Not searching, but finding:
Innovation as a non-linear source of the private use of public
knowledge
Joaquín M. Azagra-Caro | Bristol, 5 September 2011
Co-authors: Rafael Pardo · Ruth Rama
INSTITUTE OF INNOVATION AND KNOWLEDGE MANAGEMENT
Motivation
• Improving perceived usefulness of universities
and public research organisations (U-PROs)
• Understanding the phenomenon in noninnovators –a substantial part of industry in
emerging economies and even in EU countries
• Covering the gap: perceived usefulness of UPROs in non-innovators
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Objectives
• Expanding previous models on the
determinants of the perceived usefulness of UPROs
• Distinguishing between innovators and noninnovators
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3
Approach
Determinants
of the
perceived
usefulness of
U-PROs
• Mostly disregarded: perceptions = facts
• Mostly considered: perceptions ≠ facts
Current models
• Absorptive capacity
• Corporate coherence
• Innovative routines
• R&D alliances and cooperation
Expanded models
Innovators vs.
non-innovators
• Resource-based view of the firm
• Experiential learning theory
Testable
hypotheses
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Hypotheses
Expected
impact
Perceived
usefulness
of
information
provided by
U-PROs for
innovationrelated
company
activities
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Current
models
H8:
Technological
innovation
Expanded
models
Openness
H1: +
R&D
H2: +
Size
H3: +
Skills
H4: +
Strategic innovation
H5: -
Market competition
H6: -
Research
collaboration
H7: +
8
Database
• A plant-level survey targeting firms in the
Spanish manufacturing industry
• 1,031 surveyed companies (50 or more
employees)
• Representative of size, region and sector
• Unlikely most other surveys, questions about
sources of information were posed to both
innovators and non innovators
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Methodology
• Econometric estimation of the determinants of the
perceived usefulness of information provided by
universities and PROs
Variable
Description
Perceived usefulness Importance of U-PROs as information sources for
technological innovation
Openness
Importance of other 11 external sources of information for
technological innovation
R&D activities
R&D active firm
Firm size
Number of employees
Skills
Degree of technical complexity of tasks
Strategic innovation
Importance of changes in strategic orientation
Competition
Number of competitors in the market
Collaboration
For innovators, importance of collaboration with
universities and PROs in product or process development
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Results
Number of observations
Log likelihood function
Prob[χ2 > value]
Constant
Openness
R&D activities
Ln firm size
Skills
Strategic innovation
Competition
Collaboration
Industry dummies
Innovators
804
-953
0
Coeff. (t-ratio)
-3.66 (-5.81) ***
0.91 (19.79) ***
0.22 (1.42)
0.25 (2.41) **
Included
Innovators
781
-917
0
Coeff. (t-ratio)
-3.74 (-5.73) ***
0.91 (18.7) ***
0.21 (1.35)
0.27 (2.49) **
0.1 (2.01) **
-0.12 (-2.16) **
-0.02 (-0.25)
0.73 (4.3) ***
Included
Non-innovators
173
-150
0
Coeff. (t-ratio)
-7.02 (-4.34) ***
1.1 (8.84) ***
0.64 (1.72) *
0.47 (1.63)
0.13 (0.94)
