No Interaction, No Problem? An Investigation of Organizational Issues in the University–Industry–Government Triad in a Transition Economy

Transition economies, on the one hand, grapple with a communist legacy; on the other hand, they seek the optimal institutionalization for knowledge generation, dissemination, and commercialization to compete globally. However, the incumbent knowledge of certain aspects of their innovation systems remains very limited. In particular, intra-organizational cultural relics of the past and their inter-organizational and, consequently, systemic implications require research. This study examines how interaction barriers among universities, industry, and government, stemming from intra-organizational cultures, impact structural change in the innovation system of Azerbaijan. Utilizing the TH model, interviews with 59 participants revealed that a “Statist” TH model in Azerbaijan hinders organic cultural development within organizations, leading to interaction issues among TH actors. Moreover, problems in inter-organizational communication pave the way for a systemic failure that necessitates government intervention, strengthening the “Statist” TH model. The findings increase the context sensitivity of the TH framework by exploring an understudied context and provide valuable insights relevant to other transition economies facing similar institutional legacies.