National institutional differences and cross-border university–industry knowledge transfer

Does inter-national institutional difference hamper technology transfer from the foreign university to the business enterprises? A multinational study on institutions suggests that some elements of institutions of nations positively influence international technology transfer, some other elements of institutions negatively influence the international technology transfer, and yet some other elements of institutions of nations have no influence on the international technology transfer. The empirical analysis on six institutional dimensions reveals variegated results: (i) religious distance has a positive effect on international technology transfer when listed companies are controlled; (ii) social distance has a positive effect when listed firms are not controlled; (iii) education distance has a positive effect when listed companies are not controlled; (iv) political distance has no effect on international technology transfer; and (vi) industrial distance has negative effect on international technology transfer. However, Hofstede's measures on national cultural dimensions show no significant effects. The non-significant results could be due to the measurement of national cultures, characteristics of the biopharmaceutical industry, or due to changes in the patterns of national cultures over time.

► The role of national institutional diversity in biotechnology transfer from the foreign university is tested. ► Institutional diversity appears to have some influence on international technology transfer from the university to the firm. ► Results of six institutional dimensions (language, education, industry, political, social, and religious diversities) show variegated outcome. ► Institutional and network theory may explain this variation.