*3.5. Integrated Analytical Framework*

The establishment and evolution of joint R&D institutes co-established by Chinese research universities and their "Western industrial partners" may result in collisions between Chinese and Western institutional logics. Thus, we need an integrated framework to link the macro and micro level of analysis. Based on synthesising the theoretical insights discussed above, the following analytical framework is constructed in Table 2.


**Table 2.** Institutional evolution of joint R&D Institutes co-established by Chinese research universities and international enterprises.

#### **4. Results and Discussion**

The results of this paper examine the institutional development and contextual relevance of a joint R&D institute co-established by a Chinese research university and an international enterprise. The discussions return to the research question posed in the introduction section of the paper and link the findings from the case back to the analytical framework of Cai's [62,69] institutional orders in the evolution of Triple Helix models. Which mingling institutional logics, respectively carried by Tsinghua

University and the UTC, affect the collaboration between both parties moving from informal R&D collaboration toward an institutionalized organization?

#### *4.1. Stage 1: Realization of the Needs*

#### 4.1.1. Common Belief: Logics of Technology and Knowledge Innovation

In the first stage, it has been commonly acknowledged that single organizational sectors alone can no longer respond to changes and uncertainties unless they cooperate with each other [49]. In the circumstances of this study, when China tried to deepen its integration into the global society, we can perceive a rising awareness in universities, industry and government that technology and knowledge innovation is key for sustainable economic growth. This common belief started to grow and enabled the "Triple Helix impetus" [69].

To motivate the universities and enterprises to cooperate with each other, the Chinese government provided regulatory mandates. In 1996, the law on "*Promoting the Transformation of Scientific and Technological Achievements*" was issued to encourage joint R&D activities. In 1999, the Ministry of Education launched the "*Action Scheme for Invigorating Education in the 21st Century*". Within this scheme, the "*Project to Stimulate the Industrialization of High-Technology Industry in Universities*" was specifically implemented to develop joint R&D institutes in universities. The visible result in 2000 saw an over 200% increase in R&D centers from previous years [6]. China is turning to gain a stronger normative basis for developing the Triple Helix [50]. Both the normative and regulative initiatives lead to the second and the third stages of Triple Helix evolution.

4.1.2. The Motivation of UTC to Work with Tsinghua: Logics of Knowledge Innovation and Market Orientation

UTC has its own in-house research institute. Like most of the in-house research institutes of large enterprises, the UTC research institute is funded by the business units of UTC; the difference is that it supports the organic growth of UTC not only through technology innovation, but also it pays great attention to knowledge and process innovation. Some research fellows of the UTC research institute can go back to academia without an academic gap but possessing advantageous experience working closely with industry. Considering the knowledge innovation capacity of the UTC research institute, why did UTC still need a joint R&D institute with Tsinghua? It was the then-Director of the UTC research institute who made the decision to work with Tsinghua (Interview THU-UTC 05, 06).

First, UTC considered expanding its market in China. A university-based joint R&D institute could provide a breakthrough and a solid foundation. Tsinghua was strategically selected as a channel for UTC to get close to the Chinese government, as UTC knew of the governmental resources possessed by Tsinghua (Interview THU-UTC 05, 06). Second, the current tendency in industrial development required UTC to explore the pathway of system solutions in the new architecture of building control. The team of Professor Jiang Yi, from the School of Architecture at Tsinghua, was world-renowned in this field (Interview THU-UTC 05, 06). Third, a joint R&D institute at Tsinghua could provide high-quality but low-cost researchers. Moreover, research students engaging in joint R&D projects would become candidates for their talent pool. Some hidden motivations were revealed by a member of the Tsinghua-UTC Center, who was a representative of the UTC side:

Actually, five million US dollars is not a big amount for UTC as a large international enterprise. The cost effectiveness of this venture is very high. It seems like UTC does not have concrete requirements for the center. This is a very smart strategy. The Tsinghua researchers can feel UTC's kindness and flexibility and they are pleased to work on high-quality projects. Moreover, UTC can win some prestige in China from partnering with Tsinghua. With the Center as a window, UTC has gained some added value: it has had opportunities to join Sino-US energy cooperation at the national level. Professor Jiang is a leader of one of the research themes, so UTC can take part in high-profile cooperation through the Tsinghua-UTC

Center. Professor Jiang has also introduced UTC to governmental agencies including the Ministry of Construction and the MOST. It is crucial for UTC to expand its market shares in China. (Interview THU-UTC 04)
