TECHNOLOGY,

DEVELOPMENT
AND
ENTREPRENEURS
HIP
ENGINEERS AND SOCIETY
1 ECV3011
CONTENT

1.1.Trend
TrendOf
OfR&D
R&DExpenditure
ExpenditureWorldWide
WorldWide

2.2.Trend
Trendof
ofPatent
PatentRegistration
RegistrationWorldwide
Worldwide

3.3.Building
BuildingInnovation
InnovationCommunity
Community

4.4.Towards
TowardsEntrepreneurial
EntrepreneurialR&D
R&D

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ROLE OF SCIENTIFIC KNOWLEDGE IN
DEVELOPMENT
 Economists used to consider land, labor and capital as
the only important economic factors
 It is now recognized that scientific knowledge is more
essential for wealth creation of nations today than either
capital or land
 Physical resources like energy and materials are mostly
depleted when utilized
 On the other hand knowledge is inexhaustible

 The more people have access to knowledge the more

knowledge is produced
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RESEARCH AND DEVELOPMENT DEFINITION

 R&D comprise creative and systematic work

undertaken in order to increase the stock of
knowledge—including knowledge of
humankind, culture and society—and to devise
new applications of available knowledge.
[Organisation for Economic Co-operation and
Development (OECD) Frascati Manual 2015]

4
ADVANTAGES AND
CONTRIBUTIONS OF R&D

Reduce the reliance of imported

technology.
Increase competitiveness of the country
Produce more professional personnel
whose are attached to the latest
technology
Improve living standard 5
R&D activities may be aimed at achieving either
specific or general objectives. R&D is always
aimed at new findings, based on original concepts
(and their interpretation) or hypotheses. It is
largely uncertain about its final outcome (or at
least about the quantity of time and resources
needed to achieve it), it is planned for and
budgeted (even when carried out by individuals),
and it is aimed at producing results that could be
either freely transferred or traded in a
marketplace.
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R&D ACTIVITY
 it must satisfy five core criteria:
 novel

 creative

 uncertain

 systematic

 transferable and/or reproducible.

7
TYPE OF R&D
 There are three types of R&D:
 basic research

 applied research

 experimental development.

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BASIC RESEARCH
 Basic research is experimental or theoretical work
undertaken primarily to acquire new knowledge of the
underlying foundations of phenomena and observable
facts, without any particular application or use in view.

9
APPLIED RESEARCH
 Applied research is original investigation undertaken in
order to acquire new knowledge. It is, however, directed
primarily towards a specific, practical aim or objective.

10
DEVELOPMENT
 Development is systematic work, drawing on knowledge
gained from research and practical experience and
producing additional knowledge, which is directed to
producing new products or processes or to improving
existing products or processes. Design and development
of prototypes and processes are also part of this area. 

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THE DIFFERENCE BETWEEN R&D AND
INNOVATION

 Innovation is creating a new idea or product. It is

introducing something new to the market, or driving
transformation in products or even market strategy.
 Innovation and R&D are two terms that are sometimes
interchangeably used, but carry uniquely different
meaning. Innovation is driving new value and value
streams, whereas R&D is focusing on what you might
already have. It is so important to recognize that these
two terms are similar in meaning, but extremely different
in action. They are complimentary, not similar.

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GLOBAL INVESTMENT IN R&D
 http://uis.unesco.org/sites/default/files/documents/fs54-g
lobal-investments-rd-2019-en.pdf

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TREND IN THE RATIO OF R&D
EXPENDITURE TO GDP
 First -Japan up to 3.4%
 Second -US up to 2.8%
 Third -German around 2.5%
 Fourth -France around 2.3%
 Fifth -EU around 2.1%
 Sixth -UK around 1.9%

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 WHAT IS
What is Patent?
PATENT?
A right granted to anyone who invents or discovers any
new and useful process, machine, article of
manufacture, or composition of matter, or any new and
useful improvement thereof.

Validity of patent = 20 years

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PATENT ADVANTAGES

 I was first!

 Easy Publication — no editors.

 Licensing possibilities.

 Recoup money spent on R&D

 Expanded collaborations

 Commercial advantage over competitors

 Provide valuable trading assets to help assure

freedom to operate
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 HOW IS A PATENT OBTAINED?

 Inventor files the full disclosure of

invention in Patent Office
 Patent Office (MyIPO)
 conducts searches to ascertain the
prerequisites
 publishes the application
 conducts in-depth examination
 raises objection to the application
 grants the patent 17
BUILDING INNOVATION
COMMUNITY

Research Institutes, Technology and Innovation

Centers
Collaboration research with Industry
Incubators
Spin-Offs

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COLLABORATION RESEARCH
WITH INDUSTRY

 Provide opportunities for investigators to learn how

approaches from complementary disciplines may be
applied to existing problems, and lead to the
development of innovative solutions.

 Collaboration between academia and private industry

may also allow investigators to see real world
application of research.

