The Triple Helix and theDynamics of Innovation

Henry Etzkowitz

Science Policy Institute

State University of New York

henryetzkowitz@earthlink.net

ASSISTED LINEAR • start from research

question in discipline• Transfer mechanisms:

e.g. Incubator, TTO• applied research• product development

REVERSE LINEAR• start from problem in

industry or larger society

• find technology; adapt for solution

• conduct new research

Interactive Innovation: Initiatives from both sides

The Land Grant Tradition

• Bottom-Up pressure for government to act• Founding of University of Connecticut in 1816• States Rights Activists leave US Congress in 1862• Morill Act “Land Grant” passed: joint federal/state

support for universities that put knowledge to use• MIT founded in 1864 with 1/3 of Massachusetts

land grant • 2000: Land grants compete for basic research

funds

The Triple Helix Model

• Movement From Separate or Encompassing to Overlapping Institutional Spheres

• Taking the role of the other e.g., university forming firms

• From bilateral to trilateral interactions:

“double helixes” (university-industry; government-university; industry-government to “triple helixes

U-I-G

Statist Triple Helix

Government

Industry Academia

Statist Triple Helix

• Government dominates other spheres

• Top-down bureaucratic co-ordination

• Large project mentality

• Industry: national champions

• University: primarily teaching institution

State

Industry Academia

Laissez-faire Triple Helix

Laissez-Faire Triple Helix Separate Spheres

• University: basic research and human resource provider

• Industry: Firms linked by market

• Government: limited to addressing market failures

• Individualistic mentality; heroic entrepreneur

• Interface Units Across strong boundaries

Relation of State to Corporations

• Dartmouth College Case: 1819 Supreme Court Decision limited right of government to change university charter

• Subsequently extended to corporations

State

Industry Academia

Indirect Industrial Policy: the Federal Government Goes Through the University to Reach Industry;

State

Industry Academia

Civil Society is the Foundation Stone of the Triple Helix

State

Industry Academia

Hybrid Organizations and Actions e.g. Incubator Movements

Transition to Overlapping Spheres

Multiple Bi-lateral Collaborations

• Industry: Strategic Alliances; Co-opetiton

• Joint Research Centers (U-I-G)

• Conflict of Interest Controversies over

Multiple Institutional and Individual roles:

e.g. University: teaching, research, third mission

University MissionsThe First Academic Revolution

late 19th century; ongoing

The Research University

research groups and centers

The Second Academic Revolution

20th century; ongoing

The Entrepreneurial University

new firms and networks

Bi-Evolution of University Missions

• Teaching: Individuals and Organizations

• Research: Individual and Group

• Economic and Social Development:

Companies and Region

The Changing Role of the University

• Opposition to federal research funding dissipated by World War II experience

• Technology Transfer Universalized: The Bayh Dole Act of 1980

• University Foundations create organizational flexibility

• The university as venture capitalist

Regional Innovation Models

• Regional Innovation System:

All elements in place

• Regional Innovation Environment:

Lacking some elements- gaps

Regional Development Strategies

1. Improve the Business Climate lower taxes2. Incentivize relocation Attract firms from other regions Zero Sum Game3. Form new firms based on knowledge Utilize academic resources Increasing Returns

Regional Innovation Organizer (RIO)

• Takes the leadership role in transition:

• New England Council: university led

• Joint Venture Silicon Valley: industry led

• VINNOVA: government led

Knowledge Space

• Universities and Research Institutes

• Underutilized Potential

• Research Projects with economic and social relevance

Consensus Space

• Fora to Generate Ideas and Strategies

• Triple Helix Meeting Place

• e.g. New England Council; Niteroi Technopole

Innovation Space

• Realizing Goals

• Organizational Experiments

• Invention of Venture Capital Firm

Triple Helix Venture Capital

• Creative Destruction

• Creative Reconstruction

• Cyclical VC: follow the business cycle

• Countercyclical VC: works in the downturn and the upturn; early and later stages of firm formation

The Venture Capital Cycle(SSBGG)

• Stasis: fear to invest

• Shortfall: unable to do follow-on rounds

• Balance: ability to act at all stages and phases

• Gluttony: downstream movement

• Gap: shortage of early stage funds

The venture paradox can be resolved through venture

initiatives across the Triple Helix and as hybrid

public/private entities

Array of Venture Capitals

• Private

• Public

• Foundation

• Community Development

• Angels

• Corporate

• University

Innovation in InnovationInvention of new organizational

mechanismsFrom The Endless Frontier

to the Endless Transition