Do innovation and entrepreneurship vitality enhance university-industry collaboration? Roles of financial development and educational investment

This study investigates whether regional innovation and entrepreneurship vitality drives university-industry collaboration and examines how financial development and educational investment condition this relationship. Drawing on panel data from Chinese listed firms from 2009 to 2023, the analysis applies two-way fixed effects, endogeneity checks, and a Heckman two-step model to address selection concerns. The findings indicate that firms in regions with higher innovation and entrepreneurship activity tend to collaborate more frequently with universities. Further, regions featuring well-developed financial systems and stronger educational investment show a heightened positive impact of regional innovation vitality on collaboration. Heterogeneity tests suggest that government intervention, city centrality, and local education levels moderate these effects. The results emphasize the importance of fostering not only vibrant entrepreneurial ecosystems, but also complementary factors—such as financial resources and robust higher education—to enhance innovation-driven partnerships.