-0.1 (-0.82)
-0.5 (-2.8) ***
Included
*** p<0.01; ** p<0.05; * p<0.10
• Ordered logit model of the perceived usefulness of
information provided by universities and PROs for
innovation-related activities of the firm
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Results
Number of observations
Log likelihood function
Prob[χ2 > value]
Constant
Openness
R&D activities
Ln firm size
Skills
Strategic innovation
Competition
Collaboration
Industry dummies
Innovators
804
-953
0
Coeff. (t-ratio)
-3.66 (-5.81) ***
0.91 (19.79) ***
0.22 (1.42)
0.25 (2.41) **
Included
Innovators
781
-917
0
Coeff. (t-ratio)
-3.74 (-5.73) ***
0.91 (18.7) ***
0.21 (1.35)
0.27 (2.49) **
0.1 (2.01) **
-0.12 (-2.16) **
-0.02 (-0.25)
0.73 (4.3) ***
Included
Non-innovators
173
-150
0
Coeff. (t-ratio)
-7.02 (-4.34) ***
1.1 (8.84) ***
0.64 (1.72) *
0.47 (1.63)
0.13 (0.94)
-0.1 (-0.82)
-0.5 (-2.8) ***
Included
*** p<0.01; ** p<0.05; * p<0.10
• For innovators, usual determinants apply in our
sample, except R&D (H1&3 ✓, H2 ✗)
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Results
Number of observations
Log likelihood function
Prob[χ2 > value]
Constant
Openness
R&D activities
Ln firm size
Skills
Strategic innovation
Competition
Collaboration
Industry dummies
Innovators
804
-953
0
Coeff. (t-ratio)
-3.66 (-5.81) ***
0.91 (19.79) ***
0.22 (1.42)
0.25 (2.41) **
Included
Innovators
781
-917
0
Coeff. (t-ratio)
-3.74 (-5.73) ***
0.91 (18.7) ***
0.21 (1.35)
0.27 (2.49) **
0.1 (2.01) **
-0.12 (-2.16) **
-0.02 (-0.25)
0.73 (4.3) ***
Included
Non-innovators
173
-150
0
Coeff. (t-ratio)
-7.02 (-4.34) ***
1.1 (8.84) ***
0.64 (1.72) *
0.47 (1.63)
0.13 (0.94)
-0.1 (-0.82)
-0.5 (-2.8) ***
Included
*** p<0.01; ** p<0.05; * p<0.10
• For innovators, other determinants play a significant
role
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Results
Number of observations
Log likelihood function
Prob[χ2 > value]
Constant
Openness
R&D activities
Ln firm size
Skills
Strategic innovation
Competition
Collaboration
Industry dummies
Innovators
804
-953
0
Coeff. (t-ratio)
-3.66 (-5.81) ***
0.91 (19.79) ***
0.22 (1.42)
0.25 (2.41) **
Included
Innovators
781
-917
0
Coeff. (t-ratio)
-3.74 (-5.73) ***
0.91 (18.7) ***
0.21 (1.35)
0.27 (2.49) **
0.1 (2.01) **
-0.12 (-2.16) **
-0.02 (-0.25)
0.73 (4.3) ***
Included
Non-innovators
173
-150
0
Coeff. (t-ratio)
-7.02 (-4.34) ***
1.1 (8.84) ***
0.64 (1.72) *
0.47 (1.63)
0.13 (0.94)
-0.1 (-0.82)
-0.5 (-2.8) ***
Included
*** p<0.01; ** p<0.05; * p<0.10
• Higher skills, higher perceived use of public knowledge
(H4 ✓)
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Results
Number of observations
Log likelihood function
Prob[χ2 > value]
Constant
Openness
R&D activities
Ln firm size
Skills
Strategic innovation
Competition
Collaboration
Industry dummies
Innovators
804
-953
0
Coeff. (t-ratio)
-3.66 (-5.81) ***
0.91 (19.79) ***
0.22 (1.42)
0.25 (2.41) **
Included
Innovators
781
-917
0
Coeff. (t-ratio)
-3.74 (-5.73) ***
0.91 (18.7) ***
0.21 (1.35)
0.27 (2.49) **
0.1 (2.01) **
-0.12 (-2.16) **
-0.02 (-0.25)
0.73 (4.3) ***
Included
Non-innovators
173
-150
0
Coeff. (t-ratio)
-7.02 (-4.34) ***
1.1 (8.84) ***
0.64 (1.72) *
0.47 (1.63)
0.13 (0.94)
-0.1 (-0.82)
-0.5 (-2.8) ***
Included
*** p<0.01; ** p<0.05; * p<0.10
• Lower strategic innovation, higher perceived use of
