forums vs. fountains - mitweb.mit.edu/sis07/www/safford_slides.pdf · 2007. 5. 3. · forums vs....
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Forums vs. Fountains:Forums vs. Fountains:The Evolution of KnowledgeThe Evolution of Knowledge
Networks in Akron and RochesterNetworks in Akron and Rochester
Sean SaffordSean SaffordUniversity of ChicagoUniversity of Chicago
Graduate School of BusinessGraduate School of Business
The QuestionThe Question
How can local economies prosper in aHow can local economies prosper in arapidly changing, increasingly openrapidly changing, increasingly openglobal economy?global economy?
Universities, Innovation and Local Competitiveness Universities, Innovation and Local Competitiveness © Sean Safford 2006© Sean Safford 2006
Typology ofTypology ofRegional TrajectoriesRegional Trajectories
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
Silicon Valleys of theSilicon Valleys of theSecond Industrial RevolutionSecond Industrial Revolution
* Rochester* Akron
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
Silicon Valleys of theSilicon Valleys of theSecond Industrial RevolutionSecond Industrial Revolution
By the 1980s, majorBy the 1980s, majorcompanies had movedcompanies had movedmanufacturing to lowermanufacturing to lowercost regionscost regions
Broadened research andBroadened research anddevelopment beyond localdevelopment beyond localareaarea
Shifted R&D towardShifted R&D towardadvanced materials andadvanced materials andapplications.applications.
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
Global PatentsGlobal PatentsOptics and Polymers 1976-2002Optics and Polymers 1976-2002
0
20000
40000
60000
80000
100000
1976-1980 1981-1985 1986-1990 1991-1995 1996-2002
Other
Europe
Asia
Southern
MidWest
Northeast
Rochester
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
0
20000
40000
60000
80000
100000
1976-1980 1981-1985 1986-1990 1991-1995 1996-2002
Other
Europe
Asia
Southern
Midwest
Northern
Akron
Optics Polymers
Universities, Innovation and Local Competitiveness Universities, Innovation and Local Competitiveness © Sean Safford 2006© Sean Safford 2006
Fears of a Fears of a ‘‘Flat WorldFlat World’’
“There is nothing that guaranteesthat Americans or West Europeanswill continue leading the way [ininnovation].”
• Thomas Friedman. It’s a FlatWorld After All. New York Times3 April 2005
Two Competing ScenariosTwo Competing Scenarios
Hollowing outHollowing out AgglomerationAgglomeration
Universities, Innovation and Local Competitiveness Universities, Innovation and Local Competitiveness © Sean Safford 2006© Sean Safford 2006
Global Co-Patenting NetworkGlobal Co-Patenting NetworkPolymers 1976-1980Polymers 1976-1980
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
Global Co-Patenting NetworkGlobal Co-Patenting NetworkPolymers 2002-2007Polymers 2002-2007
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
Global Co-Patenting NetworkGlobal Co-Patenting NetworkPolymers 2002-2007Polymers 2002-2007
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
Global Co-Patenting NetworkGlobal Co-Patenting NetworkOptics and Optoelectronics 2002-2007Optics and Optoelectronics 2002-2007
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
Co-Authoring Network:Co-Authoring Network:AkronAkron
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
Co-Authoring Network:Co-Authoring Network:RochesterRochester
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
The problem restated:The problem restated:institutional lock-ininstitutional lock-in
Long line of research suggests that the issue hasLong line of research suggests that the issue hasto do with institutional lock-in (Herrigel 1997;to do with institutional lock-in (Herrigel 1997;Grabher 1997; Grabher 1997; KrugmanKrugman 1996). Mature 1996). Matureindustrial regions cannot regenerate out ofindustrial regions cannot regenerate out ofexisting capabilities because institutional lock-inexisting capabilities because institutional lock-inwill impede the development of institutionswill impede the development of institutionsconsistent with environmental needs.consistent with environmental needs.
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
Stark and Grabher: Stark and Grabher: BricolageBricolage and andPost-Communist TransformationPost-Communist Transformation
•• Actors faced with acute economic crisis withholdActors faced with acute economic crisis withholdresource investments and engage in provisionalresource investments and engage in provisionalmoves.moves.
•• Localized processes of sense-making withLocalized processes of sense-making withspecific interlocutors result in provisionalspecific interlocutors result in provisionalresource investment accompanied byresource investment accompanied byadjustment of organizational identities.adjustment of organizational identities.
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
AnnealingAnnealing
A process used toA process used toremove internal stressesremove internal stressesin metals, alloys, orin metals, alloys, orglasses making theglasses making thematerial less brittlematerial less brittleusually by re-heating andusually by re-heating andthen cooling in athen cooling in aspecialized furnace.specialized furnace.
Disentangling Entrepreneurship and Innovation:Disentangling Entrepreneurship and Innovation:Toward an Innovation Ecosystem ApproachToward an Innovation Ecosystem Approach
Second Industrial RevolutionSecond Industrial RevolutionInnovation EcosystemsInnovation Ecosystems
Industrial R&D
SupplierSupplier
SupplierSupplier
SupplierSupplier
Design
Goo
ds
University
People
Federal (esp military)
$ $
$
Local& State
Gov
LocalBanks$
Civil Society
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
What has changed?What has changed?
