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Incentives and invention in universities

Lach, Saul and Schankerman, Mark (2003) Incentives and invention in universities. 9727. National Bureau of Economic Research, Cambridge, MA., USA.

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Abstract

We show that economic incentives affect the number and commercial value of inventions generated in universities. Using panel data for 102 U.S. universities during the period 1991-1999, we find that universities which give higher royalty shares to academic scientists generate more inventions and higher license income, controlling for other factors including university size, quality, research funding and technology licensing inputs. The incentive effects are much larger in private universities than in public ones. For private institutions there is a Laffer curve effect: raising the inventor's royalty share increases the license income retained by the university. The incentive effect appears to work both through the level of effort and sorting of academic scientists.

Item Type: Monograph (Working Paper)
Official URL: http://www.nber.org
Additional Information: © 2003 Saul Lach and Mark Schankerman
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System: O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O34 - Intellectual Property Rights: National and International Issues
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O31 - Innovation and Invention: Processes and Incentives
L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise
L - Industrial Organization > L0 - General
Sets: Collections > Economists Online
Departments > Economics
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
Identification Number: 9727
Date Deposited: 27 May 2008 15:41
URL: http://eprints.lse.ac.uk/5093/

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