The Role of Mid-Range Universities in Knowledge Transfer in Non-Metropolitan Regions in Central Eastern Europe

Abstract

This paper focuses on the specific role of mid-range universities in knowledge transfer and explores the knowledge flows from these mid-range universities which face a number of additional constraints in transitional Central Eastern European (CEE) regions. The first part focuses on the theoretical framework of knowledge transfers and on the types of university–industry linkages involving knowledge transfer in the case of mid-range universities. The next section examines the development path and specific trajectories of universities in post-communist countries. The following sections draw on the findings of the ERAWATCH research and focus on cases from the non-metropolitan regions of Hungary and the Czech Republic in order to examine the specific barriers to knowledge transfer and explain the reasons behind the traditionally weaker role of mid-range universities. The paper argues that ambitious university-based developmental models have to be revised in CEE regions and the future development role of universities has to be reconsidered from a more realistic perspective.

Acknowledgements

This study is an outcome of the project sponsored by the Czech Grant Agency (402/06/P089) “The strategic services, regional development and post-communist transformation: towards the knowledge economy” and the grant of Hungarian Scientific Research Fund (OTKA, no. 81785K) on “Innovation-friendly governance in Hungary: challenges of regional innovation development policy”, and we are also grateful to the bilateral project “Kontakt Czech Republic-Hungary” MEB 040808 on “The role of the regional universities in the regional economy and their research and innovation transfer potential”.

Notes

Intellectual Property.

A good example derived even from the Silicon Valley proves this new trend as since 2008 the Standford University spent more on social and organizational innovation than on technology oriented R&D!

Innovators face many social and managerial barriers, which inhibit innovations. Besides inadequate funding risk avoidance, incorrect measures and forecasts, lack of partnerships and deficiencies in collaboration are the most important social and managerial constraints.

A similar argument was also found in the literature explaining why the same amount of R&D investment can generate quite different performance in different environments (Goldstein & Renault, 2004; Huggins & Johnston, 2009). Similarly, Bajmóczy and Lukovics (2009) showed that university researches for local economic development may be an outstanding instrument in the case of advanced regions but not necessarily for the less developed regions where the lack of an appropriate industrial base is one of the main constraints. The results showed that the presence of universities does not affect the growth rate of per capita gross value added and gross tax base per tax payer in the Hungarian regions.

One CEO in his answer remarked that university-led research networks are rarely successful.

The earliest foundation took place in the early 1990s in molecular biology. The newly formed Biotech cluster also strongly relies on the spin-off companies established around the Medical School of UP. In applied medical and biotechnological research, the spin-off companies founded by researchers have key importance with their activities focused on the practical application and marketing of the intellectual products of molecular biology and immunology (Pannonia Research Park, Histopathology, Westeam Biotech Biotechnological Ltd). The 11 spin-offs in the biotech sector had 48 employees (40 of them with an HEI degree) and produced EUR 3 million turnover in 2007.

Our case studies suggest that many TTOs may have the expertise to act as intermediaries in the transfer of more codified or explicit knowledge (such as in IP and licensing). Few will have the requisite expertise to act as intermediaries in the transfer of tacit knowledge unless they can actively develop such skills.

These centres were created in CEECs countries, adopting the long existed western model to stimulate the technological development of companies in the major industrial sectors through collective research. This type of collaboration is particularly appropriate for SMEs that do not possess the necessary resources to develop their own research activities. However, it was found that small companies are co-operating with universities to a lesser extent in general and also in South Transdanubia, and local SMEs in particular rarely communicate with universities for technology information. It seems obvious that the co-operative willingness of SMEs is the smallest, yet it is they who are most in need of co-operation (Gál & Csonka, 2007).

In the project, the social–organizational innovation mediated by the academic sector was serving for strengthening the social and organizational foundations of the local economic development and focused on the development of human resources in which the different forms of knowledge have a key role. The adult education and professional training courses organized by the universities, the exchange of practical knowledge bound to certain sectoral policies, development priorities, the elaboration of development strategies and practical development programmes (in rural development and in environmental sector) customized to the demands of local society and the universities' narrow and broad environment are important components in the increased regional engagement of universities.

As long as these regions have some strong research facilities, at least in their national context, the RTD policy measures usually aim at upgrading and further developing the existing regional R&D capacities. These capacities can be also exploited by foreign companies relocating into the region. Foreign investors have established some R&D centres and they are developing some links to the regional research community thanks to the networking and cluster initiatives (e.g. Jihozapad in the Czech Republic).

South Moravia with the capital in Brno, Central Moravia (Olomouc), Eastern Moravia (Zlín) and Ostrava being the capital of the Moravian–Silesian region.

Masaryk University, Technical University, Mendel Agriculture and Forestry University and Defence University.

University of Pécs (est. 1367) and University of Kaposvár (est. 2000).

Higher Education Institute.

The relative strength of biotech research base is demonstrated by its large share of total input–output indicators and also by the increase of RTD spending in this field (64.8 millions in 2004). In addition, the 11 university spin-offs in the biotech sector are tightly connected to the Medical School (MS), which has 48 employees and produces a turnover of EUR 3 million (2004).