public research and industrial innovations in germany this paper deals with the effects of publicly funded research at universities polytechnics and federal research labs on industrial innovations in germany we discuss the characteristics of companies that benefit from the findings of public research institutions in questioning 2 300 companies we found that less than one tenth of product or process innovating firms introduced innovations between 1993 and 1995 that would not have been developed without public research these new products amount to approximately 5 percent of all new product sales regressions show that firms own r d support the ability to absorb the findings of public research and turn them into innovations contrary to the widely held opinion that proximity to public research institutions does promote collaboration between firms and public research and increase the amount of received knowledge spillovers we found no higher probability of publicly supported innovations for firms in germany that are located near universities or polytechnics

cost reduction competition and industry performance in many markets firms compete over time by expending resources with the purpose of reducing their costs sometimes the cost reducing investments operate directly on costs in many instances they take the form of developing new products that deliver what customers need more cheaply therefore product development can have the same ultimate effect as direct cost reduction in fact if one thinks of the product as the services it delivers to the customer in the way that lancaster pioneered then product development often is just cost reduction

different shades of green global oil and gas companies and renewable energy abstract the long term energy transition from fossil fuels to renewable energy raises critical questions about the future of oil and gas firms this study asks why some oil and gas firms are committed to renewable energy while others continue to maintain a distinct fossil fuels focus with little or no investment in renewable energy the analysis reveals that there is a wide range in the degree to which oil and gas firms have invested in renewable energy some firms have no investments and others have investments in multiple renewable energy technologies across many countries we examine a combination of country based institutional factors and firm based knowledge and experience factors that could impact oil and gas firms decisions to invest in renewable energy activity regulative and normative pressures impacted renewable energy investments as did environmental citizenship and the degree of internationalization the study s integration of country level factors with firm level experiences provides insights into how firms are dealing with the energy transition by examining areas such as sustainability and regulatory policy the paper sheds light on the ways in which scholars can tap into measures and methods that can extend traditional ib research

asset stock accumulation and sustainability of competitive advantage given incomplete factor markets appropriate time paths of flow variables must be chosen to build required stocks of assets that is critical resources are accumulated rather than acquired in strategic factor markets barney barney j 1986 strategic factor markets expectations luck and business strategy management sci october 1231 1241 sustainability of a firm s asset position hinges on how easily assets can be substituted or imitated imitability is linked to the characteristics of the asset accumulation process time compression diseconomies asset mass efficiencies inter connectedness asset erosion and causal ambiguity

firm size and r d intensity a re examination using data from the federal trade commission s line of business program and survey measures of technological opportunity and appropriability conditions this paper finds that overall firm size has a very small statistically insignificant effect on business unit r d intensity when either fixed industry effects or measured industry characteristics are taken into account business unit size has no effect on the r d intensity of business units that perform r d but it affects the probability of conducting r d business unit and firm size jointly explain less than one per cent of the variance in r d industry effects explain nearly half the variance two sets of well known hypotheses are associated with the later work of joseph schumpeter the first concerns the effects of market concentration on research and development investment and on innovative performance the second bears on the effects of firm size on r d and innovation in a recent paper levin cohen and mowery 1985 we re examined the first set of hypotheses simple regressions at the line of business level replicated the established findings that both r d intensity and innovative performance first increase and then decrease as industrial concentration rises the effect of concentration however was sharply attenuated when we controlled for interindustry differences in technological opportunity and in the appropriability of returns from new technology our results suggested that it is probably unwarranted to conclude that market concentration favors r d investment and innovation in this paper we investigate the schumpeterian hypothesis that large size is conducive to r d investment this relationship has been studied at least as intensively as the link between concentration and r d but our approach is novel in two respects first using data collected by the federal trade

carbon footprint of a university in a multiregional model the case of the university of castilla la mancha abstract the increasing concern about the environmental performance and sustainability of firms and organizations also involves educational institutions if universities aim to become leaders in sustainability aspects they must adopt strategies that involve the entire university system as a useful tool for this purpose the objective of this study was to calculate the carbon footprint for the university of castilla la mancha for the period 2005 2013 the calculation of the university carbon footprint was accomplished through a hybrid environmentally extended input output model in a multiregional framework which constitutes a novelty of the analysis the proposed tool also allows the calculation of the potential for emissions reduction of abatement measures the carbon footprint induced by the consumption of university employees wages is also undertaken as a way to increase awareness and university outreach to society the results show the relevance of both imports and indirect emissions and highlight the significance of energy related emissions enabled by sectors such as renting electrical and optical equipment manufacturing or even services

academic research and industrial innovation the purpose of this study is to estimate the extent to which technological innovations in various industries have been based on recent academic research and the time lags between the investment in recent academic research projects and the industrial utilization of their findings because no attempt to my knowledge has been made to estimate the social rate of return from academic research we also make some rough and tentative estimates of this sort while the results are subject to many limitations discussed below they should be of interest to public policy makers concerned with science and technology as well as to

the evolving state of the art in technology transfer research revisiting the contingent effectiveness model the purpose of our study is to review and synthesize the rapidly evolving literature on technology transfer effectiveness our paper provides a lens into relatively recent work focusing particularly on empirical studies of us technology transfer conducted within the last 15 years in doing so we update and extend the contingent effectiveness model of technology transfer developed by bozeman 2000 specifically we include the growing interest in social and public value oriented technology transfer and thus the contingent effectiveness model is expanded to consider this literature we categorize studies according their approaches to measuring effectiveness draw conclusions regarding the current state of technology transfer evaluation and offer recommendations for future studies

