Contextualizing Multidisciplinary Research in

the Modern Global Economy; A Key

Component in Building Competitive New
Projects and Innovations
Joshua Nyamweno Onchong’a

 Keywords—angle investors, crowdsourcing, innovation

Abstract— research in the recent years has taken a different turn ecosystem, innovation hubs, knowledge-based economies,
other than to meet the routinely curriculum needs. Research and organizational climate, research, venture capital
development has come in handy as a key factor in the building of
knowledge based economies. Knowledge technologies are rapidly I. INTRODUCTION
building up because of research. Research cannot serve to solve the
major academic and global problems if it is not contextualized. It is
important to review the organizational climate at university level to T oday’s global economy is rapidly changing from the
traditional that belief of economic freedom solely
emanates from endowment of physical resources such as
suit the modern trends in research. It must be noted that major
problems facing humanity traverse multiple disciplines. It is therefore minerals. It is a time when knowledge based economies and
vital for us to structure research on interfaces of multiple disciplines idea economies are dominating. In such economies innovation
and equip our researchers with knowledge in many disciplines. and knowledge are the most important economic tools. The
Higher learning institutions that have obtained full potential in
vast applications of knowledge in production are creating a
research and innovation are those characterized by organizational
support to these schemes. Organizational climate in terms of support loophole for the vast exploitation of knowledge technologies
plays a crucial role in the level and direction of research in an of knowledge engineering and knowledge technologies. The
institution. It provides an enabling atmosphere- a prerequisite for innovative societies are changing from closed logic innovation
research and innovation activities to grow and flourish. It encourages to open logic innovations and research taking a new approach
participation and collaboration among participants. It promotes the to traverse interfaces of multiple disciplines. The academia
role of mentorship and advisory in addition of promoting diversity-
has been transformed to meet the new demands of knowledge
an important component in successfully executing a research
assignment. Supportive organizational climate is viewed in terms of in the global economy. Transitional economies are developing
laid down measures to boost and promote schemes of research and nations risk being further marginalized if they are not
innovation; the resources and facilities that are in place, programs aggressive in changing their cultural systems of doing
and policies governing research operations. An effective supportive research as a mere curriculum requirement rather than a
organizational climate is the one that can adequately provide the source of creating new knowledge and innovations.
necessities of research in addition to fighting for supportive
government policies. It should promote co-ordination among
members in a way that incorporates all members. Proper
crowdsourcing practices are vital in promoting innovations as II. KNOWLEDGE BASED ECONOMIC STRUCTURE
collaborative thinking enhances development of simple ideas to great If In order f to understand the position of innovation and
innovations. Innovations cannot be actualized if we do not have Research and development, it is mandatory to look at the
proper intellectual property protection policies in place. University
based innovations are most likely to attain commercialization if we knowledge based economies especially through their
have proper research at the university level. It is needless to talk academia, research and innovation as well as their leadership
about innovations if we cannot commercialize them. Innovation hubs patterns in terms of policy making and implementation.
are a commercial perspective of innovations. To reap the benefits of A knowledge economy is one in which the generation and
these innovations, an innovation ecosystem ought to be fostered not exploitation of knowledge has come to play a predominant
forgetting entrepreneurship as well. Angle investors as well as part in the creation of wealth. It is not simply about pushing
venture capitals should be given a big consideration regarding
innovation hubs.
back the frontiers of knowledge but also most effective use
and exploitation of knowledge in all manner of economic
activity [1]. For remarkable result to be realized all knowledge
centers universities and research centers should play their
roles adequately.
Joshua Nyamweno Onchong’a, Department of aeronautical engineering
Engineering, Technical University of Kenya (phone: +2540701464173; e- The following pillars are four critical requisites for a
mail: [email protected]) country to be able to participate in the knowledge economy:
 A. Education and training capitalists and angel investors.
The global knowledge economy is transforming the Venture capital
demands of labor market in economies throughout the world. Venture capital (VC) is financial capital provided to early-
It is also placing new demands on citizens, who need more stage, high-potential, high risk, growth start-up companies.
skills and knowledge to function in their daily lives. The venture capital fund makes money by owning equity in
Equipping people to deal with these demands requires a the company it invests in, which usually have a novel
new model of education and training, a model of lifelong technology or business model in high technology industries,
learning. A lifelong learning encompasses learning throughout such as biotechnology, IT, software, etc. The typical venture
the life cycle, from child hood to retirement. It encompasses capital investment occurs after the seed funding round as
formal leaning (schools, training institutions, Universities), growth funding round ( also referred to as series A round) in
non-formal learning (on-the-job and household training), and the interest of generating a return through an eventual
informal learning (skills learned from family members or realization event, such as an IPO or trade sale of the
people from the community). It allows people to access company[4]
learning opportunities as they need them rather than because In addition to angel investing and other seed funding
they have reached a certain age. options, venture capital is attractive for new companies with
Lifelong learning is crucial to prepare the workers to limited operation history that are too small to raise capital in
compete in the global economy. However it is important for public markets and have not reached a point where they can
other reasons as well. By improving people’s ability to secure a bank loan or complete a debt offering. In exchange
function as members of their communities, education and for the high risk that venture capitalists assume by investing in
training increase social cohesion, reduce crime and improve smaller and less mature companies, venture capitalists usually
Income distribution. get significant control over the company decisions, in addition
Developing countries and transition economies risk being to a significant portion of the company’s ownership (and
further marginalized in the global economy because their consequent value).
education and training systems are not equipping learners with Venture capital is associated with job creation (accounting
the skills they need. To respond to the problem, policy makers for 2% of US GDP), (the knowledge economy), and used as a
need to make crucial changes. They need to replace proxy measure for innovation within an economic sector or
information-based, teacher-directed rote learning provided geography. Every year, there are nearly 2 million businesses
within a formal education system governed by directives with created in the USA, and only 600-800 get venture capital
a new type of learning that emphasizes creating, applying, funding. According to the National Venture Capital
analyzing and synthesizing knowledge and engaging in Association, 11% of private sector jobs come from venture
collaborative learning throughout the lifespan [2] pg. 77. backed companies and venture backed revenue accounts for
21% of US GDP [5]

