Graduate Theses & Dissertations

Pathways to Innovation
Research and development activities conducted at universities and firms fuel economic growth and play a key role in the process of innovation. Specifically, prior research has investigated the widespread university-to-firm research development path and concluded that universities are better suited for early stage of research while firms are better positioned for later stages. This thesis aims to present a novel explanation for the pervasive university-to-firm research development path. The model developed uses game theory to visualize and analyze interactions between a firm and university under different strategies. The results reveal that as academic research signals knowledge it helps attract tuition paying students. Generating these tuition revenues is facilitated by university research discoveries, which, once published, a firm can build upon to make new innovative products. In an environment of weak intellectual property rights, moreover, the university-to-firm research development path enables firms to bypass the hefty costs that are involved in basic research activities. The model also provides a range of solution scenarios where a university and firm may find it viable to initiate a research line. Author Keywords: Game theory, Intellectual property rights, Nash equilibrium, Research and development, University to-firm research path

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