Technology Market Scan
INTERNATIONAL
ITU signs MoU on e-business

  The International Telecommunication Union (ITU) signed a Memorandum of Understanding on electronic business, which had earlier been signed by three leading international standard setting organizations. The three original signatories are ISO, the International Electro chemical Commission (IEC) and the UN Economic Commission for Europe (UN/ECE). In addition to these four signatories, two other parties, Continuous Acquisition and Lifecycle Support (CALS) International and NATO participate as registered international user groups in implementation of the MoU.
The MoU establishes a coordination mechanism under a unique cooperative model, to produce mutually supportive standards required in business transactions (data interchange and interoperability) as well as product design and manufacturing to meet the urgent needs of both industry and end users. Electronic business covers information definition and exchange requirements within and between enterprises, including customers. Providing as it does a vital framework fore commerce, this MoU is expected to support this rapidly changing and growing business sector.
Under the MoU, the four organizations undertake to review their standardization activities and to develop a joint, coordinated program for standards development and publication which will benefit the marketplace.
The MoU is open to other international regional, governmental, industry and consumer organization whose core mission involves setting standards.
ISO Bulletin

ASIA-PACIFIC
CHINA
BANK offers finance for hi-tech transfers

  The Shanghai based Pudong Development Bank will provide 600 million yuan (about US$ 72 million) in credit loans to promote high technology transfers. Under an agreement signed recently, the loans will be granted to technology transfer project designated by the Shanghai New Hi-tech Service Center, and by members of the Shanghai Technology Stock Exchange.

  The bank, with subsidiaries across China, will help the center to expand its influence, said one senior bank official.

  To date, the center has helped more than 570 high technology innovations to come out of the labs and onto the market, and they are expected to generate an output value of over 20 billion yuan. The center, known as "a match maker for science and technology", has branches in Shenyang, Shenzhen, Zhenzhou, and other major cities in China.
http://www.asia-links.com/scripts/postnews/article/asp?newsid=6303

National network for EST transfer

  After more than a year of full operation, the Center for Environmentally Sound Technology Transfer (CESTT) is now in a position to disseminate its information, technical and financial services to a large number of small and medium sized enterprises (SMEs). In recognition of the enormous diversity in needs and geographic distances, CESTT has framed its long term strategy for forming a national network for EST transfer through development of six regional centres in Tianjin, Shanghai, Guangzhou, Chengdu, Wuhan and Xi'an.

  From March 2000, CESTT will launch this ambitious blueprint for the network by starting up the Tianjin and Chengdu regional centres with technical assistance from the Asian Development Bank.

  Under the coordination f the Sichuan Provincial Commission of Science and Technology, CESTT will unite the Environmental Technology Institute of China's Academy of Engineering Physics, Sichuan University, with the Wuhai Environment Protection Co. Ltd. To develop the Southwestern Center for Environmentally Sound Technology Transfer in Chengdu City, Sichuan province. The Southwestern center aims at assisting SMEs in the Sichuan, Yunnan, Guizhou Provinces and the Chongqing Municipality in enhancing their competitiveness and environmental performance by applying clean technology. This regional center will build upon strong technological fields such as flue gas desulphurization as well as integrated municipal solid waste management.

  In order to provide service more effectively to SMEs in northern China, CESTT will collaborate, under the coordination of the Tianjin Municipal Commission of Science and Technology, with the Tianjin Academy of Environmental Sciences, Tianjin University, Nankai University and Tianjin Science and Technology Consulting Company, to establish the Northern Center for Environmentally Sound Technology Transfer. This regional center is designed to better serve the needs of SMEs in the Tianjin Municipality and the Shandong, Hebei, Liaoning and Shanxi Provinces. It will become a center of excellence in the areas of industrial and municipal wastewater treatment reuse and industrial water conservation.

  A common feature of the two regional centres is that they combine the strengths of technology development institutes, universities and environmental companies. This open and collaborative institutional arrangement will help them act as a bridge among different players for transfer and commercialization of clean technology.
Environmentally Sound Technology in China.

