University Commercialization Strategies in the Development of Regional Bioclusters*

To analyze university contribution to economic development, the present study examines universities' technology transfer policies and their associated economic development impact. The article examines how a university defines itself as part of a region as well as what activities, if any, do university commercialization strategies in context of their regional environment affect spin‐off activity. Furthermore, this study explores the ways universities contribute to regional economic development by examining existing theories and analyzing universities' relationships with both government and industry in two regions. This study draws from Roberts and Malone's (1996) selectivity–support typology and highlights this article's argument by comparing the commercialization strategies of world‐class universities strategies in the development of regional biotechnology clusters in Massachusetts and in Connecticut. This article investigates the notion of whether universities can differently influence the economic development processes of the while still having successful commercial outcomes. These findings build on previous research ( Clarysse et al., 2005; Degroof and Roberts, 2004; Powers and McDougall, 2005 ), which argues that low support–low selectivity policies may be more suitable to entrepreneurially developed environments, whereas high support–high selectivity policies are more efficient in entrepreneurially underdeveloped environments. Masachusetts Institute of Technology (MIT) is located in a strong technopole region, whereby many of its support structures for spin‐off formation are provided by the regional infrastructure of the Cambridge–Boston region. In contrast, Yale University, which has an underdeveloped entrepreneurial context, has had to take a more proactive role in providing incubation capabilities to their spin‐off projects. This finding supports a contingent based perspective of academic entrepreneurship, whereby low support–low selectivity policies are more fitted to entrepreneurially developed environments, whereas high support–high selectivity policies are more efficient in entrepreneurially underdeveloped environments.     

Research laboratory architecture and the structuring of communications

This paper brings together results of a number of studies of communication in R & D organizations. These studies show very clearly the way in which communication is influenced by the physical, architectural arrangement of the laboratory. Communication between individuals is very sensitive to both the horizontal and vertical distances separating them. The point at which it becomes desirable to add floors to a building was derived as a function of required floor area. Finally, a partially successful experiment is reported in which an attempt was made to improve communication in an organization through architectural change. The results presented here should form the basis for further experimentation in this same manner. The possibilities are almost limitless. It only remains for some good imagination to be applied to the problem.     

The T-Group: Short cut or short circuit?

T-group or sensitivity training has become popular in recent years. A T -group includes eight to twelve people and a qualified leader; its purpose can be to provide therapy or to promote personal improvement or organization development. Beset by organizational problems, some top executives have instituted T-groups, thinking they may be a panacea. In some cases this approach has improved morale and even increased productivity. In other cases the hierarchical structure of the company has been damaged, economic gain has been condemned, and profits have been affected. T-groups can have a useful role if top management rationally decides the proper ends and means for this powerful tool.     

WORLDOUTLOOK

German monetary unification is expected to result in a major expansion in autonomous demand from East Germany. In economic terms this is equivalent to a fiscal shock to West Germany broadly similar to that experienced in the US in the early years of Mr. Reagan's Presidency. Led by the Bundes bank, the monetary authorities' response is again likely to be a tightening of policy, leading to several years of high real interest rates. Overall, the combined monetary-fiscal shock should strengthen growth with only moderate increases in inflation. Germany is expected to grow very rapidly in the -per cent range for several years, with only a slight upturn in inflation. Japan, after a pause over the next year, should be able to return to its under lying growth path fairly quickly. However the US situation is more precarious. FUN adjustment from the previous Reagan shock has not yet taken place, leaving the US vulnerably dependent on increasingly scarce imported capital. In the absence of a significant *peace dividend: the result is the necessity of continued tight policy and sluggish growth in the American economy. US growth stays around 2 per cent, but this allows a substantial reduction in the current account deficit.     

Entrepreneurship, Innovation and Industrial Development: Geography and the Creative Field Revisited

Creative destruction is a central element of the competitive dynamic of capitalism. This phenomenon assumes concrete form in relation to specific geographical and historical conditions. One such set of conditions is investigated here under the rubric of the creative field, i.e. the locationally-differentiated web of production activities and associated social relationships that shapes patterns of entrepreneurship and innovation in the new economy. The creative field operates at many different levels of scale, but I argue that the urban and regional scale is of special interest and significance. Accordingly, I go on to describe how the creative field functions as a site of (a) entrepreneurial behavior and new firm formation, (b) technical and organizational change, and (c) the symbolic elaboration and re-elaboration of cultural products. All of these activities are deeply structured by relations of spatial-cum-organizational proximity and separation in the system of production. The creative field, however, is far from being a fully self-organizing entity, and it is susceptible to various kinds of breakdowns and distortions. Several policy issues raised by these problems are examined. The paper ends by addressing the question as to whether industrial agglomeration is an effect of producers’ search for creative synergies, or whether such synergies are themselves simply a contingent outcome of agglomeration.     

Trends in Financial Innovation and their Welfare Impact: an Overview

There is evidence that financial innovations are sometimes undertaken to create complexity and exploit the purchaser. Thus financial innovation does have a dark side. As far as the financial crisis is concerned, securitisation and subprime mortgages may have exacerbated the problem. However, financial crises have occurred in a very wide range of circumstances, where these and other innovations were not important. There is evidence that financial liberalisation has been more of a problem. There are many financial innovations that have had a significant positive effect including venture capital and leveraged buyouts and innovations to fund environmental and health improvements.     

Trade Facilitation and Export Diversification

This paper shows that improved trade facilitation can help promote export diversification in developing countries. We find that 10 per cent reductions in the costs of international transport and domestic exporting costs (documentation, inland transport, port and customs charges) are associated with export diversification gains of 4 and 3 per cent, respectively, in a sample of 118 developing countries. Customs costs play a particularly important role in these results. Lower market entry costs can also promote diversification, but the effect is weaker (1 per cent). We also find evidence that trade facilitation has stronger effects on diversification in poorer countries. Our results are highly robust to estimation using alternative dependent and independent variables, different country samples, and alternative econometric techniques. We link these findings to recent advances in trade theory that emphasise firm heterogeneity, and trade growth at the extensive margin.     

Very fast money: High-frequency trading on the NASDAQ

This paper provides evidence regarding high-frequency trader (HFT) trading performance, trading costs, and effects on market efficiency using a sample of NASDAQ trades and quotes that directly identifies HFT participation. I find that HFTs engage in successful intra-day market timing, spreads are wider when HFTs provide liquidity and tighter when HFTs take liquidity, and prices incorporate information from order flow and market-wide returns more efficiently on days when HFT participation is high.