MIT Sloan Management Review Article on Developing Successful Strategic Partnerships With Universities

Collaborations between companies and universities are critical drivers of the innovation economy. These relationships have long been a mainstay of corporate research and development (R&D) — from creating the knowledge foundations for the next generation of solutions, to serving as an extended “workbench” to solve short-term, incremental problems, to providing a flow of newly minted talent. As many corporations look to open innovation to augment their internal R&D efforts, universities have become essential partners. Indeed, companies now look to universities to anchor an increasingly broad set of innovation activities, especially those grounded in engaging with regional innovation ecosystems. Silicon Valley, Kendall Square in Cambridge, Massachusetts, and Block 71 in Singapore are among the most visible innovation ecosystems where universities are essential stakeholders in an innovation community that also includes corporations, government entities, venture investors, and entrepreneurs. Thus, in addition to serving as sources of people and ideas for corporations, university collaborations are an important mechanism for corporations seeking to open up new avenues of engagement with a broader innovation ecosystem.

Following corporate giants like General Electric, Siemens, Rolls-Royce, and IBM, which have collaborated with universities for years, a variety of younger companies including Amazon, Facebook, Google, and Uber are using universities as a key part of their early-stage innovation and new ventures strategy. 1 Even smaller, more regionally oriented companies in diverse sectors such as mining and automotive have come to believe that universities are key ecosystem stakeholders in supporting and shaping their regional economies.

About the Author

Lars Frølund (@LarsFrolund) is a visiting fellow at the MIT Innovation Initiative. Fiona Murray (@Fiona_MIT) is the William Porter Professor of Entrepreneurship at MIT’s Sloan School of Management and codirector of the MIT Innovation Initiative. Max Riedel (@LarsFrolund) is a consultant on university relations for Siemens AG in Munich, Germany.

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