sectoral patterns of technical change towards a taxonomy and a theory abstract the purpose of the paper is to describe and explain sectoral patterns of technical change as revealed by data on about 2000 significant innovations in britain since 1945 most technological knowledge turns out not to be information that is generally applicable and easily reproducible but specific to firms and applications cumulative in development and varied amongst sectors in source and direction innovating firms principally in electronics and chemicals are relatively big and they develop innovations over a wide range of specific product groups within their principal sector but relatively few outside firms principally in mechanical and instrument engineering are relatively small and specialised and they exist in symbiosis with large firms in scale intensive sectors like metal manufacture and vehicles who make a significant contribution to their own process technology in textile firms on the other hand most process innovations come from suppliers these characteristics and variations can be classified in a three part taxonomy based on firms 1 supplier dominated 2 production intensive 3 science based they can be explained by sources of technology requirements of users and possibilities for appropriation this explanation has implications for our understanding of the sources and directions of technical change firms diversification behaviour the dynamic relationship between technology and industrial structure and the formation of technological skills and advantages at the level of the firm the region and the country

the economic impacts of academic spin off companies and their implications for public policy abstract the importance of academic research ar to economic growth is widely accepted but quantification of incremental impacts and their attribution to any one country s expenditures is difficult yet quantitative justification of government ar funding is highly desirable we therefore attempt to quantify one impact which can be directly and causally attributed to one country s funding spin off companies we focus on ar in the non medical natural sciences and engineering nsexm in a whole country canada applied disciplines are sometimes assumed to be the most commercializable so we also separately investigate an especially basic science physics using a novel methodology we estimate the lifetime impacts of companies spun off directly from ar performed in 1960 1998 and compare the impacts with all government funding direct and indirect over the same period this picks up virtually all funding and most company formation since wwii up to 1998 such long term studies are rare but essential since we show that successful spin offs grow often exponentially over several decades with very conservative assumptions and allowing for the time value of money the impacts exceed government funding by a substantial margin physics actually fares 30 60 better than the combined nsexm this reflects more successful companies rather than greater numbers and therefore does not seem inconsistent with earlier studies on company numbers firm lifetimes are long with canadian impacts truncated primarily by some foreign acquisitions we argue that the spin off impacts represent incremental contributions to gdp much larger even on a time discounted basis than the government funding and directly attributable to it governments will also receive more in additional tax than they spent the impacts therefore provide a quantitative justification for the public investment allowing the much more important but less quantifiable long term benefits to be regarded as a free bonus the very good showing of physics also suggests that reduced emphasis on basic work or on the basic disciplines could actually weaken the commercialization of ar

r d appropriability opportunity and market structure new evidence on some schumpeterian hypotheses one of the largest bodies of literature in the field of industrial organization is devoted to the interpretation and testing of several hypotheses advanced by joseph schumpeter 1950 concerning innovation and industrial market structure one set of hypotheses focuses on the role of firm size as a determinant of r d spending and the rate of technological advance another set focuses on the effect of market concentration on r d and technological advance in this paper we reexamine the latter set of hypotheses at the industry level using new data on r d appropriability and technological opportunity collected by levin et al 1984 in a survey of r d executives in 130 industries

institutions supporting technical advance in industry elsewhere 1982 economists beliefs that modern capitalism is a fine innovation generating machine have no intellectual grounding in contemporary neoclassical theory the twin theorems take technologies as given the apparent effectiveness of capitalism in this arena must reside in characteristics and mechanisms other than those featured in the microeconomic theory textbooks in our book we attempt to analyze these it also is true that the capitalist engine is a much more complicated one than many economists seem to think i presently am

the economic impact of canadian university r d abstract canadian university research expenditures and those of graduate students produce a gross static economic impact upon the canadian gross domestic product gdp which considerably overestimates the net static impact of university research moreover the net static impact because it keeps constant the economic structure and the productivity of factors of production does not account for the principal beneficial impact of university research the building of human capital and the transfer of knowledge technology all of this leads to an increase in productivity and thus in the size of the gdp this effect is called the dynamic impact this article besides comparing succinctly the gross impact with the net static impact develops a practical method to measure the dynamic impact of university research in a way this method provides another benchmark besides the peer review to judge the relevance of university r d

a dynamic perspective of internal fit in corporate venturing abstract managers of corporate parents and their ventures have long been faced with the question of how closely to tie the parent and venture a close connection may enable a venture to capitalize on the competencies and resources of the parent however venture autonomy could prevent corporate inertia and bureaucracy from constraining venture growth the lack of consensus on this issue leads us to the first of two complementary research questions that we address in this paper what is the effect of internal strategic fit between a corporate parent and its venture on venture performance we suggest that a tight fit is positively associated with venture performance because of the venture s access to its parent s resources managers and researchers alike have often observed that growing enterprises are dynamic entities in the case of corporate ventures this implies that the relationship between parent and venture evolves over time our second research question directly addresses this issue by asking does the relationship between a corporate parent and its venture s evolve over time and if so how we identify two dimensions of the fit between corporate parents and their ventures relational and economic a relational fit reflects organizational culture and structure while an economic fit is a function of the needs of the venture and the resources of the parent we develop a series of hypotheses and test them with survey data from 97 canadian corporate ventures for the purposes of this study we define success as the ability of a firm to meet internal milestones on schedule we find that the degree of fit between a corporate parent and its venture does affect the success of a venture and that success is associated with high levels of awareness commitment and connection further the relational dimension of the parent venture interface appears to have a greater association with venture success than does the economic dimension our data support the idea that the parent venture relationship is dynamic in nature as ventures in our sample generally lessened their economic connections with their parents as they matured or vice versa we did find however that the relational bonds remained more or less intact the exceptions to these general trends were an increasing emphasis on financial targets along with decreasing ceo involvement as ventures matured both of these findings make intuitive sense greater financial independence is accompanied by greater financial accountability and as a venture gains in both independence and accountability there is less need for the ceo to provide air cover these two issues aside the basic model of enduring relational ties and diminishing economic ties was supported as well the increasing accountability is consistent with our expectation that a close connection is preferable to high venture autonomy

