UNIVERSITIES IN
NATIONAL
INNOVATION SYSTEMS
by
DAVID C. MOWERY
BHAVEN N. SAMPAT
School of public policy & management
Outline
IntroductionIntroduction
What functions do universities perform within What functions do universities perform within
national innovation systems?national innovation systems?
The role of universities in national innovation The role of universities in national innovation
systems: cross-national datasystems: cross-national data
How does university research affect industrial How does university research affect industrial
innovation?innovation?
From “science push” to “technology From “science push” to “technology
commercialization”commercialization”
conclusionconclusion
The research university plays an important role as a The research university plays an important role as a
source of fundamental knowledge and, occasionally, source of fundamental knowledge and, occasionally,
industrially relevant technology in modern industrially relevant technology in modern
knowledge-based -based economies.
Governments throughout the industrialized world Governments throughout the industrialized world
have launched numerous initiatives since the 1970s to have launched numerous initiatives since the 1970s to
link universities to industrial innovation more universities to industrial innovation more closely.
Many of these initiatives seek to spur localMany of these initiatives seek to spur local
economic development based on university research. economic development based on university research.
Science parks, business incubators, seed capital, parks, business incubators, seed capital, etc.
Rather than "ivory towers" devoted to the pursuit of Rather than "ivory towers" devoted to the pursuit of
knowledge for its own sake, a growing number of knowledge for its own sake, a growing number of
industrial-economy and developing-economy industrial-economy and developing-economy
governments seek to use universities as instruments governments seek to use universities as instruments
for knowledge-based economic development and for knowledge-based economic development and
.
In the "knowledge-based economy", national systems In the "knowledge-based economy", national systems
of higher education can be a strategic asset, if links of higher education can be a strategic asset, if links
with industry are strengthened and the transfer of with industry are strengthened and the transfer of
technology enhanced and enhanced and accelerated.
Universities throughout the OECD also have been affected by Universities throughout the OECD also have been affected by
tighter constraints on public fundingtighter constraints on public funding since 1970. Growth in since 1970. Growth in
public funding for higher education has slowed in a number of public funding for higher education has slowed in a number of
OECD member member states.
Faced with Faced with increased competition for research fundingincreased competition for research funding, and , and
continuing cost pressurescontinuing cost pressures within operating budgets during the within operating budgets during the
past two decades, some universities have become more past two decades, some universities have become more
aggressive and "entrepreneurial" in seeking new sources of aggressive and "entrepreneurial" in seeking new sources of
.
Both Both internalinternal and and externalexternal factors thus have led many nations' factors thus have led many nations'
universities to promote stronger linkages with industry as a universities to promote stronger linkages with industry as a
means of strengthening their contributions to innovation and means of strengthening their contributions to innovation and
economic growth.
functions do universities perform
within national innovation systems?
the definition of “national innovation
systems”: the institutions and actors that affect
the creation, development, and diffusion of
innovations.
Universities are widely cited as critical
institutional actors in national innovation
systems.
Universities throughout the OECD now combine the Universities throughout the OECD now combine the
functions of education and research. This joint functions of education and research. This joint
production of trained personnel and advanced production of trained personnel and advanced
research may be more effective than specialization in research may be more effective than specialization in
one or the other or the other activity.
The economically important "outputs" of university The economically important "outputs" of university
research have come in different forms: research have come in different forms: scientific and scientific and
technological informationtechnological information, , equipment and equipment and
instrumentationinstrumentation,, skills or human capital skills or human capital,, networks of networks of
scientific and technological capabilitiesscientific and technological capabilities,, prototypes prototypes
for new products and new products and processes.
One influential conceptualization of the role of One influential conceptualization of the role of
academic research within national innovation systems academic research within national innovation systems
and economies was the so-called "and economies was the so-called "linear modellinear model" of " of
innovation widely associated with innovation widely associated with Vannevar BushVannevar Bush
and his famous "blueprint" for the US post-1945 and his famous "blueprint" for the US post-1945
R&D system, R&D system, Science: Science: The The Endless Frontier.
