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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.

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.

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.

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.

This paper aims to identify and classify the parameters that construct the input, processes, output, productivity and outcome variables that affect performance. These parameters are used in the evaluation model to measure research performance in universities so that they can be used as the basis for making leadership policies both at the national and institutional levels.

The design of this research is a quantitative research method using a survey questionnaire that was sent to the heads of research institutions at universities in Indonesia. To obtain these parameters, a test for determining the value of the loading factor was used.

The authors found that input variable parameters consisted of 10 parameters; process variable consisted of 22 parameters; output variable parameters consisted of 8 parameters; productivity variable consisted of 4 parameters; and outcome variable parameters consisted of 10 parameters.

One approach to obtain parameters is through systems theory, where every element that makes up the organization contributes to the achievement of goals. This study attempted to develop parameters in the performance appraisal model of systems theory-based research institutions that are adapted to trends in the direction of research in universities. These parameters are based on aspects of input, process, output, productivity and outcome.