Towards a new circular for the establishment and operation of intermediary organizations in the science and technology market in vietnam

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  1. TOWARDS A NEW CIRCULAR FOR THE ESTABLISHMENT AND OPERATION OF INTERMEDIARY ORGANIZATIONS IN THE SCIENCE AND TECHNOLOGY MARKET IN VIETNAM Associate Professor Tran Van Nam, PhD Dean, Faculty of Law, National Economics University, Hanoi Email: namtv@neu.edu.vn Abstract Based on a brief review and analysis of from the scenario of waste sorting technology transfer Case study in Vietnam, the paper highlights a critical point that, a draft Circular replacing the Circular No. 16/2014/TT-BKHCN dated June 13, 2014, of the Minister of Science and Technology shall be finalized very soon. This new circular stipulates favorable conditions for establishment and operation of intermediary organizations in Vietnam’s science and technology market for the time coming. Keywords: technology transfer; Intermediary Organizations; Circular 1. Introduction: After 30 years of innovation, Vietnamese economy has overcome the stagnation as well as promoted our labor capacity and endless creation. We have gained great and significant achievements having better and better influence. And science and technology have contributed vital parts in that success. Although the concept Technology transfer services have appeared in recent decades, they have become heated issues studied by many researchers. They have played an important role in the whole world economic development, especially for nations undertaking industrialization and modernization like Vietnam. Studying and making policies, strategies to improve technology transfer services has been considered as a key step to ensure the rapid and sustainable development of a nation. The result of this paper states that, a draft Circular replacing the Circular No. 16/2014/TT-BKHCN dated June 13, 2014, of the Minister of Science and Technology shall be finalized very soon. This new circular stipulates favorable conditions for establishment and operation of intermediary organizations in Vietnam’s science and technology market for the time coming. 463
  2. 2. Observation from the scenario of waste sorting technology transfer Case study in Vietnam As of the end of December 2017, according to the General Statistics Office, there are over 561 thousand enterprises operating and the demand for new technologies is quite high. Currently only 10% of enterprises use technology since the 1970s, 30% use technology from the 1980s and 50% from the 1990s. many research results implemented by domestic research organizations with low investment costs, however, research institutions and agencies still lack commercialization skills, information and confidence in management of technology. The link between universities, research institutes and manufacturing sector relies heavily on personal connections. Typically, the commercialization has not been successful in the technology of sorting and disposing of automatic waste by the engineer, Mr. Lai Minh Chuc. At Ha Nam Province Waste Treatment Plant, the monitoring and control system with automatic mechanical technology and digital image + Internet transmission was completed by Engineer Lai Minh Chuc in May 2010. In order to have a basis to decide to allow mass production, in January 2012, the Ministry of Science and Technology and the Ministry of Industry and Trade decided to support 30% of the capital (equal to US $ 120,000) for the author to implement the project By May 2012, Engineer Chuc successfully manufactured his automatic control system with digital programming technology (PLC) and remote control by wireless device and image-perfect technology. The highlight of the 4th generation automatic sorting machine combination, used for sorting input composite waste, is the automatic sorting technology which saves huge cost and energy compared to the sorting lines already import and domestic manufacturing research. : - Installation area is less than 10%; - Using 10-20% of fair labor; - Only use electrical energy equal to 30%; - The total cost of waste classification is reduced by over 70%; - Volume of iron and steel for manufacturing reduced by 80% The most remarkable thing is that the quality of waste sorting of this technology is much higher than that of sorting devices that many people directly pick up waste by hand, overcome the secondary pollution situation of emissions and micro infectious bacteria for workers and the environment around the factory. According to the director of Ha Nam Waste Treatment Plant Nguyen Ngoc Hue (video source of VTV6), this is an automatic technology without manual labor, should be widely used 464
  3. in Vietnam, as it will be more suitable. compared to other waste sorting solutions. Regarding automatic waste treatment technology, Engineer Chuc has been granted a number of patents by the National Office of Intellectual Property; of invention, such as, number 12044 for Solid Waste Handling and Sorting Equipment with a Patent granted on November 19, 2013 The experts from WIPO have determined the technology price of about 12 million euro. However, due to lack of access to any science and technology intermediary organization, it is only expected that by 2019, the project will formulate two waste plants projects in the South and Central of Vietnam. 3. The need to replace the Circular No. 16/2014/TT-BKHCN on the conditions for establishment and operation of the intermediary organization of the science and technology market Based on the above observation from the scenario of waste sorting technology transfer Case study in Vietnam, the author shall review the need to replace the Circular No. 16/2014/TT-BKHCN on the conditions for establishment and operation of the intermediary organization of the science and technology market. On June 13, 2014, the Minister of Science and Technology issued the Circular No. 16/2014/TT-BKHCN on the conditions for establishment and operation of the intermediary organization of the science and technology market (so-called Circular 16) aims to form a network of intermediary organizations, promoting consultancy and brokerage activities in technology transfer, commercializing research results. After 04 years of implementing the Circular, in addition to identifying intermediary organizations, the network establishment purpose was basically not achieved due to the setting of conditions attached to the