B. Information Infrastructure A) Need of Venture capital

A dynamic information infrastructure- ranging from radio Kenya being a country that is industrializing it requires to
to internet- is required to facilitate the effective assimilate venture capitalists like any other knowledge
communication, dissemination and processing of information economy because:
[3] (The four pillars of a knowledge economy) •There are entrepreneurs and many people who come up
Knowledge technologies such as knowledge engineering with bright ideas but lack the capital for investment. What
and knowledge management should come in line with the these venture capitals do is to facilitate and enable the start-up
information infrastructure. Knowledge creation, representation phase.
and distribution should be well structured to involve •When there is an owner relation between the venture
community groups and to promote collaborative thinking. capital providers and receivers, their mutual interest for
returns will increase the firms’ motivation to increase profits.
C. Economic Incentive and Institutional Regime •Venture capitalists have invested in similar firms and
projects before and, therefore have more knowledge and
A regular and economic environment that enables the free
experience. This knowledge and experience are outcomes
flow of information and communication technology, and
through successes and failures from previous ventures, so they
encourages entrepreneurship is central to a knowledge
know what works and what does not work, and how it works.
economy [3].
Therefore, through venture capital involvement, a portfolio
One of the major challenges facing Kenya and other
firm can initiate growth, identify problems, and find recipes to
developing and mid income economies is to create a
overcome them.
conducive climate for foreign investors, venture capitalists
and to build a good entrepreneurial climate.
B) Government Involvement in the Venture Capital:
In thriving innovation hubs, capital is made a ubiquitous
Government policy
factor because of an enabling environment that favors venture
Through policy choices the government affects the size and
structure of the Venture capital industry. Government actions more than 90% of job creation occurs after a venture-backed
fall into three broad categories. First, the government can have company goes public. In the last decade, however, the market
a creative function. In Singapore, for example, the venture for venture-backed initial public offerings (IPOs) has suffered
capital industry is as a result of a series of promotional due to unfavorable market conditions and ramifications from
measures taken by the government. Virtually every one-size fits all regulations. This for the recent past has
government has some program of subsidies or other help to affected the advantages that the US was getting from the VC
small enterprises. Second, government policies such as tax industry. From 2008-2010, only 62venture backed companies
policies and regulations of Venture investments directly affect have gone public compared to some period one decade ago
the venture capital industry. Third, laws and regulations when 583 companies had IPOs. While venture capitalists can
governing pension funds, stock markets, labor markets, return money from an acquisition, the IPO is the exit which
patents and other areas that affect the venture capital industry translates into job exit in the U.S. Therefore for Kenya to
indirectly [6]. optimally create jobs, it should encourage small cap IPOs.
Issuers of venture capital are firms developing new 4. Embarking upon Legal Immigration Reform- the greatest
innovative technologies that are project potential for growth in challenge that Kenya is facing is the attraction and retention of
the future, but are in the early stage of R&D or foreign investors and entrepreneurs. This is largely attributed
commercialization. As a means of generating more income the to the political stability and immigration policies. Unless the
pension scheme has proven to be one of the sources of government is able to reform the immigration policies, Kenya
increasing Venture Capital in the USA. The Corporate stands a high risk of losing innovators to other countries. To
Pension Investment plan is used as an alternative asset base put up a conducive environment for foreign investors the
[7]. Kenyan government should also consider the tax policies,
Public policy plays a significant role in the health of the custom drawbacks, free land, and tax holidays among many
venture capital industry and in companies in which the incentives that allure foreign investors.
industry invests. Given the dynamic and evolutionary nature
of our ecosystem, we need policies and programs that promote
D. Innovation Systems
certainty, supporting and encouraging the formation and
growth of companies that are innovating in a meaningful way. A network of research centers, universities, think tanks,
The following represents some of the most important ways in private enterprises and community groups is necessary to tap
which policy makers can help ensure start-up ecosystem into the growing stock of global knowledge, assimilate and tap
continues to prosper: it to local needs and create new knowledge (The Four pillars
1. Encouraging Long Term Investment through Tax policy- of a knowledge Economy).
National Venture capital Association (NVCA-USA) has long It is important to note that knowledge, education,
advocated for a tax structure that fosters capital formation and research and universities make the back bone of an innovation
rewards long-term, measured risk taking. We believe that the system. The role of think thanks cannot be underrated in any
returns earned by venture capitalists and entrepreneurs as a innovation system. A think thank or a policy institute is an
result of building successful companies that are out- organization that carries research on policy issues that help to
innovating others over the long term should be taxed at the develop a knowledge economy. A think thank therefore is a
capital gains rate. In recent years, this tax rate has been key component as far as leadership practices are in any
threatened by those who do not understand the importance of innovation systems.
encouraging Venture investment. It is critical that capital gains
tax rate is globally competitive and preserves a meaningful III. KNOWLEDGE
differential from the ordinary income rate so that proper It is important to note that knowledge, education, research
incentives remain for investors who are often dedicating more and universities make the back bone of an innovation system.
than a decade and time to each of their companies [8] pg.7 It is therefore wise to consider the following trait of
2.Protecting sources of Future capital- Venture capitalists knowledge:
receive more than 90% of their money from institutional Knowledge: Both an economic pillar and an intangible
investors which commit a small percentage of their portfolio asset- Knowledge is a tool that carries transformative effects
to alternative capital of which VC is but one. These investors that have been proven to carry economic qualities. If best
typically enjoy above average returns in exchange for risk handled and applied in the frame of economic productivity, a
factor associated with venture investing. We estimate that nation is guaranteed to attain economic freedom. The need of
public and private pension funds represent approximately 40% knowledge, creation and transfer of knowledge and the
of the institutional investor base for venture capital, making application of knowledge are areas that portray the nature of
this investor group the largest overall for Venture industry ([8] knowledge. These represent research innovation and
Pg.8. It’s vital therefore for Countries like Kenya that are education; pillars of any innovation system. All these factors
