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Seoul Journal of Economics - Vol. 22 , No. 4
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Seoul Journal of Economics - Vol. 22, No. 4, pp. 529-550
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 30 Nov 2009
Received 27 Feb 2009 Revised 19 Nov 2009

University-Industry Collaboration in the Automotive, Biotechnology, and Electronics Firms in Malaysia
Rajah Rasiah ; Chandran Govindaraju VGR
Corresponding Author, Professor, Technology and Innovation Management, Department of Administrative Studies and Politics, University of Malaya, Kuala Lumpur, Malaysia, Tel: +03-7967-3606, Fax: +03-7967-3719 (rajah@um.edu.my)
Lecturer, Department of Economics, University Technology MARA Johor, Malaysia, Tel: +07-9352055, Fax: +07-935-2277 (vgrchan@gmail.com)

JEL Classification: O32, L25, L62, L63

Abstract

This paper seeks to examine existing explanations of drivers of university-industry collaboration. The Probit regression results support prevailing theory on the importance of R&D intensity, partner diversity and access to wider channels of information matter for university-industry collaboration. However, categorizing size as a dichotomous dummy variable of SME and large firms showed an inverse relationship, while actual employment size was not statistically significant. Size was inversely correlated with university- industry collaboration. Separate Probit estimations for the specific industries of automotive, biotechnology and electronics indicate the following as the important drivers. First, R&D intensity, importance of university as a source of knowledge and age were important in automotive firms. Second, R&D intensity, channels of R&D information and R&D partner diversity were important in biotechnology firms. Third, the channels of R&D information and R&D partner diversity were important in electronics firms. Size was statistically significant in automotive and electronics firms but the coefficients were negative when a dummy was used and not statistically significant when the actual employment was used. Closer examination showed higher university-industry collaboration means among medium size firms.

Keywords: University-industry collaboration, R&D, Automotives, Biotechnology, Electronics, Malaysia
Acknowledgments

We are grateful to the International Development Research Council (IDRC) for their generous grant that was used to pay Pemm Consult to gather the firm-level data used in the paper. Although the actual survey was conducted in 2007, the data is for 2006.

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