Open innovation and innovative performance of universities: Evidence from China

University-industry interactions have been extensively discussed by economic geographers. However, while universities increasingly engage in local and nonlocal interactions with the industry, there is a lack of evidence concerning the consequences of universities becoming involved in these open innovation processes. Therefore, this study empirically examines the effects of local and nonlocal knowledge interactions on the innovative performance of universities by utilizing a large panel database constructed from a sample of 185 universities in China. First, we observe that both local and nonlocal interactions have an inverted U-shaped relationship with university innovative performance. Second, local interactions combined with nonlocal interactions have a negative effect on the innovative performance of universities. Finally, we find that a balance is required between local and nonlocal interactions to enhance university performance. These results have important implications for policy design.