Showing papers in "Journal of Technology Transfer in 2010"

Adverse selection and financing of innovation: is there a need for R&D subsidies?

Abstract: We study the interaction of private and public funding of innovative projects in the presence of adverse-selection based financing constraints. Government programs allocating direct subsidies are based on ex ante screening of the subsidy applications. This selection scheme may yield valuable information to market-based financiers. We find that under certain conditions, public R&D subsidies can reduce the financing constraints of technology-based entrepreneurial firms. First, the subsidy itself reduces the capital costs related to the innovation projects by reducing the amount of market-based capital required. Second, the observation that an entrepreneur has received a subsidy for an innovation project provides an informative signal to the market-based financiers. We also find that public screening works more efficiently if it is accompanied with subsidy allocation.

What drives the university use of technology transfer offices? Evidence from Italy

Abstract: Over the last 20 years, universities have made steady progress in their efforts to foster the process of technology transfer through collaboration with industry. The establishment of technology transfer offices (TTO) has become routine for supporting the commercialization of academic research. However, the literature shows that there are many factors that affect the efficiency and effectiveness of these offices. Based on original data from interviews with 197 university departments in Italy, this paper investigates the determinants of universities university use of TTOs. We take account of the effects of universities’ and TTOs characteristics, of research and geographic indicators.

Informal university technology transfer: a comparison between the United States and Germany

Abstract: Existing literature has confined university technology transfer almost exclusively to formal mechanisms, like patents, licenses or royalty agreements. Relatively little is known about informal technology transfer that is based upon interactions between university scientists and industry personnel. Moreover, most studies are limited to the United States, where the Bayh-Dole Act has shaped the institutional environment since 1980. In this paper, we provide a comparative study between the United States and Germany where the equivalent of the Bayh-Dole Act has come into force only in 2002. Based on a sample of more than 800 university scientists, our results show similar relationships for the United States and Germany. Faculty quality which is however based on patent applications rather than publications serves as a major predictor for informal technology transfer activities. Hence, unless universities change their incentives (e.g., patenting as one criterion for promotion and tenure) knowledge will continue to flow out the backdoor.

Convergence or path dependency in policies to foster the creation of university spin-off firms? A comparison of France and the United Kingdom

Abstract: This paper examines attempts by French and UK governments to fill the gap between the US and Europe with respect to the creation of academic spin-offs. Analysis of the contrasting cases of the UK and France, shows that there is no convergence of national policies to foster the creation of firms by academics. Rather, the two countries demonstrate different rationales and approaches to policy in this area. In UK, the rationale for spin-off policy is mainly to develop a third stream of financing. Spin-offs are a part of a policy to commercialize technology and knowledge created by universities. Policy is at the university level, leading to the creation of diverse structures. Public schemes bring public money directly to universities. In France, the rationale for policy towards the creation of new ventures by academics is the development of high technology new ventures as part of a technological entrepreneurship policy. The notion of a third stream of financing for universities is an argument that is never advanced. The UK has placed the universities at the heart of policies aimed at the creation of spin-offs, this is not the case in France.

The contribution of university research to the growth of academic start-ups: an empirical analysis

Abstract: The aim of this paper is to analyze empirically under which circumstances the universities located in a geographical area contribute to the growth of a special category of local new technology-based firms (NTBFs), those established by academic personnel (academic start-ups, ASUs) We examine the effects of a series of characteristics of local universities on the growth rates of ASUs and we compare them with the effects of the same university characteristics on the growth of other (ie, non-academic) NTBFs In the empirical part of the paper, we estimate an augmented Gibrat law panel data model using a longitudinal dataset composed of 487 Italian NTBFs observed from 1994 to 2003 Out of these NTBFs 48 are ASUs The results of the econometric estimates suggest that universities do influence the growth rates of local ASUs, while the effects on the growth rates of other NTBFs are negligible In particular, the scientific quality of the research performed by universities has a positive effect on the growth rates of ASUs; conversely the commercial orientation of research has a negative effect These results indicate that universities producing high-quality scientific research have a beneficial impact on the growth of local high-tech start-ups, but only if these firms are able to detect, absorb, and use this knowledge In this perspective, a greater commercial orientation of university research leading to a reduction of the knowledge available for absorption by these companies, can be detrimental

Inventing and patenting activities of scientists: in the expectation of money or reputation?

