A simple model of university-industry research linkages and the sharing principle under uncertainty

This paper presents an intuitive model of university-industry (hereafter, UI) research linkages (or collaborations), focusing on the sharing principle under uncertainty. The paper draws from an earlier more complicated dynamic control theory model, but it differs in that it brings into the analysis of UI technical knowledge production and transfer the role of uncertainty (randomness) and the benefits of the principle of sharing. The main focus is to show how and why the principle of sharing under uncertainty benefits all entities involved in the technical knowledge production and transfer process, even if some entities experience research failure. Some problems associated with randomness are discussed. Operational aspects and policy value are also briefly discussed.