Hi-tech company group formed

  A high-tech enterprise group embracing software, microelectronics and communications has been formed in the Hangzhou High-tech Industrial Development Zone. The zone, which is known as "Silicon Valley" in Hangzhou, capital of East China's Zhejiang Province, has been dedicated to the application of scientific results and incubation of high-tech enterprises. After a decade of effort, the zone has 613 enterprises, including 12 companies with combined annual output surpassing 100 million yuan (US$ 12 million). Last year, the zone's per capita profit ranked third among the country's 53 national high-tech development zones.
The 120 software companies have been identified from among the enterprises in the zone. The application software packages for security brokers developed by the Hangzhou Handsome Scientific and Technological Co. Ltd. Accounted for one third of the country's total. The financial software packages and electronic products developed by the Hangzhou Sunyard System Engineering Co. Ltd. Are used in many provinces and municipalities. The inventory software programs have been utilized by more than 100 inventory companies throughout the country.

  In addition, telecommunication enterprises such as the Eastcom Communications Co. Ltd. And the UT Starcom (Hangzhou) Communications Co. Ltd. Have played an important role in the zone.

  With the introduction of advanced tech nologies, the Eastcom communications Co. Ltd. has promoted the development and technological upgrading in mobile communications and the integration of photo, mechanical and electronic technologies. The annual sales volume has exceeded 6 billion yuan (US$ 722 million), giving it the 13th rank among the country's top 100 electronic companies.

  The high-tech zone has been supported by a bounty of human resources. Sixteen universities and colleges and nine national key laboratories in the city have offered scientific and technological results and projects for enterprises in the zone.

  Although state enterprises play a vital role in the zone's economic development, private enterprises, foreign funded companies, and enterprises set up by students returning from abroad out number the State companies.

  The Hangzhou Shilan (Youwang) Company has injected 10 per cent of its annual sales into product research and development. It has become one of the country's largest integrated circuit design companies.

  The company solely focuses on development and marketing of the products. It has quickly expanded production through cooperation with other companies, such as renting their production lines. Last year, the sales exceeded 250 million yuan (US$ 30 million) and US$ 10 million worth of products were exported to other countries.
News from China

Industrialization of research results

  The first industrialization base for research results of the National 863 Program was officially put into operation on 26 February 2000 in Shenzhen. This is a new initiative after a 14 year implementation of the National 863 Program.

  Li Xueyong, Vice Minister of Science and Technology, said the Government has made a new plan for accelerating the industrialization process of high level research results while steadily promoting the implementation of Phase II 863 project. It is planned to select 16 enterprises in the country to be industrial alizarin bases for National 863 research results, and Shenzhen Kexing Bioproducts Co. Ltd. Is the first one.

  Located in the so called Biological Valley in Shenzhen, Kexing is the largest High-tech company manufacturing biological products in the country. Jointly operated by Weiming Biological Group of Peking University and US Handing Asia and Pacific Venture in vestment Fund, its new product Sairuo-jin interferon is the first industrialized biological product in China's 863 Program and also the first genetic engineering drug approved by the Ministry of Health for its mass production.

  It is reported that, after being named as an industrialization base for 863 research results, Kexing is planning to expand its business by constructing a so called its business by constructing a so called Shenzhen Peking University Biological Valley on similar lines. With its major products centered around hot genetically engineered products such as interferon, insulin, sinalbin 2 and sinalbin 11 and human growth hormone, the new biological valley expects to in vest Rmb 300 million for its Phase 1 project out of its total investment of Rmb 700 million

INDIA
Small sector credit guarantee scheme

  The Rs. 1.25 billion (US$ 28.5 million) Credit Guarantee Scheme for Small Scale Industries will become operational within the next two months, once the autonomous trust to manage the corpus is formed, a senior official of the Ministry of Small Scale Industries and Agora and Rural Industries says.

  "The trust, which will be registered under the Indian Trust Act, will be headed by the Chairman, Small Industries Development Bank of India (SIDBI), and become operational in the next sixty days", Mr. D. P. Bagchi, Secretary of the Ministry said.

  The trust will be professionally managed and will have the Additional Secretary and Development Commissioner of the SSI Ministry, and an Executive Director of the Reserve Bank of India as its members, he said, adding that specialists in the field of insurance and credit would also be made members of the trust. The fund will augment itself as income will flow from the guarantee fee of 2.5 per cent of the loan up front and an annual service fee of 1 per cent of the loan outstanding at the end of each year, Bagchi said.

