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University Knowledge Transfer: Private Ownership, Incentives, and Local Development Objectives

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  • Sharon Belenzon
  • Mark Schankerman

Abstract

We study the impact of private ownership, incentive pay, and local development objectives on university licensing performance. We develop and test a simple contracting model of technology-licensing offices using new survey information together with panel data on U.S. universities for 1995-99. We find that private universities are much more likely to adopt incentive pay than public ones but that ownership does not affect licensing performance conditional on the use of incentive pay. Adopting incentive pay is associated with about 30-40 percent more income per license. Universities with strong local development objectives generate about 30 percent less income per license but are more likely to license to local (in-state) start-up companies. In addition, we show that government constraints on university licensing activity are costly in terms of forgone license income and the creation of start-up companies. These results are robust to controls for observed and unobserved heterogeneity. (c) 2009 by The University of Chicago. All rights reserved.

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  • Sharon Belenzon & Mark Schankerman, 2009. "University Knowledge Transfer: Private Ownership, Incentives, and Local Development Objectives," Journal of Law and Economics, University of Chicago Press, vol. 52(1), pages 111-144, February.
  • Handle: RePEc:ucp:jlawec:v:52:y:2009:i:1:p:111-144
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    Cited by:

    1. Berbegal-Mirabent, Jasmina & Sánchez García, José Luís & Ribeiro-Soriano, D. Enrique, 2015. "University–industry partnerships for the provision of R&D services," Journal of Business Research, Elsevier, vol. 68(7), pages 1407-1413.
    2. Nor'Aini YUSOF & Ismael Younis ABU-JARAD & Mohd Hasanal BADREE, 2012. "The Effectiveness Of Government Incentives To Facilitate An Innovative Housing Delivery System: The Perspective Of Housing Developers," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 7(1), pages 55-68, February.
    3. Drivas, Kyriakos & Economidou, Claire & Karamanis, Dimitris & Zank, Arleen, 2014. "Academic Patents and Technology Transfer," MPRA Paper 57476, University Library of Munich, Germany.
    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: Knowledge Commercialization and Valorization in Regional Economic Development, chapter 12, pages 258-283 Edward Elgar Publishing.
    5. Richard Jensen, 2012. "University Startups and Entrepreneurship: New Data, New Results," Working Papers 009, University of Notre Dame, Department of Economics, revised Jul 2012.
    6. Buenstorf, Guido & Schacht, Alexander, 2013. "We need to talk – or do we? Geographic distance and the commercialization of technologies from public research," Research Policy, Elsevier, vol. 42(2), pages 465-480.
    7. Wipo, 2011. "World Intellectual Property Report 2011- The Changing Face of Innovation," WIPO Economics & Statistics Series, World Intellectual Property Organization - Economics and Statistics Division, number 2011:944, October.
    8. Guido Buenstorf & Matthias Geissler, 2012. "Not invented here: technology licensing, knowledge transfer and innovation based on public research," Journal of Evolutionary Economics, Springer, vol. 22(3), pages 481-511, July.
    9. Tüzin Baycan (ed.), 2013. "Knowledge Commercialization and Valorization in Regional Economic Development," Books, Edward Elgar Publishing, number 14868.
    10. Pere Arqué-Castells & Rui M Cartaxo & Jose García-Quevedo & Manuel Mira Godinho, 2015. "How inventor royalty shares affect patenting and income in Portugal and Spain," Working Papers 2015/14, Institut d'Economia de Barcelona (IEB).
    11. 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.
    12. Anja Schoen & Bruno Pottelsberghe de la Potterie & Joachim Henkel, 2014. "Governance typology of universities’ technology transfer processes," The Journal of Technology Transfer, Springer, vol. 39(3), pages 435-453, June.
    13. Rossi, Federica & Fassio,Claudio & Geuna, Aldo, 2014. "The Role of Institutional Characteristics in Knowledge Transfer: A Comparative Analysis of Two Italian Universities," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201425, University of Turin.
    14. Blankenberg, Ann-Kathrin & Buenstorf, Guido, 2016. "Regional co-evolution of firm population, innovation and public research? Evidence from the West German laser industry," Research Policy, Elsevier, vol. 45(4), pages 857-868.
    15. repec:eee:respol:v:46:y:2017:i:5:p:881-897 is not listed on IDEAS
    16. Junghee Han & Jungho Kim, 2016. "Empirical Analysis Of Technology Transfer In Korean Universities," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(08), pages 1-26, December.
    17. Åstebro, Thomas & Bazzazian, Navid & Braguinsky, Serguey, 2012. "Startups by recent university graduates and their faculty: Implications for university entrepreneurship policy," Research Policy, Elsevier, vol. 41(4), pages 663-677.
    18. Caldera, Aida & Debande, Olivier, 2010. "Performance of Spanish universities in technology transfer: An empirical analysis," Research Policy, Elsevier, vol. 39(9), pages 1160-1173, November.
    19. Berbegal-Mirabent, Jasmina & Ribeiro-Soriano, Domingo Enrique & Sánchez García, José Luis, 2015. "Can a magic recipe foster university spin-off creation?," Journal of Business Research, Elsevier, vol. 68(11), pages 2272-2278.
    20. Mowery, David C. & Ziedonis, Arvids A., 2015. "Markets versus spillovers in outflows of university research," Research Policy, Elsevier, vol. 44(1), pages 50-66.
    21. Arqué-Castells, Pere & Cartaxo, Rui M. & García-Quevedo, Jose & Godinho, Manuel Mira, 2016. "Royalty sharing, effort and invention in universities: Evidence from Portugal and Spain," Research Policy, Elsevier, vol. 45(9), pages 1858-1872.
    22. Navid Bazzazian & Thomas Astebro, 2011. "Universities, Entrepreneurship and Local Economic Development," ERSA conference papers ersa10p822, European Regional Science Association.
    23. Naomi Hausman, 2012. "University Innovation, Local Economic Growth, and Entrepreneurship," Working Papers 12-10, Center for Economic Studies, U.S. Census Bureau.
    24. Alina Dima & Simona Vasilache, 2015. "Social Network Analysis for Tacit Knowledge Management in Universities," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 856-864, December.
    25. Federica Rossi, 2014. "The efficiency of universities’ knowledge transfer activities: A multi-output approach beyond patenting and licensing," Working Papers 16, Birkbeck Centre for Innovation Management Research, revised Feb 2014.

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