Abstract: We propose that scientists use patents/invention disclosures as signals to gain reputation than financial benefits. Based on a newly created dataset on the commercial activities among 2,500 scientists affiliated with 67 institutes of the German Max Planck Society, we explore the relation between the expectations of scientists concerning the outcomes of commercial activities and the likelihood of their patenting and disclosure behaviors. We find that expectation of gaining financial benefits are not related with the patenting activities of scientists without industrial cooperation. Instead, their expectation to gain/increase reputation through commercial activities is correlated with their patenting and disclosures activities. This may in turn also increase the possibility to gain academic promotion, financial benefits through industrial collaboration etc., rather than the immediate personal financial gains.

Rationales and mechanisms for revitalizing US manufacturing R&D strategies

Abstract: The race to economic superiority is increasingly occurring on a global scale. Competitors from different countries are employing new types of growth strategies in attempts to win that race. The United States cannot, therefore, continue to rely on outdated economic growth strategies, which include an inability to understand the complexity of the typical industrial technology and the synergies among tiers in high-tech supply chains. In this context, a detailed rationale is provided for maintaining a viable domestic technology-based manufacturing capability. In the United States, the still dominant neoclassical economic philosophy is at best ambivalent on the issue of whether a technology-based economy should attempt to remain competitive in manufacturing or let this sector continue to offshore in response to trends in comparative advantage, as revealed through shifts in relative prices. The paper argues that the neoclassical view is inaccurate and that a new innovation model is required to guide economic growth policy. Specifically, the paper provides (1) a rationale for why an advanced economy such as the United States needs a manufacturing sector; (2) examples of the process of deterioration of competitive positions for individual industries and, more important, entire high-tech supply chains; (3) an explanation of the inadequacy of current economic models for rationalizing needed new policy strategies; and (4) a new economic framework for determining both policy mechanisms and targets for those mechanisms, with emphasis on the systems nature of modern technologies and the consequent requirement for public–private innovation ecosystems to develop and deliver these technologies. Several targets are suggested for major policy mechanisms.

Dynamics of Science-based entrepreneurship

Abstract: This article introduces the rationale for the special issue, summarizes the main themes covered by the papers presented and suggests areas for further research. Previous research has focused on the creation of Science-based entrepreneurial firms (SBEFs) but there is little research relating to their growth and the challenges in ensuring growth occurs. At the macro-level, there is a need to distinguish general versus specific policies and how these vary between different institutional environments. At the firm level, there is a need to consider the factors influencing the development of boards, the growth of SBEFs and their dynamics in terms of acquisitions and IPOs.

The M&A dynamics of European science-based entrepreneurial firms

Abstract: This paper investigates the dynamics of a sample of 131 science-based entrepreneurial firms (SBEFs), selected out of 500 innovative small and medium enterprises (SMEs) that went public in Europe in the period 1995–2003. We found that the market for control of these firms was active, with most of our sample firms being acquired after their Initial Public Offering (IPO), usually by companies operating within the same industry. Floated SBEFs showed a higher propensity to be acquired than independent firms; this distinction persisted after controlling for intellectual capital and other possible determinants. While university affiliation enhanced attractiveness in the eyes of other companies, it negatively affected the propensity for acquisition. We argue that university-based firms do contribute to the technology transfer process, as evidenced by the widespread interest of the business world in investing in these firms. The creation of a SBEF is a first step in the process of commercial exploitation of university-research, while the subsequent step of going public is a sign of the success of this entrepreneurial venture. The take-over of SBEFs may be a final outcome of the process of knowledge diffusion.

Managing and incentivizing research commercialization in Chinese Universities

Abstract: Research shows that there are important institutional underpinnings for building university–industry linkages. This paper aims to understand how China is developing the relevant organizational structures and incentives in its universities. What academic institutions shape the scope and channels of university–industry linkages? What incentives do universities provide to encourage and facilitate faculty engagement with industry? My analysis is accomplished through content analysis of university documents and in-depth interviews with personnel in two top institutions—Fudan University and Shanghai Jiaotong University, supplemented by official statistics. It shows that the hybrid organizational structure to manage technology transfer is a product of historical legacy and institutional learning—parts uniquely Chinese and parts adapted from the West. Faculty incentives also have varied effects. In spite of being enticed to disclose inventions and pursue commercialization, faculty remains keener on scholarly publications.

