
Focused on creating new knowledge, followed by
ICVHE 2019 - The International Conference of Vocational Higher Education (ICVHE) “Empowering Human Capital Towards Sustainable
4.0 Industry”
150
transferring technology, commercializing research
outputs, and creating business ventures. Besides, the
government established Law for protecting
intellectual property and made it easy to create of
patent certificate.
The second Factor is financial support; each
University in Indonesia has a barrier to establish
cooperation between universities and industries; it
caused limited financial support as a government
institution. Even though in the cooperation,
university and industry needed much financial
support to be running success. As following is the
Japanese government supporting of financial in the
University-Industry Cooperation; Provides technical
infrastructure, such as laboratories and equipment, is
also one of the essential modes of collaboration;
Focus on developing the new or small company, and
engaged in developing substituted technology for a
small company.
The third Factor is personnel training; the teacher
and researcher at the university have the competency
to share with the student. However, Indonesia's
teacher and researcher need to continue to improve
competency and knowledge in applying technology
in industries. The Japanese government entered the
program, such as student and teacher internship and
on-job training in industries. It is an influence on
updating student and teacher skills and knowledge.
This line is compacted with student and teacher
conditions in university whole in Indonesia.
The last Factor is university policies; the
universities in Indonesia have the power to creating
policy in the private institution. However, the
government to encourage the university to establish
policies related to increasing cooperation between
the university and industry. Several policies from
Japanese university experiences such as; University
providing industries consultant services for small
industries; and have long-termed collaboration
policies for technology innovation and future
technology. Besides, faculty members' should
involve in the internship program in industries, and
alumni can take a retraining program in industries.
5 CONCLUSIONS
Experience of University-Industry based on
respective Industries recommending to establish
mutualism cooperation for each party. Several
recommendations starting beginning from
Government policies have established patent
regulation supporting both parties, and the
government should provide license certifications
which easy to access and step of the licensing
process. Besides, the government has supported
companies and universities financially, such as
research funding focus on small companies or
startup entrepreneurs. The government should have
the program to substitutes innovative equipment
needed for industries. To supporting innovative
equipment, the government can involve universities
to collaborate on developing the technologies.
Other side, universities have involved senior
engineers in engaging in collaboration with
industries. Also, the university sending students and
teachers to participate in the program of on-job-
training for technology innovation to improve skill
and technology knowledge. Besides, student
engagements in an internship program in industries
to applying and improving skills. To supporting
University-Industry Cooperation, the university
should have several policies in the internal
organization. The form of policies, such as providing
industries consultant services for small industries
and have long-termed collaboration policies for
technology innovation. For faculty members' should
involve in the internship program in industries, and
alumni can take a retraining program in industries.
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