THE IMPACT OF HIGHER EDUCATION INSTITUTION–FIRM KNOWLEDGE LINKS ON ESTABLISHMENT-LEVEL PRODUCTIVITY IN BRITISH REGIONS

Authors

  • RICHARD HARRIS,

    1. University of Glasgow
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  • QIAN CHER LI,

    1. Imperial College London
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  • JOHN MOFFAT

    1. University of Swansea
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    • This work contains statistical data from the Office for National Statistics (ONS) which is Crown copyright and reproduced with the permission of the controller of Her Majesty's Stationery Office and Queen's Printer for Scotland. The use of the ONS statistical data in this work does not imply the endorsement of the ONS in relation to the interpretation or analysis of the statistical data. This work uses research data sets which may not exactly reproduce National Statistics aggregates. Funding from Economic and Social Research Council, the Scottish Funding Council (SFC), the Department for Education and Learning (DEL) in Northern Ireland, the Higher Education Funding Council for England (HEFCE) and the Higher Education Funding Council for Wales (HEFCW) (Grant No. RES-171-25-0032) is gratefully acknowledged.


  • Manuscript received 16.9.10; final version received 18.3.11.

Abstract

In this paper we estimate whether sourcing knowledge from and/or cooperating on innovation with higher education institutions impacts on establishment-level total factor productivity and whether this impact differs across domestically owned and foreign-owned establishments and across the regions of Great Britain. Using propensity score matching, the results show overall a positive and statistically significant impact although there are differences in the strength of this impact across production and non-production industries, across domestically owned and foreign-owned firms, and across regions. These results highlight the importance of absorptive capacity in determining the extent to which establishments can benefit from linkages with higher education institutions.

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