Keith Pavitt

Knowledge Specialization, Organizational Coupling, and the Boundaries of the Firm: Why Do Firms Know More than They Make?

This paper uses an analysis of developments in aircraft engine control systems to explore the implications of specialization in knowledge production for the organization and the boundaries of the firm. We argue that the definition of boundaries of the firm in terms of the activities performed in house does not take into account that decisions to outsource production and other functions are different from decisions to outsource technological knowledge. We show that multitechnology firms need to have knowledge in excess of what they need for what they make, to cope with imbalances caused by uneven rates of development in the technologies on which they rely and with unpredictable product-level interdependences. By knowing more, multitechnology firms can coordinate loosely coupled networks of suppliers of equipment, components, and specialized knowledge and maintain a capability for systems integration. Networks enable them to benefit from the advantages of both integration and specialization. Examples from other industries extend to other contexts the model we develop.

Research and Development in Organizations

The steady increase in research and development (R & D) activities in modernizing societies reflects increasing specialization and professionalization in the creation of the knowledge that underlies inventions and innovations in products, processes, services, and in related systems of organization. Functionally specialized R & D departments emerged in business firms in the nineteenth century, as did complementary and more theoretical R & D activities and training in universities and related institutions. National R & D expenditures have increased with national income per head, as has the share funded and performed by business firms. However, these R & D activities are only one aspect of the invention and innovation process; a variety of other science and technology indicators have been developed and are now applied in order to reduce risks associated with bringing a product through the stages of R & D to market. Major contemporary problems in R & D relate to increasing complexity, increasing internationalization and localization, the changing role of academic research, and the barriers imposed by intellectual property protection (especially patents).

Ivory Bridges (Book)

A study of two bridges between science and society: governmental science policy and scientists voluntary public-interest associations. According to a widespread stereotype, scientists occupy an ivory tower, isolated from other parts of society. To some extent this is true, and the resulting freedom to pursue curiosity-driven research has made possible extraordinary scientific advances. The spinoffs of pure science, however, have also had powerful impacts on society, and the potential for future impacts is even greater. The public and many policymakers, as well as many researchers, have paid insufficient attention to the mechanisms for interchange between science and society that have developed since World War II. Ivory Bridges examines two such mechanisms: governmental science policy (often involving the participation of scientist administrators) and scientists voluntary public-interest associations. The examination of science policy is guided by the notion of Jeffersonian science -- -defined as basic research on topics identified as being in the national interest. The book illustrates the concept with a historical case study of the Press-Carter Initiative of the late 1970s and proposes that a Jeffersonian approach would make a valuable addition to future science policy. The book also looks at the activities of citizen-scientists who have organized themselves to promote the welfare of society. It shows that their numerous and diverse organizations have made major contributions to the commonweal and that they have helped to prevent science from becoming either too subservient to government or too autonomous. An extensive appendix profiles a wide variety of these organizations.Whilst scientific discoveries and their application are amongst the most fundamental features shaping modern societies, scientists themselves are often perceived as working in ivory towers-namely, university laboratories-completely isolated from other parts of society. In this slim volume, Gerhard Sonnert and Gerald Holton set out to correct this perception. The former is a sociologist of science, the latter a physicist and historian of science, and both are members of the Department of Physics at Harvard University. They show through examples that scientists are heavily involved in the outside world, both through advising on government science policies and through participating in voluntary public-interest associations. They argue that the government advisory role can lead to conflicts between scientists own professional judgement and what the government ultimately decides, which is why some scientists prefer to work through voluntary interest groups-although the same problem can arise here, too.