Unchallenged Assumptions About Innovation Meet Shibboleths of University Tech Transfer

Abstract

We begin by noting that many of the scholarly articles about innovation start with an unchallenged assumption about the economic benefits of innovation. Typical of such an opening statement is: “Innovation drives economic growth. Economic growth leads to longer, healthier lives by transforming yesterday’s luxuries into better, cheaper, and more efficient goods and services.” (Proof of Concept Centers: Accelerating the Commercialization of University Innovation, January 2008).

There are two misleading impressions obtained from this type of unchallenged assumption made by scholars whose authority as experts is relied upon by non-experts. First, innovation as an activity does not lead to any type of economic activity without market demand. Second, the creation of market demand occurs over a period of years, not instantaneously, as depicted by the image of the Walraisian auctioneer.

There is a logical sequence of events that must occur over a period of time that are contingent upon market forces before innovation leads to beneficial economic growth. Many academic writers tend to condense this period of time into an instantaneous moment. This unchallenged assumption seems particularly virulent in the writings about the social and economic value of university tech transfer programs.

Keywords: technology innovation, technology transfer

JEL Classification: O31