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

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

Abstract

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.

Suggested Citation

  • Kim, Kwansoo & Barham, Bradford L. & Chavas, Jean-Paul & Foltz, Jeremy D., 2005. "Research and Development at U.S. Research Universities: An Analysis of Scope Economies," 2005 Annual meeting, July 24-27, Providence, RI 19147, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea05:19147
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    References listed on IDEAS

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    1. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-970, December.
    2. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
    3. Bronwyn H. Hall & Albert N. Link & John T. Scott, 2003. "Universities as Research Partners," The Review of Economics and Statistics, MIT Press, pages 485-491.
    4. 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 568-598, October.
    5. Jeremy Foltz & Bradford Barham & Jean-Paul Chavas & Kwansoo Kim, 2012. "Efficiency and technological change at US research universities," Journal of Productivity Analysis, Springer, vol. 37(2), pages 171-186, April.
    6. 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.
    7. Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
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    Cited by:

    1. Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2008. "Analyzing Cost-Efficient Production Behavior Under Economies of Scope: A Nonparametric Methodology," Operations Research, INFORMS, pages 204-221.

    More about this item

    Keywords

    Research and Development/Tech Change/Emerging Technologies;

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling

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