public knowledge (H5 ✓)
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Results
Number of observations
Log likelihood function
Prob[χ2 > value]
Constant
Openness
R&D activities
Ln firm size
Skills
Strategic innovation
Competition
Collaboration
Industry dummies
Innovators
804
-953
0
Coeff. (t-ratio)
-3.66 (-5.81) ***
0.91 (19.79) ***
0.22 (1.42)
0.25 (2.41) **
Included
Innovators
781
-917
0
Coeff. (t-ratio)
-3.74 (-5.73) ***
0.91 (18.7) ***
0.21 (1.35)
0.27 (2.49) **
0.1 (2.01) **
-0.12 (-2.16) **
-0.02 (-0.25)
0.73 (4.3) ***
Included
Non-innovators
173
-150
0
Coeff. (t-ratio)
-7.02 (-4.34) ***
1.1 (8.84) ***
0.64 (1.72) *
0.47 (1.63)
0.13 (0.94)
-0.1 (-0.82)
-0.5 (-2.8) ***
Included
*** p<0.01; ** p<0.05; * p<0.10
• For innovators, degree of competition, not related to
use of public knowledge (H6 ✗)
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Results
Number of observations
Log likelihood function
Prob[χ2 > value]
Constant
Openness
R&D activities
Ln firm size
Skills
Strategic innovation
Competition
Collaboration
Industry dummies
Innovators
804
-953
0
Coeff. (t-ratio)
-3.66 (-5.81) ***
0.91 (19.79) ***
0.22 (1.42)
0.25 (2.41) **
Included
Innovators
781
-917
0
Coeff. (t-ratio)
-3.74 (-5.73) ***
0.91 (18.7) ***
0.21 (1.35)
0.27 (2.49) **
0.1 (2.01) **
-0.12 (-2.16) **
-0.02 (-0.25)
0.73 (4.3) ***
Included
Non-innovators
173
-150
0
Coeff. (t-ratio)
-7.02 (-4.34) ***
1.1 (8.84) ***
0.64 (1.72) *
0.47 (1.63)
0.13 (0.94)
-0.1 (-0.82)
-0.5 (-2.8) ***
Included
*** p<0.01; ** p<0.05; * p<0.10
• Higher collaboration, higher perceived use of public
knowledge (H7 ✓)
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Results
Number of observations
Log likelihood function
Prob[χ2 > value]
Constant
Openness
R&D activities
Ln firm size
Skills
Strategic innovation
Competition
Collaboration
Industry dummies
Innovators
804
-953
0
Coeff. (t-ratio)
-3.66 (-5.81) ***
0.91 (19.79) ***
0.22 (1.42)
0.25 (2.41) **
Included
Innovators
781
-917
0
Coeff. (t-ratio)
-3.74 (-5.73) ***
0.91 (18.7) ***
0.21 (1.35)
0.27 (2.49) **
0.1 (2.01) **
-0.12 (-2.16) **
-0.02 (-0.25)
0.73 (4.3) ***
Included
Non-innovators
173
-150
0
Coeff. (t-ratio)
-7.02 (-4.34) ***
1.1 (8.84) ***
0.64 (1.72) *
0.47 (1.63)
0.13 (0.94)
-0.1 (-0.82)
-0.5 (-2.8) ***
Included
*** p<0.01; ** p<0.05; * p<0.10
• Non-innovators have little in common with innovators
(H8 ✓)
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Results
Number of observations
Log likelihood function
Prob[χ2 > value]
Constant
Openness
R&D activities
Ln firm size
Skills
Strategic innovation
Competition
Collaboration
Industry dummies
Innovators
804
-953
0
Coeff. (t-ratio)
-3.66 (-5.81) ***
0.91 (19.79) ***
0.22 (1.42)
0.25 (2.41) **
Included
Innovators
781
-917
0
Coeff. (t-ratio)
-3.74 (-5.73) ***
0.91 (18.7) ***
0.21 (1.35)
0.27 (2.49) **
0.1 (2.01) **
-0.12 (-2.16) **
-0.02 (-0.25)
0.73 (4.3) ***
Included
Non-innovators
173
-150
0
Coeff. (t-ratio)
-7.02 (-4.34) ***
1.1 (8.84) ***
0.64 (1.72) *
0.47 (1.63)
0.13 (0.94)
-0.1 (-0.82)
-0.5 (-2.8) ***
Included
*** p<0.01; ** p<0.05; * p<0.10
• Openness, the only determinant in common
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Results
Number of observations
Log likelihood function
Prob[χ2 > value]
