IDEAS home Printed from https://ideas.repec.org/p/aal/abbswp/11-03.html
   My bibliography  Save this paper

Not All Scientists pay to be Scientists:

Author

Listed:
  • Henry Sauermann
  • Michael Roach

Abstract

A growing body of research on firms’ “open science” strategies rests on the notion that scientists have a strong preference for publishing and that firms are able to extract a wage discount if they allow scientists to publish. Drawing on a survey of 1,400 life scientists about to enter the job market, we suggest an alternative view. First, we show significant heterogeneity in the price scientists assign to the opportunity to publish in firms, and those scientists who seek industry careers have particularly low preferences for publishing. Thus, many job applicants are not willing to accept lower wages for jobs that let them publish and firms pursuing open science strategies may instead have to pay publishing incentives that fulfill both sorting and incentive functions. Second, we show that scientists with higher ability have a higher price of publishing but also expect to be paid higher wages regardless of the publishing regime. Thus, they are not cheaper to hire than other scientists if allowed to publish, but they are more expensive if publishing is restricted. Finally, we show that scientists publish not simply for “peer recognition” but also for more specific reasons, including the opportunity to advance science or to move to higher-paying jobs. Different reasons predict what price a scientist assigns to the opportunity to publish and may also have very different implications for the sustainability of competitive advantages derived from open science strategies.

Suggested Citation

  • Henry Sauermann & Michael Roach, 2011. "Not All Scientists pay to be Scientists:," DRUID Working Papers 11-03, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  • Handle: RePEc:aal:abbswp:11-03
    as

