The impact of collaborations between universities and private organizations on cluster development and competitiveness in Romania

Abstract

While the European Union has put a lot of emphasis on cluster development due to their inherent advantages such as lower transaction costs, technological transfer and regional development, little is known about how clusters emerge and what can facilitate their competitiveness. This paper aims to study the impact of public-private cooperation between universities and organizations on cluster development and competitiveness. A literature review is employed to develop the model while 4 qualitative case studies provide the initial test of its validity. The analysis suggests that cooperating with research institutions impacts cluster development first through education of industrial staff, but also by developing innovation processes through the facilitation of the appearance of innovative ideas and also of knowledge sharing among organizations. The research has several implications both for organizations and for government officials. First of all, R&D and top management should actively seek to cooperate with research institutions both for training of their staff but also in seeking new ideas and as a way of collaborating with other organizations within the field without fear of losing competitive advantage. Second, government officials should try to create more incentives both for organizations (through for example tax returns) and for universities (extra funding or salary incentives) that can increase collaboration between these actors. This paper is the first one to asses empirically how cooperation with research institutions affect cluster competitiveness and development, especially within the developing region of Eastern Europe, Romania.