“it takes more than two to tango: building up linkages ... “it takes more than two to tango:...
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“Ittakesmorethantwototango:BuildinguplinkagesbetweenNonHigh-techSMEsandUniversities”
AbstractSubmissiontotheSPRU50thAnniversaryConference2016:TransformingInnovation:scienceandTechnologyforSocialNeeds
Authors:Dr.GeorgeTsekourasCentreforResearchinInnovationManagementUniversityofBrighton154-155EdwardStreetBrighton,UKTel:(++44)[email protected]édeCamposSchoolofAppliedSciencesUniversityofCampinasRuaPedroZaccaria,1300Limeira,[email protected]
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Bio:DrGeorgeTsekourasistheleaderofthegroupInnovation,KnowledgeandEntrepreneurialDynamicsinCENTRIMattheBrightonBusinessSchoolandtheChairoftheInnovationSIGandtheInnovationTrackintheBritishAcademyofManagement.HehasledresearchonenablinginnovationinmainstreamSMEsthroughpeer-to-peerlearningnetworks,innovationcoaching,planningandimplementingnewproductdevelopmentstrategiesforSMEs,fosteringlinkageswithexternalresearchthroughthelensofabsorptivecapacity,professionaliseopeninnovationetc.Hewastheco-ordinatoroftheRAPPORTconsortium(www.rapport-project.eu),whichlookedatbestpracticestoconnectSMEstoresearchorganisations.Heisalsotheco-ordinatoroftheINSPIREconsortiumtolookatbestpracticesofOpenInnovationforSMEsandwaystosupporttheirprofessionalization.Heisthefounderofseveralpeer-to-peerlearningnetworksinUK,IrelandandSouthAfricawhichthelastREFexerciseratedasatopscoreimpactcasestudy.HehasafirstdegreeinmechanicalengineeringandaDPhilfromSPRUattheUniversityofSussex.Heistheauthorofanumberofpapersinacademicjournals,booksandinternationalconferences.Bio:DrAndredeCamposholdsadegreeinEconomicsfromtheStateUniversityofCampinas,MasterofScienceandTechnologyPolicyattheStateUniversityofCampinas(1999)andPhDfromScienceandTechnologyPolicyResearch-SPRU,UniversityofSussex,UK.DrAndredeCamposworkedasaResearchFellowinCENTRIMattheUniversityofBrightonandtheResearchCouncilsintheUK(2008/2009).HewasalsoaFacultyFellowofBrightonBusinessSchoolattheUniversityofBrightonbetween2012-2014.Heisarefereeofnationalacademicjournals(JournalofInnovation),internationalacademicjournals(ResearchPolicy)andfortheESRC(UK).HehasresearchexperienceinprojectsfundedbytheESRCandtheEuropeanCommission.Healsohasteachingexperienceineconomicsandbusinessadministration(UniversitiesofSussexandBrighton).Hisresearchfocusesonevaluationofinnovation,innovationandknowledgeandtechnologytransfer,science,indicatorsandimpacts.
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“Ittakesmorethantwototango:BuildinguplinkagesbetweenNonHigh-techSMEsandUniversities”
Abstract:
Thispaperinvestigatestheuniversity-industrylinksinanewcontext.Morespecificallyitexaminesthelinkagesbetweennon-high-techSMEsanduniversities,tryingtoshedlightonthecriticaldifferencebetweenthecurrentapproach(andpolicies)touniversity-industrylinksandthenewrequiredapproach.Thecollectedevidencepointsouttotheneedtodevelopanew‘logic’foruniversityindustrylinkswheretheprocessishighlyinteractive,incorporateelementsoffrontierandestablishedknowledgeandincludesbothtechnologiesand‘softer’skills.Moreimportantly,thenewlogicshouldhavemoreofademand-ledlogicorevenbetterofanetworkingmodewiththeSMEplayingthepivotalroleintheprocess.Acriticalroleinthisprocessistheabilityoftheinnovationsystemtodeveloptheabsorptivecapacityofthenon-hightechSMEs.
TheimplicationforpublicpolicyisthattraditionalmechanismstofostercollaborationsbetweenuniversitiesandSMEsarenotadequatefornon-hightechSMEs.NewmechanismsareneededdemandingconsiderableresourcesandahighdegreeofformalizationinResearch,TechnologicalDevelopmentandInnovativeactivities.Non-researchintensiveSMEshavescarceresources,andwheninvolvedininnovativeprojectsarelesscapableofmanagingtheprocess.Thisprofileofventureisnotmatchedbyexistinguniversitysystemsandpolicies,bothofwhichshouldtakeactiontoenablethenew‘logic’.
1 IntroductionTheliteratureaboutuniversity-industrylinkshasrevealedthatsizeisarelevantfactorinfluencingtheuniversity-industrylinks.HistoricalevidenceintheUSandGermanyshowsthatgrowthinthelinkswithuniversitiesfollowedthegrowthinthescaleoffirms(MoweryandRosenberg,1989;Reich,1985andFreemanandSoete,1997).ThepositiverelationshipbetweenfirmsizeanduniversitylinksisevidentfromsurveystudiesintheUS,UKandEurope(Arundeletal.,1995;ArundelandGeuna,2004;Hughesetal.,2007).SpecificdataabouttheUKinformedthatthree-quartersoftheuniversityincomecamefromcontractswithlargefirms(CharlesandConway,2001).
Exceptiontothistrendisthehigh-technologySMEsbuttheshareoftheseSMEsdonotexceedthe13%oftotalpopulationofSMEs–withamorelikelyfigurearound5-7%.Morerecentcontributionshavestressedtheneedtounderstandbetterthe“hiddeninnovations”(NESTA,2007)thatisinnovationplayersthatarenotthefocusoftraditionalinnovationstatistics.Arundeletal.(2008)referredtotheconceptof“neglectedinnovators”,suggestingthatresearchhasdevelopedlimitedunderstandingofinnovationactivitiesthatdonotinvolveprocessesofformalR&D.Robertsonetal(2009)presentverythoroughlythecaseforthenon-researchintensivefirms,namelythefirmsthatspendlessthan5%oftheirturnoverinR&D.Hervas-Oliveretal(2011)emphasisestheneedtoanalysenon-R&Dinnovatorsinlow-technologycontext.Thereisnodiscussionaboutthenon-hightechSMEswhichhoweverareanessentialelementofsystemsofinnovationatthenationalorregionallevelbysupportingor‘complementing’innovationinlargefirmsorinhigh-techSMEs,forinstancethroughthesupplyofspecialisedgoodsandservices.Moreoverthesheersizeofthispopulation(thevastmajorityofSMEs)togetherwiththerangeofsocialbenefitstheyrepresent(e.g.reducingunemployment)makesthecaseofnon-hightechSMEsworthexamining.
