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Determinants Of Financial Rewards From Industry–University Collaboration In South Korea

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  • JUNGHEE HAN

    (Graduate School of Smart City, Science Management Hongik University, Room 306-2, Sejong ro, Jochiwon-eup, Sejong City, Korea)

  • ALMAS HESHMATI

    (#x2020;Department of Economics, Sogang University, Room K526, 35 Baekbeom-Ro, Mapo-Gu, Seoul 121-742, Korea)

Abstract

The external circumstances for universities have been changing rapidly. In order to be competitive, survive and flourish, universities have turned to external sources to generate revenues. The literature refers to this phenomenon as academic capitalism, defined as the involvement of colleges and their faculty in market-like behaviours, which has become a key feature of higher education finances in most countries. As a result, technology transfer, technological commercialisation, and patents via industry–university collaboration represent a source of financial rewards. This paper explores the determinants of financial rewards of universities sourced from academic engagement through industry–university collaboration in South Korea. We have found that technology transfer per employees working at technology licensing offices, participation of engineering faculty, patent approvals, and the number of firms with incubators within universities significantly contributes to university revenues. The following determinants of financial performance are unexpectedly not contributors to revenue: technological commercialisation using technology transfer, distinguished faculty and incentive rules for inventors. In the light of these findings, it appears that an entrepreneurial university program is likely to play a strong role in university finances in Korea.

Suggested Citation

  • Junghee Han & Almas Heshmati, 2016. "Determinants Of Financial Rewards From Industry–University Collaboration In South Korea," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(07), pages 1-26, October.
  • Handle: RePEc:wsi:ijimxx:v:20:y:2016:i:07:n:s1363919616500754
    DOI: 10.1142/S1363919616500754
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    Cited by:

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    2. Robert Rybnicek & Roland Königsgruber, 2019. "What makes industry–university collaboration succeed? A systematic review of the literature," Journal of Business Economics, Springer, vol. 89(2), pages 221-250, March.
    3. Junghee Han, 2017. "Technology Commercialization through Sustainable Knowledge Sharing from University-Industry Collaborations, with a Focus on Patent Propensity," Sustainability, MDPI, vol. 9(10), pages 1-16, October.

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    More about this item

    Keywords

    Industry–university collaboration; entrepreneurial university; university revenues; South Korea;
    All these keywords.

    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • P12 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Enterprises

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