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University entrepreneurship and professor privilege

Author

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  • Erika Färnstrand Damsgaard
  • Marie C. Thursby

Abstract

This article analyzes how institutional differences affect university entrepreneurship. We focus on ownership of faculty inventions, and compare two institutional regimes, the United States and Sweden. In the United States, the Bayh--Dole Act gives universities the right to own inventions from publicly funded research, whereas in Sweden, the professor privilege gives the university faculty this right. We develop a theoretical model and examine the effects of institutional differences on modes of commercialization, entrepreneurship or licenses to established firms, as well as on probabilities of successful commercialization. We find that the US system is less conducive to entrepreneurship than the Swedish system if established firms have some advantage over faculty startups, and that, on average, the probability of successful commercialization is somewhat higher in the United States. We also use the model to perform four policy experiments, as suggested by recent policy debates in both countries. Copyright 2013 The Author 2013. Published by Oxford University Press on behalf of Associazione ICC., Oxford University Press.

Suggested Citation

  • Erika Färnstrand Damsgaard & Marie C. Thursby, 2013. "University entrepreneurship and professor privilege," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 183-218, February.
  • Handle: RePEc:oup:indcch:v:22:y:2013:i:1:p:183-218
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    File URL: http://hdl.handle.net/10.1093/icc/dts047
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    References listed on IDEAS

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    1. Dechenaux, Emmanuel & Thursby, Jerry & Thursby, Marie, 2011. "Inventor moral hazard in university licensing: The role of contracts," Research Policy, Elsevier, vol. 40(1), pages 94-104, February.
    2. Henrekson, Magnus & Rosenberg, Nathan, 2001. "Designing Efficient Institutions for Science-Based Entrepreneurship: Lessons from the US and Sweden," The Journal of Technology Transfer, Springer, vol. 26(3), pages 207-231, June.
    3. Bart Verspagen, 2006. "University Research, Intellectual Property Rights And European Innovation Systems," Journal of Economic Surveys, Wiley Blackwell, vol. 20(4), pages 607-632, September.
    4. Jerry Thursby & Marie Thursby, 2010. "University Licensing: Harnessing or Tarnishing Faculty Research?," NBER Chapters,in: Innovation Policy and the Economy, Volume 10, pages 159-189 National Bureau of Economic Research, Inc.
    5. InÉs Macho-Stadler & David Pérez-Castrillo & Reinhilde Veugelers, 2008. "Designing Contracts for University Spin-offs," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(1), pages 185-218, March.
    6. Robert Lowe, 2006. "Who Develops a University Invention? The Impact of Tacit Knowledge and Licensing Policies," The Journal of Technology Transfer, Springer, vol. 31(4), pages 415-429, July.
    7. Robert A. Lowe & Arvids A. Ziedonis, 2006. "Overoptimism and the Performance of Entrepreneurial Firms," Management Science, INFORMS, vol. 52(2), pages 173-186, February.
    8. Goldfarb, Brent & Henrekson, Magnus, 2001. "Bottom-Up vs. Top-Down Policies towards the Commercialization of University Intellectual Property," SSE/EFI Working Paper Series in Economics and Finance 463, Stockholm School of Economics, revised 26 May 2002.
    9. Goldfarb, Brent & Henrekson, Magnus, 2003. "Bottom-up versus top-down policies towards the commercialization of university intellectual property," Research Policy, Elsevier, vol. 32(4), pages 639-658, April.
    10. Pontus Braunerhjelm & Roger Svensson, 2010. "The inventor’s role: was Schumpeter right?," Journal of Evolutionary Economics, Springer, vol. 20(3), pages 413-444, June.
    11. Frank T. Rothaermel & Shanti D. Agung & Lin Jiang, 2007. "University entrepreneurship: a taxonomy of the literature," Industrial and Corporate Change, Oxford University Press, vol. 16(4), pages 691-791, August.
    12. 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.
    13. Geuna, Aldo & Nesta, Lionel J.J., 2006. "University patenting and its effects on academic research: The emerging European evidence," Research Policy, Elsevier, vol. 35(6), pages 790-807, July.
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    Citations

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    Cited by:

    1. Tischler, Joachim & Walter, Sascha, 2014. "Das Patentierverhalten akademischer Gründer nach Abschaffung des Hochschullehrerprivilegs," EconStor Preprints 96157, ZBW - Leibniz Information Centre for Economics.
    2. Czarnitzki, Dirk & Doherr, Thorsten & Hussinger, Katrin & Schliessler, Paula & Toole, Andrew A., 2016. "Knowledge Creates Markets: The influence of entrepreneurial support and patent rights on academic entrepreneurship," European Economic Review, Elsevier, vol. 86(C), pages 131-146.
    3. Annelore Huyghe & Mirjam Knockaert & Evila Piva & Mike Wright, 2016. "Are researchers deliberately bypassing the technology transfer office? An analysis of TTO awareness," Small Business Economics, Springer, vol. 47(3), pages 589-607, October.
    4. repec:hig:fsight:v:11:y:2017:i:2:p:10-26 is not listed on IDEAS
    5. Riccardo Fini & Kun Fu & Marius Tuft Mathisen & Einar Rasmussen & Mike Wright, 2017. "Institutional determinants of university spin-off quantity and quality: a longitudinal, multilevel, cross-country study," Small Business Economics, Springer, vol. 48(2), pages 361-391, February.
    6. repec:eee:respol:v:48:y:2019:i:3:p:601-615 is not listed on IDEAS
    7. Mario BENASSI & Matteo LANDONI & Francesco RENTOCCHINI, 2017. "University Management Practices and Academic Spin-offs," Departmental Working Papers 2017-11, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    8. repec:kap:jtecht:v:43:y:2018:i:1:d:10.1007_s10961-015-9434-7 is not listed on IDEAS
    9. repec:kap:jtecht:v:44:y:2019:i:1:d:10.1007_s10961-017-9596-6 is not listed on IDEAS
    10. repec:eee:tefoso:v:141:y:2019:i:c:p:232-248 is not listed on IDEAS
    11. Olof Ejermo & John Källström, 2016. "What is the causal effect of R&D on patenting activity in a “professor’s privilege” country? Evidence from Sweden," Small Business Economics, Springer, vol. 47(3), pages 677-694, October.
    12. repec:eee:respol:v:46:y:2017:i:8:p:1479-1489 is not listed on IDEAS
    13. repec:kap:jtecht:v:44:y:2019:i:1:d:10.1007_s10961-017-9619-3 is not listed on IDEAS
    14. Anna Kochenkova & Rosa Grimaldi & Federico Munari, 2016. "Public policy measures in support of knowledge transfer activities: a review of academic literature," The Journal of Technology Transfer, Springer, vol. 41(3), pages 407-429, June.

    More about this item

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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