Science Technology Links Aldo Geuna Department of economics University of Torino

Structure of the Lecture Transfer / Pasteur Quadrant Sciences University-industry relationships: Historical background. Governance systems

Share HERD financed by Business 3

Transfer/ Pasteur Quadrant sciences

Transfer Sciences ‘Transfer sciences’ are those where – researchers able to develop research programme around economic concerns without compromising their reputation – industrial researchers able to contribute to disciplinary goals without compromising their job (secrecy) – See also Donald E. Stokes Pasteur Quadrant ( ‘Life cycle’ of a technology/science may influence way in which the goals are perceived by U researchers and thus the implications for professional reputation of those who work towards externally set goals

Donald E. Stokes Pasteur Quadrant Considerations of use?  Quest for fundamental understanding?  Source: Donald E. Stokes, Pasteur’s Quadrant, p. 73 Pure basic research Use-inspired basic research Pure applied research

Donald E. Stokes Pasteur Quadrant Considerations of use?  Quest for fundamental understanding?  Source: Donald E. Stokes, Pasteur’s Quadrant, p. 73 Niels Bohr Louis Pasteur Thomas Edison

Nano, bio, info sciences What do they have in common? – Cognitively the science generated is not clearly distinguishable from the technology related to it – Function like conventional disciplines/specialisms – have own resources and evaluation criteria, and capacity to provide for reputation and career – By virtue of membership of non-academic producers, users and regulators, they provide social structures within which technological innovations are developed

University-industry relationships: Historical background

Historical Trends < 1945 – See the development of the chemical industry in Germany (for example G. M. Thurow, 1982 or The British Journal for the History of Science, Vol. 25, No. 1, Organic Chemistry and High Technology, , Mar., 1992 ); – Land grant colleges or MIT in the US

Historical trends 1945/ s – industry relied on universities mainly for supply of QSEs (e.g. for own R&D labs) – exercised some influence on curricula in e.g. engineering, chemistry; – knowledge often flowed first through public sector labs before taken up by industrial labs; – Industrial funding continue to play a role, see the interaction between big private labs -e.g. Bell Labs- and university professors, but shadowed by large increase in public funding (Sputnik / Cold War);

Historical trends 1945/ s – industrial support for universities often took form of endowments and gifts (rather than specific project contracts) i.e. no ‘strings’ attached; – responsibility of university was to publish results of research so that available to all;

Historical trends (continued) 1980s onwards – various changes driven by See discussion yesterday on transformation of the university system in different periods in the various countries; Increase in univ-ind relationships with its institutionalization.

Historical trends (continued) US – NSF established University-Industry Cooperative Research Centers (UICRCs) e.g. Center for Integrated Systems (Stanford) – Required changes to regulations on cartels to allow establishment of industrial consortia – NSF subsequently launched Engineering Research Centers, and Science and Technology Centers – Later, individual firms signed multi-M$ partnership deals with academic departments (e.g. Monsanto & Washington U, Hoechst and Harvard Med School)  concerns re (foreign) firms ‘buying up’ U departments

Historical trends (continued) UK – establishment of Alvey Programme in early ’80s to foster collaboration between I and U in IT – followed by variety of other schemes to foster U-I collaboration Other OECD countries. Industry still only accounts for around 6% of university research funding (in most countries)

16 % of HERD financed by industry

Research Income 17

Governance systems

University-Industry Relationships Publications Patents Contracts Corporate teaching Secondment Services …… …..

Governance systems There are two different governance systems of the interactions between academic and industrial scientists (Geuna and Muscio, 2009) 1. those that take place via direct contacts between the academic scientists and the company: personal contractual collaborations 2. those mediated by universities for example through their technology transfer offices or knowledge transfer organisations: institutional collaborations

Governance of KT Models of governance of KN: 1. The traditional “personal contractual collaborations” model: Individual scientist; Company R&D lab; Advisers / problem solvers informal (though paid) trust related relationships; Secondment to large labs (see the Bell Labs history); High level of professor independence; Budgetary expansion.

Governance Systems: Personal contractual collaborations Not just informal interactions, as the literature often assumes, but usually formalized through contracts and agreements – they result from participation in the same networks on the part of academic and industry researchers and engineers – based on some form of trust, sometimes also due to sharing of the same educational background (e.g. alumni associations) – The more traditional form of univ-ind collaboration of historical origins

Governance Systems: Personal contractual collaborations Most often subsumed under consultancy and always assumed to be “soft”. BUT not only applied work also original research not soft consultancy;

Governance of KT 2. Institutionalisation of KT: – Creation (or development were they existed previously as liaison offices) of Knowledge Transfer Organisations (KTOs) within the uni responsible for the management of KT activities; – Downsizing of company labs and small companies R&D; – Service and research contracts; – New roles for the uni (economic development); – Professors considered more as employees; – Budgetary constrains.