The Role of Location and Regional Networks for Biotechnology Firms in Israel

This article presents results of a study of the Israeli biotechnology sector. The findings of the study show that despite the small geographical size of the country, the Israeli biotechnology industry tends to a great extent to cluster around leading research institutes. Based on a survey of 109 high-tech projects, the study suggests that the relatively weak business background of the entrepreneurs, the fact that most of them have worked at research institutes and that most new biotechnology firms were originated from ideas that came out of universities or research institutes, can provide possible explanations for this geographical concentration. The research emphasizes the relative importance biotechnology entrepreneurs ascribe to networking, both in very early stages as well as in advanced stages of the firm development process. It is argued that although the focus of the network changes over time, both geographically and in content, its links to local research partners are maintained. It is suggested that earmarked regional support policies are crucial to the development of networks required by new biotechnology firms.     

Distant networking: The knowledge acquisition strategies of 'out-cluster' biotechnology firms

This paper addresses the conditions that enable new biotechnology firms (NBF) operating outside major biotechnology clusters, to obtain the resources and competences necessary to emerge and grow. Drawing on in-depth research on the structure, rationale and evolution of scientific and technological relationships of a group of Portuguese NBFs, the paper discusses the knowledge sourcing strategies devised by these firms and the type of factors that favour their adoption. NBFs are found to draw creatively from a diverse combination of local and distant technological relationships and to profit from a number of mechanisms that can reduce the impact of geographical distance on access to partners and on the transmission of knowledge. This behaviour is favoured by factors associated with the strength of the local science base in relevant fields and to the level of international mobility and exposure achieved by local scientists.     

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.     

Networking and learning for tourism innovation: evidence from the Western Cape

ABSTRACT

This paper examines the nature of networking and learning by tourism firms in relation to accessing knowledge for innovation. In particular, the nature of tourism learning and networking, geography of networking linkages, and systemic characteristics of relationships between tourism firms, government agencies, higher education institutions, and other organisations in the Western Cape tourism system are examined. The analysis draws on 182 tourism firm, tourism system, and contextual interviews. This investigation demonstrates that even though tourism firms mostly use internal resources for innovation, external, non-local knowledge is significant for enhancing novel innovation. It is disclosed that whilst local network linkages are dense, loose, and of importance for business and marketing purposes, extra-regional network relationships are imperative for learning in relation to innovation. As further observed, network linkages between local and regional actors for supporting tourism innovation in the Western Cape are generally weak which points to the underdevelopment of local and regional innovation networks or systems. The paper provides planning recommendations for enhancing the competitiveness of tourism firms towards fostering development and growth in the regional tourism economy. Specifically, support for stimulating learning networks as well as strengthening systemic relationships in the Western Cape tourism system are recommended. It is underscored that strategic relationships with non-local partners need to be nurtured towards fostering tourism innovation and enhancing regional competitiveness.     

The Role of Regional Policies in Promoting Networking and Innovative Activity: Evidence from Small Finnish High-tech Firms

The success of high-technology firms is strongly dependent on their innovation capacity and network relationships. There is a growing recognition that few firms are able to innovate in isolation. Cooperation can provide access to a complementary knowledge base and resources, and speed up the innovation process of firms. Regional developers are criticized for their inadequate ability to integrate themselves into the regional networks and innovation processes of firms and their ability to determine firms' needs for innovation and networking. The research topic of this study concentrates on the possibilities of regional developers of influencing the operational environment of high-tech firms through the development of networks and innovation activity of firms. Of particular interest are the micro-level policies and concrete actions by regional developers for meeting the needs of firms. The data used are based on interviews addressed to high-tech firms located in Jyväskylä Science Park in Finland.     

Multi-level Science Policy and Regional Innovation: The Case of the Munich Cluster for Pharmaceutical Biotechnology

Knowledge-based industries tend to develop within regional or local clusters that allow for knowledge spillovers, the generation of a critical mass of complementary competencies and skills as for spatial proximity to academic organizations out of which many highly innovative firms have been founded. The prototype of that development certainly is the biotechnology industry which has emerged since the 1970s first in the US where especially small and medium-sized research companies have been established around leading science bases. Following the example of the US biotechnology industry, public policies in many industrialized countries aimed at stimulating cluster formation in biotechnology. This holds true especially for member states of the European Union (EU) where public policy initiatives have been initiated at different territorial levels. This article refers to the Munich pharmaceutical biotechnology cluster and applies institutional and organizational indicators that have been developed in various systemic analyses of technological development and innovation. It will be shown that reforms of the institutional environment in which the innovative organizations are embedded were crucial for the commercialization of biotechnological research in Germany. These reforms have occurred mostly at the regional and national level, whereas the EU played a role especially in establishing the regulatory framework for the biotechnology industry. Organizational indicators will be applied in order to assess the modes of knowledge production within the cluster.     

