1. 1 BMBF-OECD Berlin 050926 Evaluating Public-Private Partnerships: Competence Centres Erik Arnold Technopolis

2. 2 BMBF-OECD Berlin 050926 Competence centres are spreading

3. 3 BMBF-OECD Berlin 050926 They typically address weaknesses in innovation systems Source: Arnold and Kuhlmann, 2001

4. 4 BMBF-OECD Berlin 050926 Policy instruments have moved towards MAPs / systems Multiple Single MultipleSingle Development measures MAPs and network measures Activity promotion or subsidy measures Linkage or ‘bridging’ measures Measures Actors

5. 5 BMBF-OECD Berlin 050926 Tackling both market and systems failures Multiple Single MultipleSingle Intra-organisational learning, capability development and performance improvement System strengthening - Within actors - Between actors - Reducing bottlenecks Point or step change in organisational performance Inter-organisational learning, network development and strengthening Measures Actors

6. 6 BMBF-OECD Berlin 050926 Competence centres are systems- changing MAPs… Partnership of industry, university and a state agency, to affect university resource allocation and strategy, and reinforce university-industry links Long term arrangements, requiring much bigger commitment than traditional R&D project funding Create new on-campus structures making new structural demands on the universities Interdisciplinary, problem-focused, work demanding networking across university structures Close interaction with universities ’ ‘ core businesses ’ of education and research Intermingle academic and industrial research networks

7. 7 BMBF-OECD Berlin 050926 They have a key funding portfolio role Strategic Programmes, Institutes and Infrastructures Strategic Innovation Agency Response mode/ ‘free’ research Absorptive Capacity Thematic R&D areas Strategy and Foresight Competence Centres

8. 8 BMBF-OECD Berlin 050926 They work in both Edison’s and Pasteur’s Quadrants Quest for fundamental understanding Yes Pure basic research (Bohr) Use inspired basic research (Pasteur) Pure applied research (Edison) Yes No Considerations of use Not a place you’d want to be … Competence centre focus Increasing market failure

9. 9 BMBF-OECD Berlin 050926 High state funding permits more radical innovation Minimum capability required to participate Increasingly fundamental research Increasing Nelson-Arrow market failure Competence Centres Pre-competitive Collaborative Linked and Bilateral Support

10. 10 BMBF-OECD Berlin 050926 They don’t change the evaluation issues… Evaluation questions Are we doing the right thing? Are we doing it well? Does anything useful happen as a result? What should we do next? Input additionality Output additionality Learning (‘behavioural additionality’) Method problems Attribution of effects Timing of measurements Counterfactual situations Measuring dead weight and free riding

11. 11 BMBF-OECD Berlin 050926 How to measure their special characteristics… Network analyses Institutional analyses Longitudinal study Tackling the ‘project fallacy’: actors and constellations, not projects, are the interesting units of analysis

12. 12 BMBF-OECD Berlin 050926 Multiple valuation approaches are needed Knowledge - from Edison ’ s to Pasteur ’ s Quadrant People Knowledge Value Collectives Innovation Renewing the knowledge infrastructure and making it attractive Scientific and professional publications Qualifications, mobility, lifetime contributions Networks, clusters, communities Short-term economic value Sustainable institutions, viable industries, FDI

13. 13 BMBF-OECD Berlin 050926 Because the centres address many aspects of the NIS Systemic interventions Address ‘ Knowledge Value Collectives ’ Create network relations supportive to constant innovation Work in Mode 2 Tackle interdisciplinary growth points Produce especially relevant human resources Offer a mechanism to tackle industrial flight from more fundamental research Strengthen national and regional knowledge infrastructures in the face of R&D globalisation Bottom-up programme implementation points to places where academic and industrial capabilities can reinforce each other, and where those involved are committed to doing so

14. 14 BMBF-OECD Berlin 050926 Knowledge Value Collectives - eg SNAP 22.7 FTEs leverage a network with a minimum of 135 people Adding and absorbing Unilever Learning how to do inter- disciplinary work 1st reorganisation to improve inter- disciplinarity 2nd reorganisation (3 to 2 programmes, to move from simple to complex surfactant systems and focus on applications) Developed a theoretical model of surfactant interaction Common instrumentalities: ‘SNAP- test’ to determine likely applications domains of new surfactants 6 academic groups 8 companies Astra-Zenica now works with KTH Organic Chemistry and Biotech Two new groups formed at CTH Akzo-Nobel-Unilever: hetero-gemini surfactants Akzo-Nobel-USM- Kymmene: etholylation of sito-steroids

15. 15 BMBF-OECD Berlin 050926 “It’s the people, stupid!!”

16. 16 BMBF-OECD Berlin 050926 The centres affect location of R&D: Akzo-Nobel; ABB; Ford…

17. 17 BMBF-OECD Berlin 050926 They contribute to university modernisation Disciplinary coreCentres and interfaces External worlds

18. 18 BMBF-OECD Berlin 050926 Cautious about quantification, but big benefits are apparent PhD wage differential Next tranche of PhDs Benefits from accelerated usefulness of PhDs ISIS: ABB ILC of robots Polhem: Volvo Aero RR Trent CAP: EKA retention system SNAP: various Akzo-Nobel surfactants etc etc ………. FDI / Retention Benefits

19. 19 BMBF-OECD Berlin 050926 The Dutch exception  Four virtual institutes (polymers, metals, telematics, food)  Duration 4 + 4 + 2 => limited planning horizons  Funding 50:25:25  Varying degrees of internal market and a range of project/programme buy-in mechanisms  Clearly useful for industry; less clearly Changing Research Culture

20. 20 BMBF-OECD Berlin 050926 Policy implications … Long-run, long-lasting aspect of the centres Removing ‘spikes’ in centre launch and moving to ‘waves’ Competence centres as a way to do change management in the national research and innovation system Competence centres have a distinct place in the policy / instrument mix - they don’t fix all problems Market failure doesn’t go away Minimum capability required to participate Increasingly fundamental research Increasing Nelson-Arrow market failure Competence Centres Pre- competitive Collaborative Linked and Bilateral Support Capability Development