How the effect of opportunity discovery on innovation outcome differs between DIY laboratories and public research institutes: The role of industry turbulence and knowledge generation in the case of Singapore

Abstract

In the recent decade, knowledge diffusion channels from universities and public research institutes to industry using open innovation have expanded to open science in the form of Do-It-Yourself laboratories proliferating worldwide. Despite the significance of open science and open innovation in Science, Technology and Innovation policy, empirical studies on the open processes in Do-It-Yourself laboratories and public research institutes are limited. This study examines how both institutions discover and develop opportunities. Based on an empirical study of 164 and 189 technology commercialization projects undertaken by resident firms at Do-It-Yourself laboratories and by public research institutes with companies, respectively, in Singapore, we found the relationship between opportunity discovery and innovation outcome is positively linear in Do-It-Yourself laboratories, but U-shaped in public research institutes. We establish that project type moderates the relationship in such a way that at low level of opportunity discovery, public research institutes are likely to achieve higher innovation outcome than Do-It-Yourself laboratories; while at high level of opportunity discovery, public research institutes are likely to achieve lower innovation outcome than Do-It-Yourself laboratories. Our findings also indicate industry turbulence moderates the relationship differently between public research institutes and Do-It-Yourself laboratories, while knowledge generation mediates the relationship in both institutions.