Strategic Considerations for Innovation and Commercialization in the US Biotechnology Sector

This paper examines the importance of alliances as an innovation strategy utilized by US biotechnology firms. In doing so, the role of alliances with universities vis-à-vis alliances with industrial companies is emphasized. The biotechnology sector is dominated by few large and many small firms. The small firms are research focused or technology developers. Several large firms are now integrated biopharmaceutical companies. Very few small firms can survive without strengthening their relationships with universities, biotechnology or pharmaceutical or other large companies. These relationships range from licensing agreements, export–import connections to various forms of alliances for R&D, product development and marketing. Large firms supplement in-house R&D by acquiring research products and/or new technologies from small firms as well as universities. A survey of US biotechnology companies is used to show the emergence of alliance relationships, which continue to highlight university linkages, emphasize connections of biotechnology firms with other biotechnology entrepreneurs, and an ongoing effort to build a synergistic relationship with pharmaceutical or other large companies. Most linkages are not confined to the local area; the main locational attribute is the science base or the labour market.     

Determinants of the Uneven Regional Participation of Firms in European Technology Programmes. The 'Low R&D Trap'

Technology is of key importance to the growth of regional firms and economies. Research has shown the association between low technology development or take-up and regional disparities. Hence technology policy is moving closer to the heart of regional policies. European innovation programmes are intended to involve firms, large and small, in international technology research and development networks. The paper focuses on the involvement of Spanish firms in such programmes. Participation tends to be low if business R&D, presence of large firms, and the development of regional innovation systems are also low. Creation of R&D infrastructure through the Structural Funds has now to be prioritized at EU level and also define a new scheme of sectoral priorities in order to support R&D innovation activities in fields diverse from high-tech, if regions are to escape the 'low R&D trap'.     

Demographics,Innovative Outputs and Alliance Strategies of Canadian Biotech Firms

This paper focuses on the characteristics of biotech firms that consider alliances as critical to the innovation and commercialization of biotech-based products. First, we consider alliances with both universities and industries. Next, we examine attributes for those firms who consider proximity to universities as critical compared with others that do not put high value on physical proximity. Our study is informed by the literature on the biotechnology industry as well as studies on absorptive capacity, alliances and clusters in exploration and exploitation of knowledge, research and technologies. We analyse data based on a 2002 survey of Canadian biotech firms and find that while collaborative arrangements with universities are the most common among our sample firms, those who assign a high value to such linkages are not necessarily always the biotech firms experiencing commercial success.     

Delocalization Patterns in University–Industry Interaction: Evidence from the Sixth R&D Framework Programme

Increasing university–industry interaction (UII) and university contribution to the local economy are compatible—conventional wisdom would say. However, similar to other university activities, interaction with industry may be limited due to a lack of absorptive capacity in local firms. The data of those participating in the European Union's (EU's) Sixth R&D Framework Programme (FP6) were used to obtain values for the number and, notably, the budgets of UII projects at the regional level for the EU27. Two types of interactions were considered: inside and outside the region. Our analysis indicates that universities from regions whose firms have low absorptive capacity participate more often in FP6 projects with firms outside the region. Our results highlight the value of policies that facilitate firm R&D to enhance collaboration with regional universities.     

Managing Long Distance and Localized Learning in the Emilia Romagna Life Science Cluster

The paper provides some empirical evidence of the effectiveness of the “open innovation” model in the life science cluster of Emilia Romagna (a region of Italy), comparing the network of R&D collaborative activities in public research organizations (PROs) and the network linked to R&D collaborative activities in private firms. By presenting the main results of a field research in the life science sector in Emilia Romagna, we are contributing to the recent debate focused on the crises of the old “closed innovation” model and the rise of the “open innovation” model. Our survey consists of both primary data deriving from face-to-face interviews with researchers and entrepreneurs, and secondary data extracted from the Internet, the PubMed database, and from the European Patent Office. Our work is based on the analysis of a representative sample of 30 research groups in PROs, 2173 scientific articles published by the interviewed scientists, and a representative sample of 78 private firms.     

International R&D Cooperation between Low-tech SMEs: The Role of Cultural and Geographical Proximity

Although there is a considerable amount of empirical evidence on inter-firm collaborations within technology-based industries, there are only a few works focussing on R&D cooperation by low-tech firms, especially small and medium-sized enterprises (SMEs). Providing further and new evidence based on a recently built database of CRAFT projects, this study analyses the relationship between technology and proximity in international R&D networks using HOMALS and statistical cluster techniques. The resulting typology of international cooperative R&D projects highlights that successful international cooperative R&D projects are both culturally/geographically closer and distant. Moreover, and quite interestingly, geographically distant projects are technologically more advanced whereas those located near each other are essentially low-tech. Such evidence is likely to reflect the tacit-codified knowledge debate boosted recently by the information and communication technology (ICT) “revolution” emphasized by the prophets of the “Death of Distance” and the “End of Geography”.     