  As loans disbursed would have a lock in period of 24 months, the initial fund corpus of Rs, 1.25 billion would be in vested, he said, but a final decision on this would be taken by the trust.

http://www.asia-links.com/scripts/ponstnews/article.asp?newsid=6317

Technology fund for SSI

  Small Industry Development Bank of India (SIDBI) has created a Technology Development and Modernization Fund for small scale India or abroad. SIDBI offers soft loan support to SSI units at the prime lending rate of the bank, besides offering support for undertaking studies, surveys and promotion activities for the benefit of SSI units, especially those operating in clusters.

  Further, industry associations interested in getting internet connections and hosting websites for their members. Who should be predominantly SSI units, will be extended grant support of up to 50 per cent of the cost of any project exceeding Rs. 30000 per association. This scheme will be available to the first 50 associations. These initiatives would help SSI units link up with the Web, and thus source the latest technology, and scout for markets across the globe.
Quality Times

MALAYSIA
Joint Venture for investment fund

  Malaysian Technology Development Corporation (MTDC) and Gemrusa Capital Sdn Bhd signed a memorandum of understanding to set up a joint venture (JV) company to manage a Malaysian investment fund.
The JV will promote and organize the investment fund, which is targeted for launch in Malaysia and its surrounding regions with an initial fund size of RM 100 million. This initial fund would serve as a platform to raise a further larger proposed fund targeted at international investors for the purpose of investment in Malaysia and the ASEAN region.

  For further information on the investment fund, please contact:
En Badrul Hisham Jaafar
Malaysian Technology Development
Corporation
Malaysian Technology Center
University Research Park

43400 Serdang, Selangor, Malaysia
Tel: (+60-3)89412000; Fax: (+60-3)89411100

http://www.mtdc.com.my/wn/news/n0032.html

MTDC Iaunches technology index

  Malaysian Technology Development Corporation (MTDC) Iaunched a stock index called the MTDC Technology Index, which solely measures the performance of technology stocks in Malaysia.

  The index allows investors to observe movements of technology stocks in the market as compared to industrial production, changes in money supply and corporate profits. At the same time, in vestors can study the rates of return of the index as it progresses to help judge their investment portfolio.

MTDC, as a government agency in charge of overseeing technological development in Malaysia, believes it is appropriate that a technology index be formed as a benchmark for all technology companies.

  The MTDC Technology Index starts with 30 technology based companies listed on the Kuala Lumpur Stock Exchange (KLSE) and Malaysian Exchange of Securities Dealing & Automated Quotation (MESDAQ). MTDC has narrowed down the definition of "technology" for the purpose of the index to 11 technology related sectors as follows:
Advanced electronics:
゛Information and communications
゛Equipment and instrumentation, automation and flexible manufacturing systems;
Biotechnology, bioconversion and genetic engineering;
Electro optics, non linear optics and optoelectronics;
Advanced materials
Energy sources
Aerospace;
Transportation
Services; and
Emerging technologies

  An advisory panel comprising corporate leaders and academicians has been set up to monitor the index.

  The base period for the MTDC Technology Index was set at 30 April 1999, the day the MESDAQ was launched. The index and its components will be revised half-yearly to ensure that it conforms to market changes.

  MTDC Technology Index is carried live by BERNAMA and will be linked to MTDC and MTDC Capital & Technology Research Sdn Bhd's websites. MTDC is negotiating with local print media to publish the index on a daily basis.

For further information, please contact:
Mr. En Nordin Mohamad Desa
CEO and Executive Director
MTDC Capital & Technology Research
Tel: (+603)89412000 or 4608700
Fax: (+603)89412200
http://www.mtdc.com.my/wn/news/n0027.htm

PHILIPPINES
Renewable energy investments

  Philippines Energy Secretary Mario Tiaoqui recently changed energy regulations to catalyze renewable energy market development in the Philippines. These changes aim to use renewable energy to enhance economic growth and alleviate poverty, while reducing oil imports and protecting the environment.
The changes were based on a set of recommendations developed with help from the U. S. Department of Energy's National Renewable Energy Laboratory (NREL) through its Philippines Renewable Energy Project funded by the U. S. Agency for International Development at Manila, and the Interagency Technology Cooperation Agreement Pilot Project of USAID, USDOE, and USEPA to promote clean energy markets in developing economies.