Bush argued for expanded public funding for basic Bush argued for expanded public funding for basic
research within US universities as a critical research within US universities as a critical
contributor to economic growth, and argued that contributor to economic growth, and argued that
universities were the most appropriate institutional universities were the most appropriate institutional
locus for basic for basic research.
This "linear model" of the innovation process
asserted that funding of basic research was
both necessary and sufficient to promote
innovation.
Yet another view of the role of university
research focuses on the contrasting "norms" of
academic and industrial research.
For academic researchers, professional recognition For academic researchers, professional recognition
and advancement depend crucially on being first to and advancement depend crucially on being first to
disclose and publish their result. disclose and publish their result.
Industrial innovation, by contrast, relies more heavily Industrial innovation, by contrast, relies more heavily
on secrecy and limitations to the disclosure of on secrecy and limitations to the disclosure of
research results.
The significance of these "cultural differences" for The significance of these "cultural differences" for
the conduct of research may assume greater the conduct of research may assume greater
significance in the face of closer links between significance in the face of closer links between
university and industrial and industrial researchers.
Another conceptual framework that has been applied Another conceptual framework that has been applied
recently to descriptions of the role of academic recently to descriptions of the role of academic
research in "post-modern" industrial societies is the research in "post-modern" industrial societies is the
""Mode 2Mode 2" concept of research." concept of research.
"Mode 2" research is associated with a more "Mode 2" research is associated with a more
interdisciplinary, "networked" innovation system, in interdisciplinary, "networked" innovation system, in
contrast to the previous system in which major contrast to the previous system in which major
corporate or academic research institutions were less corporate or academic research institutions were less
closely linked with other linked with other institutions.
Still another conceptual framework for
analyzing the changing position of universities
within national innovation systems is the
"Triple Helix".
the triple helix emphasizes the increased
interaction among these institutional actors in
industrial economies' innovation systems.
The "The "national systemsnational systems," "," "Mode Mode 22," ," and "and "triple helixtriple helix" "
frameworks for conceptualizing the role of the frameworks for conceptualizing the role of the
research university within the innovation processes of research university within the innovation processes of
knowledge-based economies emphasize the knowledge-based economies emphasize the
importance of strong links between universities and importance of strong links between universities and
other institutional actors in these institutional actors in these economies.
What is lacking in all of these frameworks, however, What is lacking in all of these frameworks, however,
is a clear set of criteria by which to assess the strength is a clear set of criteria by which to assess the strength
of such linkages and a set of indicators to guide the of such linkages and a set of indicators to guide the
collection of of data.
role of universities in national
innovation systems: cross-national data
Data on the Structure
of National Systems
Through out the twentieth century, US universities Through out the twentieth century, US universities
retained great autonomy in their administrative great autonomy in their administrative policies.
Rosenberg (1999) and Ben-David (1968) argue that this Rosenberg (1999) and Ben-David (1968) argue that this
lack of central control forced American universities to be lack of central control forced American universities to be
more "entrepreneurial" and their research and curricula to more "entrepreneurial" and their research and curricula to
be more responsive to changing socio-economic demands be more responsive to changing socio-economic demands
than their European their European counterparts.
Enrollment data indicate that the US system enrolled Enrollment data indicate that the US system enrolled
a larger fraction of the 18-22-year-old population a larger fraction of the 18-22-year-old population
than those of any European nations throughout the than those of any European nations throughout the
1900-1945 -1945 period.
These contrasts in enrollment rates are reflected in These contrasts in enrollment rates are reflected in
enduring differences between the United States and enduring differences between the United States and
European nations in the shares of their populations European nations in the shares of their populations
with university education. with university education.
HHowever, the large output of university degreeholders owever, the large output of university degreeholders
in the United States includes a significantly smaller in the United States includes a significantly smaller
share of natural science and engineering share of natural science and engineering
.
