Bringing Technology Invention Products to the Market

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Bringing Technology Invention Products to the Market

Bambang S. Pujantiyo

Fakultas Tehnik, Universitas Sebelas Maret Jalan Ir. Sutami 36 A, Kentingan, Jebres, Surakarta 57122

I. Introduction

The Industrial Revolution 4.0, globally marked by the emergence of many technology-based businesses, which turned out to have been able to compete with conventional businesses that had existed before. For example, Bambang explained that South Korea since the 1960s, has built and involved around 24 research institutions in charge of parsing foreign technology (reverse engineering) and licensing to various domestic industries [1]. So that by 2008, all these efforts have been able to produce technology-based industries, and encourage the private sector to help fund their research. This is one of the indicators of South Korea's success in the commercialization of technological inventions, which then has a positive impact on its competitiveness rankings. The IMD World Competitiveness Booklet [2] announced that South Korea's competitiveness has reached 23rd place as in 2020, while Indonesia's competitiveness ranking is ranked 40th, still far below Singapore 's (1), Malaysia (27th), Thailand (29th).

According to the World Economic Forum Report [3], the measurement of competitiveness

ARTICLE INFO A B S T R A C T

Article history:

Accepted Bringing the invention of technology-based research results so that

they can be commercialized, is closely related to the synergy of the triple helix Academician – Businessman – Government (ABG) collaboration. In Indonesia, it has been done a lot, but it has not been able to have a significant impact. The collaboration is the initial activity of the commercialization process of technological inventions. This process is based on the Randal Goldsmith model which consists of 3 stages; investigation – development – commercialization. In this study, the update is at the development stage or validation stage which include, production trial, market tests, and selling tests. After being applied in several research institutions, the results were obtained that the invention passed more significantly compared to before. With these results, it can be concluded and recommended that the proposed process method, can be used nationwide.

Keywords:

Commercialization Invention Technology Market Test Selling Test

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industry practitioners as users. Until now, various collaborations in the context of downstreaming this product have been widely carried out in Indonesia, but have not been able to provide significant results and have not contributed much to the increase in the ranking in national competitiveness.

Therefore, it is urgently needed that the methodology of commercialization of inventions is needed which is expected to provide significant results and can contribute to the improvement of the pillars of technological readiness and the pillars of the level of innovation nationally.

II. Determining Factors in Collaboration

Bringing technology-based invention products to the market, or also called technology commercialization, is a topic that is globally very important in facing the era of the industrial revolution 4.0 which requires product innovation by utilizing digital technology and big data.

Therefore, the involvement from the beginning between the factors of research institutions or academics (A), industry practitioners or business practitioners (B), and government (G) in the form of a triple helix ABG collaboration is very important to pay attention from the beginning.

EJ Ferreira [4], explained that this ABG triple helix collaboration, is very necessary to be carried out from the beginning, and this has been widely used in carrying out joint innovations to solve global economic challenges. Similarly, HenryEtzkowitz & Chunyan Zhou [5], says that the collaboration model is a universal model for the development of a knowledge-based society, through innovation and entrepreneurship. Collaborations like this are important to increase research and innovation activities both in research institutions and in industry practitioners [6]. Similarly, Handoko [7] also strengthened that in creating synergies in the collaboration, the invention ideas produced by academics (A), should not only be intended for scientific publications, but also have a special attraction for business practitioners to collaborate.

It can be said that the harmony of collaboration between ABG factors is a determinant for the commercialization of invention products. Collaborations like this, can be explained as in Figure 1.

In this picture, it can be seen that the alignment relationship between the ABG factor is connected with the gear wheel, which means that alignment can occur when the gear wheel moves one rhythm.

This will be achieved if academics (A) have technological inventions that can be synergized with industry / business practitioners, while the readiness of business practitioners (B) is the readiness to be able to adopt these technological inventions as a core business or support for their business, so as to create good synergies. Meanwhile, the readiness of the government (G) is the readiness to support the collaboration of academics and practitioners, especially in terms of funding and ease policies for the implementation of these collaborative activities.

