The role of Collective Research Centres in Belgium 1 Outline Collective research centres (CRCs) • Knowledge paradox & public intervention • Innovation systems • Characteristics of CRCs Technology transfer models • 1. Support activities • 2. Sourcing of information • 3. Dissemination (members) Behavioural additionality 2 Knowledge paradox Products & processes become more complex (tendency to open innovation) Knowledge paradox: abundant scientific and technical knowledge is produced, but insufficient economic exploitation results (Dosi et al, 2006) Government intervention needed (e.g. industry-science relations) 3 Government intervention stimulating R&D and innovation Rationale: market failure (Dasgupta and David, 1994; Nelson, 1959) Market failure does not relate to R&D per se, but to the transfer and flows of information between firms or firms and public sector research institutes (Metcalfe and Georghiou, 1997) • Firms’ success is dependent on their ability to utilize external networks efficiently (Nooteboom, 1994; Dodgson and Rothwell, 1994; Chesbrough, 2003) Governments have more and more turned away from direct R&D subsidies to policy promoting (Autio et al., 2008) • Transfer of knowledge through Networking Collaborative R&D programs 4 One of these actors: Collective Research Centres (CRCs) CRCs in the innovation system Enterprise sector Collective research centres Government sector Intermediary organisations TTOs Spin-offs Incubators Science parks Higher education Private non-profit 5 CRC project: objectives To look into the various activities by CRCs To go beyond quantification when discussing the impact of CRCs To study the role of CRCs for alleviating the knowledge paradox 6 CRCs - general Founded by industry to support R&D in a particular sector Origin in the Law “De Groote”, 30th January, 1947 Active in strengthening the relations between (member) firms and scientific developments (ISR) Mainly financed by member contributions (60%), but several actions are financed by regional, federal or European authorities 7 CRCs - typology Three categories: • Centres “De Groote” • Associated collective centres • Autonomous centres: recent initiatives by regional authorities The research focuses on first two categories. These centres often cover more than one region in Belgium 8 Location of CRCs 9 Reasons for location To which extent were the following criteria important in setting up R&D activities in your region? (1= very low importance, 7= very high importance) a. Availability of highly skilled personnel b. Presence of a university c. Presence of a research centre d. Presence of important clients/members/activities/production facilities e. Presence of physical infrastructure (terrains, transport/accessibility) f. Local rules and regulations g. Possibilities of enjoying grants and subsidies from government h. Presence of a cluster of companies active in the domain i. Presence of networking possibilities j. Financial attractive location conditions k. Historical reasons l. Prestige Average Median Weighted average 3.5 4.1 3.8 4.8 3 4 2.5 6 3.7 4.0 3.5 4.2 3.8 4.5 3.8 2.5 3.5 1.5 5 2.1 3.5 3.1 3.5 2.9 3.2 2.7 3.5 2.0 3.5 2 3.5 1 3 4.1 3 2.5 10 CRCs – active in traditional sectors Overview of employment at the collective research centres, 2003-2007 (FTE) 2004 2005 2006 2007 105 100 107 113 110 CRIC- Cement 40 38 38 39 43 BCRC- Ceramics 21 22 23 24 26 SIRRIS- Technology 143 143 131 135 139 BRRC- Road 101 104 109 101 97 BBRI- Building 193 193 199 204 207 CTIB-TCHN- Wood 18 17 18 18 18 WTOCD- Diamond 19 14 15 15 14 CoRI- Coating 22 22 16 16 20 139 138 134 128 128 BWI- Welding 17 14 15 19 19 BPI- Packaging 13 13 13 14 14 831 818 824 828 835 2003 CENTEXBEL- Textile CRM- Metallurgy Total 11 Tech transfer model of CRCs Internal sources of knowledge Member companies External sources of knowledge 2 CRC activities 1 Dissemination 3 12 Tech transfer model of CRCs Internal sources of knowledge Member companies External sources of knowledge 2 CRC activities 1 Dissemination 3 13 1. CRC activities (OECD Frascati) Global activity of the institution Scientific and Technologic activities (STA) Research and Development (R&D) Other activities Other related R&Dactivities fundamental research applied research development R&D services (1) Related industrial activities (2) 14 Support activities by CRCs Provided by most CRCs to most members Provided to a lesser extent 15 Typology of CRC activities Knowledge intelligence unit • TIS, provision of advice, R&D Knowledge agency • TAD Knowledge repository • Technical library, qualified personnel 16 Tech transfer model of CRCs Internal sources of knowledge Member companies External sources of knowledge 2 CRC activities 1 Dissemination 3 17 2. Sourcing of information R&D and R&D related activities TOP 3 In-house personnel Clients and members Public knowledge (publications, specialized magazines, meetings and conferences) 18 Example: Centexbel Need Detection Interaction with members and nonmembers by Technological advisors Dissemination Permanent Committee Technology suppliers, conferences and literature, technical committees Centexbel writes proposal and submits for finance Collective Research (Max 2 years) technological advisors, project reports 19 Tech transfer model of CRCs Internal sources of knowledge Member companies External sources of knowledge 2 CRC activities 1 Dissemination 3 20 3. Dissemination and impact CRC managers asked members to fill out online questionnaire 856 questionnaires received 21 The member’s point of view (1) Why and when do they call upon the CRC? What services do they call upon most frequently? 