On the Examination of the Factors that Hinder the Complementary Effect of R&D Collaboration between Industry and Public Sector on Regional Innovation : Using a Frisch-Waugh Orthogonalisation Method for Interaction Terms

This paper investigates the factors that hinder the complementary (synergistic) effect of R&D collaboration between industry and public sector on regional innovation over the period from 2008 to 2017. Using more sophisticated interaction methods, the present research finds that the R&D collaboration between industry and public sector leads to an insignificant effect on regional innovation. This result is strengthened by the application of spatial econometric techniques which show that the industry-public R&D collaboration spillovers which go to three more neighboring regions have also an insignificant effect on regional innovation. Regarding the individual components of interaction, it is the public R&D elements (higher education and government) which have a positive and significant effect on regional patent intensity. In contrast, industry R&D does not significantly affect regional innovation