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Thechallengesofthelow-mediumtechfirms’accesstoscientificinstituteshavebeendiscussedbefore(Hervas-Oliveretal,2012).Neverthelessthediscussionhasmadenospecificreferencestothechallengesandtheissuesinvolvedintryingtoconnectnon-hightechSMEstouniversitiesandresearchinstitutes.ThisisanimportantomissionbecausetherearescarceresourcesavailableintheseSMEstogeneratesophisticatedknowledgedemands.Non-hightechSMEsusuallyhavenarrow(ifany)technologicalcapacity,limitedfinancialassetsandabilitytorunrisksandasmallnumberoftechnicalstaffavailable.Inaddition,non-high-techSMEsusuallyundertakeinformalResearchandDevelopmentactivities(RothwellandZegveld,1982andTiddetal.,2001).Inaddition,intheuniversityside,thetypeofknowledgesuppliedmaybebeyondtheneedsofSMEs.Universitiesoriginallyfocusedonknowledgecreation‘foritsownsake’(Martin,2003).Whilethesituationhaschangedrecently,thishasremainedtosomeextentasatraitoftheirresearchactivities,whichistraditionallyfocusedonthecreationofknowledgedictatedbythecommunitiesofscientist(Gibbonsetal.,1994).ThistypeofknowledgemaynotbedemandedbySMEs(Bessant,1999),especiallythenon-hightechones.
2 LiteraturereviewRobertson et al (2009) present very thoroughly the case for Low andMediumTechnology(LMT)firms,namelythefirmsthatspendlessthan5%oftheirturnoverinR&D.Theypointout that “the importance of LMT sectors is not based on a simple (and simple-minded)assertionthattheyalwayshavebeenand,inalllikelihoodwillremain,statisticallydominant”.They articulate the significance of LMT by quoting a study of several OECD economies(Sandvenet al., 2005)which calculated thatLMTsectorswere responsible for34.8%of allmanufacturinggrowthincontrastwith32.7%ofhigh-technologysectors.Totheiropinion“ifinnovationby-passesolderindustries,thiswillstiflethedemandforhigh-techproductsandreduceincentivesforR&Dactivities”(p.441).Hervas-Oliveretal(2012)discussesthechallengesofthenon-researchintensivefirmstoaccesstheresearchbase.Existingliteratureseemstobelievethatnon-researchintensiveSMEshavenointrinsicreasontoconnecttoresearchinstitutions.Eveniftheydecidetolink-uptheylacktheresourcesandtheknow-howtoaccomplishthejob.Themismatchbetweentheresourcesofnon-hightechSMEstocreatesophisticatedknowledgedemandandtheknowledgeactuallysuppliedbyuniversitiesmightbesolvedbytheentrepreneurialuniversity(Clark,1998).Byreorganisingtheirresearchagendatomoreapplicableends,fosteringcommercialisationofideasandcreatingadequateknowledgetransfermechanisms,entrepreneurialuniversitiesmayinprinciplebeabletogenerateandcommercialiseknowledgethatbettermeettheneedsofrecipientorganisations(Etzkowitz,1998).There are a number of issues that are related to the theme of innovation in non-high techcontext (Robertson et al, 2009). Firstly, technology diffusion is a complex process, notsufficiently understood, especially from high-tech developers to non-high tech firms. Theissueofcommunicationbetweenthedevelopersofhigh-techsolutionsandpotentialusersofthese solutions is a critical one. Secondly, non-research intensive firms usually innovatecustomisinglocally,importedtechnologiesonthebasisoflearning-by-doingandlearning-by-using. The drive for innovation comes usually from the need to fit-in imported technology
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withexistingsystemsandcapabilities.AccordingtoHeidenreich(2009),processinnovationismore important thanproduct innovation innon-research intensive firms.GrimpeandSofka(2009)argue thatnon-research intensivecompanies look tocustomersandcompetitors fornewknowledgeincontrasttohigh-techcompanies,whichconcentrateinsteadonuniversitiesandsuppliers.Inhigh-technologysectors,universitiesarethemainelementsthatpushtheknowledgefrontierunderpinningtheexploitationofintellectualpropertyrightsthroughnewcommercialopportunities(suchasspin-offcompanies).Theunderlyinglogicofthisapproachisthattheuniversities-SMEslinksareusuallyidentifiedasinvolvingfirmsintotheprocessoftheactualresearch.Howeverinsomecases,smallbusinessesneedaccesstoalreadydevelopedcompetenceandknowledge.Auniversitycanplayarolewithabroaderremitthatisreceiving,disseminating,interpretingandredeployingknowledgetotheregionalindustry(Lester and Piore, 2004):
• Universitiescanmakesignificantcontributionstotheeducationandtrainingofhumanresourcesofregionalcompanies
• Universitiesaddsignificantlytothestockofcodifiedknowledgeaninvaluablefunctionforregionalcompaniesespeciallyintechnicalareas
• Universities can exploit their well-endowed infrastructure and their well-educatedpersonneltoprovideproblem-solvingservicesfortheregionalfirms
• Due to their impartial character universities are uniquely positioned to provide apublicspacefortheindustrytodiscussfuturedevelopmentsintheirindustry,developpartnershipswithcompaniesandconnectwithotherinnovationsupportorganisations
Although these are valuable insights, they do not refer specifically to the linkages betweennon-research intensive SMEs and research-based institutions in the context of a regionalinnovation system. Responding to these challenges, this researchwill investigate thewaysthat the innovative capabilities of non-research intensive SMEs can be supported throughlinking-upwitharegionaluniversity.Issuestobeinvestigatedincludethefollowing:
• hownon-researchintensiveSMEs,mostofthemwithlimitedabsorptivecapacity,obtainedtheassistancethattheyneededtoshapetheirrequirementsfromtheuniversity?
• whatwastheroleofthepeer-to-peerinteraction(withexecutivesfromothersimilarSMEs)inthephaseofrequirementsshaping?
• whatwasthefocusoftheknowledgeandtechnologytransferandwhethertherewereanynoticeabledifferencesbetweendifferenttypesofnon-researchintensiveSMEs?
• howtheprocessofknowledgeandtechnologytransferunfolded?and• whatweretheresultsoftheseprocessesintermsofknowledgetransferand
generationofeconomicvalue?
3 Methodology,sixeofsample,methodsusedetc.(max1paragraph)
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3.1 Embeddedcasestudydesign
Theresearchquestiondealswithanunderstudiedproblemarea:thelinksbetweennon-high-techSMEsanduniversities(excludinguniversityspinoffs).Casestudiesareidealtoilluminateproblemareasthatneedafirstroundofevidence.Welookedforavarietyoftrajectoriesofmechanisms,whichshouldenableanexplorationofthedegreeofimportanceofallrelatedindustryfactors.Thisrequiredacollectionofmultiplecasestudies(Yin,2003).Weplannedtostudymultiplecasesinasinglecontext,thispointedustoanembeddedmultiplecasestudydesign(Yin,2003).
Thispaperissettoinvestigatetheprocessofdevelopinglinkagesbetweennon-researchintensiveSMEsandaregionaluniversity.Thispaperreportsonamultiplecase-studyresearchprojectwhichlookedataregionaldevelopmentprogramme,theProfitnetprogramme,fundedtheBritishgovernmentandimplementedbyauniversityinSoutheastEngland.Profitnetfosteredregionallearningnetworks(Bessantetal,2012;MarshallandTsekouras,2010)toun-locktheinnovativepotentialofnon-researchintensiveSMEs.
