Federal Life Sciences Funding and University R&D
Margaret Blume-Kohout (),
Krishna Kumar () and
Neeraj Sood ()
No 15146, NBER Working Papers from National Bureau of Economic Research, Inc
This paper investigates the impact of federal extramural research funding on total expenditures for life sciences research and development (R&D) at U.S. universities, to determine whether federal R&D funding spurs funding from non-federal (private and state/local government) sources. We use a fixed effects instrumental variable approach to estimate the causal effect of federal funding on non-federal funding. Our results indicate that a dollar increase in federal funding leads to a $0.33 increase in non-federal funding at U.S. universities. Our evidence also suggests that successful applications for federal funding may be interpreted by non-federal funders as a signal of recipient quality: for example, non-PhD-granting universities, lower ranked universities and those that have historically received less funding experience greater increases in non-federal funding per federal dollar received.
JEL-codes: H5 I1 I23 O3 (search for similar items in EconPapers)
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