IDEAS home Printed from https://ideas.repec.org/p/hhs/cesisp/0021.html
   My bibliography  Save this paper

Does Knowledge Diffusion between University and Industry Increase Innovativeness?

Author

Listed:
  • Lööf, Hans

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Broström, Anders

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

This paper rigorously explores the impact of firm’s collaboration with universities on innovation. Specifically, using a representative dataset of manufacturing and service firms we have applied recent matching techniques to examine the hypotheses that whether academic knowledge has a positive impact on innovative sales and the propensity to apply for patents. Econometrically, the paper illustrates the differences that emerge from different matching estimators and samples. On balance, we find robust evidence that university collaboration positively influences innovative performance for large manufacturing firms. In contrast, whatever estimator is chosen, the data show no significant association between university collaboration and the average service firm’s innovation sales or propensity to apply for patents.

Suggested Citation

  • Lööf, Hans & Broström, Anders, 2004. "Does Knowledge Diffusion between University and Industry Increase Innovativeness?," Working Paper Series in Economics and Institutions of Innovation 21, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies, revised 26 Jan 2006.
    • Handle: RePEc:hhs:cesisp:0021
    as

    Download full text from publisher

    File URL: https://static.sys.kth.se/itm/wp/cesis/cesiswp21.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Michael Lechner, 2002. "Program Heterogeneity And Propensity Score Matching: An Application To The Evaluation Of Active Labor Market Policies," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 205-220, May.
    2. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    3. Hagedoorn, John & Link, Albert N. & Vonortas, Nicholas S., 2000. "Research partnerships1," Research Policy, Elsevier, vol. 29(4-5), pages 567-586, April.
    4. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    5. Bronwyn H. HALL, 2004. "University-Industry Research Partnerships in the United States," Economics Working Papers ECO2004/14, European University Institute.
    6. Mansfield, Edwin, 1998. "Academic research and industrial innovation: An update of empirical findings1," Research Policy, Elsevier, vol. 26(7-8), pages 773-776, April.
    7. Staffan Jacobsson, 2002. "Universities and industrial transformation: An interpretative and selective literature study with special emphasis on Sweden," SPRU Working Paper Series 81, SPRU - Science Policy Research Unit, University of Sussex Business School.
    8. Beise, Marian & Stahl, Harald, 1999. "Public research and industrial innovations in Germany," Research Policy, Elsevier, vol. 28(4), pages 397-422, April.
    9. James D. Adams, 2002. "Comparative localization of academic and industrial spillovers," Journal of Economic Geography, Oxford University Press, vol. 2(3), pages 253-278, July.
    10. Hall, Bronwyn H & Link, Albert N & Scott, John T, 2001. "Barriers Inhibiting Industry from Partnering with Universities: Evidence from the Advanced Technology Program," The Journal of Technology Transfer, Springer, vol. 26(1-2), pages 87-98, January.
    11. Klevorick, Alvin K. & Levin, Richard C. & Nelson, Richard R. & Winter, Sidney G., 1995. "On the sources and significance of interindustry differences in technological opportunities," Research Policy, Elsevier, vol. 24(2), pages 185-205, March.
    12. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
    13. Staffan Jacobsson, 2002. "Universities and industrial transformation: An interpretative and selective literature study with special emphasis on Sweden," Science and Public Policy, Oxford University Press, vol. 29(5), pages 345-365, October.
    14. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-970, December.
    15. Giuseppe Medda & Claudio Piga & Donald Siegel, 2006. "Assessing the returns to collaborative research: Firm-level evidence from Italy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(1), pages 37-50.
    16. Jeffrey Smith, 2000. "A Critical Survey of Empirical Methods for Evaluating Active Labor Market Policies," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 136(III), pages 247-268, September.
    17. Hall, Browyn H. & Link, Albert N. & Scott, John T., 2000. "Universities as Research Partners," Department of Economics, Working Paper Series qt1np920r9, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    18. Alberto Abadie & Guido W. Imbens, 2002. "Simple and Bias-Corrected Matching Estimators for Average Treatment Effects," NBER Technical Working Papers 0283, National Bureau of Economic Research, Inc.
    19. Almus, Matthias & Czarnitzki, Dirk, 2003. "The Effects of Public R&D Subsidies on Firms' Innovation Activities: The Case of Eastern Germany," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(2), pages 226-236, April.
    20. James D. Adams & J. Roger Clemmons & Paula E. Stephan, 2010. "Standing on Academic Shoulders: Measuring Scientific Influence in Universities," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 61-90, National Bureau of Economic Research, Inc.
    21. Dietmar Harhoff, 1999. "Firm Formation And Regional Spillovers - Evidence From Germany," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(1-2), pages 27-55.
    22. Roberto Fontana & Aldo Geuna & Mireille Matt, 2003. "Firm Size and Openness: the Driving Forces of University-Industry Collaboration," SPRU Working Paper Series 103, SPRU - Science Policy Research Unit, University of Sussex Business School.
    23. James D. Adams & Eric P. Chiang & Jeffrey L. Jensen, 2003. "The Influence of Federal Laboratory R&D on Industrial Research," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 1003-1020, November.
    24. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    25. Keith Pavitt, 2003. "The Process of Innovation," SPRU Working Paper Series 89, SPRU - Science Policy Research Unit, University of Sussex Business School.
