Download this Paper Open PDF in Browser

Industry Funding of University Research and Scientific Productivity

30 Pages Posted: 20 Mar 2011  

Hanna Hottenrott

Heinrich Heine University Dusseldorf - Duesseldorf Institute for Competition Economics (DICE); Centre for European Economic Research (ZEW); KU Leuven - Faculty of Business and Economics (FEB)

Suzanne Thorwarth

Katholieke Universiteit Leuven (KUL) - Faculty of Business and Economics

Multiple version iconThere are 2 versions of this paper

Date Written: February 1, 2011

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 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

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

Hanna Hottenrott (Contact Author)

Heinrich Heine University Dusseldorf - Duesseldorf Institute for Competition Economics (DICE) ( email )

Universitaetsstr. 1
Duesseldorf, NRW 40225
Germany

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1
Mannheim, 68034
Germany

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Leuven, 3000
Belgium

Suzanne Thorwarth

Katholieke Universiteit Leuven (KUL) - Faculty of Business and Economics ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

Paper statistics

Downloads
49
Abstract Views
454