  In the past, many private companies refrained from pursuing renewable energy projects in the country because of the costs imposed by existing regulations the same regulations that applied of fossil fuel plants. The new policy changes eliminate many prohibitive regulations and make renewable energy more attractive to private investment and international donor communities.
Policy revisions include eliminating certain requirements for providing back up reserves by operators of renewable resource facilities, removing obstacles to biomass co generation facilities, and streamlining approvals processes for small hydroelectric facilities. The recommendation were developed in consultation with the private sector and Preferred Energy Inc.

  A mountainous country of more than 7000 islands, the Philippines is an excellent candidate for using renewable energy systems that tap energy from the sun, wind and moving water.
http://www.nrel.gov/hot-stuff/press/1000_philippines.html

SINGAPORE
Technology
Investment fund


  The new iAsia Alliance Capital private equity investment fund was unveiled recently by top executives of two prestigious organzations; warburg Pincus and Singapore's National Science and Technology Board (NSTB). The fund will foster an environment in which Singapore develops its role as a regional hub for entrepreneurial Intellectual Property (IP) based technology businesses and as a magnet for global entities to base their regional headquarters.

  Warburg Pincus, the global private equity investment leader, will work closely with NSTB to identity and promote the development of IP based technology businesses in Singapore and through out the Asia Pacific region. In addition, they will provide additional support to nurture appropriate companies for further funding.

  The formation of Asia Alliance Capital was announced at a media briefing in Singapore by Mr. John Vogelstein, President of Warburg Pincus & Co, and Mr. Teo Ming Kian, Chairman of the NSTB. Capitalized at S$ 43 million fund (US$ 25 million), iAsia Alliance Capital will focus on seed and early stage start ups in the areas of software technology, wire less communications, e-commerce and IT services. Its geographical coverage will be the Asia Pacific region, with strong linkages to Singapore. The investment size per company is expected to be in the range of US$ 0.5 to 2.5 million.
Warburg Pincus brings to this partner ship more than 30 years of experience and a track record in serving as a strategic financial partner to more than 350 teams of operating executives engaged in building durable and competitively successful businesses around the world. Warburg Pincus maintains a distinctively long term and active investment style, deep expertise in key industry sectors including financial services, media and communications, healthcare and information technology and a proprietary global network made possible by its established geographical presence in North America. Competitive conditions in all of these sectors and geographies are in the accelerating use of information technology, which is most acutely manifested today in the proliferation of the internet as an interactive medium for distributing information and executing transactions. Warburg Pincus participation in this fund does not conflict with its general investment activities in the information technology space, which typically involve investments of a larger size.

  The National Science & Technology Board (NSTB) is the lead government agency providing focus and direction to Singapore's "technopreneurship" drive and is spearheading the nation's capability development. Participation in iAsia Alliance Capital is consistent with one of NSTB's main goals: to promote and develop a technopreneurial environment in Singapore which will lead to a vibrant and thriving sector of high growth technology oriented companies.

  The investment criteria for iAsia Alliance Capital focusses on companies with strong business fundamentals that intend to address sizeable markets. These companies would have a solid business plan to take a major share of the market, and a strong management team that can execute the plan. The fund will focus exclusively on opportunities that are directly related to or enabled by the information technology industry, with particular emphasis on Internet, wireless communication and E-Com-merce driven companies. Some examples of investment targets include companies providing.
Enabling technologies;
Wireless communications
Application solutions
Outbound and or inbound IT services;
Business to business E-commerce; and
New technologies, services, and business models in IT or IT enabled sectors.

Contact: Frank Pizzurro
Tel: (+65)2779571
H/p: (+65)9794-6410

THAILAND
Financial support for technology developers


  In an attempt to boost Thai technology related businesses, the National Science And Technology Development Agency (NSTDA) has set up a unit to act as a new source of financial support for local technology developers, The unit, called the National Science and Technology Development Agency In vestment Center, or NIC for short, is designed to operate much like a venture capitalist. In order to help them run their businesses, it will enter into joint investment with technology companies that show good potential.

