Exploring complementarities in innovation among research, development, and university technology transfers

Abstract This study empirically examines how university technology transfers influence the differential innovation returns firms derive from their (i) research and (ii) development activities. Both are usually considered together as components of the research and development (R&D) function. We explore how the specialization benefits from a division of innovative labor between firms and universities enhance the innovation returns of both R&D components. Using a sample of Spanish companies from 2004 to 2016, we find improvements in the innovation returns of their R&D components only when (i) firms internally specialize in either research or development while sourcing complementary R&D services from universities and (ii) firms use outsourcing contracts to access these university R&D services.