Regional knowledge diffusion and firm level factors The case of the Flemish biotechnology firms

Recent studies in science, technology and innovation show that innovations are the result of interactions in which knowledge diffuses between the actors of the system (Cooke, 2002; Hekkert et al., 2007). Knowledge diffusion is therefore essential for innovations (Lundvall, 1992). Due to the small spatial distances between the actors of the system that facilitates interactions and knowledge diffusion, the regional innovation system has gained growing attention in innovation studies and policies. Regional policies are increasingly being used to stimulate innovations in the biotechnology industry (Cooke, 2002). The biotechnology industry has been characterized as an important driver for the knowledge based economy as it is the most fast growing science based industry with relatively high product revenues and high speed advancements (EC, 2005b). Compared to the US, Europe is lagging behind in the commercialization of academic biotechnology research (Ernst &Young, 2005; Van der Valk, 2007). This indicates a gap between biotechnology knowledge creation and commercialization of this knowledge by biotechnology firms. This thesis aims to explain knowledge diffusion between knowledge organizations and biotechnology firms on a regional level by addressing the role of firm level characteristics. The focus is on knowledge diffusion by means of subsidized R&D collaborations. The provision of subsidies for collaborations between firms and knowledge organizations is a globally used (regional) policy instrument to stimulate innovations in science based industries. The influence of firm level factors on knowledge diffusion by means of subsidized R&D collaborations between regional knowledge organizations and biotechnology firms is investigated by a case study research on all subsidized R&D collaborations of Flemish biotechnology firms and regional knowledge organizations in the period 2003-2007. Based on the assumption that the more and the longer (i.e. the more intense) these actors collaborate, the more knowledge will be diffused, the central research question of this thesis is specified to: What firm level factors have influenced the intensity in which Flemish biotechnology firms have had subsidized R&D collaborations with regional knowledge organizations, in the period 2003-2007? The unit of analysis is the (biotechnology) firm and the reached domain is all the Flemish biotechnology firms that have had subsidized R&D collaborations with regional knowledge organizations in the period of 2003-2007. Focus and distinction has been made on the biotechnology activities of the firms. The biotechnology firms that have been studied are those firms that have red (human and animal health), green (agriculture and food) or white (industrial) biotechnology activities