INSTITUTE OF INNOVATION AND KNOWLEDGE MANAGEMENT Not searching, but finding: Innovation as a non-linear source of the private use of public knowledge Joaquín

INSTITUTE OF INNOVATION AND KNOWLEDGE MANAGEMENT

Not searching, but finding: Innovation as a non-linear source of the private use of public knowledge

Joaquín M. Azagra-Caro | Bristol, 5 September 2011

Co-authors: Rafael Pardo · Ruth Rama

Motivation

• Improving perceived usefulness of universities and public research organisations (U-PROs)

• Understanding the phenomenon in non-innovators –a substantial part of industry in emerging economies and even in EU countries

• Covering the gap: perceived usefulness of U-PROs in non-innovators

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Objectives

• Expanding previous models on the determinants of the perceived usefulness of U-PROs

• Distinguishing between innovators and non-innovators

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Approach

• Mostly disregarded: perceptions = facts• Mostly considered: perceptions ≠ factsCurrent models

• Absorptive capacity• Corporate coherence• Innovative routines• R&D alliances and cooperation

Expanded models

• Resource-based view of the firm• Experiential learning theory

Innovators vs.

non-innovators

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Determinants of the

perceived usefulness of

U-PROs

Testable hypotheses

Hypotheses

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Current models

Perceived usefulness

of information provided by U-PROs for innovation-

related company activities

Openness

Expected impact

Expanded models

Skills H4: +

Strategic innovation

H8:Technological

innovationH5: -

H6: -Market competition

Research collaboration

H7: +

R&D H2: +

Size H3: +

H1: +

Database

• A plant-level survey targeting firms in the Spanish manufacturing industry

• 1,031 surveyed companies (50 or more employees)

• Representative of size, region and sector• Unlikely most other surveys, questions about

sources of information were posed to both innovators and non innovators

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Methodology

• Econometric estimation of the determinants of the perceived usefulness of information provided by universities and PROs

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Variable Description Perceived usefulness Importance of U-PROs as information sources for

technological innovation Openness Importance of other 11 external sources of information for

technological innovation R&D activities R&D active firm Firm size Number of employees Skills Degree of technical complexity of tasks Strategic innovation Importance of changes in strategic orientation Competition Number of competitors in the market Collaboration For innovators, importance of collaboration with

universities and PROs in product or process development

Results

• Ordered logit model of the perceived usefulness of information provided by universities and PROs for innovation-related activities of the firm

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Innovators Innovators Non-innovators Number of observations 804 781 173 Log likelihood function -953 -917 -150 Prob[χ2 > value] 0 0 0 Coeff. (t-ratio) Coeff. (t-ratio) Coeff. (t-ratio) Constant -3.66 (-5.81) *** -3.74 (-5.73) *** -7.02 (-4.34) *** Openness 0.91 (19.79) *** 0.91 (18.7) *** 1.1 (8.84) *** R&D activities 0.22 (1.42) 0.21 (1.35) 0.64 (1.72) * Ln firm size 0.25 (2.41) ** 0.27 (2.49) ** 0.47 (1.63) Skills 0.1 (2.01) ** 0.13 (0.94) Strategic innovation -0.12 (-2.16) ** -0.1 (-0.82) Competition -0.02 (-0.25) -0.5 (-2.8) *** Collaboration 0.73 (4.3) *** Industry dummies Included Included Included

*** p<0.01; ** p<0.05; * p<0.10

Results

• For innovators, usual determinants apply in our sample, except R&D (H1&3 ✓, H2 ✗)

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*** p<0.01; ** p<0.05; * p<0.10

Results

• For innovators, other determinants play a significant role

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*** p<0.01; ** p<0.05; * p<0.10

Results

• Higher skills, higher perceived use of public knowledge (H4 ✓)

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*** p<0.01; ** p<0.05; * p<0.10

Results

• Lower strategic innovation, higher perceived use of public knowledge (H5 ✓)

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*** p<0.01; ** p<0.05; * p<0.10

Results

• For innovators, degree of competition, not related to use of public knowledge (H6 ✗)

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*** p<0.01; ** p<0.05; * p<0.10

Results

• Higher collaboration, higher perceived use of public knowledge (H7 ✓)

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*** p<0.01; ** p<0.05; * p<0.10

Results

• Non-innovators have little in common with innovators (H8 ✓)

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*** p<0.01; ** p<0.05; * p<0.10

Results

• Openness, the only determinant in common

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*** p<0.01; ** p<0.05; * p<0.10

Results

• Unlike for innovators, firm size, skills and strategic innovation are not significant

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*** p<0.01; ** p<0.05; * p<0.10

Results

• Unlike for innovators, lower competition, higher perceived use of public knowledge

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*** p<0.01; ** p<0.05; * p<0.10

‘I do not search, I find’ (P. Picasso)

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• Searching is conscious, finding is not

• Searching leads both innovators and non-innovators to perceive public knowledge as useful

• Finding is a prerogative of practical experience in technological innovation

Implications on the new role of universities

• Fostering openness• Addressing also non-innovators• Not promoting the use of public knowledge to

innovate, but practical experience in innovation to use public knowledge

• I.e. putting more emphasis on innovative culture than on technology transfer

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www.ingenio.upv.es

INSTITUTE OF INNOVATION AND KNOWLEDGE MANAGEMENT

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Strategic innovation

• Entering a new market with a new technology can be unsuccessful ‘because the effort is likely to be outside the firm’s learning range’ (Dosi et al 1992)

• Innovating routines: matching new corporate technology to new specific organisational practices is risky (Pavitt 2002)

• Strategic innovation more reactive than proactive, generating turbulence

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The strange case of R&D

• Scarce impact for innovators– Statistical reason: many innovators perform R&D activities– But low correlation and high proportion of less intuitive cases– In Spain, more technology adoption than technology creation –

shop-floor more important than R&D –it is skills that determine perceived usefulness of U-PROs

– Two theoretical forces: internal R&D vs. external R&D –in Spain, they cancel out

• Positive impact for non-innovators– Many without R&D department –having one makes a difference– But borderline significance, so…?

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Documents

INSTITUTE OF INNOVATION AND KNOWLEDGE MANAGEMENT Not searching, but finding: Innovation as a non-linear source of the private use of public knowledge Joaquín