Role of Absorptive Capacity and Science and Technology Parks in Regional Innovation: A Triple Helix Perspective From India

ABSTRACT This paper contributes to the research on the triple helix model of innovation by examining the effect of regional absorptive capacity and the presence of government‐established science and technology parks (STPs) on patenting activities in India. Using negative binomial regression on 24 selected states in India during 2000–2020, our study shows that a region's absorptive capacity in the form of business research and development (R&D) expenditure and university count and the number of STPs are crucial for regional innovation. Regions with higher business R&D expenditure and the number of academic institutes experience higher patenting activity. It also shows a positive relationship between the number of STPs in a region and regional patent applications, indicating the importance of knowledge networks for regional innovation. However, contrary to expectations, the moderating effect of STPs on the nexus between absorptive capacity and regional innovation turns out to be negative. The empirical evidence suggests that, while the actors of the triple helix individually have a positive impact, their combined effect on regional innovation is reduced. Our findings indicate the need for tailored policy measures to enhance regional absorptive capacity and improve collaborations between the actors of the triple helix.