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Restructuring Research: Communication Costs and the Democratization of University Innovation

Author

Listed:
  • Ajay Agrawal
  • Avi Goldfarb

Abstract

We report evidence that Bitnet adoption facilitated increased research collaboration between US universities. However, not all institutions benefited equally. Using panel data from seven top engineering journals, Bitnet connection records, and institution ranking data, we find that middle-tier universities were the primary beneficiaries; they benefited largely by increasing their collaboration with top-tier schools. Furthermore, we find that the magnitude of this effect is greatest for co-located pairs. Thus, the advent of Bitnet - and likely of subsequent networks - seems to have increased the role of middle-tier universities as producers of new knowledge in the national innovation system. (JEL D85, I23, O31, O33)

Suggested Citation

  • Ajay Agrawal & Avi Goldfarb, 2008. "Restructuring Research: Communication Costs and the Democratization of University Innovation," American Economic Review, American Economic Association, vol. 98(4), pages 1578-1590, September.
    • Handle: RePEc:aea:aecrev:v:98:y:2008:i:4:p:1578-90
    DOI: 10.1257/aer.98.4.1578
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    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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