The Influence of Institutional Factors on University-Industry Collaboration in an Open Innovation Context

Abstract

Open Innovation advocates university-industry collaboration as an essential driver of innovation and economic development. However, various institutional barriers can hinder this collaboration. This study examines the impact of four key institutional factors - institutional differences, institutional policies, institutional incentives, and lack of communication and trust between university and industry - on the likelihood of university-industry collaboration. They are using logistic regression analysis on data collected from 66 managers of small and medium-sized enterprises in different business sectors. The empirical results show that institutional differences, lack of institutional incentives, lack of communication, and trust negatively influence the probability of collaboration, while institutional policies have no significant effect. Furthermore, companies with a long track record operating in favorable business sectors, namely industry, construction, and services, all significantly positively affect the probability of collaboration. These results highlight the importance of tackling institutional differences and establishing an incentive system that encourages university-industry collaboration. They also suggest that universities, businesses, and policymakers should invest in communication, mutual trust, and alignment of objectives, and should develop policies and structures that encourage collaboration.

Keywords: University-industry collaboration, institutional differences, institutional incentives, institutional policies, logistic regression

JEL code : G23, O17, O21, L40, Z18.

Paper type: Empirical Research