TY  - JOUR
AU  - Jensen,Richard
AU  - Thursby,Marie
TI  - Proofs and Prototypes for Sale:  The Tale of University Licensing
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6698
PY  - 1998
Y2  - August 1998
UR  - http://www.nber.org/papers/w6698
L1  - http://www.nber.org/papers/w6698.pdf
N1  - Author contact info:
Richard Jensen
Dept. of Economics 
University of Notre Dame
434 Flanner Hall
Notre Dame, IN 46556
E-Mail: richard.jensen.24@nd.edu

Marie C. Thursby
College of Management
Georgia Institute of Technology
800 West Peachtree Street, NW
Atlanta, GA 30308-1149
Tel: 404/894-6249
Fax: 404/385-4894
E-Mail: marie.thursby@mgt.gatech.edu
AB  - Proponents of the Bayh-Dole Act argue that unless universities have the right to license patentable inventions, many results from federally funded research would never be transferred to industry.  Our survey of U.S. research universities supports this view.  Results point to the embryonic state of most technologies licensed and the need for inventor cooperation in the commercialization process.  Thus, for most university inventions, there is a moral hazard problem with regard to inventor effort. Our theoretical analysis shows that for such inventions, development would not occur unless the inventor's income is tied to the licensee's output by payments such as royalties or equity. Sponsored research can also be critical to commercialization, but it alone does not solve the inventor's moral hazard problem.
ER  -