    Download full text from publisher

    File URL: https://wp.druid.dk/wp/20110003.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hwang, Hae-shin & Reed, W Robert & Hubbard, Carlton, 1992. "Compensating Wage Differentials and Unobserved Productivity," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 835-858, August.
    2. Lim, Kwanghui, 2004. "The relationship between research and innovation in the semiconductor and pharmaceutical industries (1981-1997)," Research Policy, Elsevier, vol. 33(2), pages 287-321, March.
    3. Julien Pénin, 2007. "Open Knowledge Disclosure: An Overview Of The Evidence And Economic Motivations," Journal of Economic Surveys, Wiley Blackwell, vol. 21(2), pages 326-347, April.
    4. Hicks, Diana, 1995. "Published Papers, Tacit Competencies and Corporate Management of the Public/Private Character of Knowledge," Industrial and Corporate Change, Oxford University Press, vol. 4(2), pages 401-424.
    5. 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, September.
    6. Cockburn, Iain M & Henderson, Rebecca M, 1998. "Absorptive Capacity, Coauthoring Behavior, and the Organization of Research in Drug Discovery," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 157-182, June.
    7. Joshua S. Gans & Scott Stern, 2010. "Is there a market for ideas?," Industrial and Corporate Change, Oxford University Press, vol. 19(3), pages 805-837, June.
    8. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December.
    9. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    10. Simeth, Markus & Raffo, Julio D., 2013. "What makes companies pursue an Open Science strategy?," Research Policy, Elsevier, vol. 42(9), pages 1531-1543.
    11. Robert Gibbons & Lawrence Katz, 1992. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," Review of Economic Studies, Oxford University Press, vol. 59(3), pages 515-535.
    12. Sorenson, Olav & Fleming, Lee, 2004. "Science and the diffusion of knowledge," Research Policy, Elsevier, vol. 33(10), pages 1615-1634, December.
    13. Nicola Lacetera, 2009. "Different Missions and Commitment Power in R&D Organizations: Theory and Evidence on Industry-University Alliances," Organization Science, INFORMS, vol. 20(3), pages 565-582, June.
    14. Waverly W. Ding & Sharon G. Levin & Paula E. Stephan & Anne E. Winkler, 2010. "The Impact of Information Technology on Academic Scientists' Productivity and Collaboration Patterns," Management Science, INFORMS, vol. 56(9), pages 1439-1461, September.
    15. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    16. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    17. Nicola Lacetera & Lorenzo Zirulia, 2011. "The Economics of Scientific Misconduct," Journal of Law, Economics, and Organization, Oxford University Press, vol. 27(3), pages 568-603.
    18. 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 114-132, March.
    19. Scott Stern, 2004. "Do Scientists Pay to Be Scientists?," Management Science, INFORMS, vol. 50(6), pages 835-853, June.
    20. Tuckman, Howard P & Leahey, Jack, 1975. "What Is an Article Worth?," Journal of Political Economy, University of Chicago Press, vol. 83(5), pages 951-967, October.
    21. Dan Lovallo & Colin Camerer, 1999. "Overconfidence and Excess Entry: An Experimental Approach," American Economic Review, American Economic Association, vol. 89(1), pages 306-318, March.
    22. Kerwin Kofi Charles & Jonathan Guryan, 2008. "Prejudice and Wages: An Empirical Assessment of Becker's The Economics of Discrimination," Journal of Political Economy, University of Chicago Press, vol. 116(5), pages 773-809, October.
    23. Partha, Dasgupta & David, Paul A., 1994. "Toward a new economics of science," Research Policy, Elsevier, vol. 23(5), pages 487-521, September.
    24. Goddeeris, John H, 1988. "Compensating Differentials and Self-selection: An Application to Lawyers," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 411-428, April.
    25. Hwang, Hae-shin & Mortensen, Dale T & Reed, W Robert, 1998. "Hedonic Wages and Labor Market Search," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 815-847, October.
    26. Richard R. Nelson, 2006. "The Market Economy and the Scientific Commons," Chapters, in: Birgitte Andersen (ed.), Intellectual Property Rights, chapter 1, Edward Elgar Publishing.
    27. Mark R. Killingsworth, 1987. "Heterogeneous Preferences, Compensating Wage Differentials, and Comparable Worth," The Quarterly Journal of Economics, Oxford University Press, vol. 102(4), pages 727-742.
    28. Charles Brown, 1980. "Equalizing Differences in the Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 94(1), pages 113-134.
    29. repec:wip:wpaper:6 is not listed on IDEAS
    30. Rajshree Agarwal & Atsushi Ohyama, 2013. "Industry or Academia, Basic or Applied? Career Choices and Earnings Trajectories of Scientists," Management Science, INFORMS, vol. 59(4), pages 950-970, April.
    31. Azoulay, Pierre & Ding, Waverly & Stuart, Toby, 2007. "The determinants of faculty patenting behavior: Demographics or opportunities?," Journal of Economic Behavior & Organization, Elsevier, vol. 63(4), pages 599-623, August.
