Consumers’ acceptance is crucial for products developed through R&D
By Abdul Ghani Nasir
BANGI, 15 JUNE, 2010 - Consumers’ acceptance of a product developed through R&D is crucial if the research and development is to be deemed a success.
Thus the technology developed through R&D can only be said to be a success if the product derived from it can be marketed and accepted by consumers, said the Director, Centre of Collaborative Innovation, Universiti Kebangsaan Malaysia, Profesor Dato’ Dr Mohammed Noor Embi.
The product developed from the commercialisation of the R&D findings should be able to generate enough income to exceed its R&D cost and lead to the creation of a new enterprise that can give a positive impact to the economy.
Thus the benchmark for the successful commercialisation of an R&D product is how much support it receives from the consumers, he said in an interview with UKM News Portal.
Prof Dato’ Mohammed Noor said: “It is true that the potential of a product is important when it comes to business planning but the ultimate test is whether it can be sold or not. Its like the taste of a cake that can only be felt when it is eaten.”
UKM Technology Sdn Bhd was set up as a technolgy transfer company with the objective of promoting and implementing the process of commercialisation of technology created from its research findings.
Among various commercialisation initiatives taken through smart cooperation and collaboration is the Graduate Entrepreneurship UKM-MTDC Symbiosis programme jontly organised with Malaysian Technology Development Corporation (MTDC).
The objective of the programme is to choose 10 of the best from the 30 graduates selected to undergo a series of intensive Entreperneuship Training. The 30 participants seleted for the training programme are graduates from various international and local universities including UKM.
The final top 10 will be selected to lead the 10 university start-up companies to be formed to commercialise 10 selected UKM developed technologies.
Apart from the collaboration with MTDC, UKM also works closely with Oxford University through its technology transfer company ISIS Innovation Ltd which has led to the creation of MINDS Technology Sdn Bhd, an ICT based university start-up company wholly owned by UKM.
Two more unversity start-up companies have also been formed namely K-Eco Tourism Sdn Bhd, a company that focuses on developing solutions and services for the eco-tourism industry and MyCRO Sdn Bhd, a Bionexus status company set up as a Contract Research Organsation providing the full range of product development services from characterisation, pre-clinical testing and clinical trials as its core business.
A Joint Venture company namley UKM-eBIZ Sdn Bhd has also been formed as a result of collaboration and smart partnership with an established ICT company based in Hong-Kong.
“In promoting and selling a product, there is no doubt that a customer would definitely ask what is in for me or why should I switch brand?” he said.
He mentioned the possibility of selling innovations to existing entreprenuers instead of manufacturing the products for the end users. One such product could be selling of the ingredients or composition in making Rosel cordial to existing and established factories to add value to their existing end products.
They will then mix the ingredients, package and market the value added Rosel cordial in their own brand to increase brand loyalty and competitive advantages.
The United States, he said, continue to dominate economically because they rely on innovations and technology advancements. “Almost all that is brought forward and marketed are products from research and development findings.”
So Malaysia should not be dependent only on transfer of technology and imported products with foreign factories built locally to manufacture their products here.
With this we only receive marginal returns through direct foreign investment and job creation which will not prolong when the manufacturers close down their factories and shift their production to other countries to take advantage of lower costs.
“Look at South Korea and Taiwan. Why are they advanced? The answer has a lot to do with R&D and innovation. One outcome is a world class product like Samsung TV and electronic appliances including mobile phones,” he said.
He said that Malaysia only have factories to assemble electronic or automative parts. If we don’t put our energy into innovation, research and development it will be difficult for us to become a developed nation.
“We have to remember that even to plant rice we need research if we want to increase its production. There are two ways of doing it, one is by increasing the acreage for the crops and the other is through research by increasing the yield.”
“Our government have no choice; we have to build, strenghten innovation and enhance our R&D, otherwise where would we be when we run out of oil?”
As a way foward, UKM is taking proactive measures and steps to create a Pilot Project so as to provide human capital development in innovation by venturing into a collaboration with Stevens Institutes of Technology, New Jersey, USA to jointly organise a “Capacity Building in Innovation, Technology Transfer and University Start-up” workshop.
The first workshop was held on 7-10th June 2010 with the second due on 26th July - 4th August 2010. It is opened to all the public universities, research institutions, government agencies and entity.
Besides inculcating innovation, the Pilot Project is expected to create new technopreneurs among the researches and spearhead the creation of commercialisation projects via start-up companies and new technology based enterprises. 