Persistence of innovative activities in times of crisis: the case of the Basque Country

By drawing on a large sample of Spanish manufacturing and service sector firms, the changes in firms’ innovation expenditures that have taken place since the onset of the 2008 economic crisis are analysed, as is the relationship between such changes and the location of the company. Special focus is placed on firms in the Basque Country. Compared to other Spanish regions, the Basque Country differs in terms of its fiscal status, its earlier experience of crises, its innovation performance and its greater focus on innovation-related policies. Our results show that the impact of the crisis on firms’ innovation expenditures in the Basque Country has indeed differed from that in comparable Spanish regions. Even after controlling for sectoral differences and for detailed characteristics at the firm level, firms with R&D employment in the Basque Country showed a significantly lower probability of abandoning innovation activities and even a somewhat higher probability of increasing their innovation efforts. This regional effect is especially significant for small and medium-sized enterprises.     

Challenges to Bridging Discrepant Knowledge Bases: A Case Study of the Norwegian Centre for Offshore Wind Energy

From a theoretical perspective, it is possible to enhance the innovation of firms and institutions by combining the analytic (scientific) knowledge base of research and development (R&D) institutions with the synthetic (practical) knowledge base of industries. Such combinations of knowledge are also believed to support regional development. One such initiative to bridge knowledge from the R&D sector and industry is the Norwegian Centre for Offshore Wind Energy (NORCOWE). However, as our case study shows, it is hard to bridge knowledge from these two partner groups. We found that this is mainly because of differences in the partners' timelines (long versus short), their attitudes toward knowledge (research based versus experience based), application of the knowledge (knowledge per se versus commercialization), and organizational dimensions (linear/closed process versus interactive/open process). These differences show that the knowledge bases of these two groups may not just be different; they can also be seen as discrepant. We also argue that the NORCOWE initiative is influenced by a “policy push” logic. This implies that the initiative was not properly embedded in the industrial or R&D institutions before being launched, but was instead driven by a political will to promote the development of a new renewable energy source.     

Context and the role of policies to attract foreign R&D in Europe

This paper explores the effectiveness of policies ‘in’ attracting the foreign research and development (R&D) of multinational enterprises (MNEs) to specific countries in Europe. We develop a macroeconomic investigation covering 29 European countries during the period between 1990 and 2012 in order to address: (a) whether the provision of direct financial support for business R&D is effective for the attraction of foreign R&D; (b) whether direct support is more effective than indirect support for this purpose and (c) whether the link between direct financial support for business R&D and the foreign R&D of MNEs is conditioned by the context within which the support is provided. The results of the analysis show that, first, the provision of direct financial support is generally effective for the attraction of foreign R&D by MNEs. Second, direct support for business R&D is more effective for this purpose than indirect support. Third, the provision of direct financial support for business R&D yields greater returns in contexts that are more socio-economically suitable for knowledge-intensive, innovative activity.     

The challenge of breaking the academia–business firewall in Czechia: comparing the role of differentiated knowledge bases in collaborative R&D projects

Contemporary innovation processes increasingly involve a large number of networked actors, and cross-fertilization between knowledge institutions and firms has thus become a significant driver for innovation. Important insights into the differing nature of research and development (R&D) collaboration in particular sectors have been provided by research inspired by the knowledge-base approach embedded within innovation system (IS) theory. This study aims to contribute to this body of literature by applying the concept of differentiated knowledge bases to the former state-socialist countries, where the IS operates through a firewall between academia and industry. Data on collaborative R&D projects co-financed by public resources have allowed a detailed analysis of the nature of collaboration networks, revealing emerging patterns of academia–industry linkages and questioning the propositions stemming from the knowledge-based approach. The study concludes that collaborative science–industry networks show a very distinct topography when analytical and synthetic knowledge is compared.     

Fostering place-based innovation and internationalization – the new turn in German technology policy

Since the mid-1990s German technology policy has experienced a paradigmatic shift from standard grant schemes towards a region-oriented and competition-based R&D policy. Currently, a new policy experiment, the InterClust contest, is under way, trying to simultaneously foster place-based innovation, R&D internationalization and the internationalization of innovative places. The current paper analyses the new policy, relating it to the recent literatures on heterogeneous firms and on cluster-life cycles, and presents results from a firm survey performed in 21 winner regions of InterClust. Findings show that the new funding scheme takes insights from recent theoretical developments into account and addresses important impediments to firm and cluster internationalization. Although it is too early for an overall assessment, it is argued that the long-term impact will critically depend on the inflow of heterogeneous knowledge and the strength of intra-regional mobilization effects.     

