Turning research into practical value

A research activity at the Vietnam Academy of Science and Technology.

However, the journey from lab to market is still not an easy one.

Thai Minh Pharmaceutical Joint Stock Company is one of the few private enterprises that have persistently stuck with scientific and technological products for over a decade at the Vietnam Academy of Science and Technology. Products originating from research results transferred by institutes and schools have all developed and succeeded in the market. These products, after being transferred, have a revenue of 200-300 billion VND/year, the VAT paid to the budget alone has reached 20-30 billion VND/year, not to mention corporate income tax and other contributions. Thus, from a research topic with a modest initial investment, if properly commercialized, it can bring great benefits.

However, in the past 5 years, the company has not been able to access any more research projects to transfer. “Not because it does not want to, but because it is stuck with too many procedures, especially valuation,” said Nguyen Quang Thai, Chairman of the Board of Directors of the company. According to current regulations, determining the value of technology for transfer must go through many steps, including intellectual property appraisal, investment cost calculation, economic efficiency assessment, etc.

This has left many scientists confused, while businesses have had difficulty negotiating a suitable price. Fears about responsibility, auditing procedures and legal constraints related to public assets have caused the negotiation process between the researcher and the recipient to drag on, even stall. There have been cases where it has taken years just to complete the valuation.

Associate Professor, Dr. Le Thi Nhi Cong, Institute of Biology, Vietnam Academy of Science and Technology, said that research institutes want to cover costs, businesses want low prices. Therefore, pricing becomes a headache. Researchers price based on time spent, while businesses calculate based on market costs and consumption capacity.

As a result, many negotiations have reached a deadlock. In addition, the administrative process related to technology transfer is complicated and time-consuming. A product that wants to be put on the market must be "approved" at many levels and through many stages, which prolongs the time and affects the opportunity to access the market. The "risk-averse" mentality is also a factor that prevents many scientists from proactively researching businesses to introduce research results. Many people have good products but are worried and confused about which ones to transfer in accordance with legal regulations.

Product transfer or process transfer,... because each option is related to a different legal regulation such as Intellectual Property Law, Budget Law, Public Investment Law... Another problem that makes the technology transfer market still underdeveloped is the lack of transparency and choice. Enterprises do not know who to find to buy products, and scientists do not have many options for partners. Meanwhile, a true technology market must have mechanisms, offers, pricing, competition, and selection.

To overcome the bottlenecks in commercializing research products, according to Mr. Nguyen Quang Thai, it is necessary to first change the mindset about the efficiency of investment in research. It is impossible to require a project that spends 1 billion to immediately collect 1-2 billion upon transfer. The real value lies in the later stages, when the product is released to the market, generating revenue, creating jobs, expanding raw material areas and especially contributing to the budget through taxes. Next, it is necessary to soon form a national science and technology exchange, where research projects are made public, businesses can access, bid, and purchase, like an "intellectual property exchange". Build a flexible and transparent pricing mechanism, avoiding the research unit having to work and worry at the same time, being both the builder and the supervised.

Associate Professor, Dr. Le Thi Nhi Cong said that financial policies need to be redesigned to create real motivation for scientists, increase the rate of copyright, and exempt or reduce personal income tax in the first commercialization. According to Associate Professor, Dr. To Mai Huong, Hanoi University of Science and Technology, it is necessary to strengthen the role of the three-party linkage including the State-school-enterprise. In which, the State plays the role of creating institutions, providing initial financial support for fundamental research, and creating a favorable legal corridor for technology transfer. Enterprises participate from the beginning of the research process, share market needs, help orient topics with high applicability and are ready to invest in product development. Universities and research institutes are places that provide knowledge, human resources, technology, and play the role of research, development and training of staff to serve the transfer.

Ms. Nguyen Dang Tuan Minh, KisStartup Joint Stock Company, emphasized that it is necessary to increase the role and number of intermediary organizations and technology connection enterprises, acting as a "bridge" between scientists and the market, not only helping businesses find suitable technology but also helping scientists understand the needs of practical applications, thereby orienting research according to more specific "orders". Not all scientists are good at business, and not all enterprises understand technology. The formation of units with the capacity to consult, evaluate, and connect technology, especially in universities, will be a necessary solution to narrow the gap between research and the market.

PIETY

Source: https://nhandan.vn/bien-cong-trinh-nghien-cuu-thanh-gia-tri-thuc-tien-post914711.html