III. Problems in Collaboration

Siegel [8] define that the commercialization of technology is "moving technology to a profitable position" (technology is developed so that it can be applied to profitable production

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a process that generates profits consisting of the first stage occurs when the resulting technology creates a license, then the second stage occurs when the technology is applied through the production process in the company.

Meanwhile, Randall Goldsmith [10], explained that the process of commercialization of technology consists of 18 stages, but broadly speaking consists of 3 stage; the investigation stage, the development stage (validation), and the commercialization stage.

Based on these matter, in general, the process of product downstreaming can be illustrated as shown in Figure 2. In this picture, it can be seen that the 1st stage is the stage of creating ideas / ideas in the form of inventions. While the 2nd stage is the valley of death stage (value of death), and the 3rd stage is the innovation stage that will be carried out by industry practitioners (B) and marketing. The 2nd step according to the term, is called the most difficult stage to pass, this is largely due to the existence of an ego between academics and practitioners, where academics attach importance to Intellectual Property Rights (IPR) related to academic research, while industry practitioners are more concerned with financial benefits.

Within the framework of the ABG triple helix collaboration, to be able to pass the 2nd stage, it is still very difficult, especially in developing countries such as Indonesia. Bambang SP [1] stated that there are still several obstacles, including:

From the Academician side (A) as a technology producer, among others:

• Excessive self-confidence, reluctant to accept input

• More comfortable concentrating in the field of technology, but not on the commercial side

• Has not been able to articulate the added value and uniqueness of the product From the Businessman side (B) as a technology user practitioner, another:

• Focusing on activities for big profits

• Not having funds for the use of technology

• Has not received much information about inventions from relevant research institutions, From the Government (G) side as a policy maker, among others:

• Lack of funding for research activities, especially funding in the downstream sector

• The weak role of the implementing unit in formulating policies for the downstream

• Downstream process that occurs has not reflected an adequate process

Furthermore, Reza AN [11] also explained that it turns out that there are still many research institutions in Indonesia that have not been able to interpret the importance of commercializing technological inventions. Similarly, Ayu Wulansari [12], who underlined that the problem of commercialization of technology lies in the disharmony of collaboration between these related factors.

From these problems, it can be concluded that until now, each side has weaknesses, so there has not been much collaboration or good integrated synergy between the three factors

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IV. Collaboration and Commercialization Solution Approach

Paying attention to the problems in each of these ABG factors, equalizing perceptions in the spirit of technology-based business development in Indonesia, namely the spirit of technological entrepreneurship, or also known as technopreneurship on all ABG factors is very important. In one of the principles of technopreneurship, it is explained that creating added product value is a very important thing to pay attention to together [13]. The added value of this product is obtained based on the analysis of problems and solutions to consumer needs, and the added value of this product should get special attention from all ABG factors. This special attention according to the Balai Inkubator Teknologi [14], can be achieved by the existence of integrated technology business communication between all factors.

Meanwhile, until now, the role of the Government (G) has been widely realized in the form of several downstream programs for technology products, for example by the Ministry of Research and Technology [15], since 2016 in the form of an incentive grant program for Prospective Technology-Based Novice Entrepreneurs (CPPBT), although the grants provided are still relatively small per business proposal unit but it is enough to provide initiation to prospective entrepreneurs.

And also a program from the Ministry of National Education [16] since 2020, in the form of the Merdeka Belajar Kampus Merdeka (MBKM) program, one of which is the Matching Fund which is intended for academics who will collaborate with industry practitioners. This program can provide considerable grant assistance per unit of business, but because this program is relatively new, so no significant results have been seen.

