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We examine the relationships between company R&D and three elements of public science: data, human capital, and invention. We determine the relationships via firm-specific publicity to adjustments in federal company R&D budgets which are pushed by the political composition of congressional appropriations subcommittees. Our outcomes point out that R&D by established companies, which account for greater than three-quarters of enterprise R&D, is affected by scientific data produced by universities solely when the latter is embodied in innovations or PhD scientists. Human capital educated by universities fosters innovation in companies. Nevertheless, innovations from universities and public analysis institutes substitute for company innovations and scale back the demand for inner analysis by companies, maybe reflecting downstream competitors from startups that commercialize college innovations. Furthermore, summary data advances per se elicit little or no response. Our findings query the assumption that public science represents a non-rival public good that feeds into company R&D via data spillovers.
Emphasis added by me. That’s a brand new NBER working paper by
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