Technology Transfer to the Private Sector: A Field Study of Manufacturer Buying behavior

Public sector R&D is an important source of new product technologies and concepts. If the transfer of these technologies to private sector manufacturers is viewed from a marketing perspective, manufacturing organizations can be analyzed as industrial "buyers." David Large and Donald Barclay report on case-based research that explores this technology buying process. Findings are induced that suggest: user value, patent/proprietary position, prototype efficacy, and strategic fit are the most important attributes of the transfer proposal; and business empathy and credibility are the most important attributes of the transfer agent. The R&D director is identified as a key influencer in the transfer decision and represented by a model of the director's attitude toward technology transfer proposals. The authors develop implications for public sector managers/agents and suggest opportunities for further research.     

The role of taxes in corporate research and development spending

This study replicates prior research regarding research and development (R&D) spending by sampling R&D spending for a cross‐section of firms in non‐service related industries. Compustat data for 231 firms from 1992 to 1998 are used to test whether the US Federal tax credit for R&D meaningfully influenced R&D spending of the sampled firms. Firms' (1) effective rate of R&D tax credit, (2) rate of decay in R&D capital for firms' primary industry affiliation, (3) financial cost of capital, and (4) marginal tax rate are used to compute firms' user‐cost of capital for in‐house R&D. Results show that firms that were eligible for the tax credit spent more on R&D than non‐eligible firms as the user‐cost of in‐house R&D increased. These results add further evidence regarding the role of the tax credit in stimulating R&D activity and suggest that a tax credit for incremental research can be used to boost private‐sector R&D spending.     

The use of options theory to value research in the service sector

This paper examines the practicalities of applying real options theory to valuing research in the service sector, where the relationship between research and subsequent business benefit is less easily discerned than in most previous applications of options theory in, e.g. the pharmaceutical industry. The paper uses a compound options model, the Geske model, based on a three‐phase lifecycle consisting of research, development and deployment. This model was applied in a case study within the e‐commerce area to extract key messages for R&D managers relating to different value drivers. However, the case study emphasized the need to understand the relationship between the research activity and the subsequent revenue stream, and to be able to demonstrate the extent to which the former is necessary for the latter.     

Commercial exploitation of new technologies arising from university research: start-ups and markets for technology

The creation of start-up firms is an important method of commercializing new technologies arising from R&D at universities and other research institutions. Most research into start-ups presumes that these firms develop products or services. However, start-ups may operate through markets for technology by selling or licensing rights to use their technology to other firms – typically established firms – who develop and sell new products or services based on the technology. In this study of 57 public start-up firms created to commercialize the results of university research, we find evidence that (1) operating through markets for technology is a common approach to commercialization, (2) start-ups that operate in markets for technology can be effectively distinguished in practice from start-ups operating through product markets, and (3) there are substantive differences in the business activities of firms depending on whether they operate through product markets or markets for technology.     

R&D management responses to the environment: current theory and implications to practice and research

The environmental problems faced by society are often regarded as global in importance. The global imperatives linked to environmental concerns pose critical questions about the international management of R&D. This theme is developed in this paper which was initially written as the basis for a workshop on R&D management responses to the environmental challenge held as part of the 1992 Conference on Managing R&D Internationally at Manchester Business School.
The paper considers recent literature on R&D management responses to the environmental challenge drawn primarily from English language sources out extending beyond traditional R&D management literature. The intention was to identify current theories about R&D management and the general business context for R&D and to consider the implications of environmental concerns for R&D management practice.
The paper suggests that R&D management and the environment is still at a relatively early stage of development. Nevertheless, there is a demonstrable gap between the approaches to environmental problems adopted by R&D practitioners and those chosen by R&D theoreticians. This mirrors a more general gap between theory and practice seen in the basic R&D management literature.
In general, R&D management and the environment has been constructed in the literature as a set of tools and techniques, rather than a strategic management issue. However, there is a developing body of literature which links R&D management and environmental management in a more strategic way and focuses on the need to consider organizational as well as technological change.
The paper concludes that an important way forward for research in this area is to establish an R&D Management and Environment Focus Group to bridge the gap between theory and practice and to explore the application of environmental concepts to R&D management.     

