Basic Research Collaboration between Firms and University (Star) Scientists

Prior empirical studies (e.g. Gambardella, 1992; Cockburn and Henderson, 1998; Fabrizio, 2009; Leten et al., 2011, with the exception of Lim, 2004) have found positive performance consequences of conducting in-house basic research for firms in the pharmaceutical industry. The primary arguments relate to the deeper insights that basic research can provide to guide the firm in its innovative efforts, and the role of an active involvement in basic research in attracting the most talented researchers to the firm (e.g. Nelson, 1959; Rosenberg, 1990; Salter & Martin, 2001). Furthermore, studies suggest that the benefits of in-house basic research are greater when (basic) research is conducted in collaboration with university scientists (Belderbos et al., 2004; Furman and MacGarvie, 2009). The purpose of this project is to explore in much greater detail the role of university scientists as firms key partners in basic research. First of all, we aim to analyze the conditions for effective collaboration between firms and university star scientists, i.e. leading scientists in particular fields. Building on prior research on firm collaboration with star scientists (e.g. Zucker et al., 2002) and recent insights into obstacles that diminish effective university-industry collaboration (e.g. Bruneel et al., 2010), we argue that bridging the deep scientific capabilities of star scientists and the more applied research of firms is not trivial and is conditional on the modalities of collaboration. First, joint basic research with star scientists who are also active in applied research (in collaboration with the same firm) may imply a performance premium, as these translational stars can assist the firm in the translation of basic research findings into technological applications. Second, the degree of exclusivity of the firms relationship with star scientists will matter. Exclusivity of access to star university scientists provides firms with access to knowledge that is unique and - if they are able to swiftly exploit this knowledge - crucial first mover advantages. Third, we explore to what extent direct collaboration with the star scientists is required or whether indirect linkages provide similar advantages. An important potential indirect effect can occur through the hiring of PhD graduates and post-docs affiliated to the stars lab, a key mechanism for transmitting tacit knowledge (Stephan, 2007) and a vital element in the formation of social networks for the exchange of scientific knowledge between firms and universities (Liebeskind et al., 1996; Murray, 2004). A second aim is to increase our understanding of the geographic dimension in university-firm collaborations in basic research. Collaborations involve the exchange of tacit knowledge which requires direct interactions and geographical closeness for effective transfer (Laursen et al., 2011). Surprisingly, the pattern of academic research collaboration is distinctly international in character (Hoekman et al., 2010). This apparent contradiction may relate to the tension between the benefits of accessing scientifically excellent university partners (including stars) that are geographically dispersed versus the need to preserve scale economies in R&D (Belderbos et al., 2013) and limit the leakage of proprietary information, which favor the centralization of research. We will seek to understand when and why firms choose international collaboration over local collaboration, and analyze their potentially differential performance effects. A final objective of the project is to study how firms organize their internal R&D activities to benefit from collaborations with (top) universities and (star) scientists in basic research. We will examine several dimensions of basic and applied research organization within and across the firms boundaries that may moderate the effects of its collaboration with universities on innovative performance. At the level of individual working relationships, we aim to contribute to the stream of literature on gatekeepers in R&D-intensive organizations (e.g. Allen et al., 1977) up to the recent work on the role of intellectual human capital for innovation (e.g. Rothaermel and Hess, 2007). In particular, we will analyze how firm scientists engaged in basic research implement their gatekeeping role, and the importance of alignment and integration between the firms basic and applied research activities.

Keywords:information and communication technologi, life sciences, basic research, industry-science links, star scientists

Disciplines:Applied economics