This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Incentives and Invention in Universities

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Saul Lach
Mark Schankerman

Additional information is available for the following registered author(s):

Abstract

We show that economic incentives affect the number and commercial value of inventions generated in universities. Using panel data for 102 U.S. universities during the period 1991-1999, we find that universities which give higher royalty shares to academic scientists generate more inventions and higher license income, controlling for other factors including university size, quality, research funding and technology licensing inputs. The incentive effects are much larger in private universities than in public ones. For private institutions there is a Laffer curve effect: raising the inventor's royalty share increases the license income retained by the university. The incentive effect appears to work both through the level of effort and sorting of academic scientists.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.nber.org/papers/w9727.pdf
File Format: application/pdf
File Function:
Download Restriction: Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9727.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length:
Date of creation: May 2003
Date of revision:
Handle: RePEc:nbr:nberwo:9727

Note: PR
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Phone: 617-868-3900
Email:
Web page: http://www.nber.org
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: ().

Related research
Keywords:

Other versions of this item:

Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights

This paper has been announced in the following NEP Reports:

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.:
  1. Thursby, Jerry G. & Kemp, Sukanya, 2002. "Growth and productive efficiency of university intellectual property licensing," Research Policy, Elsevier, vol. 31(1), pages 109-124, January. [Downloadable!] (restricted)
  2. Macho-Stadler, Ines & Perez-Castrillo, David & Veugelers, Reinhilde, 2007. "Licensing of university inventions: The role of a technology transfer office," International Journal of Industrial Organization, Elsevier, vol. 25(3), pages 483-510, June. [Downloadable!] (restricted)
  3. Lazear, Edward P, 1997. "Incentives in Basic Research," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages S167-97, January. [Downloadable!] (restricted)
    Other versions:
  4. James Adams & Zvi Griliches, 1996. "Measuring Science: An Exploration," Harvard Institute of Economic Research Working Papers 1749, Harvard - Institute of Economic Research.
    Other versions:
  5. 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)
  6. Coupe, Tom, 2003. " Science Is Golden: Academic R&D and University Patents," The Journal of Technology Transfer, Springer, vol. 28(1), pages 31-46, January. [Downloadable!] (restricted)
  7. Mark Schankerman, 1998. "How Valuable is Patent Protection? Estimates by Technology Field," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 77-107, Spring. [Downloadable!] (restricted)
  8. Friedman, Joseph & Silberman, Jonathan, 2003. " University Technology Transfer: Do Incentives, Management, and Location Matter?," The Journal of Technology Transfer, Springer, vol. 28(1), pages 17-30, January. [Downloadable!] (restricted)
  9. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December. [Downloadable!] (restricted)
    Other versions:
  10. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. Thursby, Jerry G & Jensen, Richard & Thursby, Marie C, 2001. " Objectives, Characteristics and Outcomes of University Licensing: A Survey of Major U.S. Universities," The Journal of Technology Transfer, Springer, vol. 26(1-2), pages 59-72, January. [Downloadable!] (restricted)
  12. James D. Adams, 2002. "Comparative localization of academic and industrial spillovers," Journal of Economic Geography, Oxford University Press, vol. 2(3), pages 253-278, July.
    Other versions:
  13. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December. [Downloadable!] (restricted)
  14. Adams, James D, 1990. "Fundamental Stocks of Knowledge and Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 673-702, August. [Downloadable!] (restricted)
  15. Dietmar Harhoff & Francis Narin & F. M. Scherer & Katrin Vopel, 1999. "Citation Frequency And The Value Of Patented Inventions," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 511-515, August. [Downloadable!] (restricted)
  16. James D. Adams & Zvi Griliches, 1996. "Research Productivity in a System of Universities," NBER Working Papers 5833, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. A. Payne & Aloysius Siow, 2003. "Does Federal Research Funding Increase University Research Output?," Advances in Economic Analysis & Policy, Berkeley Electronic Press, vol. 3(1), pages 1018-1018. [Downloadable!] (restricted)
  18. Bercovitz, Janet, et al, 2001. " Organizational Structure as a Determinant of Academic Patent and Licensing Behavior: An Exploratory Study of Duke, Johns Hopkins, and Pennsylvania State Universities," The Journal of Technology Transfer, Springer, vol. 26(1-2), pages 21-35, January. [Downloadable!] (restricted)
  19. Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March. [Downloadable!] (restricted)
  20. Audretsch, David B & Stephan, Paula E, 1996. "Company-Scientist Locational Links: The Case of Biotechnology," American Economic Review, American Economic Association, vol. 86(3), pages 641-52, June. [Downloadable!] (restricted)
  21. Siegel, Donald S. & Waldman, David & Link, Albert, 2003. "Assessing the impact of organizational practices on the relative productivity of university technology transfer offices: an exploratory study," Research Policy, Elsevier, vol. 32(1), pages 27-48, January. [Downloadable!] (restricted)
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. Albert Banal-Estañol & Inés Macho-Stadler, 2007. "Financial Incentives in Academia: Research versus Development," UFAE and IAE Working Papers 693.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
    Other versions:
  2. Jerry G. Thursby & Marie C. Thursby, 2003. "Are Faculty Critical? Their Role in University-Industry Licensing," Emory Economics 0320, Department of Economics, Emory University (Atlanta). [Downloadable!]
    Other versions:
  3. Belenzon, Sharon & Schankerman, Mark, 2007. "Harnessing Success: Determinants of University Technology Licensing Performance," CEPR Discussion Papers 6120, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Philippe Aghion & Mathias Dewatripont & Jeremy C. Stein, 2005. "Academic Freedom, Private-Sector Focus, and the Process of Innovation," NBER Working Papers 11542, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Thorn, Kristian & Soo, Maarja, 2006. "Latin American universities and the third mission : trends, challenges, and policy options," Policy Research Working Paper Series 4002, The World Bank. [Downloadable!]
  6. Annamaria Conti & Patrick Gaulé & Dominique Foray, 2007. "Academic licensing: a European study," CEMI Working Papers cemi-workingpaper-2007-00, Ecole Polytechnique Fédérale de Lausanne, Chaire en Economie et Management de l'Innovation. [Downloadable!]
  7. Lee Branstetter & Yoshiaki Ogura, 2005. "Is Academic Science Driving a Surge in Industrial Innovation? Evidence from Patent Citations," NBER Working Papers 11561, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Nicola Lacetera, 2003. "Incentives and spillovers in R&D activities: an agency-theoretic analysis of industry-university relations," Microeconomics 0312004, EconWPA. [Downloadable!]
  9. Sharon Belenzon & Mark Schankerman, 2007. "The Impact of Private Ownership, Incentives and Local Development Objectives on University Technology Transfer Performance," CEP Discussion Papers dp0779, Centre for Economic Performance, LSE. [Downloadable!]
  10. Carlos Rosell & Ajay Agrawal, 2006. "University Patenting: Estimating the Diminishing Breadth of Knowledge Diffusion and Consumption," NBER Working Papers 12640, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Lee Branstetter & Kwon Hyeog Ug, 2004. "The Restructuring Of Japanese Research And Development: The Increasing Impact Of Science On Japanese R&D," Discussion papers 04021, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
Statistics
Access and download statistics

Did you know? IDEAS also computes impact factors for journals and working paper series.

This page was last updated on 2008-8-19.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.