That is the reason, the precepts, and concepts of knowledge, have become important tools for not only widening the scope of utilization of the existing resources but they have become imperative to understand the mysteries of nature and initiate paths of discovering new frontiers of socio-economic and scientific development. It has, therefore, become imperative to promote a closer relationship between academia and business processes.
Eminent social scientist, Murmann says that UK and France lost their industrial leadership positioning in the ‘dye industry’ in the early nineteenth century and pre WWI era to Germany, primarily because they failed to anticipate the changes and improve and improvise their knowledge of the industry. Germany had realized the importance of the close network of academia, industry, and government and worked towards forging ties that resulted in acquiring more knowledge about dye innovation and better government policies and regulations provided them with an enviable competitive edge over Britain and France. ‘Where the industrial-academic-government network was large and close-knit (Germany), collective action on behalf of the dye industry tended to succeed. where the network was small and distant (Britain and the United States), collective action was likely to fail’ (Murmann, 1967).
Biotechnology is another major area that has seen a significant spillover of its research in different fields of industrial growth like pharmaceuticals, medical instruments, agriculture, brewery, etc. The huge implication of research in biotechnology for diversified fields has seen successful linkages between the universities and industries in recent times (Zucker, Darby & Armstrong, 1998). The academia has become extremely important for knowledge-based industries that thrive on change and fostering closer ties facilitates an advantage over their rivals in the business environment through assets accrued from intellectual property rights and patents.