SINO-EUROPE TECHNOLOGY TRANSFER CENTER
(SETTC) BUSINESS PLAN (DRAFT)
(Revised on October 1, 2001)
CONTENTS
Chapter I: Introduction
Chapter II: Mission and Objectives
Chapter III: Business Model
Chapter VI: Operation
Chapter V: Organization
Chapter VI: Products, Services and Activities
Chapter VII: Feasibility Analysis
Chapter I: Introduction
The 21st century sees a knowledge-based world economy. Under the framework of this economy, technological innovation triggers the force of driving ahead whereas market determines the direction of technology development and diffusion. With the speeding global economic integration, it has been widely recognized that “to survive in the future a firm must be able to transfer technology to other countries better than the competition.” (R.T. Keller and P.R. China)
As a matter of fact, international technology transfer (TT) has long been one of the most dynamic commercial activities across the world and has been playing an increasingly active role in improving global technical progress and international economic relations. Particularly, it has been deemed of extraordinary importance when witnessing the booming mutual technical trade between Greater China (including China mainland, Taiwan, Hong Kong and Macao SARs), the world’s largest emerging technology market, and pan-Europe, based upon the European Union (EU) which embraces a most efficiently integrated supranational common market in the world. Owing to different environmental and developmental reasons, the uneven technological advances in these two areas have long nurtured the very basis for their bilateral technological cooperation and integration. However, despite the apparent increase of Sino-Europe mutual technical trade in the past decade, we still have at times found the proven inefficiency of actual transactions and frequent waste of relevant commercial and governmental resources due to the existing gap of political, economical and historical traditions and notions between the West and the East. At the same time, China’s successful bid for the 2008 Olympic Games and upcoming accession to the World Trade Organization have foreseen a huge potential technology market for the rest of the world and thus we have found many enough grounds to believe that the technology transfer between China and Europe will multiply by leaps and bounds. Therefore, the climate has been calling for the contentious need of a well-organized and internationally-oriented platform providing an efficient and effective channel to serve foreign technology transfer to China and vice versa.
Just in response to such circumstances, Sino-Europe Technology Transfer Center (SETTC), jointly initiated by Shanghai Pudong Productivity Center (SPPC), West-Holland Foreign Investment Agency (WFIA), Ernst & Young (Netherlands) Chinese Desk and Taiwan Industrial Technology Research Institute (ITRI) European Office, would commit itself to promoting Sino-Europe technology transfer transactions by establishing an international platform of information and services for all aspects of technology transfer between Greater China and pan-Europe.
Chapter II: Mission and Objectives
SETTC is a non-profit organization targeted to promote technical and commercial cooperation relationship between Greater China and pan-Europe by offering comprehensive information and services to encourage and facilitate their mutual knowledge exchange in the field of international technology transfer.
· To help improve international relations in economic and technological cooperation between Greater China and pan-Europe;
· To help enhance the level of scientific and technological development in China and Europe;
· To improve the mutual understanding between Greater China and pan-Europe through active exchange of ideas and information;
· To promote Sino-Europe mutual foreign direct investment (FDI) in the field of science and technology (S&T) industry, especially through the establishment of high-tech joint ventures (JV);
· To assist both Chinese and European enterprises, particularly small and medium-sized enterprises (SMEs), in improving their business efficiency and maximizing their profits in the actual transactions of Sino-Europe technology transfer through tailor-made products and services;
· To assist TT business managers, officials and professionals in enhancing their techniques and knowledge in relation to Sino-Europe technology transfer through the conduct of special training programs;
Chapter III: Business Model
SETTC seeks to fulfill its mission and objectives by forming bridges among technology demanders and suppliers, R&D, national industries (in particular SMEs), government departments, policy makers, financial institutions, professional services, business associations, investors, individuals, etc. With the establishment of a cross-border TT community, SETTC will operate its business to benefit its members and clients with possible most valuable information, resources and network:
· Information
q To provide both Chinese and European members and clients with update technology-related news and investment information in the form of a comprehensive information package encompassing website, newsletter and databases, etc.;
q To analyze and introduce appropriate European technologies into China and to present the specific technology needs of Chinese companies especially SMEs to European community, and vice versa;
q To provide Chinese SMEs with possibility to cooperate with high level European R&D institutions and broad access to sophisticated European technologies, and vice versa;
q To provide European technology suppliers with the widest and fastest access to optimal business opportunities and partners in China, and vice versa;
· Resources
q To provide both Chinese and European members and clients with sound professional service package covering commercial, legal, financial, technical, consultation and translation, etc.;
q To provide both Chinese and European members and clients with unique analysis tools and strong R&D support; and to study and conclude Sino-Europe industrial development and technological advances in the forms of reports, papers, articles, statistics, etc.;
q To provide both Chinese and European members and clients with tailor-made technology transfer training programs, educational materials, etc.;
q To assist both Chinese and European members and clients in taking full advantage of relevant governmental and social resources, e.g. grants, subsidies, etc.
