Commercial Incentives in Academia
AbstractThis paper investigates the effects of monetary rewards from commercialisation on the pattern of research. We build a simple repeated model of a researcher capable to obtain innovative ideas. We analyse how academic and market incentives affect the allocation of the researcher’s time between research and development. We argue, however, that technology transfer objectives also affect the choice of research projects. Although commercialisation incentives reduce the time spent in research, they might also induce researchers to conduct research that is more basic in nature, contrary to what the “skewing problem” would presage. Monetary rewards induce a more intensive search for (ex-post) path-breaking innovations, which are more likely to be generated through (ex-ante) basic research programs. These results are shown to hold even if development delays publication.
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Bibliographic InfoPaper provided by Department of Economics, City University London in its series Working Papers with number 08/13.
Date of creation: 2008
Date of revision:
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Postal: Department of Economics, Social Sciences Building, City University London, Whiskin Street, London, EC1R 0JD, United Kingdom,
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Web page: http://www.city.ac.uk
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Faculty behaviour; basic vs. applied research;
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