Blog Posts

Academia and Industry: How Do They Get Along?

2025-05-24 16:25 Industries R&D

Key takeaways

  • GDP grows for countries with higher R&D expenditure, businesses partnering with educational institutions gain a competitive advantage, academia gets access to real-world applications, employees benefit from externalities generated;
  • Some of the industry leading companies: Amazon, NVIDIA, Google, IBM, Shell, Siemens – demonstrate robust R&D effort;
  • For the MENA region, partnerships involving NYU Abu Dhabi, Sorbonne and Khalifa University, American University of Sharjah in the UAE and KAUST in Saudi Arabia are mentioned among other best practice examples.

Globalization may lose its speed: international high-tech trade growth rates fluctuate sharply, the number of restrictive measures and inward-looking industrial policies grows, manufacturers redefine global value chains due to technological change and geopolitical instability.
World high-tech exports, 2017-2024 (annual growth rate, %)
Source: WIPO

Competing agendas hinder cross-sector communication, further affecting academic-industry partnerships (AIP). Companies, endeavoring to establish R&D sites abroad, encounter unwillingness to cooperate – difficulties in quality control, research approach and requirements clarification eventually force them to opt out of foreign teams. Now, when the competition is fiercer than ever, financial and human capital constraints, and IP rights issues become their biggest woes. The greatest challenge though is actors questioning efficiency of academia-industry collaboration.

AIP Stakeholders: What For?

1. Countries, allocating a higher percentage of their GDP to R&D, average to rank better and succeed in technological and scientific discoveries more:
Countries by R&D Spending
No. Country R&D spending
(% of GDP)
World Competitiveness
Ranking
Nominal GDP per capita
Ranking
Advancement Areas
1Israel5,562221ICT, biotechnology
2Korea Rep.4,932033semiconductors, electronics, automotive industries
3United States3,46126technology, finance, healthcare
4Belgium3,431816chemicals, logistics, pharmaceuticals
5Sweden3,42615telecommunications, biotech, engineering
6Switzerland3,3622pharmaceuticals, precision engineering, finance
7Japan3,303839electronics, robotics, automotive
8Austria3,262614technology, renewable energy, manufacturing
9Germany3,142417automotive, engineering, chemicals
10Finland2,991518telecommunications, clean technology, education technology
Sources: WORLDOSTATS, IMD, IMF, StatisticsTimes (data for 2024)

Moreover, a fundamental study, covering data from 1950 to 2010 for about 15 000 universities in 1500 regions across 78 economies, revealed a positive correlation between the number of universities and a country’s future GDP per capita (10% increase – 0,4% growth).
2. Academic partnerships enable businesses to make breakthroughs and enhance their market competitiveness. These are some cases with the major industry players:
Company-Academic Collaborations
Company Industry Academic Partner Fields
Amazon, NVIDIA Technology University of Washington, University of Tsukuba generative AI, multimodal systems
Google Technology UC Berkeley, Columbia University chemistry simulations, quantum computing
IBM Technology Rensselaer Polytechnic Institute quantum computing
Siemens Energy Manufacturing University of Strathclyde digitalization of wind farms, energy storage, resilient grids, superconductivity
Shell Oil & Gas University of Houston carbon management, hydrogen, circular plastics
Alliance for Automotive Innovation Automotive University of Tennessee auto-related government policy research
Bristol-Myers Squibb Healthcare UTSA chemical reactions, pharmaceutical manufacturing routes
Alibaba Cloud Cloud Computing, Retail Universiti Malaya workforce development
Furthermore, academia fosters entrepreneurship: 100 universities, with UC Berkeley, Stanford and Harvard at the helm, accounted for nearly 43 600 startup founders in 2024.
3. Through partnerships with leading companies, educational institutions gain access to advanced technologies and industry insights, enabling them to optimize research infrastructure (often with industry sponsorship), modify research agendas, and adjust programs to sector-specific demands, thereby amplifying their social impact.
4. With 78 million new job opportunities projected to emerge by 2030, academia plays a pivotal role in addressing labour market gaps due to the urgent upskilling needs.

University-Corporate Partnerships: Regional Focus

KSA- and UAE-based institutions are the key drivers of AIPs in the MENA region:
Significant progress has been made so far in uniting academia and industry:
  1. Aligning with the UAE Centennial 2071 vision to create a knowledge-based economy, STI Policy, funding R&D in 7 sectors, and numerous deep tech programs (AI Strategy 2031, the UAE Space Agency, the Technology Transformation Program) were launched.
  2. Driven by the RDIA initiatives (2025 Research Grants, Semiconductor Training Program, Gulf Capital Partnership), the number of researchers in the private sector more than doubled from 1 224 in 2021 to 2 790 in 2023, with the total figure growing at a CAGR of 14% over the three-year period.
  3. Qatar Science & Technology Park (QSTP) is a hub for academia-industry partnerships, hosting over 200 tech companies.
  4. Bahrain’s Higher Education Council (HEC) promotes university-corporate linkages through the Bahrain Economic Vision 2030 (the University of Bahrain and AWS).

There is considerable room for improvement though. Universities lack industry expertise, while businesses’ choke point is a broader perspective: unique knowledge, unpublished research. To bridge the gaps, governments should continue encouraging scientific research and focus more on mitigating skill deficiencies and maximizing effectiveness of R&D incentives. If joint ventures and licensing agreements are the first priority, tailored funding mechanisms and proactive IP management come to the fore.

References