rapidly developing to put up good measures in alternative constitute intangible assets to any nation that owns them. This
assets in order to preserve the future capital base. makes them valuable assets to any nation that exploits them
3. Encouraging more small cap IPOs- studies show that optimally. Always the traditional approaches have focused on
other factors of production such as labor, capital, land and an important component in successfully executing a research
natural resources as the only factors of production, neglecting assignment. Supportive organizational climate is viewed in
to include knowledge as a factor of production. This is the terms of laid down measures to boost and promote schemes of
case especially in developing and middle level economies research and innovation; the resources and facilities that are in
where advancement in terms of knowledge usage has not been place, programs and policies governing research operations.
realized. This is reflected by both limited job opportunities An effective supportive organizational climate is the one that
and limited emphasis in the usage of traditional education can adequately provide the necessities of research in addition
system/ developed countries attribute their development on to fighting for supportive government policies. It should
this valuable economic asset. It is therefore crucial to note that promote co-ordination among members in a way that
knowledge is categorized as an economic good. It is therefore incorporates all members.
crucial to handle knowledge affairs with a lot of seriousness. To successfully attain acceptable heights in research and
Education, research and innovation comprise of knowledge innovation, it is a prerequisite for all higher learning
activities. They are tools for developing human capital; an institutions to adapt an atmosphere that is supportive and
important ingredient to economic prosperity of any nation. enabling [11]. Organizational climate at university drives
However a nation cannot benefit from these factors if they are commercialization of scientific and engineering discoveries.
not properly executed. Knowledge based economies and Favorable organizational climate has a sizeable and direct
knowledge economies are notation that contextualized their impact on the development of new inventions and patents
research, innovation and education schemes to attain [12]. University-based inventors are more likely to generate
economic prosperity. Member countries to organization more early-stage commercialization and provide opportunities
economic cooperation development have adopted this for collaboration which spans the research boundaries of
economy. This is conveyed through increased emphasis in academic disciplines. A good organizational climate is more
investment in knowledge; this is made up of investment in readily influenced by management; a leadership aspect, rather
research and development and investment in higher education. than other environmental factors such as availability of
To optimally benefit from knowledge pool a nation should venture capital [13]
consider the following: Leadership can actively demonstrate support for
1. The knowledge based industrial structure commercialization by explicitly including commercialization
2. Knowledge skills in a global economy activities in rewards and compensation practices such as
3. Intangible assets and innovation in an age of financial promotion and tenure decisions. Leadership might also urge
conservatism and provide support for science and engineering researchers to
4. High-growth small and medium enterprises [9]) collaborate within and beyond traditional organizational
boundaries, thereby increasing novelty and commercial
potential of their discoveries [14].
IV. CHANGING ROLE OF UNIVERSITIES
Traditionally, the roles of universities were education, basic A. Modern research at university level
research and science. However in the last 2-3 decades new
Research and experimental development is creative work
functions were taken over: knowledge and technology transfer
undertaken systematically to increase the stock of knowledge,
to industry, commercialization of knowledge, more active role
including knowledge of humanity, culture and society and the
in national and regional innovation systems. In most
use of this stock of knowledge to devise new applications
developed countries, a growing attention is paid to the
(OECD, 2002). Research is used to establish or confirm facts,
economic utilization of publicly funded research. This holds
reaffirm the results of previous work, solve new or existing
particularly true for high-technology and knowledge based
problems, support theorems, or develop new theories [15].
sectors where scientific inputs are key importance in the
In developed countries, research is used as a tool for creating
innovation process [10].
wealth. This is because research forms a basis of acquiring
new knowledge that is transformed to products or services;
components that drive an economy. Consider the fat that
V. ORGANIZATIONAL CLIMATE
research is one of the components of an education system, and
Higher learning institutions that have obtained full potential the wide dependability of research findings. It is crucial to
in research and innovation are those characterized by give a central role in wealth creation. Research has always
organizational support to these schemes. Organizational been a tool with a multiple function. Depending on the
climate in terms of support plays a crucial role in the level and method and purpose of research, several products can arise
direction of research in an institution. It provides an enabling from it. Research is broad and its benefits are many. It is
atmosphere- a prerequisite for research and innovation through research that current leads and trends can be
activities to grow and flourish. It encourages participation and identified. And also it is through research that a country can
collaboration among participants. It promotes the role of optimize use of its resources. One important and yet crucial
mentorship and advisory in addition of promoting diversity- aspect of research is that it can be designed to respond to any
problem; a property that has qualified it to be vital element Supervision of the development of the research scheme is
towards industrialization [16]. done.
Higher learning institutions are bodies that in most cases are In today’s knowledge landscape there are powerful drivers
charged with the responsibility of carrying out research. Most for multidisciplinary research. Through simple collaboration,
research work performed by these institutions re primarily researchers from different disciplines can accomplish more by
directed to cover o satisfy requirements of the curriculum. teaming. Interdisciplinary research moves beyond simple
This is a common phenomenon in developing nations. Most collaboration and teaming to integrate data, methodologies,
developing nations view research from formality or perspectives, and concepts from multiple disciplines in order
requirement angle. This has led to stagnation of research to advance fundamental understanding or to solve real world
schemes and realization of little or no benefit. This is problems. Interdisciplinary research requires either that an
conveyed by low patent disclosure, few publications and few individual researcher gains a depth of understanding two or
discoveries being made; a dangerous scenario. Higher learning more than one discipline and be fluent in their languages and
institutions must take a lead front in promoting research methodologies, or more frequently that multidisciplinary
activities. For a nation to record impressive research benefits, teams assemble and create a common language and
it is imperative to mandate higher learning institutions with framework for discovery and innovation. The drivers for

