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 5/9/2011 2COSINUS

Objectives Expanding previous models on the determinants of the perceived usefulness of U- PROs Distinguishing between innovators and non- innovators 5/9/2011 3COSINUS

Approach 5/9/2011 4COSINUS Oppennes Size R&D intensity Skills of the workforce Reliance on strategic innovation Market competition Cooperation in innovation Determinants of the perceiveduse of knowledge from universities & PROs The usual Our proposed novelty Population studied Innovators Non-innovators

Hypotheses 5/9/2011 5COSINUS Current models Perceived usefulness of information provided by U- PROs for innovation- related company activities Openness Expected impact H1: + Expanding models Skills H4: + Strategic innovation Technological innovation H5: - H6: - Market competition Research collaboration H7: + R&D H2: + Size H3: +

Approach Mostly disregarded: perceptions = facts Mostly considered: perceptions ≠ facts Current 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 5/9/2011 6COSINUS Determinants of the perceived usefulness of U-PROs Testable hypotheses

Hypotheses 5/9/2011 7COSINUS Current models Perceived usefulness of information provided by U-PROs for innovation- related company activities Openness Expected impact Expanding models Skills H4: + Strategic innovation H8: Technological innovation H5: - H6: - Market competition Research collaboration H7: + R&D H2: + Size H3: + H1: +

Hypotheses 5/9/ COSINUS 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 innovation H5: - 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 5/9/2011 9COSINUS

Methodology Econometric estimation of the determinants of the perceived usefulness of information provided by universities and PROs 5/9/2011 COSINUS10

Results Ordered logit model of the perceived usefulness of information provided by universities and PROs for innovation-related activities of the firm 5/9/2011 COSINUS11

Results For innovators, usual determinants apply in our sample, except R&D (H1&3 ✓, H2 ✗ ) 5/9/2011 COSINUS12

Results For innovators, other determinants play a significant role 5/9/2011 COSINUS13

Results Higher skills, higher perceived use of public knowledge (H4 ✓ ) 5/9/2011 COSINUS14

Results Lower strategic innovation, higher perceived use of public knowledge (H5 ✓ ) 5/9/2011 COSINUS15

Results For innovators, degree of competition, not related to use of public knowledge (H6 ✗ ) 5/9/2011 COSINUS16

Results Higher collaboration, higher perceived use of public knowledge (H7 ✓ ) 5/9/2011 COSINUS17

Results Non-innovators have little in common with innovators (H8 ✓ ) 5/9/2011 COSINUS18

Results Openness, the only determinant in common 5/9/2011 COSINUS19

Results Unlike for innovators, firm size, skills and strategic innovation are not significant 5/9/2011 COSINUS20

Results Unlike for innovators, lower competition, higher perceived use of public knowledge 5/9/2011 COSINUS21

‘I do not search, I find’ (P. Picasso) 5/9/2011 COSINUS22 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 5/9/ COSINUS

INSTITUTE OF INNOVATION AND KNOWLEDGE MANAGEMENT

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 5/9/ COSINUS

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…? 5/9/ COSINUS