This paper investigates the diffusion and institutionalization of change in formal organization structure, using data on the adoption of civil service reform by cities. It is shown that when civil service procedures are required by the state, they diffuse rapidly and directly from the state to each city. When the procedures are not so legitimated, they diffuse gradually and the underlying sources of adoption change overtime. In the latter case, early adoption of civil service by cities is related to internal organizational requirements, with city characteristics predicting adoption, while late adoption is related to institutional definitions of legitimate structural form, so that city characteristics no longer predict the adoption decision. Overall, the findings provide strong support for the argument that the adoption of a policy or program by an organization is importantly determined by the extent to which the measure is institutionalized -whether by law or by gradual legitimation. This paper investigates the diffusion and institutionalization of change in formal organization structure, using data on the adoption of civil service reform by cities. It is shown that when civil service procedures are required by the state, they diffuse rapidly and directly from the state to each city. When the procedures are not so legitimated, they diffuse gradually and the underlying sources of adoption change overtime. In the latter case, early adoption of civil service by cities is related to internal organizational requirements, with city characteristics predicting adoption, while late adoption is related to institutional definitions of legitimate structural form, so that city characteristics no longer predict the adoption decision. Overall, the findings provide strong support for the argument that the adoption of a policy or program by an organization is importantly determined by the extent to which the measure is institutionalizedwhether by law or by gradual legitimation.* © 1983 by Cornell University 0001 -8392/83/2801-0022/S00.75The authors are jointly responsible for the theoreticalargumentand analysis. M. Craig Brown suggested the topic of civil service reform. Maureen J. McConaghy, Nancy Brandon Tuma, Glenn R. Carroll, and P. Y. Liu provided methodological advice; Sharon Stevens aided early computational work. Both of us are grateful to Phillip Bonacich for his advice throughout the research, and to

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We examine the relationship between the intellectual capital of scientists making frontier discoveries, the presence of great university bioscience programs, the presence of venture capital firms, other economic variables, and the founding of U.S. biotechnology enterprises during 1976-1989. Using a linked cross-section/time-series panel data set, we find that the timing and location of the birth of biotech enterprises is determined primarily by intellectual capital measures, particularly the local number of highly productive "star" scientists actively publishing genetic sequence discoveries. Great universities are likely to grow and recruit star scientists, but their effect is separable from the universities. When the intellectual capital measures are included in our poisson regressions, the number of venture capital finns in an area reduces the probability of foundings. At least early in the process, star scientists appear to be the scaice, immobile factors of production. Our focus on intellectual capital is related to knowledge spillovers, but in this case "natural excludability" permits capture of supranonnal returns by scientists. Given this reward structure technology transfer was vigorous without any special intermediating structures. We believe biotechnology may be prototypical of the birth patterns in other innovative industries.

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