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The Knowledge Filter and Economic Growth: The Role of Scientist Entrepreneurship

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Author Info
David B. Audretsch ()
Taylor Aldridge ()
Alexander Oettl

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Abstract

This paper examines the prevalence and determinants of the commercialization of research by university scientists funded by grants from the National Cancer Institute (NCI). Because the two publicly available modes of scientist commercialization – patents and Small Business Innovation Research (SBIR) grants – do not cover the full spectrum of commercializing activities undertaken by university scientists, the study also includes two additional measures obtained from detailed scientist interviews: licensing of intellectual property and starting a new firm. These measures are used to assess both the prevalence and determinants of scientist commercialization of research. In particular, the empirical findings suggest seven important insights: 1) Scientists receiving funding from the National Cancer Institute exhibit a robust propensity to commercialize their research. However, the prevalence of commercialization depends highly upon the actual mode of commercialization. Some modes of commercialization, such as patents, are more prevalent, while other modes, such as funding by the SBIR program are rarely used. 2) Scientist entrepreneurship is the sleeping giant of commercializing university research. More than one in four patenting NCI scientists have started a new firm. 3) Two paths for commercialization of scientist research are identified - the TTO route and the entrepreneurial route. Scientists who select the TTO route by commercializing their research through assigning all patents to their university TTO account for 70 percent of NCI patenting scientists. Scientists who choose the entrepreneurial route to commercialize their research, in that they do not assign patents to their university TTO, comprise 30 percent of patenting NCI scientists. 4) Social capital enhances the propensity for scientists to commercialize their research. The impact of social capital is particularly high for the commercialization mode of scientist entrepreneurship. 5) Technology Transfer Offices are found to be helpful for the mode of commercialization involving licenses. There is less evidence suggesting that they promote scientist entrepreneurship.6) For scientists who perceive that they are helped by their Technology Transfer Office, licensing is not only the most prevalent mode of commercialization, but it also is a substitute for entrepreneurship. For scientists who perceive that they are not helped by their Technology Transfer Office, entrepreneurship emergences as a much more important mode of commercialization and is complementary to licensing. 7) Scientists choosing the entrepreneurial route to commercialize their research, by not assigning patents to their university to commercialize research, tend to rely on the commercialization mode of entrepreneurship. By contrast, scientists who select the TTO route by assigning their patents to the university tend to rely on the commercialization mode of licensing.

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Paper provided by Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group in its series Papers on Entrepreneurship, Growth and Public Policy with number 2006-11.

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Length: 67 pages
Date of creation: May 2006
Date of revision:
Handle: RePEc:esi:egpdis:2006-11

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Richard A. Jensen & Marie C. Thursby, 2004. "Patent Licensing and the Research University," NBER Working Papers 10758, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Andrew A. Toole & Dirk Czarnitzki, 2005. "Biomedical Academic Entrepreneurship Through the SBIR Program," NBER Working Papers 11450, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. 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)
  4. Jaffe, Adam B & Lerner, Josh, 2001. "Reinventing Public R&D: Patent Policy and the Commercialization of National Laboratory Technologies," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 167-98, Spring.
  5. Jaffe, Adam B & Trajtenberg, Manuel & Henderson, Rebecca, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 577-98, August. [Downloadable!] (restricted)
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  6. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December. [Downloadable!] (restricted)
  7. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc. [Downloadable!]
  8. Levin, Sharon G & Stephan, Paula E, 1991. "Research Productivity over the Life Cycle: Evidence for Academic Scientists," American Economic Review, American Economic Association, vol. 81(1), pages 114-32, March. [Downloadable!] (restricted)
  9. Audretsch, David B. & Link, Albert N. & Scott, John T., 2002. "Public/private technology partnerships: evaluating SBIR-supported research," Research Policy, Elsevier, vol. 31(1), pages 145-158, January. [Downloadable!] (restricted)
  10. Lockett, Andy & Siegel, Donald & Wright, Mike & Ensley, Michael D., 2005. "The creation of spin-off firms at public research institutions: Managerial and policy implications," Research Policy, Elsevier, vol. 34(7), pages 981-993, September. [Downloadable!] (restricted)
  11. Toole, Andrew A. & Czarnitzki, Dirk, 2005. "Biomedical Academic Entrepreneurship Through the SBIR Program," ZEW Discussion Papers 05-47, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  12. Lerner, Josh, 1999. "The Government as Venture Capitalist: The Long-Run Impact of the SBIR Program," Journal of Business, University of Chicago Press, vol. 72(3), pages 285-318, July. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Thurik, Roy, 2009. "Entrepreneurship, Economic Growth and Policy in Emerging Economies," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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  2. Viktoria Kocsis & Ruslan Lukach & Bert Minne & Victoria Shestalova & Nick Zubanov & Henry van der Wiel, 2009. "Relation entry, exit and productivity," CPB Documents 180, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  3. Hugo Erken & Piet Donselaar & Roy Thurik, . "Total Factor Productivity and the Role of Entrepreneurship," Tinbergen Institute Discussion Papers 09-034/3, Tinbergen Institute. [Downloadable!]
    Other versions:
  4. Jerry Thursby & Anne Fuller & Marie Thursby, 2007. "US Faculty Patenting: Inside and Outside the University," NBER Working Papers 13256, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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