University Entrepreneurship and Professor Privilege
This paper analyzes how institutional differences affect university entrepreneurship. We focus on ownership of faculty inventions, and compare two institutional regimes; the US and Sweden. In the US, the Bayh Dole Act gives universities the right to own inventions from publicly funded research, whereas in Sweden, the professor privilege gives the university faculty this right. We develop a theoretical model and examine the effects of institutional differences on modes of commercialization; entrepreneurship or licenses to established firms, as well as on probabilities of successful commercialization. We find that the US system is less conducive to entrepreneurship than the Swedish system if established firms have some advantage over faculty startups, and that on average the probability of successful commercialization is somewhat higher in the US. We also use the model to perform four policy experiments as suggested by recent policy debates in both countries.
Financial support from the Torsten and Ragnar Söderberg Foundations and Jan Wallander's Research Foundation is gratefully acknowledged. We thank participants of the June 2011 IFN/Swedish Entrepreneurship Forum Conference Entrepreneurship, Industrial Development and Growth for helpful comments and suggestions. Thursby acknowledges funding from the National Science Foundation (Sub-award 44771-7471 of Award 0335765 and Award 0965289. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Erika Färnstrand Damsgaard & Marie C. Thursby, 2013. "University entrepreneurship and professor privilege," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 183-218, February. citation courtesy of