The document discusses two models of interaction between public and private research: the linear model and the chain-linked model. It focuses on analyzing which model better explains innovation processes in the biotechnology sector. The linear model involves universities conducting basic research that is then transferred to firms for product development. The chain-linked model emphasizes collaboration between universities and firms, with research driven more by market needs. While some studies have found the pharmaceutical industry follows the linear model, the document questions if this applies to all areas of biotechnology. It proposes analyzing specific biotechnology subsectors to determine whether innovation follows the linear or chain-linked approach.

1. Università degli Studi di Brescia
Facoltà di Ingegneria
Corso di Laurea Magistrale in Ingegneria Gestionale
Boroncini Annamaria
Brianza Alberto
Ghio Andrea

2.  Explore how public research and private research interface
each other, how they complement each other (particular
attention to the linear model and to the chain-linked model);
 Focus on the biotechnology sector;
 Some suggestions concerning the model (linear Vs. chain-
linked) that better explains the innovation processes in this
sector  personal opinions

3.  Stephan P. (1996), “The Economics of Science”
(http://www.jstor.org/stable/2729500 )
 Balconi M., Brusoni S., Orsenigo L. (2008), “In Defence of the
Linear Model: An Essay”
(http://ftp.unibocconi.it/pub/RePEc/cri/papers/WP216Balconi
BrusoniOrsenigo.pdf )
 McMillan S.G., Narin F., Deeds D.L., (2000), “An analysis of
the critical role of public science in innovation: the case of
biotechnology”
(http://www.sciencedirect.com/science/article/pii/S00487333
9900030X)

4.  The public nature of knowledge and the reward structure of
science;
 No rivalry, no excludability;
 Difficulty for providers to capture the economic returns;
 Public research vs. Private research;
Main assumption: public research is conducted mainly by
universities (basic research) and private research is conducted
mainly by firms (applied research)
(Balconi, Brusoni and Orsenigo (2008))
 Interaction between basic research and applied research.

5.  LINEAR MODEL VS. CHAIN-LINKED MODEL
 Linear Model:

6.  Linear model starts from basic research (mainly
in universities) and then the knowledge is
transferred to the firms  marketable products;
 To do this, firms need to undertake a long and
uncertain development activity.

7.  Chain-linked model:

8.  Firms want to satisfy the needs or the requests of
the market  collaboration with universities;
 Linear model is “technology push” while the
Chain-Linked model is “market pull”.

9.  Balconi, Brusoni and Orsenigo (2008):
Pharmaceutical Industry Linear Model;
 McMillan, Narin and Deeds (2000): biotechnology and pharmaceutical
industries are mainly based on basic science
Our interpretation: Linear Model
Pharmaceutical Biotechnology Firms
Companies
Percent of science 79.1% 83.1%
references originating in
public science
Research question: is it always right in every biotechnology’s sector?

10. Example of sub-sectors that seem to be much chain-linked:
 Agriculture Industry
 Crops that reduce the use of fertilizers
 Food Industry
 Improved taste or appearance of food
Several biotech sub-sectors are mainly “market pull”.

11.  In some biotechnology’s fields the innovation processes seem
to follow the linear model, in others the chain-linked
one, and this depends very much on the intrinsic
characteristics of each field.
Our goal: some sectors analysis and the
relative knowledge transfer.