  Established last year after approval from NSTDA's Board of Committees, NIC initially plans joint investment focussing on local software development projects. In addition to local and foreign venture capitalists and private funding sources, NIC will provide an alternative for local software development companies seeking funding support.

  NIC acting director Abhisak Chulya said that in the first year, the Center had set a budget of around Bt 20 million for new joint investment in software project. He said, however, that any NIC supported projects would eventually have to be run commercially. "We will consider providing support or taking a risk in local software research and development projects that will help boost the development of science and technology in the country as a whole. Importantly, those projects must also have potential for commercial use", Abhisak said.
  Under the plan, NIC will invest up to 49per cent in each software project. The amount of each investment will be between Bt 500000 and 1 million. Local technology companies can propose business plans to NIC, incorporating details of business strategy and project prospects for a period of between three and five years. NIC processing time is expected to be around two months. Target groups for NIC include local software development companies, commercial web developers, e-commerce technology related developers, as well as Internet software developers.

  As an investor, Abhisak said NIC would participate in each company's management to help ensure the success of the project. However, NIC may withdraw its investment from any company if it considers the company can be self reliant.

  On the other hand, it a project is successful, it is possible that NIC will further expand its investment in that company through a joint venture (JV) model. In order to create a new JV, a project will have to be approved by NSTDA's capital and revenue sub committee, in addition to the agency's main Board of Committees. Apart from joint investments, NSTDA also has a plan to provide soft loans to local software companies soft loans to local software companies through a company directed Technology Development Program. Bt 80 million is being budgeted this year to support the program.

  Each project seeking a soft loan must not exceed Bt 20 million in value, said NSTDA technical officer Arunsri Sritan-atipol. She added that the agency would consider lending local software companies a maximum of 50 per cent of the total project value. Borrowers will have to pay annual interest at one half of the deposit interest rate, plus 2.25 per cent.

  The soft loans will be 75 per cent funded by the government financial fund, with the remainder coming from financial institutions such as Bangkok Bank, Thai Military Bank, Siam Commercial Bank, the Small Industry Finance Corporation, and the Industrial Finance corporation of Thailand, all of which will join the program.

For more information, contact:
National Science & Technology Development Agency (NSTDA) Yothee Research Building
Ministry of Science 73/1 Rama VI Rd, Rajdhevee
Bangkok 10400, Thailand
Tel: (+662)6448150-99
Fax: (+622)6448027-9
E-mail: info@nstda.or.th
http://www.nstda.or.th/news/news_nstda/feb2000_0.html

EUROPE
Business in the technology market


  The Technology Marketplace web service was launched by CORDIS last year to help industry exploit technological advances generated by European Union research. Though still in its infancy, the service is already attracting huge interest. In January, the service was accessed over 10000 times, and preliminary analysis shows that most users browse the site, seeing several pages at each visit. The Technology Market place is designed to support all FP5 research programs, enablig users to find relevant technologies from all are as of research within a single site. It is aimed at three main types of users:
Commercial companies looking for new products and services;
Public and other organizations looking for the latest social and environmental technologies; and
Scientists and researchers looking for models, tools and ideas for further research.

  The information provided is designed to facilitate follow up research and direct contact with potential joint venture partners, licensors, know how providers, or technical facilities.

  Hosted by CORDIS (the Community Research and Development Information Service), The Technology Marketplace is just one click away from the CORDIS homepage (www.cordis.lu). under interactive Services or directly (at www.cordis.lu/marketplace )

  One of the most exciting features of the Technology Marketplace is the new multimedia format of the technology offers. This will present the most promising new results of shraed cost research and development projects, and will invite enquiries for collaboration and exploitation. Technology offers cover biotechnology and medicine, energy, the environment, information technology and telecommunications, and industrial research.
In the next couple of years, there are plans to extend the Technology Market place as an integrated result service, with information on ongoing and finished projects. Users will be able to access more detailed information than now available on the CORDIS results pages, and information will be updated more frequently. The emphasis in the Technology Marketplace will be on market potential and on innovation with in projects, with links to detailed technical descriptions where necessary.
Innovation & Technology Transfer

Financing innovation

  Dynamic innovation demands an unbroken financing chain, from seed capital to stock market. Euro-NM, Easdaq and AIM, the European stock markets for high growth compaines created in the mid 1990s, now offer a means for venture capital funds to realize a return on their investments in new compaines, and the total amounts invested by European funds have risen sharply, reaching 7 billion in 1998.

