Technology Incubators as Nodes in Knowledge Networks

It is widely accepted that new knowledge underpinned innovation and growth influences economic activities. Economic agents rely not only on their own knowledge but also knowledge from others, whether it be codified and ’transferred via ICT’ or in tacit form. Moreover, it has long been argued that the acquisition of latter type of knowledge is influenced by geographic proximity. Based on this argument, it follows that the part firms’ supply of knowledge depends on how close, in terms of physical distance, to other firms, suppliers, customers, and research institutions, they are located. They are all can be categorize as a pool of knowledge that important for the firms’ growth and innovation capacity. Today, we witness many initiatives from policy makers around the world to compete in an increasingly technology- driven global economy through the establishing of technology incubators. Technology incubators can be conceived as organizations and/or facilities to enhance high-technology firm establishment and survival. Mostly they are located near the university or research center. There are many success stories on the contribution of incubators to the regional growth. At the same time, technology incubators have been widely criticized in the academic literature when judged in terms of regional innovation and knowledge development. The critics include the relying on an outdated, linear, model of innovation, which assumes that knowledge can be transferred directly from university to firms. However, innovation is now widely recognized as a complex non-linear process involving feedback loops and the creation of synergies through a diverse range of knowledge networks. Therefore, our understanding about knowledge spillover processes connected with incubator is yet poor. Very little is known about the mechanisms of knowledge exchange and spillover initiated by incubator and their role in supporting the growth of the firm. In this study we draw on the current body of literature, mainly agglomeration theories, and use the concepts of tacit knowledge and context to understand how knowledge spillovers actually take place. Our objective is to build a conceptual framework that describes how technology incubators operate as a mediator of knowledge for their tenants. In addition, based on empirical data of high-technology start-ups at TU Delft (The Netherlands), this study tests the proposition that not only geographic proximity to the university, but also that relations with other firms, particularly customers and suppliers matters. We also consider the function of ICT in shaping the new role of technology incubators in providing knowledge support. By explicitly analyzing the knowledge spillovers and mediation role offered by technology incubators, we seek to open up the ‘black box’ of the incubation process as a source of learning and gaining knowledge resources. We conclude the paper with a few recommendations for policymaking and further research.

Determinants of University Spin-Offs’ Growth: Do Socioeconomic Networks and Support Matter?

University spin-offs (USOs), as a type of entrepreneurial firms, face the challenge of obtaining sufficient resources to realize perceived business opportunities. USOs are vulnerable to many obstacles in this endeavor, particularly obstacles related to a lack of entrepreneurial knowledge (skills). Support such as office facilities, loan, and business coaching provided by incubator organizations, may help USOs to overcome obstacles. On the other hand, USOs may also overcome the lack of resources by participating in networks of supportive relationships. Social networking by USOs, including its spatial dimension, is not well understood. For instance, it is still not known how universities as a main source of knowledge contribute to the knowledge needs of nearby USOs; similarly, the spatial layout of knowledge relations of USOs has remained virtually unknown. This paper attempts to fill this knowledge gap. Our conceptual model of early growth of USOs, in terms of knowledge needs and fulfilment, is based on resource-based theory and social network theory. In this paper, we assume that USOs’ embeddedness in a network of ties is an important source of variation in the acquisition of knowledge resources. We argue that, aside from support from incubation organizations, USOs that maintain networks rich in bridging or boundary-spanning ties with knowledge institutions/actors are better-off compared with USOs that don’t employ such ties. We focus on the role of local institutions, particularly the university, as a source of knowledge. Our assumptions are tested on the basis of a sample of academic spin-offs of TU Delft, the Netherlands. The results from regression modeling are expected to support the embeddedness hypothesis and to produce new insights about the link between USOs’ social networks, the acquisition of knowledge and survival and growth.