a multinomial logit analysis of problem loan resolution choices in banking this paper presents a conceptual framework of problem loan resolution choices that is a function of the combined borrower and lender decisions a bank will choose a workout option if its expected value is greater than the outcome under a no workout plan for the borrower if the reputational penalty due to a default is less than the opportunity cost of the best new alternative the borrower will have an incentive to default if the reverse holds then the borrower will be better off with a loan workout using a unique data set composed of borrower lender and economic factors we empirically examine the problem loan resolution choices the results provide support for our conceptual framework that problem loan choices are based on combined borrower lender variables copyright 1995 by ohio state university press

a transaction costs analysis of innovations in the organization of pharmaceutical r d abstract this paper uses transaction costs economics to analyze the increasing importance of vertical disintegration of r d by large pharmaceutical and chemical firms first it discusses three characteristics of the research based pharmaceutical industry then it shows that market failures related to long term joint venture r d contracts between firms and university laboratories are less significant than appears at first and may account for their striking increase over the past fifteen years

on the sources and significance of interindustry differences in technological opportunities abstract the set of technological opportunities in a given industry is one of the fundamental determinants of technical advance in that line of business we examine the concept of technological opportunity and discuss three categories of sources of those opportunities advances in scientific understanding and technique technological advances originating in other industries and in other private and governmental institutions and feedbacks from an industry s own technological advances data from the yale survey on industrial research and development are used to measure the strength of various sources of technological opportunity and to discern interindustry differences in the importance of these sources we find that interindustry differences in the strength and sources of technological opportunities contribute importantly to explanations of cross industry variation in r d intensity and technological advance

globalisation of knowledge production and regional innovation policy supporting specialized hubs in the bangalore software industry abstract this paper is concerned with the changing role of regional innovation systems and regional policies in supporting the transition of indigenous firms in developing countries from competing on low costs towards becoming knowledge providers in global value chains special attention is paid to policies supporting the emergence and development of the regional innovation system in this transition process regional innovation systems in developing countries have very recently started to be conceptualised as specialized hubs in global innovation and production networks asheim b coenen l vang lauridsen j 2007 face to face buzz and knowledge bases socio spatial implications for learning innovation and innovation policy environment and planning c government and policy 25 5 655 670 chaminade c vang j 2006a innovation policy for small and medium size smes in asia an innovation systems perspective in yeung h ed handbook of research on asian business edward elgar cheltenham maggi c 2007 the salmon farming and processing cluster in southern chile in pietrobello c rabellotti r eds upgrading and governance in clusters and value chains in latin america harvard university press a specialized hub refers to a node in a global value chain that mainly undertakes one or a few of the activities required for the production and development of a given good or service or serves a particular segment of the global market in global value chains firms in developing countries have traditionally been responsible for the lowest added value activities however a few emerging regional innovation systems in developing countries are beginning to challenge this scenario by rapidly upgrading in the value chain there is however still only a poorly developed understanding of how the system of innovation emerges and evolves to support this transition process and what the role of regional innovation policy is in building the regional conditions that support indigenous small and medium size enterprises smes in this transition process this paper aims at reducing this omission by analyzing the co evolution of the strategies of indigenous smes and the regional innovation system of bangalore india

universities as engines of r d based economic growth they think they can two issues raised by increased participation of universities in equity arrangements designed to commercialize faculty research are addressed a the effects that an increased emphasis on patenting faculty research and on enhancing the commercial value of these patents has on the characteristics of academic research net revenue streams and existing channels through which academic research enters the market and b processes of institutional change and imitation whereby changes in the policies of elite research universities exert competitive and emulative pressures on other institutions increased efforts by universities to foster the commercialization of technological innovations erodes the singular position of institutions of higher learning in the united states based on past performance there is little reason to expect that a substantial reallocation of faculty effort towards commercially oriented r d will generate appreciable net revenues for other than a select number of universities these ventures also serve to shift academic researchers from the social roles in which they are most efficient as suppliers of a collective goodscientific and technological knowledge just as very few men are both capable business managers and ingenious inventors so few are at the same time ingenious inventors and exalted altruists some twenty years ago a university professor devised a method for measuring with accuracy the content of butterfat in milk the device if patented would doubtless have yielded him a very handsome income the inventor gave it freely to the public saying modestly that to do so was but part of his duty as a servant of the people and it has come into use the world over we call his conduct noble but our very recognition of its nobility is an admission of its rarity f w taussig inventors and money makers 1915 58

