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Case Ferrieten 1933 Creating an Agricultural Research Network: Irradiation of Plants with Artificial Light at Philips Research in the 1930s Kees Boersma This paper tells the story of a networking activity of Philips’ researchers in the inter-war period. Holst, the director of Philips Research (in Dutch: Natuurkundig Laboratorium) at the time, became involved in an agricultural research network with partners from the universities, the Dutch government, standardization committees, and growers. Building upon social-network and organization theories, I show that this activity was an opportunity for the Physics Lab researchers to keep in touch with scientific circles. Philips offered money and knowledge to Johannes Roodenburg, a biologist, who initiated the network-activities by starting research programs on artificial lighting of plants. As a result of the economic crisis and disappointing sales results, Holst cut back financial support at the end of the 1930s. It was only after the Second World War that Philips gave agricultural research a renewed impetus, but within a new research-context. Historical research has shown that the establishment of industrial laboratories is an important element in the technological development process of the twentieth century. The outcomes of industrial, scientific research are often conceived as one of the driving forces of economic growth.1 In the first decades of the twentieth century, several industrial I thank the participants of the session “Research and Development in the Netherlands and France” at the Business History Conference in Le Creusot, France, 17-19 June 2004: Mila Davids, Gabriel Galvarez-Behar, Karen Freeze, and Ernst Homburg for a useful discussion. 1 See Joel Mokyr, The Lever of Riches: Technological Creativity and Economic Progress (New York, 1990); and David C. Mowery and Nathan Rosenberg, Technology and the Persuit of Economic Growth (Cambridge, U.K., 1989), and Richard R. Nelson, The Sources of Economic Growth (Cambridge, Mass., 1996), 114-8. The knowledge-creation process in R&D (Research & Development) settings has more than once been described as the heart of the whole complex of Kees Boersma is in the Faculty of Social Sciences, Department of Culture, Organization and Management, Vrije Universiteit Amsterdam, [email protected]. © Business History Conference, 2004. All rights reserved. URL: http://www.thebhc.org/publications/BEHonline/2004/Boersma.pdf Kees Boersma // Creating an Agricultural Research Network 2 firms in America and Europe established in-house research departments and consciously sought to provide themselves with up-to-date knowledge. Thus far, historians have studied how individuals established the stable, internal company structures needed for research activities.2 Thus, the focus has been on individual activities and strategies that have resulted in the institutionalization of the industrial research department.3 At the same time, these historical studies make clear that the intensified (and complex) relationship between science, technology, and product organization was not a linear process from industrial firms to the market. Broader social demands, interest groups, and consumers in society also guided such processes. Cooperation among firms, universities, and interests groups has resulted in knowledge-intensive networks. Industrial researchers not only developed internal structures for research activities, but also pro-actions and reactions vis-à-vis the environment, transcending the laboratory’s boundaries. Industrial research organization became embedded in a wider technical, social, economic, and political context. Doing research in an industrial setting was a networking activity. This raises the question of how the historian can understand, describe, and analyze industrial research networks. While historians typically focus on the activities of scientists and technologist within the research and development (R&D) setting, I focus on broader networks of researchers and research institutions. Today, many social scientists, in particular those engaged in organization studies, use different theories to understand the implications of social networks. Within current social science theory, concepts such as network externalities, business networks, national systems of innovation, and actor-network theories, have emerged for understanding and explaining networking activities.4 In-depth historical studies of the knowledge attributes involved and of the characteristics of the innovation process itself, have contributed to the analysis of internalization’s role of in the evolution of firms’ capabilities. The knowledge-based view of the firm emphasizes that the accumulation and application of knowledge builds organizational capabilities.5 From a resource-based perspective, partnerships are driven by strategic resource needs. These resources can innovation; see Christopher Freeman and Luc Soete, The Economics of Industrial Innovation (London, 1997), 5. 2 Michael A. Dennis, “Accounting for Research: New Histories of Corporate Laboratories and the Social History of American Science,” Social Studies of Science 17 (1987): 479-518. 3 David A. Hounshell, “The Evolution of Industrial Research in the United States,” in Engines of Innovation: U.S. Industrial Research at the End of an Era, ed. Richard S. Rosenbloom and William J. Spencer (Boston, Mass., 1996), 13-84. 4 W. Richard Scott, Organizations: Rational, Natural, and Open Systems (Englewood Cliffs, New Jersey, 1998). 5 Robert Grant, “Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal 17 (Winter 1996): 109-122. Kees Boersma // Creating an Agricultural Research Network 3 be found inside and outside the firm. Examining the networks that constitute the firm, and the inter-organizational networks in which the firm is embedded, can help us understand the firm’s strategic choices.6 Sociologist Mark Granovetter’s contribution is especially important in social network analyses.7 In his theory, Granovetter tries to map patterns of individual social partners’ relationships, for example within and between firms. In his view those contacts can expand into durable social networks of both individuals and institutions. It is especially the contacts with other networks (the so-called weak ties) that provide individuals with new knowledge.8 Strong ties are the network relationships between people in close contact with each other (for example, colleagues within a laboratory). Weak ties will bridge certain cliques (such as homogeneous networks with internal-focused members) and permit organized action by collective members. The concepts of strong and weak ties enable us to understand network enrollment. Without the use of weak ties, the overall structure of the collective would be fragmented. This does not mean, however, that each network will become well- balanced and stable. In accordance with the contingency approach, the idea of a coordinated, balanced network is irrelevant here.9 Organizational contingency frameworks involve coordination mechanisms based on information exchange. The information exchange within a network can become an effective coordination mechanism if partners adjust their cognitive frameworks and develop a joint goal. However, these cognitive frameworks and goals can be changed over time by external circumstances and/or strategic choices inside the firm. The question here is to investigate the mix between strong and weak ties in an R&D network at any given time and to study how the network’s choices and actions made it subject to change. In this paper, I use the notion of networking behavior with respect to the firm’s research activities to illustrate strategies at the Dutch 6 Martin Kildruf and Wenpin Tsai, Social Networks and Organizations (London, 2003). 7 Mark Granovetter, “Economic Institutions as Social Constructions: A Framework for Analysis,” Acta Sociologica 35 (Fall 1992): 3-11. Granovetter’s theory has proven useful in business historical research; see Doreen Arnoldus, Family, Family Firm, and Strategy (Amsterdam, 2002). 8 Mark Granovetter, “The Strength of Weak Ties,” American Journal of Sociology 78 (Winter 1973): 1360-80. 9 John Child, “Strategic Choice in the Analysis of Action, Structure, Organizations and Environment: Retrospect and Prospect,” Organization Studies 18 (Jan. 1997): 43-76; and Norman Jackson and Pippa Carter, Rethinking Organisational Behaviour (London, 2000). Kees Boersma // Creating an Agricultural Research Network 4 multinational Philips.10 The major empirical question is: how did a small amount of agricultural research activity at Philips become part of a bigger network of partners from industry, the Dutch government, the scientific community, and clients? Although the network enabled researchers to develop new ideas, the story also shows that tensions grew within the network because the aims and goals of the individual participants were not always compatible. Philips’ participation in this network in the 1930s was not a straightforward matter, but, rather, the result of numerous negotiations. In sum, in this paper I trace how Philips’ researchers got involved in the network of agricultural research institutes in the 1930s and how this network developed over the years. Research at the Philips Research Lab, 1914-1940 Gerard Philips, whose research department is the focus of this paper, established the Philips company as a light bulb company in the Netherlands in 1891.11 Production levels of the incandescent lamps made by Philips increased constantly: 75,000 lamps
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