The new science and engineering management: cooperative research centers as government policies, industry strategies, and organizations

Abstract: Cooperative research centers (CRCs) are key mechanisms for national and subnational governments and private industry for achieving social and economic outcomes with science and technology. Despite growing policy and scholarly interest in the management and productivity of CRCs, their complex and variegated nature has led to limited and inconsistent understanding of CRCs. In this introduction to this Special Issue of TheJournal of Technology Transfer, we discuss the impetuses for and embodiment of CRCs as government policies, industry strategies, and organizations and thus address a number of unexplored aspects of CRCs that are important to decision making for both policy and management. Of note, we discuss the lack of definitional clarity regarding CRCs and introduce criteria for distinguishing CRCs from other organizations. We conclude by introducing the article contributions, which are international in scope and address CRCs from multiple theoretical perspectives and levels of analysis, and by discussing areas for future research.

Transfer of academic research: uncovering the grey zone

Abstract: In this study, we respond to calls for further investigation on why and how scientists choose to commercialize their research. Mowery (University entrepreneurship and technology transfer: process design, and intellectual property, Elsevier, Oxford 2005), in his criticism of the US-system, emphasizes the need for multiple channels between university and industry. His argument makes the case of Sweden interesting, where the researchers own the intellectual property of their research. Sweden thus constitutes a unique case where data can be found on which choices researchers make in a setting where a variety of channels for transfer are available. Our empirical data, collected through case studies, allowed for the expansion of the typology for mechanisms for transfer of academic research as well as the development of a typology for determinants for researchers’ choice to engage in transfer of research. Apart from those contributions to the theoretic discussion, the data also provided policy implications.

Commercialization strategies of technology: lessons from Silicon Valley

Abstract: Science and technology incubators play an increasing role in contributing to the entrepreneurial, venture and economic development. This paper is concerned with the strategies for technology commercialization and supports of new venture development. The study has applied the cluster-based strategies of the US Silicon Valley to the case of Thailand. The findings highlight the role of the National Science and Technology Development Agency’s Science Park and the National Innovation Agency’s Innovation Park in supporting technology commercialization and development of the national innovation system. The future challenges to create effective system for entrepreneurial development and implications for entrepreneurial business management are discussed herein.

Exploring board formation and evolution of board composition in academic spin-offs

Abstract: An in-depth analysis of 11 cases is used to provide insight into the neglected area of the dynamics of boards in academic spin-offs. Drawing on stage-based, resource dependence, and social network theories, we explore board formation and changes in board composition occurring in Norwegian and US spin-offs. We find that these theories are important complements to earlier research on boards in technology-based new ventures. The process of board formation is mainly driven by social networks of the founders. Although we find differences in the initial board compositions in Norwegian and US spin-offs, there is convergence over time in subsequent board changes, which are mainly driven by the social networks of the board chair. Additions of key board members are associated with the progress of a spin-off developing from one stage to another. Several avenues for future research and implications are discussed.

Never mind the quality feel the width: University–industry links and government financial support for innovation in small high-technology businesses in the UK and the USA

Abstract: In this paper we use a size and industry matched sample of over 1,900 UK and US businesses for the period 2004–05 in the manufacturing and business services sectors to analyse the relative “strength” of the university–industry ecosystems in which these firms operate in the two economies. Our analysis shows that in both countries universities per se play a quantitatively smaller role as a source of knowledge for business innovation than either the business sector itself or a variety of organisations intermediating between the university and business sectors. Our analysis reveals a much more diffuse university–industry ecosystem in the UK in which a higher proportion of businesses claim links external to themselves in their pursuit of knowledge for innovation and a higher proportion report directly connecting with universities. US firms are more likely to access knowledge through a combination of business and intermediary sources and are less likely to have established formal collaborative or partnership agreements in the 3 years prior to the survey. We also find, however, that a higher proportion of US firms place a very high value on the connections they have with universities and are much more likely to commit resources to support such innovation related university interactions. A similar pattern of diffuse but weaker links characterise the supply of public sector financial assistance for innovation in our sample firms. UK firms are more likely to be in receipt of assistance, but receive far less per firm in absolute terms and relative to their R&D expenditures. It appears that the UK university–industry ecosystem is characterised by a greater width than quality of interaction.

