@techreport{NBERw15146,
 title = "Federal Life Sciences Funding and University R&D",
 author = "Margaret E. Blume-Kohout and Krishna B. Kumar and Neeraj Sood",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "15146",
 year = "2009",
 month = "July",
 URL = "http://www.nber.org/papers/w15146",
 abstract = {This paper investigates the impact of federal extramural research funding on total expenditures for life sciences research and development (R&D) at U.S. universities, to determine whether federal R&D funding spurs funding from non-federal (private and state/local government) sources.  We use a fixed effects instrumental variable approach to estimate the causal effect of federal funding on non-federal funding.  Our results indicate that a dollar increase in federal funding leads to a $0.33 increase in non-federal funding at U.S. universities.   Our evidence also suggests that successful applications for federal funding may be interpreted by non-federal funders as a signal of recipient quality:  for example, non-PhD-granting universities, lower ranked universities and those that have historically received less funding experience greater increases in non-federal funding per federal dollar received.},
}