Incentives and invention in universities
We show that economic incentives affect the number and commercial value of inventions generated in universities. Using panel data for 102 U.S. universities during the period 1991-1999, we find that universities which give higher royalty shares to academic scientists generate more inventions and higher license income, controlling for other factors including university size, quality, research funding and technology licensing inputs. The incentive effects are much larger in private universities than in public ones. For private institutions there is a Laffer curve effect: raising the inventor’s royalty share increases the license income retained by the university. The incentive effect appears to work both through the level of effort and sorting of academic scientists.
Volume (Year): (2003)
Issue (Month): Nov ()
|Contact details of provider:|| Postal: |
Phone: (415) 974-2000
Fax: (415) 974-3333
Web page: http://www.frbsf.org/
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James Adams & Zvi Griliches, 1996.
"Measuring Science: An Exploration,"
NBER Working Papers
5478, National Bureau of Economic Research, Inc.
- James Adams & Zvi Griliches, 1996. "Measuring Science: An Exploration," Harvard Institute of Economic Research Working Papers 1749, Harvard - Institute of Economic Research.
- Blundell, Richard & Griffith, Rachel & van Reenen, John, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," Review of Economic Studies, Wiley Blackwell, vol. 66(3), pages 529-54, July.
- Lazear, Edward P, 1997.
"Incentives in Basic Research,"
Journal of Labor Economics,
University of Chicago Press, vol. 15(1), pages S167-97, January.
- Macho-Stadler, Ines & Perez-Castrillo, David & Veugelers, Reinhilde, 2007.
"Licensing of university inventions: The role of a technology transfer office,"
International Journal of Industrial Organization,
Elsevier, vol. 25(3), pages 483-510, June.
- Macho-Stadler Inés & Pérez-Castrillo David & Veugelers Reinhilde, 2005. "Licensing of University Inventions: The Role of a Technology Transfer Office," Working Papers 201022, Fundacion BBVA / BBVA Foundation.
- Philippe Aghion & Mathias Dewatripont & Jeremy C. Stein, 2005.
"Academic Freedom, Private-Sector Focus, and the Process of Innovation,"
NBER Working Papers
11542, National Bureau of Economic Research, Inc.
- Philippe Aghion & Mathias Dewatripont & Jeremy C. Stein, 2008. "Academic freedom, private-sector focus, and the process of innovation," RAND Journal of Economics, RAND Corporation, vol. 39(3), pages 617-635.
- Stein, Jeremy C. & Dewatripont, Mathias & Aghion, Philippe, 2008. "Academic Freedom, Private-Sector Focus, and the Process of Innovation," Scholarly Articles 3637074, Harvard University Department of Economics.
- Philippe Aghion & Mathias Dewatripont & Jeremy C. Stein, 2005. "Academic Freedom, Private-Sector Focus, and the Process of Innovation," Harvard Institute of Economic Research Working Papers 2089, Harvard - Institute of Economic Research.
- Edward P. Lazear, 1996.
"Performance Pay and Productivity,"
NBER Working Papers
5672, National Bureau of Economic Research, Inc.
- Marie Thursby & Richard Jensen, 2001. "Proofs and Prototypes for Sale: The Licensing of University Inventions," American Economic Review, American Economic Association, vol. 91(1), pages 240-259, March.
- Tuomala, Matti, 1990. "Optimal Income Tax and Redistribution," OUP Catalogue, Oxford University Press, number 9780198286059, March.
- Siegel, Donald S. & Waldman, David & Link, Albert, 2003. "Assessing the impact of organizational practices on the relative productivity of university technology transfer offices: an exploratory study," Research Policy, Elsevier, vol. 32(1), pages 27-48, January.
- Adams, James D, 1990. "Fundamental Stocks of Knowledge and Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 673-702, August.
- Belenzon, Sharon & Schankerman, Mark, 2007.
"Harnessing Success: Determinants of University Technology Licensing Performance,"
CEPR Discussion Papers
6120, C.E.P.R. Discussion Papers.
- Sharon Belenzon & Mark Schankerman, 2007. "Harnessing Success: Determinants of UniversityTechnology Licensing Performance," STICERD - Economics of Industry Papers 44, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Ajay Agrawal & Rebecca Henderson, 2002. "Putting Patents in Context: Exploring Knowledge Transfer from MIT," Management Science, INFORMS, vol. 48(1), pages 44-60, January.
- Coupe, Tom, 2003. " Science Is Golden: Academic R&D and University Patents," The Journal of Technology Transfer, Springer, vol. 28(1), pages 31-46, January.
- Adam B. Jaffe & Manuel Trajtenberg, 2005. "Patents, Citations, and Innovations: A Window on the Knowledge Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 026260065x, June.
- Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
- Audretsch, David B & Stephan, Paula E, 1996. "Company-Scientist Locational Links: The Case of Biotechnology," American Economic Review, American Economic Association, vol. 86(3), pages 641-52, June.
- James D. Adams, 2001.
"Comparative Localization of Academic and Industrial Spillovers,"
NBER Working Papers
8292, National Bureau of Economic Research, Inc.
- James D. Adams, 2002. "Comparative localization of academic and industrial spillovers," Journal of Economic Geography, Oxford University Press, vol. 2(3), pages 253-278, July.
- Mark Schankerman, 1998. "How Valuable is Patent Protection? Estimates by Technology Field," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 77-107, Spring.
- Jaffe, Adam B & Trajtenberg, Manuel & Henderson, Rebecca, 1993.
"Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations,"
The Quarterly Journal of Economics,
MIT Press, vol. 108(3), pages 577-98, August.
- Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
- Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
- Friedman, Joseph & Silberman, Jonathan, 2003. " University Technology Transfer: Do Incentives, Management, and Location Matter?," The Journal of Technology Transfer, Springer, vol. 28(1), pages 17-30, January.
- Thursby, Jerry G. & Kemp, Sukanya, 2002. "Growth and productive efficiency of university intellectual property licensing," Research Policy, Elsevier, vol. 31(1), pages 109-124, January.
- James D.ADAMS & Zvi GRILICHES, 1998.
"Research Productivity in a System of Universities,"
Annales d'Economie et de Statistique,
ENSAE, issue 49-50, pages 127-162.
- Thursby, Jerry G & Jensen, Richard & Thursby, Marie C, 2001. " Objectives, Characteristics and Outcomes of University Licensing: A Survey of Major U.S. Universities," The Journal of Technology Transfer, Springer, vol. 26(1-2), pages 59-72, January.
- Payne A. Abigail & Siow Aloysius, 2003. "Does Federal Research Funding Increase University Research Output?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-24, May.
- Bercovitz, Janet, et al, 2001. " Organizational Structure as a Determinant of Academic Patent and Licensing Behavior: An Exploratory Study of Duke, Johns Hopkins, and Pennsylvania State Universities," The Journal of Technology Transfer, Springer, vol. 26(1-2), pages 21-35, January.
- Bronwyn H. Hall & Adam Jaffe & Manuel Trajtenberg, 2005. "Market Value and Patent Citations," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 16-38, Spring.
- Dietmar Harhoff & Francis Narin & F. M. Scherer & Katrin Vopel, 1999. "Citation Frequency And The Value Of Patented Inventions," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 511-515, August.
- Levin, Sharon G & Stephan, Paula E, 1991. "Research Productivity over the Life Cycle: Evidence for Academic Scientists," American Economic Review, American Economic Association, vol. 81(1), pages 114-32, March.
- Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
When requesting a correction, please mention this item's handle: RePEc:fip:fedfpr:y:2003:i:nov:x:4. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diane Rosenberger)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.