Working Paper: NBER ID: w28533
Authors: Ashish Arora; Sharon Belenzon; Bernardo Dionisi
Abstract: Technical progress increasingly relies on the use of scientific knowledge. But if much of this knowledge is in the public domain, can it be a source of private value? We find that average private returns to using public science are small, especially in crowded technical fields, consistent with the view that the expected profit from an input that others can easily access is low. However, private value is higher when a firm is the first to use science, partly because it can secure broader patents relative to later users. Finally, corporate participation in scientific research is a strong predictor of first use, especially of relevant science. This is consistent with the view that participation in science raises familiarity with relevant scientific advances.
Keywords: No keywords provided
JEL Codes: O30; O31; O34; O36
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| being a first mover in using science (O36) | private value (D46) |
| corporate participation in scientific research (G38) | likelihood of being the first to use scientific publications (A14) |
| familiarity with scientific journals and conferences (Y90) | first use (Y20) |
| increased competition (L13) | overall returns from using science (I26) |
| being a first mover (F23) | negative effects of competition on value (D46) |
| number of potential users (D16) | relationship between science use and patent value (O36) |