· Network
q To allow both Chinese and European members and clients to benefit from the extensive network of SETTC across Greater China and pan-Europe;
q To welcome both Chinese and European members and clients to join and expand the network of SETTC.
More specifically, SETTC’s business model will operate on following emphases:
· Introducing and importing complete sets of equipment
The international technology transfers between China and the outside world will witness a lot of complete sets of equipment importing including the import of digital equipments involved in industrial automation. Therefore, with these opportunities, SETTC will take full advantages of its service platform to take part in importing complete sets of equipment for Chinese demanders during technology transfer. For example, during technology transfer, SETTC, may search and pick appropriate supplies in Europe for Chinese enterprises according to their needs and requests, and manage to conclude a deal for both sides.
· Attracting and introducing investors and capital
SETTC will, when transferring technologies, be associated with many companies, enterprises and venture investors in both China and Europe to involve in investment activities, including direct investment, joint investment and venture investment etc, like Chinese companies setting up agencies, branch companies in Europe or vice versa, and so on.
· Intellectual importation
SETTC will use as much of its relations to introduce foreign intellectual and personnel resources to China by inviting prominent foreign experts, scholars and students studying abroad for Chinese enterprises, meanwhile, offering training and opportunities abroad for outstanding Chinese.
· Cooperate with trade investment associations
There are many trade investment associations in Europe. On average, these associations are only interested in related tradition industries, and its way of investment varied deeply from that of the usual venture investment. SETTC will improve this by encouraging domestic trade associations, companies and factories of the same trade to effectively exchange with these associations.
· Training
(See infra chapter “Products, Services and Activities”)
Chapter IV: Operation
SETTC will construct a coherently integrated international TT community by providing membership and assured services, making association with potential partners and receiving sponsorship and supports from appropriate parties in commercial and governmental sectors.
Membership
SETTC’s membership is primarily provided to corporate parties including technology companies (especially SMEs), R&D institutions, industrial associations, relevant government departments, commercial agencies, professional firms or associations, financial organizations, and other relevant (legal) entities. Under special circumstances, certain individuals such as reputed independent innovators, scientists, engineers, business managers, lawyers, banker, and other TT-related professionals are eligible for membership at request and subject to review. Based on regulated grounds, honorable membership may be granted to distinguished parties.
A registered SETTC member will enjoy an assured benefit package covering:
· Access to both Chinese and European TT databases
· Free distribution of a monthly TT newsletter
· Free or discounted availability to obtain SETTC special services and relevant materials
· Invitation to the attendance of and free or discounted registration for SETTC events such as TT fairs, training programs, topic meetings, business trips, etc.
· Other information disclosure and services. (Please refer to the following item “Products, Services and Activities”.)
Partnership
SETTC will seek possible association with certain potential partners to secure the possible best efficiency of its operation and most valuable benefit to its members and clients. For example, SPPC has a very huge technology database in China and is seeking for partnership on data sharing with European technology organizations.
Sponsorship
On occasions, SETTC will seek potential financial or material sponsorship from diverse sources to promote some of its activities.
Supports
Moreover, SETTC will continuously seek to receive strong and constant supports primarily from official sectors such as government departments, industrial and commercial association, international organizations, etc.
Revenue Model
SETTC will seek to finance its operation by means of:
· Membership fees*
· Special service fees*
· Grants and subsidies
· Sponsorship
· Sale of supporting software*
· Sale of educational or instructional materials*
· Advertisement fees*
· Other revenues
* amount or price to be decided.