The Spatial Patterns of Networks,Hierarchies and Subsidiaries

This article reviews evidence and arguments linking the networking behaviour of firms with geographic distance, before examining the spatial relationships of electronics firms in the three major electronics centres in Spain. The focus is on the spatial pattern and extent of different types of inter-firm relations. Based on the analysis of 184 surveyed establishments, displaying different ownership and organization characteristics, the results show that while regional linkages are important, significant extra-regional linkages are also maintained by firms in regional clusters. The spatial extent of linkages depends on the mode of relations; arm's length, network and hierarchy relations show different spatial patterns, as do different types of cooperation. The importance of extra-regional linkages also varies with firm- and plant-specific characteristics. Extra-regional linkages are more common among larger and more R&D-intensive firms, firms with greater presence in the rest of the country and firms with more experience of cooperation and more stable relationships.     

Comparative localization of academic and industrial spillovers

This paper studies geographic localization of academic and industrialknowledge spillovers. Using data on US research and developmentlaboratories that quantify spatial aspects of learning aboutuniversities and firms as well as the locations of closely affiliateduniversities and firms, I find that academic spillovers aremore localized than industrial spillovers. I also find thatlocalization is increased by nearby stocks of R&D, but reducedby laboratory and firm size. These results on localized academicspillovers reflect the dissemination of normal science and theindustry–university cooperative movement, which encouragefirms to work with nearby universities, so that geographic localizationcoincides with the public goods nature of academic research.This situation contrasts with relations to other firms, wherecontractual arrangements are often needed to access proprietaryinformation, often at a considerable distance.     

Varieties of Innovation and Welfare Regimes: The Leap from R&D Projects to the Development of City-regions

In the varieties of capitalism, welfare capitalism, and systems of innovation literatures, the university is a critical actor as public employer, trainer and provider of several public goods. However, there is relatively weak enquiry into the spatial and institutional characteristics of university-led economic development and a relative neglect of the political economy and organizational features of embedded R&D projects in urban and regional planning. We argue that technical projects, far from being stand-alone entities, have taken on the broad characteristics of the university and city-regional development mandate in where they reside. The article is based on an exploratory study of university–industry R&D projects in six city regions of Finland. We show that: (a) the shifting role of universities reflects a changed context for the welfare state in which the “public” debate occurs; (b) These create distinct issues of legitimacy and coalition-building in local economic planning which give rise to diverse regional interpretations of single technology programmes; (c) We categorise three general types of models of R&D projects in universities and propose tentative categories of contributions to “public knowledge”. This diversity of interpretations and outcomes leaves us optimistic regarding the ability of city-regions to adapt and plan for the future against a changing welfare state that shapes the university's role, yet more cautious about any clear-cut “public knowledge” emerging from such technical projects.     

Big Pharma's Internationalization of R&D to China

China's increasing integration into the global pharmaceutical value chain is occurring at a time when big pharma's traditional R&D model has entered a period of crisis, and when China faces significant challenges in providing healthcare for its huge and rapidly ageing population. Despite China's ambitions of promoting its own pharmaceutical sector, it is likely to continue to depend for some time on significant contributions from foreign companies. While this situation provides considerable opportunities for big pharma companies to expand their markets in China, they are also hoping that offshoring aspects of their R&D to China may contribute to reconfiguring their current R&D model with its weak record of producing new drugs. Drawing on interviews with a small number of pharma R&D centres in Shanghai, patent analyses and industry reports, we provide insights into both the challenges and the opportunities associated with the early stages of establishing such centres in an emerging region with a rapidly growing market. This paper contributes towards a more nuanced view of the internationalization of R&D in emerging regions.     

Mapping the Geography of R&D: What Can We Learn for Regional Innovation Policy in the Czech Republic and Beyond?

Administrative regions do not necessarily correspond to areas that are homogenous in terms of innovation intensity. Although this has been recognized in the literature, quantitative evidence that explicitly considers this problem is rare. Using spatial exploratory analysis on detailed regional data derived from a census of R&D performers in the Czech Republic, we identify local spatial clusters of R&D activities and assess the extent of their (mis)match with administrative borders. Overall, the results support the arguments for regionalization of innovation policy. However, the existing policy units do not appear well suited for this purpose. On one hand, there is a need for policy coordination between multiple administrative regions. On the other hand, however, there are diverse patterns within them. Similar problems are likely to haunt the regionalization process in many other countries, which is alarming, as the regional accent of innovation policies becomes ever more vehement over time.     

