Showing papers in "R & D Management in 1996"

National innovation systems: a comparative analysis

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Policies and structures for spinning off new companies from research and development organizations

Abstract: This paper develops five alternative structural ‘models’ for formal efforts aimed at spinning off new companies from universities, government laboratories, and other research and development organizations. In various ways the models combine the roles of the technology originator, the entrepreneur, the R&D organization itself, and the venture investor. The paper also presents the policies and structures of technology commercialization operations from investigations at eight R&D organizations in the United States and the United Kingdom. The data indicate that a R&D organization operating in an environment where venture capital and entrepreneurs are readily available (e.g., MIT and Stanford) can appropriately: (1) exercise a low degree of selectivity in choosing technologies for spin-off creation, and (2) provide a low level of support during the spin-off process. The spin-off process is more difficult in environments where venture capital and entrepreneurs are scarce (e.g., ARCH) and mechanisms for high-selectivity and a high level of support must be in place by the R&D organization to compensate for this scarcity.

Core competencies and the strategic management of R&D

Abstract: There is an increasing concern amongst RD funding and organisation regimes for R&D and measuring the effectiveness of R&D.

UK biotechnology: institutional linkages, technology transfer and the role of intermediaries

Abstract: One prominent feature of biotechnology in the UK is the close relationship between the public-sector science base and industry. Using information from interviews, the system for technology transfer is examined and four main institutional actors are identified: sponsors (both public and private, which fund research), hosts (which provide an environment in which research takes place), users (which commercialize research) and intermediaries (which act as agents in the technology transfer process). Models of the process of technology transfer are developed which incorporate knowledge flows between these institutions and the accompanying contractual, and financial/ economic relations. The direction, scale and formality of these interactions is examined and it is suggested that institutional approaches can capture important feedbacks and relationships which are overlooked in traditional stage and activity models of innovation. In particular, intermediaries are highlighted, and it is suggested that they play an important role in contractual and financial/economic linkages in three ways: (i) by acting as agents between institutions in the presence of an imperfect knowledge market, (ii) by performing a liaison function for firms sourcing external know-how, and (iii) by providing access to complementary assets for development of technologies internally. In the conclusion, we argue that institutional models can (a) help to define optimal linkage structures for specific technological areas at national and supranational levels (e.g. between members of the European Union) and (b) highlight the presence of inter-agency tensions and help identify the appropriate management options for resolving these.

Bricoleurs and boundary riders: managing basic research and innovation knowledge networks

Abstract: A major focus of national and institutional research policies during the 1990s has been on improving linkages between publicly funded research activities and industry for the purpose of advancing economic and other national objectives. The transfer of scientific knowledge, however, within and between public research institutions, universities and other innovative organizations is taking place within rapidly changing organizational environments. The emergence of new organizational structures that transcend institutional boundaries, scientific disciplines and the boundaries between basic and applied research are all contributing to as well as responding to changes in the ways science intersects with industrial innovation. Recent international evidence suggests that innovative organizations during the next decade will depend more on their ability to maintain quite complex organizational research linkages than on their internal organizational research capabilities. Case studies of the organizational approach adopted by companies and commercial-research agency consortia in China and Australia lead to a discussion of a typology of academic-industry alliances. The typology provides insights into different collaborative R&D management strategies associated with different forms of science-industry alliance.

Describing the issues of knowledge management in R&D: towards a communication and analysis tool

Abstract: In this article, a comprehensive descriptive model of R&D knowledge management is presented and its use illustrated. Knowledge is defined as: information internalized by means of research, study or experience, that has value for the organization. First, the issue of knowledge management is placed in the context of R&D management, and set alongside what has been written in R&D management literature about topics such as information management, information technology in R&D, technology transfer, communication and organizational learning. Then, we present our descriptive model, and apply it in a case study concerning a Dutch multinational in the chemical industry. The model served as an aid to identify bottlenecks, and was a useful starting point for formulating improvement plans, some of which are presented. The paper concludes with an evaluation of the model as a communication and analysis tool, and ideas for further improvement.

Determinants of technology cycle time in the U.S. pharmaceutical industry

Abstract: The focus of this study is to examine different factors that influence a firm's technology cycle time. The U.S. pharmaceutical industry is analyzed from 1977–1991. Specifically, the sample includes 21 firms that (a) primarily produce brand ethical drugs, (b) are publicly-owned companies, and (c) have pharmaceutical sales account for a substantial portion of company sales. Our measure of faster technology cycle time is positively correlated to measures of the knowledge base level of firms, the breadth of firms’ knowledge bases, size, and age; it is negatively correlated to advertising expenditures and the percent of US. firm sales to total sales. However, the most notable finding is that technology cycle time is significantly faster for firms that predominantly generate new knowledge internally, and slower for firms that rely more on external sources of new knowledge.

