Innovation and Private Use of Public Knowledge: Insights on Perceived Usefulness

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Explore the dynamics of innovation as a non-linear source for private utilization of public knowledge in the context of universities and research organizations. Delve into the motivation, objectives, approach, hypotheses, database, and methodology to understand the determinants of perceived usefulness of information from public sources for technological innovation in firms. Gain invaluable insights for enhancing innovation strategies and leveraging external information sources effectively.

  • Innovation
  • Public Knowledge
  • Perceived Usefulness
  • University Research
  • Technological Innovation
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  1. Not searching, but finding: Innovation as a non-linear source of the private use of public knowledge Joaqu n M. Azagra-Caro | Bristol, 5 September 2011 Co-authors: Rafael Pardo Ruth Rama INSTITUTE OF INNOVATION AND KNOWLEDGE MANAGEMENT

  2. Motivation Improving perceived usefulness of universities and public research organisations (U-PROs) Understanding the phenomenon in non- innovators a substantial part of industry in emerging economies and even in EU countries Covering the gap: perceived usefulness of U- PROs in non-innovators COSINUS 2 5/9/2011

  3. Objectives Expanding previous models on the determinants of the perceived usefulness of U- PROs Distinguishing between innovators and non- innovators COSINUS 3 5/9/2011

  4. 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 COSINUS 6 5/9/2011

  5. Hypotheses Expected impact Openness H1: + Current models H2: + Perceived usefulness of information provided by U-PROs for innovation- related company activities R&D H3: + Size H8: H4: + Technological innovation Skills Strategic innovation H5: - Expanded models Market competition H6: - Research collaboration H7: + 8 5/9/2011 COSINUS

  6. 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 COSINUS 9 5/9/2011

  7. Methodology Econometric estimation of the determinants of the perceived usefulness of information provided by universities and PROs Variable 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 Description COSINUS 10 5/9/2011

  8. Results Number of observations Log likelihood function Prob[ 2 > 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) *** -3.74 (-5.73) *** 0.91 (19.79) *** 0.91 (18.7) *** 0.22 (1.42) 0.25 (2.41) ** Included Innovators 781 -917 0 Coeff. (t-ratio) 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 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 *** 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 COSINUS 11 5/9/2011

  9. Results Number of observations Log likelihood function Prob[ 2 > 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) *** -3.74 (-5.73) *** 0.91 (19.79) *** 0.91 (18.7) *** 0.22 (1.42) 0.25 (2.41) ** Included Innovators 781 -917 0 Coeff. (t-ratio) 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 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 *** p<0.01; ** p<0.05; * p<0.10 For innovators, usual determinants apply in our sample, except R&D (H1&3 , H2 ) COSINUS 12 5/9/2011

  10. Results Number of observations Log likelihood function Prob[ 2 > 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) *** -3.74 (-5.73) *** 0.91 (19.79) *** 0.91 (18.7) *** 0.22 (1.42) 0.25 (2.41) ** Included Innovators 781 -917 0 Coeff. (t-ratio) 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 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 *** p<0.01; ** p<0.05; * p<0.10 For innovators, other determinants play a significant role COSINUS 13 5/9/2011

  11. Results Number of observations Log likelihood function Prob[ 2 > 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) *** -3.74 (-5.73) *** 0.91 (19.79) *** 0.91 (18.7) *** 0.22 (1.42) 0.25 (2.41) ** Included Innovators 781 -917 0 Coeff. (t-ratio) 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 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 *** p<0.01; ** p<0.05; * p<0.10 Higher skills, higher perceived use of public knowledge (H4 ) COSINUS 14 5/9/2011

  12. Results Number of observations Log likelihood function Prob[ 2 > 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) *** -3.74 (-5.73) *** 0.91 (19.79) *** 0.91 (18.7) *** 0.22 (1.42) 0.25 (2.41) ** Included Innovators 781 -917 0 Coeff. (t-ratio) 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 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 *** p<0.01; ** p<0.05; * p<0.10 Lower strategic innovation, higher perceived use of public knowledge (H5 ) COSINUS 15 5/9/2011

  13. Results Number of observations Log likelihood function Prob[ 2 > 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) *** -3.74 (-5.73) *** 0.91 (19.79) *** 0.91 (18.7) *** 0.22 (1.42) 0.25 (2.41) ** Included Innovators 781 -917 0 Coeff. (t-ratio) 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 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 *** p<0.01; ** p<0.05; * p<0.10 For innovators, degree of competition, not related to use of public knowledge (H6 ) COSINUS 16 5/9/2011

  14. Results Number of observations Log likelihood function Prob[ 2 > 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) *** -3.74 (-5.73) *** 0.91 (19.79) *** 0.91 (18.7) *** 0.22 (1.42) 0.25 (2.41) ** Included Innovators 781 -917 0 Coeff. (t-ratio) 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 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 *** p<0.01; ** p<0.05; * p<0.10 Higher collaboration, higher perceived use of public knowledge (H7 ) COSINUS 17 5/9/2011

  15. Results Number of observations Log likelihood function Prob[ 2 > 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) *** -3.74 (-5.73) *** 0.91 (19.79) *** 0.91 (18.7) *** 0.22 (1.42) 0.25 (2.41) ** Included Innovators 781 -917 0 Coeff. (t-ratio) 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 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 *** p<0.01; ** p<0.05; * p<0.10 Non-innovators have little in common with innovators (H8 ) COSINUS 18 5/9/2011

  16. Results Number of observations Log likelihood function Prob[ 2 > 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) *** -3.74 (-5.73) *** 0.91 (19.79) *** 0.91 (18.7) *** 0.22 (1.42) 0.25 (2.41) ** Included Innovators 781 -917 0 Coeff. (t-ratio) 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 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 *** p<0.01; ** p<0.05; * p<0.10 Openness, the only determinant in common COSINUS 19 5/9/2011

  17. Results Number of observations Log likelihood function Prob[ 2 > 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) *** -3.74 (-5.73) *** 0.91 (19.79) *** 0.91 (18.7) *** 0.22 (1.42) 0.25 (2.41) ** Included Innovators 781 -917 0 Coeff. (t-ratio) 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 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 *** p<0.01; ** p<0.05; * p<0.10 Unlike for innovators, firm size, skills and strategic innovation are not significant COSINUS 20 5/9/2011

  18. Results Number of observations Log likelihood function Prob[ 2 > 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) *** -3.74 (-5.73) *** 0.91 (19.79) *** 0.91 (18.7) *** 0.22 (1.42) 0.25 (2.41) ** Included Innovators 781 -917 0 Coeff. (t-ratio) 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 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 *** p<0.01; ** p<0.05; * p<0.10 Unlike for innovators, lower competition, higher perceived use of public knowledge COSINUS 21 5/9/2011

  19. I do not search, I find (P. Picasso) Searching is conscious, finding is not Searching leads both innovators and non- innovators to perceive public knowledge as useful Finding is a prerogative of practical experience in technological innovation COSINUS 22 5/9/2011

  20. 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 COSINUS 23 5/9/2011

  21. www.ingenio.upv.es INSTITUTE OF INNOVATION AND KNOWLEDGE MANAGEMENT

  22. 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 COSINUS 25 5/9/2011

  23. 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 ? COSINUS 26 5/9/2011

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