The role of R&D networks in The role of R&D networks in strengthening knowledge base strengthening knowledge base

and S&T capabilitiesand S&T capabilities

The case of The case of Regional University Knowledge Centre for Regional University Knowledge Centre for

Vehicle IndustryVehicle Industry

László Csonka, IKU / PhD at CUBLászló Csonka, IKU / PhD at CUB

Supervisor: Dr. Annamária Inzelt, IKUSupervisor: Dr. Annamária Inzelt, IKU

Globelics Academy, 2-13 June 2008, TampereGlobelics Academy, 2-13 June 2008, Tampere

OverviewOverview

Theoretical backgroundTheoretical backgroundResearch question, methodologyResearch question, methodologyCase studyCase study Background informationBackground information Structure and characteristics of R&D Structure and characteristics of R&D

collaborations of the firmscollaborations of the firms

SummarySummary

Theoretical backgroundTheoretical backgroundEconomic growthEconomic growth

Technology progressTechnology progressfuelled by

InnovationInnovationfuelled by

Innovation is an increasingly Innovation is an increasingly complexcomplex process just like process just like knowledgeknowledge production production

that feeds innovationthat feeds innovation

Growing number of R&D collaborationsGrowing number of R&D collaborations

Fagerberg 1994, Link & Siegel 2001

OECD 2003

Griliches 1992, Fagerberg et al. 2004

Kline & Rosenberg 1986, Lundvall 1992, 2004, Gibbons et al. 1994

Hagedoorn 2000, ’02

Özman,2006„…innovation is most effectively undertaken

as a collective process in which networks play a central role.”

Selected theoretical approachesSelected theoretical approachesEvolutionary economics (Nelson & Winter 1982, Dosi 1988, Dosi 2000)

‘System of innovation’ approach(Nelson 1993, Edquist 1997, Cooke et al. 1997, Malerba & Orsenigo 1997)

Knowledge-based economies(David & Foray, 2001; Archibugi & Lundvall, 2002, Castells, 1996)

Taking into account the social environment: embeddedness, social capital (network capital), structural holes, trust, actor-network theory… (Granovetter, 1973, ’85, ’91, Coleman 1990, Burt 1992, Callon 1990, Sako 1992, Nooteboom 1997, ’99,

Social network analysis (SNA):systematic collection of relational data, study of the flows through the network, graphic images, mathematical or computational models(L Freeman 2004, J. Scott 2000, Wassermann & Faust 1994)

Research questionsResearch questions

What are the main characteristics of R&D What are the main characteristics of R&D and innovation networks in Hungary? and innovation networks in Hungary?

How and how much could the Hungarian How and how much could the Hungarian companies benefit from these companies benefit from these collaborations?collaborations?

Is there any national specificity behind the Is there any national specificity behind the overall low level of collaborative activities?overall low level of collaborative activities?

Research methodologyResearch methodologyLiterature reviewLiterature reviewCase studies (2-2 in 2 different industries)Case studies (2-2 in 2 different industries) with with structured interviewsstructured interviews General information on the organization (ownership, General information on the organization (ownership,

R&D activity, market situation)R&D activity, market situation) R&D networking (partners, influencing factors, R&D networking (partners, influencing factors,

characteristics, output/outcome)characteristics, output/outcome) Specificities of Regional University Knowledge CentreSpecificities of Regional University Knowledge Centre Experiences with R&D networkingExperiences with R&D networking (Slightly modified for faculties / enterprises)(Slightly modified for faculties / enterprises) (Complemented with table & graph to fill in)(Complemented with table & graph to fill in)

Social network analysisSocial network analysisData analysis (problem of availability, reliability)Data analysis (problem of availability, reliability)

Case study introductionCase study introduction

Target firms: Borsodi Ltd, Rába Axles Ltd, Sapu Target firms: Borsodi Ltd, Rába Axles Ltd, Sapu (VisioCorp) (VisioCorp) Lp.Lp. They form together with the ‘Széchenyi István’ University They form together with the ‘Széchenyi István’ University

the Regional University Knowledge Centre for Vehicle the Regional University Knowledge Centre for Vehicle Industry (JRET)Industry (JRET)

Focus on their R&D&I collaboration network within Focus on their R&D&I collaboration network within and outside JRETand outside JRET