 In the first instance, nature and society is complex, and

research responsibility by providing the resources- both interdisciplinary research are varied:
material and immaterial support. It is vital for the government
to put up policies that govern and support research activities. our innate curiosity to understand the element and forces
A nation that wants to economically benefit from research within them requires examination from perspective of
and provide its citizens with needs it should heavily invest in
 Importantly, we have a critical need to solve societal
multiple disciplines
research. It should contextualize its research schemes in
economic dimensions:
 The example most urgently felt at this time is
problems in a world that is subjected to many forces:
•Education
•Industrial consequence of failing to fully understand all of the
At educational level, research is vital in knowledge forces unleashed by the free movement of capital and
management practices; identifying, creating, representing,
 Only a short time ago, our urgent focus was climate
globalization
distributing and enabling adoption of insights and experience.
Research is vital in creating new knowledge to be traded I the change, where we must consider, among other things,
knowledge economy. The education system should also how oceans and rivers are affected by land use and the
capitalize on exposing learners early to research products of industrialization, atmospheric constituents
Higher learning institutions need to read the trends in and solar radiation. These subsystems are linked in time
research. They should have an understanding of patterns that and space and have embedded in them multiple feedback
have characterized the research landscape. These are
 The complexity presented in each of the real world
mechanisms.
approaches that carry the potential to significantly impact on
the economic need of a country. These are approaches that examples requires multidisciplinary research that spans
give the direction of research and seek to improve its the natural and social sciences if we are to attain the kind
efficiency. In order to effectively identify these trends, higher
 Finally, tools available to examine the world are most
of predictive capability that could inform policy makers.
learning institutions need to have a strong information system.
A system that supplies information about the recent often transformational when drawn from outside the
development, and the patterns research activities are taking. discipline that developed them; such as the discovery of
The following are trends that have characterized research X-rays by physicists and their impact on medicine, or the

 Multidisciplinary research
landscape: creation of internet by the military and its impact on

 Trends in research funding

communication in the society at large[17].

