Empirical Evidence for Brazilian Firms in Terms of University–industry Interaction, Public Funding and Innovation Outcome

Abstract

This paper aims to contribute to the discussion about firm’s innovation, focusing at university–industry interactions (UII), funding and innovation outcomes. The research analysed the data of 325 Brazilian firms that interacted with universities and/or research centres. Regression models were used to evaluate the impact of public funding, types of interactions and innovation outcomes. In addition, the moderation effect of public funds was tested in different types of interactions. The results show that the university–industry interactions based on the use of the university’s knowledge has a positive and significant relationship with firm’s product innovation, and the use of public funding has a negative and significant relationship with a firm’s innovation intensity. It is relevant to note that there are important specificities of the Brazilian context, such as the innovation-related public funding and its effectiveness for the firm’s innovative activities, which contributes to explaining the outcomes.

Fundamental elements of university-industry interaction from a grounded theory approach

“…The relationship between the production of scientific and technological knowledge plays an important role in the development of innovation (de Souza et al ., 2019). In developed countries, it is possible to identify the existence of a feedback mechanism between these two dimensions (Puffal et al. , 2021).…”

“…Many Brazilian companies that want to innovate often do not invest in interaction with universities. Instead, the innovative activity is more related to the purchase of modern machinery and equipment and to the interaction with customers and suppliers (Puffal et al. , 2021).…”

“…The relationship between the production of scientific and technological knowledge plays an important role in the development of innovation (de Souza et al, 2019). In developed countries, it is possible to identify the existence of a feedback mechanism between these two dimensions (Puffal et al, 2021). However, in developing countries, such as Brazil, this flow is less dynamic due to fewer interactions between universities and industries (Suzigan & Albuquerque, 2011;Fischer, Schaeffer, & Vonortas, 2019).…”

“…Many Brazilian companies that want to innovate often do not invest in interaction with universities. Instead, the innovative activity is more related to the purchase of modern machinery and equipment and to the interaction with customers and suppliers (Puffal et al, 2021). Hence, analyzing this relationship observing the context, barriers and benefits for the participants becomes a preponderant factor to encourage and stimulate greater innovation through the collaboration between Brazilian universities and companies.…”

“…Most research on U–I interaction focuses on the firm's side (Freitas, Marques, & e Silva, 2013; Scandura, 2016; Puffal, Ruffoni, & Spricigo, 2021). However, little attention has been paid to the perspective of research groups and innovation agencies that are central players in the U–I interaction process.…”