R&D management through network mapping: using the Internet to identify strategic network actors in cooperative research networks

Most R&D management techniques to date have emphasized the immediate organizational context or the internal structure and process of the R&D project. Recently however attempts have been made at situating R&D management in a wider context of inter‐organizational R&D activities. This paper presents the technique of R&D network mapping as a means of providing strategic intelligence to the R&D manager. The paper backgrounds this technique with a discussion of the general issue and significance of R&D networks. A methodology for R&D network mapping is then exemplified by outlining how a network database of cooperating projects and institutes in the telecom research sector was built by utilizing the World Wide Web. Finally a number of suggestions are made as to how and when network mapping should be applied in strategic R&D management.     

Synthesizing R&D planning and business strategy: some preliminary findings

The need for firms to compete in the longer run by offering superior products at competitive prices requires better integration of R&D, and technology in general, into business strategy development. A survey based on personal interviews of 40 respondents from "Fortune 500" U. S. industrial firms reveals that their shift in emphasis toward new product/process R&D is providing the impetus for placing R&D in a strategic context. However, R&D has not been fully integrated into the strategic planning process of many organizations. The results of the survey reveal that certain communication channels can be more fully utilized to meld R&D planning into business strategy. Specific suggestions to facilitate information exchange, dissemination of planning data, and integration of various R&D plans into a cohesive technology strategy are given.     

Synthesizing R&D planning and business strategy: some preliminary findings

The need for firms to compete in the longer run by offering superior products at competitive prices requires better integration of R&D, and technology in general, into business strategy development. A survey based on personal interviews of 40 respondents from “Fortune 500” U. S. industrial firms reveals that their shift in emphasis toward new product/process R&D is providing the impetus for placing R&D in a strategic context. However, R&D has not been fully integrated into the strategic planning process of many organizations. The results of the survey reveal that certain communication channels can be more fully utilized to meld R&D planning into business strategy. Specific suggestions to facilitate information exchange, dissemination of planning data, and integration of various R&D plans into a cohesive technology strategy are given.     

Knowledge management capabilities in R&D: a UK‐‐Japan company comparison

This paper uses a 'knowledge‐based' approach to compare the management of R&D in two leading chemicals companies, one British (ICI plc) and one Japanese. It describes key differences in the ways they integrate the 'near‐market' knowledge of business units and the scientific knowledge and technical expertise of R&D personnel in central R&D facilities. It shows that the same management practices that underpin superior 'integrative capabilities' in the Japanese firm, including central funding of R&D, job‐rotation and career structures and multidisciplinary project teams, also result in significant R&D weaknesses. The comparison demonstrates that different organisational mechanisms are needed to support (1) the development and (2) the leveraging of specialist knowledge within different innovation contexts . Firms must be able to strike a balance between integrative and specialist capabilities to get the most from their R&D. Moreover, the above characteristics which underpin these capabilities are often 'embedded' in the broader organisation making them difficult to emulate when they represent 'best‐practice' but also making them difficult to change in response to new threats and opportunities.     

Government support of clean technology research in West Germany: some evidence

The authors have set out to review the procedures used in the allocation of public money by the Federal German government for research into 'clean' technologies. Public sponsorship of this kind of research is necessary as industrial firms rarely see enough return for their R&D investment to warrant their carrying it out. The authors have surveyed the methods used by the government funding agency (BMFT) to identify projects and to allocate money to them. 82 projects were included in the survey in the fields of low-emission processes.
Projects were segmented in five ways: Status of the receiver; Type of technology; R&D stage (from basic through demonstration plant); Cooperative versus non-cooperative, Environmental medium. Their broad conclusions are that (a) most of the funds went to projects for the development of 'end-of-the-pipe-cum-recycling' technologies and integrated technologies, (b) where there was cooperation between a firm and a university the R&D concentrated on studying basic principles, and (c) success depends on the existence of a clear strategy for the research as a whole rather than on ad hoc monitoring against a narrowly conceived plan. The authors also summarise the problems met in ensuring that money allocated in this way is effectively used.     

