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Evaluating the Role of Science Philanthropy in American Research Universities

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  • Fiona E. Murray

Abstract

Philanthropy plays a major role in university-based scientific, engineering and medical research in the United States contributing over $4Billion annually to operations, endowment and buildings devoted to research. When combined with endowment income, university research funding from science philanthropy is $7Billion a year. This major contribution to U.S. scientific competitiveness comes from private foundations as well as gifts from wealthy individuals. From the researcher's perspective, analysis in this paper demonstrates that science philanthropy provides almost 30% of the annual research funds of those in leading universities. And yet science philanthropy has been largely overshadowed by the massive rise of Federal research funding and, to a lesser extent, industry funding. Government and industry funding have drawn intensive analysis, partly because their objectives are measureable: governments generally support broad national goals and basic research, while industry finances projects likely to contribute directly to useful products. In contrast, philanthropy's contribution to overall levels of scientific funding, and, more importantly, the distribution of philanthropy across different types of research is poorly understood. To fill this gap, we provide the first empirical evaluation of the role of science philanthropy in American research universities. The documented extent of science philanthropy and its strong emphasis on translational medical research raises important questions for Federal policymakers. In determining their own funding strategies, they must no longer assume that their funding is the only source in shaping some fields of research, while recognizing that philanthropy may ignore other important fields.

Suggested Citation

  • Fiona E. Murray, 2012. "Evaluating the Role of Science Philanthropy in American Research Universities," NBER Working Papers 18146, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:18146
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    1. Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67(3), pages 297-297.
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    Cited by:

    1. Mario Cervantes, 2017. "Higher Education Institutions in the Knowledge Triangle," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(2), pages 27-42.
    2. Croucher, Gwilym, 2018. "CAN THE RESEARCH MODEL MOVE BEYOND ITS DOMINANT PATRON? The Future of Support for Fundamental Research in US Universities," University of California at Berkeley, Center for Studies in Higher Education qt1x07w0vr, Center for Studies in Higher Education, UC Berkeley.
    3. Paula Stephan, 2014. "The Endless Frontier: Reaping What Bush Sowed?," NBER Chapters, in: The Changing Frontier: Rethinking Science and Innovation Policy, pages 321-366, National Bureau of Economic Research, Inc.
    4. Ritzen, Jo, 2020. "Public universities, in search of enhanced funding," MERIT Working Papers 2020-020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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