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Research and Development at U.S. Research Universities: An Analysis of Scope Economies

  • Kim, Kwansoo
  • Barham, Bradford L.
  • Chavas, Jean-Paul
  • Foltz, Jeremy D.

This paper investigates the presence and sources of economies of scope in R&D production at U.S. research universities. The analysis evaluates the tradeoffs or synergies arising between traditional university research outputs (articles and doctorates) and a more recent and burgeoning output: academic patents. Using a shortage function, we propose a decomposition of economies of scope (decomposition which includes complementarity effects and scale effects). R&D input and output data from 92 public and private research universities are used to obtain non-parametric estimates of scope economies. The results show significant variations in economies of scope and sources by size and type of university.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19147.

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Date of creation: 2005
Date of revision:
Handle: RePEc:ags:aaea05:19147
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  1. Folts, Jeremy & Barham, Bradford L. & Chavas, Jean-Paul & Kim, Kwansoo, 2005. "Efficiency and Technological Change at U.S. Research Universities," Staff Paper Series 486, University of Wisconsin, Agricultural and Applied Economics.
  2. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-98, October.
  3. Bronwyn H. Hall & Albert N. Link & John T. Scott, 2000. "Universities as Research Partners," NBER Working Papers 7643, National Bureau of Economic Research, Inc.
  4. Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
  5. 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.
  6. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
  7. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June.
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