Business Environment Institutions as a Catalyst for Knowledge and Technology Transfer

Abstract

Knowledge and innovation are key resources of the modern economy. Innovation, transfer, and use of knowledge determine the pace and level of economic development. The ability to transform knowledge into new technologies, products, services, marketing methods, and organizational solutions is both the basis of entrepreneurship and building a competitive advantage that increases the enterprise’s chances of maintaining its market position. However, the market commercialization of new knowledge in the form of cutting-edge technological solutions or new products is a complex process with a high risk of failure, thus requiring appropriate and different competencies. Moreover, there are numerous barriers at the point of contact between the worlds of science and business that significantly impede joint work on innovative projects. Therefore, specialized entities have emerged to transfer knowledge and technology from science to the economy. These entities organize the knowledge flow from entities that have to those that seek knowledge. A professional institutional base in this regard is developed by innovation and entrepreneurship centers that partner with both private and public sectors. These centers act as a catalyst for the flow of knowledge and are responsible for building a platform for dialogue and cooperation between science and business, thereby providing conditions for improving the efficiency of knowledge and technology transfer. Their activities are aimed at meeting the needs of entrepreneurs primarily related to the development of innovation, promotion of experimental activities, technology transfer and commercialization of knowledge, and improvement of competitiveness based on new technological solutions. The aim of the present paper is to indicate the importance of business environment institutions to the transfer of knowledge and technology between science and business.