ThecaseoftheProfitnetprogrammefittedthemultiplecasestudymethod.Theprogrammestartedin2003basedonearlierresearchofoneofusaboutconstructedlearningnetworks(BessantandTsekouras,2001).Profitnethasinvolvedsofarmorethan1500SMEs.Theprogrammeisbasedonfacilitatedgroupmeetings.Eachgroupmeetsonceamonthforthreehours.Themeetingsareneed-led,andmembersdrivetheagenda.Theprogrammeaimstoactasafriendlycriticalconfidante(thefirstactofthelearninggroupistonegotiateaconfidentialityagreementandcodeofconductamongstmembers)andasabrokerbetweentheparticipatingSMEsandtheUniversity.Specially-trainedfacilitatorsmanagethegroupswhilespecialassignedmanagers(fromtheKTTofficeoftheUnversity)arealsopresenttoreferspecificneedstotherelevantUniversitydepartment.
TheUniversityimplementedtheProfitnetprogrammeintheSussexcounty.Sussexisaneconomicallydevelopedregionanditischaracterizedbyalargepresenceofservicecompanies.OurevidenceonSMEsiscontextspecific–andcannotbegeneralizedtoregionswithdifferentcharacteristics.
3.2 Samplingprocedures
Weusedthefollowingsamplingprocedures.First,inProfitnetwewantedtoidentifycompaniesdrawingupondifferenttypesofknowledge:(i)knowledgecreationfortheSMEfocusingontheknowledgefrontierand(ii)knowledgediffusionfortheSMEsfocusingonthediffusionofexistingknowledge.Itdoesnotmeaneitherthattheremightnotbenuancesbetweenestablishedandnewknowledge.Forinstance,researchcangenerateincrementalanddisruptiveadditionstoestablishedknowledge.Thedichotomybetweenestablishedandnewknowledgeisavalidsimplificationthatenableustocollectourdataandanswertheresearchquestion.Thesampleincludedsevencompaniesusingnewknowledge(knowledgecreation)andsixcompaniesusingexistingknowledge(knowledgediffusion).
Second,wewantedtoidentifycompanieswithdifferencesintheirsizeandsectorofactivities.Ourmotivationforthischoicewastwofold.Wealsowantedtostudycompanieswithdifferentsizes.WeadoptedherethedefinitionoftheEuropeanUnion(2006)basedonheadcount.Accordingtothisdefinition,mediumcompanieshavebetween51and250employeesandsmallcompanieshavebetween11and50employees.Weconsideredthatencompassingfirmsrangingfrom1to50employeeswithintheconceptofsmallcompaniesasexcessivelycomprehensive.Forthisreasonwedepartedfromtheliteratureandaddedanothercategorytoourstudy:microcompanies.TheEuropeanUniondefinestheseashaving10employeesor
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less.Thiscategoryincludesmicro-sizedstart-ups.However,microcompaniesandmicrostart-upswereanalyzedtogetherinthepaperastheyhadmanysimilarities(apartfromyearsofexistence).Thisisevidentfromtheclearershadedareaintable2.Wesampledsixmicro,foursmallandthreemediumsizedcompanies.Table1Criteriatosamplecompanies
SMEtype(size§or)
KnowledgeDiffusion
KnowledgeCreation
MicroStart-upManufacturing MicroStart-upService Beta AlphaMicroManufacturing Zeta
MicroService Delta/Gama EpsilonSmallManufacturing Iota Eta
SmallService Kappa ThetaMedium-sizedManufacturing Mu Lambda/Nu
Medium-sizedService
TheselectedSMEswerealsodifferentiatedintermsoftheirsector.Sotheyoperatedeitherinmanufacturingorinservices.AllSMEswerenon-hightech,accordingtothemostwidelyaccepteddefinition,namelyR&Dexpenses(includingallR&Dactivities)lessthan5%ofturnover.Table1articulatesthedimensionsoffirm’ssize/sectorofactivityandtypeofknowledge.Italsoclassifiesthesampledcompaniesaccordingtothesecriteria.
3.3 Researchprocedures
ThecompaniescodedinTable1werefirstlyselectedbasedonthecriteriaabove.WethencollectedevidencefromseniorandjuniormanagersworkingfortheKTTofficeoftheUniversityandassistingthoseProfinetSMEswhopursuedalinkwithaUniversitydepartment.TheevidencesuppliedbyKTTpersonnel(13interviews)wascomparedagainstthe16interviewstakenfromthesamplecompanies.WealsotriangulatedevidencefromSMEsandKTTpersonnelwithevidencereceivedfromacademicsinvolvedintheseprojects(8interviews).Alltogether,wehavecarriedout37interviews.Thetablebelowsummarisesthetriangulationproceduresusingprimarydata.Table2Proceduresforcrosscheckingevidence
Companyinterviewed Checkingwithprojectmanager CheckingwithacademicsAlpha ü ü Beta ü ü Gama ü ü Delta ü ü Epsilon ü -Zeta ü -Eta ü ü Theta ü ü Iota ü ü Kappa ü -
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Lambda ü ü Mu ü ü Nu ü -
Source:Ownsources.
4 EmpiricalEvidence:CaseStudiesWegroupedthecasestudiesbysize.Section4.1coversmicro/start-ups,section4.2smallcompaniesand4.3mediumcompanies.
4.1 Micro/Start-ups
Case1Alpha
Alphaisastart-upthatsellsshort-breakpackagesforgrandparentsandgrandchildren.ThisisInternetbased,andthedesignofitswebsitewascrucialtothecompany.ItjoinedProfitnettosharpenitsstrategyandcreateasocialnetwork.ThecompanyhopedtogethelpandideasonitsstrategyfromProfitnetmembers.AfterjoiningProfitnet,thecompanylinkedwiththeUniversityfirstbyundertakingtwoshort-termtrainingcourses(innovationmanagementandabsorptivecapacity).ThispromptedAlphatorealisethatitcouldincreaseitslinkswiththeUniversity.Alphafoundoutthatthereisalmostnoknowledgeavailableabouthowtheelderlyspendtheirleisuretime,particularlyabouthowgrandparentsandgrandchildrenspendtheirtimetogether.Itintendedtostructurefocusgroupstoilluminatethisaspect,andapproacheditsgroup’sfacilitatoraboutassistancefromtheUniversityonthisissue.TheparticulartopicofresearchthatinterestedtoAlphahappenedtobeofinteresttoacademicsworkingtwotopics:thetourismindustryandthehabitsoftheelderly.
Alphaintendedtotapintotheskillsoftheacademicsforfund-seeking,structuringscientificallyvalidatedmethodsandknowledge-exchangingingeneral.Alphaneededtoimplementtheprojectinashortperiodoftime,andthislimitedthescopeoftheacademicsinpreparingaproposaltosecureresearchfunding.Toovercomethisproblem,bothpartsagreedthattheresearchmightbeimplementedaspartofamasters’dissertation.OneownerofthecompanyhadamastersdegreeandthisinfluencedthedecisionofAlphatocollaborateinamasters’work.ThecompanytrustedthecompetenceoftheUniversitytodeliverthestudy.Thestudyconsistedoftwostages;anInternetsurveytargetedtograndparentstobefollowedbythreefocusgroupsontheholidayhabitsofgrandparents.TheprojectwasseenbyAlphaasafirststepintoalong-termcommitmentwiththeUniversity.Itshouldprovidethecompanywithprimarydataandaprotocolforfocusgroupstobettertargetitsmarketingeffortsandincreasesales.Atthesametime,itwouldenabletheUniversitytocarryoutresearchwithpracticalapplications–andtogeneratematerialforteachingactivities.Thecompanybenefitedbysavingcostsasitgotfreeknowledgeabouttheexistingacademicliteratureintheareaandfreefeedbackonitswebsite.