After the formation of the ABG collaboration, the next process is the commercialization process which can be illustrated as shown in Figure 3. In this picture, it can be explained that the process will consist of 3 stages; the 1st stage of investigation, the result of which is technological invention, then the 2nd stage of validation, and stage-3 of commercialization which is the stage of mass production and marketing oriented towards financial profit. Especially the 2nd stage, namely or testing to be able to find out whether the invention product is feasible and can be in demand by the market both in terms of physical and price, which is a very important stage to be carried out carefully.

This stage of market validation has also been emphasized by Iin Surminah [17], that it is very important to know and understand the market. Pradeep Srivastava [18] also underlined that collaboration between research institutions and industry practitioners is very important, adding that the protection of Intellectual Property Rights (IPR) will also be a joint validation. Then, Morina [19] in her research on the agricultural sector, prioritizes business model validation and collaboration. Tayeb Dehghani [20], also proposed a model of technological commercialization that focuses on collaborative validation whose results can discuss market challenges and production tests. Meanwhile, Yong-Jeong Kim [21], underlined that market validation, technology and funding

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are very important to avoid future failures.

This validation stage can be appropriate as an alternative to the main solution in addressing the gap/valley of death between academia and industry practitioners. Therefore, at this stage it is proposed that validation be carried out, including: business model, production trial, market test (α test), selling test (β test), and management of legal status related to Intellectual Property Rights (IPR) and profit sharing, as well as the contracts needed. Business model validation is an activity that can take the form of improving a business model that is mutually agreed upon and will be carried out jointly, while production trials are joint production trials on the scale of laboratories (small factories) based on prototypes that have been previously produced.

Then, what needs special attention is the market test and price test activities, which are the test of the consumer/market's desire for the product and its price. This is an activity that can take the form of a survey or discussion with potential consumers (experts, distributors, direct users). At this stage, it requires the selection of the right potential consumers to conduct surveys and intensive discussions about the product. At this stage, it is very possible that potential consumers can try to use the product so that they can feel and provide input for improvement. Therefore, it takes time and the selection of the right potential consumers and sufficient time, to be able to guarantee that the product has indeed fulfilled consumer desires both in terms of physique and price.

V. Results of Implementation in Several Institution in Indonesia

The Method of Commercialization of Technology Invention (CTI), according to the report of the Balai Inkubator Teknologi [22], has been implemented in several institutions including the Balai Inkubator Teknologi, Cimahi City Government, Pekalongan City Government, Sebelas Maret University, and other universities from 2003 to 2020. The results as shown in Figure 4, illustrate the incubation tenancy (tenants who are included in the incubation / validation program), and the graduate tenants (tenants who are declared to have passed based on their independence assessment), explained as follows:

• Figure 4a illustrates the number of tenants from 2002 to 2020. Especially tenants from 2003 to 2010 with limited funding (< 100 million per business), there were several have been declared graduates but there are also tenants who have not been able to graduate. During this period, the facilities provided to tenants were workspaces, meeting rooms, entrepreneurship training activities, business plan preparation, as well as promotion and marketing access. At this time, the use of methodology CTI has not yet begun. Then, after an evaluation was carried out in 2019/2020, most tenants are no longer in operation. In the same picture, in 2010 after the CTI methodology was implemented, the number of incubation tenants and the number of graduate tenants seemed to increase sharply. Facilities provided apart from workspaces, meeting rooms, considerable funding (150-250 million), as well as the application of the CTI methodology.

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• Figure 4b illustrate the number of the tenants according to their field of business. It can be explained that tenants graduated through the process with the CTI methodology very varied, including the manufacturing business fields 27%, food (post-harvest) 20%, and ICT 15%, agro- industry 14%, and the rest are the fields of advanced materials, cosmetics, energy, creative, and animal feed businesses of less than 10% each. The tenants are all tenants who use local raw materials.

VI. Conclusions

In this study, bringing technological invention products to market is interpreted to be the same as commercialization of technology-based products. Commercialization of technology-based products is carried out using 3 stages of the Randal Goldsmith model which is strengthened, especially in the 2nd stage (validation) which consists of business model validation, production test, market test, price test, and legal status (CTI). And after being applied in several institutions, the following results were obtained :

• In the process of commercialization of invention products before using the CTI methodology, almost all tenancy was very few who were declared passed, even after a survey was held, there were tenants who were no longer operating.

