Cristina SousaPortucalense University & ISCTE-IUL, DINÂMIA’CET-IUL

Oscarina Conceição, DINÂMIA’CET-IUL & Polytechnic Institute of Cávado and AveMargarida Fontes, LNEG – National Laboratory of Energy and Geology & DINÂMIA’CET-IUL

Academic spin -offs as knowledgeconveyers in innovation networks

International conference "Knowledge, Innovation and Technology Across

Borders: Developing the Research Agenda"

Outline

1. Motivation2. Conceptual background3. Research questions4. Empirical study5. Results6. Conclusion

Motivation

�RBSO have been found to play an important role as knowledge transfer mechanisms (Bathelt et al. 2010; Helm and Mauroner 2007)

�Literature tends to focus on :

� the relations between RBSOs and the “parent” or other research organisations;

� the RBSOs regional embeddedness�But much less is known regarding RBSOs knowledge

interactions with other firms and on their role as knowledge conveyers across regions.

�Our aim: � contribute to understand whether RBSOs are effectively

acting as knowledge dissemination mechanisms through their position in knowledge networks

Conceptual framework� Universities increasingly engaged in technology transfer activities� Research-based spin-off (RBSO): Firm whose creation is based on the

formal or informal transfer of technology or knowledge generated byresearch organizations (Mustar et al. 2006)

� RBSOs regarded as generating value from academic research and, simultaneously, contributing to increase universities’ reputation (Mustar et al, 2008; Perez and Sanchez, 2003; Wright et al, 2007)

� RBSOs effective impact is not likely to be fully captured by traditional indicators

� Given the intermediate position they often occupy between academic research and the market (Autio, 1997; Fontes, 2005), their impact is more clearly expressed through the value they create in knowledge and innovation networks, as agents of knowledge acquisition, transformation and diffusion (Harrison and Leitch, 2010; Perez and Sanchez,

2003; Walter et al, 2006).

Conceptual framework

The nature of RBSOs technological relations:

�2 mains stages in the transfer process enacted by RBSOs:

�These stages can overlap:� processes may take place simultaneously in the context of tripartite

relationships � division of work (Stuart et al, 2007; Hess et al, 2013)

Research Organizations

RBSOs Users

- Support further development- Joint development of new or complementary knowledge

- Support further development- Joint development of new or complementary knowledge

Conceptual framework

The location of RBSOs partners:

�RBSOs tend to be located in clusters, usually in large cities:� importance assumed by the proximity to major universities in

gaining access to knowledge spillovers, which is often facilitated by the personal networks of academic entrepreneurs (Conceição et al, 2014; Heblich and Slavtchev, 2013)

� the vicinity of the parent organisations, with which they often retain close relationships, at least in the early years (Lemarie et al, 2001; Kolympiris, 2015)

� a high business concentration, thereby benefiting from agglomeration economies, i.e. positive externalities resulting from co-location (Audretsch and Feldman, 2004; Buenstorf and Geissler, 2011)

Research questions

1. Do RBSOs extend their reach beyond the academic sphere?� Are technological relationships mostly established with the parent

research organisation, or involve also other organisations located downstream?

� When networks involve downstream organisations are RBSO mostly part of tripartite relationships, also involving research organisations?

� Can we find differences across technological areas?

1. Do RBSOs extend their reach beyond the region where they are created?

� Are RBSO knowledge networks more frequently composed of organisations located in the main metropolitan areas?

� Do RBSOs establish technological relationships preferably with organisations located in the same region?

Empirical study�Formal networks established by the Portuguese RBSOs � in the context of publicly funded research, technology and pre-

commercial product development projects. Period: 1993-2015� In the context of European funded research. Period

�Network configuration along two levels:� organisational level, in order to understand whether RBSOs extend

their reach beyond the academic sphere; and if they do, whether they relate with similar firms or connect to organisations located downstream in the knowledge value chain, and which is their position in networks involving both research organisations and other firms.

