dissertation in pdf-format - Aalto-yliopisto

Public R&D funding was shown to increase the odds of being classified as an innovative firm.
The results confirm the views of Santarelli and Piergiovanni (1996) that both private and public
R&D expenditures proves to be positively correlated with the development of product innovations
and the development of IPRs.
The implications of the study results are important for policy makers since they show that the
allocation of resources to R&D will be appropriate strategy for increasing the amount of IPRs. From
the perspective of regional policy, however, it should be asked whether this kind of allocation of the
resources is proper policy in such areas where receptivity of the local environment does not respond
to the objectives of R&D effort. For example, in Finland strategic centres for science, technology
and innovation have been established in five clusters. This activity may be well justified in such
areas where there are enough high-quality resources to be allocated in R&D activity. However, in
rural and remote areas where for example scientific resources are scarce it could be better to
concentrate on basic businesses that are succeeding well and creating jobs and prosperity for the
region.
From regional policy perspective the role of R&D activity should be rethought since the amount
of innovation inputs does not inevitably lead to the optimal growth and success. We should think
about Acs, Parsons and Tracy’s (2008) conclusion: “Local economic development officials would
benefit from recognizing the value of cultivating high growth firms versus trying to increase
entrepreneurship overall or trying to attract relocating companies when utilizing their resources”.
In regional policy we should take advantage of indigenous assets in different locations. This could
be achieved by analysing carefully the population of businesses and determining the high-impact
and innovative firms of the region. Moreover, from the perspective of regional development the
allocation of inputs in the development of basic business know-how, commercialization and
entrepreneurial behaviour may be equally as important as the development projects in high-tech.
For venture capitalists and business angels the implications suggest consideration of the time
frame of their investment. If they want to take advantage of the introduction of IPRs they should be
patient and wait for the benefits of commercial exploitation. On the other hand, opportunities for
lower risk could be found in such businesses that search for market innovations and modernize and
diversify their activities effectively. Education and training institutions may benefit from the results
when planning their courses and activities.
Limitations including the small sample size, skewness of the data and the definitions of IPR
measures and growth could be pointed out. The approach does not take into account the application
or purchase of IPRs developed outside the firm. External ideas and the so-called open-source