Higher education expansion (HEE) aims to address human capital shortages and advance research and innovation. However, its impact on university-industry collaborations (UIC) remains underexplored. This study investigates the effects of HEE on UIC using panel data from 882 Chinese universities spanning 2006 to 2016. The findings show that increasing university enrollment significantly weakens UIC. Interestingly, this negative effect is less pronounced in highly reputable universities. Further analysis reveals notable differences in the HEE-UIC relationship based on economic fluctuations and the status of the universities as elite or non-elite. Even after addressing potential endogeneity issues, the results remain robust. These insights provide valuable policy recommendations for transitional economies undergoing HEE reforms and seeking to improve human capital.
Hou et al. (Tue,) studied this question.