� spatial level, in order to understand whether RBSOs extend their reach beyond the region where they are created, thus potentially acting as connectors between diverse regions.

Empirical study - Data

�Population: Portuguese RBSOs created until 2007�327 RBSOs

�Data bases: Portuguese Innovation Agency (AdI) database; CORDIS database

�110 RBSOs involved in collaborative projects:�Total of 481 projects identified: 210 European; 271

Portuguese.�Total of 2212 actors identified

Empirical study - Methodological options

Network Reconstruction�Collaborative projects � two-mode networks that link

organisations to an event - the projects. �One-mode network, considering inter-organisational

networks, where a tie joins two organisations, if they collaborate in the same project.

Projects

Organizations

Inter-organizational network

Empirical study - Methodological options

�Symmetric adjacency matrices, valued by the number of common projects

�Social Network Analysis (SNA), using UCINET software. The diagrams were obtained with NetDraw softwarei. the size of the network, in terms of number of actors and ties; ii. the network composition, in terms of the share of each type of

partner; iii.the positioning of actors, assessing their centrality and their role as

cut-points.iv.network structure

Results Portuguese RBSO innovation network –All projects

Legend:Spin-offs - blue;Firms - red; Universities - yellow;Other – green;Portuguese: squares;Foreign: circles.

Network size 2212 organizations

Composition SO 5%

RO 28.7%

Other firms 55.5%

Other org 10.8%

Portuguese 27.2%

Average degree

Average distance 28.7%

Diameter 55.5%

Centralization 10.8%

Density 27.2%

Components

271 Portuguese Projects 210 European Projects

Results Projects by Technological Area

Results Portuguese RBSO innovation network –Energy & environment

Legend:Spin-offs - blue;Firms - red; Universities - yellow;Other – green;Portuguese: squares;Foreign: circles.Size proportional do degree centrality

Network size organizations: 240

Composition SO 8.3%

RO 31.7%

Other firms 45%

Other org 15%

Portuguese 35.8%

Average degree 16.4

Average distance 2.9Diameter 5Centralization 14.6%Density 6.9%Components 3

Results Portuguese RBSO innovation network –Energy & environment

Legend:Spin-offs - blue;Firms - red; Universities - yellow;Other – green;Portuguese: squares;Foreign: circles.Size proportional to betweennesscentrality

Network size organizations: 240

Composition SO 8.3%

RO 31.7%

Other firms 45%

Other org 15%

Portuguese 35.8%

Average degree 16.4

Average distance 2.9Diameter 5Centralization 14.6%Density 6.9%Components 3

Results Portuguese RBSO innovation network –Engineering

Legend:Spin-offs - blue;Firms - red; Universities - yellow;Other – green;Portuguese: squares;Foreign: circles.Size proportional to degree centrality

Network size organizations: 138

Composition SO 7.4%

RO 31.8%

Other firms 52.7%

Other org 8.1%

Portuguese 39.2%

Average degree 17.8

Average distance 2.6Diameter 5Centralization 40.9%Density 12%Components 2

Results Portuguese RBSO innovation network –Engineering

Legend:Spin-offs - blue;Firms - red; Universities - yellow;Other – green;Portuguese: squares;Foreign: circles.Size proportional to betweennesscentrality

Network size organizations: 138

Composition SO 7.4%

RO 31.8%

Other firms 52.7%

Other org 8.1%

Portuguese 39.2%

Average degree 17.8

Average distance 2.6Diameter 5Centralization 40.9%Density 12%Components 2

Results Portuguese RBSO innovation network –Electronics & instrumentation

Legend:Spin-offs - blue;Firms - red; Universities - yellow;Other – green;Portuguese: squares;Foreign: circles.Size proportional to degree centrality

