Industry-university collaboration for innovation promotion in the State of Ceara, Brazil

A market failure exists in the collaboration process between industry and the academy. Although it is expected to bring benefits to both industry and the academy and to the national economy as a whole, such collaboration does not generally take place at an optimal level. The current study shows that the collaboration between industry and academy can be supported by the intervention of an industrial association, which can play the role of a catalyst for change where government intervention does not provide a sufficient response to the market failure. This experimental study was conducted in the state of Ceara in Brazil, in two phases. The first was the elaboration of a diagnosis based on an in-depth investigation of the prevailing constraints and strengths of the local innovation system. This was done through a field study among firms that showed both a desire and preparedness for innovation, but also a lack of practical innovation activity. This led to a second field study, among leaders in the academy, industry, and government, that revealed some of the constraints that prevent innovation. The findings led to the implementation of a methodology for the identification of the local innovation ecosystem. The second phase was the elaboration of policy measures and of the implementation of practical projects oriented towards the solution of the main obstacles identified in the ecosystem. Three groups of measures were adopted and implemented by the local association of industries. The first group includes the organization of structures that contribute to an improved level of communication between industry and academia, with the support of government. In practical terms, a council was established, representing all parties involved, with the objective of devising measures for improved collaboration and exchange of knowledge. This council acts through sub-sectorial groups. A second group of measures is focused on the joint supply of information and knowledge to industry and the academy. A third group of measures includes projects that supply direct support to innovation in individual businesses. Although it is still too soon to make final evaluations, preliminary results show positive trends of increasing innovation activity.