Cookies?
Library Header Image
LSE Research Online LSE Library Services

Incentives and invention in universities

Lach, Saul and Schankerman, Mark (2008) Incentives and invention in universities. The RAND Journal of Economics, 39 (2). pp. 403-433. ISSN 0741-6261

Full text not available from this repository.

Abstract

We show that universities in the United States that provide stronger royalty incentives to faculty scientists generate greater license income, controlling for university characteristics. We use pre-sample data on university patenting to control for the potential endogeneity of royalty shares. Faculty responds to royalties both in the form of cash and research lab support, indicating both pecuniary and intrinsic research motivations. The impact of incentives is larger in private than in public universities, and we provide new survey evidence on the organization and objectives of university licensing offices to explain this difference. Royalty incentives work both by raising faculty effort and sorting scientists across universities. The primary impact of incentives is to increase the quality rather than the quantity of inventions.

Item Type: Article
Official URL: http://www.rje.org/
Additional Information: © 2008 RAND
Library of Congress subject classification: H Social Sciences > HB Economic Theory
Journal of Economic Literature Classification System: O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development
Sets: Departments > Economics
Collections > Economists Online
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 18 Apr 2011 08:49
URL: http://eprints.lse.ac.uk/35697/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only