University Research, Technological Commercialization, and Location

Abstract

While universities are key sites for the development of new and innovative ideas, translating basic research into commercial products and companies is not so straightforward. The frequency and extent of commercialization of basic research findings varies significantly across universities. In this paper, we examine how commercialization of university-based research depends on the region in which the university sits. We merge data from the Association of University Technology Managers on licensing, spinoffs, and revenues with features local to the university, such as industry mix and availability of entrepreneurial finance. We find that being in a city significantly increases university commercialization outcomes, even after accounting for a robust slate of controls.