Research cooperation between universities and companies in local knowledge production

Abstract

Long-term economic development is driven by continuous innovation, based on the flow of knowledge and information through the interaction of economic actors. Different economic actors, such as companies and universities, have different knowledge bases. Economic policy makers, as well as companies and universities, have set up a number of programs to share the information available to them, thus promoting the creation and development of new or existing innovative companies. However, few studies in the literature have so far explored the impact of business-university collaborations on innovation on a large scale and across countries. In this paper, we explore this issue using data on research collaborations between actors participating in the EU Framework Programs, applying a multi-layer network analysis approach, using spatial panel econometric models, based on the concept of a regional knowledge production function. The results show that a diverse network structure is needed to foster innovation. This diversity consists not only in the need to establish cooperation with several economic actors, but also in the need to establish links with different types of institutions and partners outside the region. In the design of economic policy programs and university innovation projects, efforts should therefore be made to develop closer cooperation between companies and universities, involving partners that are geographically more distant.