Positive Knowledge Externalities In An Industry-University Collaboration

Purpose - The aim of this paper is to report an exploratory study on mutual benefits that may occur within industry-university collaboration beyond contractual ones. The case study refers to the collaboration between a university and a company; in the form of a research chair alliance. Such collaboration provides a space for developing new models and solutions aligned both to the company business processes challenges and to the university strategic research agenda. This research chair has deliberately and systematically evolved into a knowledge market were intangible assets besides matching funds are invested and mobilized. In particular, the aim of the study is to identify positive knowledge externalities in terms of Capitals Systems (Carrillo, 2002), which take place in this research chair, as a knowledge-based market. Design/methodology/approach - Based on this case study and performed with an exploratory approach, a descriptive statistics analysis was completed. This study allows the research chair members to identify additional benefits to those targeted as objective by each institution, and to multiply working capital thus diminishing reliance on scarce liquid funds. Specifically, an instrument was design and applied to the leaders of the research chair 2011 portfolio projects. The instrument and analysis were based on the Capital Systems model that captures the universe of value through a systematic taxonomy containing six dimensions: identity capital, intelligence capital, financial capital, human capital, relational capital and instrumental capital. Originality/value - The results of the study allow the identification of the benefits obtained from both institutions by collaborating on projects, and specifically their participation in the research chair, which is conceptualized and managed with a knowledge-based market approach. Such approach moved from a customer-supplier contractual research relationship to a multidimensional collaborative platform. The context and characteristics of the research chair, besides the theoretical approach used in the study, have not to our knowledge been discussed before. Practical implications - The results of the study allow the identification of the benefits obtained from both institutions. On one hand, the Company reported greater positive externalities in human capital, intelligence, relational and identity. On the other hand the University reported positive externalities in all capitals. This study allows the research chair to identify additional benefits to those targeted as objective by each institution, and to multiply working capital thus diminishing reliance on scarce liquid funds.