The effects of biased technological change on total factor productivity: empirical evidence from a sample of OECD countries

Abstract: Technological change is far from neutral. The empirical analysis of the rate and direction of technological change in a significant sample of 12 major OECD countries in the years 1970-2003 confirms the strong bias of new technologies. The paper implements a novel methodology to identify and disentangle the effects of the direction of technological change upon total factor productivity (TFP) and shows how the introduction of new and biased technologies affects the actual levels of TFP according to the relative local endowments. The empirical evidence confirms that the introduction of biased technologies enhances TFP when its direction matches the characteristics of local factor markets so that locally abundant inputs become more productive. When the direction of technological change favours the intensive use of production factors that are locally scarce, the actual increase of TFP is reduced.

Agency and similarity effects and the VC’s attitude towards academic spin-out investing

Abstract: Our research seeks to develop understanding of the factors explaining venture capital investment managers’ attitudes towards investment in the unique context of academic spin-outs. We provide a novel integration of both VC fund characteristics and investment managers’ human capital characteristics with a unique hand-collected dataset of 68 early stage VC investment managers in Europe. Attitudes toward academic spin-out investing are positively affected by the presence of public sector capital and by investment managers who are more intensively involved with the entrepreneur. Specific human capital in investment managers who had worked in an academic environment is more likely associated with investment in academic spin-outs. In terms of general human capital, financial experience is positively related while entrepreneurial experience is negatively associated with investment attitude towards academic spin-outs. There may be a need to facilitate the attraction of people from industry and investment banking into public VC funds in particular.

The university technology transfer revolution in Saudi Arabia

Abstract: This paper explains why and how a technology transfer revolution is taking place in Saudi Arabia to meet the mandate that Saudi Arabia become globally competitive as a knowledge-based innovative economy. The paper explains and identifies the new policies and institutions that have been introduced and developed to facilitate technology transfer and knowledge spillovers from the universities for commercialization and ultimately innovative activity and economic growth. The paper finds that a technology transfer revolution in Saudi Arabia is taking place, with the goal of leapfrogging from the factor-based stage of economic development to the innovation-based stage of economic development, while bypassing the intermediary efficiency-based stage of economic development.

Managing competition between individual and organizational goals in cross-sector research and development centres

Abstract: Research of potential socio-economic value is commonly conducted within cross-sector (government, university, business) centres. Success depends on partners whose objectives and strategies may converge or compete. Yet little empirical evidence exists on: (a) how individual researchers perceive the benefits of their participation, (b) how far the structures and functions of particular collaborative R&D centres coalesce around of researchers’ expectations and, (c) what problems arise for researchers who opt for a ‘second job’ in the centre. The paper presents a qualitative analysis of a survey of respondents from public sector organizations involved in Australian Cooperative Research Centres. A novel frame for analysing these data is the study of inter-organizational relationships (IOR). We use the perspective of the individual research scientists to illuminate the important management issues of trust, governance, and competition between functional domains, which emerge from IOR and which have been inadequately recognised in the context of collaborative R&D centres. The findings have implications for the management and of the centres, for the careers of research scientists and for public policy.

The commercialization of academic patents: black boxes, pipelines, and Rubik’s cubes

Abstract: Drawing on histories of technological innovation originating from research by faculty at The Pennsylvania State University and Johns Hopkins University, this paper presents evidence for a “technology” as well as an “intellectual property rights” research approach to the commercialization of academic patents. By describing how inventor and firm activities and strategies affect the technical development and commercial positioning of university patents, a technology focus adds depth to the general proposition that university patents are embryonic technologies. It likewise serves as an analytical probe to reconsider other mainstream propositions about university technology transfer.