R&D networks and innovation: decentralised product development in multinational enterprises

Abstract: This paper documents the ways in which overseas R&D in MNEs now plays roles in what are innovative new approaches to innovation itself. Networks of laboratories are seen as supporting both the short-term and long-term competitive evolution of the MNE group's globally-effective product innovation. In terms of the immediate commercial application of new products for global markets it is argued that product development labs work within creative overseas subsidiaries in MNEs. These aim to derive variants of the new product that fully meet the distinctive needs of each key regional market. Another separate network of decentralised MNE labs carry out precompetitive (basic or applied) research, embodying particular areas of technological comparative advantage of their host countries. This network of labs therefore provides inputs into a centrally-articulated programme whose objective is to provide the basis of the longer-term technological evolution of the MNE, by upgrading the core knowledge from which future generations of innovative products can emerge.

Using ‘hard’ and ‘soft’ technologies for global new product development

Abstract: This paper reports on a study of the use of ‘hard’ and ‘soft’ technologies as tools for managing global new product teams. ‘Hard’ technologies consist of electronic mail, teleconferencing, fax, video conferencing, and other electronic means of facilitating communication. ‘Soft’ technologies, on the other hand, reflect managerial behaviors that are necessary to deal with the social and behavioral aspects of global new product development. Our study suggests that: The frequency of use of hard technologies is greater for higher versus lower performing global teams. The set of hard technologies perceived to be important is different for higher versus lower performing global teams. How well soft technologies are used is greater for higher performing global teams. Soft technologies are seen as more important than hard technologies. Implications of these findings for managers and future research are discussed.

The use of co‐nomination to identify expert participants for Technology Foresight

Abstract: The United Kingdom has been carrying out a major exercise in the field of Technology Foresight, involving fifteen panels engaged in wide consultation about the future of their areas. The objectives of the Programme are to help set priorities for publicly funded science and technology and to create new working partnerships between science and industry. The paper describes the process by which members of the panels, and those whom they subsequently consulted, were identified. A survey-based technique known as co-nomination was employed, whereby respondents were asked to identify suitable participants and at the same time to profile their own expertise. The process was repeated with those nominated. The patterns of expertise thus revealed are themselves of interest and are used to construct a map of the inter-relationship between the fields covered by the panels.

Innovation via new ventures as a conversion strategy for the Chinese defense industry

Abstract: The Chinese economic system is undergoing a transformation from a centrally planned to a market economic system. The process is difficult for at least two reasons: civilian producers lack innovative capability; R&D intensive defense firms need to shift some of their production to civilian markets. The latter requires management innovations that are difficult to master under present-day conditions. Based on the system characteristics of the Chinese defense industry we discuss its problems in managing technological innovation. We conclude that to facilitate the conversion process to civilian markets Chinese defense firms should be encouraged to split off those activities that are aimed at civilian markets.

Information asymmetries and technological innovation in large engineering construction projects

Abstract: Research on technological innovation shows that information asymmetries between suppliers and buyers constitute a major barrier to the successful introduction of new products. Most of this research, however, puts the burden of overcoming these asymmetries on producers of new products. In the case of large engineering construction projects innovation is often the result of joint problem solving by owners, prime contractors, consultants, and equipment suppliers. In this paper we examine the relationship between innovativeness of large engineering construction projects and internal owner capabilities, degree of control over project, and dependence on external organizations, We use data on power plant construction projects to test hypotheses derived from agency and organization theories of innovation. Our results indicate that organization theories of innovation are on the whole better predictors of the impact on innovativeness of owner's capabilities and relationship to external organizations.

Performance monitoring in R&D projects

Abstract: Project Management Systems can use a variety of tools to model and visualise project status. This paper discusses the application of an integrated approach for project modeling and proposes a new graphic tool called PACT for evaluation of project status. An integrated performance monitoring system comprising many tools, including PACT, was used successfully with multiple advanced technology projects within the Indian Guided Missiles Development Programme. The approach provided a better insight into the status and problems of projects, and enabled management to initiate the most appropriate actions towards better performance.