Case2Beta
Betaisastart-upspecializedinwebdesign.ItsMDhastwentyyearsofexperienceinthisarea(mostlyasanemployee).Betaworksinassociationwithspecialistwebdesignagencieson
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contractsdeliveredtolargeretailerssuchasCurrys.ContactsareimportanttotheMDbecausehemustcontinuouslyprospectcustomersandassociatewebagencies.
TheMDjoinedProfitnetfortworeasons:1)tolearnaboutbroadbusinessissues(e.g.timemanagementandbusinessmodelforecasting)and2)moreimportantlytoexpandhisnetworkofcontacts.ThesecondreasonpromptedtheMDtovolunteertomakepresentationstoProfitnetgroupsonwebdesignissues.ThemainoutcomefromthisactivitywasanimprovementinthepresentationskillsoftheMD.HealsogotaclearerviewoftheunderstandingoftheInternetbyProfitnetmembers.Betabenefitedfromtheactivitybyobtaininganewcontractoutofthesepresentations.
ThecompanydidnotdevelopanyotherlinkswiththeUniversityandhasarathershort-termmotivationinworkingwithauniversity.Still,ProfitnetincreasedhistrustontheUniversityasitassuredasafeforumfordiscussions.TheMDalsotrustedthegroupfacilitatoronapersonalbasis.TheexperiencemotivatedBetatoofferastudentplacementtotheuniversity.Case3Gama
Gamaisacompanyspecialisedinthedesignofmusicequipment(e.g.postureseatingandinstrumentcupboards),designofacousticsolutionsinthebuildingenvironmentandthemanagementofprojectsrelatedtomusicauditoria.Itsmainclientsaremusichalls,musiceducationinstitutionsandhigher-educationinstitutionsinvolvedwithmusic.Thecompanyhassixmulti-taskemployees,allinvolvedindesign,marketingandsales.Thecompanyoutsourcetheremainingactivities(e.g.itsmanufacturingisdeliveredbythirdpartiesinItaly).Itroutinelycomplementsitsdesigncapacitybysub-contractingspecialists.Itcountsonclosefeedbackfrombusinesspartners,musiciansandcontractorstodeliveritsprojects.
ThecompanyjoinedProfitnettoincreaseitsnetworkofmanufacturers.Throughthegroupmeetingsitvoiceditsdifficultyindesigninganacousticshield.Gamafailedtoproduceandtestaprototypeoftheshieldwithsub-contractedmanufacturers.Itsoughttoaccomplishacompletedesignoftheproduct.Theshieldisanincrementalinnovationtocouplewithitsposturechair.ThechairwasthefirstproductdesignedandsoldbyGama.ItsdevelopmentwasdoneincloserelationtotheCityUniversityofBirmingham.Thecompanyretainedalong-lastinginformallinkwiththisinstitution.Becauseofthisexperience,Gamahadbothapersonalandcompetence-basedtrustonuniversitiesandwelcomedthesuggestionofthegroupfacilitatortointeractwiththeUniversityintheacousticshieldproject.Stillthecompanyhadashort-termmotivationinworkingwiththeUniversity.Thecompanyuseduniversityinfrastructure,itsRapidPrototypingCentreinHastings,toundertakethistask.TheCentreobtainedthespecificationsfromGama,completedthedesignoftheshield,manufacturedaprototypeandtesteditinanacousticlaboratoryattheUniversity–undertheguidanceofaprofessor.Theoutcomeoftheproject(aprototype)wasdeliveredtoGamajustintimeforamajormusicfair.Gamasofarhasbenefitedfromsavingdevelopmentcosts.
Case4Delta
Deltaisanestablishedsupplierofspecialisedcustomisedtrainingtobusinessfirms.DeltajoinedProfitnettoenlargeitsnetworkofcontacts.ThefirmhopedtofindnewclientsamongProfitnetmembers.DeltafirstlylinkedwiththeUniversitybyashort-termtrainingcourseoninnovationmanagement.Deltaistryingtoextenditsportfolioofservicesbyofferinghands-ontrainingwithactivitiessuchassailing,cookingormusicplaying.Thecompanyundertookfurtherlinks
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withtheUniversity.Motivatedbyshort-termneeds,itrentedaUniversitystudiodesignedtoteachcookingskillstostudentsinthefieldoftourism.
ThefacilitywasidealforthetypeoftrainingthatDeltaintendedtooffer.Itcountswithstate-of-the-artequipmentandisdesignedasaclassroom.Followingtwotrialsessions,thecompanycompletedthedevelopmentofanewcooking-basedtrainingsession.Therelationshipwascontractual,andscarceindividualandcompetence-basedinstitutionaltrustwascreated.ThemainoutcomeoftheprojectwasanewcoursedesignedbyDelta.TheopportunisticfeatureoftherelationshipcoupledwithDelta’signoranceonhowtoobtainmorehelpfromtheUniversityblockedanyotherlinks.
ThenewcoursebecamepartofDelta’sportfolioofservices.Themainbenefittothecompanyisthesuccessfulcommercialisationofthecourseinthreeoccasions.DeltaperceivedthatworkingwiththeUniversitymightalsoincreaseitscommercialcredibility.Besides,withtheexperiencegainedbydevelopingthecookingtraining,thecompanybecameabletodevelopnewformatsofactivity-basedtraining.Inspiteofthesebenefits,theUniversityreportedthattherewerenoknowledgeexchangesinthiscase.
Case5EpsilonEpsilonisataxiandairporttransfercompany.Ithasapart-timeandafull-timedriver(theMD).Epsilonstrategyiscentredonenvironmentalsustainability.Itsfleetoftwocars(withfourandsixseats)isrunonbiodieselmadeofrecycledcookingvegetableoil.Thecarshadminoradaptationsintheirfuelpumpstocopewiththefuel.AllsuppliersofEpsilonhaveasimilarstrategy,butitskeysupplierisanEastSussexsmallsizedbiodieselrefinery.Epsilonhaslowervariablecoststhantheaveragetaxicompanybecausethebiodieselisabout30%cheaperthanregulardiesel.1Thefuelalsoallowslongermileagebetweenservices,reducingfixedcosts.MOTtestsprovethatlevelsofCO2emissionsfromEpsilonfleetarelowerthanemissionsfromenginesrunningonregulardiesel.Inspiteofthesesavings,Epsilonrunahigh-riskbusinessbecauseoftheunavailabilityofknowledgeontheeffectsofbiodieselonadaptedengines.
