Sustainable Economic Development Based on Technological Innovation Fernanda Hellen Mansano, Leonardo da Costa Urt and Marcelo Farid Pereira Abstract: The society development is increasingly related to the capacity of such society to generate innovation in several segments, mainly in the entrepreneurial area where competition is getting fiercer. Thus it becomes essential to creating technological development system that extends from basic research to the use of all technological developments by companies and society. Than conducting the innovation process in a systemic way. The Brazilian universities have a wealth of research that can be transferred to the productive sector. However, these have few mechanisms that foster the transfer to companies. Technological Incubators are environments that encourage and facilitate this process and result in innovative products, services and processes. This is because they are close to universities and research centers and still manage to make the dialogue between companies and academy. Thus, a study was developed to evaluate which type of innovation the resident enterprises of Maringa´s Technological Incubator are providing to the society and if there is a partnership with the academy. The methodology includes a literature review and a questionnaire to residents companies. Aiming to analyze it is occurring technology transfer, innovation and partnerships with the academy. The preliminary results point to the facilitation in the innovation process and interaction with the academy. Also was observed that there is an improvement in the competitiveness of local companies through the use of new technologies. Keywords: Innovation, sustainable economic, incubators, technology transfer, universities interaction, companies development. 1. Introduction Technological innovation is a tool for sustainable economic development and is increasingly together with gains in efficiency and competitiveness. Joseph A. Schumpeter (1883-1950) was the precursor in analysis of the technical advance’s development and its effects on the economy, contributing significantly to a better understanding of economic development and its progress over time. Innovation does not come spontaneously, it must have investment in research and development to ensure that it occurs. Currently, in neo-shumpeterian studies, innovation is the result of interaction between universities, government and private companies, known as triple helix. The subject of the article refers to some of the different aspects that constitute economic development based on technological innovation, as technology transfer, innovation process, innovation indicators, the interrelationship between university, government and the productive environment and the mechanisms used by universities as technology incubators. This subject was chosen because there is still a bottleneck between the academic and productive environment, and the objective, therefore, is to show the importance of mechanisms like the Technology Incubator in the process of technology transfer. Thus, this paper is to show a theoretical-conceptual review which consecutively discusses about: The economic development generated by innovation, innovation and technology transfer and the triple helix and incubators. The objective is observe if occur the partnership between companies resident in the Technology Incubator of Maringá, university and society, and if it is occurring technology transfer and 176 innovative products. In this way, the article was distributed in seven chapters beginning with the introduction, three chapters of literature review, a chapter that describes the methodology utilized, a chapter devoted to the results presentation and, finally, a chapter contend the main conclusions. 2. Economic Development In developed countries, innovation is used as a tool for increasing the competitiveness and it is already a reality in almost all sectors, especially in agriculture and in the consumer goods industries. The value of products and services depends of the ability to transform information into knowledge, using an increasing percentage of technological innovation. The improvement of the technologies is important because increased value and reflect benefits to society. According Pierry (2011), a society’s wealth is related to its ability to generate training and empowerment of people. Thus, it is important to point the technological development, where of the trajectory starts from the base´s research to reach the productive environment. Technological innovation is responsible for breaking and improves production techniques, which can generate better competitiveness, improving machinery and equipment, increasing the productivity of labor and the growth of product and employment. According to Castro (2006), knowledge needs to have a central role in economic development, becoming a main factor in the innovation and in the increased competitiveness. Education institutions are paramount on new technologies’ development, because