The limited data on the role of national higher education The limited data on the role of national higher education
systems as R&D performers highlight other cross-national systems as R&D performers highlight other cross-national
contrasts, including differences in contrasts, including differences in their significance within thetheir significance within the
overall national R&D enterprise, their scale, their roles as overall national R&D enterprise, their scale, their roles as
employers of researchers, and their relationships with industryemployers of researchers, and their relationships with industry..
Cross-national data highlighting differences in the Cross-national data highlighting differences in the
"division of labor" between universities and "division of labor" between universities and
government laboratories in basic research indicate government laboratories in basic research indicate
that the higher education sector's share of basic that the higher education sector's share of basic
research performance isresearch performance is similar similar in most Western in most Western
European economies and the United economies and the United States.
But a key But a key differencedifference between the United States and between the United States and
most European countries for which data are available most European countries for which data are available
is that a relatively low share of basic research outside is that a relatively low share of basic research outside
the academic sector in the United States is performed the academic sector in the United States is performed
by the government, and a relatively high share by by the government, and a relatively high share by
.
Although the US higher education system is larger in Although the US higher education system is larger in
absolute terms than those of other OECD member states, absolute terms than those of other OECD member states,
US universities' performance of R&D in fact accounts for US universities' performance of R&D in fact accounts for
a smaller share of GDP than is true of Sweden, France, a smaller share of GDP than is true of Sweden, France,
Canada, the Netherlands, and , the Netherlands, and Norway.
Comparison of the share of "employed researchers" in Comparison of the share of "employed researchers" in
various nations' R&D systems that work in various nations' R&D systems that work in
universities reveals that the United States and Japan universities reveals that the United States and Japan
rank very low, reflecting the fact that a much higher rank very low, reflecting the fact that a much higher
share of researchers in both nations are employed by share of researchers in both nations are employed by
industry rather than higher education. industry rather than higher education.
In 1997, the last year for which reasonably complete In 1997, the last year for which reasonably complete
data are available, per cent of researchers were data are available, per cent of researchers were
employed by industry in the United by industry in the United States.
Other qualitative data from the OECD 2002 study of Other qualitative data from the OECD 2002 study of
"science-industry relationships “compare the labor "science-industry relationships “compare the labor
mobility and other "network relationships“ linking mobility and other "network relationships“ linking
universities and and industry.
The annual flow of university researchers to The annual flow of university researchers to
industrial employment, another potentially important industrial employment, another potentially important
channel for knowledge exchange, is significantly channel for knowledge exchange, is significantly
higher than the EU average in Belgium, Finland, higher than the EU average in Belgium, Finland,
Germany, Sweden, the UK, and the United , Sweden, the UK, and the United States.
Although universities serve similar functions in most Although universities serve similar functions in most
industrial economies, it suggest that their importance industrial economies, it suggest that their importance
in training scientists and engineers and in research in training scientists and engineers and in research
performance differs considerably among OECD performance differs considerably among OECD
member nations. member nations.
These differences reflect cross-national differences in These differences reflect cross-national differences in
industry structure, especially the "high-technology" industry structure, especially the "high-technology"
industries as industries as electronics electronics or or information technologyinformation technology
that are highly research-intensive and rely heavily on that are highly research-intensive and rely heavily on
private-sector sources for R&D -sector sources for R&D finance.
Trends in University-Industry Recent Trends in University-Industry
LinkagesLinkages
Longitudinal data reveal an increase in co-authorship Longitudinal data reveal an increase in co-authorship
between university and industry researchers in many between university and industry researchers in many
of these nations. of these nations.
this evidence on increased co-authorship may indicate this evidence on increased co-authorship may indicate
some growth, rather than decline, in the role of some growth, rather than decline, in the role of
universities as centers for knowledge production universities as centers for knowledge production
within national innovation systemswithin national innovation systems
the 1980s were characterized by cuts in UK central the 1980s were characterized by cuts in UK central
government spending on higher education, and the 1990s were government spending on higher education, and the 1990s were
a period of more aggressive governmental promotion of a period of more aggressive governmental promotion of
university-industry collaboration and technology transfer. university-industry collaboration and technology transfer.
