The contribution of academic-industry interaction to product innovation: The case of New York State's medical devices sector

Abstract. This note examines the role of academic-industry linkages in the innovation performance of New York State manufacturers of medical devices. Evidence from a pilot survey of 63 specialised producers suggests that innovation rates are higher among firms that exploit university resources. The contribution of the academic sector to industrial innovation is quantified via a series of OLS regressions. These models suggest that geographic proximity to academic resources is less important to the innovation process than the extent of academic-industry interaction (though the two are positively correlated). While the empirical results confirm that close proximity to academic research units is a helpful factor in product development, the data reveal that non-geographic factors play a stronger role overall. Factors of notable significance include in-house R&D effort, investment in academic interaction and the extent of collaborative research with other manufacturing firms.