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Empirical Study of Industry-Science Linkages in the Manufacturing Sector

Student: Vlasova Valeriya

Supervisor: Vitaliy Roud

Faculty: Institute for Statistical Studies and Economics of Knowledge

Educational Programme: Science, Technology and Innovation Management and Policy (Master)

Year of Graduation: 2017

The purpose of this paper is to provide a better understanding of what affects the propensity to cooperate with knowledge producers (i.e. universities and scientific research organizations) in innovation activities and the form of their interaction. Focus is put on the internal factors and external conditions, as well as the barriers to technology adoption application. We use the firm-level data on innovation strategies of 805 innovation-active manufacturing companies in Russia. Firstly, we estimate a bivariate probit model to investigate the factors that influence the likelihood to cooperate with universities and research organizations. Secondly, we distinguish between four forms of interaction with knowledge producers for innovation activities: no cooperation, cooperation aimed at purchasing S&T services, implementing innovation based on the R&D of the knowledge producers — either new to the firm or new to the market. Finally, we estimate a multinomial logit model to identify what affect the choice of a form of interaction with a special respect to the barriers to technology adoption. The findings indicate that in the Russian case the scale of industry-science linkages is hampered by low propensity of business to the R&D-based innovation strategies (dominance of imitation and borrowing of ready-made solutions). However, those that cooperate, praise the contribution of research organizations and universities. Results provide partial support for the general theory, revealing that the likelihood of cooperation and technology adoption is higher for large and technologically advanced companies with higher absorptive capacity and effective intellectual property management mechanisms. Other factors have different impacts depending on the subject of interaction. This suggests that policy-making to support science-industry linkages should be selective. Key words: Science-industry cooperation; Innovation strategy; Firm-level; Manufacturing; Russia

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