Emergence of Economic Institutions: Analysing the Third Role of Universities in Turku, Finland

Abstract

Srinivas S. and Viljamaa K. Emergence of economic institutions: analysing the Third Role of universities in Turku, Finland, Regional Studies. How do universities become economic development institutions? The normative ‘Third Role’ in Europe refers to universities taking on explicit economic development mandates such as greater technology transfer, and commercial outputs, without providing much of a compass for institutional change. It is argued that universities transform themselves into economic institutions against a changing canvas of national welfare by a process of ‘task-oriented institutionalization’ which involves both individual action and university strategy. Two universities' interactions with firms in Turku, Finland's biotechnology concentration, are investigated. Using universities as a lens, notable gaps are found in frameworks on how economic institutions emerge, and the paper concludes with five hypotheses for future studies on universities, institutions, and economic development.

Srinivas S. et Viljamaa K. La naissance des institutions économiques – Une analyse du troisième rôle des universités à Turku en Finlande, Regional Studies. Comment, les universités, est-ce qu'elles deviennent des institutions économiques? En Europe, le ‘Troisième rôle’ normatif fait allusion aux universités qui assument une compétence économique bien repérée, telle le transfert de la technologie, et des rendements commerciaux, sans conduire le changement institutionnel. On affirme que les universités se transforment en institutions économiques sur fond d'un welfare national en pleine évolution par un processus ‘d'institutionnalisation orientée vers la pratique' qui nécessite à la fois l'action individuelle et une stratégie universitaire. On examine l'interaction de deux universités situées à Turku, pôle biotechnologique finlandais, et des entreprises. En se servant des universités comme point de mire, il s'avère d'importantes lacunes dans les cadres qui font naître les institutions économiques. On conclut par avancer cinq hypothèses de travail sur les universités, les institutions et le développement économique.

Développement économique; Institutions; Modèles de planification; Universités; Aménagement du territoire; Politique des sciences et de la technologie; Finlande

Srinivas S. und Viljamaa K. Die Entstehung von Wirtschaftsinstitutionen: Analyse der Dritten Rolle von Universitäten in Turku (Finnland), Regional Studies. Wie werden aus Universitäten Institutionen zur Wirtschaftsentwicklung? Die normative ,Dritte Rolle' in Europa bezieht sich darauf, dass Universitäten explizite Mandate zur Wirtschaftsentwicklung übernehmen, zum Beispiel zum verstärkten Technologietransfer und zu höherer Wirtschaftsleistung, ohne dass jedoch ein nennenswerter Kompass für institutionelle Veränderung vorgegeben würde. Wir argumentieren, dass Universitäten vor einem sich wandelnden Hintergrund des nationalen Wohlfahrtswesens von selbst zu Wirtschaftsinstitutionen werden, indem sie einem Prozess der ,aufgabenorientierten Institutionalisierung' folgen, der sowohl individuelle Handlungen als auch universitäre Strategie umfasst. Wir untersuchen die Wechselwirkungen zwischen zwei Universitäten und Firmen in Turku, dem finnischen Ballungsraum für Biotechnologie. Indem wir die Universitäten als Vergrößerungsglas nutzen, finden wir erhebliche Lücken in den Strukturen, innerhalb derer sich Wirtschaftsinstitutionen entwickeln. Wir schließen mit fünf Hypothesen für künftige Studien über Universitäten, Institutionen und Wirtschaftsentwicklung.

Wirtschaftsentwicklung; Institutionen; Planungsmodelle; Universitäten; Stadt- und Regionalentwicklung; Wissenschafts- und Technologiepolitik; Finnland

Srinivas S. y Viljamaa K. Evolución de instituciones económicas: Análisis del tercer papel de las universidades en Turku, Finlandia, Regional Studies. ¿Cómo se convierten las universidades en instituciones de desarrollo económico? La normativa del ‘tercer papel’ en Europa hace referencia a que las universidades asuman mandatos explícitos de desarrollo económico tales como una mayor transferencia en tecnología y producción comercial, sin introducir muchas pautas para cambios institucionales. Sostenemos que las universidades se transforman en instituciones económicas contra un modelo de cambio en el bienestar nacional mediante un proceso de ‘institucionalización orientada a las tareas’ que implica una estrategia de medidas individuales y universitarias. Investigamos las interacciones de dos universidades en el centro de biotecnología en Turku, Finlandia. Usando las universidades como objetivos, observamos que existen grandes lagunas en las estructuras en el modo en que evolucionan las instituciones y concluimos con cinco hipótesis para estudios futuros sobre universidades, instituciones y desarrollo económico.

Desarrollo económico; Instituciones; Modelos de planificación; Universidades; Desarrollo urbano y regional; Política de ciencia y tecnología; Finlandia; 

Keywords:

• Economic development
• Institutions
• Planning models
• Universities
• Urban and regional development
• Science and technology policy
• Finland

JEL classifications:

• D02
• I23
• O21
• R11

Acknowledgements

The authors are very grateful to the many interviewers in Finland for their patience and willingness to share their insights. The study was conducted as part of the Local Innovations Systems project (LIS), where both the Massachusetts Institute of Technology's (MIT) Industrial Performance Centre (which led the effort) and the Tampere University Regional studies group SENTE in Finland, played central roles. A previous working paper version of this research is available through the Local Innovation Systems project at MIT. The Finnish portion of this study and support for K. Viljamaa came from the Finnish Funding Agency for Technology and Innovation TEKES and the Academy of Finland. S. Srinivas wishes to acknowledge funding and logistical assistance from the MIT Industrial Performance Centre for Finnish data collection, funding by the STG Project at Harvard University's John F. Kennedy School of Government, and a United Nations Industrial Development Organisation (UNIDO) Fellowship. These sources of support are gratefully acknowledged. The authors thank their colleagues and various audiences, and they benefited from very useful comments by three anonymous reviewers.

Notes

1. In therapeutics, in the 1980s, Orion Corporation and Huhtamäki Ltd aggressively bought out most other companies, including Leiras, which was subsumed into the Huhtamäki Pharmaceuticals Company in 1986. A further consolidation took place with Farmos and Orion being merged in 1990, and separation in 1992, with Leiras emerging as a separate legal entity once again, but being subsequently acquired by the global company Schering. In diagnostics, the Finnish firm Wallac, with a long history research and university involvement in Turku, was acquired by US-based PerkinElmer, Inc.

2. For instance, researchers such as Professor Erkki Soini, formerly a long-time senior researcher at PE-Wallac, always kept links with university research, having come from there himself. During his over 25-year tenure at PE-Wallac, he actively coordinated with university departments because he had a vision of what joint research could accomplish, and believed this at a time when few others had such a vision. He then returned to the university as a full professor, having decided that he could pursue some types of research more effectively in the university, and began his own company (communication with Professor Soini and with other interviewees).