The Frontiers in Manufacturing Technologies Initiative and University Innovation

Abstract Basic innovation, with universities as a key driver, is essential for advancing core technologies in the manufacturing industry. This study used a manufacturing technologies initiative as a natural experiment, combining funding and its outcomes data from the National Natural Science Foundation of China to construct a difference‐in‐differences model. It found that the Frontiers in Manufacturing Technologies Initiative had a positive effect on university innovation, particularly by increasing the number of university patents. Mechanism analysis showed that the policy mainly encouraged university innovation through university‐industry collaboration. The effect was more salient in universities with stronger basic research capabilities and those whose research fields matched strategic emerging industries covered by the initiative. This study underscores the crucial role of the Frontiers in Manufacturing Technologies Initiative in enhancing university‐led innovation. It highlights the effectiveness of industry‐academia partnerships in advancing technology, particularly in emerging strategic industries.