The Behavioural Relationships Between Industrial R&D and University R&D in India

Abstract

During the years, a large number of formal studies have presented evidences of a positive impact of university R&D on firm performance in general and on the location of industrial R&D, in particular. The question is does it also work the other way around? Does industrial R&D function as an attractor for university R&D? What are the behavioural relationships between industrial R&D and university R&D and vice versa? The authors argue that spatial proximity should be measured using accessibility measures. Fur-thermore, accessibility measures can be used to model interaction opportunities at dif-ferent spatial scales: local, intra-regional and inter-regional. Against this background, the purpose of this paper is to analyse the locational relationship between industry R&D and university R&D in India using a simultaneous equation approach. The authors' results indicate that the location of industrial R&D is quite sensitive to the location of university R&D, and that the location of university R&D is sensitive to the location of industrial R&D.