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Research and Development at U.S. Research Universities: An Analysis of Scope Economies

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  • Kim, Kwansoo

    (Seoul National University)

  • Barham, Bradford L.

    (U of Wisconsin)

  • Chavas, Jean-Paul
  • Foltz, Jeremy

Abstract

This work investigates the presence and sources of economies of scope in R&D at U.S. research universities. The analysis evaluates the tradeoffs and synergies arising between traditional university research outputs (articles and doctorates) and academic patents. We propose a new measure of economies of scope based on a primal representation of the underlying technology. We derive a decomposition of economies of scope which identifies its sources (e.g., complementarity effects and scale effects). Non-parametric estimates of scope economies using R&D input and output data from 92 research universities show significant economies of scope between articles and patents, but modest complementarities.

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File URL: http://www.aae.wisc.edu/pubs/sps/pdf/stpap487.pdf
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Bibliographic Info

Paper provided by University of Wisconsin, Agricultural and Applied Economics in its series Staff Paper Series with number 487.

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Date of creation: Jul 2005
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Handle: RePEc:ecl:wisagr:487

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  1. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June.
  2. Jeremy Foltz & Bradford Barham & Jean-Paul Chavas & Kwansoo Kim, 2012. "Efficiency and technological change at US research universities," Journal of Productivity Analysis, Springer, vol. 37(2), pages 171-186, April.
  3. Hall, Browyn H. & Link, Albert N. & Scott, John T., 2000. "Universities as Research Partners," Department of Economics, Working Paper Series qt1np920r9, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  4. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-98, October.
  5. Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
  6. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
  7. Marie Thursby & Richard Jensen, 2001. "Proofs and Prototypes for Sale: The Licensing of University Inventions," American Economic Review, American Economic Association, vol. 91(1), pages 240-259, March.
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Cited by:
  1. Cherchye, L.J.H. & Rock, B. de & Vermeulen, F.M.P., 2006. "Analyzing Cost Efficient Production Behavior Under Economies of Scope: A Nonparametric Methodology," Discussion Paper 2006-81, Tilburg University, Center for Economic Research.

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