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Public R&D Investments and Private-sector Patenting: Evidence from NIH Funding Rules / Pierre Azoulay, Joshua S. Graff Zivin, Danielle Li, Bhaven N. Sampat.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Azoulay, Pierre.
Contributor:
National Bureau of Economic Research.
Graff Zivin, Joshua S.
Li, Danielle.
Sampat, Bhaven N.
Series:
Working Paper Series (National Bureau of Economic Research) no. w20889.
NBER working paper series no. w20889
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Public R&D Investments and Private-sector Patenting
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2015.
Summary:
We quantify the impact of scientific grant funding at the National Institutes of Health (NIH) on patenting by pharmaceutical and biotechnology firms. Our paper makes two contributions. First, we use newly constructed bibliometric data to develop a method for flexibly linking specific grant expenditures to private-sector innovations. Second, we take advantage of idiosyncratic rigidities in the rules governing NIH peer review to generate exogenous variation in funding across research areas. Our results show that NIH funding spurs the development of private-sector patents: a $10 million boost in NIH funding leads to a net increase of 2.3 patents. Though valuing patents is difficult, we report a range of estimates for the private value of these patents using different approaches.
Notes:
Print version record
January 2015.

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