technology strategy and new venture performance a study of corporate sponsored and independent biotechnology ventures abstract new ventures companies eight years or younger play a major role in the development of an emerging high technology industry corporate sponsored new ventures those supported by an established corporation and independent ventures those founded by independent entrepreneurs frequently battle for industry leadership and financial success whereas both venture types use technology to achieve financial and market success little is known about the differences in their technology strategies technology strategy is the plan that guides a new venture s decisions on the development and use of technological capabilities this strategy covers six major areas the first is selecting the pioneering posture where a venture decides whether or not be among the industry s first companies to introduce new products technologies to the market the second is determining the number of products to be introduced to the market the third is choosing the extent of a venture s use of internal and external r d sources internal sources usually refer to in house r d activities external sources may include purchasing or licensing of technology from other companies or joining strategic alliances to acquire that technology the fourth is deciding the level of r d spending the fifth is selecting the combination portfolio of applied and basic research projects whereas basic r d advances science applied r d leads to new products and technologies the sixth and final dimension is the venture s use of patenting to protect any competitive advantages it might gain from its r d activities this article reports the results of a study that explored the differences in the technology strategies and performance of corporate and independent ventures the biotechnology industry was chosen to test the study s hypotheses using 112 ventures seven of the study s hypotheses focused on the potential variations in technology strategy between corporate and independent ventures independent ventures ivs were expected to surpass corporate ventures cvs in pioneering new products technologies using internal r d and emphasizing applied r d cvs were expected to surpass ivs in introducing new products using external r d sources spending on r d and patenting the study s remaining three hypotheses covered possible variations in new venture performance nvp and their sources the results showed that ivs focused more on pioneering pursued a more applied r d portfolio and emphasized internal r d more than cvs cvs utilized external technology sources spent more heavily on r d stressed basic r d and used patenting more intensively than ivs these results were consistent with the hypotheses however contrary to expectations there were no significant differences between cvs and ivs in the frequency of new product introductions probably because most ventures were at the invention rather than the commercialization stage the results on the nvp of cvs and ivs were counter to expectations ivs outperformed cvs probably because of the high motivation of the iv owners who reaped the rewards of growth and profitability also whereas cvs may have greater access to the resources of their sponsors political conflicts and rigid corporate controls might have reduced their ability to achieve competitive advantages the results also indicated that cvs and ivs appeared to gain competitive advantages from different technological choices pioneering a focus on applied r d and extensive use of the internal r d sources were also positively associated with the performance of ivs heavy r d spending the use of both internal and external r d sources frequent product introductions and patenting were positively associated with the performance of cvs finding that technology strategies significantly impacted nvp should encourage executives to consider pursuing a formal technology strategy likewise the finding that different dimensions of technology strategy influenced the performance of cvs and ivs in different ways has practical implications cv managers can learn from their higher performing iv rivals also because established companies frequently acquire ivs information about their technology strategies can be valuable in assimilating the acquired ventures overall the results show that technology strategy is an important factor in enhancing new venture performance

joint ventures and offshore oil lease sales alternative explanations of joint bidding for offshore oil tract leases are examined the models suggest that firms undertake joint bids 1 to reduce risk by spreading ownership across tracts 2 to share technical expertise including information and 3 to ameliorate financial constraints these hypotheses are examined empirically using the multiple logit technique and other tests with data constructed from the baltimore canyon sale of 1976 the results suggest that firms behaviors are consistent with the explanations of diversification and sharing of expertise explanations based on financial constraints are shown to be consistent with the data in the risk averse case but not in the risk neutral case implications of these results for research and policy are discussed

the economic impact of licensed commercialized inventions originating in university research abstract the purpose of this article is to estimate quantitatively the contribution that university licensing makes to the national u s economy as regions and nations face increased economic problems they seek ways to augment opportunities for economic growth and to identify areas where public funding can be cut it is now well recognized that the research university can be a significant engine of economic growth and job creation university research and research related activities contribute in many important ways to modern economies notably through increased productivity of applied rd provision of highly valued human capital embodied in faculty and students development of equipment and instrumentation used by industry in production and research and creation of concepts and prototypes for new products and processes which may have some unexpected and large social and economic impacts yet clear documentation of the proportional contributions these make to economic growth remains elusive this article provides detailed estimates of the economic impact on the u s national economy of one core university activity licensing of university inventions to industry our approach combines licensing data for u s universities with national input output i o model coefficients and provides more valid and complete estimates of the national economic impacts of university licensing of intellectual property than have previously been available our results estimate national economic impact expressed as annual increases in gross domestic product gdp in total industry output and employment generated over a 15 year period summing over the entire 15 years for which we have data 1996 2010 we estimate that assuming no product substitution effects and a 2 10 royalty fee the total contribution of university licensing to gross industry output is at least 162 1 billion and as much as 686 9 billion 2005 dollars estimates based on 5 royalty rates yields an estimated impact of 293 3 billion 2005 dollars over the period assuming 2 royalty fees and no product substitution effects we estimate that over a 15 year period university licensing agreements based on product sales contributed at least 70 5 billion and as much as 277 6 billion 2005 dollars to the u s gdp with a moderately conservative estimate based on 5 royalty rates such agreements contributed more than 122 2 billion 2005 dollars the i o model also calculates the number of jobs person years of employment directly created or supported per million dollars of final purchases estimates of the total number of additional jobs created as a function of year due to university licensed products assuming no product substitution effects ranged from about 7000 jobs in 1996 to 23 000 in 2010 or more than 277 000 person years of employment over the entire 15 year period because of uncertainty we also provide estimates of the economic impact of university licensing income based on a range of product substitution rates 5 10 and 50 the magnitude of the estimated impact depends significantly on the assumptions made for example the royalty fees and substitution rates but even the most conservative yet reasonable assumptions yield estimates of very large impacts on gdp industry output and employment major discoveries emanating from academic and or publicly funded research have had enormous global economic and social impacts that are obvious but difficult to predict and quantify e g google the world wide web nanotechnologies etc although this article examines the economic impact of only a select technology transfer activity it nevertheless offers quantitative evidence that the economic impact of university research and technology transfer activities is significant