New paradigms for the future: keynote perspectives from The R&D Management Conference 2008

The R&D Management Conference 2008 theme of ‘emerging and new approaches to R&D management’ sought to draw out how R&D‐based organizations today are changing the way they manage (in terms of novel approaches, techniques, models and tools) in face of the challenges and opportunities presented in the current environment. Six keynote presentations by executives, representing both the public and private sectors, elaborated on the following subjects reflecting their experiences on the theme: hyperconnectivity and changing R&D tenets, accelerating discoveries in human health via open access public‐private partnerships, role of government in bridging the innovation gap, building sustainability and innovation in a traditional resource sector, R&D management in the aerospace sector, and leveraging diversity to build a culture of innovation. Their presentations highlighted amongst other things – global trends that are affecting how R&D organizations are operating, economic imperatives driving change in business models, working through partnerships within an open innovation environment, and leveraging the diversity presented by an increasingly globalized R&D workforce for success. Within these presentations are also challenges to researchers to generate new thinking to address current and future problems presented by the R&D environment. The keynote perspectives are summarized in this paper.     

Liberalization and the growth of business‐led R&D: the case of India

Firms and organizations in India have responded to market reforms, liberalization and globalization by improving efficiency, importing technology and by increasing in‐house R&D. This paper highlights some of the evolutionary changes that have occurred since India undertook sweeping reforms in July 1991 to open its economy to foreign participation and competition. Although some authors, such as Forbes (1999), have looked at the impact of the liberalization on India's R&D and innovation, they missed a number of dimensions that have far‐reaching implications for the process of technological capability development in India. Using the concept of technological capability, this paper makes a contribution to the discourse on the changing R&D and innovation scenario in the face of on‐going liberalization in India. It concludes with three case studies, which illustrate some of the recent changes made by industrial organisations.     

R&D as a business – what are the implications for performance measurement?

There have been considerable changes in the way that Research and Development (R&D) has been managed over recent years, many of which have been influenced by the external environment. These have been discussed in a number of publications with much of the debate centring around the movement from the so‐called first generation to fifth generation models of R&D management.
What has not been debated to the same extent are the implications of recent and likely future trends in R&D management for the way performance is, and should be, measured. In this paper we focus on these implications, drawing upon both the existing literature on performance measurement (PM) in R&D and our own research into organisations which have chosen to move towards a more profit‐centred approach to the management of their technical resources.
Finally, we present and discuss the findings of our review, which indicate that although there are common features, some differences, requiring careful consideration by management, can be identified when movement from a cost‐ to a profit‐centred approach occurs.     

Schumpeterian economics: some observations on the relevance of his theoretical contributions to the management of industrial research and development

This paper investigates the relevance of the theoretical writings of Schumpeter to the management of research and development (R&D) in small and large industrial firms. Schumpeter's emphasis in his early work on three main aspects of industrial R&D; namely the importance of entrepreneurship, industrial innovation and resultant creative destruction, were major new insights that rejected the long‐standing view that equilibrium was the best state for any industrial economy. This paper, with the aid of relevant literature from both Schumpeter and others, seeks to relate his theoretical approach (that changed over time to favour large firm R&D) to the implication for industrial R&D, and in particular, the relationship between R&D in small and large firms. The paper concludes that if Schumpeter had lived to see the current industrial landscape, he might have returned to his early belief that entrepreneurial new small firms remain key harbingers of technological progress.     

