Fostering Academic Entrepreneurship: New Insights into Incubation from an Evolutionary Perspective

This paper explores obstacles in the growth of academic start-ups and potential policies to overcome these obstacles. To this purpose the focus is on start-ups from Delft University of Technology in the Netherlands as an example. First, by adopting an evolutionary perspective, including notions from resource based theory, obstacles to growth are identified and explored. Second, an explanatory framework of growth is developed and tested using multivariate analysis. The main explanatory variables are lack of marketing knowledge, dealing with uncertainty, use of supporting measures and size of the starting team. Third, these results and structural changes in knowledge production and use serve as an input for the design of a number of policy options from the perspective of co-evolution.

Metropolitan areas in a learning society: ICT-policy in the Netherlands as an example

Metropolitan areas are often seen as suffering from negative externalities of a high density of activities and interaction. At the same time, high densities and a high variation of activities may contribute to a high level of innovation in urban activities. Various societal issues are addressed in policy-making for metropolitan areas today, like a continued economic growth based on a strong competitive position and on sustainability, enhancement of spatial quality in view of revitalisation of old urban areas and increasing of social cohesion, and improvement of accessibility of working and living places. The paper presents the outline and approach of a new study undertaken in the Netherlands to analyse the state and changes of the Randstad and to design trajectories for future development. First an analysis is given of what the Randstad is as a network of cities, mainly based on the recent literature. Three characteristics of the study are then highlighted, i.e. the approach which is a spatial systems approach, the role assigned to technology as a 'driver' of solutions for problems of urban capacity, and the emphasis on urban policy making as management of transition, including self-organisation. Policy issues raised in the Randstad are illustrated with the development of financial services in the two largest cities in the Randstad, i.e. Amsterdam and Rotterdam. Key words: metropolitan areas, urban problems, policy making, financial services

Agglomeration Economies and Heterogeneity within Young Innovative Companies

This paper fits into a new trend in empirical studies on agglomeration economies paying explicit attention to heterogeneity within innovative companies. The paper represents micro-level research, and is based on 21 in-depth case studies in a selected sample of young, innovative companies in the Netherlands. The selection criteria for sampling are derived from resource-based theory, e.g. age, size, corporate position, engaged in services or manufacturing industry. The selected sectors include mechatronics, biotechnology, ICT services and engineering services. In an attempt to identify causal factors and to identify different clusters of companies, we make use of rough set analysis, a method that typically fits small samples and qualitative data. Our research focuses on the importance perceived by company managers of a range of agglomeration advantages for the functioning of the company and on the perceived space in which the company could function satisfactorily. Based on our empirical explorations and given the theoretical positions of the selected case-studies, we arrive at the following findings (1) there is a divide of young, innovative companies into two, namely those facing a high level of importance (in large cities), and those facing a limited importance. In addition, network-based companies that outsource most of their activities to other companies may be facing no importance at all, potentially representing a third category; (2) the strongest factor influencing importance of agglomeration economies is corporate position, e.g. being a corporate spin-off or subsidiary (or not); (3) the spatial influence of agglomeration advantages tends to be broader than large cities only, but there are differences between the individual advantages, e.g. those working in a larger area of central cities, suburban places and medium-sized cities at larger distances, and those exclusively working in large cities or the largest city. Examples of the latter are a pool of young, internationally oriented labour force and direct access to the most advanced telecommunication infrastructure and services. The paper discusses the research design and the empirical outcomes and proposes various new hypotheses to be tested in large scale research.

Patent Strategies of Small High-tech Firms in a Broader Context: the Case of International Learning

The current paper explores the patenting behavior of small high-tech firms in a wider strategic context. It particularly addresses why small high-tech firms apply for patents and what makes them not to do so, and connects this with international learning. The general idea is that small high-tech firms suffer from shortage in resources causing them to be reluctant in application for patents. However, not having protected their inventions by patents may weaken their position in attracting investment capital and in establishing strategic relationships, including learning relationships abroad. Drawing on the literature and on survey data of 100 academic spin-off firms, the influence of patent behavior (among other factors) on adoption of international learning is estimated. It appears that half of the spin-off firms works with inventions protected by patents and that a slightly larger share (60%) has adopted the strategy of international learning. Our explorative analysis using a logit model of international learning indicates that not having protected inventions through patents tends to block learning in international networks.Artykuł porusza istotną rolę ochrony patentowej firmach technologicznych. Autorzy stawiają pytania: Jakie są przesłanki wnioskowania o ochronę patentową w małych firmach? Dlaczego jedne firmy starają się działać w oparciu o ochronę własności przemysłowej a drugie nie?, na które starają się udzielić odpowiedzi w oparciu o badania. Ważnym zagadnieniem poruszanym w rozdziale jest międzynarodowy proces uczenia się firm ochrony własności intelektualnej. Generalna idea publikacji podkreśla niechęć małych firm technologicznych w aplikowaniu o ochronę patentową. Jednakże można wyraźnie zauważyć, w przypadku braku strategii ochrony patentowej, utratę atrakcyjności inwestycyjnej małych firm ukierunkowanych na rynek międzynarodowy. Artykuł opiera się na analizie źródeł wtórnych i pierwotnych. 100 firm akademickich zostało zbadanych by zidentyfikować wpływ strategii ochrony patentowej na zachowanie się na rynku międzynarodowym. Analiza oparta jest o model wykładniczy uczenia się na rynkach międzynarodowych. Połowa małych firm technologicznych chroni swoją własność przemysłowa patentem a wśród nich trzy na pięć firm adoptuje wiedzę z rynków międzynarodowych. Te firmy, które nie stosują ochrony patentowej niewątpliwie blokują sobie możliwości uczenia się na rynkach zagranicznych.Druk materiałów sfinansowano ze środków Ministerstwa Nauki i Szkolnictwa Wyższego w ramach projektu „Kreator innowacyjności – wsparcie innowacyjnej przedsiębiorczości akademickiej”

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.

Knowledge and Innovation in the Indonesian Artisanal Furniture Industry

In developed countries, localized learning in clusters of small and medium-sized firms is seen as beneficial for innovation in these firms. This paper questions whether such a situation is also true for small firms in developing countries. By examining 90 furniture manufacturers in the district of Jepara (Indonesia) we observe knowledge access mainly through one-sided local learning mechanisms, e.g. in-house learning-by-doing and informal contacts with buyers (contractors). This pattern tends to cause a dominance of product innovation (changes in design) and low levels of newness, and points to a lack of advantages from local learning. The major principle behind this is the way in which subcontracting relations are structured. However, the furniture manufacturers in Jepara are willing to connect with global knowledge, but financial obstacles prevent a change. This situation calls for the establishment of centres or renewal of existing centres where global knowledge can be accessed e.g. through the Internet, and support can be given in absorption of the new knowledge.

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.

ICT applications on the road to sustainable urban transport

This paper addresses the impact of information and communication technology (ICT) on sustainable transport by examining the direct application of ICT in urban transport. Following a discussion of various negative externalities of transport, the paper examines the extent to which existing and potential ICT applications in the transport sector can assist in making urban transport more sustainable than it is at present. The focus of analysis is on qualitative and quantitative impacts of several ICT applications on travel behaviour (including fatalities), factors that influence adoption, and impacts of adoption including potentially secondary effects. The literature suggests that ICT innovations are most effective in fatality reduction, but it seems that these are also quite effective in reducing fuel consumption through fuelintelligent vehicles