What drives the formation of ‘valuable’ University-Industry linkages? An under-explored question in a hot policy debate

Most of the literature on University-Industry (U-I) linkages assuming that these linkages will be beneficial per se. We question this assumption and suggest that not all U-I linkages are equally ‘valuable’. In this paper, we explore the factors driving to the formation of ‘valuable’ U-I linkages, conceived as those that have a higher potential to diffuse knowledge to other firms in the economy. We estimate a two-stage Heckman model using data from two wine clusters in Chile and in Italy. The quality of firms and universities is found to be a key driver of ‘valuable’ U-I linkages. We conclude that selectivity by policy-makers should be encouraged when they promote U-I linkages.