The Influence of Industry-University Interactions on Industrial Innovation in Ghana: A Structural Equation Modeling Approach

Business organisations as end users of innovation interact with universities for knowledge transfer for significant improvement in business practices and competitive advantage. These include formal and informal links through which innovative outcomes are achieved. This paper considers the influence of formal links between industries and universities on innovation taking place in the industry from the perspective of businesses in Ghana. Based on a survey of business organisations, the analysis and results of a structural equation modeling of the data does not support a claim that organisations' formal links with universities in Ghana influence innovation, but with mediating effects of co-operate collaborations and knowledge-based networking, there is sufficient evidence for innovative performance eventually in organisations. It is concluded here that formal engagements of organisations with universities can lead to innovation nonetheless, when collaborations and networking are both used to strengthen innovative processes. The results are of significant value to the Ghana Government and the private sector for the implementation of policies that will incentivise business executives in the country to apparently interact more with knowledge actors for effective innovations performance.