Leadership, behavioral context, and the performance of work groups in a knowledge-intensive setting

Abstract: The behavioral work context in which members of groups interact with each other is crucial for facilitating knowledge exchange and combination (Nonaka in Great minds in management: the process of theory development, Oxford University Press, Oxford 2005; Nonaka et al. in Long Range Plan 33:5–34, 2000). Yet little is known about the ways leaders, by signaling expectations and exhibiting supportive behaviors, facilitate such a behavioral context, which may then enhance performance. This study aims to contribute to the literature by examining how leader expectations and supportive behaviors facilitate behavioral integration and enhance the performance of work groups engaging in the development of advanced technological products. Data collected from management teams of 102 work groups indicate significant and positive relationships between: (1) leader expectations and leader supportive behaviors, (2) leader supportive behaviors and group behavioral integration, and (3) behavioral integration and group performance. In addition, the results indicate that leader supportive behaviors partially mediate the relationship between leader expectations and group behavioral integration, and the latter partially mediates the link between leader supportive behaviors and group performance. No significant link was found between leader expectations and group performance. In so doing, this study contributes to research on the way leaders, by shaping a behavioral context, facilitate knowledge exchange and combination, thereby enhancing group performance.

Facilitating public-to-private technology transfer through consortia: initial evidence from Korea

Abstract: Korean public research institutes (PRIs) are experimenting with a consortia approach for promoting public-to-private technology transfer. This research examines the effectiveness of five regional technology transfer consortia operating in Korea from 2002 to 2006 and explores their characteristics including motivations, facilitators, barriers, and challenges. The paper reports both quantitative and qualitative evidence. Archival and survey data were collected on the effectiveness and characteristics of the technology transfer consortia. The proposition was supported that membership in these consortia can enhance the technology transfer performance of participating PRIs. Reasons on how consortia increase PRI performance are discussed and four key drivers are seen as being critical to increasing the effectiveness of consortia. Conclusions focus on lessons learned for policy makers, PRIs, and consortia.

Coordinating a conscious geography: the role of research centers in multi-scalar innovation policy and economic development in the US and Canada

Abstract: This article contributes to the debate about the role of the region in the placement and coordination of research centers linking technology-led economic development and science, technology, and innovation policy. Through a comparison of how a “conscious geography” has informed the organization of innovation + development (I + D) research centers in the US and Canada, this analysis focuses on the variation in the models of multi-scalar policy coordination deployed through the I + D research center frameworks in the US and Canada. This article begins with a discussion of the theoretical arguments behind territorial innovation systems. It continues by describing the different models of I + D research centers in the US and Canada and the role of the region in each set of policy frameworks. The third section discusses ways policy outcomes are influenced by the initial consideration of the spatial distribution of production and innovation. The article concludes with the case for a policy model which prioritizes a role for the region as a site of economic and geographic analysis and a partner in the design of a multi-scalar innovation policy.

Leader-member exchange, trust, and performance in national science foundation industry/university cooperative research centers

Abstract: This research examines the relationship between leader-member exchange, trust, and research center performance with satisfaction and commitment to the research center in all Industry/University Cooperative Research Centers supported by the National Science Foundation in the United States. University administrator ratings of center performance fully mediated the positive relationship between leader-member exchange and trust and the extent to which university administrators reported satisfaction with and commitment to the Industry/University Cooperative Research Center that reported to them. We discuss the manner in which leadership relationship and research center performance mutually reinforce each other and the importance of this in creating and transferring technology in industry-university research partnerships and the implications of this for science policy.

Why do firms join consortial research centers? An empirical examination of firm, industry and environmental antecedents

Abstract: The purpose of this study was to test 10 hypotheses for why firms join research centers that are consortial in nature. We describe research centers with a formal arrangement for accommodating external membership as being consortial research centers (CRC). Although traditional analysis of why firms form collaborative research arrangements have tended to focus upon firm level variables, this study takes a broader view on antecedent factors. We derive hypotheses from resource dependence theory, market forces theory, and strategic behavior model explanations for such firm behavior. Panel data from 503 firms, in 104 industries from 1978 through 1996 were used to test the hypotheses. The decision to join a CRC was modeled using multivariate binomial probit analysis. Results showed that industry competitiveness, technological opportunities and the production of complementary innovations are all positively related to propensity to join a CRC. Slack resources are related to joining propensity in a non-linear fashion.