 Internationalization b. Trends in research funding

Academic institutions are largely organized in ways that
a. multidisciplinary research- an essential driver for promote the advancement of individual disciplines, or sub-
innovations disciplines. Policies that govern hiring, promotion, and the
This is a resent development in research. It involves the allocation of resources often work against interdisciplinary
combination of different disciplines to conduct research. It is research. If interdisciplinary research is to flourish in
an engine that is commonly applied in problems that are academia, then the reward systems in academia have to
beyond the scope of one discipline. It is an effective way of recognize the different pace with which interdisciplinary
solving problems. It can either be done within the university research may proceed and the fact that it is often a team rather
or extended to organizational boundary to incorporate other than individual accomplishment. There also is a need for
bodies. This approach demands that teams be created, where flexible organizational structures that can operate across
there searchers from different disciplines are included.
discipline-focused departments. Directed institutes and PhD programs need to consider the benefits of broader
centers with seed funding can encourage interdisciplinary exposure. Lowering the barriers to students moving between
research. But more fundamental advances may emerge from institutions and even disciplines could have great benefits for
creating a body of scholarly work that establishes common our ability to train the next generation of interdisciplinary
languages and frameworks in specific areas and examines researchers and researchers who are facile at participating in
what makes successful interdisciplinary research. interdisciplinary teaming. We need to recognize the benefits
Funding agencies also encounter difficulties in facilitating for students who gain training in one discipline to be able to
interdisciplinary research, and must find creative mechanisms acquire training in another – and enable it to happen.

 Peer review systems that depend heavily on experts from

for overcome barriers, such as:
II.The potential for interdisciplinary research ultimately
single disciplines, and the reality that interdisciplinary peer hinges on the extent to which individuals want to engage in it,
and equally importantly if they have the opportunity to do so.
 The extra time needed for interdisciplinary teams to learn
review panels are not easy to assemble and operate.
Academia, national laboratories, and industry can create the
develop a common language and framework for study is opportunities and incentives to attract our best and brightest to
an impediment in a competitive system that is research this frontier. The individual interdisciplinary researcher is
likely to be a relatively rare bird, and it will be the teams of
 How do we set performance goals for evaluating an
output driven.
researchers that are more the norm for advancing
interdisciplinary research. Research teams are in themselves
 Interdisciplinary research is likely to be expensive;
interdisciplinary research program.
modestly complex social entities and in their 2004 study
multiple chief investigators have to come together with entitled Facilitating Interdisciplinary Research, a panel of the
US National Academy of Sciences found that they were
 Supporting interdisciplinary research requires an increased
disparate capabilities.
limited by the lack of a body of peer reviewed research in the
social sciences that “elucidated the complex social and
 It is often the case that when an agency puts out a call for
tolerance of risk.
intellectual processes that make for successful
an interdisciplinary program, pressure is felt from all sides interdisciplinary research.” While we have made some strides
to over-promise and under-budget, leading to the in thinking about the role of flexible structures and funding
inevitable problem of under-performance. incentives to facilitate multidisciplinary teams coming
Benchmarking the mechanisms by which successful together for a problem focused effort or an area study, there is
interdisciplinary programs have been supported is essential to a need for social scientists to grapple with the more
ensuring the most return for investment in this challenging fundamental aspects of what facilitates successful
area. Looking at home and abroad at the results of using interdisciplinary research; that is what enables high
problem focused calls, seed funding, sustained funding over a performance teams breaking down the barriers of language
longer term, targeted fellowships, etc. is essential for future and culture and create knowledge that drives innovation [18].
planning.
B. Inventions and innovations at university level
c. Internationalization Universities are the bases for training human talent, and also
I. Training researchers to work at the interfaces of the the source from which new knowledge, new thinking and new
disciplines; inventions are disseminated from. In most cases the role of
Training researchers who can transcend the barriers that innovation in universities has been neglected. This has led to
exist between the disciplines require innovation in teaching poor performance in economy especially in developing
and learning. In the University setting, our training programs nations. With the new era of knowledge economies this era
largely focus on in depth training in a discipline or a set of can be corrected by:
closely related sub-disciplines. To develop the pool of 1. Training students in innovation and entrepreneurship
researchers who are best prepared for interdisciplinary 2. Establishment of university science parks and invention
research, we need undergraduate programs that provide depth hubs to encourage inventions and innovations among the
in the major discipline(s) while also enabling students to students and teachers and set high-tech enterprises. This is
participate in interdisciplinary courses and be exposed to primarily because;
research experiences that transcend the discipline of their (a) Universities are the source of talent, technology,
major. information, research laboratories and a cultural
The earlier in our training that we are exposed to different atmosphere, and because of that they have great strength
languages and methodologies, the better we are able to in terms of invention and innovation.
understand the potential contributions that may come from (b) It has been proven that multiple sources of investment,
outside our discipline. The better we are able to formulate including venture capital and policy guidance and
complex questions and then integrate data, ideas, and assistance, will make it possible to set up the science
perspectives as we seek answers. parks near the universities so that they can engage in
 technological innovation and enterprise incubation. This engineering educated employees. Every 140 out of 10000
will further help to promote the potential of universities, employees in Israel are qualified engineers, compared to only
create some technological innovation bases, incubation half the number, 70, in the US and 65 in Japan. Every year
bases for high-tech enterprises and bases for china produces 600,000 engineers and India produces 450,000
technological innovators and encourage high technology engineers. In comparison the US produces 70,000 engineers.
expansion. Several global corporations are taking the logical step of

