ABSTRACT

Sourcing Science
The use by Industry of the Science Base for Innovation;
Evidence from the UK's Innovation Survey

CRIC Discussion Paper No. 64

Bruce Tether and Peter Swann

This paper draws on the UK's version of the 3^rd European Community Innovation Survey (CIS-3) to investigate the contribution that the 'public science base' - that is universities and publicly funded research institutes - makes to innovation in firms. We use the CIS-3 to investigate the direct and indirect links between the science base and innovation in firms. Although, with some exceptions, the direct links are not widespread, there is evidence that as firms' own commitment to innovation increases so does the extent to which they engage the science base in their innovation activities. Meanwhile, there is also evidence that the indirect links between the science base and industry are more important than the direct links, but overall access to technology is not amongst the most significant impediments to innovation in firms. Other factors (such as market conditions, lack of ambition, access to finance, and the quality of demand) have a greater role in explaining the innovation performance of firms. Essentially, the primary reason why firms rarely engage the science base is that relatively few firms have high commitments to innovation.

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