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Who is Selling the Ivory Tower? Sources of Growth in University Licensing

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  • Jerry G. Thursby
  • Marie C. Thursby

Abstract

Historically, commercial use of university research has been viewed in terms of spillovers. Recently, there has been a dramatic increase in technology transfer through licensing as universities attempt to appropriate the returns from faculty research. This change has prompted concerns regarding the source of this growth - specifically, whether it suggests a change in the nature of university research. We develop an intermediate input model to examine the extent to which the growth in licensing is due to the productivity observable inputs or driven by a change in the propensity of faculty and administrators to engage in commercializing university research. We model licensing as a three stage process, each involving multiple inputs. Nonparametric programming techniques are applied to survey data from 65 universities to calculate total factor productivity (TFP) growth in each state. To examine the sources of TFP growth, the productivity analysis is augmented by survey evidence from business who license-in university inventions. Results suggest that increased licensing is due primarily to an increased willingness of faculty and administrators to license and increased business reliance on external R&D rather than a shift in faculty research.

Suggested Citation

  • Jerry G. Thursby & Marie C. Thursby, 2000. "Who is Selling the Ivory Tower? Sources of Growth in University Licensing," NBER Working Papers 7718, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:7718
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    1. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 577-598.
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    5. Thursby, Jerry G & Jensen, Richard & Thursby, Marie C, 2001. "Objectives, Characteristics and Outcomes of University Licensing: A Survey of Major U.S. Universities," The Journal of Technology Transfer, Springer, vol. 26(1-2), pages 59-72, January.
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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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