Abstract
This paper focuses on the research behavior of nonprofit firms. In particular, we model process innovation and compare equilibrium research spending under alternate objectives to outcomes under profit-maximization. Do profit-maximizing organizations spend more on research than nonprofit firms? We find that the nonprofit research spending exceeds the profit-maximizing levels. The ranking between nonprofit firms and the social optima, however, is less clear. Policy implications are discussed.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Arora, A., A. Fosfuri, and A. Gambardella, 2001, Markets for Technology, Cambridge, MA: MIT Press.
Audretsch, D.B., B. Bozeman, K.L. Combs, M. Feldman, A.N. Link, D.S. Siegel, P. Stephan, G. Tassey, and C. Wessmer, 2002, ‘The Economics of Science and Technology,’ Journal of Technology Transfer 27, 155-203.
Carlton, D.W. and J.M. Perloff, 2000, Modern Industrial Organization (3rd edition), Reading, MA: Addison-Wesley.
Chiang, A.C., 1984, Fundamental Methods of Mathematical Economics (3rd edition), New York: McGraw-Hill.
Dasgupta, P. and J. Stiglitz, 1980, ‘Industrial Structure and the Nature of Innovative Activity,’ Economic Journal 90, 266-293.
De Fraja, G. and E. Iossa, 2002, ‘Competition among Universities and the Emergence of the Elite Institution,’ Bulletin of Economic Research 54, 275-293.
Del Rey, E., 2001, ‘Teaching versus Research: A Model of State University Competition,’ Journal of Urban Economics 49, 356-373.
Goel, R.K., 1999, Economic Models of Technological Change, Westport, CT: Quorum Books.
Goel, R.K., 1990, ‘Innovation, Market Structure, and Welfare: A Stackelberg Model,’ Quarterly Review of Economics and Business 30, 40-53.
Henderson, R., A.B. Jaffe, and M. Trajtenberg, 1998, ‘Universities as a Source of Commercial Technology: A Detailed Analysis of University Patenting, 1965–1988,’ Review of Economics and Statistics 80, 119-127.
Jaffe, A.B., 1989, ‘The Real Effects of Academic Research,’ American Economic Review 79, 957-970.
Kamien, M.I. and N.L. Schwartz, 1982, Market Structure and Innovation, Cambridge: Cambridge University Press.
Loury, G.C., 1979, ‘Market Structure and Innovation,’ Quarterly Journal of Economics 93, 395-410.
Mansfield, E., 1995, ‘Academic Research Underlying Industrial Innovations: Sources, Characteristics and Financing,’ Review of Economics and Statistics 77, 55-65.
Nelson, R.R., 2001, ‘Observations on the Post-Bayh-Dole Rise of Patenting at American Universities,’ Journal of Technology Transfer 26, 13-19.
Powell, W.W. and J. Owen-Smith, 1998, ‘Universities as Creators and Retailers of Intellectual Property: Life-Sciences Research and Commercial Development,’ in B.A. Weisbrod (ed.), To Profit or Not to Profit, Cambridge: Cambridge University Press, pp. 169-193.
Reinganum, J.F., 1989, ‘The Timing of Innovation: Research, Development and Diffusion,’ in R. Schmalensee and R.D. Willig (eds.), Handbook of Industrial Organization (Vol. I), Amsterdam: North-Holland, pp. 849-908.
Schumpeter, J.A., 1942, Capitalism, Socialism, and Democracy, New York: Harper and Brothers Publishers.
Tandon, P., 1984, ‘Innovation, Market Structure, and Welfare,’ American Economic Review 74, 394-403.
Vitaliano, D.F., 2003, ‘Do Not-for-profit Firms Maximize Profit?,’ Quarterly Review of Economics and Finance 43, 75-87.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Goel, R.K. Research by Not-for-Profit Enterprises. The Journal of Technology Transfer 29, 211–216 (2004). https://doi.org/10.1023/B:JOTT.0000019539.05696.16
Issue Date:
DOI: https://doi.org/10.1023/B:JOTT.0000019539.05696.16