The Dynamics of Technology Transfer in a Catching-up Innovation System: Empirical Evidence and Actor Perceptions from the Estonian Biotechnology Sector

Based on the case studies from the Estonian biotechnology sector, we explore the development trajectories of academic business ventures in a country where the formal and linear model of technology transfer and commercialization have been at the core of the innovation policy, but the exploitation and diffusion of knowledge generated through formal university-industry linkages has remained limited. We show that even in the area of biotechnology, where one could expect this model of technology transfer to be most visible, the model is not functioning in practice and the policy has had limited impact. The more systemic evolutionary approach to innovation and knowledge diffusion seems to better grasp the contextual aspects of technology transfer in catching-up context, while also providing more informative input for policy-making.