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Archives of Business Research – Vol. 9, No. 6
Publication Date: June 25, 2021
DOI:10.14738/abr.96.10442. Carvalho, S. M. S., & Aranha, E. A. (2021). Innovation Law and Policy and Business Model. Archives of Business Research, 9(6). 242-
255.
Services for Science and Education – United Kingdom
Innovation Law and Policy and Business Model
Sônia Marise Salles Carvalho
University of Brasilia
Campus Universitário Darcy Ribeiro - Brasília – Brazil
Elzo Alves Aranha
Production Engineering and Management Institute
Federal University of Itajubá, Minas Gerais, Brazil
ABSTRACT
The objective of the research is twofold: a) to explore the law innovation and policy
(ILP) in connection with the business model (BM) seeking to identify the main
elements; b) to structure a set of key aspects based on the elements identified in the
connections between ILP and BM. Next, we intend to apply the key aspects proposed
in a Brazilian federal public university. The research is exploratory, qualitative,
based on a case study. The findingss obtained point to six key aspects: value as a
unit of analysis, value segment, systemic perspective, alignment among dimensions,
balance between supply and demand and new configuration pattern. The findings
obtained are innovative and contribute to fill the gap in the academic literature of
ILP and BM. The findings have three practical implications, for strategic leaders of
higher education institution (HEI), coordinators and professors of HEI and the
federal government.
Keywords: Innovation; Law; Policy; Business model; Higher education; University; Value
creating; value Capturing
INTRODUCTION
Innovation law and policy (ILP) and business model (BM) are two themes that have been
growing the interest of scholars and practitioners every year at global level. Several academic
papers investigate ILP and BM. ILP is focused on studying innovation policies and BM focuses
on an organizational configuration based on the logic of creating and capturing value. However,
ILP and BM are two themes that are isolated and far apart in literature review.
In the ILP field academic papers demonstrates the interest of scholars [1-5]. The ILP has
mechanisms and instruments to foster systems of innovation, research, development and
investments in advanced technologies that can induce the change of the economy of nations,
into an economy based on innovation, seeking to pursue economic and social prosperity [6-7].
The academic analyzes of ILP have been developed linked with several other themes. Among
the academic analyzes of ILP we highlight the connections and links with the design of public
policies of the European Union for the future [2], the importance of induced regulation for
sustainable development [8], alignment with social welfare [9], open innovation [10], gender
[11] and creation and diffusion of innovation [12], new roles of universities in regional
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Carvalho, S. M. S., & Aranha, E. A. (2021). Innovation Law and Policy and Business Model. Archives of Business Research, 9(6). 242-255.
URL: http://dx.doi.org/10.14738/abr.96.10442
innovation systems [13], and contributions from universities for innovation, regional growth
and employment [14].
Although ILP academic analyzes establish connections and interfaces with innovation in
companies, small and medium businesses and new business creation, there is a gap in the
academic literature, between ILP and BM, particularly with BM at university (HEI) [15-16].The
BM establishes the logic of creating value and capturing value of an organization, represented
by a set of interrelated components that is addressed to the dimensions of the customer, value
proposition, value configuration, organizational architecture and economic [17-18]. The BM
emphasizes the notion of value that involves the processes of understanding value, creating
value, capturing value and delivering superior value to the customer [19].
The preliminary survey carried out by the authors in the ILP academic literature identified that
academic paper seeking to explore the connections between ILP and BM is incipient.
Particularly when the research focus is between ILP and BM in public HEI. ILP is far from BM in
academic literature. The lack of academic articles of ILP and BM, focusing on public HEI exposes
a gap in the academic literature that needs to be investigated, due to the transformations that
are occurring in the BM of universities [20-22].
In this direction, the present research is guided by the following basic question: What are the
key aspects in the connections between innovation law and policy and business model, focusing
on higher education institutions? The research objective is twofold: a) to explore the ILP and
BM seeking to identify the main elements; b) to structure a set of key aspects based on the
identified elements, in the connections between ILP and BM. Next, it is intended to apply the
key aspects in a Brazilian federal public university.
The study is structured in five sections. The first section contains the introduction. In the second
section is the ILP and BM literature review. In third section has key aspects, the connections
between ILP and BM. In the fourth section are methods and techniques. In the fifth section the
case study analyzed and the sixth section is data analysis. The seventh section are the findings
and in the last section are the final considerations.
LITERATURE REVIEW
Innovation Law and Policy
Radosevic [1] develops the academic analysis of ILP and distinguishes four research lines:
innovation policies of economic development, innovation policy theory, innovation system and
innovation policy evaluation. Based on the four main areas identified by Radosevic [1] and ILP
literature review, it is possible to explore some elements that are directly involved with ILP.
Among the ILP elements, there are segments interested in innovation, sources of resources,
national and international partnerships, creation of new organizations and organizational
restructuring, intellectual property, technology transfer and transfer of scientific knowledge,
simplification and efficiency of administrative and financial processes.
The first element analyzed is the segments interested in innovation. ILP enables long-term
structural changes in the economy of nations, impacting the most varied organizations and
society as a whole, among which are business, non-business, governmental organizations,
universities, research and development organizations [8-9-13-15]. Therefore, ILP is addressed
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Services for Science and Education – United Kingdom
to the most varied organizations that integrate the different organizational segments of society
interested in innovation.
The second element concerns investments and sources of funds. Public investments are a
priority to capture scientific and technological opportunities, paving the way for private
investments and accelerating the nation's economic growth [23]. The writing of a guideline to
guide developed and developing countries to incorporate innovation highlights the different
segments that, with mutual interference, are able to generate sources of resources and optimize
spending on the implementation of innovation. This guideline presents empirical evidence,
typologies and efficient instruments in public policies [5].
One of the possibilities of a source of resources for innovation was pointed out by studies on
the comparison of indexes between the countries of Turkey and South Korea, based on reports
from the Global Innovation Index between 2007 and 2015 and which showed evidence between
innovation and development, using macroeconomic and microeconomic factors, such as GDP /
capital, R&D spending, trade international [6].
The third element is the national and international partnerships foreseen in the ILP that allow,
to expand the possibilities of cooperation in the field of innovation. Some strategies were
pointed out in the book 'Law and policy of innovation in the European Union' [2]. These
strategies reinforce three actions. First, the need for interactive governance, simplicity in the
sharing and commercialization of knowledge and technology among countries. Second, show
the relevance of national and international partnerships to enhance the technology transfer.
Third the simplification and efficiency of administrative and financial processes.
ILP instruments and mechanisms encourage the creation of new organizations and
organizational restructuring. The fourth element is related to creating new organizations and
organizational restructuring. The creation of organizations, nucleus and support centers for the
innovation system and restructuring of organizations are involved in order to develop the
management of the innovation system. There several kind of organizational structures, for
instance, the creation of nucleus and centers of innovation support for innovation, technology
transfer and diffusion of innovation [5].
The fifth element is intellectual property [24]. Countries in search of prosperity in the face of
accelerated technological development and intense economic competition must value
innovation and relate it to the country's social development conditions. The sixth element
involves the technology transfer and the transfer of scientific knowledge [12-25]. Innovation
requires efficient ways of technology transfer, scientific knowledge transfer. A good example
has been the practice of open innovation as an example in Spain presents the way the country
reinforces the interaction between academia, government and company [10].
The seventh element involves the mechanisms and instruments of the ILP aiming at the
efficiency of the administrative and financial processes of the management of the innovation
systems and the benefits generated by the innovation products in the organization.