they act as a mechanism that facilitate technology transfer, which in turn, asserts itself as a crucial element for economic development and the progress, both more or less developed countries (Samili, 1985 apud Marques, 1999, p7). Many academics and universities have already engage in decidedly entrepreneurial action, building companies with innovative ideas and inventions of their own laboratories or in the form of incubators, inviting companies into the universities. This creates a cycle of innovation and development. Within the productive sector, innovation is important since it allows the industry accessing new markets, increasing revenues, realize and improving partnerships, obtaining new knowledge and adding even more value to their brands. Ascending the level of analysis, innovation allows increasing the level of employment and income, promoting economic growth and development. Therefore, technological innovation and its transfer are crucial factors for economic development, as it brings gains in competitiveness, improving productivity and employment and, consequently generating wealth for the economy. 3. Transference of Technology The process of innovation is characterized by the transference of knowledge among the agents. According to Shumpeter (1982 apud Fayet 2010), the term innovation was adopted to promote an interaction between the productive sector and the research and knowledge fields. According to Ribeiro (2001), innovation in general corresponds to the “introduction of a new knowledge or new combinations of existent knowledge. The technological innovation, in turn, refers to new products and/or production processes and improvements in existing products and/or processes”. Joseph Schumpeter considers that the innovation creates a rupture in the economic system, inside the companies, revolutionizing the productive structures and creating sources of differentiation to the companies (KUPFER, 2002 apud SCHUMPETER.1912). In order to measure the effect of the innovation in the economy, it’s necessary to evaluate several related subjects quantitatively. One of them is the technological invention, measured by the number of records of patents. To describe the innovation process, various indexes were created, but due to asymmetric information (indexes were done by using some proxys) indexes composed by several indicators were created, according to what was discussed in Furtado and Queiroz. The construction of these innovation indicators is subdivided in input and product indicators. The input indicators, according to the authors, 177 correspond to costs in research andd developmennt. Accordingg to OCDE, thhese activities include the basic research, the applied research r and the experim mental developpment. The product p indiccators are, inn turn, difficult to t measure, because b by having h as reeference the products andd services in developmennt and commerciialized, the on nly indicator that t testifies if i there actuallly is an innovvation is the deposit d and reegistry of patent. The technnological transsference has become b a dettermining facttor to the economic develoopment and has h not only caugght the academ micians’ attention, but alsso from goveernmental ageents and busiinessmen. Beessand and Rushh (1993 apud d França, 20001) define trransference of o technologyy as a groupp of processees and activities in which tecchnology is passed p from one o user to another, a incoorporated in new n processees and products, or disembodiied in shapes such as know wledge, skills and legal rights. This wayy, the technoloogical transferennce process caan be understtood as a trannsfer of intelleectual propertty, where the results comee from applied reesearches and d experimenttal developm ments perform med by an edducation/research institutiion or companiess, to the indu ustrial and coommercial secctors. The exchange of infformation bettween these agents a makes technological in nnovation andd ideas be bornn. 4. Triplle Helix an nd the Incubators The interaaction betweeen university, government,, and industryy, is a theme that can be based b on studies by Henry Etzzkowitz, one of the authors who have excelled e in the production of this themee. According to the author, as known triplee helix or tripple helix, it iss the model inn which eachh environmentt is affected by b the other. Figure 1 - Triple T Helix Model M of Univeersity-Industtry –Governm ment relation ns Souurce: Etzkowittz and Leydessdorff (2009) s According to Maarques In the Figgure 1 can bee seen the moodel of interaaction betweeen the three spheres. (2007), eaach institution n has its pow wers. The prodduction comppanies are parrt of the markket knowledgge and demand for fo new creatiions. The universities, in turn, hold aw waiting oppoortunities to use u knowledgge and development of new experiences. e W Within univeersities, there are experim ments that cann escape/evadde the expected result. r This reequires resouurces availablee for investm ment in researcch, because have h risk and longterm returrn. The goverrnment wouldd be part of thhat tripod prooviding suppoort, political or o financial, for f the viability of o these projeccts. Some of thhe mechanism ms for the reaalization of teechnology trannsfer and inteeraction betweeen companiees and universitiees are incubaators, organizations that promote inteeraction amoong agents, promoting p sccience, 178 technology and innovation, facilitating the performance of incubated companies and promoting greater contact with formal and informal networks legal information, economic or technological. Facilitate transactions with public or private institutions to support entrepreneurship and innovation, and entrepreneurs are involved in teaching or research institutions that can provide qualified professionals for their companies. Therefore the role of business incubators is to provide support the development of new ventures and provide subsidized form of appropriate infrastructure and technical and administrative services for the realization of their projects, taking advantage of scientific knowledge and professional entrepreneurs, in addition to being an intermediary between companies and public institutions and private fomentation. Many academics and academies already engage in entrepreneurial action, building companies with innovative ideas and inventions of their own laboratories or in the form of incubators, inviting companies to within the universities. This creates a cycle of innovation and development (PEREIRA, 2010, p. 69 apud RIBEIRO, 2001). 5. Methodology The development of the study resorted to a descriptive and bibliographical research. According to Gil (2008), the literature "is developed from material already prepared, consisting mainly of books and scientific articles." The literature used covers topics about innovation, technology transfer, triple helix (interaction between university, government and the productive sector) and business incubator. Descriptive research, according to the author, "has as main objective the description of the characteristics of a given population or phenomenon or establishment of relations between variables." For the elaboration of this research, a questionnaire with open and closed-ended questions was applied to 19 companies linked to Technological Incubator of Maringa. The questions are related to number of collaborators (partners, employees, trainees and researchers), amount of investment, number of products developed and developing, the extension of the market of the products and the type of interaction between companies and academia. In this research, the company is the entrepreneur. 6. Results The companies surveyed are micro and small enterprises newly created or with little operating time. All are technology-based companies, however they are distributed in different areas, such as Agricultural Technologies, Energy, Mechanical & Mechatronics, Textile & Design, New Materials, Information Technology & Communications, Clean Technology, Biotechnology, Food, Personal Hygiene, Perfumes & Cosmetics and Health. Altogether, there are 77 collaborators involved in these enterprises. It should be highlighted that the most of the companies are in activity start and so they are in structuring process. Thus, it is common to have people allocated in more than one activity. These companies have developed 49 products, all launched on the market and with great acceptance, and 34 are being developed, as shown in Figure 2. Figure 2 Numbers of Products Developed and Developing Products developed 34 49 Source: Authors 179 Products under development The market for products developed by companies is mostly national and international, as shown in Figure 3. These products feature highly innovative features and so become competitive, so get a very broad market. Figure 3 Market reach of products. 100% 50% 0% International National Regional Local Market reach of products. Source: Authors The good acceptance of these products in the market is due to its innovative features, result of investment in products development and the interaction between companies and academia. Inside the incubator, companies get a space to develop their activities, supports, services and facilities they probably would not find elsewhere. Thus, there is a saving costs and much of the investment goes to products development. The investment made for products development exceed R$ 2,500,000.00. It should point out that the companies linked to Maringa Technology Incubator have been covered by government financial resources destined for the implementation of projects that create new products or significantly improved products with technological innovation to micro and small enterprises that prove market impact. In relation to the type of interaction between enterprises and academia, in 37% of the companies is through partnerships with universities and research centers and 53% based on some knowledge acquired by employees during their undergraduate or graduate and through partnership