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Commercial Incentives in Academia

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  • Banal-Estanol, A.
  • Macho-Stadler, I.

Abstract

This paper investigates the effects of monetary rewards from commercialisation on the pattern of research. We build a simple repeated model of a researcher capable to obtain innovative ideas. We analyse how academic and market incentives affect the allocation of the researcher’s time between research and development. We argue, however, that technology transfer objectives also affect the choice of research projects. Although commercialisation incentives reduce the time spent in research, they might also induce researchers to conduct research that is more basic in nature, contrary to what the “skewing problem” would presage. Monetary rewards induce a more intensive search for (ex-post) path-breaking innovations, which are more likely to be generated through (ex-ante) basic research programs. These results are shown to hold even if development delays publication.

Suggested Citation

  • Banal-Estanol, A. & Macho-Stadler, I., 2008. "Commercial Incentives in Academia," Working Papers 08/13, Department of Economics, City University London.
  • Handle: RePEc:cty:dpaper:08/13
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    References listed on IDEAS

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    6. Marie C. Thursby & Jerry Thursby & Swasti Gupta-Mukherjee, 2007. "Are There Real Effects of Licensing on Academic Research? A Life Cycle View," NBER Chapters,in: Academic Science and Entrepreneurship: Dual Engines of Growth National Bureau of Economic Research, Inc.
    7. Jerry G. Thursby & Marie C. Thursby, 2002. "Who Is Selling the Ivory Tower? Sources of Growth in University Licensing," Management Science, INFORMS, vol. 48(1), pages 90-104, January.
    8. Macho-Stadler, Ines & Martinez-Giralt, Xavier & David Perez-Castrillo, J., 1996. "The role of information in licensing contract design," Research Policy, Elsevier, vol. 25(1), pages 43-57, January.
    9. Paula Stephan & Shiferaw Gurmu & Albert Sumell & Grant Black, 2007. "Who'S Patenting In The University? Evidence From The Survey Of Doctorate Recipients," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(2), pages 71-99.
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    Citations

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    Cited by:

    1. António Freitas & Inés Macho-Stadler, 2014. "On the joint production of research and training," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 13(2), pages 71-94, August.
    2. Banal-Estanol, A. & Jofre-Bonet, M. & Meissner, C., 2008. "The Impact of Industry Collaboration on Academic Research Output: A Dynamic Panel Data Analysis," Working Papers 08/14, Department of Economics, City University London.
    3. Bolli, Thomas & Somogyi, Frank, 2011. "Do competitively acquired funds induce universities to increase productivity?," Research Policy, Elsevier, vol. 40(1), pages 136-147, February.
    4. Banal-Estañol, Albert & Jofre-Bonet, Mireia & Lawson, Cornelia, 2015. "The double-edged sword of industry collaboration: Evidence from engineering academics in the UK," Research Policy, Elsevier, vol. 44(6), pages 1160-1175.

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