Promoting effective modes of the university-industry interaction and their evolution for economic catch-up in Asia

Abstract

Surveys in Asia suggest that UILs are not widely spread in Asian countries, but its extent are increasing, and that firms tend to be satisfied with their interaction with them. Regarding the mode of UILs, we find that in Asia, formal channels are more common, differently from the case of the US; such as joint or contract-based research in Korea, China and Malaysia, and small scale consulting in Thailand. This implies that different modes correspond to the different stages of economic development of nations and/or the different capabilities of firms in each country. We also find that those who have certain R&D capabilities and thus do some R&D are the most frequent users of services from universities or PRIs. This implies that relationship between R&D by firms and by universities is more complementing than substituting. The fact that those firms that already do R&D activities tend to collaborate more with universities or PRIs might indicate the limitation of UILs as a new vehicle for catch-up. However, beyond the dichotomized question of supplementing or substitution, what matters more seems to be the absorption capacity of firms as well as the various (teaching, research, and entrepreneurial) capabilities of universities and laboratories. If such capabilities are there, there is no doubt that UILs will be more intense. Given the low or diverse degrees of capabilities of firms and universities in latecomer economies, it is important to first increase the level of their capabilities, and second, to utilize diverse modes of UILs depending on specific conditions and contexts. It is not generally good to try to stick to only one mode, and the interaction should be not only with universities but also with PRIs. For this reason, it is important to identify successful examples and diffuse such examples to other countries and localities in a country. In sum, we find a very dynamic and country-specific nature of UIR in each country as it depends on diverse factors that are constantly changing. Any policy suggestion has to keep in this mind not taking up any static or overly abstract view on it.