Building a Knowledge Economy in Ireland Through European Research Networks

The success of the Irish economy, and the technology sector in particular, over the last decade has been well noted. This article seeks to uncover the role that Irish participation in the ESPRIT programme of the European Union's Fourth Framework Programme has played in the building of Ireland's knowledge economy through its promotion of research collaboration. The primary goal of ESPRIT was the promotion of networking between organizations of similar interest across Europe, and in this article we examine the effects of the imposition of these more formal networks on organizations. The shift towards the promotion of more informal networks among European organizations in the pursuit of innovation is highlighted. After looking at Irish participation in the programme, we gauge the success of various projects and partners, and note the differences between networks, which were in place before participation in ESPRIT, where personal networking was evident, and the more formal networks created by ESPRIT. What becomes most obvious from analysing Irish participation is the conscious move on the part of those networks with a prior existence to advance their own research agenda by means of ESPRIT.     

Knowledge and Information Networks in an Italian Wine Cluster

The aim of this article is to analyse the nature and extent of knowledge and information networks in an Italian wine cluster. Moreover, the relation between firms’ characteristics and the knowledge network structure is also explored. The empirical findings show that knowledge is unevenly distributed in clusters and that networks of knowledge and information differ a great deal in terms of their structure. In fact, knowledge flows are restricted to a tightly connected community of local producers, differing in terms of knowledge assets, innovation behaviour and overall economic performance with respect to the rest of the firms in the cluster.     

Assessing the Importance of Local Supporting Organizations in the Automotive Industry: A Hybrid Dynamic Framework of Innovation Networks

Abstract

The advancement of knowledge on networks entails acknowledging the heterogeneity of their participants, more precisely, the organizations that lie beyond the scope of the activities of firms. Adopting a dynamic perspective of networks, and considering different types of innovation exchanges, we propose a hybrid and wider notion of industry which implies taking account of a set of local supporting organizations (LSOs) in domains such as research and technology, production factors, consultancy and training, and public support. Based on a rich data set built from face-to-face interviews with Portuguese automotive organizations, which resulted in a network comprising 867 organizations, we apply social network analysis techniques to analyse the structure, content and dynamics of the networks. The evidence gathered unveiled huge industry turbulence and significant changes in the boundaries of the Portuguese automotive networks over a 20-year period, with the emergence (and decline) of different prominent organizations. Specifically, following AutoEuropa major foreign direct investment (in 1995), the analyses reflect a clear increase in connectivity within the industry (from 524, before 1995, up to 2327 connections after 1995), with greater involvement among suppliers and between suppliers and LSOs, with the latter achieving top positions in the ranking of innovation networks.     

The Role of Personal Factors in the Location Decision of Software Services Start-up Firms

This paper explores the factors which influence the business location decisions of start-ups, focusing in particular on the role of personal factors. Established explanations of industry location emphasize proximity to firms in the same or related industries and proximity to a wider set of business services, though recent research suggests that personal factors may play an important role in explanations of industry location—particularly in technology-enabled sectors. A survey of 97 new firms, founded between 2008 and 2012, in the Irish software services sector, shows that the business location decision is influenced by the personal motivation of entrepreneurs to attain a desired quality of life, and that this outweighs economic factors such as proximity to firms within the same or related industries, proximity to a broader set of supporting business services, infrastructure or the availability of government support schemes. Personal factors are particularly important to firms located outside the Dublin metropolitan area and to home-based businesses. This has important policy implications for national and regional governments seeking to encourage entrepreneurship in technology-enabled service sectors.     

