IDEAS home Printed from https://ideas.repec.org/p/hhs/iuiwop/0909.html
   My bibliography  Save this paper

University Entrepreneurship and Professor Privilege

Author

Listed:
  • Färnstrand Damsgaard, Erika

    (Research Institute of Industrial Economics (IFN))

  • Thursby, Marie

    (Georgia Institute of Technology)

Abstract

This paper analyzes how institutional differences affect university entrepreneurship. We focus on ownership of faculty inventions, and compare two institutional regimes; the US and Sweden. In the US, the Bayh-Dole Act gives universities the right to own inventions from publicly funded research,whereas in Sweden, the professor privilege gives the university faculty this right. We develop a theoretical model and examine the effects of institutional differences on modes of commercialization; entrepreneurship or licenses to established firms, as well as on probabilities of successful commercialization. We find that the US system is less conducive to entrepreneurship than the Swedish system if established firms have some advantage over faculty startups, and that on average the probability of successful commercialization is somewhat higher in the US. We also use the model to perform four policy experiments as suggested by recent policy debates in both countries.

Suggested Citation

  • Färnstrand Damsgaard, Erika & Thursby, Marie, 2012. "University Entrepreneurship and Professor Privilege," Working Paper Series 909, Research Institute of Industrial Economics, revised 12 Apr 2012.
  • Handle: RePEc:hhs:iuiwop:0909
    as

