UK biotechnology: institutional linkages, technology transfer and the role of intermediaries

One prominent feature of biotechnology in the UK is the close relationship between the public-sector science base and industry. Using information from interviews, the system for technology transfer is examined and four main institutional actors are identified: sponsors (both public and private, which fund research), hosts (which provide an environment in which research takes place), users (which commercialize research) and intermediaries (which act as agents in the technology transfer process). Models of the process of technology transfer are developed which incorporate knowledge flows between these institutions and the accompanying contractual, and financial/ economic relations. The direction, scale and formality of these interactions is examined and it is suggested that institutional approaches can capture important feedbacks and relationships which are overlooked in traditional stage and activity models of innovation. In particular, intermediaries are highlighted, and it is suggested that they play an important role in contractual and financial/economic linkages in three ways: (i) by acting as agents between institutions in the presence of an imperfect knowledge market, (ii) by performing a liaison function for firms sourcing external know-how, and (iii) by providing access to complementary assets for development of technologies internally. In the conclusion, we argue that institutional models can (a) help to define optimal linkage structures for specific technological areas at national and supranational levels (e.g. between members of the European Union) and (b) highlight the presence of inter-agency tensions and help identify the appropriate management options for resolving these.