• In the process of commercialization of invention products using the CTI methodology, the results were obtained that more and more tenants graduated, and the business fields varied based on inventions and raw materials for local natural resources.

• This CTI method can be used by tenants with various business fields, as evidenced by the existence of varied business fields and using local raw materials

Therefore, in this study, the author suggests that the application of the CTI methodology, especially in the validation stage, is something that should be applicable to various types of business fields, so that it can better operate triple helix collaboration.

With the results of this study, although the number of tenants evaluated is still small, the author strongly suggests that the application of the methodology of the commercialization of technological invention products (CTI) can be considered for use in order to participate in improving the pillars of technological readiness in research institutions and the level of innovation in the industry, so that it is hoped that it can contribute to an increase in Indonesia's competitiveness ranking at the global level.

References :

[1] Bambang S. Pujantiyo, Technopreneurship : Strategi Akselarasi Komersialisasi Teknologi Bagi Peneliti dan Perekayasa, Workshop Pusat Teknoprener dan Klaster Industri BPPT, 2017 (Unpublished)

[2] IMD World Competitiveness Booklet 2022, IMDWorld Competitiveness Center, 2022

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[8] R.A. Siegel, et al, 1995 : Accelerating the Commercialization of technology Commercialization through co-operation, Industrial Management & Data Systems, 1995

[9] Parker and Mainelli. 2001 : Great Mistakes in Technology Commercialization

[10] H. Goldsmith, "Model of Commercialization", Arkansas Small Bus. Technol. Develop. Center, 2015, https://www.unomaha.edu/nebraska-business-development-center/technology-

commercialization/goldsmith-technology/index.php

[11] Reza A. Nasution et al, Studi Literatur tentang Komersialisasi Teknoogi di Perguruan Tinggi, Jurnal Manajemen Teknologi, Volume 2, 2009

[12] Ayu Wulansari et al (2017), Problematika Komersialisasi Employyee Invention pada Instansi Pemerintah, Jurnal Law Reform, Volume 13, Nomor 2, 2017

[13] Bambang S. Pujantiyo, Kiat Menjadi Pengusaha Inovatif : Prinsip, Proses, Inovasi & Pengembangan, Tirtamedia Publishing, 2014

[14] Balai Inkubator Teknologi BPPT, Laporan Hasil Kegiatan tahun 2017

[15] Direktorat Jenderal Penguatan Inovasi Kemenristekdikti, Panduan Calon Pengusaha Pemula Berbasis Teknologi dari Perguruan Tinggi, 2019

[16] Direktorat Jenderal Pendidikan Tinggi Kementerian Pendidikan dan Kebudayaan, Panduan Program Matching Fund, 2021

[17] Iin Surminah (2012), Srategi Pemasaran dalam Meningkatkan Komersialisasi Hasil Litbang (Kasus : Balit Palma), Jurnal Pembangunan Manusia Vol.6 No.1 Tahun 2012

[18] Pradeep Srivastava (2012), Technology Commercialization: Indian University Perspective, Journal of Technology Management & Innovation, volume 7 no.4, 2012

[19] Monica Pasaribu (2021), Strategy of Rice Variety Technology Transfer for Supporting the Agricultural Inventions Commercialization, Jurnal Penelitian Pertanian Terapan, Volume 21, 2022

[20] Tayeb Dehghani (2015), Technology commercialization: From generating ideas to creating economic value, nternational Journal of Organizational Leadershipm Volume 4,, 2015

[21] Yong-Jeong Kim (2017), What Causes Technology Commercialization to Succeed or Fail after Transfer from Public Research Organizations, Asian Journal of Innovation and Policy, 2017

[22] Balai Inkubator Teknologi, Laporan Hasil Kegiatan tahun 2020