BeforejoiningProfitnet,EpsilontriedtoestablisharesearchprogrammeonbiodieselwiththeUniversitytotacklethisissue.TheaimwastostudytheeffectsofthebiodieselontheengineofEpsiloncars,whichwouldbeusedfordatacollection.Inspiteofthisevidenceofcompetence-basedtrust,Epsilon’smeetingswithUniversityacademicswerefruitless.TheUniversitywasnotinterestedintheproject.EpsilonthenmanagedtoinvolveitsbiodieselsupplierwiththeUniversity.ThecompanypromotedmeetingsbetweenitssupplierandacademicsaimingtoorganizeaKnowledgeTransferPartnership(KTP)onbiodiesels.AlthoughEpsilon’ssupplieremploysandpartlyfundsaDPhilstudentfromtheUniversity,therewasnoagreementontheKTP.
EpsilondecidedtojoinProfitnetinspiteoftheseproblems.Itsinterestwasinenlargingitsnetworkofcontacts.Thecompanyhasalong-termmotivationtoworkwiththeUniversityandhopestodosointhefuture.However,ProfitnetwasnotabletoincreasetheunderstandingofEpsilononhowtoobtainhelpfromtheUniversityandnomajoroutcomeresultedfromtheparticipationinthenetwork.Consequently,thecompanyhadnotaccruedbenefitsinworkingwiththeUniversity.Case6Zeta
1 Based diesel estimates from The Automobile Association Fuel Price Report (June 2008) (http://www.theaa.com/motoring_advice/fuel/ - last accessed 23 June 2008).
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Zetadesignsandsellscardboardandplasticpackages.Thecompanygetsspecificationsfromclients(suchasPretaMangerandMammasandPappas),adaptsthemtobagsandoutsourcethemanufacturetocompaniesinChina.Zetaalsomanagesthedeliveryoftheorders.ThecompanysuccessfullyhiredamastersstudentfromSussexUniversitytoworkasprojectmanager.This,coupledwiththeacademicbackgroundofthemanagerinbusinessadministration,underpinnedhiscompetence-basedtrustonuniversities.ThecompanyjoinedProfitnettomakenewcontactsfordiscussionofbroadbusinessissues.ThecompanystarteditslinkswiththeUniversitybytakingshort-termtrainingininnovationmanagement.Afterthat,Zetatriedtoestablishaconsultancywork.TheenvironmentalimpactofpackagesisakeyissueforZeta.Thecompanyisnotconvincedthatimportedreusablebagsmadeofcottoncanreplacepaperandpolyethylenebags.ThisisbecausecottonbagsarequiteintensiveinCO2.Zetawouldliketohaveareviewoftheliteratureinthisarea.Thecompanydiscussedthispointwithitsgroupfacilitator,whosuggestedaconsultancyworkwiththeUniversity.
Althoughthisprojectdidnotprogress,itintroducedthecompanytoUniversitystaff.WhentheUniversityneededindustrialpartnersfortwo3years-longresearchprojects,itdecidedtocontactZeta.ThecompanywouldworkintwoEuropeanUnionfundedconsortiumprojectsonalternativematerialsforbags.TheaimoftheprojectwastorevitalizespecificEuropeancropswithpotentialapplicationisreusablehandmadebags.Zetawillhelpintheindustrialapplicationofnewtechnologies.Thecompanyalsoincreaseditsinterestinacademicwork,andstartedtobemoreawareandfollowseminars.SofartheprojecthasprovidedZetawiththeaccesstothelatestliteratureonnewpackagingmaterials.Thecompanyexpectstobenefitfromanearlyadoptionofnewlyavailabletechnologies.
4.2 SmallsizedEnterprises
Case7Eta
Etaisamanufacturerofplasticswimming-poolcovers.Thecompany’sR&Ddepartmentfocusesonthetechnologicaldevelopmentofnewproducts.Eta’sservesavarietyofcustomersrangingfromhouseholds,tosportfacilitiesandreservoirs.Thecompanyhas20permanentemployees.Noneofthemhasahigherdegree.Thecompanyoutsourcemanybusinessactivitiestoconsultants,includingthemonitoringofsomestagesofitstechnologicaldevelopment.Ithasacloserelationshipwithpolymerandequipmentsuppliers.
EtajoinedProfitnettoobtainpeer-helpandreviewofitsbusinessstrategy.Etaneededsupportinthedevelopmentofnewandexistingproducts.Profitnethelpedthecompanytofocusonissuessuchaswatersaving,solarenergy,productlifecycleandheatretention.Althoughthecompanyhadpracticalknowledgeabouttheseaspects,itactuallyneededsystematicandtechnicallyvalidateddataaboutthem.Theseissuesweretranslatedintotechnicalquestions.ProfitnetforcedEtatothinkaboutobjectivebusinessissues,andtoplanonhowtotacklethem.
EtahadlimitedunderstandingoftheUniversitystructuresandpotential.ItwasreluctanttoundertakeanyotherlinkwiththeUniversitybeyondparticipationinProfitnet.ThegroupfacilitatoradvisedthecompanytoembarkonatwoyearslongKTPtoaddressthetechnologicaldimensionofitsbusinessisusues.PriortotheKTP,membersofthecompanywereinvitedtoattendseminarsintheUniversity.Theywerealsoflaggedtorelevantacademicliterature.Etaalsoinvitedengineeringstudentsinbrainstormingsessionstoobtainideasaboutitstechnology.ThesemechanismsluredthecompanytotheKTP.
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ThecompanyalsodiscusseditsbusinessissueswithprivateconsultantsandtheNationalPhysicsLaboratory.TheseconversationsreinforcedtheviewthatEtacouldtrustthecompetenceoftheUniversitytodeliverthenecessaryknowledgethroughaKTP.ByrespondingtothequestionsfocusedintheProfitnetmeetings,thePartnershipunderpinnedtheproductdevelopmentofthecompany.ThemechanismsusedduringtheKTPincludedaccesstotheacademicssupervisingtheKTPassociate.Thecompanyratedallmechanismsasquiterelevantforthedevelopmentofitsproducts.OvertimeEtacreatedalong-termmotivationinworkingwiththeUniversity.ThemainoutcomeoftheKTPwasnewproductdevelopmentandthecodificationoftheknowledgeusedinthekeytechnologiesofEta(e.g.onissuesaroundheat,solarenergyandwaterevaporation).EtaalsocreatedlastingR&Dinfrastructure.Furthermore,thePartnershipassociatebecameaconsultanttothecompanyinR&Dissues.Intermsofbenefits,thecompanywasabletosaveproductdevelopmentcosts.ThecompanyisnowworkingwiththeUniversity’sRapidPrototypingCentreinHastingsinpreparationtoasecondKTP.
Case8Theta
Thetaisawebdesignandwebmanagementcompany.Itcreatesstrategiestoimprovevisibilityinsearchengines.Thecompanyhas10employees,whichcombineexpertisesinalgorithms,marketingandwebdevelopment.Thecompanyhasroutinelyusedstudentplacementstocomplementitsexpertise.Iftheplacementsucceeds,thestudentsareretained.ThetaisbasedintheUniversityofSussexInnovationCentreanditsemployeesusuallyattendacademicseminars.Thetahaslong-termmotivationsinlinkingwithuniversities.Thecompanyalsohascompetence-basedtrustontheseinstitutions.BothelementswerepresentbeforeitsparticipationinProfitnet.
