Academia and Industry: Who Leads, Who Follows, and the Case for Collaboration

The relationship between academia and industry is often framed as a conflict, yet both sectors are partners in cultivating knowledge and innovation. This piece highlights academic contributions to technological and financial advancements, advocating for a shift toward collaboration and mutual respect to prepare students for the challenges of a rapidly evolving landscape.

Since I first considered entering academia, one phrase has echoed consistently in lecture halls, seminars, news articles, conferences, statements from regulatory bodies, and among industry leaders: academia needs to catch up to the industry because there exists a significant gap between the two. Now, as I complete my fourth year in academia, moving into my fifth year and completing my ninth semester of teaching and research, I've published a variety of articles on topics such as the Industrial Revolution 5.0, delved into how accounting may evolve to incorporate a triple-entry framework, the economic impact of the Carbon Freight Index, and examined the collapse of a major EdTech firm accounting debacle. In my own way, I believed these efforts were contributing to bridging the industry-academia divide. But, in truth, I was far from achieving this.

I've noticed that as we delve deeper into the realm of Artificial Intelligence (AI), the academic community increasingly turns to industry for answers. But does industry truly hold the solutions we seek?

AI was largely pioneered by academician within universities and research institutions. The foundational theories and early advancements in AI were driven by academic minds as far back as the mid-20th century. Researchers such as Alan Turing, John McCarthy, and Marvin Minsky laid the groundwork with theories, algorithms, and models that remain relevant today. John McCarthy, often regarded as the "father of AI," organised the first conference on artificial intelligence in 1956 at Dartmouth College, where he and his colleagues officially coined the term "artificial intelligence."

While industry now plays a significant role in advancing AI, particularly in applied AI and scaling technologies, the field itself was born from academic research and continues to be deeply influenced by ongoing academic contributions. For instance, let’s look at deep learning, originally conceptualized in academic circles, deep learning saw early foundational work by scholars like Geoffrey Hinton, Yoshua Bengio, and Yann LeCun. Their pioneering research, which included the development of neural networks, was further built upon by industry players. This convergence led to breakthroughs like convolutional neural networks (CNNs) for image recognition, widely adopted in fields from healthcare diagnostics to autonomous vehicles.

Even the way we use ecommerce and banking, the security is based on public key cryptography which in 1976 was developed by Stanford professors Whitfield Diffie and Martin Hellman which now is the foundation of a secure digital communication. ?

Academia has for decades led the way in how the future will be shaped in every other field apart from technologies as well. Look at the domain of management for instance, where academician led the industry. Porter’s Five Forces developed by Michael Porter at Harvard Business School in 1979, this framework provides a systematic way to analyze an industry's competitive forces. The Five Forces model became a staple in corporate strategy, guiding businesses worldwide in understanding competition and improving profitability.

If we talk about my area of interest accounting and finance, there have been many instances where academicians pathed the way into the future practices. Modern Portfolio Theory developed by Harry Markowitz in the 1950s, which introduced the concept of diversification to optimize investment portfolios by balancing risk and return. This framework has been widely adopted by investment firms and financial advisors for constructing investment portfolios.

Accounting Standards and Frameworks (IFRS and GAAP): Many of the principles and standards that underpin international financial reporting and generally accepted accounting practices were developed through academic research. Scholars have contributed significantly to the evolution of these standards, which are now used globally by companies to ensure transparency and consistency in financial reporting.? Similarly, the field of behavioral finance, which studies the psychological influences on investor behavior, has its roots in academic research. Scholars like Daniel Kahneman and Richard Thaler have provided insights that are now widely applied in investment strategies, risk assessment, and understanding market anomalies.

In discussions about the gap between academia and industry, the focus often shifts to the curriculum. From my experience at various institutions, I have observed that nearly every university revises its curriculum approximately every three years to adapt to recent changes in the business landscape. Today's management curriculum covers a wide range of business aspects; however, it's important to recognise that a management degree is not customised for a specific industry or sector (except for specialized MBA programs). Instead, most programmes are designed to ensure students grasp the fundamental principles necessary for the efficient functioning of businesses across various contexts.

What we often miss when we discuss on academia and industry debate is the student’s effort and dedication. While educators and industry professionals play significant roles in bridging the gap between theoretical knowledge and practical application, students themselves must also actively engage in their learning processes.

The notion that academia is far removed from industry fails to capture the dynamic and collaborative relationship that exists between them. Characterizing academia as distant from industry can perpetuate a negative narrative that discourages students from pursuing academic paths. This perspective may lead to a lack of respect for the value of higher education and the critical thinking skills it fosters. In reality, many successful professionals attribute their achievements to the solid foundation built during their academic pursuits.

As I progress further in my academic journey, I aspire to instill a sense of pride in the field of academics. It is vital that we shift the narrative surrounding the relationship between academia and industry from one of conflict to one of collaboration and shared goals. This change in perspective can have a profound impact not only on the way we approach education but also on how we prepare our students for the challenges and opportunities they will face in their careers.

In a world where the rapid pace of technological advancement and globalization continuously reshape industries, it is crucial to recognize that academia and industry are not adversaries but partners in the quest for knowledge and innovation. Both sectors share a common objective: to cultivate skilled individuals capable of contributing meaningfully to society. By fostering a culture of mutual respect, we can better equip students to thrive in their careers, ensuring that the legacies of both academia and industry continue to influence and inspire future generations.