Basic research is a fundamental source for innovation and growth, leading to substantial economic and cultural value. The firms, institutions and individuals involved in basic research potentially appropriate substantial financial returns. At the same time, basic research implies a high degree of uncertainty, ambiguity, complexity and unpredictability, which makes the successful realization of such returns very difficult. As a consequence, attracting, generating and allocating the financial resources necessary to do basic research is a major challenge in most industries. But: “What are viable business models for basic research?”
Although basic research thus provides interesting opportunities for the realization of financial profit, it is seen as a public and governmental responsibility, due to the inherent uncertainties, the public relevance and the national interests involved. However, the financial situation of the public institutions and governmental organizations is precarious today. At the same time, innovation and growth based on basic research is seen as increasingly important for firms and institutions to succeed in the highly competitive and dynamic business environment today.
The RISE leadership session explored alternative models for attracting, generating and allocating the financial resources necessary to facilitate basic research, in the sciences, in technology, in management, and in art. This exploration of possible business models for basic research will be launched by personalities who cover various innovative aspects of this theme:
Stefan Arn, Ernst & Young Entrepreneur of the Year 2003, founder and CEO, Adnovum Informatik AG, probably the most successful Swiss software engineering company. Adnovum successfully transforms outstanding technological expertise and leading edge knowledge into robust, reliable customer-specific software. While the entire industry shrank in the last few years, Adnovum grew over 30% within the same time period (→ AdNovum).
agent.ZAI, founder and CEO of etoy, a pioneer in media art. etoy gained international recognition with highly recognized initiatives, like “digital hijack” (prix ars electronica) and “toywar” (trademark battle against eToys). etoy is structured as a firm and financed through the etoy.SHAREHOLDER concept. One of their core investors is the venture capitalist Joi Ito, who will also participate in the session (→ etoy and → Joi Ito).
Dr. Simon Grand, founder and academic director, RISE Research Center for Innovation, Strategy and Entrepreneurship, University of St. Gallen HSG. The research center it financed by a series of technology corporations (like Adnovum, Altana, Hewlett Packard, PriceWaterhouseCoopers, and Hoffmann La Roche), and conducts basic management research on the commercialization of science and technology, with an empirical focus on information technology and biotechnology. (→ RISE).
The RISE leadership session challenged unquestioned pre-judgments and explored controversial propositions about the successful attraction, generation and allocation of financial resources for basic research, as well as introduced concepts and business models relevant for the financing of basic research within corporations and academic institutions.