On-line Appendix for 'Academic Entrepreneurship: Bayh-Dole versus the Professor's Privilege'
9 Pages Posted: 17 Dec 2018 Last revised: 24 Jan 2019
Date Written: November 19, 2018
Is the Bayh-Dole intellectual property regime associated with more and better academic entrepreneurship than the Professor Privilege regime? The authors examine data on US PhDs in the natural sciences, engineering, and medical fields who became entrepreneurs in 1993–2006 and compare this to similar data from Sweden. They find that, in both countries, those with an academic background have lower rates of entry into entrepreneurship than do those with a non-academic background. The relative rate of academics starting entrepreneurial firms is slightly lower in the United States than in Sweden. Moreover, the mean economic gains from becoming an entrepreneur are negative, both for PhDs originating in academia and non-academic settings in both countries. Analysis indicates that selection into entrepreneurship occurs from the lower part of the ability distribution among academics. The results suggest that policies aimed at supporting entrepreneurial decisions by younger, tenure-track academics may be more effective than general incentives at increasing academic entrepreneurship in general.
Note: This paper contains the on on-line appendix to the paper with the same title forthcoming in ILRR.
Keywords: Academic entrepreneurship, Bayh-Dole, Professor’s Privilege
JEL Classification: L26, J20, N32
Suggested Citation: Suggested Citation