The experience, in the 1970s and 1980s, of IDEON Science Park, located
at Lund University, Sweden, illustrates the type of forces that shape
d the institutional design of a science park. We review the literature
on science parks and their evaluation, outlining the role of consulti
ng and service firms. IDEON is a 'technology window' with governance r
ules which reduce the transaction cost at the industry-university inte
rface. IDEON's experience and its 'incubator role' reinforce the role
and function of service firms. Its organizational design overcomes mar
ket imperfections, reducing the costs of the innovation process. IDEON
is an institutional innovation which extrapolates traditional evaluat
ion parameters.