Wednesday, April 13, 2016
The Importance of Industry-University Research
Increases in higher education funding has substantial impact on the local economy. According to a study by the National Bureau of Economic Research an increase in higher education spending of 10% also increased income of local workers by .5% . It may not seem like much as a percentage but multiplied across a city has a large impact.
The same study found that local firms also received significant spill over effects from research innovation. The closer firms were technologically to the university the more they more gained in terms of developmental capacity. Creating closer connections to industry helps develop greater economic outputs through mutual development.
Collaborating businesses and intellectuals from universities can also enhance the spill-over effects of knowledge. The type of research is dependent on the type of university. Business schools might be more akin to large social science industry research or something as small as individual motivation. Universities with laboratories could be working on new technologies.
Industry isn't the only winner in industry-university collaborative research as students also gain access to new knowledge and practical experience that furthers their education. Many of these students end up working for some of the companies they have partnered with. Universities and businesses have something to gain from each other that leads to wide benefits for them and their stakeholders.
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