Strategies for the exploitation of intelligence capital: evidence from Hungarian Research Institutes

Abstract: This paper is based on survey interviews with 64 respondents conducted in four Hungarian Research Institutes during the spring of 1993. The main objective of the research was to assess progress made with the exploitation of intellectual property contained within these bodies. This investigation has two subsidiary goals. First, given a rapid decline in funding provision by the Hungarian government for these organisations, an initial task of the work was to ascertain the actual and potential financial contribution that has been made from consultancy activities and new 'spin off firms. Second, existing 'spin off firms which had emanated from these sources were examined to ascertain if they had potential for providing industrial growth in the local Hungarian economy. The paper concludes, on the basis of detailed evidence, that progress has been disappointing, and moreover, that severe barriers to the achievement of both these goals continue to exist within the Hungarian economy. Coherent planning will be necessary to exploit potentials which are in danger of being lost through the haemorrhaging of staff to foreign employment opportunities.

Developing a ‘receptive’ R&D environment for inward technology transfer: a case study of the chemical industry

Abstract: The purpose of this paper is to show how certain internal organisational activities affect an organisation's ability to engage in the external acquisition of technology commonly referred to as inward technology transfer. The study focuses on a technology trawling exercise conducted by ICI and reveals difficulties in ‘receptivity’ on the part of the receiving businesses. A conceptual framework is developed which identifies four major components of the inward technology transfer process. These are: ‘Awareness’-‘Association’-‘Assimilation’-‘ Application’. Using this conceptual device separate studies are conducted within two large multinational chemical companies in the North West of England. The findings reveal the importance of certain non-routine activities and indicate how successful organisations are able to manage the tension between the need for creative non-routine assimilation processes to generate a ‘receptive’ environment for future growth and efficient routine activities to remain competitive in the short-ierm.

The development of networks between engineering contractors and their clients: the special case of partnering

Abstract: This paper sets out to show how partnering arrangements between engineering contractors in process plant contracting and their process industry clients have led to increasing collaborative contributions at the ‘front end’ of capital asset formation. Partnering arrangements are seen here as formalised long-term contracts between process plant contractors and their clients, intended to apply to engineering and other services in major capital projects over a number of years. While research does not appear to have been affected to a significant extent, partners seem to be interacting increasingly on process development and design. One outcome of partnering is to increase the contractors' involvement in their clients' overall business objectives. As a result of this change in the character of their services, contractors are more inclined to seek opportunities to improve plant efficiency, rather than following given specifications. This interaction of entities with a different focus and, to some extent, different skills is a potential source of innovation which to date has not been realised to any great extent.

The link between managerial style and the job characteristics of R&D professionals

Abstract: Despite a growing body of evidence as to the importance of linking job design to supervisory practices, almost no empirical studies have been conducted on the issue specifically for R&D professionals. The effectiveness of supervisors should differ primarily with respect to their leadership styles. Data obtained from three major types of R&D organizations in Taiwan were used to examine how leadership styles affect the job characteristics of R&D professionals with personal attributes of professionals themselves as the concomitant variables. The leadership styles were defined in terms of a two dimensional construct with the supportive dimension focusing on enhancing relationship and participatory decision making, and the directive dimension emphasizing telling and directing to get tasks accomplished. The results supported most of the hypotheses proposed in the study. In particular, the high correlation of the supportive leadership style and overall job characteristics, across the three types of organizations in the test, demonstrates the importance of incorporating the role of supervision in the R&D job design. The findings have implications for enhancing the leadership effectiveness in managing R&D professionals. Such findings are not only important for R&D managers in newly industrialized countries, but are also valuable to their counterparts in industrialized countries.

Networking in the Russian aerospace industry

Abstract: This paper examines and explains the nature of networking in the Russian aerospace industry under the centrally administered innovation system and the impact on the network of the changes that have arisen post-perestroika. The context, pre-August 1991, was a centrally administered innovation system with the dominance of the military in resource allocation in a ‘shortage’ economy. The network was made up of the ministry of defence, design bureaux, manufacturing plants, research institutes, specialist universities and testing centres and the Aircraft Certification Authority. The focal actor was the aircraft design bureaux. The role and relationships between the actors concerned with aircraft design, development, manufacturing and marketing are determined by the activities that they perform in the seven stage innovation process, the resources available and the strategies that they adopt. Post-perestroika the need for new customers, international certification, western collaboration, and the presence of supply chain disruption and the funding crisis are reshaping the network. The new actors, post-perestroika, include new customers, financiers, the Department of Aviation Industry, International Certification Authorities, the ICAO and ‘nearest and furthest abroad’ subcontractors. A major change has been the linking together of the design bureaux, aircraft manufacturing, engine and avionics plants, subcontractors, financial institutions and aircraft export agencies into joint stock Complexes, or Financial Industrial Groups (FIGS).

