The role of absorptive capacity in the success of university-firm interaction in Brazil

Abstract

This paper analyzes the firm’s absorptive capacity (AC) as the main determinant of its success in an interaction with university (UFI). Using AC as a growing latent variable to the types of success in an ordered probit model, the main determinants of this success are associated with potential AC or closeness of knowledge bases of firms and universities (e.g. relevance of applied science, use of publications and reports, internal R&D efforts). This proximity improves the communication and learning, favoring the success of UFI in a firm’s perspective.