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Harnessing success: determinants of university technology licensing performance

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  • Belenzon, Sharon
  • Schankerman, Mark

Abstract

We study the impact of incentive pay, local development objectives and government constraints on university licensing performance. We develop and test a simple contracting model of technology licensing offices, using new survey information together with panel data on U.S. universities for 1995-99. We find that private universities are much more likely to adopt incentive pay than public ones, but ownership does not affect licensing performance conditional on the use of incentive pay. Adopting incentive pay is associated with about 30-40 percent more income per license. Universities with strong local development objectives generate about 30 percent less income per license, but are more likely to license to local (in-state) startup companies. Stronger government constraints are ‘costly’ in terms of foregone license income and startup activity. These results are robust to controls for observed and unobserved heterogeneity.

Suggested Citation

  • Belenzon, Sharon & Schankerman, Mark, 2007. "Harnessing success: determinants of university technology licensing performance," LSE Research Online Documents on Economics 3726, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:3726
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    Cited by:

    1. Claudia Curi & Cinzia Daraio & Patrick Llerena, 2012. "University technology transfer: how (in)efficient are French universities?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 36(3), pages 629-654.
    2. Conti, Annamaria & Gaule, Patrick, 2011. "Is the US outperforming Europe in university technology licensing? A new perspective on the European Paradox," Research Policy, Elsevier, vol. 40(1), pages 123-135, February.
    3. Giuri, Paola & Munari, Federico & Scandura, Alessandra & Toschi, Laura, 2019. "The strategic orientation of universities in knowledge transfer activities," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 261-278.
    4. Felicia Diana Nicoara & Dorin Maier & Andreea Maier, 2013. "General Aspects Related To The Technology Transfer, The Main Source Of Innovation And Development Among Economic Operators," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 139-147, August.

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    More about this item

    Keywords

    incentives;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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