    32. Pierre Azoulay & Waverly Ding & Toby Stuart, 2007. "The Determinants of Faculty Patenting Behavior: Demographics or Opportunities?," NBER Chapters, in: Academic Science and Entrepreneurship: Dual Engines of Growth, National Bureau of Economic Research, Inc.
    33. Daniel W. Elfenbein & Barton H. Hamilton & Todd R. Zenger, 2010. "The Small Firm Effect and the Entrepreneurial Spawning of Scientists and Engineers," Management Science, INFORMS, vol. 56(4), pages 659-681, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sauermann, Henry & Roach, Michael, 2014. "Not all scientists pay to be scientists: PhDs’ preferences for publishing in industrial employment," Research Policy, Elsevier, vol. 43(1), pages 32-47.
    2. Simeth, Markus & Raffo, Julio D., 2013. "What makes companies pursue an Open Science strategy?," Research Policy, Elsevier, vol. 42(9), pages 1531-1543.
    3. Henry Sauermann & Paula Stephan, 2013. "Conflicting Logics? A Multidimensional View of Industrial and Academic Science," Organization Science, INFORMS, vol. 24(3), pages 889-909, June.
    4. Simeth, Markus & Lhuillery, Stephane, 2015. "How do firms develop capabilities for scientific disclosure?," Research Policy, Elsevier, vol. 44(7), pages 1283-1295.
    5. Denisa Mindruta, 2013. "Value creation in university-firm research collaborations: A matching approach," Strategic Management Journal, Wiley Blackwell, vol. 34(6), pages 644-665, June.
    6. repec:wip:wpaper:6 is not listed on IDEAS
    7. Stephan, Paula E., 2010. "The Economics of Science," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 217-273, Elsevier.
    8. Scott Stern, 2004. "Do Scientists Pay to Be Scientists?," Management Science, INFORMS, vol. 50(6), pages 835-853, June.
    9. Roach, Michael & Sauermann, Henry, 2010. "A taste for science? PhD scientists' academic orientation and self-selection into research careers in industry," Research Policy, Elsevier, vol. 39(3), pages 422-434, April.
    10. Lee, Kyootai & Jung, Hyun Ju, 2021. "Does TTO capability matter in commercializing university technology? Evidence from longitudinal data in South Korea," Research Policy, Elsevier, vol. 50(1).
    11. Salandra, Rossella, 2018. "Knowledge dissemination in clinical trials: Exploring influences of institutional support and type of innovation on selective reporting," Research Policy, Elsevier, vol. 47(7), pages 1215-1228.
    12. Subramanian, Annapoornima M. & Lim, Kwanghui & Soh, Pek-Hooi, 2013. "When birds of a feather don’t flock together: Different scientists and the roles they play in biotech R&D alliances," Research Policy, Elsevier, vol. 42(3), pages 595-612.
    13. Roberto Camerani & Daniele Rotolo & Nicola Grassano, 2018. "Do Firms Publish? A Multi-Sectoral Analysis," SPRU Working Paper Series 2018-21, SPRU - Science Policy Research Unit, University of Sussex Business School.
    14. Scott Stern, 1999. "Do Scientists Pay to Be Scientists?," NBER Working Papers 7410, National Bureau of Economic Research, Inc.
    15. Daniel Chudnovsky & Andrés López & Martín Rossi & Diego Ubfal, 2006. "Evaluating a Program of Public Funding of Scientific Activity. A Case Study of FONCYT in Argentina," OVE Working Papers 1206, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    16. Bhattacharya, Jay & Packalen, Mikko, 2011. "Opportunities and benefits as determinants of the direction of scientific research," Journal of Health Economics, Elsevier, vol. 30(4), pages 603-615, July.
    17. Henry Sauermann, 2017. "Fire in the Belly? Employee Motives and Innovative Performance in Startups versus Established Firms," NBER Working Papers 23099, National Bureau of Economic Research, Inc.
    18. Mudambi, Ram & Swift, Tim, 2009. "Professional guilds, tension and knowledge management," Research Policy, Elsevier, vol. 38(5), pages 736-745, June.
    19. Murray, Fiona & Stern, Scott, 2007. "Do formal intellectual property rights hinder the free flow of scientific knowledge?: An empirical test of the anti-commons hypothesis," Journal of Economic Behavior & Organization, Elsevier, vol. 63(4), pages 648-687, August.
    20. Liu, Christopher C. & Stuart, Toby, 2014. "Positions and rewards: The allocation of resources within a science-based entrepreneurial firm," Research Policy, Elsevier, vol. 43(7), pages 1134-1143.
    21. Nicola Lacetera, 2003. "Incentives and spillovers in R&D activities: an agency-theoretic analysis of industry-university relations," Microeconomics 0312004, University Library of Munich, Germany.

    More about this item

    Keywords

    Scientists; publishing; competitive advantage;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aal:abbswp:11-03. 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: . General contact details of provider: https://www.druid.dk/ .

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Keld Laursen (email available below). General contact details of provider: https://www.druid.dk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.