Competitive strategies and new technology: an empirical investigation in the UK polymer processing industry

Abstract: This paper examines how companies can achieve competitive advantage by fitting their business strategies to the way in which new technology implementation is managed. In particular, the inter-relationship between strategy, technology and performance is examined. Five strategic types and seven types of technological objectives were used to find combinations which were associated with high performance. It was found that companies pursuing a prospector strategy (a strategy based on product innovation) combined with technological objectives emphasizing marketing, image and technical development were the highest performing group of companies. The lowest performing companies were those where strategy was dominated by price competition. The general conclusion of the paper is that, in order to achieve competitive advantage, companies need to see technology objectives as an inherent part of strategy. The study was carried out on a sample of twenty companies within the polymer processing industry, but the findings should be applicable to companies in other industries, and particularly to smaller companies.

Japanese/U.S. technological competitiveness and strategic alliances in the biotechnology industry

Abstract: This paper analyzes the reasons for Japanese/U.S. collaborations in the biotechnology industry, and considers the question of whether such alliances pose a threat to the North American industry. Japan's technological competitiveness in biotechnology is examined in terms of its strengths and perceived weaknesses. Ways in which Japan is attempting to overcome these weaknesses are identified. As well, the strengths and weaknesses of the North American biotechnology industry are assessed. The paper concludes with recommendations for government and R&D managers on how to preserve U.S. competitiveness. R&D managers must keep abreast of their techno-global competitive environments. While organizations can enter into alliances to improve their competitiveness they must be aware of the dangers of collaboration, and to benefit from their alliances they must enhance their organizational learning. Organizations must be aware of the pitfalls of alliance formation, and any alliance must be viewed in its national context. Last, but not least, managers must be more effective in their management of the processes of technological innovation.

Research and development alliances and accounting

Abstract: Very little is known about the information used by managers to evaluate, plan and control R&D alliances. This paper focuses on the R&D accounting numbers that may be used and points to their inherent limitations and their potential to mislead. Alliance partners, in particular, need a clear agreement on the activities they include in R&D and on the costs they attribute to those activities.

Galileo used to live here.: Tuscany Hi Tech: the network and its poles

Abstract: The paper outlines how networking between smaller companies and larger companies is evolving and how these changes need to be incorporated into policies for regional economic development. The strengths and weaknesses of the Tuscan region are outlined and on the basis of this situation a strategy was devised to exploit its scientific and technological resources. A particular feature of the strategy is the establishment of a new optical fibre communications system linking three university centres, Pisa, Florence and Siena.

Management of capabilities and situations in R&D centres: the matrix of competences

Abstract: The paper presents the first results of research carried out by the authors in the research centre of an important Italian industrial group. The management of the centre is strongly interested in new methodological approaches to identify and to represent individual competences. To satisfy this specific need, the authors suggest a method based on the matrix of competences that is the set of relationships between capabilities and situations. The situations and the capabilities are identified by analysing the judgements that other subjects, internal or external to the organization, express on an individual's behaviour. A sample of fifteen individuals has been investigated in order to identify their individual competences and the most significant situations within the centre. For each individual a network of subjects, the supervisor and some clients and collaborators, has been considered. On the basis of the results, the implications for management are discussed, with particular regard to the design of new procedures for personnel evaluation.

Measuring the economic benefit from R&D: results from the mass, length and flow programmes of the UK national measurement system

Abstract: This study sought to measure the economic consequences of reduced expenditure on specific sections of the UK National Measurement System (NMS), part of the state-funded technological infrastructure. A method was developed which can be adapted to any publicly or privately financed R&D of which the benefits and cost-effectiveness are unclear or contested. The recent interactions between the NMS and industry were investigated empirically. Five mechanisms were found to account for the majority of instances of successful value creation. Several case studies of each mechanism were collected, illustrating their existence beyond reasonable doubt. Each of the cut projects would have been expected to have encouraged growth and profitability in identified sectors of the economy through one or more of these five mechanisms. The effects of the cuts were modelled over 30 years. Compared to the costs of the cut projects projected over the same period, the benefits to the economy were predicted to exceed the costs.