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Industry funding of university research and scientific productivity

  • Hottenrott, Hanna
  • Thorwarth, Susanne

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 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 on 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.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 10-105 [rev.].

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Date of creation: 2011
Date of revision:
Handle: RePEc:zbw:zewdip:10105r
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