  The I-TEC (Innovation and Technology Equity Capital ) pilot scheme aims to increase the proportion of venture capital investment directed to early stage and high technology projects, by strengthening the capacity of the funds to appraise these investment opportunities. The 28 funds now participating in the scheme manage a total of 1.3 billion of which 0.5 billion is earmarked for technologically innovative companies less than three year old. To date, the funds have made 143 investments, worth 135 million, primarily in start up companies in the IT and biotech sectors leading to the creation of over 1500 high quality new jobs.

  FIT (Finance, Innovation, Technology) policy exchange projects support a series of workshops brining together research centres, business incubators and investors to address topics such as guarantee mechanisms, technology ratings and the role of micro financing in research spin-offs. It aims to improve mutual understanding and establish durable links between the world of finance and the innovation and technology community.

Innovation & Technology Transfer

GERMANY
German printing and paper technology


  Manufacturers of machinery, equipment and plants for pre media, printing, post press, paper making, paper finishing and paper converting are some of the most reputed and innovative branches of German machinery and plant manufacturing. In 1998, printing and paper machinery worth DM 15.4 million were manufactured in Germany.

  The most important markets for German printing and paper technology have always been located in western Europe and North America. The member states of the EU alone, the new, domestic market, accounted for 42 per cent of the overall exports. The top buyers are in the USA with a 16 per cent share in 1998, followed by U. K. With 7.3 per cent and France 6.6 per cent. But German suppliers are also successful in the important Asian and Latin American markets and were able to defend their position despite local economic turbulence. Exports to China have markedly in creased, where 5.5 per cent of the German exports make it number four among the top list of import sources. This strong position underlines the role German technology leaders play in the world market.

  Germany holds a major share of export to 24 leading industrial nations, where paper making and paper finishing machinery takes up 24 per cent, paper converting machinery 36 per cent and printing machinery 40 per cent.

  In 1999, India imported German paper and printing machinery worth DM 41.2 million. Which was less than half of the previous year's figures (DM 80.8mil). At the same time, Indian exports of such machinery during 1999 increased from DM 5 million to DM 7.5 million indicating an increase of 50 per cent.
Indo German Economy

NORTH AMERICA
USA
New technology program


  The Electric Power Research Institute (EPRI) recently announced the lunch of its new technology development program. "EPRI Destinations", specifically designed to help program participants meet changing market demands.

  Said EPRI president and CEO, Kurt Yeager, "Technology provides the critical edge for improving productivity, in creasing reliability, reducing costs, and providing greater customer value. It also enables the benefits of increased global electrification, economic expansion, improved health and safety, and better stewardship of our natural resources to accrue to our members and clients".

  Employing a business case approach, the new portfolio is designed to offer technology based business and marketing solutions for EPRI's customers in existing and emerging markets. Customers now have even greater flexibility to choose what works for them: real time application service assistance, problem solving guidelines. Market information, technical fixes, scientific knowledge to support a regulatory requirement or a full scale development effort.

  Mark Gabriel, EPRI's Director of Global Marketing, said, "Participants can choose from more than 100 program areas of business critical technology to build a portfolio that addresses their specific needs. Work in these technical areas is leveraged by collaborative funding and risk sharing, and is enriched by data and experience from across the country".

  Working through EPRI's subsidiary, EPRI Solutions, customers can also fund proprietary R&D or participate in commercialization ventures. EPRI Solutions customizes applications of EPRI technology and offers customers potential for new income streams from licensing fees, royalties, and equity share, EPRI's offerings also include technical services, such as operations trouble shooting and training in inspection tech niques, off the shelf software and manuals, and strategic research.

For more information about EPRI's technology development program. Visit the EPRI Destinations Website, http://www.epri.com/corporate/prod-ucts_services/destinations/2001/index.html
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