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Does government funding complement or substitute private research funding to universities?

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  • Muscio, Alessandro
  • Quaglione, Davide
  • Vallanti, Giovanna

Abstract

There is growing political pressure on universities to intensify their interaction with industry and to enlarge their own research funding options, in a context characterised by increasing constraints on public spending. However, whether the successful achievement of such a political desired outcome is consistent with a restriction of government funding is not clear and requires further investigation. As a matter of fact, there is scant empirical evidence on whether and to what extent government funding affects the external funding options available to universities, in particular those related to research and consulting activities. By using a set of probit and tobit panel data models estimated on financial data for the whole population of Italian university departments engaged in research in the Engineering and Physical Sciences, this paper provides evidence that government funding to universities complements funding from research contracts and consulting, contributing to increasing universities’ collaboration with industry and activating knowledge transfer processes.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 42 (2013)
Issue (Month): 1 ()
Pages: 63-75

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Handle: RePEc:eee:respol:v:42:y:2013:i:1:p:63-75

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

Related research

Keywords: University; Collaboration; Technology and knowledge transfer; Research funding; Third mission;

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References

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Citations

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Cited by:
  1. Aiello, Francesco & Pupo, Valeria & Ricotta, Fernanda, 2013. "Firm heterogeneity in TFP, sectoral innovation and geography. Evidence from Italy," MPRA Paper 48573, University Library of Munich, Germany.
  2. Paola Cardamone & Valeria Pupo & Fernanda Ricotta, 2014. "Assessing The Impact Of University Technology Transfer On Firms’ Innovation," Working Papers 201403, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  3. Ruslan Rakhmatullin & Louis Brennan, 2014. "Motivation Behind Researchers’ Participation in Formal Networking Research Projects Funded by the European Union," Journal of the Knowledge Economy, Springer, vol. 5(2), pages 305-329, June.
  4. Muscio, Alessandro & Nardone, Gianluca, 2012. "The determinants of university–industry collaboration in food science in Italy," Food Policy, Elsevier, vol. 37(6), pages 710-718.

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