Mission impossible? Entrepreneurial universities and peripheral regional innovation systems

Abstract

As part of their "third mission" to commercialise research and cultivate growth in local economies, universities have been accorded a central role in regional innovation systems. This paper takes issue with this policy emphasis. It presents empirical evidence suggesting the entrepreneurial spillovers from universities have been greatly exaggerated, especially in some peripheral regions. The explanation offered for this poor performance hinges on the substantive disconnect between universities and their surrounding local entrepreneurial and innovation ecosystems. Despite their marginal economic contribution, the paper claims that "policy entrepreneurs" play a powerful role in cumulatively reinforcing the dominant role of universities through a process of "institutional capture", the outcome of which results in a form of "policy lock-in". The implications of these findings for public policy are outlined.

Myth-busting and entrepreneurship policy: the case of high growth firms

“…A number of studies show that more important drivers of 'open' innovation for these firms are suppliers, customers and end-users (Wennberg 2013) or even acquired companies (Mawson and Brown 2016). These findings have led some to claim that the significance placed on universities in technology transfer and commercialization policies to generate USOs, or new-starts more generally, has been greatly exaggerated (Harrison and Leitch 2010), especially in peripheral regional economies (Brown 2016). Many of the spin-outs created resemble "science projects" (Bhidé 2008), rather than businesses with growth -let alone high growth -potential.…”

“…For example, analysis of data from the Scottish Co-Investment Fund, established to invest alongside business angel groups, reveals that three sectors (digital and enabling technologies, life science and renewables) together account for 80% of all expenditure by value (Scottish Enterprise 2012). This is also true for USOs, which often receive significant support under commercialisation policies such as proof-of-concept schemes and technology-transfer programmes operated by university technology transfer offices (Rothaermel 2007;Harrison and Leitch 2010;Brown 2016).…”

“…Policy makers now view universities as a core part of their high growth entrepreneurship policies . This is evident in the provision of considerable funding dedicated towards creating entrepreneurial universities through activities such as incubation facilities, spin-out programmes and angel clubs Brown 2016). In Germany, for example, the government-funded EXIST programme aims to promote technology and knowledge-based start-ups through innovation grant funding.…”

“…While certain myths associated within scholarship on rapid firm growth have been highlighted (Kiviluoto, 2013), this paper specifically focuses on the misconceptions within public policy. Indeed, following others (Power and Malmberg 2008;Brown 2016), this is a debate article seeking to examine and challenge the mythology perpetuated by policy makers and embedded within high growth entrepreneurship policy frameworks. It is not intended to be a comprehensive meta-analysis of the HGF literature, but rather a critical assessment of current HGF policy closely linked to a rigorous review of the current empirical literature base on HGFs.…”

“…Hirunyawipada andPaswan (2013, 2333) claim that the ideas of many practitioners are inevitably "based on their past experiences", which in turn leads to people sticking "to their tried and tested mental models". Through the actions of policy entrepreneurs, certain beliefs can quickly become embedded within public policy without any explicit acknowledgement or reasoning (Brown 2016). There appears to be an institutional logic (Friedland and Alford 1991) amongst these policy entrepreneurs of what HGFs look like, what their economic benefits are, and how best to foster them, which exists independently of -and sometimes in contrast to -the developing evidence base.…”