research policy EI_,SEVIER Research Policy 26 (1997) 263-281 New, technology-based firms in innovation networks symplectic and generative impacts E. Autio Institute ~f Strategy and International Business, Helsinki Unicersity of Technology, O[fice U 515, Omkaari IF, 02150 Espoo, Finland Revised 8 July 1996 Abstract The traditional body of research on new, technology-based firms reflects the linear sequential view of the technological innovation process. The ~modern' innovation theory views the innovation process as a complex, iterative process, that is essentially systemic in character. The systemic view of the technological innovation process largely remains to be implemented in research on new, technology-based firms. The present study represents an attempt to bridge this gap, by applying a systemic approach to research on new, technology-based firms. The empirical part of the present study develops and empirically tests a model that classifies new, technology-based firms into science-based firms and engineering-based firms. The two categories are defined in terms of the functional relationship between the new, technology-based firm and the articulation process of basic technologies. In the model, new, technology- based firms are analyzed in terms of the systemic knowledge conversion process to which they are attached. The model receives support in three empirical databases, compiled among new, technology-based firms in Finland, the United Kingdom, and Silicon Valley. The analysis of the Silicon Valley database is the first ever systematic survey of the spin-off firms of Stanford University. © 1997 Elsevier Science B.V. Kevwords: New, technology-based firms; Technological innovation; Innovation theory: Innovation networks: Technological systems syn- or sym- prefix [fr Gk syn with, together with] plectic [fr Gk plekein to braid, to form (three or more strands) into a braid] symOplectic adL, having the capacity of braiding together l. Introduction The present study develops and applies a systemic approach to research on new, technology-based firms. New, technology-based firms are viewed from the resource-based perspective (Penrose, 1959; Rumelt, 1984; Wernerfelt, 1984; Winter, 1987; Conner, 1991; Foss, 1993) as bundles of technological resources. It will be contended that the traditional body of re- search on new, technology-based firms largely re- flects a linear model of the spin-off process of these firms (see studies summarized in Roberts, 1991a). This linear model, for its part, largely reflects the linear sequential model of technological innovation. The linear model of the spin-off process of new, technology-based firms can be summarized as fol- lows: 1. a technology-based idea is generated; 2. a new firm is established to exploit the new idea; 0048-7333/97/$17.00 © 1997 Elsevier Science B.V. All rights reserved. PII S0048-7333(96)00906-7