Into the valley of death: research to innovation

The phase between research and successful innovation is known as the valley of death. Increasingly, researchers from the pharmaceutical industry and academia are working together, often encouraged by governments, to cross this ‘valley’ as they seek to bring basic research to the market. This is consistent with newer models of innovation policy that stress interaction between the different agents across the innovation process. Here, we examine this interaction in the UK, the EU and the USA using several specific examples, suggesting that cooperation is still far from perfect and that the return for academia on its research investment is relatively small. Countries are also beginning to use research as a tool of industrial economic policy.

► Case studies relating to university research illustrate the process of innovation.
► Research funders are largely acting in accordance with a linear model of innovation.
► Research funders are beginning to embrace new interactive models of innovation.
► Governments are beginning to use academic research as a tool of industrial policy.
► The financial returns universities make on their research tend to be small.