Foreign and Domestic University Collaboration and Outbound Open Innovation

Abstract

This study compares the impact of research and development (R&D) collaboration with foreign versus local universities on outbound open innovation (OI). Despite the important role of university collaboration, firms find it difficult to externally commercialize scientific knowledge. By drawing on the knowledge-based view and national innovation system literature, we propose a conceptual model and examine how and under what circumstances a firm can reap the benefits from its links with universities and academic professors. Based on data from 541 New Zealand firms, we find that geographic proximity plays a critical role in benefiting from academic collaborations. Our findings show that R&D collaborations with foreign universities are related to the development of outbound OI, especially when the firms’ partners are from developed countries. Conversely, our findings show that local university collaboration is associated with the development of outbound OI only if the firm collaborates with its local value chain partners.