Science-industry relationships: evidence from Friuli Venezia Giulia University System

In recent years, within a context of shrinking resources and rigorous budget constraints, both nation-wide and local governments are confronted with a growing demand for research funding by universities and, more broadly, by public research organizations (PROs). One criterion for efficient allocation of scarce resources cannot overlook evaluation of the economic and social benefits of research for local and nation-wide communities. This possibility may become even more important in the ”knowledge society”, in which the role of scientific research is seen as essential from many points of view. Recent literature on the topic on one hand emphasizes the importance of spill-over effects which foster agglomeration economies and, on the other, the difficulty of evaluating benefits arising from public investment in research, which takes various and often not easily measurable forms. In particular, some channels have been identified through which benefits flow toward the local economy in terms of new competences, technologies and networks of relationships. Region Friuli Venezia Giulia and, in particular, the Trieste area that is characterized by a very high concentration of (mainly international) research organizations and by the emergence of a lively sector of small firms working in the field of R&D, represent an interesting case study to verify the presence as well as the relevance of specific channels of knowledge diffusion between university and industry at local level.