The Effects of Physical Location on Communication Patterns (Continued) May 5, 2007 Some Obvious Points P(C) S < S 2 1 p < p 2 1 S S3 < 1 p > p1 3 p3 p1 p2 S3 S2 Distance S1 A Typical Grouping of Offices Around a Secretarial Area. Same Area Converted to the 'Cave and Commons' Concept. Office Configuration to Vary Privacy and Accessibility. Exterior Wall With Window Floor to Ceiling Panels Sliding Glass Panels High Panels Combining Physical & Organizational Barriers & Bonds The Effects and Organizational Separation as Measured in One Organization SAME WING SAME FLOOR DIFFERENT WINGS SAME BUILDING DIFFERENT FLOORS SAME SITE DIFFERENT BUILDINGS DIFFERENT SITES DIFFERENT DEPARTMENTS AND PROJECTS SAME DEPARTMENT DIFFERENT PROJECTS SAME PROJECT DIFFERENT DEPARTMENTS SAME DEPARTMENT AND PROJECT 0.16 0.69 0.71 0.95 0.05 0.53 0.80 ___ 0.05 0.60 ___ ___ 0.02 0.35 0.33 0.50 0.002 0.15 0.23 0.38 Two Departments in Separate Locations LOCATION I CAA LOCATION II A CAB B CBB The Effect of Transferring Staff Between Locations LOCATION I LOCATION II CAa CAA Caa A CaB CAB CAb Cbb a b Cab CbB B CBB Proportional Decrease in Intradepartmental Communication Moving Staff Between Sites to Increase Interdepartmental Communication (Examples from Laboratories ‘H’ & ‘I’) 1 Proportion Moved 0.95 0.9 10% 10% 0.85 0.8 0.75 20% 20% Lab 'I' 0.7 0.65 30% 40% 50% 5 7 0.6 1 3 Lab 'H' 30% 40% 9 11 50% 13 Proportional Increase in Interdepartmental Communication 15 Proportional Decrease in Intradepartmental Communication Moving Staff Between Buildings to Increase Interdepartmental Communication (An Example from Laboratory ‘H’) 1 Proportion Moved 0.95 10% 0.9 20% 0.85 0.8 30% 0.75 40% 50% 0.7 1 1.5 2 Proportional Increase in Interdepartmental Communication 2.5 Proportional Decrease in Intradepartmental Communication Moving Staff Between Floors of a Building to Increase Interdepartmental Communication (An Example from Laboratory ‘I’) 1 Proportion Moved 0.9 10% 0.8 20% 0.7 30% 0.6 40% 50% 0.5 1 2 3 4 Proportional Increase in Interdepartmental Communication 5 Communication Within a Biotech Cluster The Cambridge/Boston Biotechnology Cluster • An extensive literature has developed in recent years arguing for the benefits of firms sharing a common technology to cluster geographically. – Aids in attracting specialized staff. – May attract venture capital, suppliers, support services, etc. • • Claims have also been made for the synergistic benefits of firms sharing scientific knowledge, especially if there are university laboratories near the cluster. Prior studies have inferred inter-firm communication from the evidence of co-publishing and co-patenting across firms, however, a good amount of scientific exchange may occur that does not appear in such publicly accessible records – No one has ever actually measured whether less formal scientific exchange across firms really occurs, to what degree what the actual dynamics look like and what the results are. Earlier Research • As discussed earlier, we developed a method for measuring the structure of scientific communication networks within firms. • Why not adapt that method for the study of scientific communication among firms and other organizations. Experimental and Control Groups • Geographic limits of the cluster are defined in terms of location within a limited set of postal (Zip) code regions. • Scientists reporting from similar Biotech firms outside of the postal code regions of the main study but within 100 km of Boston. – Comparative density of communication – Connections between the two groups – Connections with the universities and with local ‘Big Pharma’ companies. Communication in The Biotech Cluster Length of connecting links is ________ inversely proportional to the amount of communication reported. 74 102 194 84 172 56 58 118 35 87 57 40 41 213 5 64 38 205 52 20 49 210 48 92 137 160 175 45 3 1 131 190 18 200 69 2 19 143 179 120 199 192 117 70 90 155 68 124 43 4 104 209 82 134 106 163 116 44 42 101 132 182 50 187 Figure by MIT OCW. A Super Cluster? 74 102 194 84 172 56 58 118 35 87 5 64 40 41 38 205 52 213 199 192 20 210 70 48 137 160 175 45 3 1 131 190 18 2 69 200 19 143 179 120 49 117 92 57 90 155 68 124 43 4 104 209 82 134 163 116 44 106 42 101 132 182 50 187 Figure by MIT OCW. Inside The Super Cluster 175 213 45 20 90 155 52 3 1 131 18 190 200 199 192 69 2 104 82 19 143 22 49 210 4 179 120 48 209 134 44 10 Figure by MIT OCW. Where are the Universities? Universities 175 213 45 20 90 155 52 3 1 131 18 190 200 199 192 4 69 2 104 82 19 143 22 49 210 179 120 48 209 134 44 10 = University Figure by MIT OCW. What About ‘Big Pharma’? The Major Pharmaceutical Firms • A number of ‘Big Pharma’ companies have located R&D operations in the region. – Their purpose, obviously is to tap into the network. • Search to license candidates for their new product pipeline. • Search for potential acquisitions. – Are they successful in joining the network? Where is ‘Big Bio’? Large Bio Firms • Some of the Biotech firms have grown quite large. –How do they fit into the network now? ‘Big Bio’ 19 22 213 45 20 104 4 200 2 120 155 44 3 131 11 1 205 2 190 69 134 199 Figure by MIT OCW. Where To From Here? • What more can we learn? – Analyses of the network to relate network position to firm performance. • Comparison between cluster ‘members’ and firms in the control group. • Long term growth. – Size, valuation, etc. • Patent filings • Investigatory New Drug Applications • Etc. – Follow-up interviews to flesh out the network results. – Advice to the many geographic regions attempting to stimulate the growth of similar Biotech clusters. • Is this the new model for doing R&D? – How do individual firms capture the gains? Level of Communication with Other Organizations 120 100 80 60 40 20 0 4 5 6 7 8 9 Mean Distance From Other Organizations (Miles) 10 11 Where are the Universities? Level of Communication with Other Organizations 120 100 80 60 40 20 0 4 5 6 7 8 9 Mean Distance From Other Organizations (Miles) 10 11 Where is Big Pharma? Level of Communication with Other Organizations 120 100 80 60 40 20 0 4 5 6 7 8 9 Mean Distance From Other Organizations (Miles) 10 11 Where is Big Pharma? Level of Communication with Other Organizations 120 100 80 60 40 20 0 4 5 6 7 8 9 Mean Distance From Other Organizations (Miles) 10 11 Level of Communication with Other Organizations 120 100 80 Other 60 Universities Big Pharma 40 Big Bio 20 0 4 6 8 10 12 Mean Distance From Other Organizations (Miles) 14 Level of Communication with Other Organizations 120 100 80 Other 60 Universities Big Pharma 40 Big Bio 20 0 4 9 14 19 24 29 Mean Distance From Other Organizations (Miles) 34