Innovation Pays Off—Especially with University Partners

Using 2,986 Latin American firms from 2009–2017 (LAIS), I test whether university collaboration strengthens the link between innovation spending and innovation outcomes. Findings: First, spending is positively related to outcomes, and collaboration significantly amplifies that payoff, resulting in the same budget and more innovation with a university partner. Collaboration quality matters. Managerially: co-design projects, align on IP, invest in advanced skills, and “rent” academic capabilities to de-risk R&D.