Public funding for biomedical research is often justified as a means to encourage development of more (and better) treatments for disease. However, few studies have investigated the relationship between these expenditures and downstream pharmaceutical innovation. In particular, although recent analyses have shown a clear contribution of federally…

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…

The Bayh-Dole Act of 1980 expressly gave colleges, universities, and other nonprofit entities the right, which had previously been presumptively held by the federal government itself, to patent inventions resulting from federally funded research and development (R&D) activities they conduct. In the nearly three decades since the Bayh-Dole Act…