Project Description

This project focuses on Research-Based Spin-Offs (RBSOs). We use this term to refer to any company created on the basis of scientific knowledge generated in a public research organization (PRO). For decades the new knowledge produced by PROs has been mainly transferred to firms and society through the students trained by these institutions and «classical» knowledge transfer mechanisms (i.e. licensing of patented knowledge). Conversely, in the last 20 years the importance of the foundation of new ventures as a strategy for the transfer and transformation of scientific knowledge has significantly grown.

In fact RBSOs play a key role in transforming scientific knowledge into new knowledge that is embodied in new technologies, products, services and processes and hence is suitable to commercial exploitation. As such, they are a potentially very important engine of innovation and economic growth for Europe. In this project we seek to understand the conditions under which RBSOs effectively contribute to the generation of new knowledge and its dissemination in the local/national environment in which they are embedded. In a small number of cases RBSOs exhibit very high level of growth; these firms are generally referred to as the «gazelles». In many other cases, however, RBSOs do not achieve high growth due to physiological reasons (e.g. the niche nature of the market in which they operate, unwillingness of the founders to grow, etc.) or pathological ones (e.g. lack of financial resources, inexperienced management, etc.). The knowledge they create, however, may significantly contribute to the competitiveness and growth of their customers or may be transferred to and successfully exploited by outside companies. Licenses, other alliances and mergers and acquisitions are instrumental to this transfer process. Consequently, although the majority of RBSOs do not fall into the gazelles category they may still play a very important role for the dynamic efficiency of the economic environment in which they are embedded.

The project has three specific objectives.

First, we will analyze the determinants of the knowledge creation and transformation function performed by RBSOs as it is mirrored in their innovative activity. These determinants include: (i) the organizational structure and resource configuration of RBSOs; (ii) the institutional characteristics relating to both the originating PROs and the local/national environment (e.g. presence of lead customers, characteristics of the venture capital industry, policy measures in support of start-ups, etc.), and (iii) the nature of knowledge in different scientific and technological domains (e.g. codified versus tacit, stage of development, appropriability regime). Traditionally these different elements have been studied in isolation and we feel that such an approach will lead to problems associated with misspecification.

Second, we will analyze the impact of the innovative activity of RBSOs on their competitiveness and growth, and the factors that moderate this relationship. From previous research we know that the relationship between innovation and growth is not linear and furthermore that innovation is a necessary but not sufficient condition for growth. We aim to further investigate and better understand this relationship through our research.

Third, we will study the impact of RBSOs on the ability of their customers and partners to create new knowledge embodied in new technologies, products, services and processes, and the implications for the competitiveness and growth of these latter firms. We hypothesize that the major beneficiaries of RBSOs' knowledge creation and transformation activity may well be outside third parties such as customers and partners (of an alliance, a merger or an acquisition). This is a neglected issue in previous studies. Furthermore, we posit that the effectiveness of this transfer depends on several factors, which include: (i) the characteristics of the actors involved (the RBSO and its customers or partners), (ii) those of the vehicle used for the transfer (mergers and acquisitions, supply relations, licenses, other alliances) and (iii) the nature of the knowledge transferred.

While providing a better understanding of the knowledge creation and transformation function of RBSOs and its (direct and indirect) effects on innovation and growth, this project will draw important lessons for academic entrepreneurs, PRO officials, and policy makers. In addition, the results of our proposed analyses will allow us to reassess the rationale for public support to the creation and development of RBSOs, and to contribute to the contextualization of the design of public policy for RBSOs.

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