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The Impact of University Research on Corporate Patenting

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  • Christian Helmers
  • Mark Rogers

Abstract

This paper analyses the association between the number of patenting manufacturing firms and the quantity and quality of relevant university research across UK postcode areas. We show that different measures of research `power' and `excellence' positively affect the patenting of small firms within the same postcode area. Patenting by large firms, in contrast, is unaffected by research undertaken in nearby universities. This confirms the commonly held view that location matters more for small firms than large firms. We also investigate specific channels of technology transfer, finding that university-industry knowledge transfer occurs through both formal and informal channels. From a methodological point of view, we contribute to the existing literature by accounting for potential simultaneity between university research and patenting of local firms by adopting an instrumental variable approach. Moreover, we also allow for the effects of the presence of universities in neighbouring postcode areas to influence firms' patenting activity by incorporating spatial neighborhood effects.

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Bibliographic Info

Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0054.

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Date of creation: Sep 2010
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Handle: RePEc:cep:sercdp:0054

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Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp

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Keywords: Patents; universities; knowledge transfer; spillover; UK;

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Cited by:
  1. Haskel, J & Haskel, J & Hughes, A & Bascavusoglu-Moreau, E, 2014. "The economic significance of the UK science base: a report for the Campaign for Science and Engineering," Working Papers 13751, Imperial College, London, Imperial College Business School.

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