R&D Productivity and the Organization of Cluster Policy: An Empirical Evaluation of the Industrial Cluster Project in Japan

Industrial clusters have attracted increasing attention as important locations of innovation. Therefore, several countries have started promotion policies for industrial clusters. However, there are few empirical studies on cluster policies. This paper examines the effects of the “Industrial Cluster Project” (ICP) in Japan on the R&D productivity of participants, using a unique dataset of 229 small firms, and discusses the conditions necessary for the effective organization of cluster policies. Different from former policy approaches, the ICP aims at building collaborative networks between universities and industries and supports the autonomous development of existing regional industries without direct intervention in the clustering process. Thus far, the ICP is similar to indirect support systems adopted by successful European clusters. Our estimation results suggest that participation in the cluster project alone does not affect R&D productivity. Moreover, research collaboration with a partner in the same cluster region decreases R&D productivity both in terms of the quantity and quality of patents. Therefore, in order to improve the R&D efficiency of local firms, it is also important to construct wide-range collaborative networks within and beyond the clusters, although most clusters focus on the network at a narrowly defined local level. However, cluster participants apply for more patents than others without reducing patent quality when they collaborate with national universities in the same cluster region.Industrial cluster; University-industry partnership; Small and medium enterprise; R&D; Patent

Management of Cluster Policies: Case Studies of Japanese, German, and French Bio-clusters

This paper provides a detailed comparison of the following five cases of Japanese and European clusters in biotechnology: (1) Kobe Biomedical Innovation Cluster (KBIC) in Kobe (Japan), (2) Fuji Pharma Valley Cluster in Shizuoka Prefecture (Japan), (3) BioM Biotech Cluster in Munich (Germany), (4) BioRegion Rhine-Neckar in Heidelberg (Germany), and (5) Alsace BioValley Cluster in Strasbourg (France). We pay special attention to the cluster policy and its management by each region's core cluster management organization. Information on the focal clusters and the management of cluster policies has been obtained through interviews with the cluster directors and core staff in 2010 and 2011. We find several similarities and differences among the five cases of Japanese and European clusters. We also discuss how the management of cluster policies by the core management organizations may be related with the performance of regional clusters.management, cluster policy, regional cluster, R&D, biotechnology, international comparison

Impact of University Intellectual Property Policy on the Performance of University-Industry Research Collaboration

Despite various expected advantages, university-industry research collaboration (UIC), a relationship between two different worlds, often faces serious difficulties. Thus, the performance of UIC depends on the research partners' strategies to bridge the gaps between them according to the institutional environment. In Japan, UIC has developed rapidly since the late 1990s based on drastic institutional changes regarding universities. We pay special attention to the role of the university intellectual property (IP) policy introduced after 2003 and empirically examine its impact on the performance of UIC projects. A clear and equitable IP policy that can be applied flexibly to the needs of partners would be optimal for a UIC to be efficiently managed. Otherwise, the project might face serious conflicts of interests and low incentive for cooperation. Using a sample of Japanese firms from our original survey, we find that the IP policy of partner universities indeed has a positive and significant impact on various performances of UIC projects, controlling for firm and project characteristics and considering potential selection bias from UIC participation.intellectual property, research collaboration, small business, Japan

A Hidden Role of Public Subsidy in University-Industry Research Collaborations

Contractual and organizational characteristics of university-industry research collaboration (hereafter UIC) are keys to its success. In this respect, government can play essential roles in UIC: Public subsidy for research and development (hereafter R&D) is not only an important financial support for UIC, but may also be a useful channel to promote trust along with contractual agreements and information sharing among the members, which results in effective coordination and thus the success of UIC. However, few empirical studies investigate the latter role of public R&D subsidy in UIC. Thus, using original survey data, this paper empirically examines and find that public R&D subsidy improves coordination in UIC, including trust formation, contractual agreements, and communication quality between the partners as well as commitment by the partners.pubic subsidy, R&D, research collaboration, university, contract, trust

Impact of University Intellectual Property Policy on the Performance of University-Industry Research Collaboration

Despite various expected advantages, university-industry research collaboration (UIC), a relationship between two different worlds, often faces serious difficulties. Thus, the performance of UIC depends on the research partners’ strategies to bridge the gaps between them according to the institutional environment. In Japan, UIC has developed rapidly since the late 1990s based on drastic institutional changes regarding universities. We pay special attention to the role of the university intellectual property (IP) policy introduced after 2003 and empirically examine its impact on the performance of UIC projects. A clear and equitable IP policy that can be applied flexibly to the needs of partners would be optimal for a UIC to be efficiently managed. Otherwise, the project might face serious conflicts of interests and low incentive for cooperation. Using a sample of Japanese firms from our original survey, we find that the IP policy of partner universities indeed has a positive and significant impact on various performances of UIC projects, controlling for firm and project characteristics and considering potential selection bias from UIC participation.university, intellectual property policy, research collaboration, project performance, Japan

Subsidy and networking: The effects of direct and indirect support programs of the cluster policy

