Does inventor centrality foster regional innovation? The case of the Swiss medical devices sector

Does inventor centrality foster regional innovation? The case of the Swiss medical devices sector. Regional Studies. This paper contributes an empirical analysis to the discussion of the impact of inventors' collaboration networks on regional innovation. More precisely, it investigates how inventors' degree centrality in the regional co-invention network, and inventors' cross-regional linkages, influence innovation in the Swiss medical devices sector. The results show that high values of inventor centrality and the presence of cross-regional linkages have mutually reinforcing effects on innovation. These findings provide insights for policy-makers designing policy to encourage regional innovation.

Innovation dynamics in the medical device sector

Monica Coffano

This thesis aims to provide new insights into the evolution of the medical device sector (MedTech). After the analysis of the history of the sector, I examine the key points that in the past 60 years, have led the industry to grow so impressively, and I proceed to an analysis of the actual situation. The scope of the thesis is to understand if what has stimulated the success of the sector at the beginning is still important, and if the introduction of new elements has positively changed the evolution of the sector. The thesis is composed of three works. The first work (chapter 2) is developed in collaboration with Dominique Foray and Michele Pezzoni. I analyze how the network structure of inventors in the Swiss regions can influence regional innovation performance. I aim to contribute to the existing literature related to the debate on the importance of inventors' collocation for the creation of innovation. I claim that an increased degree centrality of MedTech inventors in the regional technological community is positively associated with the number of MedTech patent applications in the focal region. Moreover, the presence of MedTech inventors in the principal component of the regional technological community is positively associated with the number of MedTech patent applications in the region. However, local connections are not enough to promote innovation. In fact, the results show that intense cross-regional linkages of MedTech inventors increase the number of MedTech patent applications in the region. Thus, it is not only important that an inventor be well connected within her region, but also that she be exposed to external knowledge in order to increase her possibility of achieving high performance in MedTech within that region. Finally, I want also to understand how MedTech is open to other technological domains. I find that the average degree centrality and cross-regional linkages of academic inventors and inventors specialized in technologies complementary to MedTech affect regional innovation outcomes. The second work (chapter 3) is developed in collaboration with Dominique Foray. I aim to study the impact of external technologies on the MedTech sector. I start analyzing the literature of knowledge spillovers, and I do a comprehensive review of the extant measures of knowledge spillovers. I argue that the classical measures based on patent backward citations should be carefully interpreted. The reason as to why this type of index needs a prudent interpretation is linked to the characteristics of different technologies in terms of the speed at which other sectors are capable of understanding, absorbing and using them. Therefore, I propose a new formulation of the classical measure of backward citations. The third work (chapter 4) is developed in collaboration with Fabiana Visentin. I aim to understand the effects of the MedTech regulation that entered into force in Europe in 1993. I argue that the regulation has two effects. The first effect is related to the level of radicalness in the innovation. I claim that after the introduction of the regulation, and consequently with the tightening of the requirements to fulfill, firms became more careful and less motivated to propose radical innovations. At the same time, standardization of the requirements over the European countries gives to firms the possibility of widening their market.

EPFL2016

Managing innovations resulting from university-industry collaborations

Annamaria Conti

We consider a policy regime allowing academic institutions to grant industry the intellectual property rights (IPRs) over invention resulting from collaborations. If a firm plays an important role in generating an invention, the researcher offers the IPRs to the firm, as an incentive to collaborate. However, he retains certain domains where he can exploit an invention without having to apply for a license. The choice of these domains involves a tradeoff. In fact, the researcher either induces the firm's effort, by assigning a broad field of use, or he ensures that he can use an invention in other applications, by granting a narrow field of use. The reverse occurs if it is the researcher who plays an important role in generating an invention. The main difference, however, is that if effort were contractible, the firm could reward the researcher for supplying the first best level of effort, because, unlike the researcher, it is not cash constrained. An empirical analysis, based on École Polytechnique Fédérale de Lausanne research contracts, supports the role of broad fields in bolstering a firm's effort, when the latter is important for generating an invention.

2009

Diving into the dynamics of product evolution

Olivier Waeber

Three distinct stages describe the technological evolution of a product over time: ferment, convergence on a dominant design and an era of incremental change. Until recently, the era of incremental change has been characterized as stable and one that involves low levels of technological innovation. However, recent studies have indicated that this era of incremental change may actually be quite disruptive. This raises the question as to which processes and mechanisms in new product development during the era of incremental change trigger high levels of innovation. First, this dissertation offers a conceptual study about how collaboration practices with suppliers characterized by a relatively high intensity shift the technological evolution away from the era of incremental change towards the stage of ferment. Second, a quantitative study of the medical technology industry in Europe reveals that involving suppliers in new product development during the era of incremental change may trigger technological novelties that are incorporated into new product architectures; A new product architecture shifts the technological evolution towards the era of ferment. According to the results of the second study, it appears that only by improving products based on established architectures are firms unable to innovate new technologies. Additionally, the stage of convergence on a dominant design has mainly been examined on the basis of technological convergence. However, a possible convergence on a dominant design away from the stage of ferment also involves a cognitive variable. Third, this study observes the cognitive variable while examining the nascent smartwatch market. Within a nascent market, firms within previously distinct domains compete with one another. Firms lack a better understanding of customer preferences and develop initial products based on assumptions that are rooted within their previous industry. This qualitative study illustrates that firms from the same prior industry conceptualize their products in a similar way with regard to nascent product features. Overall, this dissertation more deeply explores the product life-cycle of technological development, provides a better understanding of the dynamics during the era of incremental change, demonstrates how the technological life-cycle of a product may shift from one stage to the other and supplies additional explanations concerning how a dominant design may emerge out of the ferment stage of technological development.