This paper aims to explain empirically the effects of basic science outcomes by universities and public institutes on firms' performance. Although we believe that the basic science of universities and public institutes contributes to product innovation for firms, it is not necessarily explained based on evidence. We think that it is contribution for innovation management to explain empirically how basic science helps firms' performance. Therefore, we obtained data through an original questionnaire survey we had delegated an investigation company to carry out. Those surveyed comprised 20455 firms registered as Internet monitors throughout the country and covering all industries. In this paper, we used the data of 5360 firms of these firms (response rate was about 25%). Based on this data, we analyzed using ordered probit model and poisson model according to distribution of response results. As a result, we found that larger firms tend to produce goods or services based on basic research outcomes of universities and public institutes in manufacturing while it is not true for non-manufacturing firms. In addition, we found that the accumulation of researchers of science and technology in each area has some effects only in manufacturing.
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