IDEAS home Printed from https://ideas.repec.org/p/ris/uncgec/2017_002.html
   My bibliography  Save this paper

On the Failure of Scientific Research: An Analysis of SBIR Projects Funded by the U.S. National Institutes of Health

Author

Listed:
  • Andersen, Martin

    (University of North Carolina at Greensboro, Department of Economics)

  • Bray, Jeremy

    (University of North Carolina at Greensboro, Department of Economics)

  • Link, Albert

    (University of North Carolina at Greensboro, Department of Economics)

Abstract

The Small Business Innovation Research (SBIR) program is the primary source of public funding in the United States for research by small firms on new technologies, and the National Institutes of Health (NIH) is a major contributor to that funding agenda. Although previous research has explored the determinants of research success for NIH SBIR projects, little is known about the determinants of project failure. This paper provides important, new evidence on the characteristics of NIH SBIR projects that fail. Specifically, we find that firms that have a founder with a business background are less likely to have their funded projects fail. We also find, after controlling for the endogenous nature of woman-owned firms, that such firms are also less likely to fail.

Suggested Citation

  • Andersen, Martin & Bray, Jeremy & Link, Albert, 2017. "On the Failure of Scientific Research: An Analysis of SBIR Projects Funded by the U.S. National Institutes of Health," UNCG Economics Working Papers 17-2, University of North Carolina at Greensboro, Department of Economics.
  • Handle: RePEc:ris:uncgec:2017_002
    as

