Chinas horizontal university-industry linkage: where from and where to

Abstract

This study aims to explore the emerging horizontal university- industry linkage (UIL) in China, which is hardly addressed in existing literature. For that purpose, we conducted two separate but closely related questionnaire surveys: one for university professors in China, and another for firms. From the surveys, we determined that horizontal UIL is now replacing the traditional mode of knowledge industrialization in China. We also discovered that the current horizontal UIL in China is heavily dependent on formal contracts. According to our preliminary econometric analyses, the characteristic Chinese preference towards formal contract-based UIL could be explained by the lack of institutional thickness in China. This implies that China should utilize more varied channels of horizontal UIL, including informal and open science channels, as the institution becomes more sophisticated. Currently, most Chinese firms appear to be very positive in evaluating their own experiences of collaboration with universities. However, we have also confirmed that promoting direct and formal UIL is not without social costs (e.g., damaging university education), which policy makers should carefully consider.