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The effect of federal research funding on formation of university-firm biopharmaceutical alliances

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  • Margaret Blume-Kohout
  • Krishna Kumar
  • Christopher Lau
  • Neeraj Sood

Abstract

The National Institutes of Health (NIH) is the largest funder of health and life science research in the United States. The research sponsored by the agency has continued to aid in the development of new biopharmaceutical therapies, many of which are commercialized via alliances between universities and biopharmaceutical firms. In this paper, we examine this commercialization pathway more closely, evaluating the effects of NIH research funding on US universities’ alliance formation. Based on results from instrumental variables models, we estimate that, on average, producing one additional university-firm alliance requires a sustained increase of $294 million in universities’ total NIH research funding over the preceding five-year period. In addition, a sustained increase in funding of $100 million over 5 years increases the probability of a university forming at least one alliance by 0.54, or 54 percentage points. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Margaret Blume-Kohout & Krishna Kumar & Christopher Lau & Neeraj Sood, 2015. "The effect of federal research funding on formation of university-firm biopharmaceutical alliances," The Journal of Technology Transfer, Springer, vol. 40(5), pages 859-876, October.
    • Handle: RePEc:kap:jtecht:v:40:y:2015:i:5:p:859-876
    DOI: 10.1007/s10961-014-9374-7
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    Cited by:

    1. Jason Coupet & Yuhao Ba, 2022. "Benchmarking university technology transfer performance with external research funding: a stochastic frontier analysis," The Journal of Technology Transfer, Springer, vol. 47(2), pages 605-620, April.
    2. Zhou Mo & Zhang Yujie & Lei Jiasu & Tan Xiaowen, 2022. "Early firm engagement, government research funding, and the privatization of public knowledge," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(8), pages 4797-4826, August.
    3. Rojas, Mariana Giovanna Andrade & Solis, Edgar Rogelio Ramirez & Zhu, John JianJun, 2018. "Innovation and network multiplexity: R&D and the concurrent effects of two collaboration networks in an emerging economy," Research Policy, Elsevier, vol. 47(6), pages 1111-1124.
    4. Byeongwoo Kang & Kazuyuki Motohashi, 2020. "Academic contribution to industrial innovation by funding type," Scientometrics, Springer;Akadémiai Kiadó, vol. 124(1), pages 169-193, July.

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    More about this item

    Keywords

    University-industry research partnerships; Academic-industrial collaboration; Federal research funding; O38; O31; L24; I23;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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