capital market myopia abstract the purpose in writing this article is to focus attention on a phenomenon we call capital market myopia a situation in which participants in the capital markets ignore the logical implications of their individual investment decisions viewed in isolation each decision seems to make sense when taken together however they are a prescription for disaster capital market myopia leads to overfunding of industries and unsustainable levels of valuation in the stock market we use the winchester disk drive industry to elucidate the phenomenon we argue that capital market participants should have seen the problem coming they should have known that valuation levels were absurd based in large part on the greater fool theory the data necessary to anticipate the problem were readily available before the industry shakeout began and stock prices collapsed there are several lessons which we believe can be learned by careful examination of the disk drive experience in the period under study these include taking the broad view of the industry is the key to profitable investment the investment mania visited on the hard disk industry contained inherent assumptions about long run industry size and profitability and about the future growth profitability and access to capital for each individual company these assumptions had they been stated explicitly would not have been acceptable to the rational investor certainly there are valuations which arise which cannot be justified under any circumstance these are the times for the manager to raise money from the public capital markets those managers who took advantage of unsustainable valuation levels now have a chance to survive the shakeout growth is not equivalent to profitability the high growth rate in the industry made it the focus of considerable managerial investor and technological attention the industry attracted so many resources that the growth had high probability of being unprofitable excesses in the capital market turned an opportunity into a disaster profits for some are not equivalent to a good business many players made high profits by investing in the hard disk drive business including the investment bankers and certain of the venture capital groups which invested early enough to catch the wave of euphoria in the stock market and still sell under rule 144 many others rode the cycle up and down without liquidity for many buyers of disk drive stocks in 1983 losses were massive short term successes of some gave the illusion of long term profitability for all investors should not be fooled by such invevitably ephemeral successes market instability can be all bad news very rapid change often creates entrepreneurial opportunity it also creates risk analysis of the hard disk drive industry reveals the dark side of rapid technological evolution and of customer instability early players are often preempted by changes in technology and in customer needs early birds are not always winners in product markets but late comers are almost always losers recognizing the chain one of the more important lessons to be learned from the tale of the disk drive industry is that all players entreprenuers venture capitalists investment bankers industry analysts and investors must recognize the chains involved in such a process first there was a technological chain a series of bets on technological advances in disk drive components disk drive designs and end user designs then there was a financial chain a series of related bets on the internal financial health of each player in the technological chain and on the nature of access to capital in the private and public markets the likelihood that any player in the disk drive industry would prosper without a serious setback due to a weak link was effectively zero indeed weaknesses in the chain were created by exactly the same people whose financial success depended on an unbroken series of favorable outcomes during this same period the public capital markets were also a large supplier of funds to the disk drive industry the total amount of money raised in public offerings of common stocks for participants in the industry was over 800 million during the middle part of 1983 the capital markets assigned a value in excess of 5 billion to 12 publicly traded venture capital backed hard disk drive manufacturers the strong market valuation of these companies paralleled the boom in other high technology stocks and rising valuation levels in the stock market in general table 2 contains data on stock prices and valuation levels for some disk drive manufacturers and table 3 provides general data on the economy and capital markets

firms transfer strategies with universities and the relationship with firms innovation performance based on a representative sample of swiss firms we empirically investigated strategies for knowledge and technology transfer ktt activities between business firms and universities as well as other public research institutions based on a cluster analysis of 19 different forms for ktt three types of ktt strategies were identified they were significantly correlated mainly to i the absorptive capacity of a firm ii several factors hampering ktt activities and iii some characteristics of the transfer process such as the number of partners the existence of contacts to foreign universities and the utilization of the mediating services of transfer offices furthermore it was found that ktt strategies related to the core transfer activities such as r d contracts are stronger correlated with innovation performance compared to strategies related to softer transfer forms copyright 2009 the author 2009 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

asymmetry in first price auctions with affiliated private values collusion and heterogeneity across firms may introduce asymmetry in bidding games a major difficulty in asymmetric auctions is that the bayesian nash equilibrium strategies are solutions of an intractable system of differential equations we propose a simple method for estimating asymmetric first price auctions with affiliated private values considering two types of bidders we show that these differential equations can be rewritten using the observed bid distribution we establish the identification of the model characterize its theoretical restrictions and propose a two step non parametric estimation procedure for estimating the private value distributions an empirical analysis of joint bidding in ocs auctions is provided copyright 2003 john wiley sons ltd

the globalization of r d results of a survey of foreign affiliated r d laboratories in the usa abstract this paper examines the globalization of innovation and the phenomenon of foreign direct investment fdi in research and development to do so it draws from a survey of foreign affiliated r d laboratories in the united states while the literature on foreign direct investment has emphasized the role of markets in driving off shore investments the main conclusion of this research is that the globalization of innovation is driven in large measure by technology factors of particular importance is the objective of firms to secure access to scientific and technical human capital

