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Purpose

This paper aims to determine the mediating effects of government-funded research and development (R&D) projects in the relationship between the competence factors of universities and the performance of university–industry cooperation.

Design/methodology/approach

This study has been conducted to analyze the mediating effect of government- and enterprise-funded R&D projects in consideration of the performance during university–industry cooperative projects. In this study, a three-step analysis of the mediating effects (Baron and Kenny, 1986) and Sobel Test are taken for the empirical analysis.

Findings

In the result, R&D funding from the central government partially mediates the performance of university–industry cooperation when the research capacity of the full-time faculty and the size of the Technical Licensing Office (TLO) are taken as independent variables. R&D funding from the central government does not mediate university–industry cooperation when the size of the center for university–industry cooperation is an independent variable. However, R&D funding from a local government does not mediate the performance of university–industry cooperative projects for any chosen independent variables. The results of this study suggest a direction for governmental funding in R&D projects to promote performance during university–industry cooperation. Another requirement is for universities to expand their research capacity and the operations of their TLO.

Originality/value

The majority of former research studies on university–industry cooperation and its performance have focused on the university’s research capacity, the competence of the TLO and the traits of the university.

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