In the five years since the government proposed a plan to establish 1,000 venture firms under the initiative of universities, the actual number of such companies stands at more than 1,500.
But the business footholds these venture firms have secured is not necessarily strong, as many of them are lacking in management skills and funds.
The government's efforts to foster venture firms faces the hurdle of moving from the quantity stage to the quality stage.
Shinya Kuno, an assistant professor at Tsukuba University, is also president of Tsukuba Wellness Research, a venture firm established under the initiative of the university.
"I used my expertise to set up this firm in an effort to popularize correct health enhancement methods, not for profit," Kuno said.
The company was established in 2002 to commercialize the results of studies into muscular training, walking and other sports science matters in which Kuno is knowledgeable. He established the company to help elderly people remain healthy.
The company has contracts with 23 local governments and organizations, including the Chiba prefectural government.
It provides exercise programs that are specially tailored to accommodate the physical condition of the end users. The company has been in the black from the first year and Kuno has an initial public offering of its shares in sight.
Kuno set up a firm under the university's initiative because he wanted to avoid the trap under which the pursuit of profits would distort his health-enhancement programs.
Under the initiative of Hokkaido University, GEL-Design Inc. was established two years ago to utilize the fruits of its studies of gel, an area in which the university is on par with the best in the world.
The venture firm is enjoying a good business performance as one of its products, lunch boxes featuring an insulator made from gel, has proven popular.
President Hiroyuki Tsukeshiba, 32, studied gel when he was a student at the university and later established the company.
"Raising money is a tough job, but I am fortunate to have an excellent staff. My goal is to develop highly functional products, such as medical materials," he said.
These venture firms develop and sell products and services based on studies by universities.
In 2001, the Economy, Trade and Industry Ministry launched the project to foster venture firms in expectations that start-up companies would lead to the creation of new businesses and an improvement in Japan's international competitiveness.
The ministry has offered management consultation and helped the start-up firms procure funds. The Education, Science and Technology Ministry cooperated by allowing researchers at state-run universities to work also at the venture firms.
As a result, 1,503 venture firms had been set up as of the end of March, far exceeding the initial target of 1,000 in the first three years.
The management styles of the firms are varied. In some, the managers are also the researchers, and in others the managers were invited from the private sector.
Many of the firms are in highly competitive markets. Thirty-eight percent of the firms are in the biotechnology field, such as the development of new medicines and foodstuffs, and 30 percent are in the information technology field, such as the development of computer software.
Some of the firms are engaged in unique areas to which ordinary commercial companies probably pay no attention.
For example, one venture firm set up under the auspices of Hiroshima University manufactures equipment to measure the ripeness of fruit, and another under the initiative of Takarazuka University of Arts and Design is developing electronic eyeglasses for people with visual impairments.
According to the ministries, the average annual sales of 1,141 of firms that have begun commercial business operations is estimated at 148 million yen, and the average number of employees is 12.3.
The ministries estimate that the venture firms have created an economic effect worth 364.2 billion yen, including spillover to related industries, and employ 25,858 people.
Although Tsukuba Wellness Research is a successful example, not all of the venture firms have enjoyed smooth sailing.
In August, the Creative Research Initiative "Sousei"--Hokkaido University's institute--and The Yomiuri Shimbun jointly surveyed 1,172 major venture firms created under the initiative of universities.
Of the 82 firms that responded to questions on business performance, 52 percent said they were in the red, with only 46 percent saying they had shown a profit.
The major reason for the losses was heavy investment in research and development. Many of the firms relied on public financial assistance, and 78 percent said they had used funds from public assistance schemes.
Business analysts point out it is difficult for the venture firms to secure and foster talented workers, and develop sales channels. In searching for potential clients, it is essential for the venture firms to receive assistance from other local companies and organizations for bridging industrial and academic sectors.
The Economy, Trade and Industry Ministry's Academic-Industry Cooperation Promotion Division plans to bolster such assistance saying it is important to shift priority from growing the number of venture firms to improving their performance.
Some critics say it should be examined whether the use of public assistance for this shift is proper, as relying on aid money could lead to a lack of business efforts.
Koichi Sato, Hokkaido University's designated assistant professor for the venture firm project, said, "Universities must strengthen checks over whether subsidies and financial aid could work as good booster shots."
Managers of the venture firms are also required to change their way of thinking.
In the joint survey, only 46 percent of the firms are looking to a public offering of shares, suggesting that managers want to keep their firms under their own control.
Hokkaido University Prof. Yasuyuki Hamada, an economic researcher specializing in venture investment studies, said: "Venture firms created under the initiative of universities are seen quasi-public entities because they have received public financial aid from the very early stage of research and development. The firms can not grow if managers have a sense that 'This is my company.'"
(Oct. 9, 2006)
http://www.yomiuri.co.jp/dy/features/science/20061009TDY03003.htm
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment