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How Elf Aquitaine provides technological assistance to small businesses
Long Range Planning, Vol. 19, No. 3, pp. 59 to 61, 1986 Printed in Great Britain
0024-6301/86 $3.00 + .OO Pergamon Journals Ltd.
59
How Elf Aquitaine Provides Technological Assistance to Small Businesses Jean-Pierre
Turbil
Elf Aquitaine offered its accumulated kno wledge and expertise in research, development and innovation to other small and medium size businesses in the Aquitaine area. Its success led to a similar service being offered in the Rhontilpes region, and other large industrial groups have followed the lead in other districts. The scheme has benefits all round. Elf Aquitaines research benefits from a widening of outlook: the area sees an increased industrial activity: and smaller businesses find technological support.
constituting thus, the first experience of its type in France, Within 5 years, this centre has enjoyed an important development in collaboration with the industries of the Aquitaine area. This success induced the Elf Aquitaine Group to repeat the experiment in the Rhone-Alpes region in 1984 by creating the technical centre of Rhone-Alpes (CETRALP).
A Light Structure The Creation of Regional Centres
Technical
Conscious of the difficulties that small and medium size businesses encounter in improving their products and creating new ones, Elf Aquitaine agreed to put its scientific and technical resources at their disposal. However dynamic it may be, a firm.cannot make the indispensable technological developments needed for its growth and survival without research. Unfortunately, most of the time, this is a luxury for the small and medium size business. To maintain a research team is costly, and it is not justified unless the enterprise is capable of assimilating and developing the results which come from its laboratories. Elf Aquitaine has accumulated knowledge and capabilities many of which lay outside its field of industrial activities. The idea was born to let individual enterprises, which base their development on technological innovation and technical progress, benefit from this pool of skills and technology. This thought, coupled with the desire to develop the economy and employment in the Great South West part of France lead the Group* to create the Technical Centre in the Aquitaine region (CETRA)
The author belongs to the Research Development and Innovation Division of Elf Aquitaine. ‘The term Group refers to the Elf Aquitaine Group.
Contrary to what the name suggests, CETRA and CETRALP are very light structures since they consist of four and three people, respectively. As the spearhead of the research staff, the Technical Centres are the interface with the small businesses. Their strength lies in the fact that they are able to speak the language of the enterprises as well as that of the laboratories. They are Industrialists at the Service of Industrialists They help the industrialist to formulate his problem and to translate it into a research project. The Technical Centres give a good deal of time to the first step because the quality of the later discussion depends on this. As they come from industry, the personnel of Technical Centres know the importance of a cost estimate or a delay, the value of an investment, the competitiveness in the market; these are qualities that the senior personnel in small businesses are very sensitive and attentive to. The Technical Centres are in continuous contact with private and public organizations that exist to help the small businesses to finance their research work. They maintain a close relationship with other organizations in the Elf Aquitaine group, such as SOFREA (Society for the Regional Financing of Elf Aquitaine). They are in touch with the Bureau of Economic Development whose aim is to provide financial aid related to job creation for the industrial
60
Long Range Planning Vol. 19
June 1986
development of ‘the south-west and south-east regions of France and INOVELF which is a venture capital company. They are also in contact with ANVAR (National Agency for Validation of Research), other associations to assist small businesses, the chambers of Commerce and Industry, etc.
Varied and Adapted Services Once the problem submitted by the enterprise is thoroughly formulated, the Technical Centre looks for the right team in the Group which could best solve the problem, and the problem is submitted to them. A proposal is then submitted to the small business. The Technical Centre simultaneously informs the enterprise of the financial research help it could request. The Technical Centres have agreed on ‘tax credits for research’ and Elf Aquitaine scientists can participate in the ‘technological expertise programmes’ of ANVAR.
rights may be arranged in several ways: to the small business with or without royalties to the Group, to the Group with a licensing agreement in its territory; to the two parties, with possible royalty payments for the applications that each would have.
Areas of Competence The size and diversity or the Group’s potential for research allow the Regional Technical Centres to respond to a large number of enquiries. However, among the areas in which our researchers possess a specific competence, some are specifically of interest to small businesses: *
Materials: Rubbers, plastics (thermoplastics, thermosets), filled plastics, composites
*
Surface ceatment:
*
Glues and adhesives: Characterization, tion, transformation, testing
*
Automation: Improving the productivity of production machinery. The Technical Centres perform the first two steps of the research; the analysis of the problem and the assessment of feasibility. The development of prototypes is generally undertaken by the specialized small businesses under the Technical Centres’ direction.
fr
Energy: Analysis and development proposals for the utilization of energy (generation, combustion, economy thermal diagnosis); energy generation from waste.
*
Fine chemicals: Formulation and compounding of products for specific uses.
*
Environment: The diagnosis and production of proposals to combat nuisances and the disposal of products in their consumer usage cycles.
The Services Offered These are primarily differentiated by the time taken, from a simple consultation to the complete development of a process or a product. Short-term Studies These imply a response to a specific question by a piece of advice, a test or a literature search. Medium or Long-term Studies These services are related to more complex problems, improving a manufacturing process, using alternative raw materials, developing new products. In each case the enterprise’s competitiveness is at risk; so it is necessary to provide the small businesses with sound answers at the right time. Increasingly, research work is preceded by a feasibility study allowing the entrepreneur to appreciate the technical risks, the competitiveness, the marketing scope and the price levels.
Financial Aspects The services given by the Technical Centres are costed. It is one of the conditions of the contract to establish a clear relationship with industrialists. However, as part of its policy of helping regional development, Elf Aquitaine pays for the direct expenses of each Technical Centre team, which reduces the costs to the small businesses. In addition, the Group shares the financial costs of the consultancy services.
Ownership of Results This important point is agreed at the beginning of the assignment in the terms of a contract between the two parties. The attribution of proprietary
The CETRA
Paints, varnishes, corrosion formula-
and CETRALP
The Technical Centres provide assistance in terms of both know-kow and research facilities. This is not as one-sided as it seems. The research workers who are responsible the the contracted studies, participate in the development of innovations in a complimentary environment to the one they already know. They benefit by widening their outlook and this is frequently helpful to their research work for Elf Aquitaine. Also the knowledge of the regional industry thus acquired, helps in the creation of jobs (SOFREA) and in the promotion of innovation (INOVELF) in a better environment and with increased efficiency. Experience at CETRA shows that that cooperation between a large enterprise like Elf Aquitaine and small businesses can be helpful in the creation of industrial activity and therefore jobs. This is a fact of
How Elf Aquitaine Provides Technological great economic importance, because it allows small firms to increase their competitiveness through having access to know-how they could have never acquired by themselves. Our Group has decided to extend this work by creating the Technical Centre of the Rhone-Alpes with the same objectives as region (CETRALP) CETRA. Other large industrial groups have followed our example: Saint Gobain/Pont-&Mousson in Lorraine, the CEA and the SNPE in Aquitaine, Lafarge Coppee at Monttlimar, PUK in the Isire and many others. The French government is actively interested in these experiments. An informal club has been formed to exchange experiences among the various projects and to make specific recommendations.
Examples of Intervention Combustible Additives A company in the Aquitaine region produces and markets several additives for different companies. In the Solaize Research Centre, Elf Aquitaine conducts research work on ‘liquid charcoals’ and is considering the use of this type of additive for their stabilization. CETRA and CETRALP have succeeded in developing products and have tested them by using the resources available in the various regions. A contract has been drawn up to fix the terms and conditions for this cooperation, particularly with respect to industrial royalties and proprietary information.
Assistance to Small Businesses
61
Hot Metal Adhesives CETRA has helped an industrialist in the PAU area to develop an entirely automated process for the extrusion and conditioning of small rods of hot melt adhesive to feed applicator guns. The studies carried out so far on the formulation now enable the company to use French raw materials, which can now replace imports.
Acknowledgement-This from ANVAR.
project
has been supported
by a grant
Additional information about the activities of the Regional Technical Centres can be obtained through the following contacts: Dr. Elias Agouri ELF-AQUITAINE-CETRA BP 34 64170 Artix France Tel: (59) 92.22.92 Telex : 560053 M. Gilbert Ouziel ELF-AQUITAINE-CETRALP Chemin de la Lone-BP 32 69310-Pierre Benite France Tel: (7) 251 88 00 Telex: 900540 F
0024-6301/86 $3.00 + .OO Pergamon Journals Ltd.
59
How Elf Aquitaine Provides Technological Assistance to Small Businesses Jean-Pierre
Turbil
Elf Aquitaine offered its accumulated kno wledge and expertise in research, development and innovation to other small and medium size businesses in the Aquitaine area. Its success led to a similar service being offered in the Rhontilpes region, and other large industrial groups have followed the lead in other districts. The scheme has benefits all round. Elf Aquitaines research benefits from a widening of outlook: the area sees an increased industrial activity: and smaller businesses find technological support.
constituting thus, the first experience of its type in France, Within 5 years, this centre has enjoyed an important development in collaboration with the industries of the Aquitaine area. This success induced the Elf Aquitaine Group to repeat the experiment in the Rhone-Alpes region in 1984 by creating the technical centre of Rhone-Alpes (CETRALP).
A Light Structure The Creation of Regional Centres
Technical
Conscious of the difficulties that small and medium size businesses encounter in improving their products and creating new ones, Elf Aquitaine agreed to put its scientific and technical resources at their disposal. However dynamic it may be, a firm.cannot make the indispensable technological developments needed for its growth and survival without research. Unfortunately, most of the time, this is a luxury for the small and medium size business. To maintain a research team is costly, and it is not justified unless the enterprise is capable of assimilating and developing the results which come from its laboratories. Elf Aquitaine has accumulated knowledge and capabilities many of which lay outside its field of industrial activities. The idea was born to let individual enterprises, which base their development on technological innovation and technical progress, benefit from this pool of skills and technology. This thought, coupled with the desire to develop the economy and employment in the Great South West part of France lead the Group* to create the Technical Centre in the Aquitaine region (CETRA)
The author belongs to the Research Development and Innovation Division of Elf Aquitaine. ‘The term Group refers to the Elf Aquitaine Group.
Contrary to what the name suggests, CETRA and CETRALP are very light structures since they consist of four and three people, respectively. As the spearhead of the research staff, the Technical Centres are the interface with the small businesses. Their strength lies in the fact that they are able to speak the language of the enterprises as well as that of the laboratories. They are Industrialists at the Service of Industrialists They help the industrialist to formulate his problem and to translate it into a research project. The Technical Centres give a good deal of time to the first step because the quality of the later discussion depends on this. As they come from industry, the personnel of Technical Centres know the importance of a cost estimate or a delay, the value of an investment, the competitiveness in the market; these are qualities that the senior personnel in small businesses are very sensitive and attentive to. The Technical Centres are in continuous contact with private and public organizations that exist to help the small businesses to finance their research work. They maintain a close relationship with other organizations in the Elf Aquitaine group, such as SOFREA (Society for the Regional Financing of Elf Aquitaine). They are in touch with the Bureau of Economic Development whose aim is to provide financial aid related to job creation for the industrial
60
Long Range Planning Vol. 19
June 1986
development of ‘the south-west and south-east regions of France and INOVELF which is a venture capital company. They are also in contact with ANVAR (National Agency for Validation of Research), other associations to assist small businesses, the chambers of Commerce and Industry, etc.
Varied and Adapted Services Once the problem submitted by the enterprise is thoroughly formulated, the Technical Centre looks for the right team in the Group which could best solve the problem, and the problem is submitted to them. A proposal is then submitted to the small business. The Technical Centre simultaneously informs the enterprise of the financial research help it could request. The Technical Centres have agreed on ‘tax credits for research’ and Elf Aquitaine scientists can participate in the ‘technological expertise programmes’ of ANVAR.
rights may be arranged in several ways: to the small business with or without royalties to the Group, to the Group with a licensing agreement in its territory; to the two parties, with possible royalty payments for the applications that each would have.
