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Do competitively acquired funds induce universities to increase productivity?

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  • Bolli, Thomas
  • Somogyi, Frank

Abstract

This paper analyzes the impact of private and public third-party funds on the productivity of Swiss university departments and public research institutions. Estimating a production function assuming that labor inputs produce master students and scientific publications reveals a positive effect of public third-party funding on productivity but not for private funds. However, once we include technology transfer as an additional output, the coefficient for public third-party funding turns insignificant while private funding becomes significant, indicating that the disciplining effect of public donors focuses on publications while private donors foster technology transfer. We employ three alternative approaches to tackle endogeneity and find qualitatively robust results.

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  • Bolli, Thomas & Somogyi, Frank, 2011. "Do competitively acquired funds induce universities to increase productivity?," Research Policy, Elsevier, vol. 40(1), pages 136-147, February.
  • Handle: RePEc:eee:respol:v:40:y:2011:i:1:p:136-147
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    Cited by:

    1. Avery Sen, 2017. "Island + Bridge: how transformative innovation is organized in the federal government," Science and Public Policy, Oxford University Press, vol. 44(5), pages 707-721.
    2. Alona Zharova & Janine Tellinger-Rice & Wolfgang Karl Härdle, 2018. "How to Measure a Performance of a Collaborative Research Centre," SFB 649 Discussion Papers SFB649DP2018-001, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    3. Claudia Fuentes & Gabriela Dutrénit, 2016. "Geographic proximity and university–industry interaction: the case of Mexico," The Journal of Technology Transfer, Springer, vol. 41(2), pages 329-348, April.
    4. Kai Rao & Andrea Piccaluga & Xian-fei Meng, 2013. "The impact of human resource factors on university patent technology transfer activities in China – based on the analysis of provincial panel data," Chapters, in: Tüzin Baycan (ed.),Knowledge Commercialization and Valorization in Regional Economic Development, chapter 12, pages 258-283, Edward Elgar Publishing.
    5. Melanie Wiener & Daniela Maresch & Robert J. Breitenecker, 2020. "The shift towards entrepreneurial universities and the relevance of third-party funding of business and economics units in Austria: a research note," Review of Managerial Science, Springer, vol. 14(2), pages 345-363, April.
    6. Lawson, Cornelia & Geuna, Aldo & Finardi, Ugo, 2019. "Nurturing knowledge? The impact of funding and family on scientific performance," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201902, University of Turin.
    7. Grimpe, Christoph, 2012. "Extramural research grants and scientists’ funding strategies: Beggars cannot be choosers?," Research Policy, Elsevier, vol. 41(8), pages 1448-1460.
    8. Domenico A. Maisano & Luca Mastrogiacomo & Fiorenzo Franceschini, 2020. "Short-term effects of non-competitive funding to single academic researchers," Scientometrics, Springer;Akadémiai Kiadó, vol. 123(3), pages 1261-1280, June.
    9. Alona Zharova & Janine Tellinger-Rice & Wolfgang Karl Härdle, 2018. "How to measure the performance of a Collaborative Research Center," Scientometrics, Springer;Akadémiai Kiadó, vol. 117(2), pages 1023-1040, November.
    10. Young-Hwan Lee & Hyung-Kee Kim, 2019. "Financial Support and University Performance in Korean Universities: A Panel Data Approach," Sustainability, MDPI, Open Access Journal, vol. 11(20), pages 1-18, October.
    11. Andrea Bonaccorsi & Luca Secondi, 2017. "The determinants of research performance in European universities: a large scale multilevel analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 112(3), pages 1147-1178, September.
    12. Tüzin Baycan (ed.), 2013. "Knowledge Commercialization and Valorization in Regional Economic Development," Books, Edward Elgar Publishing, number 14868.
    13. Mu-Hsuan Huang & Mei-Jhen Huang, 2018. "An analysis of global research funding from subject field and funding agencies perspectives in the G9 countries," Scientometrics, Springer;Akadémiai Kiadó, vol. 115(2), pages 833-847, May.
    14. Чернова Е. Г. & Ахобадзе Т. Д. & Малова А. С. & Салтан А. А., 2017. "Модели Финансирования Высшего Образования И Эффективность Деятельности Университетов Эмпирическое Исследование Европейского Опыта И Отечественная Практика," Вопросы образования // Educational Studies, НИУ ВШЭ, issue 3, pages 37-82.
    15. De Fuentes, Claudia & Dutrénit, Gabriela, 2012. "Best channels of academia–industry interaction for long-term benefit," Research Policy, Elsevier, vol. 41(9), pages 1666-1682.
    16. Erik E. Lehmann & Matthias Menter, 2016. "University–industry collaboration and regional wealth," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1284-1307, December.
    17. Alona Zharova & Wolfgang K. Härdle & Stefan Lessmann, 2017. "Is Scientific Performance a Function of Funds?," SFB 649 Discussion Papers SFB649DP2017-028, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    18. Wolszczak-Derlacz, Joanna, 2017. "An evaluation and explanation of (in)efficiency in higher education institutions in Europe and the U.S. with the application of two-stage semi-parametric DEA," Research Policy, Elsevier, vol. 46(9), pages 1595-1605.
    19. Bolli, Thomas & Olivares, Maria & Bonaccorsi, Andrea & Daraio, Cinzia & Aracil, Adela Garcia & Lepori, Benedetto, 2016. "The differential effects of competitive funding on the production frontier and the efficiency of universities," Economics of Education Review, Elsevier, vol. 52(C), pages 91-104.

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