Biotechnology: Linear or Chain Linked Model
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Biotechnology: Linear or Chain Linked Model

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A presentation of a paper made for the Innovation Economics' exam

A presentation of a paper made for the Innovation Economics' exam

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  • 1. Università degli Studi di BresciaFacoltà di IngegneriaCorso di Laurea Magistrale in Ingegneria Gestionale Boroncini Annamaria Brianza Alberto Ghio Andrea
  • 2.  Explore how public research and private research interface each other, how they complement each other (particular attention to the linear model and to the chain-linked model); Focus on the biotechnology sector; Some suggestions concerning the model (linear Vs. chain- linked) that better explains the innovation processes in this sector  personal opinions
  • 3.  Stephan P. (1996), “The Economics of Science” (http://www.jstor.org/stable/2729500 ) Balconi M., Brusoni S., Orsenigo L. (2008), “In Defence of the Linear Model: An Essay” (http://ftp.unibocconi.it/pub/RePEc/cri/papers/WP216Balconi BrusoniOrsenigo.pdf ) McMillan S.G., Narin F., Deeds D.L., (2000), “An analysis of the critical role of public science in innovation: the case of biotechnology” (http://www.sciencedirect.com/science/article/pii/S00487333 9900030X)
  • 4.  The public nature of knowledge and the reward structure of science;  No rivalry, no excludability;  Difficulty for providers to capture the economic returns; Public research vs. Private research; Main assumption: public research is conducted mainly by universities (basic research) and private research is conducted mainly by firms (applied research) (Balconi, Brusoni and Orsenigo (2008)) Interaction between basic research and applied research.
  • 5.  LINEAR MODEL VS. CHAIN-LINKED MODEL  Linear Model:
  • 6.  Linear model starts from basic research (mainly in universities) and then the knowledge is transferred to the firms  marketable products; To do this, firms need to undertake a long and uncertain development activity.
  • 7.  Chain-linked model:
  • 8.  Firms want to satisfy the needs or the requests of the market  collaboration with universities; Linear model is “technology push” while the Chain-Linked model is “market pull”.
  • 9.  Balconi, Brusoni and Orsenigo (2008): Pharmaceutical Industry Linear Model; McMillan, Narin and Deeds (2000): biotechnology and pharmaceutical industries are mainly based on basic science Our interpretation: Linear Model Pharmaceutical Biotechnology Firms Companies Percent of science 79.1% 83.1% references originating in public scienceResearch question: is it always right in every biotechnology’s sector?
  • 10. Example of sub-sectors that seem to be much chain-linked:  Agriculture Industry  Crops that reduce the use of fertilizers  Food Industry  Improved taste or appearance of foodSeveral biotech sub-sectors are mainly “market pull”.
  • 11.  In some biotechnology’s fields the innovation processes seem to follow the linear model, in others the chain-linked one, and this depends very much on the intrinsic characteristics of each field. Our goal: some sectors analysis and the relative knowledge transfer.