ThetajoinedProfitnettoobtainnewbusinesscontacts.Forthisreason,itagreedtomakepresentationstoProfitnetgroupsonhowtoincreasevisibilityinsearchwebsites.Thecompanyalsoattendedashort-termtrainingcourse(innovationmanagement).ThepositiveevaluationoftheseactivitiesmotivatedittoaccepttheinvitationofitsgroupfacilitatortoundertakeanMBAcourseprojectinassociationwithastudentforaperiodofthreemonths.Thetopicoftheprojectwasmarketresearchonsocialnetworkingwebsites.Thisisanareainwhichthecompanyneededinput–butlackedresources.Theprojectwassuccessfullycompleted.ThemainoutcomeforThetawasprimarydataonthisissue.Thecompanybenefitedintermsofaccessingthisdataatverylowcosts.Case9Iota
Iotaisasmallsizedmanufacturerofvitaminsandspecialnutrients.Thecompanysupplieshealthprofessionalsandchemists.Itusedtosupplylargesupermarketchains,butforeigncompetitorsdisplacedIotafromthemarketwithlowerprices.Becauseofthis,Iotaexperiencedasubstantialreductioninitsoutput.ThecompanyjoinedProfitnetmotivatedbytheneedtodiscusstheseissueswithpeersinasafeandconfidentialenvironment.Themainoutcometothecompanyistheidentificationofitskeyproblems.Thishasprovidedjustintangiblebenefitstothecompany.Iotafeltencouragedtojointwoshort-termtrainingcoursesofferedbytheUniversity(innovationmanagementandabsorptivecapacity).Butthecompanyratedthattheyprovidedlimitedbenefits.IotawouldliketohavecloserlinkswiththeUniversity–butthecompanydoesnotunderstandhowthiscouldbeachieved.
Case10Kappa
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Kappadesigns,rentsandprovideticketstolotterymachines.Itsmainclientsarecharitableclubs,whichhavelotterytaxexemption.ThecompanyoutsourcelotterymachineproductiontoaBritishmanufacturer.Kappacompletedamajortransitionbymovingfromusingthird-partylotterymachinestodesigningitsownlotterymachine.KappajoinedProfitnettoincreaseitsnetworkofcontactsandbetterclarifyitsbusinessstrategy.
Thegroupmeetingsprovedquiteuseful.TheyhelpedKappatoshapewaystoimproveitsbusiness.Oneofoursamplecompanies(Iota)suggestedKappatoattachamodemtoitslotterymachine.ThemodemenablesKappatomonitorticketsalesinrealtime.Kappatookonthisproject.Kappa’sgroupfacilitatoradvisedthecompanytotakeastudentplacementtohelpwithit.Intheend,theimprovementwastechnicallysuccessful.Kappadevelopedalong-termmotivationtoworkwiththeUniversity.Thecompanyisplanningtoofferasecondplacementforfollow-upwork.
ThemainoutcomeoftheprojectwasanimprovementinthelotterymachinesdesignedbyKappa.Thecompanybenefitedfinanciallyintwoways:1)fromlowcostskilledhandlabourduringtheplacementand2)bettercontrolofitscashflowuponitscompletion.
4.3 Medium-sizedEnterprises
Case11Lambda
Lambdaisamediumsizedcompanythatoperatesintheareaofmanufacturing,designanddistributionofhumidifiers.Thehumidifierscanbeappliedacrossabroadrangeofindustries(fromautomotiveandtobacco,tohospitals).ThecompanyhasitsownDevelopmentandDesigndepartment,whichdoespartsofitsprojectsinassociationtoothercompaniesintheareaofhumidification.Lambdahastraditionallyusedstudentplacementsasamechanismtolinkwithuniversities.Thecompanybelievesthatplacementsprovidelowcostskilledhand-labourtoitsoperations.Lambdahasplacedovertwentystudentsfromthreedifferentinstitutions(includingaFrenchbusinessschool),andquiteoftentheyremaininthecompanyaftertheirtrainingperiod.Forinstance,oneofitsdirectorsstartedinaplacement.Placementsusuallyprovidethecompanywithlinkstouniversityacademics,andsometimesthecompanyalsofundsfinalyearprojectsintechnicalareas.Buildinguponthissuccessfulexperience,LambdaundertookaKTPwiththeUniversity,andinthisperioditjoinedProfitnet.Followingthis,thecompanydecidetoundertakeshort-termtrainingbutnootherlinksweretriggeredwiththeUniversity.
TheKTPwasunrelatedtoProfitnetaswell.Nonetheless,itachievedtheproposedobjectivesofrevampingLambda’sproductandprocesslines.Becauseofthissuccess,LambdawillundertakeasecondKTPwithadifferentuniversitywiththepurposeofimprovingitsmarketingstrategy.Eventually,thecompanyleftProfitnetasitassessedthatitwasnotgainingfromparticipatingintheprogramme.
Case12MuMuisamediumsizedmanufacturerofprintedcircuitboards.Thecompanysuppliestheelectronicsindustry.MuoutsourcepartofitsmanufacturingtobusinesspartnersinAsia,focusingonthequalitycontroloftheseorders.Inthelasttwoyearsthecompanyhastriedtoimproveitsproductandprocesslines,forinstanceitembarkedinaprogrammetoimproveitsenvironmentalperformance.
MujoinedProfitnetmotivatedbyachangeinitsuppermanagement.ThenewManagingDirectorfeltthatitcouldgainbyinteractingwithothercompanies.TheDirectorundertookshort-termtrainingwiththeUniversitytoimproveitsmanagingskills.However,Muhad
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alreadyestablishedlinkswithuniversitiesunrelatedtotheProgramme.ThecompanyispartofaresearchconsortiuminphotonicswithSouthamptonUniversity.ItalsohasaminorstakeinanotherconsortiumwiththeNationalPhysicsLaboratories.Muhasaclearagendaforlinkingwithuniversities.Thecompanyseesthemasatooltocomplementitsknowledgeneeds.AlthoughProfitnetdidnotinfluencethisagenda,thecompanyinteractedwithstudentstoundertakeanenvironmentalaudit.MuwillcontinuetotakepartinProfitnet.
Case13NuNuisafamilybusinessthatmanufacturescables,gutteringandwindowsystems.Italsoroutinelydoesproductdevelopment,designandprocessengineering.Thecompanyhasover50yearsofexistencesupplyingtheconstructionindustry.PartofthemanufactureisoutsourcedtoChina,andNudoesthefinalassemblyintheUK.Nuhasgraduallyincreasedtheelectro-technicalcontentofitsproductsinordertostrengthenorganicgrowth.ThecompanyhasbeenchallengedbyastagnantUKmarketandlow-costcompetitionfromAsia.
