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Designing Efficient Institutions for Science-Based Entrepreneurship: Lessons from the US and Sweden

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Author Info
Henrekson, Magnus () (Dept. of Economics, Stockholm School of Economics)
Rosenberg, Nathan () (Department of Economics, Stanford University)

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Abstract

The recent ‘scientification’ of commercial technology has brought the interface between universities and industry into sharp focus. In particular, academic entrepreneurship, i.e., the variety of ways in which academics take direct part in the commercialization of research, is widely discussed. The purpose of this paper is to suggest a framework for identifying the strategic individual decisions involved when educational choice is translated into science-based entrepreneurship. Identifying these decisions also allows us to hypothesize what incentive structures should be crucial. Our suggested framework is informally tested by an in-depth examination of the experiences of Sweden and the US. Despite large levels of R&D spending and comprehensive government support schemes, science-based entrepre-neurship has been far less important in Sweden compared to the US. Our analysis points to weaknesses in the Swedish incentive structure in key respects: the rate of return to human capital investment, incentives to become an entrepreneur and to expand existing businesses, and insufficient incentives within the university system to adjust curricula and research budgets to outside demand. Several policy measures during the 1990s have reduced the weaknesses in the Swedish incentive structure. The current emergence of a more vibrant entrepreneurial culture in Sweden in some areas is consistent with these changes. Our analysis suggests that a policy aimed at encouraging science-based entrepreneurship should focus on strengthening individual incentives for human capital investment and entrepreneurial behavior both within universities and in business.

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Publisher Info
Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 410.

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Length: 28 pages
Date of creation: 06 Nov 2000
Date of revision:
Publication status: Published in Journal of Technology Transfer, 2001, pages 207-231.
Handle: RePEc:hhs:hastef:0410

Note: Forthcoming in the Journal of Technology Transfer (April 2001)
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Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
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Related research
Keywords: Academic entrepreneurship; Innovation; R&D; Spin-off firms; Technology transfer; University-industry relations; Universities and business formation;

Other versions of this item:

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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References listed on IDEAS
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.:
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Full references

Cited by:
(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. Jeannine Horowitz Gassol, 2005. "The effect of university culture and stakeholders' perceptions on university-business linking activities," Economics Working Papers 826, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  2. Daniel Ljungberg & Mattias Johansson & Maureen McKelvey, 2008. "Polarization of the Swedish University Sector Structural Characteristics and Positioning," DRUID Working Papers 08-02, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  3. Henrekson, Magnus, 2002. "Entrepreneurship: A Weak Link in the Welfare State," Working Paper Series in Economics and Finance 518, Stockholm School of Economics, revised 04 Mar 2005. [Downloadable!]
    Other versions:
  4. Johansson, Dan, 2004. "Economics without Entrepreneurship or Institutions: A Vocabulary Analysis of Graduate Textbooks," Ratio Working Papers 58, The Ratio Institute. [Downloadable!]
    Other versions:
  5. Andrea Bikfalvi & Christian Serarols & David Urbano & Yancy Vaillant, 2007. "Technological Trampolines for new venture creation in Catalonia: the case of University of Girona," Working Papers 200701, Department of Business Economics, Universitat Autonoma de Barcelona. [Downloadable!]
  6. Kander, Astrid & Ejermo, Olof, 2006. "The Swedish Paradox," CIRCLE Electronic Working Paper Series 2006-01, CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University. [Downloadable!]
  7. Bianchi, Milo & Henrekson, Magnus, 2005. "Is Neoclassical Economics still Entrepreneurless?," Working Paper Series in Economics and Finance 584, Stockholm School of Economics, revised 02 Feb 2005. [Downloadable!]
    Other versions:
  8. Goldfarb, Brent & Henrekson, Magnus, 2001. "Bottom-Up vs. Top-Down Policies towards the Commercialization of University Intellectual Property," Working Paper Series in Economics and Finance 463, Stockholm School of Economics, revised 26 May 2002. [Downloadable!]
  9. Henrekson, Magnus & Jakobsson, Ulf, 2003. "The Swedish Model of Corporate Ownership and Control in Transition," Working Paper Series in Economics and Finance 521, Stockholm School of Economics, revised 16 Apr 2003. [Downloadable!]
    Other versions:
  10. U. Witt & C. Zellner, 2005. "Knowledge-based Entrepreneurship: The Organizational Side of Technology Commercialization," Papers on Economics and Evolution 2005-04, Max Planck Institute of Economics, Evolutionary Economics Group.
  11. Pawan Agarwal, 2006. "Higher Education in India: The Need for Change," Working Papers id:576, esocialsciences.com. [Downloadable!]
  12. Nyström, Kristina, 2008. "Regional Institutional Environment and Swedish Regional New Firm Formation," Working Paper Series in Economics and Institutions of Innovation 142, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies. [Downloadable!]
  13. Goldfarb, Brent & Henrekson, Magnus & Rosenberg, Nathan, 2001. "Demand vs. Supply Driven Innovations: US and Swedish Experiences in Academic Entrepreneurship," Working Paper Series in Economics and Finance 0436, Stockholm School of Economics. [Downloadable!]
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  15. Djordje Djokovic & Vangelis Souitaris, 2008. "Spinouts from academic institutions: a literature review with suggestions for further research," The Journal of Technology Transfer, Springer, vol. 33(3), pages 225-247, June. [Downloadable!] (restricted)
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This page was last updated on 2009-11-28.

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