Towards the Framing of Venture Capital Policies: a Systems-Evolutionary Perspective with Particular Reference to the UK/Scotland and Israeli Experiences

We compare some of the policies that have been attempted in Europe (UK/Scotland) and Israel over the past fifteen years to elaborate a new Systems Evolutionary (SE) framework for rethinking VC policy and related ITP. We argue that this perspective is useful for both real world (‘positive’) analysis and policy (‘normative’) analys is. Our SE framework is shaped by (i) a multidimensional view of VC; (ii) strong between VC, VC policy and the development of EHTCs; and (iii) a strategic approach to policy. In contrast, many VC policies in Europe up to and including the 1990s took a ‘static’ financial view of VC that focused on ‘bridging existng early phase finance gaps of innovative companies’ rather than creating of a new mechanism to assure the timely growth of EHTCs. We aim to present the new framework rather than to provide specific recommendations. The main conclusion is that the success of VC policies depend on factors such as the phase of evolution of (i) VC or related innovation finance organizations; (ii) the underlying segment of start up companies and of high tech industries; (iii) the specific country/region institutional setting. While in some contexts it may be worth considering the targeting of a new VC industry/market (and associated EHTC) in others the focus of policy should center in improving pre-emergence conditions. More specifically it may be, given that VC searches for ‘investment ready opportunities’, that ITP should, in many contexts, precede VC policies. Another key conclusion is that implementing this perspective necessitates the creation of a strategic level of policy, with a view of specifying a set of strategic priorities for Scie nce, Technology, and Innovation, priorities that should precede rather than follow policy design and implementation. A major challenge is to extend the present framework that was initially based on VCs oriented towards ICT to LS.

Does technology affect network structure? - A quantitative analysis of collaborative research projects in two specific EU programmes

The promotion of collaborative R&D through Framework Programmes is a top priority of European RTD policy. However, despite the considerable sums involved, surprisingly little is known about the structure of the resulting research networks. Arguing that the underlying technological regime critically affects the structure of collaborative R&D, this article examines the structure and topology of collaborative research networks in the telecommunications and the agro-industrial industry in two specific programmes of the 4th EU Framework Programme. We find systematic differences which we attribute to differences in the underlying knowledge base, the research trajectories pursued in EU-funded R&D and the organisation of knowledge production in the two industries. As expected on the basis of prior research, we show that collaborative research projects involve a larger number of partners and require greater funding in the telecommunications industry, and that actors from science are positioned more prominently in the agro-industrial collaborative R&D network. Contrary to expectations, we find fewer and less intense interactions between science and industry in the agro-industrial industry. We provide a tentative explanation for this result and discuss policy implications.framework programmes, research collaborations, technological regime, sectoral innovation system, social network analysis, science-industry interactions

Start-ups, firm growth and the consolidation of the French biotech industry

Based on an original dataset, we analyze empirically the determinants of firm growth in the French biotech industry during two periods, 1996-1999 and 1999-2002. We have two main results. First, Gibrat's law is violated. The growth of annual turnover is influenced by teh initial size of the firm. The effect is non-linear, negative for small firms. Second, location has a significant impact on growth. We use different sets of dummies to characterize location and different measures of firm growth. As a whole, our results point at Marseilles (and its region) and Nanterre (but not Paris and Evry) as favorable places for the growth of firms between 1999 and 2002. For the 1996-1999, the favorable places are Strasbourg (and Alsace) and Rh“ne-Alpes (Lyon/Grenoble). Our analysis thus suggests that the changes in the (notably legal) environment of French biotech firms that took place in 1999 had a drastic effect of the comparative advantages of locations for biotech firms.BIOTECHNOLOGY; INDUSTRIAL CLUSTERING; FIRM GROWTH; FRANCE

France: innovation system and innovation policy

--

Industrial Clustering as a tool to enhance competitiveness of the economy of the KwaZulu-Natal Province, South Africa.

Doctoral Degree. University of KwaZulu-Natal, Durban.The South African government has in the past 20 years developed various industrial policies that were geared towards industrialisation and making meaningful contributions towards the creation of jobs, dealing with the issues of inequality and poverty. Some provinces including the KwaZulu-Natal (KZN) then followed suit in tailoring the national policies and strategies to ensemble their respective provincial imperatives. Subsequently, the Industrial Clustering concept was employed as a special purpose vehicle in order to enhance competitiveness of the various priority sectors. The study interrogated the challenges that were experienced by the KZN Department of Economic Development, Tourism and Environmental Affairs supported industrial clusters. It was that discovered that some industrial clusters collapsed and failed to sustain due to governance, inconsistent funding, leadership, lack of co-ordination and government proactive or induced approach in initiating clusters. The study further analysed the regional and international competitiveness of industries, knowledge-based theory of spatial clustering of industries, the dynamic nature of localization, regionally concentrated specialized firms linked vertically by value chains gain from complementary competencies and vertical and horizontal integration of firms showing a critical importance of similar or substitutive competencies, leading to cognitive proximities, innovation and enabling mutual learning processes. In a bid find an everlasting solution, an industrial clustering framework was developed in order to ensure that industrial clusters are guided and supported in terms of the provision of the policy imperatives and financial resources. Further, the five (5) supported industrial clusters (Maritime Cluster, Wood and Wood Product Cluster, Music Cluster, Textile and Clothing Cluster and Fashion Council) by KwaZulu-Natal government unanimously agreed that government should play a facilitation role in developing policies and strategies that are destined to promote industrialization and organisational competitiveness of the industrial clusters. Lastly, the study re-affirmed the relevance of Porter’s Diamond Model as there are unprecedented benefits that are accrued by individual members who join the industrial clusters