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Commercial Development of University Research: The Role of Patents

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  • Bhole Bharat

    (Rochester Institute of Technology)

Abstract

This paper analyzes how university patents encourage university-firm collaboration for technology transfer. Focusing on factors other than competition, I find that the two may not collaborate either because the firm finds in-house development cheaper, or because of a disagreement about the potential product's profitability. In both cases, university patents can encourage collaboration by increasing the invention's diffusion time, and therefore play a role even in the absence of any competition. The model also suggests instances in which we can expect to see a greater impact of university patents on collaboration. Even when patents increase collaboration, they do not necessarily increase welfare. The findings are relevant for the debates on the Bayh-Dole Act, which gave universities a blanket right to patent and license inventions resulting from federally funded research.

Suggested Citation

  • Bhole Bharat, 2006. "Commercial Development of University Research: The Role of Patents," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-31, July.
    • Handle: RePEc:bpj:bejeap:v:contributions.5:y:2006:i:1:n:19
    DOI: 10.1515/1538-0645.1587
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    References listed on IDEAS

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    1. Maggie Cahalan & Wendy Mansfield & Natalie Justh, "undated". "The Status of Academic Libraries in the United States: Results from the 1996 Academic Library Survey with Historical Comparisons," Mathematica Policy Research Reports e75b610016454595b8935532e, Mathematica Policy Research.
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    Cited by:

    1. Bradley J. Rickard & Timothy J. Richards & Jubo Yan, 2016. "University licensing of patents for varietal innovations in agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 3-14, January.

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