imitation costs and patents an empirical study it has long been recognised that the costs of imitating new products have an important effect on the incentives for innovation in a market economy as arrow i962 and others have pointed out if firms can imitate an innovation at a cost that is substantially below the cost to the innovator of developing the innovation there may be little or no incentive for the innovator to carry out the innovation in their discussions of the innovation process economists frequently have called attention to the major role played by the costs of imitation but there has been little or no attempt to measure these costs to test various hypotheses concerning the factors influencing them or to estimate their effects in this paper we report some findings of what seems to be the first study of this topic in addition we present data regarding the effects of patents on imitation costs and on the rate of innovation

corporate versus independent new ventures resource strategy and performance differences abstract this study examines differences between independent ventures ivs which are established by individual entrepreneurs and corporate ventures cvs which are controlled by larger companies it focuses on differences between these ventures related to the resources strategies and performance of firms in the computer and communications equipment manufacturing industries thus the findings increase the understanding of the different challenges faced by each venture type and provide insight into how each venture type should be managed the study finds that managers of cvs and ivs emphasized different resources and strategies specifically cvs emphasized the following resources internal capital sources proprietary knowledge and marketing expertise ivs emphasized external capital sources technical expertise and development of brand identification they also differed in their strategies ivs pursued greater strategic breadth more customer service and focused more on specialty products the findings that cvs had less strategic breadth was surprising in that cvs emphasized resources such as internal capital sources which could make pursuing broad strategies more feasible for cvs it is possible that some cvs do not pursue broad strategies because they may be infringing upon someone else s turf within the corporation and thus may be discouraged in spite of finding significant strategy and resource differences the study found that ivs and cvs did not differ in performance and that resources were not directly related to performance based on the concept of equifinality it follows that both venture types can be equally successful even if they follow different roads to success success may be less a function of the different resources ivs and cvs have and more a function of what strategies the firms choose based upon their resources strategy variables did relate to performance a low cost strategy lowered performance regardless of venture type and the influence of an aggressive strategy i e wide strategic breadth on performance depended upon venture origin managers pursuing a low cost strategy may have had lower performance if they became penny wise and pound foolish missing opportunities in their efforts to lower costs this suggests that regardless of venture type managers of new ventures in these industries and perhaps in other volatile industries may need to be opportunistic this study indicates that pursuing broad strategies increased the performance of ivs and decreased the performance of cvs this finding was surprising in that cvs had greater resources which one might think would lead to successful implementation of aggressive strategies in securing enough resources to pursue aggressive strategies from their parents cvs may lose the freedom of action they need to cope with the dynamism of high technology industries this suggests that managers of cvs within the computer and communications equipment manufacturing industries should either not pursue broad strategies or if pursuing broad strategy they should maintain their flexibility in contrast ivs that pursued broad strategies achieved higher performance indicating that perhaps ivs unencumbered by the bureaucracy that characterizes cvs may be able to pursue aggressive strategies while simultaneously maintaining flexibility thus this study offers iv and cv managers several valuable insights first it argues that managers of each type of venture may need to pursue different strategies to increase venture performance and make optimal use of their unique resources furthermore it suggests that cv managers encounter difficulties in applying resources to strategies and not in accessing resources whereas political obstacles may occur cv managers may primarily encounter these difficulties when trying to implement strategies rather than when accumulating resources from the parent suggesting a pitfall that managers of cvs and their parents need to avoid although this study has indicated that both venture types can be equally successful it suggests that they may face different obstacles and follow different roads to success

invention and innovation in the chemical industry demand pull or discovery push abstract this paper describes a study of the determinants of the rate direction and scale of inventive and innovative activity in the chemical industry over the period 1830 1980 statistical data are interpreted in the light of case study material in three major sectors dyestuffs plastics and pharmaceuticals theories of technical change and economic growth particularly those of schmookler and schmpeter are examined in relation to this material on the chemical industry the findings suggest that the importance of demand pull and discovery push factors and the validity of schmookler s and schumpeter s theories vary over an industry s life cycle

financial performance patterns of new corporate ventures an alternative to traditional measures abstract this paper describes some of the limitations involved in using traditional performance measures to evaluate new ventures and suggests an alternative we argue that the use of traditional performance measures in the new venture setting can produce misdirected decision making by managers and misleading model development by researchers the traditional performance measures evaluated are return on investment cashflow market share gain and returns to stockholders the alternative performance measured presented is based upon an evaluation of patterns of improvement in return on investment across time these patterns of performance are mapped using regression analysis return on investment is regressed against time and the parameters of the resulting models parameters are themselves used as performance measures the beta coefficient is used to measure the overall rate of change in financial performance from year to year and the coefficient of determination r 2 is used to measure the predictability of change to combine the information available in each of these parameters into a single variable we multiply by r 2 and call the result v thus v is a measure of the velocity of improvement in financial performance across time adjusted for the level of variability in the performance trend much work remains to be done that could substantially improve the usefulness of v to managers and researchers more sophisticated approaches than the one used here might include weighting either or r 2 to fit the particular goal orientation of a given management team other model parameters might be used in conjunction with or in place of or r 2 to increase or improve the information captured in v measures of financial performance other than return on investment roi could also be used as the basis of calculating v even in its current simple form however v appears to be a useful performance measure in 87 of 112 ncvs studied v provided a useful summary of the pattern of performance s development in 25 of 112 cases there were important characteristics of performance that could not be captured by v the most important managerial implication of v entails the shift to evaluating a new venture on the basis of its progress toward a desirable end rather than on the end itself this provides a logical means of evaluating the financial performance of a new venture at an earlier time than would be possible otherwise