The regional dimension of innovation and the globalization of science: the case of biotechnology in a peripheral region of the European Union

This article presents the results of an analysis of the relationship between public sector research and industry development in the field of biotechnology in a peripheral region of the European Union: the Region of Valencia (Spain). It contributes empirical data on the delocalized impact of research-industry relations in a globalized economy. It also uncovers a gap between a relatively well-developed public research sector in biotechnology and a weak biotechnology industry. The analysis raises questions as to the role of the concept of predominantly local knowledge communities in regional innovation systems, as well as the model of linear technological development, both of which exert an important influence on decision making in research and development (R&D) and innovation. A high level of R&D is shown to be a necessary condition for stimulating innovation, but does not suffice. Rather, R&D must be integrated with a number of different actions to correct deficiencies in the regional innovation system.     

The effect of inducement prizes on innovation: evidence from the Ansari X Prize and the Northrop Grumman Lunar Lander Challenge

Inducement prizes are increasingly popular because of their potential to induce technological innovations and attain related goals. Academic research, however, has barely investigated these prizes. This paper investigates the motivation of prize entrants, the characteristics of their research and development (R&D) activities, and the overall effect of prizes on innovation using case study research and documentary data sources. The Ansari X Prize and the Northrop Grumman Lunar Lander Challenge, both considered successful technology competitions in the aerospace sector, are investigated. The findings show that, first, incentives created by competitions, particularly those that are nonmonetary, attract unconventional entrants. The market value of the prize technologies motivate entrants as well but do not attract traditional industry players. Second, limited technology development lead times and no up‐front funding characterize prize R&D activities, yet their differences with traditional industry practices are caused by participant‐level factors. Most importantly, the introduction of novel R&D approaches is associated with the participation of unconventional entrants. Third, these prizes induced innovations over and above what would have occurred anyway, with the caveat that they were linked to significant technology incentives and fundamentally, ongoing R&D processes. These findings put forward lessons that inform the design of more effective prize competitions.     

The organizational impact on R&D: Computer aids for the disabled

R&D often reflects social concerns which are represented in the organization and implementation of scientific inquiry. An analysis of R&D projects for the disabled provides a glimpse into the link between such social concerns and its consequent organizational basis.
A content analysis of 89 R&D computer-related projects between 1979 and 1983, focussing on R&D, interest areas, funding sources, research emphasis, institutional setting and prototype production, illustrates the organizational influence involved in this type of specialized R&D.
Specifically, a model is created, arguing that public funding mechanisms influence the type and direction that research takes, while factors in the form of institutional division of resources and specialization, lead to specific research concentrations. These findings add support to the argument that the organization of R&D of computer aids is influenced by societal priorities which, through a series of constraints, affects its output.     

Stimulating 'hot technologies': interorganizational networks in Dutch ceramic research

The role of interorganizational R&D networks between firms and universities in knowledge transfer of advanced technologies is analyzed. The starting assumption (coinciding with reasons of government bodies to support technological cooperation) is that a national knowledge and technology system exists. From this assumption a number of questions that exist about knowledge and technology transfer can be discussed. Notably whether the knowledge push model of technological innovation is valid. This is done through the analysis of the differences in the pattern of external contacts that exists between the scientific, industrial and policy organizations.
Empirical results of a case study of the stimulation of advanced ceramic technology by the Dutch government form the basis. Advanced ceramics is considered to be an emergent technology within the larger framework of generic technologies. However, the Dutch university and industry structure in this area is weak which raises a number of important questions about the possibility to built a technological infrastructure through government support. The paper concentrates on the role of resource and information flows, which characterize the position of specific organizations in the R&D network. The three main positions in this case are occupied by government bodies, various firms and the university and government laboratories.
Two conclusions on knowledge transfer in university-industry cooperation may be drawn. (a) Institutional (government and university) and industrial research networks are different in character and in fact they consist of different network elements. (b) Government policies, in this case, affect the outlook of scientists but not of firms.