Thinking about the possibility of industry-academia collaboration with universities in Hong Kong | Regional / Analysis Report --Overseas Business Information --JETRO

Universities in Hong Kong are highly regarded around the world for their high research capabilities. The Hong Kong Special Administrative Region Government (hereinafter referred to as the Hong Kong Government) and universities have enhanced systems and support systems to promote industry-academia collaboration in order to put basic research results to practical use. How can Japanese industry, which has the same Asian culture as Hong Kong and is close to the geographical distance, utilize the potential of Hong Kong universities?

In this paper, we will sort out the fields in which universities in Hong Kong have an advantage based on statistics on patent applications, and introduce the mechanism of technology transfer from universities to industry and support measures. In addition, based on the results of interviews conducted by JETRO with officials from the University of Hong Kong, Hong Kong University of Science and Technology, and the Chinese University of Hong Kong from June to July 2021, we considered the possibilities and issues for collaboration between Hong Kong universities and Japanese companies. do.

A university in Hong Kong that is highly regarded in the world

First, we will refer to some indicators regarding the evaluation of universities in Hong Kong. In the "QS World Rankings 2022" published by Quacquarelli Symonds (QS), a UK university evaluation institution, 5 out of 9 schools in Hong Kong ranked in the top 100. The highest among them was the University of Hong Kong (22nd), which was higher than the University of Tokyo (23rd), which was the highest among Japanese universities. In addition, Hong Kong University of Science and Technology (34th) and Chinese University of Hong Kong (39th) followed. Also, in the "THE Asian University Ranking 2021" published by the British higher education magazine "Times Higher Education (THE)", the three schools mentioned above were ranked in the top ten. In addition, at the world's largest trade fair for inventions, "Geneve International Invention Exhibition," universities such as the Chinese University of Hong Kong, City University of Hong Kong, Hong Kong Inundation University, Hong Kong University, Hong Kong Polytechnic University, and Hong Kong Polytechnic University will be held in 2021. Won a total of 23 gold medals.

Strengths in research fields such as medical fields, biotechnology and organic chemistry

Next, we will sort out the fields of strength from the status of patent applications by universities in Hong Kong. Six universities (Hong Kong University, Hong Kong University of Technology, Hong Kong Chinese University, Hong Kong City University, Hong Kong University of Science and Technology, Hong Kong Immersion) receiving the "University-based Technology Startup Support Scheme (TSSSU)" from the Hong Kong government. Looking at the patents filed by the University of Hong Kong (2011-2020), medical science and bio / organic chemistry accounted for 33.8% in total (see Fig. 1). In addition, measurement / calculation / optics accounted for 14.9%, followed by electrical and electronic systems such as semiconductor devices at 12.6%.

As a research result (successful practical application) in the medical and biotechnology fields, there is a non-invasive prenatal testing method. In 2008, Professor Dennis Lo of the Chinese University of Hong Kong developed it to detect fetal DNA in the plasma of pregnant women and diagnose hereditary diseases such as Down's syndrome. According to the university, the technology is used more than 7 million times each year in 90 countries (South China Morning Post, December 14, 2020). Another recent study is the development of a new coronavirus vaccine (injection-free) by the University of Hong Kong, funded by the Coalition for Epidemic Infectious Diseases (CEPI), an international organization.

A successful example of practical application in electrical and electronic technology is a fibrous lithium-ion battery used in wearable devices. It was developed by a research team led by Professor Zheng Ziying of the Hong Kong Polytechnic University. In addition, the face recognition technology developed by Professor Yu Xiaohui of the Chinese University of Hong Kong at the university's "Multimedia Lab" led to the start-up of Sensetime, an artificial intelligence (AI) unicorn company originating in Hong Kong. In addition, Mr. Wang, a graduate of Hong Kong University of Science and Technology, established DJI by taking advantage of the results of research and development (R & D) when he was enrolled in the university. DJI is now the world's largest consumer drone company. It is also characteristic that these university-launched startups were active in applying for patents from an early stage.

More than 80% of patent applications are filed in China and the United States

About 60% of patent applications from 2011 to 2020 by the six universities receiving TSSSU's financial support scheme are about 60% in China and about a quarter in the United States. Both countries together account for more than 80% of the total (see Fig. 2). There is a big difference from Hong Kong (5.1%), which is in third place. Interviews with university officials pointed out that the reason why applications are concentrated in both countries is that they have a huge market and that they have a linguistic aspect. In other words, the procedure can be done in Chinese or English.

The ratio of applications to Japan was 5th, after the 4th European Patent Office (EPO, composition ratio 3.6%). The composition ratio is only 1.8%. The biggest reason why the number of applications to Japan is much lower than that of China and the United States was that the cost of translating documents such as specifications was high when applying to Japan. However, there were comments that the university would like to actively apply to Japan if the partner company wishes to apply for and acquire rights in Japan as the target market and bears the cost.

The source of research ability is excellent human resources, supporting the acquisition of overseas human resources

The foundation of our high research capabilities is excellent human resources from all over the world. Hong Kong is ranked 14th out of 63 countries / regions in the overall ranking in the "2020 World Human Resources Competitiveness Ranking" by the Swiss Institute for International Management Development (IMD). In particular, in terms of "readiness," which measures the skills and abilities of human resources, it ranked second after Singapore. One of the items that make up the ranking, "Ratio of science (information technology, engineering, mathematics, natural science) graduates," was 40.6%, which was also second.

Hong Kong university graduates and faculty will be the winners of international awards such as the Nobel Prize in Physics, the Turing Awards, and the Fields Medal. Outstanding achievements in fields such as physics, computer science, and mathematics have been commended. For example, Professor Charles Kao, a former president of the Chinese University of Hong Kong, won the Nobel Prize in Physics for his work on fiber optics. In addition, Professor Andrew Yao of the same university won the Turing Award for his contribution to the theory of computation, including cryptography. In addition, Professor Shigeru Oka of the same university won the Fields Medal for his contributions to fields such as differential equations.