Areas of Competence The size and diversity or the Group’s potential for research allow the Regional Technical Centres to respond to a large number of enquiries. However, among the areas in which our researchers possess a specific competence, some are specifically of interest to small businesses: *
Materials: Rubbers, plastics (thermoplastics, thermosets), filled plastics, composites
*
Surface ceatment:
*
Glues and adhesives: Characterization, tion, transformation, testing
*
Automation: Improving the productivity of production machinery. The Technical Centres perform the first two steps of the research; the analysis of the problem and the assessment of feasibility. The development of prototypes is generally undertaken by the specialized small businesses under the Technical Centres’ direction.
fr
Energy: Analysis and development proposals for the utilization of energy (generation, combustion, economy thermal diagnosis); energy generation from waste.
*
Fine chemicals: Formulation and compounding of products for specific uses.
*
Environment: The diagnosis and production of proposals to combat nuisances and the disposal of products in their consumer usage cycles.
The Services Offered These are primarily differentiated by the time taken, from a simple consultation to the complete development of a process or a product. Short-term Studies These imply a response to a specific question by a piece of advice, a test or a literature search. Medium or Long-term Studies These services are related to more complex problems, improving a manufacturing process, using alternative raw materials, developing new products. In each case the enterprise’s competitiveness is at risk; so it is necessary to provide the small businesses with sound answers at the right time. Increasingly, research work is preceded by a feasibility study allowing the entrepreneur to appreciate the technical risks, the competitiveness, the marketing scope and the price levels.
Financial Aspects The services given by the Technical Centres are costed. It is one of the conditions of the contract to establish a clear relationship with industrialists. However, as part of its policy of helping regional development, Elf Aquitaine pays for the direct expenses of each Technical Centre team, which reduces the costs to the small businesses. In addition, the Group shares the financial costs of the consultancy services.
Ownership of Results This important point is agreed at the beginning of the assignment in the terms of a contract between the two parties. The attribution of proprietary
The CETRA
Paints, varnishes, corrosion formula-
and CETRALP
The Technical Centres provide assistance in terms of both know-kow and research facilities. This is not as one-sided as it seems. The research workers who are responsible the the contracted studies, participate in the development of innovations in a complimentary environment to the one they already know. They benefit by widening their outlook and this is frequently helpful to their research work for Elf Aquitaine. Also the knowledge of the regional industry thus acquired, helps in the creation of jobs (SOFREA) and in the promotion of innovation (INOVELF) in a better environment and with increased efficiency. Experience at CETRA shows that that cooperation between a large enterprise like Elf Aquitaine and small businesses can be helpful in the creation of industrial activity and therefore jobs. This is a fact of
How Elf Aquitaine Provides Technological great economic importance, because it allows small firms to increase their competitiveness through having access to know-how they could have never acquired by themselves. Our Group has decided to extend this work by creating the Technical Centre of the Rhone-Alpes with the same objectives as region (CETRALP) CETRA. Other large industrial groups have followed our example: Saint Gobain/Pont-&Mousson in Lorraine, the CEA and the SNPE in Aquitaine, Lafarge Coppee at Monttlimar, PUK in the Isire and many others. The French government is actively interested in these experiments. An informal club has been formed to exchange experiences among the various projects and to make specific recommendations.
Examples of Intervention Combustible Additives A company in the Aquitaine region produces and markets several additives for different companies. In the Solaize Research Centre, Elf Aquitaine conducts research work on ‘liquid charcoals’ and is considering the use of this type of additive for their stabilization. CETRA and CETRALP have succeeded in developing products and have tested them by using the resources available in the various regions. A contract has been drawn up to fix the terms and conditions for this cooperation, particularly with respect to industrial royalties and proprietary information.
Assistance to Small Businesses
61
Hot Metal Adhesives CETRA has helped an industrialist in the PAU area to develop an entirely automated process for the extrusion and conditioning of small rods of hot melt adhesive to feed applicator guns. The studies carried out so far on the formulation now enable the company to use French raw materials, which can now replace imports.
Acknowledgement-This from ANVAR.
project
has been supported
by a grant
Additional information about the activities of the Regional Technical Centres can be obtained through the following contacts: Dr. Elias Agouri ELF-AQUITAINE-CETRA BP 34 64170 Artix France Tel: (59) 92.22.92 Telex : 560053 M. Gilbert Ouziel ELF-AQUITAINE-CETRALP Chemin de la Lone-BP 32 69310-Pierre Benite France Tel: (7) 251 88 00 Telex: 900540 F