PromptedbytheseissuesNuiscontinuouslymonitoringandreviewingitsstrategy.NuenteredProfitnetbecauseitofferedasafeforumforstrategydiscussion.Priortotheprogrammethecompanyhadsomeexperienceinplacingstudents.Thesestudentsjoinedspecificprojectsandundertookminortasks.ProfitnetraisedtheawarenessofNuaboutlinkingwithuniversitiesandincreaseditscompetence-basedtrust.NuwasamemberofthesamegroupasEta.ThecompanylearnedaboutEta’sachievementswiththeUniversity.ThisprompteddiscussionsforapplicationstotwoKTPscoveringnewproductdevelopmentandleanprocessesandmarketing.Bothapplicationshavebeensubmitted.Inparallel,thecompanytookaconsultancywithamarketinglecturerforreviewofitsannualstrategy.ThisresultedinfurtherworkwithMBAstudentsonthesupplychainofthecompany.Nuhasnowalong-termmotivationinworkingwiththeUniversity.
SofarNuobtainedreviewsofitsstrategyandsupplychainmanagementfromitsworkwiththeUniversity.ThecollaborationwillpotentiallyresultinfinancialsavingsrelatedtotheactivitiescoveredbytheKTPs.
5 DiscussionOveralltheevidenceshowsafundamentalchangeintheapproachofuniversityindustrylinkswhennonhigh-techSMEsareinvolved.Theoftentacit,unspoken,unexpressedbutagreeduponmentalmodel(i.e.howpolicymakersthinkpolicy)forthelinksbetweenuniversitiesandsmallbusinesseshasbeencharacterisedbya‘technology-pushlogic’.Accordingtothislogic,theuniversitiesadvancetheknowledgeinacertaintechnologyandthenasmallercompanytakesoverthecommercialisationprocessincludingthetranslationofadvancedtechnologyintoacommercialproductorserviceincludingtheadvanceoftechnologyfromalow‘readinesslevel’toahigher‘readinesslevel’.
Ourevidencepointstowardsaverydifferentlogicfortheuniversity-industrylinks,atleastwhennon-hightechSMEsareinvolved.Thelogicemergingfromthegatheredevidenceisademand-pullone,wheretheSMEsplayacriticalroleindeterminingtheknowledgetransferred,thenatureandthefocusofinteractions.
AfirstcriticaldifferenceisthatthelinksbetweenuniversitiesandSMEsrefertoawiderremitofknowledgetransfer,comparedtothecaseofadvancedtechnologies.Perhapsthebestwaytopinpointthedifferencebetweennon-hightechandhigh-techcontextistotalkabout
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knowledgeandtechnologytransferintheformercaseincontrasttoatransferdominatedbytechnologytransferinthelatercase.Thischangeimpliesthattheknowledgetransferinanonhigh-techcontextshouldincludeelementslikeproductspecificationandknowledgetransferfocusingonother“complementaryassets”(Teece1986).
Aseconddifferencebetweenthetwoapproachesisthelinkageswithnon-high-techSMEsincorporateelementsoffrontierandestablishedknowledge.TheinterestoftheinvestigatedSMEsleanedtowardsbusinessskillsandinnovationstrategy,andnotnecessarilytechnology.Theinteractionwiththeuniversityfocusedontopicssuchasassistancetodefinetheproductconceptandtheunderlyingbusinessmodel,theaccesstowell-articulatedknowledgeandonlyinafewcasesinvolvementinresearchprojects.SMEsinthestart-upphasesoughtsupportinunderstandingthecustomersrequirementsandbuilduptheconceptoftheir(developing)product.MicroSMEswereinterestedmoreinimprovingwell-definedproducts,SMEsinthesmallsizerangefocusedonthedevelopmentofproductsofnextgenerationwhilemedium-sizeSMEsusedthelinkagestocomplementtheirownR&D.
WhenanSMEhadaninterestonnewtechnologies,mostofthemwerenotinterestedinthelatestwaveofatechnologybutinatechnologythatismatureenoughtobeincorporatedinitsproducts,servicesorproductionmethodwithoutanymajorteethingproblemsandwithoutincurringsignificantcostforadjustingthenewtechnology.ThisiswhyseveraloftheinvestigatedSMEsrefertotheneedtointeractwitharesearchgroupthroughtheplacementofanadvancedstudent(e.g.aPhDstudent)totheircompanyratherthantheleadingscientist(s)ofthegrouporinvolvementinshort-termtraining.Infactallinvestigatedcasesinvolvedactivitieswithstudents(e.g.studentsvisitstothecompanyforbrainstorming,studentplacement,MBAdissertationetc.).Mechanismsinvolvingstudentscreateddirectinputstonewandincrementalproductdevelopmentregardlessofthetypeofknowledgeinvolved.
Athirddifferenceconcernstheverynatureofthetransferprocessinvolvedintheselinkages.Thetechnologytransferprocessinhigh-techSMEshasinevitablyastrongelementoflinearitywithauniversityadvancestheknowledgeinacertaintechnologyandthenasmallercompany‘takesover’oncethetechnologyhasreachedacertainlevelof‘readiness’.ThecasesofApple,IntelandtheotherSiliconValley‘wonders’aretypicalcasesofthisapproach.Stronginteractionisneededbetweentheinvolvedparties(e.g.the‘famous’seminarsthatSteveJobswasattendinginUniversityofCaliforniaaboutthethennewcomputingtechnologies)butonlyafterthetechnologyhasreachedacertaintechnologyreadinesslevel(TRL2≥6).Thepivotalroleduringtheseinteractionsbelongstotheinvolvedscientistswhodeterminetheagendaanddrivethewholeprocessthrough.Incontrast,thelinking-upprocessbetweenscientistsandnon-hightechSMEsshouldstartfromthedeterminationoftheneedsandrequirementsoftheSME,whichis–moreoftenthannot-inarelativelyweakpositiontoshapetheexactportfoliooftransferredknowledge.ConsiderAlphaandGama,whichobtainedtangibleoutcomesandclearerbenefits;thesecasescombinedsoundunderstandingoftheUniversitypotential(intermsofknowledge)withaclearvisionfromMDsoftheirneedstowardtheUniversity.Mostoftheexaminedfirmsstartedasmembersofapeer-to-peerlearningnetwork,whichallowedabetterunderstandingofthe(innovation)issuestoimproveorresolve.Theinteractionwithotherprofessionalpractitionerswithinthelearningnetworkallowedthe‘reframing’process,enablingmorecreativeandstrongerinnovationthinking.Inshortwecouldsaythatthisisastronglyinteractiveprocess(againstthemorelinearcharacteroftheprocessinthehigh-techcontext)withthenon-hightechSMEsbeinginthe
2 Technology Readiness Level
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‘drivingseat’.GiventhattheseSMEshaveusuallyasmallerabilitytoadjust,translateandengineerthetransferredknowledgeortechnology,theSMEneedsandrequirementsshouldbespecifiedatanearlystageoftheprocess;thisrequiresastronglyinteractiveprocess.Afourthdifferencebetweenthetwo‘mentalmodels’isthatinthecaseoflinkageswithnon-hightechSMEs,theabsorptivecapacityoftheinvolvedSMEsshouldbeamajorcomponentwithresourcesandspecialtoolsdedicatedtoit.Incontrasttothecasesofhigh-techSMEswheretheabsorptivecapacityisagiven,inthecaseofnon-hightechSMEstheabsorptivecapacityneedstogrowandbebroughttoalevelwheretheinteractionwithscientistsmakessense.MostofthemicroSMEsjoinedProfitnetmostlytoobtainnewcontactsandtheyhadnopreviousexperienceoflinking-upwithuniversities.Inthiscase,thedevelopmentoftheabsorptivecapacityhasbeenachievedthroughtheparticipationofnon-high-techSMEstoapeer-to-peerlearningnetworksetupandmanagedbytheinvolvedUniversity.ThereisnodoubtthatthereisavarietyofwaystoincreasetheabsorptivecapacityoftheinvolvedSMEsbutthisshouldbecomeaspecificconcernandfocusforthepolicies,theuniversitiesandtheinvolvedparties.
