Tracing the flows of knowledge transfer: Latent dimensions and determinants of university-industry interactions in peripheral innovation systems

- Firms interact with universities through a variety of mechanisms.
- The article studies university-industry interactions in Andalusia (Spain).
- Interactions are grouped in five main factors and a typology of firms is created.
- The article underlines the determinants of each type of interaction.
- Firms combine knowledge exploration and exploitation activities.

Firms interact with universities through a variety of channels, ranging from collaborative research projects, patents, spin-off creation, consultancy and specialized training, to informal relationships. This article explores the combination of mechanisms used by firms in Andalusia, a peripheral region in Spain and Europe, when interacting with universities. Using information from a survey of 737 innovative firms, the empirical study found evidence that university-industry links can be grouped into five latent dimensions (knowledge generation and adaptation, involvement in new organisations, training and exchange of human resources, intellectual property rights, and facilities and equipment) which are mainly based on exploitation or exploration activities. A typology of firms was created, highlighting the large number of firms with no interactions, and six clusters that specialize in specific mechanisms (IPR exploiters, Institutionalized interactors, University facility users, Training and education beneficiaries, Tacit knowledge users, and R&D interactors). The study also presents the determinants for engaging in each type of channel, concluding that whilst firms developing exploitation activities also develop parallel exploration activities, the reverse is not significant. The absorptive capacity of firms is important in determining the type of interaction, but is not fully conclusive about the range of exploration and exploitation activities. The article ends by discussing the policy implications associated with incentives to adapt knowledge transfer mechanisms to the industrial fabric of peripheral innovation systems.