In other words, the growth in co-authorship measured by these In other words, the growth in co-authorship measured by these
scholars appears to have occurred without any specific scholars appears to have occurred without any specific
encouragement (beyond funding cuts) from government encouragement (beyond funding cuts) from government
.
Overall, these studies present a rich descriptive and a relatively Overall, these studies present a rich descriptive and a relatively
weak explanatory analysis of an important type of university-weak explanatory analysis of an important type of university-
industry collaboration, inasmuch as they provide little industry collaboration, inasmuch as they provide little
explanation for trends or cross-national for trends or cross-national differences.
does university research
affect industrial innovation?
The quantitative indicators discussed in the previous The quantitative indicators discussed in the previous
section provide some information on the structure of section provide some information on the structure of
universities within the OECD and their links with universities within the OECD and their links with
national innovation systems. But these data shed very national innovation systems. But these data shed very
little light on the characteristics of the knowledge little light on the characteristics of the knowledge
flows between university research and the industrial flows between university research and the industrial
innovation process.
All of these studies emphasize the significance
of interindustry differences in the relationship
between university and industrial innovation.
University research contributed to technological advances University research contributed to technological advances
by enhancing knowledge of the fundamental physics and by enhancing knowledge of the fundamental physics and
chemistry underlying manufacturing processes and chemistry underlying manufacturing processes and
product innovation, an area in which training of scientists product innovation, an area in which training of scientists
and engineers figured prominently, and experimental and engineers figured prominently, and experimental
.
Virtually all of the fields of university research that were Virtually all of the fields of university research that were
rated as "important" or "very important" for their rated as "important" or "very important" for their
innovative activities by survey respondents in both innovative activities by survey respondents in both
studies were related to engineering or applied sciencesstudies were related to engineering or applied sciences
Virtually all of the fields of university research that Virtually all of the fields of university research that
were rated as "important" or "very important" for were rated as "important" or "very important" for
their innovative activities by survey respondents in their innovative activities by survey respondents in
both studies were related to engineering or applied both studies were related to engineering or applied
.
Instead, these results reflect the fact that the effects Instead, these results reflect the fact that the effects
on industrial innovation of basic research findings in on industrial innovation of basic research findings in
such areas as physics, mathematics, and the physical such areas as physics, mathematics, and the physical
sciences are realized only sciences are realized only after a considerable lagafter a considerable lag..
the results of "public research" performed in the results of "public research" performed in
government labs or universities were used more government labs or universities were used more
frequently by US industrial firms (on average, in frequently by US industrial firms (on average, in
per cent of industrial R&D projects) than prototypes per cent of industrial R&D projects) than prototypes
emerging from these external sources of researchemerging from these external sources of research
For most industries, patents and licenses involving For most industries, patents and licenses involving
inventions from university or public laboratories were inventions from university or public laboratories were
reported to be of very little importance, compared reported to be of very little importance, compared
with publications, conferences, informal interaction with publications, conferences, informal interaction
with university researchers, and university researchers, and consulting.
“science push” to
“technology commercialization”
since 1980 a number of industrialized
countries have implemented or considered
policies to strengthen "linkages" between
universities and industry, in order to enhance
the contributions of university-based research
to innovation and economic performance.
and Regional Economic Universities and Regional Economic
DevelopmentDevelopment
In many OECD countries, efforts to increase the In many OECD countries, efforts to increase the
national economic returns from public investments in national economic returns from public investments in
university research have attempted to stimulate the university research have attempted to stimulate the
creation of "regional clusters" of innovative firms creation of "regional clusters" of innovative firms
around universities. around universities.
These undertakings seek to stimulate regional These undertakings seek to stimulate regional
economic development and agglomeration via economic development and agglomeration via
facilitating the creation of “spin-off” firms to facilitating the creation of “spin-off” firms to
commercialize university university technologies.