The Hong Kong government also attaches great importance to these human resources advantages. We are developing policies to develop human resources for science and technology. For example, the government has proposed a fiscal budget for 2021/202 (April 2021 to March 2022) for a new system to promote science and engineering science of HK $ 2 billion (about 28 billion yen, 1 HK $ = about 14 yen). Announced that it will be introduced. Among them are, for example, making the financial subsidy system for university students of science and technology major to participate in internships of companies in the field of innovation technology permanent, and attracting prominent overseas science and technology researchers and research teams to Hong Kong. Measures were included to support participation in education and research at the university.

Enhanced support system to promote industry-academia collaboration

While universities in Hong Kong have strengths in basic research, they have been said to have problems in applied research and practical application. The Hong Kong government also mentioned in its 2016 policy report that "how to put the research results of the university to practical use is an important issue in the development of innovation in Hong Kong." As a new direction to support the future of Hong Kong, which has developed as a financial and logistics hub, how to utilize the university's high R & D capabilities in industry is emphasized.

The Hong Kong government has implemented concrete support measures to promote its utilization. Under the R & D cost cashback scheme that has been implemented since April 2010, if a company makes a technical tie-up with a university or R & D institution designated by the Hong Kong government and pays the full amount of the research cost, it is possible to receive 40% cashback. is. In January 2019, we started a partnership research program. If a company conducts R & D with a university or R & D institution designated by the Hong Kong government, it will subsidize appropriate funding for the research project (cumulative up to HK $ 30 million per institution). These support measures are targeted at companies established in Hong Kong based on the Company Ordinance (Chapter 622). In other words, even if a Japanese company establishes a local subsidiary in Hong Kong, it will be available in principle.

In addition, each university has a system in place to promote industry-academia collaboration and technology transfer to industry. It is customary to have specialized departments to discover commercializable technologies, manage intellectual property rights, contact companies, and support university-originated technology startup spin-offs (see table). At the University of Hong Kong and Hong Kong University of Science and Technology, a subsidiary wholly owned by the university is in charge of concluding various contracts with companies and managing technical licenses.

Note 1: * mark is a wholly owned subsidiary of the university. Note 2: For the latest information on the technical list, please contact the relevant department of each university directly.Source: Created by JETRO based on the technology transfer office homepage of each university (acquired on August 12, 2021)

Under these circumstances, each university in Hong Kong has accumulated a track record of practical application of research results. For example, in the Hong Kong region, in 2015, the University of Hong Kong developed a system in which AI tracks and "sting operations" counterfeit products sold on SNS in collaboration with Hong Kong Customs. Recently, the heat generation detection system developed by the research team of Hong Kong University of Science and Technology is playing an active part in Hong Kong International Airport, Hong Kong government office, etc. The system incorporates AI, real-time tracking, and big data analysis technologies.

Successful cases of practical application are emerging overseas as well. For example, the ultrasonic diagnostic imaging technology developed at the University of Hong Kong (visualizing blood turbulence and velocity) was introduced in markets such as the United States, China, and Europe in 2015. This is the result of collaboration with a major medical device manufacturer. In addition, the university has developed lightweight steel through joint research with Baosteel Group (Note), a major corporate group in the Chinese steel industry, and General Motors (GM), a major automobile manufacturer in the United States. This product was published in a leading industry magazine in 2013. As a result, it was used by Nissan and Chinese automakers as well as GM. The luminescent fluorescent probe developed by a spin-off company of Hong Kong University of Science and Technology has been applied and put into practical use in stimulus-responsive materials and bioassay. This product is supplied worldwide through an overseas distributor agreement with a US company. In 2017, we are approaching the Japanese market through collaboration with Japanese life science companies. Regarding the collaboration with Japanese companies so far, the person in charge of the university said, "Japanese companies have a higher technical level than SMEs in Hong Kong. Universities have strengths in basic research technology, and cooperation to transfer this to applied technology is It goes smoothly. "

Challenges when collaborating with Japanese companies

On the other hand, in the interviews with university officials, the issues related to alliances with Japanese companies were also mentioned.

First of all, there were few opportunities to interact with Japanese companies. Since the opportunities to introduce university technology to Japanese companies at matching events are limited, existing collaboration cases have relied on individual contact from Japanese companies interested in academic societies, seminars, and research papers. Certainly, university researchers may suggest technology transfer destinations. However, it was pointed out that there are few cases where Japanese companies are introduced through such researcher routes. Behind this is the fact that only a small number of Japanese researchers belong to universities in Hong Kong. This is because such proposals are made by foreign researchers, and in many cases, proposals are made with a company in their home country as a partner.

It was also said that the lack of flexibility and speed of Japanese companies would be an issue in advancing the alliance. Some Japanese companies have the image of strictly adhering to their own rules. In addition, it is said that Japanese companies are slow to make decisions because it is not clear who has the right to make decisions in negotiations. Such an attitude and system may give a closed impression to new opportunities and advancement into fields.

On the other hand, there were positive voices from the people involved in the three universities interviewed, saying, "If there are more opportunities for exchange, cooperation with Japanese companies should progress." All universities welcome exchanges with Japanese companies without exception, and are looking forward to further industry-academia collaboration. There are not many cases of industry-academia collaboration between Hong Kong universities and Japanese companies. However, each university in Hong Kong has continued to create many excellent innovations while actively utilizing the support measures of the Hong Kong government. Opportunities to collaborate with universities with such characteristics will be noteworthy.