    26. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    27. Bronwyn H. Hall & Albert N. Link & John T. Scott, 2003. "Universities as Research Partners," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 485-491, May.
    28. Aldo Geuna & Ammon J. Salter & W. Edward Steinmueller (ed.), 2003. "Science and Innovation," Books, Edward Elgar Publishing, number 2831.
    29. James Adams, 2006. "Learning, internal research, and spillovers," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(1), pages 5-36.
    30. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
    31. Lee, Yong S., 1996. "'Technology transfer' and the research university: a search for the boundaries of university-industry collaboration," Research Policy, Elsevier, vol. 25(6), pages 843-863, September.
    32. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    33. Caloghirou, Yannis & Tsakanikas, Aggelos & Vonortas, Nicholas S, 2001. "Univeristy-Industry Cooperation in the Context of the European Framework Programmes," The Journal of Technology Transfer, Springer, vol. 26(1-2), pages 153-161, January.
    34. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 65(2), pages 261-294.
    35. Narin, Francis & Hamilton, Kimberly S. & Olivastro, Dominic, 1997. "The increasing linkage between U.S. technology and public science," Research Policy, Elsevier, vol. 26(3), pages 317-330, October.
    36. Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anders Broström, 2012. "Firms’ rationales for interaction with research universities and the principles for public co-funding," The Journal of Technology Transfer, Springer, vol. 37(3), pages 313-329, June.
    2. Broström, Anders & Lööf, Hans, 2008. "How does University Collaboration Contribute to Successful R&D Management?," Working Paper Series in Economics and Institutions of Innovation 131, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    3. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.
    4. Rachel Levy & Pascale Roux & Sandrine Wolff, 2009. "An analysis of science–industry collaborative patterns in a large European University," The Journal of Technology Transfer, Springer, vol. 34(1), pages 1-23, February.
    5. Broström, Anders & Lööf, Hans, 2006. "What do we know about Firms’ Research Collaboration with Universities? New Quantitative and Qualitative Evidence," Working Paper Series in Economics and Institutions of Innovation 74, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    6. Foray, Dominique & Lissoni, Francesco, 2010. "University Research and Public–Private Interaction," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 275-314, Elsevier.
    7. Bettina Becker, 2015. "Public R&D Policies And Private R&D Investment: A Survey Of The Empirical Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 29(5), pages 917-942, December.
    8. Heshmati, Almas & Loof, Hans, 2005. "The Impact of Public Funds on Private R&D Investment: New Evidence from a Firm Level Innovation Study," Discussion Papers 11862, MTT Agrifood Research Finland.
    9. Veugelers, Reinhilde & Cassiman, Bruno, 2005. "R&D cooperation between firms and universities. Some empirical evidence from Belgian manufacturing," International Journal of Industrial Organization, Elsevier, vol. 23(5-6), pages 355-379, June.
    10. Spyros Arvanitis & Nora Sydow & Martin Woerter, 2005. "Is There Any Impact of University-Industry Knowledge Transfer on the Performance of Private Enterprises? - An Empirical Analysis Based on Swiss Firm Data," KOF Working papers 05-117, KOF Swiss Economic Institute, ETH Zurich.
    11. Laursen, Keld & Salter, Ammon, 2004. "Searching high and low: what types of firms use universities as a source of innovation?," Research Policy, Elsevier, vol. 33(8), pages 1201-1215, October.
    12. Beck, Mathias & Junge, Martin & Kaiser, Ulrich, 2017. "Public Funding and Corporate Innovation," IZA Discussion Papers 11196, Institute of Labor Economics (IZA).
    13. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    14. Edler, Jakob & Fier, Heide & Grimpe, Christoph, 2011. "International scientist mobility and the locus of knowledge and technology transfer," Research Policy, Elsevier, vol. 40(6), pages 791-805, July.
    15. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    16. Dirk Czarnitzki & Katrin Hussinger & Cédric Schneider, 2012. "The nexus between science and industry: evidence from faculty inventions," The Journal of Technology Transfer, Springer, vol. 37(5), pages 755-776, October.
    17. van Beers, Cees & Berghäll, Elina & Poot, Tom, 2008. "R&D internationalization, R&D collaboration and public knowledge institutions in small economies: Evidence from Finland and the Netherlands," Research Policy, Elsevier, vol. 37(2), pages 294-308, March.
    18. René Belderbos & Nazareno Braito & Jian Wang, 2024. "Heterogeneous university research and firm R&D location decisions: research orientation, academic quality, and investment type," The Journal of Technology Transfer, Springer, vol. 49(5), pages 1959-1989, October.
    19. Spyros Arvanitis & Nora Sydow & Martin Woerter, 2008. "Do specific forms of university-industry knowledge transfer have different impacts on the performance of private enterprises? An empirical analysis based on Swiss firm data," The Journal of Technology Transfer, Springer, vol. 33(5), pages 504-533, October.
    20. Wolfgang Becker, 2003. "Evaluation of the Role of Universities in the Innovation Process," Discussion Paper Series 241, Universitaet Augsburg, Institute for Economics.

    More about this item

    Keywords

    R&D investment; innovation; patents; industry-university link; matching methods.;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:cesisp:0021. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vardan Hovsepyan (email available below). General contact details of provider: https://edirc.repec.org/data/cekthse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.