Examining change in entrepreneurial networks:Using visualisation as an alternative approach

Although network-based research in entrepreneurship has considered the importance of networks for small firm growth, studies have been criticised for their contradictory inferences on how entrepreneurs should embed in networks, and for overlooking the fact that networks are dynamic in nature. In this paper, we seek to contribute to entrepreneurial network literature by exploring changes in entrepreneurial networks using a network mapping approach. To meet our research objectives, we implement an innovative research design (network mapping) where entrepreneurs visually demonstrate how their networks have changed. We find that entrepreneurial networks evolve dynamically in relation to entrepreneurial stages such as opportunity exploration, initial resource gathering, incubation, early market entry, and growth. Based on the characteristics of network, the change can be defined as the initial networks change towards support-based networks, market-based networks, and the development of core networks. Given the nature of these findings, this study contributes to fostering understanding on network changes and the effectiveness of a network mapping approach as an alternative data collection methodology in network research

Networks and entrepreneurial learning:coping with difficulties

Purpose Many scholars analyse networks and learning to understand how individuals successfully create and manage new ventures. Based on the assumption that entrepreneurs learn from networks, this study examines which types of difficulties encourage entrepreneurs to use networks to facilitate learning, whether entrepreneurs change networks to deal with such difficulties, and which network characteristics facilitate learning. Design/methodology/approach Networks are considered a potential source of learning, namely, the cognitive process of acquiring and structuring knowledge, creating meaning from experience and generating new solutions from existing knowledge. Through networks, entrepreneur share information and discuss opportunities and problems. Using an innovative approach combining storytelling and network mapping, this study analyses how entrepreneurs use networks in learning. The data collected from six entrepreneurs working in knowledge-intensive sectors enables examining the learning process ensuing from the interactions between entrepreneurs and their contacts. Findings The findings show that entrepreneurs construct different types of networks in response to their difficulties, not in relation to products or technologies, but to learn to overcome self-crises, external threats, management and organisational issues. The findings reveal that entrepreneurs develop networks dominated by strong ties for exploitative learning and networks dominated by weak ties for explorative learning. Research limitations/implications Originality/value This study contributes to literature on networks and entrepreneurial learning. More specifically, the study provides evidence of learning in the context of networks, which is a relatively overlooked area in entrepreneurship literature, identifying the role of difficulties in determining the type of learning through networks and the related mechanisms

Determination of the optimal number of clusters in harmonic data classification

In many of clustering algorithms, such as K-means and Fuzzy C-mean, the value of the expected numbers of clusters is often needed in advance as an input parameter to the algorithm. Other clustering algorithms estimate this number as the clustering process progresses using various heuristic techniques; however such techniques can also lead to a local minima within the solution space without finding the optimum number of clusters. In this paper, a method has been developed to determine the optimum number of clusters in power quality monitoring data using a data mining algorithm based on the minimum message length technique. The proposed method was tested using data from known number of clusters with randomly generated data points, with data from a simulation of a power system, and with power quality data from an actual harmonic monitoring system in a distribution system in Australia. The results from the tests confirm the effectiveness of the proposed method in finding the optimum number of clusters

Life after incubation:The impact of entrepreneurial universities on the long-term performance of their spin-off firms

The concept of the entrepreneurial university advocates the importance of the economic and societal impacts of universities through, among other things, the creation of spin-offs. With regard to supporting the early growth of spin-offs, literature has consistently emphasized the role of spatial and social proximity to universities in providing access to resources and facilitating technology transfer. However, little is known about the relationship between universities and their spin-offs, especially after incubation programs have been completed. Using a sample of 100 spin-offs from two universities in Europe, we develop several hypotheses predicting the motivation to maintain proximity to universities and the impact on performance. The findings suggest that factors such as research orientation, entrepreneurial orientation and market hostility encourage spin-offs to maintain proximity to universities. However, spin-offs experience diminishing returns in performance as commercial activities are reduced due to them over-pursuing proximity. More specifically, spin-offs with a high entrepreneurial orientation perform strongly if they are able to balance their level of proximity to universities. Our study contributes to the current discussion on the role of the university in supporting entrepreneurial activities and sparks a new debate on how to support the long-term growth of spin-offs, including differentiation in support according to entrepreneurial orientation, as well as flexibility in support

