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Federal Life Sciences Funding and University R&D

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Author Info
Margaret E. Blume-Kohout
Krishna B. Kumar
Neeraj Sood

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Abstract

This paper investigates the impact of federal extramural research funding on total expenditures for life sciences research and development (R&D) at U.S. universities, to determine whether federal R&D funding spurs funding from non-federal (private and state/local government) sources. We use a fixed effects instrumental variable approach to estimate the causal effect of federal funding on non-federal funding. Our results indicate that a dollar increase in federal funding leads to a $0.33 increase in non-federal funding at U.S. universities. Our evidence also suggests that successful applications for federal funding may be interpreted by non-federal funders as a signal of recipient quality: for example, non-PhD-granting universities, lower ranked universities and those that have historically received less funding experience greater increases in non-federal funding per federal dollar received.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15146.

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Date of creation: Jul 2009
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Handle: RePEc:nbr:nberwo:15146

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Find related papers by JEL classification:
H5 - Public Economics - - National Government Expenditures and Related Policies
I1 - Health, Education, and Welfare - - Health
I23 - Health, Education, and Welfare - - Education - - - Higher Education Research Institutions
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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This page was last updated on 2009-11-25.

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