Public research agencies as sources for innovations and the entrepreneurial absorptive capacity of manufacturing enterprises

Summary

Literature on technology absorptive capacity for new knowledge has shown business R&D investment, however measured, to be a key factor. Statistical analyses of Australian innovation survey data showed a strong relationship between technology absorptive capacity and the perceived importance of public sector research providers as sources of information and ideas for innovations. The policy implications of these findings are how to better balance government interventions between increased funding for the generation of new knowledge and improving the absorptive capacity for this new knowledge and the associated enterprise entrepreneurial propensity.

Key Words:

• absorptive capacity
• innovation
• R&D investment
• universities