with researchers, as shown in Figure 4. Figure 4 Type of Interaction between Enterprises and Academia 100% 80% 60% 40% 20% 0% 53% 37% Partnership with Based on some research institutions knowledge acquired (universities, research during their centers) undergraduate or graduate 53% Partnership with researchers Type of Interaction Between Enterprises and Academia Source: Authors 7. Conclusion 180 The creation of new technologies within universities and research institutions and possible partnerships with the productive sector are important for the development and growth of the country and contribute to increased competitiveness in relation to developed countries. Investment in technological innovation creates new products as well as the improvement of existing products and processes. For this, we need mechanisms to further the process of technology transfer between academia and the productive sector, as business incubators. Through the results, it is evident that the incubators, such as technology-based incubators are environments that facilitate the process of knowledge transfer. The results showed that the surveyed companies have produced a large number of products, all with innovative features resulting from investment in the development of these products and the partnership between companies and academia. Due to innovative features of the products developed by companies, products reached a market nationally and internationally, since they have competitive potential. Thus, there are many positive externalities, such as the creation of employment and income. From the aspects analyzed, it can be concluded that there is an interaction between the companies related to Technology Incubator de Maringá, both academia and society, through the transfer of technology between academia and the productive sector and the insertion of the products developed in the market. References Gil, Antonio Carlos. Métodos e técnicas de pesquisa social. Métodos e técnicas de pesquisa social. 6. ed. - São Paulo: Atlas, 2008. Etzkowitz, Henry; Leydesdorff, Loet (2000). The Dynamics of innovation: From national systems and “mode 2” to a Triple Helix of University-Industry-Government. Issue of Research Policy 29(2) (2000) 109-123. Fayet, Eduardo Alves. Gerenciar a inovação: um desafio para as empresas. Curitiba: IEL/PR, 2010. França, Thamara Costa Vianna. Redes De Difusão Universidade-Empresa: Um Estudo Exploratório Para A Universidade Federal de Santa Catarina, http://teses.eps.ufsc.br/defesa/pdf/4211.pdf. Furtado, André; Queiroz, Sergio. A /www.labjor.unicamp.br/ibi/arquivos/ibi_ed02.pdf. construção de indicadores de inovação, Marques, J. P. C. A dinâmica da universidade moderna: a hélice tripla de relações universidade-indústria-governo e o empreendedorismo acadêmico. Periódico: Economia global e gestão (pp. 51-70), 2007. OCDE, Organização para a cooperação e desenvolvimento econômico. Manual de Oslo. Pereira, Marcelo Farid; Oshita, Marcela Gimenes; Salles, Nilmen. Possibilidade de inovação tecnológica com base nas pesquisas: um estudo de caso realizado na Universidade Estadual de Maringá. A Economia em Revista, vol.18, nº 1, 2010. Pierry, Luiz Ildebrando, Inovação como http://www.enfato.com.br/artigos_det.php?titulo=10. diferencial competitivo no mercado globalizado, Ribeiro, Vieira Valadares. Inovação Tecnológica e transferência de tecnologia. Brasília DF. Outubro 2001. 181 About the Author(s) Fernanda Helen Mansano, Graduated in Economics from the State University of Maringá (2009). Currently is working at Technology Incubator of Maringá. Participated of Research Projects, Economic Seminars and has experience in large companies in the retail and commercial. Leonardo da Costa Urt, Undergraduate in Economics, State University of Maringa, Brazil. Currently is working at Technology Incubator of Maringá. Marcelo Farid Pereira, Graduate in Economics from the State University of Maringá (1991), master's in Production Engineering from Universidade Federal de Santa Catarina (1995) and Ph.d. in Production Engineering from Universidade Federal de Santa Catarina (1999). Has experience in Economy, focusing on Technological Changes, acting on the following subjects: productivity, agricultural sector, technologybased enterprises, entrepreneurship and regional development. Contact Information Fernanda Helen Mansano, Graduated in Economics at State University of Maringá, Brazil. Ruas das Rosas, 496 – Jd. Maravilha. Maringa, PR, Brazil. Post code 87080-350; Telephone number +55 44 9982-2277. E-mail: [email protected] Leonardo da Costa Urt, Undergraduate in Economics at State University of Maringa, Brazil. Rua Bragança, 520, Ap. 502 – Zona 7. Maringá, Paraná, Brazil. Post Code: 87020-220, Telephone number +55 44 9966-9125. E-mail: [email protected] Marcelo Farid Pereira, Adjunct Professor at the State University of Maringá, Brazil. Avenida Colombo, 5790 – Jd. Universitário, Bloco C34. Maringá, PR, Brazil. Post code: 87020-900; Telephone number: +55 44 3011-4905 E-mail: [email protected]. 182