The economic impact of engineering research centers: preliminary results of a pilot study

Abstract: This article describes the results of a pilot study that tested the feasibility of estimating quantitatively the regional and economic impacts of NSF-supported Engineering Research centers. For regional impacts, we combined estimates of the direct plus indirect and induced economic impacts of ERC expenditures generated from a regional input–output model with estimates of the additional impact on the state due to center-based start-up companies, licensing income from intellectual property produced by the center, the cost savings enjoyed by local firms that had hired center graduates, and advice and consulting to local firms by center faculty. For national economic impact, a suitably modified version of the regional approach was employed, supplemented by use of a consumer surplus model to estimate the net public benefits of newly commercialized technologies based in center research. As the project proceeded, it became clear that efforts to focus solely on economic impacts that could be quantified relatively easily would greatly underestimate the actual national economic impact of ERCs. The types of impacts included and the kinds of data collected from centers and their collaborating companies were therefore expanded in the later case studies. Results of the first three cases are described here; findings from the remaining two studies did not change our overall results or conclusions. The profile of regional and, especially, national economic impact estimates varied widely across the centers studied. Only some of these variations could be attributed to ERC characteristics; most were the result of variations in the amount and type of data that could be obtained from the centers involved and the companies they worked with. We concluded that even the most conscientious and costly data collection efforts would be unlikely to yield comparable data across centers because the accessibility of key data, especially proprietary data, will differ unpredictably from center to center. Further, focusing on narrowly-conceived, quantifiable economic data alone should be avoided in these kinds of impact studies. Doing so distorts the amount and characteristics of actual impacts, many of which—perhaps most of which—cannot feasibly be converted to monetary terms. Such a narrow focus will greatly underestimate the impact of ERC-like centers, masking the much broader and, based on our findings, larger and more significant impacts on society.

Overcoming obstacles encountered on the way to commercialize university IP

Abstract: While faculty members in universities are inventing and their universities are aggressively marketing the associated intellectual property, many universities have not been pleased with the financial results. Is it due to inadequacy of effort by the universities, or due to objective obstacles? This short article provides insights into some of the real and perceived challenges facing the Technology Transfer Offices of university, and brings relevant observations to the discussion.

The role of intellectual property management education in a technology management curriculum

Abstract: Should intellectual property (IP) management be considered a required course in Technology Management curricula? If so, what knowledge and skills should be conveyed in a one-semester course? What is the best way to teach this material? This paper presents evidence that intellectual property management should be of central importance to technology management (TM) programs and that professionally vital knowledge can be taught to MBA and Management of Technology (MOT) students without legal backgrounds. IP management can be seen as a curricular locus, bringing together subjects such as entrepreneurship, technology strategy, and technology transfer. At Stevens Institute of Technology, we’ve taken the position that IP Management should be taught as a distinct course in a technology management program on equal footing with more traditional course offerings such as Marketing and Finance. We reflect upon 4 years’ teaching experience and present evidence from former students that the course fulfills its mission to be professionally relevant and pedagogically unifying to technology management programs.

Cooperative research centers and faculty satisfaction: a multi-level predictive analysis

Abstract: Cooperative research centers (CRCs) are an important part of the innovation landscape in the US and are likely to play an increasingly important role in the US’s emerging cooperative research-based innovation policy. However, in spite of considerable research on the technology transfer and economic development outcomes of CRCs, little empirical research has focused on the benefits and risks faculty may expose themselves to while participating in these partnership arrangements. Given these circumstances, this study attempted to address two questions: What outcomes do faculty experience from their participation in a CRC? To what extent is faculty satisfaction with their involvement in CRCs explained by variables at different levels of analysis? Questionnaire data were obtained from 275 faculty involved in federally-funded CRCs. Descriptive findings suggest participating faculty receive a mix of tangible and intangible benefits and few report negative consequences. Predictive analyses indicated faculty satisfaction is explained by variables operating at the organizational (university research funding), center (primary discipline) and individual-level (faculty benefits and symmetry with industry). Implications for future research and policy are discussed.

Review panel consensus and post-decision commercial performance: a study of early stage technologies

Abstract: We examine the ability of review panels to predict commercial success when evaluating early-stage technologies from small business. Specifically we examined whether a screening process resulted in greater consensus among grant panel members, to what extent certain panel members “stuck” to their evaluations, and whether information sharing and panel consensus resulted in better predictions of commercial success. In general, we found that expert panel members tend to move toward consensus after discussion, with technical experts being the most “sticky”. While information sharing does not lead to better prediction, increasing consensus among panel members does indicate a slight improvement in prediction accuracy.