The Impact of Higher Education Institution-firm Knowledge Links on Establishment-level Productivity in British Regions

Harris, Richard and Li, Qian Cher and Moffat, John (2010) The Impact of Higher Education Institution-firm Knowledge Links on Establishment-level Productivity in British Regions. Discussion paper. University of Strathclyde, Glasgow.

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    Abstract

    This paper estimates whether sourcing knowledge from and/or cooperating on innovation with higher education institutions impacts on establishment-level TFP and whether this impact differs across domestically-owned and foreign-owned establishments and across the regions of Great Britain. Using propensity score matching, the results show overall a positive and statistically significant impact although there are differences in the strength of this impact across production and non-production industries, across domestically-owned and foreign-owned firms, and across regions. These results highlight the importance of absorptive capacity in determining the extent to which establishments can benefit from linkages with higher education institutions.