Constant
Openness
R&D activities
Ln firm size
Skills
Strategic innovation
Competition
Collaboration
Industry dummies
Innovators
804
-953
0
Coeff. (t-ratio)
-3.66 (-5.81) ***
0.91 (19.79) ***
0.22 (1.42)
0.25 (2.41) **
Included
Innovators
781
-917
0
Coeff. (t-ratio)
-3.74 (-5.73) ***
0.91 (18.7) ***
0.21 (1.35)
0.27 (2.49) **
0.1 (2.01) **
-0.12 (-2.16) **
-0.02 (-0.25)
0.73 (4.3) ***
Included
Non-innovators
173
-150
0
Coeff. (t-ratio)
-7.02 (-4.34) ***
1.1 (8.84) ***
0.64 (1.72) *
0.47 (1.63)
0.13 (0.94)
-0.1 (-0.82)
-0.5 (-2.8) ***
Included
*** p<0.01; ** p<0.05; * p<0.10
• Unlike for innovators, firm size, skills and strategic
innovation are not significant
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Results
Number of observations
Log likelihood function
Prob[χ2 > value]
Constant
Openness
R&D activities
Ln firm size
Skills
Strategic innovation
Competition
Collaboration
Industry dummies
Innovators
804
-953
0
Coeff. (t-ratio)
-3.66 (-5.81) ***
0.91 (19.79) ***
0.22 (1.42)
0.25 (2.41) **
Included
Innovators
781
-917
0
Coeff. (t-ratio)
-3.74 (-5.73) ***
0.91 (18.7) ***
0.21 (1.35)
0.27 (2.49) **
0.1 (2.01) **
-0.12 (-2.16) **
-0.02 (-0.25)
0.73 (4.3) ***
Included
Non-innovators
173
-150
0
Coeff. (t-ratio)
-7.02 (-4.34) ***
1.1 (8.84) ***
0.64 (1.72) *
0.47 (1.63)
0.13 (0.94)
-0.1 (-0.82)
-0.5 (-2.8) ***
Included
*** p<0.01; ** p<0.05; * p<0.10
• Unlike for innovators, lower competition, higher
perceived use of public knowledge
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‘I do not search, I find’ (P. Picasso)
• Searching is conscious,
finding is not
• Searching leads both
innovators and noninnovators to perceive
public knowledge as
useful
• Finding is a prerogative
of practical experience
in technological
innovation
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Implications on the new role of
universities
• Fostering openness
• Addressing also non-innovators
• Not promoting the use of public knowledge to
innovate, but practical experience in innovation
to use public knowledge
• I.e. putting more emphasis on innovative
culture than on technology transfer
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www.ingenio.upv.es
INSTITUTE OF INNOVATION AND KNOWLEDGE MANAGEMENT
Strategic innovation
• Entering a new market with a new technology
can be unsuccessful ‘because the effort is likely
to be outside the firm’s learning range’ (Dosi et
al 1992)
• Innovating routines: matching new corporate
technology to new specific organisational
practices is risky (Pavitt 2002)
• Strategic innovation more reactive than
proactive, generating turbulence
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The strange case of R&D
• Scarce impact for innovators
– Statistical reason: many innovators perform R&D activities
– But low correlation and high proportion of less intuitive cases
– In Spain, more technology adoption than technology creation –
shop-floor more important than R&D –it is skills that determine
perceived usefulness of U-PROs
– Two theoretical forces: internal R&D vs. external R&D –in
Spain, they cancel out
• Positive impact for non-innovators
– Many without R&D department –having one makes a difference
– But borderline significance, so…?
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