(Mis)use of power in the ivory tower: Evidence from deans in Chinese universities

Abstract

In a hierarchical academic system, power can distort the allocation of research resources and output ownership. We study the role of power in intellectual property acquisition. Using biographical information on deans in elite universities in China, we find that holding a deanship increases patent applications by 15.2%. Further analysis suggests that the deanship effect is driven by misuse of power rather than ability or research resources. We provide causal evidence by showing that an anti-corruption campaign, which increases the cost of misusing power, substantially reduces the deanship effect. Finally, we find that misusing power distorts resource allocation. Our results highlight the importance of an improved institutional environment in allocating resources toward productive innovation.