What Makes SMEs more Likely to Collaborate? Analysing the Role of Regional Innovation Policy

The last 20 years have witnessed the diffusion of regional innovation policies supporting networks of innovators. The underlying aim of these policies is to encourage firms, particularly small and medium-sized enterprises (SMEs), to undertake collaborations with organizations possessing complementary knowledge. Focusing on a set of SMEs that have participated, over time, in several innovation networks funded by the same regional government, the paper investigates how their relationships have evolved with respect to the following aspects: (i) reiteration of pre-existing relationships as opposed to experimentation with new relationships; (ii) collaboration with organizations possessing complementary rather than similar knowledge and competencies; (iii) creation of local relationships rather than experimentation with extra-local collaborations; (iv) reliance upon intermediaries to connect with other organizations. Our findings reveal that the involvement in these policy-supported networks changed the firms' relational patterns, leading them to collaborate with a wider variety of agents than those with whom they were linked before the policies. Sectoral heterogeneity had a negative effect on the probability of collaborating, while co-localization increased the likelihood of collaborating. Mutual involvement with intermediaries also had a positive effect. However, in the case of firm-to-university relationships only specialized intermediaries were likely to perform a positive role and, therefore, encourage networking.     

Regional economies,interactive television and interorganizational networks: A case study of an innovation network in Baden‐Württemberg

This paper explores attempts to establish a network of firms and organizations to develop the multimedia industry at a regional level. The paper sets out its review in the context of the regional economy, and then details the nature of the networking process under investigation. An evaluation of networking in this context is provided, based on detailed empirical research. Lessons are drawn from the experiences of seeking economic modernization through organizational networks.     

Managing the Global–Local Dimensions of Clusters and the Role of “Lead” Organizations: The Contrasting Cases of the Software and Medical Technology Clusters in the West of Ireland

The purpose of this paper is to investigate “leading” firms in an industrial cluster to understand how the balance between global and local dimensions of the cluster can be managed. Two cases of industry clusters, the software and medical technology clusters in the west of Ireland, are employed to examine how certain organizations can occupy a “lead” position and how—if at all—such organizations generate an agglomerative effect in a cluster. In the case of the medical technology cluster, the study shows that when large firms enact a leading role by influencing the technology trajectory of the region and stimulating the local dynamic, they can generate agglomerative effects, thereby enhancing the relevance and sustainability of clusters. Most significantly, it shows how leading organizations act as an important facilitator in connecting the global and local dimensions of clusters even in the absence of extensive local formal linkages. At the same time, the case of the software cluster reveals that the presence of large organizations alone does not inevitably stimulate such a clustering effect and emphasizes that appropriate characteristics and conditions need to be in place. Overall, while the study substantiates previous research on the significance of temporary and organized forms of proximity, it also shows the value that permanent geographical proximity can have, thereby contesting recent research that downplays the relevance of the clustering institution (e.g. Lorentzen, A. (2007) The geography of knowledge sourcing—A case study of Polish manufacturing enterprises, European Planning Studies, 15, pp. 467–486; Wickham, J. & Vecchi, A. (2008) Local firms and global reach: Business air travel and the Irish software cluster, European Planning Studies, 16, pp. 693–710).     

Social networks and the transnational reach of the corporate class in the early-twentieth century

This paper explores the character, density and likely importance of connections between directors of a sample of 12 early-twentieth century British multinational companies. Drawing on the notion of ‘gentlemanly capitalism’, a reconstruction of multiple and interlocking directorships for 1899–1900 and 1929–1930 indicates that a complex network existed that comprised links, respectively, to 255 and 497 companies. We explore the social, cultural and political characteristics of the directors of our sample and argue that the ways in which members of this group interacted with each other would have influenced business attitudes, facilitated transfers of knowledge and promoted interdependencies, thereby shaping commercial behaviour. We argue that the directors of early multinationals formed the kind of definable ‘power geometries’ within the wider corporate elite that have been identified amongst today's business elites. Our results indicate that a distinct and increasingly dynamic multinational corporate community existed in the early 1900s, which was in many respects like its modern counterparts. A key finding is that the complexity of dyadic connections between directors and their personal networks of contacts increased markedly between 1899–1900 and 1929–1930.     

