Urban Policy Response to Radical Innovation in Sustainable Energy: The Case of University Spin-Offs and Local Triple Helix Interaction

Abstract

This paper pictures several risk-taking strategies of young high-tech firms in bringing energy inventions to market and ways urban policy (municipalities) may provide supporting facilities and help accelerate the energy transition. Derived from a longitudinal study of 100 firms in northwest Europe, two findings contribute to practice. Firstly<em>,</em> a share of almost 40 percent of university spin-off firms fails in the market introduction; if the market introduction is reached, 30 percent is relatively late. This development calls for attention to acceleration and risk-taking concerns. However, risk-taking firm strategies, like targeting radical inventions and new markets, tend to hamper early market introduction. Secondly, urban policy supports filling risk-related needs, particularly in large metropolitan networks. Cities (municipalities) may act as launching customers and provide sites and organizations for practical experimentation (e.g., in living labs) alongside steering on cross-faculty application platforms at the university that also connect with city functions. Cities’ initiatives, however, tend to be fragmented and miss priority. Partnering in Triple Helix networks with local universities and businesses may improve the situation, for example, by priority setting, better alignment, and integration. The urban policy also has a role in improving broader conditions, particularly the attraction of related R&D firms to the city/region and the attraction and retention of top-class researchers.