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Do competitively acquired funds induce universities to increase productivity?

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  • Bolli, Thomas
  • Somogyi, Frank

Abstract

Abstract This paper analyzes the impact of private and public third-party funds on the productivity of Swiss university departments and public research institutions. Estimating a production function assuming that labor inputs produce master students and scientific publications reveals a positive effect of public third-party funding on productivity but not for private funds. However, once we include technology transfer as an additional output, the coefficient for public third-party funding turns insignificant while private funding becomes significant, indicating that the disciplining effect of public donors focuses on publications while private donors foster technology transfer. We employ three alternative approaches to tackle endogeneity and find qualitatively robust results.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 40 (2011)
Issue (Month): 1 (February)
Pages: 136-147

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Handle: RePEc:eee:respol:v:40:y:2011:i:1:p:136-147

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Web page: http://www.elsevier.com/locate/respol

Related research

Keywords: Productivity Research University Technology transfer Third-party funding Endogeneity;

References

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  1. Chris (Hristos) Doucouliagos & Malcolm Abbott, 2007. "Competition and Efficiency: Overseas students and technical efficiency in Australian and New Zealand Universities," Economics Series 2007_09, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
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  6. Cherchye, L. & Abeele, P. Vanden, 2005. "On research efficiency: A micro-analysis of Dutch university research in Economics and Business Management," Research Policy, Elsevier, vol. 34(4), pages 495-516, May.
  7. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 617-43, December.
  8. Philippe Aghion & Mathias Dewatripont & Caroline M. Hoxby & Andreu Mas-Colell & André Sapir, 2009. "The Governance and Performance of Research Universities: Evidence from Europe and the U.S," NBER Working Papers 14851, National Bureau of Economic Research, Inc.
  9. André Sapir & Philippe Aghion & Mathias Dewatripont & Andreu Mas-Colell, 2008. "Higher aspirations: An agenda for reforming European universities," ULB Institutional Repository 2013/174284, ULB -- Universite Libre de Bruxelles.
  10. Spyros Arvanitis & Ursina Kubli & Nora Sydow & Martin Woerter, 2005. "Knowledge and Technology Transfer (KTT) Activities Between Universities and Firms in Switzerland: The Main Facts : An Empirical Analysis Based on Firm-level Data," KOF Working papers 05-115, KOF Swiss Economic Institute, ETH Zurich.
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  12. Carayol, Nicolas & Matt, Mireille, 2006. "Individual and collective determinants of academic scientists' productivity," Information Economics and Policy, Elsevier, vol. 18(1), pages 55-72, March.
  13. Arvanitis, Spyros & Kubli, Ursina & Woerter, Martin, 2008. "University-industry knowledge and technology transfer in Switzerland: What university scientists think about co-operation with private enterprises," Research Policy, Elsevier, vol. 37(10), pages 1865-1883, December.
  14. COELLI, Tim, 2000. "On the econometric estimation of the distance function representation of a production technology," CORE Discussion Papers 2000042, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  15. Frederick van der Ploeg, 2008. "Towards Evidence-based Reform of European Universities," CESifo Economic Studies, CESifo, vol. 54(2), pages 99-120, June.
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  17. Banal-Estanol, A. & Macho-Stadler, I., 2008. "Commercial Incentives in Academia," Working Papers 08/13, Department of Economics, City University London.
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Cited by:
  1. De Fuentes, Claudia & Dutrénit, Gabriela, 2012. "Best channels of academia–industry interaction for long-term benefit," Research Policy, Elsevier, vol. 41(9), pages 1666-1682.
  2. Grimpe, Christoph, 2012. "Extramural research grants and scientists’ funding strategies: Beggars cannot be choosers?," Research Policy, Elsevier, vol. 41(8), pages 1448-1460.

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