 General Electric (GE) has set up a R&D laboratory, the

3. Encouraging the combination of industry, universities and broad-basing their innovation efforts:
research; strengthening the relationship between universities
and enterprises (university-industry relationship) largest R&D center of its kind in the US, Bangalore and
University-industry relationship is not a new phenomenon. over 1000 GE research works on leading edge solutions
Germany was the pioneering country where the university-
 Microsoft has established R&D facilities in china and
out of this facility.
industry relationship helped create the pharmaceutical
industry in the early 19th century. The universities should take India. In fact, Microsoft’s R$D in India are second only
an active role in developing and fostering university-industry to Redmond. The India center works over 50 of its
collaboration. There are many mutual benefits to a close products including the vista product development

 Firms gain access to not only leading edge technologies,

relationship between an industrial firm and a university; initiative. It is also believed that the company filed over

 Likewise, Oracle was one of the first companies to set up

150 patents for work done from its India centers.
but also highly trained students, professors and
university facilities. A firm can gain prestige and a development center in India. Today, Oracle’s strength
acceptance in its stakeholder community through its
 Cisco plans to invest $1B in India in the next few years,
in India is largest after Belmont, its US headquarters.

 Universities can augment their funding sources by

association with a prestigious university.

 Indian units of US firms such as cisco systems, General

of which about three quarters will be allocated to R$D.
working with the industry. This has become an
increasingly important consideration in most countries as Electric, IBM, Intel, Motorola and Texas instruments
public level of funding for higher education has become filled over 1000 patent in the year 2004 alone.
scarce. Costs of operation of higher learning institutions And that is not all. Did you know that the Centrino chip was
have outpaced the other indices of price increase. created out of Intel’s Haifa unit in Israel? And that over
University administration feels the pressure to 35,000 people work in R&D (Research and Development)
supplement their funding by various means, one of centers of global corporation in Israel?

 Working with the industry provides other pedagogical

which is of course sponsored research. Another related point, talking of talent, is the favourable
demographic profile of, say, India’s population. While in the
and academic value to the students and faculty. Faculty US a large chunk of the population will soon comprise of
and students can keep up with the practical problems and older people, including retirees, countries like India with a
gain access to knowledge developed outside the growing, youthful population, have a distinct advantage [20](
academe. This is particularly very important in many pg. 2-3).
emerging fields where academic research and publication It is therefore important to note the most important aspects of

 Technology transfer is generally based on the

usually lags the industry. talent as; technically qualified talent, quality education-
especially in natural sciences, and extensive application of
collaborative research with the industry [19]. research.

VI. INNOVATION HUBS b. Capital is ubiquitous

In fact, in an increasingly flat world, the geography of The concept of venture capital and angel investors is a vital
innovation is changing. As John kao, innovation consultant backup to any innovation hub. The concept of venture capital
argues in his recent book, “Innovation Nation: how America is started in the US but is taking o globalization turn to the
losing its innovation Edge, Why it matters and what we can emerging innovation hubs. For instance, have realized the
Do to Get it Back”, all the key advantages once enjoyed by potential of emerging hubs such as Israel, china and India, and
the U.S are disappearing. While in the 20th century, leading- have set u funds to cater to start-ups in these regions. At last
edge thinking emanated from the “west”, today, the rise of count, Israel has more than 2000 thriving tech start-ups of
Asia is evening that out. these, 462 raised $1.76 B from local and foreign investors in
What are some of the drivers of globalization of innovation? 2007 (21st century innovation hubs, pg. 3)
a. Talent is ubiquitous China and India have also proven high returns from venture-
It is now a well-documented fact that India has the largest backed initiatives. With proper policies and innovation
pool of English-speaking, technically trained manpower. ecosystem, capital is no longer an impediment to innovation.
China is doing all that it can to make its educated class
literate. Israel interestingly, has the largest per capita
 c. The innovation ecosystem is ubiquitous development of a continuum of training opportunities [2], Inc.
pg.79, www). To promote university-industrial relations, the
government ministries should first begin by working
collaboratively.
It is important to note that a good legal framework can boost
research and innovations, create a good environment for
foreign investors, venture capitalists and angel investors and
enable commercialization of new innovations.