Network size organizations: 561

Composition SO 6.4%

RO 25.5%

Other firms 54.8%

Other org 13.2%

Portuguese 30.9%

Average degree 19.1

Average distance 2.9Diameter 6Centralization 37%Density 3.4%Components 3

Results Portuguese RBSO innovation network –Electronics & instrumentation

Legend:Spin-offs - blue;Firms - red; Universities - yellow;Other – green;Portuguese: squares;Foreign: circles.Size proportional to degree centrality

Network size organizations: 561

Composition SO 6.4%

RO 25.5%

Other firms 54.8%

Other org 13.2%

Portuguese 30.9%

Average degree 19.1

Average distance 2.9Diameter 6Centralization 37%Density 3.4%Components 3

ResultsPortuguese RBSO innovation network –national projectsType of actor

Legend:Spin-offs - circle;Firms - square; Universities - triangle;Other - diamond.

Network size 363 organizations

Composition RBSO 23%

RO 14%

Other firms 55%

Other org 8%

Results Technological collaborations – typeNational projects

Number Percentage

Spin-offs + Research organisations 96 50

Spin-offs + Downstream organisations 33 17

Spin-offs + Research organisations +

Downstream organisations

63 33

Spin-offs coordination 148 77

Total Number of projects 192 100

Role of RO:- Strong participation: 50% + 33%, despite relative low share in network

compositionRole of parent:- ¼ of the projects parent is the only partnerIntermediation role of RBSOs:- tripartite projects- coordination- Betweeness centrality: 1/3 of top 10% actors are RBSOs- Cut-points: almost one half of cut-points are RBSOs

Resuts

Legend:Spin-offs - circle;Firms - square; Universities - triangle;Other - diamond.The size of the node reflects the actor betweeness centrality

Betweenness centralityNational projects

ResultsPortuguese RBSO innovation networkNational projectsLocalisation

Network size 363 organizations

Composition Lisboa 21%

Porto 30%

Coimbra 12%

Aveiro 12%

Braga 9%

Other 16%

Legend:Lisboa - Light green; Porto - Blue; Coimbra - Red; Braga - Yellow; Aveiro - Light yellow; Beja - Purple; Bragança - Light orange; CasteloBranco - Orange; Évora - Light blue; Faro - Green; Leiria - Dark blue; Santarém - Light pink; Setúbal -Pink; Viana do Castelo - Violet; Vila Real - Light grey; Viseu - Dark grey; Madeira - Brown; Foreign - Black.

Results Technological collaborations – localNational projects

- proximity seems to be important in the establishment of these technological partnerships, since a large share of the projects involve partners in the same municipality and/or district

- more than half of the RBSOs also relate with organisations outside the municipality and even outside the district, suggesting that there may be knowledge circulation beyond the region where they are located

Proximity of network partners in each project (n=192)

Number %

At least two in the same district 152 79.17

All in the same district 88 45.83

At least two in the same municipality 129 67.19

All in the same municipality 70 36.46

Conclusions

�ROs are a central actor in RBSOs networks, being the sole partner for some of them. Parents have a prominent role, specially in national projects.

... But half of the RBSOs have moved beyond the academic sphere, being frequently a central element in tripartite technological relationships between research and other organisations and occupying an intermediation position in the network, thus potentially acting as facilitators in knowledge circulation and transformation. This is the case in European projects

Conclusions

�RBSOs are predominantly located in the main metropolitan areas and tend to relate with organisations in the vicinity, in national projects.

… in about half of the cases, RBSOs knowledge networks have extended beyond regional boundaries.

�Therefore, this research suggests that RBSOs act:�as brokers between the other network actors�as connectors across regions.

Oscarina Conceição, DINÂMIA’CET-IUL & Polytechnic Institute of Cávado and Ave

Cristina Sousa, ISCTE-IUL & DINÂMIA’CET-IUL

Margarida Fontes, LNEG – National Laboratory of Energy and Geology & DINÂMIA’CET-IUL

ECIE 2015 ConferenceThe University of Genoa, Italy

17‐18 September 2015

Research -based spin -offs as agents of knowledge dissemination: evidence from the analysis of innovation networks