MOU to establish a Joint Technical Exponent Ltd, signed by Science and Technology Universities

UNIST signed an MOU for setting up a joint technology holding company, with three science and technology specialized universities: KAIST, GIST, and DGIST, on 28 Oct, 2013.

This joint technology holding company is going to be established early next year, and will act as a platform to cultivate global businesses as well as create ventures with outstanding technologies developed by the science and technology universities.

Currently science and technology universities are possessing 380 billion won of research funding for technology developments, but the profit from the technologies is merely 6.6 billion won. Additionally, the yearly average productivity from those technologies is only 1.75%, considerably lower than 3.38% , the average productivity of American universities

From transferring university technology to the business world, universities are trying to encourage researchers to establish their own ventures through joint technology holding companies. This will help from incubating the ventures to eventually an Initial Public Offer (IPO).

The joint technology holding company will also be a one-stop support program for the universities’ and the businesses, for their technology transfer and venture establishment.

The initial investment from the four science and technology universities totals 14 billion won, invested sequentially from each university for 5 years.

“As the joint technology holding company is established, we could create a large-scale business with convergence technologies from science and technology universities,” said Prof. Pann-Ghill Suh, director of Academy-Industry Research Corporation of UNIST. “We could secure the management in financial and human resource through economies of scale.”

The Ministry of Science, ICT and Future Planning and four science and technology universities prepared “Strategies to cultivate leading models for technology commercialization” which promotes research achievements which contribute to people’s happiness while helping to realize the creative economy. As a successor of the strategies, they are planning to set up a joint technology holding company.