R&D Cooperation in Innovation Systems—Some Lessons from the European Regional Innovation Survey (ERIS)

Our paper summarizes some of the main results of the European Regional Innovation Survey (ERIS) as far as they are discussed in this special issue of European Planning Studies . The overall target of the ERIS project is a quantitative and qualitative assessment of determinants crucial for the innovation potential of any region, i.e. innovative and non-innovative manufacturing firms, business services and research institutions, as well as the innovative linkages and networks between these actors. Empirical research is based upon almost 8600 questionnaires collected in 11 European regions. Results confirm some of the common hypotheses on the relationship between space and innovation networks but others are contrary to existing scientific knowledge. Obviously the impact of national innovation systems on the innovation activities of manufacturing firms in a given European region is-at least-as strong as the impact of the respective regional innovation system. The spatial range of innovative linkages significantly depends on the size, the type of the cooperation partner, the R&D intensity and the industry of the analysed manufacturing firm. For example, the higher the technology intensity of the industry, the greater is the need of each firm to use intraregional knowledge via innovation linkages. It is therefore an important task in regional innovation policy to promote network-building among firms and other actors of a regional innovation system and to interlink these intraregional networks with national and international knowledge sources.     

Evolution of Knowledge Intensive Services in a High-tech Region: The Case of Hsinchu,Taiwan

Communication costs have reduced markedly owing to improvements in communication technology. Despite this development, face-to-face interactions facilitated by geographic agglomeration remain important in high-tech innovation activities owing to the ambiguity and uncertainty related to new knowledge. Consequently, location remains a major influence on global strategies of transnational companies, and enables global cross-border divisions of labour in high-tech industries. On the one hand, this phenomenon transforms the geographic distribution and structure in industry; on the other hand, it creates demand for strategic functions in management and organizational innovation. The emergence, introduction and operation of such functions all rely on the support of specialized service industries. During the two decades of development of the Hsinchu Science-based Industrial Park (HSIP), the area around HSIP saw the gradual formation of a distinctive and strong network including production, incubation and research and development (R&D) activities. Within this network, knowledge intensive services provide a crucial interface between the supportive environment and technological infrastructure. This investigation analyses the interactions, geographic transformation and distribution between HSIP firms and producer services around HSIP, as well as the coordination between HSIP firms and research institutions. This investigation found that competition strongly influences the development and geographic transformation of producer services. Together with different industrial resources, they formed production networks. Such networks caused the development and geographic transformation of the Hsinchu area, and thus further influenced the growth of knowledge-intensive service businesses.     

Producer Services,Transaction Activities,and Cities: Rethinking Occupational Categories in Economic Geography

Applying insights from 'new institutional economics' to classify economic activities or occupations avoids some problems for which conventional classifications of services and particularly producer services have long been criticized. In institutionalist thinking the mixture of organizational forms such as market, hierarchy or network in an economy is mainly determined by transaction costs, which can in turn be correlated to specific 'transaction activities'. Typical transaction activities can be identified in markets and in other institutional arrangements, allowing the classification of real economic activities, occupations or firms as transactional or not. Many other commonly applied labels like informational related activities appear comparatively imprecise. This categorization and differentiation sheds new light on discussions about spatial development, from the world city debate to claims about the presumed role of high-tech occupations in metropolitan areas. It is argued that transactional occupations, especially those requiring higher qualifications, can be expected to be highly concentrated in larger agglomerations. In contrast, many non-transactional occupations though requiring high qualifications and usually also regarded as basic for metropolitan economies, like parts of R&D, are not necessarily concentrated there.     

Regional technology policy and factors shaping local innovation networks in small German cities1

Local innovation networks are considered to be important to innovation and technological change and to growth prospects of regions and cities in Germany. When analysing the local (or regional) innovation system, one should consequently not only investigate horizontal and vertical relations among firms but also the contacts with universities and other research institutions. Furthermore, the role of government agencies and interest groups that provide financial support as well as commercial and technical information should also be taken into account. However, the review of relevant theoretical and empirical investigations related to the German experience shows that such innovation and R&D cooperation networks appear to be less significant than expected. In general various regional technology policy measures adopted in German states (the provision of research infrastructure, establishment of technology centres, innovative small and medium sized enterprises support programmes, etc.) have been more successful in economically better-off large cities than in the rural areas. Apart from offering a critical review of relevant theoretical and empirical research, this study introduces the present regional technology and R&D promotion policies in German states and examines the local innovation systems, taking Landshut as an example.