Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

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.

Keywords: R&D investment; innovation; patents; industry-university link; matching methods.

JEL-codes: C24; L10; O30; O31; O38; O40

28 pages, First version: December 2, 2004. Revised: January 26, 2006.

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Fortchoming as

Hans Lööf and Anders Broström, 'Does Knowledge Diffusion between University and Industry Increase Innovativeness?', Journal of Technology Transfer

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