Technology-Based Firms Located on Science Parks: The Applicability of Bullock's 'Soft-Hard' Model

Abstract

Property-based initiatives or 'incubators' such as Science Parks (adjacent to universities) have been established by their sponsors to promote higher education institute (HEI) and industry linkages as well as the formation and development of technology-based firms. Science Parks reflect an assumption that technological innovation stems from scientific research (for example, in a HEI) and that Parks can provide the catalytic incubator environment for the transformation of 'pure' research into production, generating the externality benefits within the Parks and the local economies. An extension to the linear model of innovation is provided by Bullock (1983). This study explores the applicability of the Bullock model which suggests firms established to provide 'soft' services transform over time to provide 'hard' manufactured products. A comparative static data set of technology-based firms interviewed in 1986 and 1992 located on and off Science Parks in the UK is explored to test presented hypotheses. The Bullock model is not supported. Nevertheless, 'soft' and 'hard' Science Park firms are found to make a contribution to wealth creation and job generation. The policy and research implications of the research findings are discussed.

Keywords:

• Technology-BASED Firms
• Science Parks
• Bullock Model
• Deindustrialization
• Firm Performance