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AbstractThis study challenges existing literature which maintains that technology latecomers usually depend on imported technologies to develop emerging high‐tech sectors. This paper argues that the domestic institutional environment in facilitating networking might be more important for developing academia‐industry (A‐I) networks. The co‐evolution of institutions and the knowledge transfer process in the Taiwanese Biopharmaceutical Innovation System (TBPIS) is a case in point. Far from relying purely on foreign technologies, several important institutional and policy changes, which transform the institutional environment from prohibiting A‐I intertwining into encouraging A‐I collaborations, have enabled domestic research institutes to influence the acquisition, creation, and diffusion of knowledge in the innovation network. Nonetheless, the country continues to struggle in commercializing domestic scientific research to step into a knowledge‐based economy. Therefore, this paper suggests that more productive strategies would be helpful to advance domestic academic research, sustain A‐I networks, and strengthen the innovation system.

This article examines the performance of university research commercialisation in Taiwan and Malaysia and specifically discusses the role of incubation intermediaries. Through case study and patent analysis, this article draws lessons from Taiwan and further discusses the mechanisms in place for the successful commercialisation of university research. Lessons from the case offer insights for Malaysia on how university incubation intermediaries can be reorganised to promote better commercialisation outcomes. The Taiwanese experience illustrates that in the right institutional settings—and particularly with the presence of innovative science and technology parks—university incubators tend to promote favourable commercialisation outcomes. More importantly, the ability of university incubators to source for external knowledge and risk capital support positions them to be more effective as intermediaries. Other key success factors include establishing an adequate intellectual property management system and having adequate human resources equipped with intellectual property knowledge. This article further deliberates policy implications.