These policy initiatives are motivated by the
high-technology regional clusters in the United
States, notably Silicon Valley in California
and Route 128 in the Boston area.
Both of these high-technology clusters have a
spawned a large number of new firms and have
major research universities in their midst.
But little evidence supports the argument that
the presence of universities somehow "causes"
the development of regional high-technology
agglomerations.
Efforts to replicate the "Silicon Valley model"
in other economies have proven difficult and
the results of these efforts have been mixed.
National and local governments in many
OECD countries have attempted to stimulate
the formation of these clusters via funding for
"science parks"
Despite the widespread interest in science
parks, there is little evidence that they
positively affect universities' contributions to
innovation or spur regional economic
development.
Silicon Valley's history as a center for new-
firm formation and innovation dates back to
the early decades of the twentieth century,
suggesting that much of the region's innovative
"culture" developed over a much longer period
of time and predates the ascent to global
research eminence of Stanford University.
the massive increase in federal defense
spending after 1945 as a catalyst for the
formation of new high-technology firms in the
region.
In this view, the presence of leading research
universities may have been necessary, but was
by no means sufficient, to create Silicon
Valley during the 1950s and 1960s.
The US experience suggests that the emergence of The US experience suggests that the emergence of
such agglomerations is a matter of such agglomerations is a matter of contingencycontingency, , path-path-
dependencedependence, and (most importantly) , and (most importantly) the presence of the presence of
other supporting policiesother supporting policies that may have little to do that may have little to do
with university research or the encouragement of with university research or the encouragement of
university-industry -industry linkages.
The policy initiatives in the United States and other The policy initiatives in the United States and other
OECD economies that seek to use university research OECD economies that seek to use university research
and "science parks" to stimulate regional economic and "science parks" to stimulate regional economic
development suffer from a deficiency that is common development suffer from a deficiency that is common
to many of the other recent efforts to stimulate to many of the other recent efforts to stimulate
university-industry linkages in OECD -industry linkages in OECD countries.
Patenting the Results of Publicly Patenting the Results of Publicly
Funded Academic ResearchFunded Academic Research
Origins of the Bayh-Dole ActOrigins of the Bayh-Dole Act
Public universities were more heavily represented in Public universities were more heavily represented in
patenting than private universities during the 1925-45 patenting than private universities during the 1925-45
.
These characteristics of university patenting began to These characteristics of university patenting began to
change after 1970, as private universities expanded change after 1970, as private universities expanded
their share of US university share of US university patenting.
Lobbying by US research universities active in Lobbying by US research universities active in
patenting was one of several factors behind the patenting was one of several factors behind the
passage of the Bayh-Dole Act in of the Bayh-Dole Act in 1980.
The Bayh-Dole Patent and Trademark Amendments The Bayh-Dole Patent and Trademark Amendments
Act of 1980 provided blanket permission for Act of 1980 provided blanket permission for
performers of federally funded research to file for performers of federally funded research to file for
patents on the results of such research and to grant patents on the results of such research and to grant
licenses for these patents, including exclusive licenses for these patents, including exclusive
licenses, to other , to other parties.
The passage of the Bayh-Dole Act was one part of a The passage of the Bayh-Dole Act was one part of a
broader shift in US policy toward stronger intellectual broader shift in US policy toward stronger intellectual
property rights.
the Bayh-Dole Act assumes that restrictions on
dissemination of the results of many R&D
projects will enhance economic efficiency by
supporting their commercialization.
In many respects, the Bayh-Dole Act is the
ultimate expression of faith in the "linear
model" of innovation-if basic research results
can be purchased by would-be developers,
commercial innovation will be accelerated.
The Eflects of Bayh-Dole
Universities increased their share of patenting from less than Universities increased their share of patenting from less than
per cent in 1963 to nearly 4 per cent by per cent in 1963 to nearly 4 per cent by 1999.