22 Why and when do they call upon the CRC? Drivers to call upon CRC support (1= totally unimportant; 7= very important) 6 5 4 mean s.d. 3 2 1 0 Because of the high economic risks associated with own R&D Because of the high costs associated with R&D Because of the lack of available financial means Because of the lack of organisational flexibility Because CRCs dispose of qualified personnel Because CRCS dispose of technical information Because CRCs dispose of market information 23 Large differences between R&D/no R&D, CRC, size What services do they call upon most frequently? Most frequently used services Less frequently used services 24 Large differences between R&D/no R&D, CRC, size Taxonomy: no one size fits all “Heavy” users • Closely involved, especially on R&D activities “Regular” users • Search information, standardisation, seminars “Light” users • Loosely involved 25 The member’s point of view (2) Traditional impact measures • Output additionality (patents, publications, new products launched) • Input additionality (1 public $ / 1 private $) • BUT…problems with assessing impact of intermediaries Services impact is distributed among a wide range of activities Benefits are not instantaneous => Study of behavioural additionality 26 Behavioural additionality Studies the difference in firm behaviour resulting from the intervention Diverse definitions -> CRC analysis: • Input additionality What would have happened without the CRC support • Network additionality To what extend do CRC help to built networks • Competence additionality Impact of CRC support on competencies and expertise • Speed additionality Impact on the speed of a project • Scope and scale additionality Impact on risk and size of projects • Output additionality Impact on results of the projects 27 What is the impact of collaboration with the CRC for the member companies? • Of R&D related activities? • Of R&D (contract research) activities? 28 Behavioural additionality of R&D related activities Additionalities for R&D related activities (1=little impact; 7= much impact) 6 5 Mean (1-7) 4 mean 3 s.d. 2 1 0 output speed network competence input 29 Higher in case of Cies with higher R&D intensity Alternatives for CRCs (R&D related activities) What would have been the impact if it had not been possible to call upon the CRC knowledge transfer activities? (1=disagree entirely; 7= agree entirely) mean s.d. We would have called upon private parties (consultants, companies,…) 4.15 1.67 We would have called upon public bodies (IWT, DGTRE,…) 4.26 1.63 We would have called upon universities or public research institutes 4.48 1.60 We would have allocated more internal resources 3.95 1.57 We would not have taken any further actions 3.34 1.62 N=285 Especially the case for small, low R&D intensive companies Especially the case for large, R&D intensive companies CRC dependent 30 Behavioural additionality of R&D activities (contract research) Additionalities for contract research (1= little impact; 7= high impact) 6 5 Mean (1-7) 4 mean 3 s.d. 2 1 0 output network competence input 31 Alternatives for CRCs (contract research) What would have been the impact if it had not been possible to call upon the CRC contract research? (1= disagree entirely – 7= agree entirely) Mean Standard deviation The project would have taken place with the same budget 3.34 1.50 The project would have taken place with a smaller budget 3.51 1.53 We would have allocated more internal resources to the project 4.07 1.45 The project would not have taken place at all 3.29 1.56 The project would have taken place at a slower speed 4.46 1.48 The project would have taken place on a much smaller scale 3.82 1.50 The project would have taken place with less ambitious goals 3.88 1.43 We would have called upon private parties (consultants) 4.07 1.64 4.19 1.71 4.51 1.57 * * We would have called upon public institutions (IWT, DEGRE,…) We would have called upon universities or public research centres * * * Dependent on R&D intensity 32 Determinants of cognitive capacity additionality Absorptive capacity, or • the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends • Within The member firm The collective research centre • Operationalized as R&D intensity The intensity of use of the CRC’s services 33 Network additionality Network R&D related activities R&D activities The intervention by the CRC allowed my company to identify potential partners The project allowed us to network with universities or public research centres The intervention by the CRC allowed my company to cooperate with other companies The project allowed us to network with other companies The intervention by the CRC allowed my company to cooperate with knowledge institutes, such as universities or research institutes The project allowed us to build research networks 34 Steurs et al. (2006) Competence additionality Competence R&D related activities R&D activities The intervention by the CRC allowed my company to acquire new knowledge The project increased our skills to network with universities or public research centres The intervention by the CRC allowed my company to increase our innovation management capabilities The project increased our skills to network with other companies The intervention by the CRC allowed my company to upgrade its human resources The project allowed us to acquire new knowledge The project allowed us to upgrade our human resources The project increased our innovation management capabilities 35 Steurs et al. (2006) Regression results OLS regression results for R&D related activities (AC= Absortive capacity) Mediation Test Network additionality Competence additionality Network additionality Competence additionality AC CRC -.13** .05 -.11* .08 AC member firm .03 .03 .10* .12* Intensity of use .41**** .51**** Age -.02 -.05* .02 .00 Slack .00 .01 -.03 -.01 Adjusted R² .18 .25 .02 .02 F 13.32**** 20.59**** 2.09* 1.13 Independent variables Control variables N=289; *p<.10, **p<.05, ***p<.001;****, p<.0001 36 Results Cognitive capacity Cognitive capacity AC of technology intermediary additionality additionality Network additionality AC of member firm + + + Intensity of use Competence additionality + 37 Results (2) Firms with higher R&D intensity tend to benefit more from working with the CRCs • Push by government to focus on breakthroughs Should CRCs then not invest in own R&D? NO, from an absorptive capacity point of view • Other types of absorptive capacity may affect the results 38 Conclusions CRCs and their users are diverse in nature Most important role lies in networking activities and technology transfer • But: high involvement in R&D (absorptive capacity) Main impact for members: competence additionality / network • Especially when the member engages already in R&D Alternatives for CRCs are mainly available for R&Dintensive and larger companies Exist on behalf and for the benefit of the member firms 39 (=> topics are determined by the market! <-> knowledge paradox) More information Research Series 11 (Belgian Science Policy) “Collective Research Centres: A Study on R&D and Technology Transfer Involvement” FDC “Open innovation: the role of Collective Research Centres in stimulating innovation” 40 Contact Mirjam Knockaert • Mirjam.knockaert@ugent.be André Spithoven • Andre.spithoven@belspo.be 41