VII. INNOVATION IN THE MODERN ECONOMIES

Two heads are better than one in recent times innovation

draws heavily from contextualized crowdsourcing practices.
Crowdsourcing as a method of open innovation is gaining
recognition as an integral component in the innovation
Figure 1, innovation ecosystem: source; ecosystem systems both at organizational and national levels
http://www.xconomy.com/wordpress/wp- .Aitamurto-Leiponen-Tee in his study, comes across work
content/images/2008/10/diagram2_ecosystem.jpg done by schenk and guittard who provides an alternative
typology of crowd sourcing, distinguishing between
What distinguishes the Silicon Valley from any other integrative and selective crowd sourcing. Integrative crowd
innovation hub, even today, is a well evolved ecosystem to sourcing is primary a tool designed to pool a vast amount of
foster innovation. complementary information from large users. On the other
What are the components of this ecosystem; Start-ups, hand selective crowdsourcing entails identification and
entrepreneurs, technologists, attorneys and big tech companies selection of inputs from competing users. One primary
that are potential buyers, not to mention VCs and angles. objective of crowd sourcing is to collect a heterogeneous pool
More intangible, but as valuable, is the risk taking culture that of knowledge ideas and contextual experience to solve
has been inculcated owing to the tremendous success seen by problems .It is an important component in the innovation
valley entrepreneurs over the years [20]( pg. 4). process since it represents an ideation process. Massachusetts
innovation index developed by Massachusetts technology
d. Demand is ubiquitous collaboration in 1996 sets out idea generation as an important
This is the most important trend charactering any element in the innovation processes. The Massachusetts
innovation hub. For any hub to grow it must think of a wider innovation index was designed to measure the strength of
global market. For instance there are other companies that are regional innovation resources and how well they are being
raising in the upcoming innovation hubs. It is therefore turned to result.
important to diversify products and study market trends in Brabham identifies four types of crowd sourcing:1)
order to survive in the competition. knowledge discovery and management 2) broadcast search 3)
e. Leadership peer vetted creative production4) Distributed human
In a summary of what we have discussed, leadership as far intelligence tasking.
as innovation and technology management emanates from the The pew center on states and National Governor
following sources: Association identifies a framework of innovation, after
• Higher learning institutions assessing a field of research and experience with innovation.
• Think thanks or policy institutes that advice the In this framework, innovation is built by four ingredients:
government and other policy formulating bodies •Expertise-new discoveries, new knowledge, and new insight
• The government. from people who are given the resources necessary.
To make a country’s leadership to be effective in the •Interaction-face to face is still important for exchange of
development and coordination of the academia, trade and ideas and synergies that create new business model, marketing
industrialization, collaboration has to come in. Nationally plans and models
negotiated agreements and ongoing collaboration between •Diversity-ideas will only get better when they are openly
central, regional and local governments in implementation is discussed and considered by a mix of people with a variety of
needed. In some countries including Germany and the research, background s approached and mind set
republic of Korea, coordination has been promoted by •Application-ideas are useless unless used. The true proof
merging the departments responsible for education and values is in commercialization
training. In contrast, many developing countries, many
ministries including industrial-specific ministries, oversee,
manage, and finance training. Competition in these countries
prevents collaboration, promotion of high-quality training, and
 Figure 2 Massachusetts innovation index: Source; collaborative economics, 2008

Figure 3open vs. closed innovation logic: Source; Henry W. chesbrough, open innovation: The New Imperative for creating and
profiting from technology (Cambridge: Harvard business school press, 2003)

Figure 4 industrial economy vs. idea economy: Source; collaborative economics, joint venture Silicon Valley’s 2006 index of
Silicon Valley
 Figure 5 Innovation framework: Source; The pew center
on states and National Governor Association innovation
framework, 2007
Figure 6 Prototypical U.S. industry: Source; National
Center of education and the economy, tough choices or
tough times

