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Knowledge transfer (KT) between higher education institutions (HEIs) and businesses is seen as a key element of innovation in knowledge-driven economies: HEIs generate knowledge that can be adopted in the regional economy. This process of valorization has been studied extensively, mainly with a focus on universities. In the Netherlands, there is a binary system of higher education comprising universities and the more practice-oriented colleges of higher education. From 2001 these colleges have played an increasingly important role in KT, which gives rise to the question of whether there are differences in the frequency and structure of KT involving universities and KT involving colleges. Colleges appear easier to access for [small and medium enterprises] SMEs, because of their focus on business practices. The interactions between universities and SMEs are more localized, suggesting the need for face-to-face interactions in those contacts. Furthermore, the results reiterate the importance of the absorptive capacity of firms and previously established contacts of entrepreneurs in explaining firm-HEI interaction.

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