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U.S. Universities' Net Returns from Patenting and Licensing: A Quantile Regression Analysis

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Abstract

In line with the rights and incentives provided by the Bayh-Dole Act of 1980, U.S. universities have increased their involvement in patenting and licensing activities through their own technology transfer offices. Only a few U.S. universities are obtaining large returns, however, whereas others are continuing with these activities despite negligible or negative returns. We assess the U.S. universities' potential to generate returns from licensing activities by modeling and estimating quantiles of the distribution of net licensing returns conditional on some of their structural characteristics. We find limited prospects for public universities without a medical school everywhere in their distribution. Other groups of universities (private, and public with a medical school) can expect significant but still fairly modest returns only beyond the 0.9th quantile. These findings call into question the appropriateness of the revenue-generating motive for the aggressive rate of patenting and licensing by U.S. universities.

Suggested Citation

  • Harun Bulut & GianCarlo Moschini, 2006. "U.S. Universities' Net Returns from Patenting and Licensing: A Quantile Regression Analysis," Center for Agricultural and Rural Development (CARD) Publications 06-wp432, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:06-wp432
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    Cited by:

    1. Gallardo, R. Karina & McCluskey, Jill J. & Rickard, Bradley J. & Akhundjanov, Sherzod B., 2016. "Assessing Innovator and Grower Profit Potential under Different New Plant Variety Commercialization Strategies," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235940, Agricultural and Applied Economics Association.
    2. Bartelsman, Eric & Dobbelaere, Sabien & Peters, Bettina, 2013. "Allocation of Human Capital and Innovation at the Frontier: Firm-Level Evidence on Germany and the Netherlands," IZA Discussion Papers 7540, Institute for the Study of Labor (IZA).
    3. Mata, José & Woerter, Martin, 2013. "Risky innovation: The impact of internal and external R&D strategies upon the distribution of returns," Research Policy, Elsevier, vol. 42(2), pages 495-501.
    4. Birgitte Andersen & Federica Rossi, 2011. "Intellectual property governance and knowledge creation in UK universities," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(8), pages 701-725, September.
    5. Katerina Sideri & Andreas Panagopoulos, 2016. "Setting up a Technology Commercialization Office at a Non-Entrepreneurial University: An Insider's Look at Practices and Culture," Working Papers 1609, University of Crete, Department of Economics.
    6. Westerberg, Hans Seerar, 2014. "The Return to R&D and Seller-buyer Interactions: A Quantile Regression Approach," Ratio Working Papers 231, The Ratio Institute.
    7. Bradley J. Rickard & Timothy J. Richards & Jubo Yan, 2016. "University licensing of patents for varietal innovations in agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 3-14, January.
    8. Birgitte Andersen & Federica Rossi, 2012. "Inefficiencies in markets for intellectual property rights: experiences of academic and public research institutions," Prometheus, Taylor & Francis Journals, vol. 30(1), pages 5-27, March.
    9. Lee, Yoo Hwan & Graff, Gregory D., 2016. "Academic Knowledge Spillovers and the Role of Geographic Proximity in Regional Agriculture-related Sectors: The impact of agricultural research at Colorado State University on the Colorado economy, an," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235717, Agricultural and Applied Economics Association.
    10. Richards, Timothy J. & Rickard, Bradley J., 2013. "Patents as Options: Path-Dependency and Patent Value," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149725, Agricultural and Applied Economics Association.
    11. Isabel Maria Bodas Freitas & Aldo Geuna & Federica Rossi, 2011. "University–Industry Interactions: The Unresolved Puzzle," Chapters,in: Handbook on the Economic Complexity of Technological Change, chapter 11 Edward Elgar Publishing.
    12. Yuandi Wang & Ruifeng Hu & Weiping Li & Xiongfeng Pan, 2016. "Does teaching benefit from university–industry collaboration? Investigating the role of academic commercialization and engagement," Scientometrics, Springer;Akadémiai Kiadó, vol. 106(3), pages 1037-1055, March.
    13. Rickard, Bradley J. & Schmit, Todd M. & Gomez, Miguel I. & Lu, Hao, 2011. "Does the Name Matter? Developing Brands for Patented Fruit Varieties," Working Papers 126603, Cornell University, Department of Applied Economics and Management.
    14. Fang, Di & Richards, Timothy & Rickard, Bradley, 2015. "Optimal Licensing of Agricultural Patents: Fees Versus Royalties," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(1), January.
    15. repec:spr:scient:v:103:y:2015:i:2:d:10.1007_s11192-015-1552-3 is not listed on IDEAS
    16. Christian Fisch & Tobias Hassel & Philipp Sandner & Joern Block, 2015. "University patenting: a comparison of 300 leading universities worldwide," The Journal of Technology Transfer, Springer, vol. 40(2), pages 318-345, April.

    More about this item

    Keywords

    Bayh-Dole Act; quantile regression; returns to innovation; skewed distributions; technology transfer; university patents.;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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