UW-Madison UW-Madison

Staff Paper No. 487 - Abstract

Research and Development at U.S. Research Universities: An Analysis of Scope Economies

Kwansoo Kim
Bradford L. Barham [barham@mailplus.wisc.edu]
Jean-Paul Chavas [jchavas@wisc.edu]
Jeremy Foltz [jdfoltz@wisc.edu]

Staff Paper No. 487, July 2005, 43p.


This work investigates the presence and sources of economies of scope in R&D at U.S. research universities. The analysis evaluates the tradeoffs and synergies arising between traditional university research outputs (articles and doctorates) and academic patents. We propose a new measure of economies of scope based on a primal representation of the underlying technology. We derive a decomposition of economies of scope which identifies its sources (e.g., complementarity effects and scale effects). Non-parametric estimates of scope economies using R&D input and output data from 92 research universities show significant economies of scope between articles and patents, but modest complementarities. (JEL O3, O31, O33, C6, L31)
Last updated on Fri, Jul 15, 2005 11:17am