Research on R&D Networks and Governance for Innovation Renata Seldin, M.Sc. Universidade Federal do Rio de Janeiro - BRAZIL

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL Introduction Objectives: Understand how the many network characteristics described in the literature can be combined resulting in different organisational forms, and hence governance structures. Construct a framework to be used in the planning of new R&D networks, minimising the period of trial and error that normally precedes the success of the collaboration. Observation: this is still a work in progress.

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL R&D Organisation Research Policy Special Issue (1991)

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL Why collaborating? Arranz & Arroyabe (2002) list some of the reasons for the organisations to collaborate: Transaction costs reduction due to increasing uncertainty of the economic market; Strive for efficiency in spin-off activities; Usage of assets not available within the organization but useful and complementary to its activities. Tidd, Bessant & Pavitt (2005) add the following reasons: Reduction of technological development cost; Reduction of development risk; Economy of scale; Shorter time-to-market; Promotion of shared learning. On the other hand: Complexity of any form of cooperation or collaboration agreements. multiple interactions conflicts of interest intangibility of generated knowledge

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL Governance Minimise conflict and improve cooperation: Formalisation of behaviour Structure reinforcement Activities coordination Foster trust. Governance structures: Infusion of order in a relationship where there’s space for misunderstandings, conflicts of interest and opportunistic behaviour.

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL Governance elements Theory/ Approach CharacteristicsItems to be observedAddresses Network theory Network characteristics  Size  Objectives  Duration Reasons for collaboration Transaction costs Structure  R&D Planning criteria  Decision making  Distribution of tasks Exchanges conditions like uncertainty, asset specificity and appropriability. Safeguard mechanisms  Partner selection  Responsibilities  R&D network monitoring and control Social capital Cohesion  Density of contacts  Intensity of contacts Circulation of information and the strength of the ties Openness  Frequency  External sources of information

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL R&D practices in Brazil Most recent data: PINTEC 2003 (released in 2005) Only 33.3% of all 83,400 researched firms present some kind of innovation, (implementation of a new/ improved technological process or development of technological projects). Main information sources for knowledge acquisition used by Brazilian firms are their own internal areas (62.7%), Meaning little cooperation between firms on the same industry, little contact with universities and weaker R&D departments. Number of firms involved in cooperative practices dropped from 2,500 in the year 2000 to 1,000 in Data contradicts the international R&D cooperation tendency!

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL R&D Networks Iniciatives PADCT III / 2 nd phase ( onward) Aimed at encouraging collaborative research. Contribute to the creation of an environment that fosters cooperation between the private sector and government Qualification of human capital in order to address both academy and industry’s needs, Better applying scientific technological knowledge to help national development RECOPE (late 90’s ) Development of engineering in Brazil Built cooperative networks that would research important themes to the competitiveness of Brazilian products and services and regional development. 7 thematic networks with 164 research groups and 82 private companies, not to mention another 30 specific (regional) networks. Unsatisfying Results/ No data about remaining networks Positive results: Stimulation of cooperation between researchers from different organisations and some private companies. Negative results: Delays on funding releases made it impossible for some participants to attend network meetings. Network members facing monetary issues remained stalled instead of looking for financing on their own. High dependency on the government Networks did not attract as many companies/ clients as expected No Results Yet

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL So, the situation in Brazil is... Data from PINTEC 2003 shows: Low investments in R&D Focus on internal R&D Little cooperation Data from government funded network iniciatives shows: Poor data Difficulty in attracting members to networks Monetary dependency Diverge from PINTEC data Not enough information to make any conclusions. Not enough information to make any conclusions. Needs deeper study... Needs deeper study... A questionnaire is being prepared to address some issues on Brazilian networks A questionnaire is being prepared to address some issues on Brazilian networks

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL The research Questionnaire application Joint R&D projects carried out between UFRJ and private companies; Networks formed through RECOPE programme; Most innovative firms in Brazil recognised with the innovation award from FINEP. Questionnaires Governance elements Literature Review Issues in Brazil Conceitual Framework 5 Test in Brazilian Company 6

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL Current stage How many actors are involved in the project? 2 (dyadic) What kinds of organisations are involved in the project? Universities Government institutions Research institutions Private companies Consultants Other What are the activities carried out during the project? Product/ process development Technology development Applied research Pre-commercial research Basic Research Technical consultation Training Other What are the objectives of the cooperation? Improving research lab capacity Funding Access to technology/ information/ patents Credibility/ Researchers satisfaction Access to new facilities/ tools and special materials saving money when developing a process/ product Cost reduction Obtaining new product/ service Developing new manufacturing process Other Why collaborate in this project? Answer to client’s needs Answer to the market Answer to technological changes Answer to competitors Decision of a higher executive Decrease of R&D risks R&D cost reduction Access to scarce resources (HR, high technology etc) Better/ bigger mix of products/ services Decrease time to market Pursuit of innovation Other Questionnaires 3

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL How was the project planned? According to participant’s expertise Equal distribution amongst participants Ad hoc decisions Other When unplanned events occurred, who was in charge of making decisions? Project coordinator All participants together Ad hoc decisions Other How were the tasks organised? Each participant works alone on its own activities All activities are carried out by the whole team Other What kinds of relation exists within the network? Informative relations Use of technological sources Financial relations Administrative relations Shared scientific researchers Which criteria were used to select the participants of the project? Previous work Scientific/ technological qualification Indication/ referral Other Which criteria were used to define responsibilities during the project? Assessment of possible contribution from each partner Allocation of profits Previous experience Other How was the project monitored? Periodical reports Informal communication Ad hoc meetings Scheduled meetings Only the coordinator monitors the project Other Why was the project monitored? To avoid knowledge leakage To reduce coordination costs To allow equal distribution of knowledge Other Current stage Questionnaires 3

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL How are the results measured? Number of new products developed Number of patents/ licenses Scientific publications Research data base Training Participation in scientific meetings Other Which negative aspects were observed during the project? Information leakage Lost control of research Divergent research goals Conflicts due to cultural differences Other How would you rate the existing trust among participants? Very Trustworthy (all participants) Trustworthy (some participants) Trust non-existent Other About opportunistic behaviour it is correct to affirm that: There was no concern about opportunistic behaviour and they were not observed. There was some concern about opportunistic behaviour but they were not observed Opportunistic behaviour was observed. Other How frequent was contact amongst participants? Daily Weekly Monthly Every 3 months Other Which were the main information sources for the project? Clients Suppliers Competitors Research centres Universities Consultants Academic meetings and publications Associations and professional advisors Others Which mechanisms were used to retain knowledge generated by the project? Knowledge data base Training Thoroughly documentation Other None Current stage Questionnaires 3

Renata Seldin, M.Sc. – Universidade Federal do Rio de Janeiro - BRAZIL THANK YOU!