    Download full text from publisher

    File URL: https://www.ifn.se/wfiles/wp/wp909.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. David C. Mowery & Bhaven N. Sampat, 2005. "The Bayh-Dole Act of 1980 and University-Industry Technology Transfer: A Model for Other OECD Governments?," Springer Books, in: Albert N. Link & F. M. Scherer (ed.), Essays in Honor of Edwin Mansfield, pages 233-245, Springer.
    2. Frank T. Rothaermel & Shanti D. Agung & Lin Jiang, 2007. "University entrepreneurship: a taxonomy of the literature," Industrial and Corporate Change, Oxford University Press, vol. 16(4), pages 691-791, August.
    3. Geuna, Aldo & Nesta, Lionel J.J., 2006. "University patenting and its effects on academic research: The emerging European evidence," Research Policy, Elsevier, vol. 35(6), pages 790-807, July.
    4. InÉs Macho‐Stadler & David Pérez‐Castrillo & Reinhilde Veugelers, 2008. "Designing Contracts for University Spin‐offs," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(1), pages 185-218, March.
    5. David C. Mowery & Bhaven N. Sampat, 2005. "The Bayh-Dole Act of 1980 and University--Industry Technology Transfer: A Model for Other OECD Governments?," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 115-127, January.
    6. Goldfarb, Brent & Henrekson, Magnus, 2001. "Bottom-Up vs. Top-Down Policies towards the Commercialization of University Intellectual Property," SSE/EFI Working Paper Series in Economics and Finance 463, Stockholm School of Economics, revised 26 May 2002.
    7. Pontus Braunerhjelm, 2007. "Academic entrepreneurship: Social norms, university culture and policies," Science and Public Policy, Oxford University Press, vol. 34(9), pages 619-631, November.
    8. Bart Verspagen, 2006. "University Research, Intellectual Property Rights And European Innovation Systems," Journal of Economic Surveys, Wiley Blackwell, vol. 20(4), pages 607-632, September.
    9. Dechenaux, Emmanuel & Thursby, Jerry & Thursby, Marie, 2011. "Inventor moral hazard in university licensing: The role of contracts," Research Policy, Elsevier, vol. 40(1), pages 94-104, February.
    10. 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.
    11. Robert Lowe, 2006. "Who Develops a University Invention? The Impact of Tacit Knowledge and Licensing Policies," The Journal of Technology Transfer, Springer, vol. 31(4), pages 415-429, July.
    12. Robert A. Lowe & Arvids A. Ziedonis, 2006. "Overoptimism and the Performance of Entrepreneurial Firms," Management Science, INFORMS, vol. 52(2), pages 173-186, February.
    13. Goldfarb, Brent & Henrekson, Magnus, 2003. "Bottom-up versus top-down policies towards the commercialization of university intellectual property," Research Policy, Elsevier, vol. 32(4), pages 639-658, April.
    14. Jerry Thursby & Marie Thursby, 2010. "University Licensing: Harnessing or Tarnishing Faculty Research?," Innovation Policy and the Economy, University of Chicago Press, vol. 10(1), pages 159-189.
    15. Pontus Braunerhjelm & Roger Svensson, 2010. "The inventor’s role: was Schumpeter right?," Journal of Evolutionary Economics, Springer, vol. 20(3), pages 413-444, June.
    16. Henrekson, Magnus & Rosenberg, Nathan, 2001. "Designing Efficient Institutions for Science-Based Entrepreneurship: Lessons from the US and Sweden," The Journal of Technology Transfer, Springer, vol. 26(3), pages 207-231, June.
    17. Di Gregorio, Dante & Shane, Scott, 2003. "Why do some universities generate more start-ups than others?," Research Policy, Elsevier, vol. 32(2), pages 209-227, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tischler, Joachim & Walter, Sascha, 2014. "Das Patentierverhalten akademischer Gründer nach Abschaffung des Hochschullehrerprivilegs," EconStor Preprints 96157, ZBW - Leibniz Information Centre for Economics.
    2. Brantnell, Anders & Baraldi, Enrico, 2022. "Understanding the roles and involvement of technology transfer offices in the commercialization of university research," Technovation, Elsevier, vol. 115(C).
    3. Catalina Martínez & Valerio Sterzi, 2021. "The impact of the abolishment of the professor’s privilege on European university-owned patents," Industry and Innovation, Taylor & Francis Journals, vol. 28(3), pages 247-282, March.
    4. Josh Lerner & Joacim Tåg, 2013. "Institutions and venture capital," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 153-182, February.