Guilty by Association: A Cross-industrial Approach to Sourcing Complementary Knowledge in the Uppsala Biotechnology Cluster

A wide range of industrial studies recognize the tendency of similar and related economic activities to co-locate in so-called industrial systems or clusters. While a cluster is defined by its cross-industrial relations the supporting and complementary role of cluster actors is seldom fully explored. This study will focus on the dynamics of cluster relations and give an account for the complementary nature of clusters by analysing anchor firms and complementary agents (such as specialized service providers and institutions for collaboration) in the Uppsala biotechnology cluster in Sweden. The empirical data used involves a triangulation of interview, survey and individual-based register data based upon a mapping of cluster actors active in 2002 and 2003. It is shown that both the formerly dominant pharmaceutical company and the local university have actively taken the role as anchor firms/organizations creating a local and dynamic milieu for biotechnology activities. Furthermore, it is shown that the local cluster consists of a variety of complementary agents contributing to knowledge spillovers and cluster competitiveness.     

The Evolution of Biotechnology in Three Continents: Schumpeterian or Penrosian?

This Editorial introduces the Special Issue on ‘Biotechnology Clusters and Beyond’. Drawing on the interventions of five commissioned articles from Canada, Germany, Israel, the UK and the US it suggests that biotechnology clusters are interesting and important intellectually and for policy deliberation. They pose questions about basic cluster theory because localized networks, though intense, may not be as extensive as global ones in firm practices, especially as these evolve over time. Moreover, innovation is more deeply embedded in the publicly funded science base than for ‘Porterian’ clusters. Regarding innovation, biotechnology is also less obviously Schumpeterian, there being little market-driven ‘creative destruction’, and is arguably, with its strong emphasis on both large- and small-firm ‘capabilities’—Penrosian—an emphasis in clustering research and applications that warrants further investigation. Finally, at the specific technology-exploitation phase, market interactions assert themselves over milieu characteristics because scientists know the value of their discoveries and there is accordingly high appropriability associated with such knowledge capabilities.     

Knowledge Networks as a Regional Development Resource: A Network Analysis of the Interlinks between Scientific Institutions and Regional Firms in the Metropolitan region of Hanover,Germany

The debate on regional innovation potentials has concentrated in recent times upon the topic of regional knowledge networking. This article presents the findings of the first phase of a detailed network analysis of the cooperation relations between scientific institutions and firms in the “metropolitan region Hanover-Brunswick-Göttingen”. The research concentrated on the regional and supra-regional cooperation relations of approximately 500 science establishments of the region, including their interlinks with private sector firms. This analysis of a polycentric metropolitan region's knowledge networks in different fields of competence produced detailed information on the density of knowledge interlinking within the region, on the degree of connectivity between the region's scientific institutions and private sector firms, and on central network nodes within the regional innovation networks. The case study exemplifies the methodical approach of a regional network analysis and emphasizes the role of knowledge networks as a development resource which is of particular relevance to the region's innovation capacities.     

Start-up factories,transnational entrepreneurs and entrepreneurial ecosystems: unpacking the lure of start-up accelerator programmes

This paper examines the role of accelerator programmes in promoting transnational entrepreneurship. Designed to assist the growth of start-ups by providing seed finance and structured entrepreneurship support, these programmes are now a prominent feature in many entrepreneurial ecosystems around the world. Drawing on in-depth qualitative evidence focused on one particular programme, the paper shows accelerators play an important intermediary or ‘brokerage mechanism’ providing start-ups with enhanced relational connections and networks. Transnational entrepreneurs attracted to these programmes are highly focused on exploiting these networks whilst maintaining multiple levels of embeddedness in various contexts to maximize the opportunities afforded by accelerators. While many governments are attempting to replicate accelerators programmes within the public sector, the paper concludes that such attempts may prove problematic within weaker entrepreneurial ecosystems.     

Commercializing Science in Europe: The Cambridge Biotechnology Cluster

The article examines the variety of linkages firms have established with university science. These include using universities as a source of ideas for start-ups, scientific collaboration between firms and laboratories, the role of scientists on the scientific advisory boards of firms, and the role of universities in supplying firms with a labour market for talented scientists. These linkages are plentiful across Cambridge area biotechnology firms. However, and perhaps surprisingly, our evidence shows that a key actor, the University of Cambridge does not dominate the scientific linkages of the area's firms. A large percentage of Cambridge's firms do not derive from its university. The majority of scientific collaborations are not with University of Cambridge laboratories, nor do Cambridge scientists dominate the scientific advisory boards of firms. Moreover, the majority of scientists within area biotechnology firms appear not to have left University of Cambridge laboratories to move to industry.