Management of Voltage Unbalance Through Allocation of Emission Limits to Installations

The International Electrotechnical Commission (IEC) has recently released the Technical Report IEC/TR 61000-3-13 for the assessment of voltage unbalance emission by installations connected to medium voltage (MV), high voltage (HV) and extra high voltage (EHV) power systems, which is expected to provide the basis for developing a compatible Australian Standard. The philosophy of the approach described in this report is similar to the IEC recommendations for harmonics and flicker allocation. In addition, this involves a unique aspect, the contribution to global voltage unbalance by system inherent asymmetries, noting the fact that the voltage unbalance at a busbar can arise due to both load and system (essentially lines) asymmetries. Although the concepts and the basic principles used in this approach are widely accepted, the Technical Report IEC/TR 61000-3-13 is seen to require further refinements and original developments in relation to some of the key aspects. This paper reports, in summary, the work that has been carried out addressing: (a) propagation of voltage unbalance from MV to low voltage (LV) levels; and (b) global emission in MV systems due to line asymmetries, with the view to make contributions for further improving the present technical report

Impact of untransposed 66kV sub-transmission lines on voltage unbalance

The level of voltage unbalance that exists in some interconnected sub-transmission networks in Australia has been observed to be above the code requirements (e.g. 1% in Victoria). There is a perception that these high levels arise as a result of asymmetrical loads. However, the system asymmetry (of lines which are not normally transposed at 66kV, transformers and capacitor banks) also can play a significant part in the lead up to this situation. This lack evidence is partly due to the fact that analysis of asymmetrical systems require careful modelling of system components and lack of widespread availability and use of proper unbalanced load flow programs. To understand the impact of transmission lines in an interconnected network in relation to voltage unbalance, individual and interconnected behaviour of transmission lines have to be closely investigated under balanced supply and loading conditions. The paper presents the methodology and the results of such an investigation carried out employing an interconnected 66kV sub-transmission system as the study case

The Impact of Networking With Knowledge-Intensive Professional Service Firms on Speed to Market and Product Innovativeness

During the new product development (NPD) process, exploitation and exploration are important, especially for small manufacturing firms (SMFs). However, limited resources and a lack of internal knowledge capacity have forced SMFs to work with knowledge-intensive professional service firms (KIPSFs). This article investigates the impact of SMFs’ networks with KIPSFs on the performance of NPD. Using data from 164 SMFs in the northwest of England, this article reveals a linear relationship between firm's product innovativeness and its network with KIPSFs for exploitation, and a curvilinear relationship between firm's speed to market and its network with KIPSFs for exploration. A curvilinear relationship was also found between networks with KIPSFs for ambidexterity and firm's product innovativeness and speed to market. These results lead to several practical implications for networking strategy as each network supports different innovation activities and produces different outcomes

Towards a Collaborative Housing Initiative:The Role of Local Authorities

The different forms of collaborative housing, their possible effects on the housing market and urban development processes have gained importance in housing policy and city development debates in many European countries. A shift towards the acceptance and promotion of more collaborative housing concepts can be observed in numerous cities. However, the precise process of co-creation and co-management can be widely different, depending on the exact relation of stakeholders to each other, the legal, economic and institutional environment, the level of business interests involved, and, very importantly, the role local authorities are willing to play in the process. Following three countries and highlighting cases in each of them – Germany, Hungary and the United Kingdom – the article aims to provide a better understanding of how this co-creation process is influenced by the governance concepts and practices of local authorities, arguing that their support becomes even more essential if financial resources are scarce or national legislation – including the laws regulating the housing market – is not supportive