University supply and corporate demand for academic research

University research is an important contributor to corporate innovation, but corporate-sponsored research has lagged other forms of research expenditure since 2000 and is perceived to be sub-optimal. This paper first examines and interprets reasons given by industry participants for this relative underperformance. It next establishes the complexity of this issue by explicating different patterns of research relationships for four industry groups. University supply of research and industry demand are both affected by internal factors that create inherent limits to these activities. The paper concludes that proactive measures by universities are the most feasible steps under current conditions to enhance corporate-sponsored university research.