30 Pages Posted: 20 Mar 2011
Date Written: February 1, 2011
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.
Keywords: Scientific Productivity, Research Funding, Academic Patents, Technology Transfer
JEL Classification: O31, O32, O33
Suggested Citation: Suggested Citation
Hottenrott, Hanna and Thorwarth, Suzanne, Industry Funding of University Research and Scientific Productivity (February 1, 2011). Available at SSRN: https://ssrn.com/abstract=1786418 or http://dx.doi.org/10.2139/ssrn.1786418