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Industry funding of university research and scientific productivity

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  • Hottenrott, Hanna
  • Thorwarth, Susanne

Abstract

University research provides valuable inputs to industrial innovation. It is therefore not surprising that private sector firms increasingly seek direct access through funding public R&D. This development, however, spurred concerns about possible negative long-run effects on scientific performance. While previous research has mainly focused on a potential crowding-out of scientific publications through commercialization activities such as patenting or the formation of spin-off companies, we study the effects of direct funding from industry on professors' publication and patenting efforts. Our analysis of a sample of 678 professors at 46 higher education institutions in Germany shows that a higher share of industry funding of a professor's research budget results in a lower publication outcome both in terms of quantity and quality in subsequent years. For patents, we find that industry funding increases their quality measured by patent citations.

Suggested Citation

  • Hottenrott, Hanna & Thorwarth, Susanne, 2010. "Industry funding of university research and scientific productivity," ZEW Discussion Papers 10-105, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:10105
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    Citations

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    Cited by:

    1. Fudickar, Roman & Hottenrott, Hanna & Lawson, Cornelia, 2016. "What’s the price of consulting? Effects of public and private sector consulting on academic research," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201603, University of Turin.
    2. Hottenrott, Hanna & Lawson, Cornelia, 2017. "Fishing for complementarities: Research grants and research productivity," International Journal of Industrial Organization, Elsevier, vol. 51(C), pages 1-38.
    3. D'Este, Pablo & Rentocchini, Francesco & Grimaldi, Rosa & Manjarrés-Henríquez, Liney, 2013. "The relationship between research funding and academic consulting: An empirical investigation in the Spanish context," Technological Forecasting and Social Change, Elsevier, vol. 80(8), pages 1535-1545.
    4. Andrea Bonaccorsi & Luca Secondi & Enza Setteducati & Alessio Ancaiani, 2014. "Participation and commitment in third-party research funding: evidence from Italian Universities," The Journal of Technology Transfer, Springer, vol. 39(2), pages 169-198, April.
    5. Rentocchini, Francesco & D'Este, Pablo & Manjarrés-Henríquez, Liney & Grimaldi, Rosa, 2014. "The relationship between academic consulting and research performance: Evidence from five Spanish universities," International Journal of Industrial Organization, Elsevier, vol. 32(C), pages 70-83.
    6. repec:bla:kyklos:v:70:y:2017:i:4:p:546-564 is not listed on IDEAS
    7. Cornelia Lawson, 2013. "Academic patenting: the importance of industry support," The Journal of Technology Transfer, Springer, vol. 38(4), pages 509-535, August.
    8. Kyriakos Drivas & Athanasios T. Balafoutis & Stelios Rozakis, 2014. "Research Funding and Academic Output: The Case of Agricultural University of Athens," Working Papers 2014-5, Agricultural University of Athens, Department Of Agricultural Economics.
    9. Ani Gerbin & Mateja Drnovsek, 2016. "Determinants and public policy implications of academic-industry knowledge transfer in life sciences: a review and a conceptual framework," The Journal of Technology Transfer, Springer, vol. 41(5), pages 979-1076, October.
    10. repec:spr:scient:v:97:y:2013:i:2:d:10.1007_s11192-013-1055-z is not listed on IDEAS

    More about this item

    Keywords

    Scientist Productivity; University Research; Patents; Research Funding; Technology Transfer;

    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

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