Innovation system heavily draws from all knowledge on their ideas and dream.
management process and its strength depends on the Innovation input in the economic development agenda has
effectiveness of this processes. These in include all process been with due regard to ideas. Ideas have been major
that are involved in the creation, distribution and source of innovation power and idea sourcing mechanisms
application of knowledge. Processes such as research and have taken priority in many managerial committees as an
development are very crucial in any organizational setting innovation management strategy. The emerging global
as far as knowledge creation is concerned. Equally all innovation economy according to the area council
processes such as outsourcing and collaboration sachems; economic institute (2008) is driven by ideas and is different
that are intended to facilitate easy sharing of knowledge not from industrial economy of the past. The recent study on
be neglected either. Leadership style that is characterized innovation shows close relationship between innovation
with enabling and friendly atmosphere is necessary for an and economic growth. This implies that to compete,
innovation system to strive [11]. The role leadership is to regions and organizations as well as universities must be a
create an atmosphere that is friendly and enabling climate well spring of ideas to drive innovation in the global market
to support entirely the innovation processes. Survey place
conducted by Baylor university revels that institutions that
enjoy favorable organizational climate have sizeable and VIII. CONCLUSION
direct impact on the development of new inventions and On account of the above study, it is thus vital for the
patents. This view is reinforced by [12], who argue that the Kenyan university and the Kenyan government at large to
organizational climate is the key factor of explaining the
 Implement lifelong learning model to ensure that the
implement the following:
innovation capacity of firm. Leadership is the determining
factor of any organization climate. Leadership plays an Kenyan workforce is acquainted with the latest
important role of establishing a climate for innovation and developments in technology and new skills in the
the climate also influences organizational behavior.
 Expose students to research at interfaces of multiple
workers’ fields of specialization.
Research attests that one way of achieving a strong
innovation climate is through leaders’ behavior [21], [22].
 The government and universities to increase their
disciplines as early as in undergraduate level.
Therefore climate plays an intervening role between
varieties of influences that affect innovation. It is
expenditures on research and development to promote
leadership that coordinates and implement innovation.
 Universities should partner with the industries to acquit
maximum outcomes from research.
Studies revels that innovation climate is associated with
strategic leadership (Nystrom, 1990). Specifically leaders
their students with industrial practical skills and enhance
foster innovation by creating a climate open to creativity
 Universities should create a conducive innovation climate
their students’ creativity and stimulate innovations.
and supportive of differences and also supportive of risk
taking [23]. Thus, the important way to impact innovation
through schemes of crowdsourcing as a way of fostering
is by manipulating leadership behavior [24]. Innovation
 The government should formulate policies favoring
open innovations.
according to W. Arthur Porter is the pivotal moment when
talented and motivated people seek the opportunity to act
 venture capitalist to enhance commercialization of
innovations.
A conclusion section is required to review the main
points of the paper, do not replicate the abstract as the
conclusion. A conclusion might elaborate on the
importance of the work or suggest applications and
extensions.

IX. ACKNOWLEDGEMENT
I take this chance to express my gratitude to the
organizers of this occasion as a way of transforming Kenya
positively. I also acknowledge the support of my university
to ensure that I am part and parcel of this auspicious event.

REFERENCES
[1] DTI competitive white paper 1998
[2] Technologia, January-March© knowledge enterprise, Inc pg. 77
[3] The four pillars of a knowledge economy
[4] [4]“Private Company Knowledge Bank”.
http://www.privco.com/knowledgebank/private-equity-and-venture-
capital
[5] “Venture Impact: The Economic Importance of Venture Backed
Companies to the US Economy”. Nvca.org.
http://www.nvca.org/index.php?option=com_content&view=article&
id=225Itemind=103
[6] Developing a Venture Capital Industry by Thomas Hellmann
February 2000, pg.7
[7] Corporate Pension Investments in Alternative assets: Determinants
and Consequences, September 2011
[8] (Driving Innovation and Job Growth through the Life Sciences
Industry,JEC, May 25, 2011
[9] Quinn, James Brian , 2000 “ outsourcing innovation: The new engine
of Growth” sloan management Review summer:13-28
[10] The role of universities in innovation systems and regional
economies, October 2006, pg.2
[11] Baylor university, 2011, July 7
[12] Amabile 1996-Creativity in Context: Update to the Social
Psychology of Creativity; Kanter 1983- The change masters:
Innovations for productivity in the American corporation
[13] Journal of research policy, June 29, 2011.
[14] Smilor, Raymond W, Glenn B. Dietrich &, David V. Gibson (1993)
“The Entrepreneurial university: The role of higher education in the
United States in technology commercialisation and economic
development” international social sciences journal 45: 1-12.
[15] www.oecd.org/sti/frascatimanual
[16] (Economic Impact of Enhanced Access to Research, July 2006).
[17] National Academy of Sciences, National Academy of Engineering,
and Institute Medicine. (2004) Facilitating Interdisciplinary
Research, Washington DC, National Academies Press.
[18] David Easton (1991) The Division, Integration, and Transfer of
Knowledge, Bulletin of the American Academy of Arts and Sciences,
Vol 44, No 4, pp 8-27, American Academy of Arts and Sciences.
[19] Santoro, Michael D. & Alok K. Chakrabarti (2002) “Firm Size and
technology centrality in industry-university interactions” Research
policy 31: 1163-1180
[20] 21st Century innovation Hubs, www.prayag.com.
[21] Nysrom 1990, Vertical exchanges and organizational commitments
of American business managers
[22] Scott$ Bruce, 1994, Impacting Climate for Innovation: Can CEOs
Make a Difference?- Rice university
[23] [[23] Harold R, McAlindon, 2004, Innovation Climate -
EDUCAUSE.edu
[24] Stephanie Kazama, Jessica foster and Michael Hebl; Michael west
and Jeremy Dawson, 2002- impacting climate for innovation- Rice
university.-K. Chen, Linear Networks and Systems (Book style).
Belmont, CA: Wadsworth, 1993, pp. 123–135.