Increasing university-industry interaction (UII) and university contribution to the local economy are compatible-conventional wisdom would say. However, similar to other university activities, interaction with industry may be limited due to a lack of absorptive capacity in local firms. The data of those participating in the European Union's (EU's) Sixth R&D Framework Programme (FP6) were used to obtain values for the number and, notably, the budgets of UII projects at the regional level for the EU27. Two types of interactions were considered: inside and outside the region. Our analysis indicates that universities from regions whose firms have low absorptive capacity participate more often in FP6 projects with firms outside the region. Our results highlight the value of policies that facilitate firm R&D to enhance collaboration with regional universities. © 2013 © 2013 Taylor & Francis.

This research has taken place under the framework of ERAWATCH, a joint initiative of the European Commission’s Directorate General for Research and the Joint Research Centre-Institute for Prospective Technological Studies (IPTS).

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