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

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Author Info
Kim, Kwansoo (Seoul National University)
Barham, Bradford L. (U of Wisconsin)
Chavas, Jean-Paul
Foltz, Jeremy

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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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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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C6 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming

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  1. Richard Jensen & Marie Thursby, 2001. "Proofs and Prototypes for Sale: The Licensing of University Inventions," American Economic Review, American Economic Association, vol. 91(1), pages 240-259, March. [Downloadable!] (restricted)
  2. Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August. [Downloadable!] (restricted)
  3. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. Bronwyn H. Hall & Albert N. Link & John T. Scott, 2001. "Universities as Research Partners," Development and Comp Systems 0012001, EconWPA. [Downloadable!]
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  6. Folts, Jeremy & Barham, Bradford L. & Chavas, Jean-Paul & Kim, Kwansoo, 2005. "Efficiency and Technological Change at U.S. Research Universities," Staff Paper Series 486, University of Wisconsin, Agricultural and Applied Economics. [Downloadable!]
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  1. Cherchye, Laurens & De Rock, Bram & Vermeulen, Frederic, 2006. "Analyzing cost efficient production behavior under economies of scope : a nonparametric methodology," Discussion Paper 81, Tilburg University, Center for Economic Research. [Downloadable!]
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