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Do Competitively Acquired Funds Induce Public Research Institutions to Behave Efficiently?

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Abstract

This paper analyzes the effect of public and private third-party funds on the efficiency of departments of Swiss public research institutions. Estimating an output distance function assuming that labor is used to produce master students and scientific publications, we find no statistically significant effect of private or public third-party funding on research effciency. However, once we include technology transfer as an additional output, the coeffcient of private funding is statistically significant. We further find that this disciplining effect of private funding is qualitatively robust in a setting controlling for endogeneity.

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  • Thomas Bolli & Frank Somogyi, 2009. "Do Competitively Acquired Funds Induce Public Research Institutions to Behave Efficiently?," KOF Working papers 09-242, KOF Swiss Economic Institute, ETH Zurich.
  • Handle: RePEc:kof:wpskof:09-242
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    File URL: http://dx.doi.org/10.3929/ethz-a-005995997
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    Cited by:

    1. Zara Daghbashyan & Enrico Deiaco & Maureen McKelvey, 2014. "How and why does cost efficiency of universities differ across European countries? An explorative attempt using new microdata," Chapters,in: Knowledge, Diversity and Performance in European Higher Education, chapter 9, pages iii-iii Edward Elgar Publishing.

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    Keywords

    Efficiency; Research; University; Technology Transfer; Third-Party Funding; Public Finance;

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