A Hidden Role of Public Subsidy in University-Industry Research Collaborations

Contractual and organizational characteristics of university-industry research collaboration (hereafter UIC) are keys to its success. In this respect, government can play essential roles in UIC: Public subsidy for research and development (hereafter R&D) is not only an important financial support for UIC, but may also be a useful channel to promote trust along with contractual agreements and information sharing among the members, which results in effective coordination and thus the success of UIC. However, few empirical studies investigate the latter role of public R&D subsidy in UIC. Thus, using original survey data, this paper empirically examines and find that public R&D subsidy improves coordination in UIC, including trust formation, contractual agreements, and communication quality between the partners as well as commitment by the partners.pubic subsidy, R&D, research collaboration, university, contract, trust