Industrial clusters have attracted considerable attention worldwide for their expected contribution to regional innovation. Recently, policymakers in various countries have developed specific cluster policies. However, there exist few empirical studies on cluster policies. In this study, we use original questionnaire data to empirically evaluate the Industrial Cluster Project (ICP) initiated by the Ministry of Economy, Trade and Industry in 2001. We address two research questions on the effect of the ICP: are the project participants who exploit various support programs more successful in alliance/network formation within the cluster than others and which kind of ICP support program contributes to firm performance. In a departure from previous such projects, the ICP aims at the autonomous development of regional industries and includes both direct R&D support and indirect networking/coordination support. The focus of public support for local firms has clearly shifted toward enabling networking and coordination for those who can help themselves Thus, we pay special attention to the differences between direct R&D support and indirect networking/coordination support, which indicate the conditions necessary for the effective organization of cluster policies to improve firm performance. Our empirical evaluation is based on a recent original survey of a sample of 511 firms. We first employ the propensity score and the difference-in-differences estimation to analyze the degree of alliance/network formation before and after participating in the ICP. Thereafter, we use Heckman’s two-step procedure and the negative binomial model to examine the effects of support programs on firm performance. The estimation results suggest that cluster participants who exploit support programs (especially indirect support measures) expand the industry-university-government network after participating in the ICP. Moreover, we find that not every support program contributes to firm performance; firms should therefore select the program that is most aligned with their aims. Indirect support programs have an extensive and strong impact on output, especially innovation outcomes, whereas direct R&D support has only a weak effect.cluster policy, industrial cluster, R&D support, subsidy, networking

R&D Portfolios and Pharmaceutical Licensing

We examine how R&D portfolios of drug pipelines affect pharmaceutical licensing, controlling firm size, diversity, and competitors in R&D and product markets. The data collected comprises 329 license-outs and 434 license-ins closed by 54 Japanese pharmaceutical companies between 1997 and 2007. We pay special attention to stage-specific licensing by dividing the innovation process into an early stage and a late stage. Estimates from the fixed-effect GMM model reveal that drug pipelines significantly affect stage-specific licensing. Particularly, the state of drug pipelines is leveled off by license-outs at the early stage and license-ins at the late stage. Theoretical implications are also discussed.R&D portfolios, licensing, pharmaceutical industry, drug pipelines

Investigating Collaborative R&D Using Patent Data: The Case Study of Robot Technology in Japan

The growing trend of collaborative R&D has been well documented recently, both at a global level and through national and industry case studies. However, there is not yet any consensus regarding the following decisive questions: what are the exact level and evolution of R&D collaboration? What are the benefits of collaboration? What are the motives and determinants of firms engaging in R&D collaboration? In our opinion, these questions have not yet been answered due to the limitations of the data used in most empirical studies (large questionnaire surveys or very specific case studies). The main novelty of this paper is the use of patent data with a focus on information concerning inventors. These data are less biased than questionnaire surveys in terms of the size of the institutions; they are objective and are particularly appropriate for analyzing the benefits of collaboration. As the identification of the institutions to which individual inventors are affiliated is a particularly time consuming task, we focus on robot technology in Japan since the beginning of the 1990s. Our results are as follows. First, although the level of R&D collaboration in RT in Japan increased between 1991 and 2004, especially in the case of collaboration between firms and universities, it still remains low and is dominated by inter-firm collaborations. Second, we cannot definitively reject the conclusion that only the scale of the research has an impact on the quality of patents, when the unit of analysis is the patent; however, we show that there are significant spillover effects of collaboration, which imply an indirect effect on quality. Third, the determinants and motives which encourage firms to decide to engage in collaborative research differ depending on the partner they are collaborating with. In the case of collaboration with other firms, IO theories hold, as the existence of spillovers acts as an incentive. Regarding the collaboration with universities and public research institutes, the validity of capability theory, which emphasizes the quest for complementary knowledge and capability, is confirmed by our empirical investigation.collaborative R&D, robot technology, patent data

The Effect of Participation in Government Consortia on the R&D Productivity of Firms: A Case Study of Robot Technology in Japan

This paper examines the effect of participation in government-sponsored R&D consortia on the R&D productivity of firms in the case of robot technology in Japan. We attempt to provide a new empirical analysis and discussions on the issue of government project evaluation by using indicators of the quality of patents, by investigating the impact of the evolution of government programs, and comparing government-sponsored R&D consortia with collaborative R&D among firms. Using indicators of the quality of patents which enables us to provide an estimation of quality-adjusted research productivity, we find that participation in government programs has a positive impact on the research productivity of participating firms, but the impact of participation became much higher after the design of government programs in this field changed in the late 1990s. Also, we find that participation in government-sponsored consortia has a greater impact on research productivity than participation in collaborative R&D among firms. This may support government involvement in R&D as a coordinator of R&D collaboration.industrial policy, robot thchnology, Japanese innovation system, collaborative R&D