Incentives and Creativity: Evidence from the Academic Life Sciences

Pierre Azoulay, Joshua Graff Zivin and Gustavo Manso

No 15466, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Despite its presumed role as an engine of economic growth, we know surprisingly little about the drivers of scientific creativity. In this paper, we exploit key differences across funding streams within the academic life sciences to estimate the impact of incentives on the rate and direction of scientific exploration. Specifically, we study the careers of investigators of the Howard Hughes Medical Institute (HHMI), which tolerates early failure, rewards long-term success, and gives its appointees great freedom to experiment; and grantees from the National Institute of Health, which are subject to short review cycles, pre-defined deliverables, and renewal policies unforgiving of failure. Using a combination of propensity-score weighting and difference-in-differences estimation strategies, we find that HHMI investigators produce high- impact papers at a much higher rate than a control group of similarly-accomplished NIH-funded scientists. Moreover, the direction of their research changes in ways that suggest the program induces them to explore novel lines of inquiry.

JEL-codes: O31 O32 (search for similar items in EconPapers)
Date: 2009-10
New Economics Papers: this item is included in nep-ent, nep-ipr, nep-pr~ and nep-sog
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Citations: View citations in EconPapers (14)

Published as Pierre Azoulay & Joshua S. Graff Zivin & Gustavo Manso, 2011. "Incentives and creativity: evidence from the academic life sciences," RAND Journal of Economics, RAND Corporation, vol. 42(3), pages 527-554, 09.

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