operation registration procedure. In the context of reduction of administrative procedures, strengthening support to develop intermediary for the science and technology market, and the innovation ecosystem, it is no longer appropriate for any conditions and set up procedures for establishment and operation registration for intermediary organizations. The 2017 Law on Technology Transfer and the Decree 76/2018/ND-CP detailing and guiding the implementation of the Law on Technology Transfer stipulates that an intermediary organization to receive support must be an organization performing functions such as connection and brokerage, consulting, evaluating, evaluating prices, without setting conditions for each type of intermediaries and procedures for establishment and operation registration. Instead, these two legal documents regulate support mechanisms (subjects, content, forms, sources of support ) in order to improve operational capacity, promote the intermediary organizations in the market, thereby forming a network that can connect, 465
  4. share resources, information, etc. However, the support content should continue to be concretized as a basis for determining the level support in financial documents of related programs and projects. Therefore, replacing Circular 16 towards establishing supportive contents shall be an urgent requirement to meet practical requirements. 4. Proposed functions of intermediary organizations - to provide consulting and brokerage services, technology transfer promotion, commercialization of scientific research and technological development results; technology assessment, evaluation and assessment; incubation of technology and incubation of science and technology enterprises according to the law on technology transfer. - to provide innovative start-up support services, including: a) Advise organizations and individuals on how to improve, innovate technology, technology products, business models; management, exploitation and commercialization of intellectual property; b) Providing services to support organizations and individuals in selecting, acquiring, decoding, mastering and improving technologies; c) Consulting and training on scientific research and technological development; complete, apply and commercialize technology; start a business, corporate governance, market development, branding, intellectual property management; d) Investment, mobilize investment capital, support financial activities, credit for incubating and commercializing science and technology and enterprises; An intermediary organization performing the functions specified in this circular may be organized in the forms of technology exchanges centers, transfer of technology offices, incubators, or other entities according to the current legal regulations. 5. Identified areas to support intermediary organizations - to support according to the value of brokerage contracts, consultancy, promotion of science and technology market, technology commercialization, results of scientific research and development. - to give priority in participating in programs and projects that support the promotion of science and technology market development and commercialization of scientific research and technological and intellectual property results. Innovation start-up and other related programs and projects using the state budget. 466
  5. - to support for organizing and participating in events at home and abroad, including: (I) Support to organize and participate in workshops on technology transfer and commercialization; Technology and equipment market (Techmart), Supply- demand technology demonstration (tech demo); exhibition introducing technology, results of scientific research and technological development; Investment day for technology commercialization (Demo Day), Startup Day (Startup Day), Innovation Day (Innovation Day), Invention exhibition (Invention Exhibition), Science and technology exhibition commercialization potential (Techshow); (ii) Support for providing renting costs of local and international exhibitions for the promotion of science and technology market, technology commercialization. - to support in terms of innovation start-ups a) Support the cost of using equipment at technical facilities; b) Supporting fees for participation in incubation facilities and common working areas; c) Support under consultancy contracts on procedures for establishment, transfer and protection of intellectual property rights; d) Support under consultancy contracts on the formulation and implementation of intellectual property policies and strategies; e) Support according to the value of consultancy contracts on design, protection registration, exploitation and development of the value of inventions, industrial designs and trademarks; e) Support according to the value of consultancy contracts on the formulation of grassroots standards; f) Support for testing, verification, inspection and quality certification costs. Conclusion Technology transfer intermediary services including technology brokerage, consulting, promotion together with technology assessment, and evaluation services are a continuous chain and a key to success of technology transfer. Promoting the development of technology transfer services is one of the most urgent requirements today. Vietnam is in the period of accelerating industrialization and modernization, thus, issuing new sub-laws to support technology transfer services conducted by intermediary organizations will help to fill the gap between Vietnam with other economies in the region. 467
  6. References 1. Ministry of Science and Technology, Vietnam’s report on science & technology activities in 2018 and action plan for 2019. Hanoi, November 2018 2. Tran Van Nam (2017), Current situations and legal solutions to promote technology transfer services in Vietnam, Tạp chí Nhân lực Khoa học xã hội, No 03 - 2017 (p.3-13) 3. Tran Van Nam (2018), Perfecting regulations on intermediaries’ activities to develop science – technology market, Tạp chí Nghiên cứu Lập pháp, No. 03 – 2018 (p.89 - 94) 4. Tran Van Nam (2018), Strengthen legal roles of intermediaries for a Real Breakthrough of technology transfer in Vietnam, The 2018 ASLI Conference, Law in Asia, looking into the future; Seoul National University; May 2018. 5. Tran Van Nam, co-editor (2018), Intellectual Property Law Textbook;. National Economics University Press. Chapter 4 Li-xang and technology transfer contracts (p.215 – 242) 468