During the late 1990s and early twenty-first century, During the late 1990s and early twenty-first century,
many commentators and policy makers portrayed the many commentators and policy makers portrayed the
Bayh-Dole Act as a critical catalyst to growth in US Bayh-Dole Act as a critical catalyst to growth in US
universities' innovative and economic contributions. universities' innovative and economic contributions.
Indeed, the OECD went so far as to argue that the Indeed, the OECD went so far as to argue that the
Bayh-Dole Act was an important factor in the Bayh-Dole Act was an important factor in the
remarkable remarkable growth of incomesgrowth of incomes, , employmentemployment, and , and
productivityproductivity in the US economy of the late 1990s. in the US economy of the late 1990s.
These "assessments" of the effects of the Bayh--Dole Act also These "assessments" of the effects of the Bayh--Dole Act also
fail to consider any potentially negative effects of the Act on fail to consider any potentially negative effects of the Act on
US university research or innovation in the broader university research or innovation in the broader economy.
Some scholars have suggested that the "commercialization Some scholars have suggested that the "commercialization
motives " created by Bayh-Dole could motives " created by Bayh-Dole could shift the orientation of shift the orientation of
university research away from "basic" and towards university research away from "basic" and towards
"applied" research"applied" research..
A second potentially negative effect of increased university A second potentially negative effect of increased university
patenting and licensing is the potential patenting and licensing is the potential weakening of weakening of
academic researchers' commitments to "open science,"academic researchers' commitments to "open science,"
leading to publication delays, secrecy, and withholding of data leading to publication delays, secrecy, and withholding of data
and materials.
International "Emulation" of the Bayh-
Dole Act
A number of other OECD governments pursue A number of other OECD governments pursue
policies that closely resemble the Bayh-Dole that closely resemble the Bayh-Dole Act.
these initiatives focus narrowly on the these initiatives focus narrowly on the
"deliverable" outputs"deliverable" outputs of university research, and of university research, and
typically typically ignoreignore the effects of patenting and licensing the effects of patenting and licensing
on the other, more economically important, channels on the other, more economically important, channels
through which universities contribute to innovation through which universities contribute to innovation
and economic economic growth.
such emulation is based on a misreading of the such emulation is based on a misreading of the
limited evidence concerning the effects of Bayh-Dole limited evidence concerning the effects of Bayh-Dole
and on misunderstanding of the factors that have and on misunderstanding of the factors that have
encouraged the long-standing and relatively close encouraged the long-standing and relatively close
relationship between US universities and industrial relationship between US universities and industrial
.
emulation of the Bayh-Dole Act is emulation of the Bayh-Dole Act is insufficientinsufficient and and
perhaps even perhaps even unnecessaryunnecessary to stimulate higher levels to stimulate higher levels
of university-industry interaction and technology of university-industry interaction and technology
.
6. Conclusion
Universities play important roles in the
"knowledge-based" economies of modern
industrial and industrializing states as sources
of trained "knowledge workers" and ideas
flowing from both basic and more applied
research activities.
But conventional economic approaches to the
analysis of institutions are very difficult to
apply to universities, for several reasons
First, with the exceptions of the US and British
university systems, inter-university
"competition" has been limited in most
national systems of higher education.
Second, analyzing universities as economic
institutions requires some definition of the
objectives pursued by individual universities.
The development of useful theoretical or conceptual The development of useful theoretical or conceptual
tools or models for analyzing universities as tools or models for analyzing universities as
economic or other institutions within knowledge-economic or other institutions within knowledge-
based economies is seriously hampered by based economies is seriously hampered by the lack of the lack of
datadata on the roles of universities that enable on the roles of universities that enable
comparisons across time or across national innovation comparisons across time or across national innovation
.
The absence of broader The absence of broader longitudinal and cross-longitudinal and cross-
nationally comparable indicatorsnationally comparable indicators of university- of university-
industry interaction thus impedes both the industry interaction thus impedes both the
formulation and the evaluation of and the evaluation of policies.
Thank you！
