TY  - JOUR
AU  - Blume-Kohout,Margaret E.
AU  - Kumar,Krishna B.
AU  - Sood,Neeraj
TI  - Federal Life Sciences Funding and University R&D
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15146
PY  - 2009
Y2  - July 2009
UR  - http://www.nber.org/papers/w15146
L1  - http://www.nber.org/papers/w15146.pdf
N1  - Author contact info:
Margaret E. Blume-Kohout
Department of Economics
 and RWJF Center for Health Policy
University of New Mexico
E-Mail: megbk@unm.edu

Krishna Kumar
RAND Corporation
1776 Main Street
Santa Monica, CA  90407
E-Mail: kumar@rand.org

Neeraj Sood
Department of Clinical Pharmacy
USC School of Pharmacy
1985 Zonal Avenue
Los Angeles, CA 90033
Tel: 310/393-0411
Fax: 310/260-8156
E-Mail: nsood@usc.edu
AB  - 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.
ER  -