•• Large companies: global strategicLarge companies: global strategicresearch partnershipsresearch partnerships
•• Suppliers: need design capabilitySuppliers: need design capability
• Careers unfold across multipleemployers and regions
• Small companies need access to patient,knowledgeable capital and specializedequipment
• Hollowing out of civic power structures
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
What has changed?What has changed?
Universities roles have expanded toUniversities roles have expanded tooccupy the central role in the localoccupy the central role in the localinnovation ecosystem.innovation ecosystem.
• Generate new innovations• Educate at all levels of the labor market• Spin-out new companies• Open access to specialized equipment• Investments in property and high-growth
ventures• Facilitate industry groups and lead civil
society response
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
The Social CapitalThe Social Capitalof the Universityof the University
Universities occupy aUniversities occupy auniquely central role inuniquely central role inthe networks of trustthe networks of trustwhich define thewhich define thevarious spheres of thevarious spheres of theinnovation ecosystem.innovation ecosystem.
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
The Host at the PartyThe Host at the Partyvs. the Life of the Partyvs. the Life of the Party
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
Akron: Fountain ApproachAkron: Fountain Approach
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
Rochester: Forum ApproachRochester: Forum Approach
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems
Knowledge:Knowledge:SemrockSemrock
Founder: Promising Assistant ProfessorFounder: Promising Assistant Professorfrom the University of Rochesterfrom the University of Rochester
Technology: world leading optical thinTechnology: world leading optical thinfilm technology, layers of material thatfilm technology, layers of material thatsort light in minute ways.sort light in minute ways.
NoNo intellectual property licensed with or intellectual property licensed with orfrom the University.from the University.
““I was very familiar with optical thin filmI was very familiar with optical thin filmtechnology. I had a couple of studentstechnology. I had a couple of studentsworking on that stuff. We didnworking on that stuff. We didn’’t maket makethe kinds of structures we make here. Itthe kinds of structures we make here. Itwas more intellectual connections than itwas more intellectual connections than itwas realizationwas realization…”…”
Absorbing, Unlocking and Annealing:Recapturing Innovation in Mature Industrial Regions
Knowledge:Knowledge:Bausch & Lomb and CAT-EISBausch & Lomb and CAT-EIS
Ian Cox, director of research.Ian Cox, director of research.
Longstanding philanthropic relationship withLongstanding philanthropic relationship withthe university; no incentives or interest inthe university; no incentives or interest inmoving beyond that.moving beyond that.
““And so you know we talk about the AllianceAnd so you know we talk about the Alliancesometimes. That was a nice name forsometimes. That was a nice name forpublicity purposes in press releases.publicity purposes in press releases.””
[Became a real] alliance because it sort of[Became a real] alliance because it sort ofbrings together both Bausch & Lomb and thebrings together both Bausch & Lomb and theclinical side which is the Department ofclinical side which is the Department ofOphthalmology, but also the optical sideOphthalmology, but also the optical sidewhich is the which is the CenterCenter for Visual Science so for Visual Science sothatthat’’s where the tie in with the s where the tie in with the CenterCenter for forElectronic Imaging Systems (CEIS) comes in.Electronic Imaging Systems (CEIS) comes in.
Absorbing, Unlocking and Annealing:Recapturing Innovation in Mature Industrial Regions
Labor market:Labor market:Rochester PhotonicsRochester Photonics
Prominent University of RochesterProminent University of RochesterProfessor with an entrepreneurial bentProfessor with an entrepreneurial bent
Technology: minimizing light scatter inTechnology: minimizing light scatter inphotolithographyphotolithography
Acquired by Corning Incorporated inAcquired by Corning Incorporated in19981998
Only hires experienced people; poachedOnly hires experienced people; poachedmainly from Kodak and Corning. Butmainly from Kodak and Corning. Butthe connections were made (reallythe connections were made (reallymaintained) through university ties.maintained) through university ties.
Absorbing, Unlocking and Annealing:Recapturing Innovation in Mature Industrial Regions
Financial:Financial:TrilliumTrillium
Venture capital fund with moneyVenture capital fund with moneyfrom High Wealth Individuals,from High Wealth Individuals,Monroe County and the UniversityMonroe County and the Universityof Rochester.of Rochester.
““We have invested in threeWe have invested in threecompanies: an orphaned technologycompanies: an orphaned technologyout of Kodak which we brought toout of Kodak which we brought tothe photonics cluster guys and theythe photonics cluster guys and theysaid theresaid there’’s probably somethings probably somethingthere. They bought it to us and itthere. They bought it to us and itdeveloped and we invested.developed and we invested.””
Absorbing, Unlocking and Annealing:Recapturing Innovation in Mature Industrial Regions
ConclusionConclusion
Institutional change as a process ofInstitutional change as a process ofidentity adjustment (annealing)identity adjustment (annealing)which happens through interaction inwhich happens through interaction inthe process of problem solving.the process of problem solving.
Universities (and other keyUniversities (and other keyintermediaries) are in a uniqueintermediaries) are in a uniqueposition to facilitate theseposition to facilitate theseinteractions due to their socialinteractions due to their socialcapital.capital.
Absorbing and Unlocking:Absorbing and Unlocking:Diversifying Innovation EcosystemsDiversifying Innovation Ecosystems