*Please note: Due to campus being shut down this Wednesday, we are holding the seminar from 11:10am-12:30pm on Tuesday, in the Fung Institute (330 Blum Hall, it’s the historical brown building between Sutardja Dai and Soda Halls, enter from uphill, eastern side).
This week, Michaël Bikard from the London Business School and Matt Marx from MIT Sloan School of Management will be jointly presenting, “Frictions in the Flow of Academic Knowledge to Industry: Evidence from Simultaneous Discoveries.” The paper’s abstract is below:
Scientific discoveries in academia can spur innovation and growth, but only if that knowledge flows to relevant industry actors. One possible friction in the flow of academic knowledge to industry could be that many academic scientists are geographically isolated from firms performing R&D in relevant fields. But research at isolated institutions may be less applied, or simply of lower quality, confounding inference. We address the unobserved-quality problem by analyzing simultaneous discoveries where multiple researchers in different locations report the same finding in separate papers. We find that “twin” papers reporting a simultaneous discovery are 10-23% less likely to be referenced as prior art in firm-owned patents when not within commuting distance of a significant concentration of R&D activity in relevant fields. No effect is found for references from university-owned patents. Our results suggest that discoveries at isolated institutions may become orphaned, suggesting both implications for the science of science policy as well as firms’ commercialization strategies.
We’ll be skyping Matt Marx for his Management Science paper on strategy and the speech industry.
Last week, Matt Rhodes-Kropf presented a model and evidence based on Amazon’s EC2 product on the recent changes in Venture Capital investment strategies. He illustrated how VCs are more likely to invest smaller amounts in earlier opportunities, govern less closely, and less likely to follow up, However, when they do follow up, they invest more. He argues that this is a result of the cheaper cost of entrepreneurship, at least for industries that rely on information technology.