Theinitiationofapeer-to-peerlearningnetworkbytheUniversityhelpedtobuildtrustwiththeSMEs.Asthegroupmeetingsevolved,thecompaniesthatbetterclarifiedtheirbusinessissuesforgedstrongerlinkswiththeUniversity.MDshadabasicunderstandingoftheUniversity,theyidentifiedclearerareasofcollaboration.ThegroupfacilitatorsandEngagementOfficeofficersoftheUniversityhadtoworkactivelytolurethenon-hightechSMEstocollaboratewiththeUniversity.TheyalsoassistedthecompaniesinunderstandingbetterhowtheycouldlinkwiththeUniversity.Themainaspectherewastheformatoftheprogramme,whichcreatedaconfidentialenvironmentforbusinessdiscussionwheretheUniversityactedindependently.Withtrustinplace,companiesinallthreegroupswantedcontinueworkingwiththeUniversity.Thiswasveryimportantespeciallyforthestart-upsandthemicroSMEswhichhadnoexperienceoflinking-upwithauniversity-theyoftensawtheprogrammeasawaytomakethemmorecredibletobusinesspeers.
AlthoughProfitnetusuallyguidedthecompaniestowardssuitablelinkingmechanisms,thiswasachallengingtaskfortworeasons.First,theUniversitywasnotalwaysreadytorespondtotheknowledgedemandsofthesecompanies.Forinstance,althoughDeltamadeuseofUniversity’sinfrastructure–thiswascontractual-basedandintheabsenceofalong-termplan,therewasnonewknowledgeforthecompany.Second,thepolicytoolsdidnothavetheadequatedesigntoservetheseSMEs.EpsilondidnotobtainhelpfromtheUniversityforresearchtocreatenewknowledgeonanuntestedtechnology(biodiesels)becausethesupportingprogramme(KTP)didnotallow–atthetime-theparticipationofSMEswithlessthan5employees.Itsparticipationintheprogrammedidnotforgenewmechanisms.
Thetrajectoryoftheselinkswasdifferentbetweenmicro/start-upsandsmallandmediumsizedcompanies.Micro/start-upsandsmallcompaniesdidnothaveaclearagendatowardstheUniversity.Intheircase,short-termtrainingandstudentplacementsusuallyprecededmechanismsthatweremorerobustsuchasKTPs.TheUniversityhelpedthecompaniessubstantiallyinthis.Medium-sizedcompanieshadmoreoftheirownagendatowardslinkageswithuniversities.Theoutcomesachievedbythecompanieswerequitevaried.Theyrangedfromgenericskills,toassistanceintheimprovementordevelopmentofnewproductsorservices.StilltheoutcomesweremorerelevantformicroandsmallsizedcompaniesandthesecompaniesseemedtobenefitmorefromtheirparticipationinProfitnet.Theyusuallyreportedthatthe
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mechanismsusedreducedtheircosts.Boththeoutcomesandbenefitsofmediumsizedcompanieswererelativelylessrelevant.
Theresultssofarindicatethattheuniversitywasbetterequippedtodealwiththelargercompaniesandthosewithmorestructuredtechnicalactivities.TheuniversitywasreluctantinofferingsupporttosmallerlessresearchintensiveSMEs.TheSMEshaddifficultyinestablishingclearlytheirneedswhiletheuniversitywasnotpreparedtoguidetheselower-absorptivecapacitySMEsthroughitsinfrastructureanditsknowledgecapabilities.
6 ConclusionsOveralltheevidenceshowsafundamentalchangeintheapproachofuniversityindustrylinkswhennonhigh-techSMEsareinvolved.ThetraditionalapproachofuniversityindustrylinkswhenitcomestoSMEshasbeenatechnology-pushapproach.Inthisapproach,theuniversitiesadvancetheknowledgeinacertaintechnologyandthenasmallercompanytakesovertomanagethecommercialisationprocessincludingtheadvanceofthetechnologyfromalow‘readinesslevel’toahigher‘readinesslevel’.
TheproblemisthatthisapproachfitsonlyasmallminorityoftheexistingSMEs.Anewunderlying‘mentalmodel’isneeded(foruniversities,policymakersandotheractorsoftheinnovationecosystem)toservethenon-hightechSMEs.The‘new’modelrequiresademand-pullapproachwheretheSMEisinthedrivingseat.‘Non-conventionalmechanisms’suchasshort-termtrainingandstudent-mediatedknowledgetransferhavebeenprovedveryimportantfortheseSMEs.Companiesperhapsoptedforthesemechanismsbecausetheywerelowincostandofferedquickandclearoutcomesandbenefits.Theimplicationforpublicpolicyisthattraditionalmechanismstofostercollaborationsbetweenuniversitiesandnon-hightechSMEsarenotalwaysadequate,becausetheydemandconsiderableresourcesandahighdegreeofformalizationinResearch,TechnologicalDevelopmentandInnovativeactivitiesfromthefirmperspective.Non-researchintensiveSMEshavescarceresources,andwheninvolvedininnovativeprojectsarelesscapableofmanagingtheriskinvolved.Thisprofileofventureisnotmatchedbyexistinguniversityinfrastructure,andgovernmentsshouldtakeappropriateactiontoenabletheseinteractions.Thesecriticaldifferenceshaveahugeinfluenceontheselectedapproach,theunderlyingassumptionsandthedecisionsofpolicymakers.Itisassociatedwithanumberofchallengessuchastheneedtobecomeawareofthesefundamentaldifferences,theneedtosafeguardtherelevantresources(e.g.theresourcestodeveloptheabsorptivecapacityofSMEs)aswellastheneedtodesignandimplementstrategiesandprogrammesofanewlogic.
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Hervas-Oliver, J. L., Albors-Garrigos, J., & Baixauli, J. J. (2012). Beyond R&D activities: thedeterminantsoffirms’absorptivecapacityexplainingtheaccesstoscientificinstitutesinlow–medium-techcontexts.Economicsofinnovationandnewtechnology,21(1),55-81.Lester, R. K. and M. J. Piore, 2004, Innovation: The Missing Dimension, Cambridge, MA: Harvard University Press Marshall,N.andG.Tsekouras,(2010),“Theinterplaybetweenformalityandinformalityinmanagedlearningnetworks?”inInternationalJournalofStrategicBusinessAlliances,SpecialIssueonMulti-OrganisationalPartenrshipsandAlliancesRobertson, P., Smith, K. H., & Von Tunzelmann, N. (2009). Innovation in low-andmedium-technologyindustries.ResearchPolicy,38(3),441-446.Teece,D.J.(1986)."Profitingfromtechnologicalinnovation:Implicationsforintegration,collaboration,licensingandpublicpolicy."ResearchPolicy15(6):285-305.