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Commercializing science: Is there a university 'brain drain' from academic entrepreneurship?

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  • Toole, A.A.
  • Czarnitzki, Dirk

Abstract

When academic researchers participate in commercialization using for-profit firms, there is a potentially costly trade-off—their time and effort are diverted away from academic knowledge production. This is a form of brain drain on the not-for-profit research sector that may reduce knowledge accumulation and adversely impact long-run economic growth. In this paper, we examine the economic significance of the brain drain phenomenon using scientist-level panel data. We identify life scientists who start or join for-profit firms using information from the Small Business Innovation Research program and analyze the research performance of these scientists relative to a control group of randomly selected research peers. Combining our statistical results with data on the number of university spin-offs in the United States from 1994 to 2004, we find the academic brain drain has a nontrivial impact on knowledge production in the not-for-profit research sector.

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Bibliographic Info

Paper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/264326.

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Date of creation: Sep 2010
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Publication status: Published in Management Science (2010-09) v.56, p.1599-1614
Handle: RePEc:ner:leuven:urn:hdl:123456789/264326

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Web page: http://www.kuleuven.be

Related research

Keywords: academic entrepreneurship; SBIR; NIH; Brain drain; research productivity; university mission;

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Cited by:
  1. Czarnitzki, Dirk & Rammer, Christian & Toole, Andrew A., 2013. "University spinoffs and the 'performance premium'," ZEW Discussion Papers 13-004, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Hottenrott, Hanna & Thorwarth, Susanne, 2010. "Industry funding of university research and scientific productivity," ZEW Discussion Papers 10-105, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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