product innovation product market competition and persistent profitability in the u s pharmaceutical industry increasingly strategy scholars are exploring the relationships between innovation competition and the persistence of superior profits sustained high profitability may result when a firm repeatedly introduces valuable innovations that service previously unmet consumer demands while the returns to the firm from each innovation may erode over time innovation ensures that overall the firm maintains a high performance position at the same time sustained high profitability may also accrue to firms that innovate less often but effectively avoid the competition that otherwise erodes high returns this paper elaborates these relationships before presenting an empirical analysis of the effects of differential innovative propensities and differential rates of competition on pharmaceutical firms abilities to sustain profit outcomes that are above those earned by competing firms the analysis which is situated within the u s pharmaceutical industry finds support for the expected relationship between high innovative propensity and sustained superior profitability but no support for a link between persistence and the ability to avoid competition copyright 1999 john wiley sons ltd

corporate venturing obstacles sources and solutions abstract there is a fundamental conflict between new venture and mature company management requirements as an enterprise evolves the focus for success shifts from sensing and seizing opportunity to protecting and utilizing the resources that have been acquired in surviving companies management practices change to accommodate this changing need the conflict arises when the mature company attempts to initiate internal new venture activities application of mature company practices to management of new corporate ventures is not only inappropriate but breeds failure to succeed with new ventures top corporate management must first understand the inherent differences in management needs for new ventures versus the mature organization and must then adapt a pluralistic management style that accommodates both needs this paper examines the rationale for ten establishment practices and the adverse effects they can have on new ventures from this analysis alternative entrepreneurial management practices are recommended the ten management practices examined are 1 enforce procedures to avoid mistakes 2 manage resources for efficiency and roi 3 control against plan 4 plan long term 5 manage functionally 6 avoid moves that risk the base business 7 protect the base business at all costs 8 judge new steps from prior experience 9 compensate uniformly and 10 promote compatible individuals some of the adverse effects of these practices include blockage of innovative solutions loss of competitive lead time entrepreneur failures high venture failure costs missed opportunities fluctuating venture strategies misread markets reduced motivation to take risks and loss of innovative employees recommended entrepreneurial management practices include restricting standard procedures to those appropriate for the venture controlling ventures by milestone planning rather than calendar budgets being more responsive to market feedback in adjusting plans focusing on critical issues for early determination of venture viability assessing and choosing affordable risks and making venturing a mainstream function of the business

the roles of science in technological innovation abstract one of the central issues in science policy during the past decade has been the extent to which the national levels of expenditure on scientific education and research influence the standard of living this paper provides empirical evidence to show that the pay off from this investment in science is more complex and indirect than previously supposed

encouraging university entrepreneurship the effect of the bayh dole act on university patenting in the united states abstract universities are seen as a source of technology development that is useful to entrepreneurial activity as a result policy makers often consider mechanisms to stimulate technology commercialization at research universities as a way to encourage entrepreneurial activity in a region however the transfer of technology from universities to the private sector requires the exploitation of markets for knowledge which are fraught with difficulty arrow k 1962 economic welfare and the allocation of resources for inventions in nelson r ed the rate and direction of inventive activity princeton nj princeton univ press this article examines the effect of one u s public policy initiative the bayh dole act in the united states on one aspect of technology commercialization university patenting specifically the article explores the university share of patents from 1969 through 1996 across 117 lines of business and shows that the effectiveness of licensing in a line of business is significantly correlated with university share of patents in the post bayh dole period but not in the pre bayh dole period these results suggest that the bayh dole act provided incentives for universities to increase patenting in those fields in which licensing is an effective mechanism for acquiring new technical knowledge the paper discusses the implications of this shift in patenting for research and public policy

regional economic impacts of federal r d by funding source and performer type hicks d a and lee s g 1994 regional economic impacts of federal r d by funding source and performer type reg studies 28 619 632 guided by persistent spatial and sectoral concentration of federal r d we find that while defence r d is stimulative funds flowing to non defence non profit and educational research institutions are more so effects are stronger in larger metro scale regions and in local economies in which manufacturing accounts for greater shares of total employment moreover federal r d flows appear to have local investment effects as indicated by their capacity to accelerate the rate of local employment expansion in the total technology intensive tti subsector in which r d intensive goods account for significant portions of inputs and final output hicks d a et lee s g 1994 les impacts economiques regionaux des depenses de r et d federales suivant l origine et la destination des fonds reg studies 28 619 632 pilote par la concentration geographique et sectorielle des d

supporting innovation and venture development in established companies abstract accumulated research findings call into question the ability of established corporations to develop and manage new ventures successfully this article argues that the problem comes in large part from failing to differentiate between the requirements of administrative management geared to managing existing activities and holding things in place to ensure continuation of already developed activities and the requirements of entrepreneurial management designed to create change by developing something new the two kinds of management are in tension and may interfere with each other but every established organization needs both in order to get both innovation and efficiency innovations and new ventures have four particular characteristics that account for their special management requirements uncertainty knowledge intensivity competition with alternative courses of action and boundary crossing thus entrepreneurial management to support creation of the new puts a stress on such features as visionary leadership patient money planning flexibility team continuity stability and interfunctional cooperation but the usual requirements of administrative management in established corporations contradict these principles thus some companies try to set their new ventures apart from the old to avoid conflicts in management requirements however this this only partially solves the problem all companies need both to manage ongoing activities and to create new ones with the proportions of each depending on the nature of the business they need to strike a balance between administrative and entrepreneurial management the problem of venture development in established corporations occurs when administrative management comes to dominate and innovation is not valued sufficiently the command system of administrative management needs to be replaced by a mutual adjustment system high innovation companies build mutual adjustment into their design they allow flexibility to move into an entrepreneurial mode they are characterized by broader jobs structures built around small business units or functionally complete project teams cultures stressing the ability of people to contribute more over time and easy access to the key power tools of information support and resources a more entrepreneurial corporation minimizes hard and fast rules and procedures governed by a rigidly defined command structure and emphasizes instead flexibility and broadly skilled sets of employees in flexible units that can be grouped or regrouped as changing circumstances require large corporations must institute deliberate programs to encourage innovation and entrepreneurship including removing the roadblocks of unnecessary administrative requirements encouraging integration across departments and functions changing budgeting and accounting procedures and providing internal venture capital and special project funds discretionary time and new business performance measures

