Industrial operation management of science and technology projects

Author: Cai Zhiwu
Publisher:
Publish Date: 2005-10-01
Features: Industrialization of science and technology projects is a goal pursued by almost all scientists and organizations. From government to the private sector, from universities to enterprises, various specialized institutions assist in industrialization across aspects such as policy, law, funding, product design, and market development. However, there are still relatively few monographs dedicated to industrialization operations. Personally, driven by both interest and professional needs, I have long followed publications on this topic domestically and internationally, but have only encountered 3 to 5 such monographs, including the well-known Harvard Business School's 1997 book, Commercializing New Technologies: Getting from Mind to Market.
This situation itself illustrates the diversity and complexity of the industrialization process, as well as the necessity and difficulty of creating a comprehensive monograph. It requires the author to have in-depth understanding and personal experience in the many fields involved in industrialization, as well as the courage and ability to accept criticism from peers in different fields or with varying experiences. In fact, during my long-term engagement in the industrialization of science and technology projects both domestically and internationally, I have always longed for a monograph that could help me understand many industrialization steps or details I didn’t need to do myself but had to be aware of. I have also often sighed in frustration with colleagues, wishing we had the courage and capability to co-author such a book. Fortunately, Dr. Cai Zhiwu has dared to combine his personal experiences with rational thinking, exploration, and learned case studies to compile this monograph, sharing it with us and benefiting all readers. I believe the publication of such a monograph will have a significant readership market. The National Engineering Research Center for Nanotechnology and Applications, which I currently oversee, primarily focuses on promoting and implementing the industrialization of nanotechnology. The publication of this book undoubtedly holds guiding significance for the construction and development of our center, as well as for all readers.
The book systematically summarizes the industrialization process of science and technology projects in China, particularly in the fields of chemical engineering and new materials. However, the industrialization of certain high-tech projects has its own unique characteristics and may involve necessary processes discussed only sparingly in this book. For example, biomedical projects must undergo costly and time-consuming clinical trials and government approvals between laboratory technology and market products, with each step potentially forming the basis of a monograph or even a series. In contrast, computer software technology may have a relatively simpler industrialization process with fewer technology transfer steps. Thus, no single monograph can cover everything. Dr. Cai’s book essentially addresses the key steps that must be considered or implemented in the industrialization process of science and technology projects from laboratory to market, including core elements: technology, products, market, and funding. Therefore, the book holds great reference value for all individuals and organizations involved in or planning to engage in industrialization.
Of course, the core element of industrializing science and technology projects is the people and teams executing the operations. One might understand everything, but there is simply no time or energy to do everything. The greatest risk or challenge in industrialization is overemphasizing the seemingly limitless capabilities of individuals or technology. Through my own experience in industrializing startups in China and the U.S., I have gained profound insights into this. Twenty years ago, during my graduate studies at East China University of Science and Technology, my personal interest led to the invention of a technology for preparing silica emulsions, which could be used for softening, dustproofing, waterproofing, and wrinkle-resistant treatments of textiles. A textile company in Kunshan, Jiangsu, recognized the potential of this technology, and within less than three months, it achieved an annual production and sales capacity of over 100 tons. After graduating in 1986, I established and led a research institute specializing in the research and industrialization of ultrafine (now referred to as nanoscale) particles and thin films. However, its industrialization efficiency was actually lower than during my graduate studies. The reason was simple: as a graduate student, I knew I couldn’t handle product design or marketing, so I followed the factory’s instructions and focused solely on technical issues. Later, as a professor and leader, my ambitions grew, and I believed I knew enough to do more, including everything from technology and funding to product and market. In reality, however, I kept emphasizing or highlighting my own technical strengths, rather than product and market aspects. Later, while working on industrialization at IBM and NASA research centers in Silicon Valley, as well as at Stanford University, the division and specialization of the industrialization process became even more professional. Everyone contributed their strengths—professors or scientists primarily provided technology, technology transfer and industrialization agencies handled transfers, companies were responsible for product design and market operations, venture capital firms managed funding, and policies and laws encouraged and protected the rights and interests of technology transfer and intellectual property. This formed an efficient system and mechanism. In Silicon Valley, the industrialization process is clearly defined, rights and interests are explicit, the pace is fast, and efficiency is high. Therefore, to ensure an efficient industrialization process, systems and mechanisms are indispensable.
Industrialization itself also involves mechanisms or models. Beyond the popular domestic models of technology transfer and moving from technology to products, our center primarily adopts a "fabless" (no production) industrialization model. This model involves market-oriented technology development and product design on a central platform, followed by outsourcing for production processing (OEM). This model has a short industrialization cycle, low investment, clear rights and interests, and does not involve the complex evaluations of intellectual property and intangible assets, or intricate interactions and constraints associated with establishing joint ventures or new companies. Of course, each model has its specific scope of application. This model may be particularly suitable for enterprises and institutions with brand influence and intellectual property rights, and it seems to have become the main trend in modern technology industrialization. Interesting and thought-provoking examples include Apple Computer’s chips, which were previously outsourced to IBM, while IBM’s personal computers used Intel’s chips. One reason for this is to leverage existing strong manufacturing capabilities to quickly transition new technologies into market products, while focusing on their own areas of expertise.