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The Governance and Performance of Research Universities: Evidence from Europe and the U.S

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  • Philippe Aghion
  • Mathias Dewatripont
  • Caroline M. Hoxby
  • Andreu Mas-Colell
  • André Sapir

Abstract

We investigate how university governance affects research output, measured by patenting and international university research rankings. For both European and U.S. universities, we generate several measures of autonomy, governance, and competition for research funding. We show that university autonomy and competition are positively correlated with university output, both among European countries and among U.S. public universities. We then identity a (political) source of exogenous shocks to funding of U.S. universities. We demonstrate that, when a state's universities receive a positive funding shock, they produce more patents if they are more autonomous and face more competition from private research universities. Finally, we show that during periods when merit-based competitions for federal research funding have been most prominent, universities produce more patents when they receive an exogenous funding shock, suggesting that routine participation in such competitions hones research skill.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14851.

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Date of creation: Apr 2009
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Publication status: published as Aghion, P., Dewatripont, M., Hoxby, C., Mas-Colell, A. and Sapir, A. (2010), The governance and performance of universities: evidence from Europe and the US. Economic Policy, 25: 7–59. doi: 10.1111/j.1468-0327.2009.00238.x
Handle: RePEc:nbr:nberwo:14851

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  1. Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
  2. James D. Adams, 2002. "Comparative localization of academic and industrial spillovers," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 2(3), pages 253-278, July.
  3. A Abigail Payne, 2001. "The Effects of Congressional Appropriation Committee Membership on the Distribution of Federal Research Funding to Universities," Public Economics, EconWPA 0111003, EconWPA.
  4. Philippe Aghion & Mathias Dewatripont & Caroline Hoxby & Andreu Mas-Colell & André Sapir, . "Higher aspirations: an agenda for reforming European universities," Blueprints, Bruegel, number 1, December.
  5. Anselin, Luc & Varga, Attila & Acs, Zoltan, 1997. "Local Geographic Spillovers between University Research and High Technology Innovations," Journal of Urban Economics, Elsevier, vol. 42(3), pages 422-448, November.
  6. Thursby, Jerry & Fuller, Anne W. & Thursby, Marie, 2009. "US faculty patenting: Inside and outside the university," Research Policy, Elsevier, Elsevier, vol. 38(1), pages 14-25, February.
  7. André Sapir & Philippe Aghion & Mathias Dewatripont & Caroline Hoxby & Andreu Mas-Colell, 2007. "Why reform Europe's universities," ULB Institutional Repository 2013/8100, ULB -- Universite Libre de Bruxelles.
  8. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, American Economic Association, vol. 79(5), pages 957-70, December.
  9. Manfred M. Fischer & Attila Varga, 2003. "Spatial knowledge spillovers and university research: Evidence from Austria," The Annals of Regional Science, Springer, Springer, vol. 37(2), pages 303-322, 05.
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Cited by:
  1. Reinhilde Veugelers (ed.), 2009. "The Evaluation of the Finnish National Innovation System - Full Report," Books, The Research Institute of the Finnish Economy, The Research Institute of the Finnish Economy, number 495.
  2. Ana Hidalgo & Amparo Castelló-Climent, 2010. "Quality and Quantity of Education in the Process of Development," 2010 Meeting Papers, Society for Economic Dynamics 238, Society for Economic Dynamics.
  3. Philip G. Altbach & Jamil Salmi, 2011. "The Road to Academic Excellence : The Making of World-Class Research Universities," World Bank Publications, The World Bank, number 2357, August.
  4. De Fraja, Gianni & Valbonesi, Paola, 2008. "The Design of the University System," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7038, C.E.P.R. Discussion Papers.
  5. Annamaria Conti & Patrick Gaulé, 2010. "Is the US Outperforming Europe in University Technology Licensing? A New Perspective on the European Paradox," DRUID Working Papers 10-04, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  6. Bolli, Thomas & Somogyi, Frank, 2011. "Do competitively acquired funds induce universities to increase productivity?," Research Policy, Elsevier, Elsevier, vol. 40(1), pages 136-147, February.
  7. Castelló-Climent, Amparo & Hidalgo-Cabrillana, Ana, 2012. "The role of educational quality and quantity in the process of economic development," Economics of Education Review, Elsevier, Elsevier, vol. 31(4), pages 391-409.
  8. Antonelli, Cristiano & Fassio, Claudio, 2012. "University-industry relations and the evolution of knowledge governance. the italian evidence in the first part of the xx century," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201212, University of Turin.
  9. Marisa Hidalgo Hidalgo & Guadalupe Valera Blanes, 2013. "University merging process," Working Papers. Serie AD, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2013-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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