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 INCUBATORS

 An organization that fosters the growth of new

ideas or companies
 Generally acquires small companies and
provides them with financing, management
expertise and services
 May adopt a think tank approach and look for
developing in order to grow faster.
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SPIN-OFFS
 A research spin-off is a company that falls into at least one of
the four following categories:
 Companies that have an Equity investment from a university

 Companies that license technology from a public research

institute or university
 Companies that consider a university or public sector
employee to have been a founder
 Companies that have been established directly by a public
research institution

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 SPIN-OFFS
•R&D spin offs with the appropriate
investment strategy can make an important
contribution to the company's income and
therefore increase productivity.

•R&D spin offs could support the company

strategy, putting value in terms of innovative
ability.

•R&D spin offs create new business and new

enterpreneurs
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 Spin-Offs
 An important aspect is that total costs are
reduced, the flexibility and rapidity of R&D
increases, the commercialization of the
innovations accelerates and the possibility of
success rises.

 The deciding success factors are the

independence and own identity of the spin off.

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ENTREPRENEURSHIP

ECV 3011
Engineers and Society
24
CONTENT

 Definition - What is an entrepreneurship?

 Advantages of entrepreneurship
 Factors favouring enterpreneurship
 Characteristics of an entrepreneur

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 ADVANTAGES OF ENTREPRENEURSHIP
To an Individual
(a) Provides Self Employment for the entrepreneur
(b) Entrepreneur can provide employment for near & dear one as well
(c) Entrepreneurship often provides an employment and livelihood for next
generations as well.
(d) Freedom to use own ideas – Innovation and creativity
(e) Unlimited income / higher retained income – Bill Gates has risen to
become
richest in the world in a single life time through entrepreneurship
(f) Independence
(g) Satisfaction

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 ADVANTAGES OF ENTREPRENEURSHIP
To the nation

(a) Provides larger employment – Entrepreneurs provide employment

for self as
well as other people and is source of employment creation.
(b) Results in wider distribution of wealth – This is a logical sequel of
above issue. Higher the employment, greater the distribution of wealth
(c) Mobilizes local resources, skills and savings
(d) Accelerates the pace of economic development – Entrepreneurship
is the govt’s one of the most trusted vehicles for economic
development
(e) Stimulates innovation & efficiency
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 FACTORS FAVOURING
ENTREPRENEURSHIP
1. Developed Infrastructure Facilities – Availability of infrastructure
reduces the cost & efforts and improves viability of projects
through higher profit margins.

2. Financial Assistance – Easy availability of cheap funds is vital for

promoting entrepreneurship.

3. Protective and Promotional Policies – Most of the

entrepreneurship projects start very small and have no resilience.
They are extremely vulnerable to competitors, market, money
markets, etc, for considerable time. Favourable Govt policies
helps. 28
4. Growth of Education – Science, Technology & Management –
Growth of education is believed to be promoting
entrepreneurship. (Contrary: Large proportion of first generation
entrepreneurs are not highly educated eg. Microsoft Bill Gates)

5. Risk Taking Abilities – Risk taking ability is one of the pillars of

entrepreneurial spirits.

6. Hunger for Success (Capitalistic View) – Fire in the belly and

dreams of riches is what drives most entrepreneurs on this risky
path. Any person content with what he has would take the easier
route of salaries job.
29
7. Environment/Culture Impact – Entrepreneurship is
contagious. Communities influence the populatiuon to be
creative, historically entrepreneurial in handicrafts are
Kelantanese and Trengganus.

8. Technical/Industrial Training Facilities – Industrial Training

facilities on one hand generate skilled manpower so vitally
required for setting up enterprises while on the other hand they are
also nursery for future entrepreneurs

9. Globalization – Globalization has provided another avenue for

business. Many dare devils have taken a head– along plunge into
this uncharted water and have written new success stories .
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WHAT PEOPLE THINK…. ENTREPRENEURS ARE

 Common traits  Common traits

Original thinkers Self employed parents
Risk takers Firstborns
Take responsibility Between 30-50 years
for own actions old
Feel competent and Well educated – 80%
capable have college degree and
Set high goals and
1/3 have a graduate
enjoy working toward level degree
them
SUCCESSFUL AND UNSUCCESSFUL
ENTREPRENEURS

 Successful  Unsuccessful
Creative and Poor Managers
Innovative Low work ethic
Position themselves in
Inefficient
shifting or new
markets Failure to plan and
Create new products prepare
Create new processes Poor money managers
Create new delivery
 CHARACTERISTICS OF ENTREPRENEURS

Key Personal
Attributes

Strong Managerial Successful

Competencies Entrepreneurs

Good Technical Skills

CHARACTERISTIC OF A SUCCESSFUL
ENTREPRENEUR?

 The urge for achievement (most often monetary ambitions) – Most Important
 Willingness to take moderate risks – (High risk takers are not entrepreneurs
but gamblers).
 Determination to win/positive
 Win– Win Personality
 Perseverance
 Ability to identify & explore opportunities
 Analytical ability to take strategic decisions
 Capacity to plan and organize
 Future orientation – Vision
 Flexibility
 Preparedness to undergo physical and emotional stress
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OTHER FACTORS NEED TO TAKE CARE

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END OF SLIDES
LEARNING OUTCOME …..

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TOWARDS ENTREPRENEURIAL
R&D

 Staff revenue from intellect property (IP)

 Bonus from joint ventures
 Spin-Off Assistance (Training)
 Staff can take equity
 Org. can take equity

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