SINO-EUROPE TECHNOLOGY
TRANSFER CENTER (SETTC)
BUSINESS BROCHURE (DRAFT)
by Feng Xia, LL.M. on behalf of SETTC
(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;
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”)
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.
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”.)
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.
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.
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.
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 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.
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.
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.
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)
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.
TT Funding
SETTC will assist selected Chinese and European hi-tech enterprises in financing their TT projects by applying for existing governmental grants, funds and subsidies.
For example, the location of SETTC Chinese Office, Shanghai Pudong government annually provides funds up to RMB 10 millions to support foreign companies setting up R&D centers in Pudong. In addition, China Ministry of Science and Technology (MOST) provides RMB 1 billion to support Chinese high-tech startups every year.
In Europe, there are a number of governmental funds at EU level or national level to support international TT projects between Europe and Asia including China, e.g. Asia Facility Program in the Netherlands.
TT Commercialization
SETTC especially commits itself to assisting SMEs in optimizing their business strategies in the process of Sino-Europe technology transfer transactions. To this end, SETTC will seek to provide its members and clients with most valuable advices on commercializing their technologies or technology needs through its abundant resources. On one hand, we will help technology suppliers to best orient their target markets and partners, study optimal transfer models and line in order to maximize their profits. On the other hand, we will offer possible best and most economical match-making solutions to technology demanders.
Analysis Tools
Analysis tools contain patents searching, industry research reports which are constantly used by venture capital companies.
SETTC provides its members and clients with the tool to access all patent databases home and abroad including China, USA, Japan, Canada and European countries.
Supported by Shanghai Pudong Industrial Economics Institute, the industry research report will help our members to understand what’s going on for some certain industries. The research generally focuses on both individual companies and whole industry, offer prediction on the development trend of certain industries.
As one of our important initiatives, SETTC will seek to develop a unique Chinese technology evaluation system according to international standard.
TT Training
Through cooperation with relevant government departments and professional associations, SETTC will offer in-depth TT training programs in the forms of periodic training courses (on-ground or online), international seminars, member topic meetings, translation and publication of educational materials such as books, videos, audio tapes, multimedia, etc. Some envisaged training topics include: China’s Accession to the WTO and Foreign TT to China, Technological Cooperation between European and Chinese SMEs, TT Joint Ventures in China and Europe, Foreign Direct Investment (FDI) through TT, and so forth.
TT Fairs
SETTC will try to create opportunities for Chinese and European technology companies and R&D institutions to broadly cooperate by organizing Sino-Europe TT fairs and exhibitions. A recently proposed initiative is to launch a Sino-Europe hi-tech fair for Beijing 2008 Olympic Games.
SETTC will assist its members and clients in arranging the possible best professional services encompassing legal, financial (banking, accounting, taxation, venture capital), technical fields and professional translation.
Particularly, in the field of intellectual property (IP) protection, SETTC will associate with certain professional (law) firms to facilitate its members and clients. For example, in Shanghai SPPC has a well-developed intellectual property protection center and a patent agency. In the Netherlands, Handing International BV, as a founding member of SETTC, is specialized in Sino-Europe IP practices.
TT Newsletter
In association with China Association of Science and Technology (CAST) and China Science and Technology Information Magazine, SETTC will compose and distribute a free newsletter on a monthly basis trying to deliver update information on SETTC events, Sino-Europe technology news, high-tech trace, TT transactions, studies, investment trend, and so forth. Registered members will receive the latest issues periodically in the form of email or under circumstances by post. Other clients can also subscribe to request for free distribution. All past issues will be available on SETTC website.
SETTC Website
– Venture21st.org
SETTC has launched its bilingual website both in English and Chinese at www.venture21st.org which will make a comprehensive online platform of TT information and service to its members and clients. On this website, average visitors can get to know complete information about SETTC and members will have a friendly and convenient interface to access their guaranteed services including TT databases, TT analysis tools, online TT training courses, etc.
At a next stage, some facility for online TT transactions is to be developed.
International Cooperation
SETTC will not play alone but rather come into dynamic cooperation with as many parties as possible in the fields of technology transfer, R&D cooperation, training, academics, inter-governmental exchanges, etc.