ASSESSING THE RELATIVE PERFORMANCE OF UNIVERSITY TECHNOLOGY TRANSFER IN THE US AND UK: A STOCHASTIC DISTANCE FUNCTION APPROACH

University technology transfer offices (henceforth, TTOs) play a critical role in the diffusion of innovation and the development of new technology infrastructure. Studies of the relative efficiency of TTOs have been based on licensing output measures and data from a single country. In contrast, we present the first cross-country comparison of the relative performance of TTOs, based on stochastic multiple output distance functions. The additional dimension of output considered is the university's propensity to generate start-up companies, based on technologies developed at these institutions. We find that US universities are more efficient than UK universities and that the production process is characterized by either decreasing or constant returns to scale. Universities with a medical school and an incubator are closer to the frontier.     

Policies Promoting Innovation in Small Firms: Evidence from the U.S. and U.K.

We provide background information on U.S. and U.K. policies promoting innovation in small firms and also summarize the papers that appear in this special issue. These studies were presented at a recent workshop that was jointly organized by the University of Nottingham Institute for Enterprise and Innovation (UNIEI) and the Board on Science, Technology, and Economic Policy (STEP) of the U.S. National Academy of Sciences. Based on a synthesis of these papers and other evidence that was presented during the workshop, we conclude that: (1) program evaluation is much more prevalent in the U.S. than in the U.K.; (2) the U.S. Advanced Technology Program (ATP) and Small Business Innovation Research (SBIR) program have been successful; and (3) shared costs between government and industry and frequent assessment are the keys to ensuring that such programs are successful.     

Partner Selection Decisions in Interfirm Collaborations: The Paradox of Relational Embeddedness

By combining insights from relational network theory and agency theory we identify the boundary conditions to the embeddedness approach to partner selection decisions in interfirm collaborations. Employing a longitudinal dataset comprising the investment syndicates for the population of UK management buyouts between 1993 and 2003, we find that relational embeddedness is less important for selecting partners when agency risks are low, allowing firms to expand their networks. Furthermore, reputational capital may act as a partial substitute for relational embeddedness, again permitting firms to expand their networks. Our findings enhance understanding of the boundary conditions associated with the relational network approach to partner selections and network behaviour.     

Turnaround and failure: Resource weaknesses and the rise and fall of Jarvis

Research employing the resource-based view (RBV) has overwhelming focused on the upside of resources, namely those that provide benefit to the firm. However, an emerging research stream suggests that the downside of resources, namely resource weaknesses, may be crucial in gaining a greater understanding of the key factors that contribute to firm performance and the ability to turnaround failing companies. We examine the infamous case of Jarvis, a firm that achieved a turnaround, but then experienced catastrophic failure. In so doing we explore the emergence of resource weaknesses, their nature and ability to combine to create a fatal organisational outcome.