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Academic Entrepreneurship: Bayh-Dole versus the 'Professor's Privilege'

53 Pages Posted: 23 Oct 2015 Last revised: 27 Jun 2017

Thomas B. Astebro

HEC Paris - Strategy & Business Policy

Serguey Braguinsky

Carnegie Mellon University - Department of Social and Decision Sciences

Pontus Braunerhjelm

Royal Institute of Technology (KTH) - Department of Infrastructural and Urban Planning (INFRA); University of Orebro - Swedish Entrepreneurship Forum

Anders Broström

Royal Institute of Technology (KTH); Royal Institute of Technology (KTH) - Center of Excellence for Science and Innovation Studies

Date Written: February 1, 2016

Abstract

We explore whether the Bayh-Dole intellectual property regime is associated with more, and more valuable academic entrepreneurship than the “Professor’s Privilege” regime. Using data on U.S. STEM Ph.D.’s becoming entrepreneurs during 1993-2006 and similar data from Sweden we present evidence showing that in both countries the entry rate into entrepreneurship is lower for those originating from academia than for those orginating from non-university employment, and that the relative rate of academic entrepreneurship is slightly lower in the U.S. than in Sweden. We also find that the mean economic gains for becoming an entrepreneur is negative, both for Ph.D.’s originating from academia and non-university alike in both countries. Further analysis indicates that in both countries there is selection from the bottom of the ability distribution among academics. The results suggest that policies aimed at screening entrepreneurial decisions by younger, tenure-track academics may be more effective than general incentives to increase academic entrepreneurship.

Keywords: Academic entrepreneurship, economic incentives, Bayh-Dole, Professor’s Privilege

JEL Classification: L26, J20, N32

Suggested Citation

Astebro, Thomas B. and Braguinsky, Serguey and Braunerhjelm, Pontus and Broström, Anders, Academic Entrepreneurship: Bayh-Dole versus the 'Professor's Privilege' (February 1, 2016). HEC Paris Research Paper No. SPE-2015-1118. Available at SSRN: https://ssrn.com/abstract=2677283 or http://dx.doi.org/10.2139/ssrn.2677283

Thomas Astebro (Contact Author)

HEC Paris - Strategy & Business Policy ( email )

Jouy-en-Josas Cedex, 78351
France

Serguey Braguinsky

Carnegie Mellon University - Department of Social and Decision Sciences ( email )

Pittsburgh, PA 15213-3890
United States

Pontus Braunerhjelm

Royal Institute of Technology (KTH) - Department of Infrastructural and Urban Planning (INFRA) ( email )

SE-100 44 Stockholm
Sweden
+46 8 790 9114 (Phone)
+46 8 411 7436 (Fax)

University of Orebro - Swedish Entrepreneurship Forum ( email )

Södra Kungstornet
Kungsgatan 33, 7tr
Stockholm, 11156
Sweden

Anders Broström

Royal Institute of Technology (KTH) ( email )

Lindstedtsvägen 30-100 44
Stockholm, SE-100 44
Sweden

Royal Institute of Technology (KTH) - Center of Excellence for Science and Innovation Studies ( email )

Drottning Kristinas väg 30
Stockholm, SE-100 44
Sweden

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