Exploring the Curvilinear Relationship between Academic-Industry Collaboration Environment and Innovation Performance: A Multilevel Perspective

Academic institutions play a crucial role in knowledge production and driving innovation and economic growth. To enhance their capacity to deliver on these responsibilities, they are increasingly urged to establish academic-industry collaboration (AIC) environments to support research and innovation activities by their faculty and students. Despite the recognized importance of AIC in stimulating innovation performance, there is limited research exploring the cross-level impact of AIC on innovation performance. This study aims to address this research gap by investigating the relationship between the AIC environment and innovation performance while specifically examining the cross-level mediating role of researchers' technological capability in this relationship. The study used a hierarchical linear model (HLM) approach, drawing on data from 187 researchers at 14 universities and academic institutions in the United Arab Emirates. The study's results reveal a curvilinear (inverted U-shaped) effect of the AIC environment on innovation performance and a positive correlation between researchers' technological capability and innovation performance. Furthermore, the AIC environment demonstrates a curvilinear effect on researchers' technological capability, with researchers' technological capability partially mediating the relationship between the AIC environment and innovation performance. These findings have significant theoretical and practical implications for policymakers in government agencies and university management seeking to develop evidence-based policies for effective science and technology management that enhance innovation performance.