    5. Czarnitzki, Dirk & Doherr, Thorsten & Hussinger, Katrin & Schliessler, Paula & Toole, Andrew A., 2016. "Knowledge Creates Markets: The influence of entrepreneurial support and patent rights on academic entrepreneurship," European Economic Review, Elsevier, vol. 86(C), pages 131-146.
    6. Pontus Braunerhjelm & Magnus Henrekson, 2013. "Entrepreneurship, institutions, and economic dynamism: lessons from a comparison of the United States and Sweden," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 107-130, February.
    7. Olof Ejermo & John Källström, 2016. "What is the causal effect of R&D on patenting activity in a “professor’s privilege” country? Evidence from Sweden," Small Business Economics, Springer, vol. 47(3), pages 677-694, October.
    8. FUKUGAWA Nobuya, 2023. "Determinants of Commercialization Modes of Science: Evidence from panel data of university technology transfer in Japan," Discussion papers 23053, Research Institute of Economy, Trade and Industry (RIETI).
    9. Anna Kochenkova & Rosa Grimaldi & Federico Munari, 2016. "Public policy measures in support of knowledge transfer activities: a review of academic literature," The Journal of Technology Transfer, Springer, vol. 41(3), pages 407-429, June.
    10. Mario BENASSI & Matteo LANDONI & Francesco RENTOCCHINI, 2017. "University Management Practices and Academic Spin-offs," Departmental Working Papers 2017-11, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    11. Prokop, Daniel, 2021. "University entrepreneurial ecosystems and spinoff companies: Configurations, developments and outcomes," Technovation, Elsevier, vol. 107(C).
    12. Chiara Marzocchi & Fumi Kitagawa & Mabel Sánchez-Barrioluengo, 2019. "Evolving missions and university entrepreneurship: academic spin-offs and graduate start-ups in the entrepreneurial society," The Journal of Technology Transfer, Springer, vol. 44(1), pages 167-188, February.
    13. Riccardo Fini & Kun Fu & Marius Tuft Mathisen & Einar Rasmussen & Mike Wright, 2017. "Institutional determinants of university spin-off quantity and quality: a longitudinal, multilevel, cross-country study," Small Business Economics, Springer, vol. 48(2), pages 361-391, February.
    14. Belitski, Maksim & Aginskaja, Anna & Marozau, Radzivon, 2019. "Commercializing university research in transition economies: Technology transfer offices or direct industrial funding?," Research Policy, Elsevier, vol. 48(3), pages 601-615.
    15. Adi Sapir & Nahoko Kameo, 2019. "Rethinking loose coupling of rules and entrepreneurial practices among university scientists: a Japan–Israel comparison," The Journal of Technology Transfer, Springer, vol. 44(1), pages 49-72, February.
    16. Patrick S. W. Fong & Xuhua Chang & Qiang Chen, 2018. "Faculty patent assignment in the Chinese mainland: evidence from the top 35 patent application universities," The Journal of Technology Transfer, Springer, vol. 43(1), pages 69-95, February.
    17. Riviezzo, Angelo & Santos, Susana C. & Liñán, Francisco & Napolitano, Maria Rosaria & Fusco, Floriana, 2019. "European universities seeking entrepreneurial paths: the moderating effect of contextual variables on the entrepreneurial orientation-performance relationship," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 232-248.
    18. 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.
    19. Robert Huggins & Daniel Prokop & Piers Thompson, 2020. "Universities and open innovation: the determinants of network centrality," The Journal of Technology Transfer, Springer, vol. 45(3), pages 718-757, June.
    20. Halilem, Norrin & Amara, Nabil & Olmos-Peñuela, Julia & Mohiuddin, Muhammad, 2017. "“To Own, or not to Own?” A multilevel analysis of intellectual property right policies' on academic entrepreneurship," Research Policy, Elsevier, vol. 46(8), pages 1479-1489.
    21. Christos Kalantaridis & Merle Küttim, 2021. "University ownership and information about the entrepreneurial opportunity in commercialisation: a systematic review and realist synthesis of the literature," The Journal of Technology Transfer, Springer, vol. 46(5), pages 1487-1513, October.
    22. Maximilian Unger & Wolfgang Polt, 2017. "The Knowledge Triangle between Research, Education and Innovation – A Conceptual Discussion," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(2), pages 10-26.

