forums vs. fountains - mitweb.mit.edu/sis07/www/safford_slides.pdf · 2007. 5. 3. · forums vs....

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


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.


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


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


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


Global Co-Patenting NetworkGlobal Co-Patenting NetworkPolymers 1976-1980Polymers 1976-1980


Global Co-Patenting NetworkGlobal Co-Patenting NetworkPolymers 2002-2007Polymers 2002-2007


Global Co-Patenting NetworkGlobal Co-Patenting NetworkOptics and Optoelectronics 2002-2007Optics and Optoelectronics 2002-2007


Co-Authoring Network:Co-Authoring Network:AkronAkron


Co-Authoring Network:Co-Authoring Network:RochesterRochester


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.


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.


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


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


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


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.


The Host at the PartyThe Host at the Partyvs. the Life of the Partyvs. the Life of the Party


Akron: Fountain ApproachAkron: Fountain Approach


Rochester: Forum ApproachRochester: Forum Approach


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.


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.


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.””


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.


forums vs. fountains - mitweb.mit.edu/sis07/www/safford_slides.pdf · 2007. 5. 3. · forums vs....

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