Trust Formation in University–Industry Collaborations in the <scp>U.S.</scp> Biotechnology Industry: <scp>IP</scp> Policies, Shared Governance, and Champions*,†

<jats:p>Haggling over rights to potential inventions can be a major roadblock to successful university–industry (<jats:styled-content style="fixed-case">UI</jats:styled-content>) collaborations. Yet such collaborations are critical for innovation in science‐based industries. This study examines the roles of universities' intellectual property (<jats:styled-content style="fixed-case">IP</jats:styled-content>) policies and of shared governance for trust formation between academe and industry. The study also examines how <jats:styled-content style="fixed-case">UI</jats:styled-content> champions moderate this process and how trust between university and industry partners affects <jats:styled-content style="fixed-case">UI</jats:styled-content> collaboration outcomes. The analysis of survey data of 105 recent <jats:styled-content style="fixed-case">UI</jats:styled-content> collaborations in the <jats:styled-content style="fixed-case">U.S.</jats:styled-content> biotechnology industry indicates that the flexibility and transparency of university <jats:styled-content style="fixed-case">IP</jats:styled-content> policies and shared governance by <jats:styled-content style="fixed-case">UI</jats:styled-content> partners are both positively related to trust formation. The activities of <jats:styled-content style="fixed-case">UI</jats:styled-content> champions amplify the positive effects of shared governance and at the same time reduce the importance of university <jats:styled-content style="fixed-case">IP</jats:styled-content> policies for trust formation between <jats:styled-content style="fixed-case">UI</jats:styled-content> partners. The amount of trust between partners is positively related to knowledge transfer and innovation performance. The findings suggest that despite widely reported industry concerns over the control of <jats:styled-content style="fixed-case">IP</jats:styled-content>, <jats:styled-content style="fixed-case">UI</jats:styled-content> research partners can develop a trustful environment and thereby plant the seeds for a successful collaboration. In order to enhance trust, companies should not only consider university <jats:styled-content style="fixed-case">IP</jats:styled-content> policies, but also need to actively engage in shared governance with university partners. <jats:styled-content style="fixed-case">UI</jats:styled-content> collaboration champions can help shift the attention of company managers from formal rules set by university <jats:styled-content style="fixed-case">IP</jats:styled-content> policies toward shared project planning, coordination, and implementation with university partners.</jats:p>