What drives the formation of 'valuable' university-industry linkages?: Insights from the wine industry

Most of the literature on universityindustry (UI) linkages assumes that these linkages are beneficial per se. We question this assumption, suggesting that not all such linkages are equally helpful. In this paper, we explore the factors driving the formation of `valuable UI linkages, conceived as those linkages between universities and firms that have a higher potential to diffuse knowledge to other firms in their regional economy. Our empirical strategy combines case-study methodology with econometric techniques using data from two wine clusters in Chile and in Italy. The firm's knowledge base is found to be a key driver of `valuable UI linkages. We conclude that selectivity should be encouraged among policy makers endeavouring to promote UI linkages.