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Analysis and decomposition of scope economies: R&D at US research universities

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  • Jean-Paul Chavas
  • Bradford Barham
  • Jeremy Foltz
  • Kwansoo Kim

Abstract

This article uses a multi output production function to analyse economies of scope between patents and R&D in US research universities. It evaluates the tradeoffs and/or synergies that arise between traditional university research outputs (articles and doctorates) and academic patents. It also investigates the sources of economies of scope and the relative roles of complementarity, scale and convexity. Nonparametric Data Envelopment Analysis (DEA) estimates of scope economies using R&D input and output data from 92 research universities show significant economies of scope between articles and patents but only modest complementarities except in a few cases. The analysis shows how scale effects (for small universities) and convexity effects can contribute to economies of scope.

Suggested Citation

  • Jean-Paul Chavas & Bradford Barham & Jeremy Foltz & Kwansoo Kim, 2012. "Analysis and decomposition of scope economies: R&D at US research universities," Applied Economics, Taylor & Francis Journals, vol. 44(11), pages 1387-1404, April.
    • Handle: RePEc:taf:applec:44:y:2012:i:11:p:1387-1404
    DOI: 10.1080/00036846.2010.541151
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    References listed on IDEAS

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    4. 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.
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    2. Mario Cervantes, 2017. "Higher Education Institutions in the Knowledge Triangle," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(2), pages 27-42.
    3. Eder, Andreas, 2017. "Cost efficiency and economies of diversification of biogas-fuelled cogeneration plants in Austria: a nonparametric approach," MPRA Paper 80369, University Library of Munich, Germany.
    4. Moncayo–Martínez, Luis A. & Ramírez–Nafarrate, Adrián & Hernández–Balderrama, María Guadalupe, 2020. "Evaluation of public HEI on teaching, research, and knowledge dissemination by Data Envelopment Analysis," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).
    5. Liang-Cheng Zhang & Andrew C. Worthington, 2018. "Explaining Estimated Economies of Scale and Scope in Higher Education: A Meta-Regression Analysis," Research in Higher Education, Springer;Association for Institutional Research, vol. 59(2), pages 156-173, March.
    6. Ohe, Yasuo & Kurihara, Shinichi, 2013. "Evaluating the complementary relationship between local brand farm products and rural tourism: Evidence from Japan," Tourism Management, Elsevier, vol. 35(C), pages 278-283.
    7. Brown, Jason P. & Goetz, Stephan J. & Fleming, David A., 2012. "Multifunctional Agriculture and Farm Viability in the United States," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 126929, Agricultural and Applied Economics Association.

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