EnvironmentEnvironment Northwestern HungaryNorthwestern Hungary Automotive industry Automotive industry PANAC automotive clusterPANAC automotive cluster

Government support for R&D&I collaborationsGovernment support for R&D&I collaborations Regional University Knowledge CentresRegional University Knowledge Centres

Development of a networkDevelopment of a network

20002004

Notes:

Black – core enterprises

Yellow – HE institutions

Pink – research centres

Red – HUN enterprises

White – foreign enterprises

Basic structure of the R&D networkBasic structure of the R&D network

Note: Red lines: JRET connections

Basic structure of the R&D networkBasic structure of the R&D network

Three relatively insular circle of partnershipsThree relatively insular circle of partnerships Combination of different knowledge bases (so far Combination of different knowledge bases (so far

unexploited)unexploited)

Partnerships are mainly based on bilateral Partnerships are mainly based on bilateral contractscontracts

HE institutes are ‘in the middle’ of the activities, HE institutes are ‘in the middle’ of the activities, they provide broad background knowledgethey provide broad background knowledge

Large MNCs collaborate with universitiesLarge MNCs collaborate with universities

JRET brought relatively little intensification or JRET brought relatively little intensification or densification to existing partnerhsipsdensification to existing partnerhsips

Comparing different approaches in Comparing different approaches in Regional University Knowledge Regional University Knowledge

CentresCentresJRET:

EJJT:

Notes:Black – enterprisesYellow – HE facultiesPink – external partners / PRI

Source: Each RUKC’s first year report

Characteristics of the R&D networkCharacteristics of the R&D network

Notes:Black – core enterprisesYellow – HE institutionsRed – HU enterprisesWhite – foreign-owned enterprisesPink – research centresSize of vertices refers to

enterprise sizeBoldness of lines refers to

strength of relation

Characteristics of the R&D network Characteristics of the R&D network cont.’dcont.’d

Low density, ad hoc collaborations (lack of complex Low density, ad hoc collaborations (lack of complex projects) but intention for durable linkagesprojects) but intention for durable linkagesImportance of personal contacts but arms’ length Importance of personal contacts but arms’ length relations are maintainedrelations are maintainedRába Axles Ltd. is the less embedded of the three Rába Axles Ltd. is the less embedded of the three investigated enterprises, relying on intramural R&Dinvestigated enterprises, relying on intramural R&DSapu Lp. mainly commissioning R&D tasks, now Sapu Lp. mainly commissioning R&D tasks, now building own R&D capacity, strong local building own R&D capacity, strong local managementmanagementBorsodi Ltd. is the most active, both commissioning Borsodi Ltd. is the most active, both commissioning and performing different R&D tasks, development and performing different R&D tasks, development by knowledge intensive activitiesby knowledge intensive activities

Upgrading of S&T capabilitiesUpgrading of S&T capabilities

Lots of weak ties, big cognitive distance Lots of weak ties, big cognitive distance → → modest benefitsmodest benefits

Raising awareness of R&D&I activitiesRaising awareness of R&D&I activities

Knowledge accumulation (also about Knowledge accumulation (also about collaboration)collaboration)

R&D collaborations are judged by their R&D collaborations are judged by their contribution to competitiveness contribution to competitiveness

Quantifiable gains in cost savings, additional Quantifiable gains in cost savings, additional sales volume, in enhanced machinery and new sales volume, in enhanced machinery and new job opportunitiesjob opportunities

Emerging findingsEmerging findings

Lack of strategic view about R&D and R&D Lack of strategic view about R&D and R&D collaborationscollaborations

Large enterprises tend to rely on intramural R&D Large enterprises tend to rely on intramural R&D and require only special servicesand require only special services

Low R&D expenditures, very few complex Low R&D expenditures, very few complex projects emerge (and those mainly with projects emerge (and those mainly with governmental support)governmental support)

JRET contributes to stabilizing existing JRET contributes to stabilizing existing relationships but could not help in increasing the relationships but could not help in increasing the number of affected firmsnumber of affected firms

Thank you for your Thank you for your attention!attention!

laszlo.csonka@uni-corvinus.hulaszlo.csonka@uni-corvinus.hu