    Download full text from publisher

    File URL: http://bryan.uncg.edu/econ/files/2017/03/Failure-of-Scientific-Research-1.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Albert N. Link & John T. Scott, 2013. "Governments as entrepreneur: Evaluating the commercialization success of SBIR projects," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 2, pages 25-38, Edward Elgar Publishing.
    2. Mathew L. A. Hayward & Dean A. Shepherd & Dale Griffin, 2006. "A Hubris Theory of Entrepreneurship," Management Science, INFORMS, vol. 52(2), pages 160-172, February.
    3. Link, Albert N., 2015. "Capturing Knowledge: Private Gains and Public Gains from University Research Partnerships," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 11(3), pages 139-206, November.
    4. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    5. Gicheva, Dora & Link, Albert N., 2016. "On the economic performance of nascent entrepreneurs," European Economic Review, Elsevier, vol. 86(C), pages 109-117.
    6. Phil Nixon & Megan Harrington & David Parker, 2012. "Leadership performance is significant to project success or failure: a critical analysis," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 61(2), pages 204-216, January.
    7. Albert N. Link & John T. Scott, 2013. "Bending the Arc of Innovation: Public Support of R&D in Small, Entrepreneurial Firms," Science, Technology, and Innovation Policy, Palgrave Macmillan, number 978-1-137-37088-4, April.
    8. Dennis Leyden & Albert Link, 2015. "Toward a theory of the entrepreneurial process," Small Business Economics, Springer, vol. 44(3), pages 475-484, March.
    9. Christopher Hayter, 2015. "Public or private entrepreneurship? Revisiting motivations and definitions of success among academic entrepreneurs," The Journal of Technology Transfer, Springer, vol. 40(6), pages 1003-1015, December.
    10. Albert N. Link, 2013. "Public Support of Innovation in Entrepreneurial Firms," Books, Edward Elgar Publishing, number 15558.
    11. Albert N. Link & Christopher J. Ruhm, 2013. "Bringing science to market:commercializing from NIH SBIR awards," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 1, pages 3-24, Edward Elgar Publishing.
    12. Donald Siegel & Charles Wessner, 2012. "Universities and the success of entrepreneurial ventures: evidence from the small business innovation research program," The Journal of Technology Transfer, Springer, vol. 37(4), pages 404-415, August.
    13. Leyden, Dennis Patrick & Link, Albert N., 2015. "Public Sector Entrepreneurship: U.S. Technology and Innovation Policy," OUP Catalogue, Oxford University Press, number 9780199313853, Decembrie.
    14. Albert N. Link & John T. Scott, 2013. "Concluding Observations about Public Support of R&D in Small, Entrepreneurial Firms," Science, Technology, and Innovation Policy, in: Bending the Arc of Innovation: Public Support of R&D in Small, Entrepreneurial Firms, chapter 10, pages 70-74, Palgrave Macmillan.
    15. Nightingale, Paul, 1998. "A cognitive model of innovation," Research Policy, Elsevier, vol. 27(7), pages 689-709, November.
    16. Link, Albert & Wright, Mike, 2015. "On the Failure of R&D Projects," UNCG Economics Working Papers 15-3, University of North Carolina at Greensboro, Department of Economics.
    17. Wilde, Joachim, 2000. "Identification of multiple equation probit models with endogenous dummy regressors," Economics Letters, Elsevier, vol. 69(3), pages 309-312, December.
    18. Stuart D. Allen & Stephen K. Layson & Albert N. Link, 2013. "Public gains from entrepreneurial research: Inferences about the economic value of public support of the Small Business Innovation Research program," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 6, pages 105-112, Edward Elgar Publishing.
    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. Albert N. Link & Martijn van Hasselt, 2022. "The use of intellectual property protection mechanisms by publicly supported firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 31(1-2), pages 111-121, February.
    2. Valérie François & Pascal Philippart, 2019. "A university spin-off launch failure: explanation by the legitimation process," The Journal of Technology Transfer, Springer, vol. 44(4), pages 1188-1215, August.
    3. Sergio Salles-Filho & Bruno Fischer & Yohanna Juk & Paulo Feitosa & Fernando A. B. Colugnati, 2023. "Acknowledging diversity in knowledge-intensive entrepreneurship: assessing the Brazilian small business innovation research," The Journal of Technology Transfer, Springer, vol. 48(4), pages 1446-1465, August.
    4. Albert N Link & Christopher A Swann & Martijn van Hasselt, 2022. "An assessment of the US Small Business Innovation Research (SBIR) program: A study of project failure [On the Failure of Scientific Research: An Analysis of SBIR Projects Funded by the U.S. Nationa," Science and Public Policy, Oxford University Press, vol. 49(6), pages 972-978.
    5. Steven Bednar & Dora Gicheva & Albert N. Link, 2021. "Innovative activity and gender dynamics," Small Business Economics, Springer, vol. 56(4), pages 1591-1599, April.
    6. Sara Amoroso & Albert N. Link, 2021. "Intellectual property protection mechanisms and the characteristics of founding teams," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(9), pages 7329-7350, September.
    7. Rajeev K. Goel & Devrim Göktepe-Hultén, 2021. "Innovation by foreign researchers: relative influences of internal versus external human capital," The Journal of Technology Transfer, Springer, vol. 46(1), pages 258-276, February.
    8. Mengyang Pan & Aravind Chandrasekaran & James Hill & Manus Rungtusanatham, 2022. "Multidisciplinary R&D project success in small firms: The role of multiproject status and project management experience," Production and Operations Management, Production and Operations Management Society, vol. 31(7), pages 2806-2821, July.
    9. Sara Nienow & Olena Leonchuk & Alan C O’Connor & Albert N Link, 2024. "Bringing technology to market: National Heart, Lung, and Blood Institute SBIR Phase IIB projects," Science and Public Policy, Oxford University Press, vol. 51(1), pages 144-148.

