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Academic freedom, private-sector focus, and the process of innovation

Philippe Aghion, Mathias Dewatripont () and Jeremy C. Stein

RAND Journal of Economics, 2008, vol. 39, issue 3, 617-635

Abstract: We develop a model that clarifies the respective advantages and disadvantages of academic and private-sector research. Rather than relying on lack of appropriability or spillovers to generate a rationale for academic research, we emphasize control-rights considerations, and argue that the fundamental tradeoff between academia and the private sector is one of creative control versus focus. By serving as a precommitment mechanism that allows scientists to freely pursue their own interests, academia can be indispensable for early-stage research. At the same time, the private sector's ability to direct scientists toward higher-payoff activities makes it more attractive for later-stage research. Copyright (c) 2008, RAND.

Date: 2008
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Working Paper: Academic Freedom, Private-Sector Focus, and the Process of Innovation (2008) Downloads
Working Paper: Academic Freedom, Private-Sector Focus, and the Process of Innovation (2005) Downloads
Working Paper: Academic Freedom, Private-Sector Focus, and the Process of Innovation (2005) Downloads
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