Proximity as a Resource Base for Competitive Advantage: University–Industry Links for Technology Transfer

One of the important arguments in favor of Science Parks is the claimed networking benefit. A total of 273 new technology-based firms (NTBFs) were surveyed. The assessing of academic knowledge and expertise by businesses located on site is a key principle of Science Parks. Science Park NTBFs stand out as a special group of small firms in terms of performance (Growth: sales and employment). The arguments presented in this paper recognize the complex nature of co-operative resources. The level of interaction in the innovation process between firms located on Science Parks and local universities is generally low, but it is higher than the level of interaction exhibited by firms that are not Science Park firms. The underlying premise of our research propositions (P1 and P2) is that the NTBF-specific co-operative resources will provide the firm with a competitive advantage. This paper, building on the resource-based theory and empirical evidence, argues that NTBFs working with universities that have more proximity achieve certain advantages. Proximity between NTBFs and universities promote the exchange of ideas through both formal and informal networks. Statistically significant differences between Science Park NTBFs and off-Park NTBFs were recorded with regard to product development in the last three years.