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

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 embeddings 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 using a structural equation modeling method, we find that with the cluster and firms operating in this cluster growing mature, the embeddings of the cluster will be considerably influenced by universities' impacts on regional development through such channel as sponsored research projects, consulting, spin-offs, and recruiting graduates. Then, the embeddings will speed the knowledge transfer both from universities to firms and from one firm to other firms. Additionally, managerial and policy implications are also noted based on the analytical results.