Whether industry–university–research (IUR) collaboration improves firm-level productivity, and under what conditions, remains insufficiently understood. Existing studies often examine the effects of IUR collaboration in isolation, overlooking the fact that productivity outcomes emerge from the interaction of internal capabilities, external environments, and institutional support. This study develops a systems-oriented framework to examine how IUR collaboration affects firm-level total factor productivity (TFP) and how this effect depends on multiple contingencies. Using an unbalanced panel of 24,227 firm-year observations for 3540 Chinese A-share non-financial listed firms from 2011 to 2024, we embed IUR collaboration into an augmented production function that integrates internal research and development (R&D) with externally acquired knowledge. The results show that IUR collaboration is positively associated with firm TFP, with estimated productivity gains of approximately 2.3% in the baseline specification and 3.5% in the instrumental-variable specification. More importantly, this effect is conditional rather than automatic: it is significantly stronger for firms with higher absorptive capacity, firms operating in more dynamic environments, and firms receiving greater innovation subsidies. Additional analyses further show that the effect is concentrated in non-state-owned enterprises and high-technology industries. Overall, the findings suggest that the productivity gains from external knowledge sourcing are system-dependent and shaped by the joint configuration of internal, external, and institutional factors. This study contributes by providing a system-level explanation of how IUR collaboration translates into productivity improvement and by highlighting the importance of complementary mechanisms in innovation systems.
Sun et al. (Fri,) studied this question.