Creating institutional breakthroughs for the national innovation ecosystem

Introducing high-tech products at the event connecting technology supply and demand at Hoa Lac High-Tech Park. (Photo: DANG KHOA)

In particular, the science and technology market needs regulations to operate effectively, becoming a real driving force for innovation.

The leading role of the state

The Draft Law on Science, Technology and Innovation states that one of the policies in science, technology and innovation activities is to “develop and perfect the science and technology market; encourage commercialization of research results, technology transfer, and create conditions for enterprises to increase investment in science, technology and innovation”.

This is an important step in affirming the policy, showing that the State not only considers the science and technology market as an inevitable consequence of research, but also a step that needs to be proactively perfected in terms of institutions because the science and technology market is a special market, playing a key role in the national market system, and needs to be designed with its own "rules of the game", transparently to lead economic growth in the high-tech era.

However, many opinions say that the Draft Law needs to design a complete institutional legal corridor for the science and technology market, with specific regulations on intermediary organizations, transaction mechanisms, pricing and digital infrastructure for the market to operate effectively and substantially.

In fact, the State invests thousands of billions of VND in scientific research every year, but the number of technologies brought to market, priced, purchased or applied in practice is still very low. Most research results after acceptance remain in the laboratory because there is no legal mechanism or market to convert them into commercial products.

On the other hand, the nature of the technology market has very different characteristics compared to the normal commodity market, making it impossible for it to form and develop without strategic intervention from the State. This market also faces an imbalance of information, awareness, and qualifications between the supply side (scientists) and the demand side (enterprises), leading to high transaction costs and great risks. In such conditions, the lack of a clear and transparent legal framework makes parties even more hesitant to participate in the market.

Another weakness is that the intermediary organization system of the technology market in Vietnam is still very limited. Although many technology exchanges have been established in Hanoi , Ho Chi Minh City, Da Nang, Hai Phong, etc., according to recent statistics, only about 5% of technology transactions are through exchanges, the rest are bilateral agreements. The reason is that intermediary organizations are not strong enough to fulfill their mission in the market; they are not professional in providing services; and they have not created solid trust for the supply and demand sides. Currently, the new exchanges mainly provide and organize training services, provide information on industrial property, and support the organization of annual events and exhibitions.

With support policies, the State is still scattered and not in a chain. Commercialization funding programs currently only support individual research tasks, lacking post-research support mechanisms to bring products to market. Meanwhile, very few businesses have the capacity and resources to complete their own technology at the laboratory scale, register intellectual property, and assess value. Therefore, a market without an effective post-research stage cannot develop.

The technology market is also a tool to regulate public investment and connect the State-enterprise-research institute. Without the market, the State will not be able to evaluate the effectiveness of research investment, will not know which technology is really in social demand, and will find it more difficult to guide businesses in technological innovation.

The market needs "rules of the game"

To resolve the existing problems and obstacles in the science and technology market, on October 5, 2023, the Prime Minister issued Directive No. 25/CT-TTg on developing a synchronous, effective, modern and integrated science and technology market. Directive 25/CT-TTg aims to develop the science and technology market as a foundation to promote national innovation, with requirements to perfect institutions, build infrastructure and develop intermediary organizations to connect technology supply and demand smoothly.

Next, on December 29, 2023, the Committee on Science, Technology and Environment issued Report No. 1 on the results of monitoring the implementation of policies and laws on the development of the science and technology market in the period of 2018-2022, in which it proposed and recommended that the National Assembly consider comprehensively amending the Law on Science and Technology and the Law on Technology Transfer; for the Government to study and complete the dossier to soon submit to the National Assembly for amendments to the Law on Science and Technology of 2013, including regulations on the development of the science and technology market in the direction of clarifying the scope, subjects, responsibilities and authority in the development of the science and technology market. Resolution 57-NQ/TW also emphasized that institutional improvement, promoting the commercialization of research results, developing science and technology enterprises, venture capital funds, etc. are the core elements of the technology market.

It can be seen that the documents have shown a consistent orientation in building a complete legal framework for the science and technology market.

According to experts, affirming the role of the science and technology market is necessary, but it will not be enough without a clear enforcement mechanism in the Draft Law on Science, Technology and Innovation. For the science and technology market to develop, the legal framework on the science and technology market needs to clearly define the subjects, scope, responsibilities, and authority, form a national technology exchange, invest in a shared platform for science, technology and innovation, etc.

According to Mr. Phan Van Hieu, Chairman of the Board of Directors of CVI Pharmaceutical and Cosmetic Joint Stock Company, to have a market, there must be rules of the game, binding regulations and legalization of the rights and responsibilities of buyers and sellers and market regulators. Therefore, it is necessary to focus on improving information in the technology market; training qualified administrators and appraisers; ensuring the rapid issuance of patents and geographical indications; and promptly issuing national technical standards for innovative products.

Associate Professor, Dr. Phan Tien Dung, Head of the Department of Technology Application and Deployment (Vietnam Academy of Science and Technology) said that the Draft Law on Science, Technology and Innovation needs to specify Resolution 57-NQ/TW on facilitating scientists to transfer research results. The law and implementing documents need to encourage the transfer of technology from research institutes to society for use, thereby creating jobs and promoting socio-economic development. Without a technology market, scientists will not be able to sell their products and will only focus on basic research, while the country needs breakthrough applied research to quickly put into production and business.

According to HA LINH/Nhan Dan Newspaper

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