Technology intermediaries are an important actor of the innovation system. According to Howells their role is to act as brokers or third parties in order to build the bridges between the various participations within the open system.
Definition Innovation intermediaries focus their efforts on building bridges and closing gaps between the key actors of an innovation system which include enterprises, universities and public research organizations. Firms are becoming more open when it comes to collaborations outside the boundaries of a firm. Though the shift to open innovation is no guarantee for a firm's success. Many companies are not able to take advantage out of the opened innovation process for different reasons. Outsourcing those activities to technology intermediaries might be a potentially useful solution. Technology intermediaries or “tech intermediaries” are created to help firms to take advantage of technological developments. They help firms through their specialization in various R&D activities and R&D related activities to build up absorptive capacity. They can do so by helping to build the ability to scan the market for emerging technologies as well as the ability to absorb the technology and perform corresponding R&D activities. They are working as some kind of competence poles and are established to initiate innovation in specific sectors. Furthermore, they are acting as intermediaries between creators and diffusers of knowledge. Technology intermediaries are examined by different authors and therefore various denominations like “technological communities”, “bridging organizations”, “open innovation intermediaries” or “intermediaries” are existing. They introduce various relations between the different actors of the innovation system. They are considered “instrumental in closing gaps between the principal actors”. There are many types of technology intermediaries existing, which are very different in their nature and perform various functions. The performed activities are ranged from the diffusion and technology transfer to innovation management and the establishment of systems and methods, but also technology services that are provided to companies. The variety of intermediaries ranges from specialized government agencies and energy-service firms, electric power utilities to university liaison departments or regional technology centers. But also non-governmental organizations, research and technology organizations and cross-national networks can act as technology intermediary. In many European countries, technology intermediaries emerge as forms of collective technology centers. They are financed mostly both by industry as well as by the public sector. Examples are the “collective research centers” in Belgium or the “Centers Techniques Industries” in France. Belgium's “collective research centers” were established in 1947 after the Second World War. Policy makers wanted to use them to boost scientific and technological research in specific fields of the economy. The intermediaries are privately held by the member companies. Because of their long-term direction and their existence for 30 to 60 years, they are considered to be useful for their members and obtained an appropriate position. The following chapters take the “collective research centers” as an example for technology intermediaries that have been examined extensively by André Spithoven and his colleagues in their scientific works. According to Spithoven et al. (2011) their operations to build absorptive capacity can be generalized to other technology intermediaries.
Importance for Technology Intermediaries in the Open Innovation Context Regarding the use of knowledge, one can distinguish between two rough activities of companies within the frame of open innovation, namely inbound open innovation and outbound open innovation. Inbound open innovation is also often referred to as “Outside-in Process”, meaning that know-how of external sources, such as suppliers or consumers, gets transferred through the boundaries into the firm to improve the pace and quality of its innovation process. If used properly, this may allow for long-lasting innovativeness and competitive advantage. Therefore, companies shift “from innovation initiatives that are centered on internal resources to those that are centered on external networks“. We therefore face a shift “[…] from innovation that is firm-centric one that is networking-centric.”
Inbound Open Innovation and Importance of Absorptive Capacity In fact, the effective and efficient usage of external knowledge is more complex than obvious on first glance. External knowledge does not percolate smoothly through the boundaries of the firm. More likely, knowledge that is stemming from external sources has to be, first of all, identified to be relevant, then brought into appropriate context and in the end actually be used. In fact, whether the firm is able to take advantage of inbound open innovation depends largely on absorptive capacity. According to Cohen and Levinthal, the concept of absorptive capacity is critical to the innovativeness of a firm. It is a three-step capability consisting of the following: Firstly, the ability to recognize new knowledge and technologies outside the own firm boundaries and to recognize their relevant value for own purposes. Secondly the ability to assimilate them and, finally, the ability to apply them to commercial ends. In short: Absorptive capacity is the ability to appropriate external knowledge. Understanding absorptive capacity, therefore, is the key to understanding the concept of inbound open innovation. Even if there are different views existing, the definition of Cohen and Levinthal can be taken as a frame for the concept of absorptive capacity. According to Spithoven et al. (2011), absorptive capacity at the firm-level can be generated in various ways. Three main ways for an organization to do so, are:
Investing in in-house R&D By-product of manufacturing operations sending personnel to advanced technical training A critical factor, therefore, is the communication at the inter-organizational level.
… excerpt ends here. Continue reading the full article.