equilibrium patterns of competition in ocs lease sales an equilibrium model of bidding behavior is developed that accounts for observed fluctuations in the degree of competition to acquire offshore petroleum leases as one might expect such fluctuations are related to the heterogeneity of geological prospects that are offered for sale with a relatively high degree of competition to acquire tracts of the highest quality the equilibrium configuration of bids is also shown to reflect structural characteristics such as capital market constraints that may restrict competition in the lease auction empirical evidence is presented which tends to confirm our general theory of bidding equilibria but which contradicts the popular notion that capital constraints have restricted competition in ocs lease sales policy implications are discussed in the concluding section

the international economics of intellectual property right protection a welfare theoretic trade policy analysis abstract this paper provides an analytical construct for examining the trade policy effects of greater intellectual property protection in technology importing countries it is shown that two types of conflict are likely to arise between net technology importers and exporters the first relates to the level of protection with importers preferring a low level and exporters a high one the second conflict hitherto unexplored relates to the manner of protection with importers likely to prefer discriminatory regimes favoring local r d creation whereas exporters would prefer nondiscriminatory protection in importing countries

scientific linkages and firm productivity panel data evidence from taiwanese electronics firms using a panel of electronics firms listed on the taiwan stock exchange this paper explores the spillover of scientific research to the private sector by looking at the impact of the intensity a patent s backward citation of scientific publications relative to citation of other patents on the patent owning firm s productivity to identify the causal effect we use measures of a firm s financial constraints as instrumental variables to account for the potential endogeneity of scientific citation intensity of a patent the empirical results suggest that the citation of scientific publications by a patent has a strong and positive effect on the patent owning firm s productivity

the advantage chain antecedents to rents from internal corporate ventures abstract in this article we argue that the resource based perspective on strategy offers a useful basis for understanding the contributions to the firm of corporate ventures the heart of the resource based view of the firm lies in arguments set forth by penrose and by nelson and winter penrose 1959 argued that differential mechanisms for resource combination and utilization result in heterogeneity among firms even among firms with similar factor endowments nelson and winter 1982 argued that behavior in particular behavior with respect to the utilization of firm resources becomes routinized over time people are often unable to describe or reconstruct well honed repetitive routines with ease van de ven 1986 consequently no two firms are likely to develop identical routines and it is often difficult for one firm to copy routines originated in another the idea that resources may be combined in routinized but relatively idiosyncratic ways suggests that firms will develop enduring differences in resource profiles and consequently in strategic potentialities over time consider the benefits a corporate venture can offer entering new markets making a new product developing a new technology or reconfiguring internal processes all require changes to existing resource configurations and routines these changes can allow the firm to discover ways of combining its resources and to the extent that the new combinations incorporate difficult to imitate routines it will take some time before that combination can be matched by competitors in other words venturing is one mechanism through which a firm gains superior insight about and access to firm specific resources with future rent potential value so a substantive and desirable outcome of venturing is the generation of valuable new resource combinations specific to the firm which it alone may exploit the article presents a model of those conditions that are necessary antecedents to streams of ricardian rent from the venture five such conditions are proposed all of which must be met if the firm is to derive rents from its venturing activities the first antecedent to securing rent streams from venturing is the emergence of causal understanding of the drivers of the venture s performance new causal understanding creates insight into new opportunity areas next team proficiency is essential to translate causal understanding into coordinated delivery of the product or service to the market new competences emerge as a result of evolving causal understanding and team proficiency which allow the organization to achieve new purposes from these new competences there may then develop distinctive competences that will differentiate the firm from competing organizations these distinctive competences may then become competitive advantages if they can be deployed in delivering product or service attributes that are preferred by the market to the offerings of competitors and competitors cannot readily duplicate them rents can only ensue when these inimitable competitive advantages allow a firm to achieve either distinctive efficiency in the firm or distinctive value for the customers the final section of the article offers ways in which this framework could be used first for research purposes and secondly by venture management

cost reducing and demand creating r d with spillovers this article analyzes r d policies when the returns to cost reducing and demand creating r d are imperfectly appropriable and market structure is endogenous we generalize previous characterizations of appropriability to permit the possibility that own and rival r d are imperfect substitutes we also describe how equilibrium expenditures on process and product r d as well as equilibrium market structure depend on technological opportunities and spillovers in contrast to previous work diminished appropriability does not necessarily reduce r d expenditures for example under some conditions an increase in the extent of process product spillovers will lead to an increase in product process r d we estimate several variants of the model by using manufacturing line of business data and data from a survey of r d executives