Managing Life Science Innovations in Public Research Through Holistic Performance Measures

Abstract

Addressing the innovation gap is today considered the third task for public research organizations (PROs) in addition to their traditional tasks of research and teaching. Thus, PROs need to adapt their strategies and research management organization so that more innovative ideas from research will enter the market for the benefit of society. Innovation can thus be defined as value-creating novelties. The commercialization of research results is usually managed through technology transfer offices (TTOs), serving as an interface to industry. How PROs create value is increasingly subject to performance measurement and performance-based budgeting. Applying holistic measures will help adjust the overall strategy of the PRO in the direction of innovation and balance multiple interests and goals. Holistic performance measurement is based on the four dimensions of the decision-oriented model of research production (input, processes, output, and outcome) corresponding to the pillars of innovation. In this model, patenting is a key innovation process in academic life sciences that arises from the co-production between researchers and TTOs.