Universities as drivers of regional innovation INTERNATIONAL CONFERENCE ON MANAGING INTELLECTUAL PROPERTY IN UNIVERSITIES Boğaziçi University in cooperation with the Turkish Patent Institute Istanbul, April 14 to 15, 2011 Cerasela Tanasescu ESSEC Business School Romania Foundation

Universities as drivers of regional innovation ●Background ●Universities become stronger ●Universities play a social and economical role ●HERD’s positive effect ●Key data in Higher Education and R&D investment  Link Between BERD and Patents  BERD and Scoreboard ●Conclusions 10/10/2015- Universities as drivers of regional innovation Contents

Background We live in a global world with a global economy Never the feeling that we all belong to a settled geographical region hadn’t been so strong Regional strategies give big importance of building a knowledge-economy with:  Innovation and economic development approach  Industry as a key exploiter of this knowledge What about Universities role? 10/10/2015- Universities as drivers of regional innovation In a global world we all belong to a settled geographical region

The Universities become stronger The role of Universities in their region become stronger Form universities now we expect to: Be the providers of higher education in the region, Enable individuals and local firms to create future wealth. Be the players of an important social and cultural role Be important players in the local economy We expect from universities to be the coordinators of the development of the region 10/10/2015- Universities as drivers of regional innovation The universities play a wider social and economic role

Universities play a social and economic role Higher Education R&D (HERD) have a positive effect, linked to proximity, suggesting that universities have an important local role to play in raising the innovative capacity of local firms. A crucial issue is the complementarity complementarity between (HERD) and Business Expenditure on R&D (BERD)  potential crowding-out effects  the ability of local firms to absorb and benefit from HERD investments. “Complementarity” probably lies with private R&D. “Complementarity” is not guaranteed, nor is it automatic. Universities as knowledge generators become drivers of regional innovation 10/10/2015- Universities as drivers of regional innovation Universities are the coordinators of the development of the region

Higher Education R&D (HERD’s) positive effect Little in this literature which suggests what types of regions are more likely to capture the benefits of university R&D on innovation. Literature shows a real positive effect on the dynamic impact of HERD on productivity and growth, which may have (very) long time lags, but can be compromised by an excessive focus by universities on applied rather than basic R&D.. 10/10/2015- Universities as drivers of regional innovation Existing literature conclusions

HERD’s positive effect Availability of R&D personnel Emphasising the importance of considering the supply of scientific labour as a key element in the region’s capacity to benefit from HERD. The absorptive capacity of local firms Shows the gains for innovation and productivity from HERD. Business R&D expenditure (BERD) Is a good proxy measure for absorptive capacity suggesting the potential importance of the balance between HERD and BERD expenditure. 10/10/2015- Universities as drivers of regional innovation Key points indicators and measures

Key Data in Higher Education and R&D investiment 10/10/2015- Universities as drivers of regional innovation BERD and Patents - France Sursa :ERAWATCH Total EPO Value Total EPO /mil hab.120,4118,8119,2126,6133,4130,7130,9132, Total USPTO Value Total USPTO / mil hab.71,464,255,145,937,6 Patente EPO Sursa :ERAWATCH Patente USPTO Sursa :ERAWATCH Source ERAWATCH

Key Data in Higher Education and R&D investiment 10/10/2015- Universities as drivers of regional innovation BERD and Patent - Turkey Sursa :ERAWATCH Total EPO Value Total EPO /mil hab Total USPTO Value Total USPTO/ mil hab---- Patente EPO Sursa :ERAWATCH Patente USPTO Sursa :ERAWATCH Source ERAWATCH

Key Data in Higher Education and R&D investiment 10/10/2015- Universities as drivers of regional innovation BERD and Scoreboard Sursa :ERAWATCH Patente EPO Sursa :ERAWATCH Patente USPTO Sursa :ERAWATCH Source ERAWATCH BERD R&D Investment refers to all R&D performed by businesses regardless of the sources of funding. Hence, BERD includes R&D performed by a company but financed by other businesses or the ‘government’, ‘higher education’, ‘private non- profit’ and ‘abroad’ sectors. Scoreboard Industrial R&D Investment, measure all R&D financed by a particular company, regardless of where that R&D is performed. Where possible, excludes R&D financed by governments or other companies, and also excludes the companies’ share of any associated company or joint venture R&D investment.

Key Data in Higher Education and R&D investiment 10/10/2015- Universities as drivers of regional innovation BERD and Scoreboard Sursa :ERAWATCH Patente EPO Sursa :ERAWATCH Patente USPTO Sursa :ERAWATCH Source ERAWATCH BERD/ Industrial R&D Investment BERD funded by Non business enterprises and non- Scoreboard companies Industrial R&D Investment performed by non business enterprises and non- Scoreboard companies BERD SCOREBOARD

Key Data in Higher Education and R&D investiment 10/10/2015- Universities as drivers of regional innovation BERD and Scoreboard Sursa :ERAWATCH Patente EPO Sursa :ERAWATCH Patente USPTO Sursa :ERAWATCH Source ERAWATCH CountryBERD 2004 (Millions of euro) Scoreboard 2004 (Millions of euro)Scoreboard as a percentage of BERD Austria % Belgium % Cyprus1000% Czech Republic701152% Denmark % Estonia3200% Finland % France % Germany % Greece % Hungary % Ireland % Italy % Latvia2100% Lithuania2900% Luxembourg % Malta1900% Netherlands % Poland327227% Portugal384113% Slovakia8600% Slovenia % Spain % UK % EU25 (exc. Sweden) %

Conclusion Increasing HERD in isolation is unlikely to generate significant regional benefits Joined-up and consistent approach with HERD investments matched by initiatives to increase BERD and so develop absorptive capacity among local firms. 10/10/2015- Universities as drivers of regional innovation HERD’s positive effect

Conclusion It is possible for the universities universities to make a significant contribution to future regional economic development by developing and stimulating knowledge transfer and IP management practices with a commitment by the universities to align their knowledge transfer strategies with public sector policy and the underlying economic landscape. There is a danger in the public sector encouraging HERD to be more applied and experimental, regarding the research capability of local firms. More appropriate may be the development of a differentiated strategy whereby basic research is supported by effective technology transfer organisations organisations. Determining appropriate levels of HERD in the knowledge generation process and subsequently the capability to exploit this knowledge through technology transfer. 10/10/2015- Universities as drivers of regional innovation Universities are going to become even more important drivers of regional competitiveness

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