Chapter V: Organization
The organizational structure of SETTC will consist of a Board of Directors, two Regional Committees with several contact points in different countries or areas, and a Secretariat heading several subordinate divisions. (Please refer to a draft organizational chart as provided below)
Board of Directors
Board of Directors is the highest authority within SETTC which leads the general development of SETTC and enjoys the highest power of decision-making. Under SETTC Board of Director there are two regional committees which are responsible for the affairs in China and Europe respectively.
Chinese Committee
The head office of Chinese Committee is located in Shanghai, the biggest city and most important industrial base in China. One of the original founders of SETTC, Shanghai Pudong Productivity Center (SPPC) will house the Committee and take charge of its operation in China mainland.
Besides, the Chinese Committee also has a branch office in Taipei which is associated with Taiwan Industrial Technology Research Institute (ITRI), the top R&D organization in Taiwan, and will take duties on promoting technological exchanges between Europe and Taiwan.
In Hong Kong and Macao, SETTC will proceed to establish its contact point or associate office.
European Committee
The headquarter of European Committee is to be located in the Netherlands which, however, will cover the whole Europe through its extensive network. Currently, a branch office in Berlin, Germany has been established with the support of ITRI European Office. In addition, another contact point in Finland is soon to be opened and SETTC will continue to increase its presence in other European countries.
Secretariat
A secretariat consisting of personnel from both Chinese Committee and European Committee will be responsible for the daily operation of SETTC. To fulfill SETTC’s described administrative function and business strategy, there will also be several practicing divisions under the Secretariat.
A group of External Advisors composed of some associated technical and business professionals will provide SETTC with valuable advices and services covering all aspects of international technology transfer.
An Information Service Division will take charge of SETTC’s overall information disclosure encompassing organization website, TT newsletter, and other information release such as professional reports, academic studies, etc.
A Technical Service Division will be responsible for all technical affairs that SETTC will involve. For example, the assessment of appropriate technologies, the intelligent search of patents or know-how, the analysis of industrial development, and so forth.
A Training Division will be responsible for the organization of Sino-Europe TT training programs including online or on-spot courses, seminars, international workshops or conferences, and publication and distribution of relevant instructional materials, etc.
A Commercialization Division is aimed at offering optimal business solutions particularly to technology SMEs and individual technology developers in order to help them best exploit their technologies and maximize their profits.
A Management Supporting Division will play a complementary role to coordinate SETTC affairs as a whole. For example, the relevant arrangement of professional services such as legal, accounting, financial for its members or clients, the assistance in organizing SETTC events and activities, the miscellaneous office administration, etc.
Note: * To be proposed.
Fig. 1, SETTC Organizational Chart (Draft)
Chapter VI: Products, Services and Activities
SETTC seeks to realize its function by offering following products, services and activities:
TT Databases China
As one of the original founders of SETTC, Shanghai Pudong Productivity Center (SPPC) will make available its independently developed “Orient High-tech Projects Information System” to SETTC members and clients both in Chinese and English. By offering an online software platform based on a powerful database, the System will facilitate venture capitalists, consulting firms, high-tech markets to search high-tech projects and other related information. The system will provide the most comprehensive and updated high-tech projects home and aboard. Chinese projects contains research results of State 863 Program, high-tech projects from Chinese Academy of Science, Technology Transfer Markets, High-tech Industrial Parks, Business Incubators and other sources in China. At present, there are more than 50,000 high-tech projects in 15 different fields in this system. Foreign projects include the latest technology from NASA, NTTC, CTC, NEC and so on. SETTC members and clients will have very convenient options, whether topics, key words, summaries or main body to search for whatever project they need.
In Taiwan, SETTC will seek the availability of ITRI’s TT database. In Hong Kong and Macao we will look for the similar cooperation.
TT Databases Europe
In Europe, SETTC will also explore the possibility of enabling top European TT databases such as European Space Agency (ESA), CORDIS, Syntens, TNO, etc. to its Chinese members and clients.
SETTC will seek to enlarge its system by integrating these Chinese and European TT databases to the possible widest availability.