    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. Einar Rasmussen & Paul Benneworth & Magnus Gulbrandsen, 2013. "Scoping paper: Developing University Innovation Capacity: How can innovation policy effectively harness universities’ capability to promote high-growth technology businesses?," Working Papers on Innovation Studies 20131007, Centre for Technology, Innovation and Culture, University of Oslo.
    2. Perkmann, Markus & Tartari, Valentina & McKelvey, Maureen & Autio, Erkko & Broström, Anders & D’Este, Pablo & Fini, Riccardo & Geuna, Aldo & Grimaldi, Rosa & Hughes, Alan & Krabel, Stefan & Kitson, Mi, 2013. "Academic engagement and commercialisation: A review of the literature on university–industry relations," Research Policy, Elsevier, vol. 42(2), pages 423-442.
    3. Kenney, Martin & Patton, Donald, 2009. "Reconsidering the Bayh-Dole Act and the Current University Invention Ownership Model," Research Policy, Elsevier, vol. 38(9), pages 1407-1422, November.
    4. Czarnitzki, Dirk & Doherr, Thorsten & Hussinger, Katrin & Schliessler, Paula & Toole, Andrew A., 2016. "Knowledge Creates Markets: The influence of entrepreneurial support and patent rights on academic entrepreneurship," European Economic Review, Elsevier, vol. 86(C), pages 131-146.
    5. Brantnell, Anders & Baraldi, Enrico, 2022. "Understanding the roles and involvement of technology transfer offices in the commercialization of university research," Technovation, Elsevier, vol. 115(C).
    6. Grimaldi, Rosa & Kenney, Martin & Siegel, Donald S. & Wright, Mike, 2011. "30 years after Bayh-Dole: Reassessing academic entrepreneurship," Research Policy, Elsevier, vol. 40(8), pages 1045-1057, October.
    7. Patrick S. W. Fong & Xuhua Chang & Qiang Chen, 2018. "Faculty patent assignment in the Chinese mainland: evidence from the top 35 patent application universities," The Journal of Technology Transfer, Springer, vol. 43(1), pages 69-95, February.
    8. Foray, Dominique & Lissoni, Francesco, 2010. "University Research and Public–Private Interaction," 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 275-314, Elsevier.
    9. Kenney, Martin & Patton, Donald, 2011. "Does inventor ownership encourage university research-derived entrepreneurship? A six university comparison," Research Policy, Elsevier, vol. 40(8), pages 1100-1112, October.
    10. Nicos Savva & Niyazi Taneri, 2015. "The Role of Equity, Royalty, and Fixed Fees in Technology Licensing to University Spin-Offs," Management Science, INFORMS, vol. 61(6), pages 1323-1343, June.
    11. Marcel Hülsbeck & Erik Lehmann & Alexander Starnecker, 2013. "Performance of technology transfer offices in Germany," The Journal of Technology Transfer, Springer, vol. 38(3), pages 199-215, June.
    12. Anna Kochenkova & Rosa Grimaldi & Federico Munari, 2016. "Public policy measures in support of knowledge transfer activities: a review of academic literature," The Journal of Technology Transfer, Springer, vol. 41(3), pages 407-429, June.
    13. Josh Lerner & Joacim Tåg, 2013. "Institutions and venture capital," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 153-182, February.
    14. Hernandez-Mondragon, Alma Cristal & Herrera-Estrella, Luis & Kuri-Harcuch, Walid, 2016. "Legislative environment and others factors that inhibit transfer of Mexican publicly funded research into commercial ventures," Technology in Society, Elsevier, vol. 46(C), pages 100-108.
    15. Christopher S. Hayter & Andrew J. Nelson & Stephanie Zayed & Alan C. O’Connor, 2018. "Conceptualizing academic entrepreneurship ecosystems: a review, analysis and extension of the literature," The Journal of Technology Transfer, Springer, vol. 43(4), pages 1039-1082, August.
    16. Einar Rasmussen & Paul Benneworth & Magnus Gulbrandsen, 2015. "How academic entrepreneurship meets the university," CHEPS Working Papers 201511, University of Twente, Center for Higher Education Policy Studies (CHEPS).
    17. Reinhilde Veugelers, 2014. "The Contribution of Academic Research to Innovation and Growth. WWWforEurope Working Paper No. 71," WIFO Studies, WIFO, number 50856, Juni.
    18. Rasmussen, Einar & Borch, Odd Jarl, 2010. "University capabilities in facilitating entrepreneurship: A longitudinal study of spin-off ventures at mid-range universities," Research Policy, Elsevier, vol. 39(5), pages 602-612, June.
    19. Andrea Bonaccorsi & Daniele Biancardi & Mabel Sanchez Barrioluengo & Federico Biagi, 2019. "Study on Higher Education Institutions and Local Development," JRC Research Reports JRC117272, Joint Research Centre (Seville site).
    20. Christian Sandström & Karl Wennberg & Martin W. Wallin & Yulia Zherlygina, 2018. "Public policy for academic entrepreneurship initiatives: a review and critical discussion," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1232-1256, October.

    More about this item

    Keywords

    Entrepreneurship; Professor privilege; Commercialization; Startup;
    All these keywords.

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    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:hhs:iuiwop:0909. See general information about how to correct material in RePEc.

    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: Elisabeth Gustafsson (email available below). General contact details of provider: https://edirc.repec.org/data/iuiiise.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.