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The Influence of Federal Laboratory R&D on Industrial Research

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Author Info
James D. Adams () (Department of Economics, Rensselaer Polytechnic Institute, Troy, NY 12180-3590, USA)
Eric P. Chiang (Florida Atlantic University)
Jeffrey L. Jensen (New York University, New York, NY, USA)

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Abstract

This paper studies the influence of R&D in the federal laboratory system, the world's largest, on firm research. Our results are based on a sample of 220 industrial research laboratories that work with a variety of federal laboratories and agencies and are owned by 115 firms in the chemicals, machinery, electrical equipment, and motor vehicles industries. Using an indicator of their importance to R&D managers, we find that Cooperative Research and Development Agreements or CRADAs dominate other channels of technology transfer from federal laboratories to firms. With a CRADA industry laboratories patent more, spend more on company-financed R&D, and devote more resources to their federal counterparts. Without this influence patenting stays about the same, and only federally funded R&D increases, mostly because of government support. The Stevenson-Wydler Act and amendments during the 1980s introduced CRADAs, which legally bind federal laboratories and firms together in joint research. In theory the agreements could capitalize on complementarities between public and private research. Our results support this perspective and suggest that CRADAs may be more beneficial to firms than other interactions with federal laboratories, precisely because of the mutual effort that they demand from both parties.

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Paper provided by Rensselaer Polytechnic Institute, Department of Economics in its series Rensselaer Working Papers in Economics with number 0301.

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Date of creation: Oct 2003
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Handle: RePEc:rpi:rpiwpe:0301

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  1. Spyros Arvanitis & Nora Sydow & Martin Woerter, 2005. "Is There Any Impact of University-Industry Knowledge Transfer on the Performance of Private Enterprises? – An Empirical Analysis Based¨on Swiss Firm Data," Working papers 05-117, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
  2. Bettina Becker & Stephen Hall, 2004. "Foreign direct investment in industrial R&D and exchange rate uncertainty in the UK," Money Macro and Finance (MMF) Research Group Conference 2003 4, Money Macro and Finance Research Group. [Downloadable!]
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  3. Cassiman, Bruno & Veugelers, Reinhilde, 2003. "R&D Cooperation Between Firms and Universities: Some Empirical Evidence from Belgian Manufacturing," CEPR Discussion Papers 3951, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Cassiman, Bruno & Veugelers, Rainhilde, 2003. "Which firms have cooperative R&D agreements with universities? Some empirical evidence from Belgian manufacturing," IESE Research Papers D/502, IESE Business School. [Downloadable!]
  5. Cathy Hoareau & Pierre Mohnen, 2002. "What Type Of Enterprise Forges Close Links With Universities And Government Labs? Evidence From CIS 2," CIRANO Working Papers 2002s-25, CIRANO. [Downloadable!]
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  6. James D. Adams & Eric P. Chiang & Katara Starkey, 2000. "Industry-University Cooperative Research Centers," NBER Working Papers 7843, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Cassiman, Bruno & Veugelers, Reinhilde & Zuniga, Pluvia, 2007. "Science linkages and innovation performance: An analysis on CIS-3 firms in Belgium," IESE Research Papers D/671, IESE Business School. [Downloadable!]
  8. Spyros Arvanitis & Ursina Kubli & Nora Sydow & Martin Woerter, 2005. "Knowledge and Technology Transfer (KTT) Activities Between Universities and Firms in Switzerland: The Main Facts : An Empirical Analysis Based on Firm-level Data," Working papers 05-115, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
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