The Sustainability of University-Business Innovation Clusters: The Case of IoT Rapid-Proto Labs

Abstract

The objective of this study is to identify sources of support for the IoT Rapid-Proto Labs to enable the success and sustainability of the project. This study is done for the European transnational multidisciplinary project IoT Rapid-Proto Labs, which seeks to accelerate Internet of Things (IoT) product development by bringing together higher education institutions and businesses and to develop students the multidisciplinary skills most companies feel they currently lack. The IoT Rapid-Proto Labs is coordinated by Haaga-Helia University of Applied Sciences and funded by European Union Erasmus+ Knowledge Alliance Programme until the end of 2020. The main research problem in form of a question is: What are the sources of support within the IoT industry available for the IoT Rapid-Proto Labs project after EU project funding ends in 2020? The theoretical framework of this study is based on University-Business Innovation Clusters, which is supported by the paradigm of Open Innovation. Different actors of University-Business innovation clusters and the relationships between them are studied, as well as the factors and impediments to success and sustainability and the different funding and financing options and models. The IoT market space is also studied to identify the different stakeholders who are active in the development of the industry, and to explain the sources of funding and support which are available for developing and commercializing the sector. The study was executed with action research and data was gathered using qualitative research method including literature review and seven semi-structured expert interviews. The findings indicate that IoT Rapid-Proto Labs already possesses many of the requirements University-Business innovation clusters need to be successful and sustainable. It offers the students, industry, and market relevant knowledge and solutions thus contributing to the competitiveness of the European market. The project could seek new industrial and business partners to strengthen the collaboration, broaden the solutions portfolio and the geographical area of operation. The findings suggest that a change in the funding model is needed, as multiple financing sources would support the sustainability of the innovation cluster. In conclusion, this research reached the set objectives and offers insights on the IoT market and the importance of University-Business collaboration and the factors contributing to its success and sustainability.