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Does Knowledge Diffusion between University and Industry Increase Innovativeness?

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  • 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
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    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

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