The diminishing signaling value of patents between early rounds of venture capital financing

A long stream of research has documented the positive effects that patents bring about to emerging firms in high technology industries. The general consensus is that patents contribute to firm growth because they confer monopolistic market rights, offer protection from competitors, increase the negotiating position of patent holders and other benefits. What has received relatively less attention in the literature is whether patents act as a signal that attracts investors such as venture capital firms. The handful of studies that have addressed that question has not analyzed whether the signaling function of patents decreases after the initial attraction of venture capital, as information asymmetries between investors and target firms reduce. In this study we hypothesize that patent activity has a signaling value that diminishes once information asymmetries between investors and funded firms lessen. To study our proposition we draw upon a longitudinal dataset of more than 580 U.S.-based biotechnology firms to empirically demonstrate that biotechnology firms that have submitted patent applications substantially increase the level of funding they receive for their first round of financing. In line with a reduction of information asymmetries once the initial investment has materialized, patent applications and granted patents have no effect on the growth of venture capital funds raised during the second round of financing. We conclude the study with a discussion of avenues for new research, implications for policy makers that consider the usefulness of the current patent system and with insights that can be employed by managers of firms in knowledge intensive areas such as biotechnology.     

Spatial collocation and venture capital in the US biotechnology industry

Biotechnology firms operate in a high-risk and high-reward environment and are in a constant race to secure venture capital (VC) funds. Previous contributions to the literature show that the VC firms tend to invest locally in order to monitor their investments and to provide operating assistance to their target firms. Further, biotechnology is a knowledge-based industry that tends to exhibit spatial clusters, and the firms in such industries may collocate to benefit from gaining access to local markets for specialized inputs (e.g., skilled researchers) and from local knowledge spillovers and network externalities. If such gains exist, we expect that the collocated firms should exhibit positively correlated performance, including in their ability to attract venture capital funds. The purpose of this paper is to empirically measure the strength and spatial extent of the relationships among the amount of funds raised by proximate biotechnology firms. We model these relationships with a spatial autoregression (SAR) model, and we control for characteristics of the biotechnology firms and the VC firms that provide their funds as well as site-specific factors. Based on our fitted SAR model, we find that the amount of venture capital raised by a particular biotechnology firm is significantly influenced by the number of VC firms and the VC funding levels raised by biotechnology firms located within a 10-mile radius, but these relationships are not statistically significant beyond this range.     

Reengineering Academic Teams Toward a Network Organizational Structure*

This article examines student teamwork in the academic field from a structural perspective. Student teams are often prearranged and then left to organize themselves and get on with their work, without any further structural support; this, however, can become a negative experience on teamwork. A varied contribution among team members often occurs and unavoidably leads to friction and reduced performance. The aim of this project is to explore the main problems in academic teamwork and investigate tools that provide relevant solutions. We present the concept of network organizational structure and discuss how this can improve collaboration and communication. The main tools to achieve a structural transformation from the more traditional form of team organization to the fairer network form, and their implications are discussed.     

Applause as an achievement‐based reward during a computerised self‐assessment test

Affective feedback during a self‐assessment test could help induce the learner to an optimal emotional state regarding the learning material. However, there is a lack of experimental evidence concerning the influence of affective feedback during a self‐assessment test. This paper is a step towards this direction. The effect of achievement‐based reward feedback on students' state and trait anxiety was examined. Ninety‐two students participated in an experiment. Half of these students received an applause sound after a correct answer to a question. Results highlight gender differences concerning this emotional type of feedback.     

Abandoning innovation activities and performance: The moderating role of openness

Firms are encouraged to continually initiate innovation activities as part of their new product development processes and to be open to the use of external knowledge sources. Yet, many are abandoned. Openness to external knowledge sources and the experience of abandoning innovation activities are, therefore, becoming a part of an organization’s reality and innovation strategy. In this paper, we aim to explore how the experience of having abandoned an innovation activity can affect innovation performance and the role two key dimensions of openness, external search breadth and formal innovation collaboration breadth, play. Using data from the UK Innovation Survey, we find that the experience of having abandoned an innovation activity leads to improved innovation performance and that this is negatively moderated by the two dimensions of openness. When external search breadth is high, i.e. when an organization engages with a higher number of different types of knowledge sources, the link between abandoning innovation activities and innovation performance weakens. Similarly, when formal innovation collaboration breadth is high, i.e. the breadth of a firm’s formal collaboration relationships is high, the link between abandoning innovation activities and innovation performance also weakens. We conclude by discussing the theoretical and practical implications of our findings.     

Transforming “Ecosystem” from a Scientific Concept into a Teachable Topic: Philosophy and History of Ecology Informs Science Textbook Analysis

This study conducts a textbook analysis in the frame of the following working hypothesis: The transformation of scientific knowledge into school knowledge is expected to reproduce the problems encountered with the scientific knowledge itself or generate additional problems, which may both induce misconceptions in textbook users. Specifically, we describe four epistemological problems associated with how the concept of “ecosystem” is elaborated within ecological science and we examine how each problem is reproduced in the biology textbook utilized by Greek students in the 12th grade and the resulting teacher and student misunderstandings that may occur. Our research demonstrates that the authors of the textbook address these problems by appealing simultaneously to holistic and reductionist ideas. This results in a meaningless and confused depiction of “ecosystem” and may provoke many serious misconceptions on the part of textbook users, for example, that an ecosystem is a system that can be applied to every set of interrelated ecological objects irrespective of the organizational level to which these entities belong or how these entities are related to each other. The implications of these phenomena for science education research are discussed from a perspective that stresses the role of background assumptions in the understanding of declarative knowledge.     

History of Science and Conceptual Change: The Formation of Shadows by Extended Light Sources

This study investigates the effectiveness of a teaching conflict procedure whose purpose was the transformation of the representations of 12–16-year-old pupils in Greece concerning light emission and shadow formation by extended light sources. The changes observed during the children’s effort to destabilize and reorganise their representations towards a model that was compatible with the respective scientific model were studied using three groups of pupils belonging to different age groups. The methodological plan implemented was based on input from the History of Science, while the parameters of the geometrical optics model were derived from Kepler’s relevant historic experiment. The effectiveness of the teaching procedure was evaluated 2 weeks after the intervention. The results showed that the majority of the subjects accepted the model of geometrical optics, i.e. the pupils were able to correctly predict and adequately justify the experimental results based on the principle of punctiform light emission. Educational and research implications are discussed.     

Computer-Supported Collaborative Concept Mapping: Study of Synchronous Peer Interaction

The paper studies undergraduate students' synchronous peer interaction using a shared Activity Space and a text communication tool. Several groups of students collaborated in order to accomplish a data-modelling task in the context of a Databases University undergraduate course. The paper presents the collaboration support environment, i.e. a concept-mapping tool, used in this study. Subsequently, evaluation of the effectiveness of the environment in the educational process is discussed along various dimensions, like group synthesis, task control, content of communication, roles of the students and the effect of the tools used. Special emphasis is given in the ways the tools and the representations used complement each other and support the process. A discussion on the use of computer-supported collaborative problem solving environments is also included.     

An investigation of the effectiveness of computer simulation programs as tutorial tools for teaching population ecology at university

In this paper, we tested the effectiveness of computer simulation programs in enhancing the familiarity of biology students with ecological modelling and ecological concepts. We compared students' performance before and after the introduction of computer simulations into the teaching procedure. Computer simulations improved the comprehension of ecological processes expressed in mathematical form, but they do not allow a full understanding of ecological concepts. Thus, a balanced teaching procedure, involving both simulation programs and textbook-based lectures, is considered more appropriate for the teaching of ecological theory.