Influence of universities on embeddedness and knowledge transfer in a knowledge-based industrial cluster

Using a structural equation model and focusing on the indirect impact of universities on channels transferring knowledge both from universities to firms and from firms to firms, we investigate how universities influence the embeddedness of industrial clusters, and then establish a theoretical framework that concludes indirect impacts of university on the knowledge transfer both from universities to firms and from one firm to others. Through an empirical study, we find that with the cluster and firms operating in this cluster growing mature, the embeddedness of the cluster will be considerably influenced by universities' impact on regional development through such channel as sponsored research projects, consulting, spin-offs, and recruiting graduates. Then, the embeddedness will speed the knowledge transfer both from universities to firms and from one firm to other firms.