In search of the 'Holy Grail'

Science Shop of Economics, Management & Organization vii Abstract In 2001 the European Council in Lisbon set the strategic goal of transforming the European Union, (EU) by 2010, into the most competitive and dynamic knowledge-based economy in the world. A comprehensive restructuring of the European research landscape towards a true internal research market is needed to create high levels of mobility, competition, and research excellence within the EU. An important role in this restructuring process has been identified for the European universities, which are seen as the ‘engines of growth’ for the economy. Within Europe scientific researchers conduct high quality research, implying that sufficient amounts of knowledge is created, nevertheless, it appears to be that the transfer of that knowledge to industry is hampered, for Europe lags behind the US and Japan in terms of innovativeness. The apparent ‘mismatch’ in industry-science relations, has become known as the “European Paradox” (EC 2002). The traditional view of the university as the cornerstone of scholarly work, research and teaching is now being challenged by a more proactive view that sees the university as a central actor in the process of innovation responsible for, and expected to achieve, knowledge transfer to industry. This study tries to shed new light on this topic in two ways: first, the progression of research activities at the university level within the Netherlands is analysed. Data of the Association of Universities (VSNU), covering the period 1992-2001, is used to assess the competitiveness of the University of Groningen (RUG) opposed to the other main Dutch universities. Second, the evolution of contract research at the RUG during the 1990s and early 2000s at the faculty level is examined. A database consisting of 2,698 contracts over the period 1992-2003 is used to clarify the differing third stream research activities carried out at the 8 RUG faculties, which are actively involved in this type of research. We used third stream contract research as a proxy for university-industry interaction; after having hypothesised a positive relation between contract value/duration and a faculty’s contracting experience. In addition, interviews conducted with each faculty’s ‘third stream’ coordinator, about the respective faculty’s third stream performance, provide in depth information about the underlying forces at work within the research community in Groningen. The main findings of the Dutch university analysis are that the RUG is underperforming in terms of research in and output according to its size, and that the university’s third stream research activities in relation to the total research activities are the lowest of all universities in the analysis. The somewhat disturbing results, in relation to the Lisbon Agenda, provide rationale for a revision of the university’s current policy concerning third stream research. In order to make the RUG more ‘entrepreneurial’ the analysis, about the 8 RUG faculties, describes the university’s current state of entrepreneurialism and all the problems faced by the faculties. The analysis exposes ‘unintended’ consequences of the current policies and finds a positive learning effect within the (‘experienced’) faculties with an above average amount of IN SEARCH OF THE ‘HOLY GRAIL’ viii Science Shop of Economics, Management & Organization contract activities. Indications are that the ‘ivory tower’ at the RUG is slowly crumbling and that sufficient scale and scope for third stream research appears to be present. Considering the information and evidence presented in this paper it is not the question if the Dutch universities will become more ‘entrepreneurial’, but more when. By acknowledging this process the RUG needs to act quickly in order to regain some of its competitiveness.