Using large-scale survey data for firms
located in Portugal, we analyze which firm characteristics are conducive to establishing contacts with universities. Although almost
half of the firms surveyed stated they had established some contacts with universities in the period 2001-2003, only a few (22%) consider universities an important source of knowledge and information for their innovation activities. Our analysis indicates
that the firms? propensity to draw on each of the Portuguese universities is explained by the characteristics of the different firms and their regional and industrial patterns. An unambiguous and statistically robust finding is that proximity matters highly in firms universities linkages ? our estimations reveal that firms are more likely to contacts universities located nearby.