ashish arora

14 Pages·2017·2.97 MB·English

ASHISH ARORA

DUKE UNIVERSITY
KILLING THE GOLDEN GOOSE?
CORPORATE INVESTMENT IN SCIENCE
THE STANDARD MODEL
OF INNOVATION
Willis Whitney Kenneth Meese
GE Kodak
Frank Jewett
AT&T Bell Labs
Acknowledgement: David Hounshell, Carnegie Mellon

DuPont Corporation’s Xerox’s
GM’s Technical Center Bells Labs IBM’s Watson Lab Hughes Research Lab
Experimental Station Palo Alto Research Center
THE GOLDEN AGE
OF CORPORATE RESEARCH
Walter Brittain Clinton Davisson
Bell Labs Bell Labs
Willliam Shockley Irvin Langmuir
Beckman Instruments GE
Leo Esaki
Fill Anderson Jack Kirby
IBM
Bell Labs Texas Instruments
BACK TO THE FUTURE?
OPEN INNOVATION (1850-1900)
INDEPENDENT INVENTORS
Lamoreaux and Sokoloff
Edison Sperry
Stanley Thompson
1
ASSIGNED INVENTIONS TO MULTIPLE FIRMS
Westinghouse
2
FUNDED BY LOCAL CAPITAL
3
DECLINED NATIONALLY AFTER 1890
THE PRESENT
DISENGAGEMENT FROM RESEARCH
US FIRMS ARE WITHDRAWING
FROM RESEARCH
US business expenditure on basic and applied research, as share
Share of publishing and patenting US public firms
of total business funded R&D, 1980-2012, 3 year moving average,
1980-2007
and total business funded R&D in constant 2009 dollars
437/1,814 firms
33% 300 0,25 Scientific publications Patents
Business Funded R&D
31% Share of
32% 262
250 patenting
227 0,2
29% firms
s
Basic + Applied as n
o
27% % of total R&D, 3 yr 200li
l
26% moving average bi
$ 0,15
25% 9
147 0
0
150
2
23% nt Share of
a
st 0,1 publishing
23% n
21% 100 o firms
c 110/1,814 firms
70
19%
0,05
50
17%
15% 0 0
0123456789012345678901234567
8888888888999999999900000000
9999999999999999999900000000
1111111111111111111122222222
Source: NSF S&E Indicators, 2016, Appendix tables 4.6-4.8 Source: Arora, Belenzon and Patacconi, SMJ 2017
THE USE OF SCIENCE
IS STABLE OVER TIME
U.S. utility patents citing S&E articles, by patenting and publishing sector: 1998–2010,
25,00%
Source NSF Science and Engineering Indicators, 2012, Appendix Table 5-49
Share of cited S&E articles in
20,00%
total articles times ten, 2.13%
1.7%
15,00%
% patents citing S&E articles,
11.86%
10,55%
10,00%
10,24%
industry pubs cited as % of all
pubs cited, 7.34%
5,00%
0,00%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
DECLINE IN PRIVATE VALUE OF RESEARCH
Stock market value elasticity of publication and patents M&A value elasticity of publication and patents
1980-1992 v 1993-2006 1985-1997 v 1998-2007
0,17
0,104
0,07 0,07
0,04
-0,008
-0,04
publication stock patent stock publication stock patent stock
-0,065
1980-1992 1993-2006 1985-1997 1998-2007
The value of publications has dropped, for both investors and managers.