    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. Link, Albert & Scott, John, 2017. "Toward an Assessment of the U.S. Small Business Innovation Research (SBIR) Program at the National Institutes of Health," UNCG Economics Working Papers 17-6, University of North Carolina at Greensboro, Department of Economics.
    2. Maribel Guerrero & Albert N. Link, 2022. "Public support of innovative activity in small and large firms in Mexico," Small Business Economics, Springer, vol. 59(1), pages 413-422, June.
    3. Christopher Hayter, 2015. "Public or private entrepreneurship? Revisiting motivations and definitions of success among academic entrepreneurs," The Journal of Technology Transfer, Springer, vol. 40(6), pages 1003-1015, December.
    4. Albert N. Link, 2021. "Investments in R&D and innovative behavior: an exploratory cross-country study," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 731-739, June.
    5. Farhat Chowdhury & Albert N. Link & Anne Beeson Royalty, 2023. "Gender and innovation at the US National Institutes of Health," Small Business Economics, Springer, vol. 61(4), pages 1543-1553, December.
    6. Gicheva, Dora & Link, Albert N., 2016. "On the economic performance of nascent entrepreneurs," European Economic Review, Elsevier, vol. 86(C), pages 109-117.
    7. Daniel Nepelski & Giuseppe Piroli, 2018. "Organizational diversity and innovation potential of EU-funded research projects," The Journal of Technology Transfer, Springer, vol. 43(3), pages 615-639, June.
    8. Steven Bednar & Dora Gicheva & Albert N. Link, 2021. "Innovative activity and gender dynamics," Small Business Economics, Springer, vol. 56(4), pages 1591-1599, April.
    9. Amol M. Joshi & Todd M. Inouye & Jeffrey A. Robinson, 2018. "How does agency workforce diversity influence Federal R&D funding of minority and women technology entrepreneurs? An analysis of the SBIR and STTR programs, 2001–2011," Small Business Economics, Springer, vol. 50(3), pages 499-519, March.
    10. Stuart D. Allen & Stephen K. Layson & Albert N. Link, 2013. "Public gains from entrepreneurial research: Inferences about the economic value of public support of the Small Business Innovation Research program," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 6, pages 105-112, Edward Elgar Publishing.
    11. Fini, Riccardo & Perkmann, Markus & Kenney, Martin & Maki, Kanetaka M., 2023. "Are public subsidies effective for university spinoffs? Evidence from SBIR awards in the University of California system," Research Policy, Elsevier, vol. 52(1).
    12. David B. Audretsch & Donald F. Kuratko & Albert N. Link, 2016. "Dynamic entrepreneurship and technology-based innovation," Journal of Evolutionary Economics, Springer, vol. 26(3), pages 603-620, July.
    13. Albert N. Link & Christopher J. Ruhm & Donald S. Siegel, 2014. "Private Equity and the Innovation Strategies of Entrepreneurial Firms: Empirical Evidence from the Small Business Innovation Research Program," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 35(2), pages 103-113, March.
    14. Farhat Chowdhury & Albert N. Link & Martijn Hasselt, 2022. "Public support for research in artificial intelligence: a descriptive study of U.S. Department of Defense SBIR Projects," The Journal of Technology Transfer, Springer, vol. 47(3), pages 762-774, June.
    15. Barry Bozeman & Albert N. Link, 2015. "Toward an assessment of impacts from US technology and innovation policies," Science and Public Policy, Oxford University Press, vol. 42(3), pages 369-376.
    16. Vijayaraghavan, K. & Dutz, Mark A., 2012. "Biotechnology innovation for inclusive growth : a study of Indian policies to foster accelerated technology adaptation for affordable development," Policy Research Working Paper Series 6022, The World Bank.
    17. Donald Siegel & Charles Wessner, 2012. "Universities and the success of entrepreneurial ventures: evidence from the small business innovation research program," The Journal of Technology Transfer, Springer, vol. 37(4), pages 404-415, August.
    18. Dennis Patrick Leyden, 2016. "Universities as partners in research joint ventures," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(4), pages 449-462, December.
    19. David B. Audretsch & Dennis P. Leyden & Albert N. Link, 2013. "Universities as research partners in publicly supported entrepreneurial firms," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 12, pages 175-192, Edward Elgar Publishing.
    20. Markus A. Kirchberger & Larissa Pohl, 2016. "Technology commercialization: a literature review of success factors and antecedents across different contexts," The Journal of Technology Transfer, Springer, vol. 41(5), pages 1077-1112, October.

    More about this item

    Keywords

    technology; innovation; R&D; small firms; SBIR; NIH;
    All these keywords.

    JEL classification:

    • 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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ris:uncgec:2017_002. 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: Albert Link (email available below). General contact details of provider: https://edirc.repec.org/data/edncgus.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.