Table 9:
Effect of NIH Investments on Private-Sector Patenting Heterogeneity by Patent Type
| All Private Sector |
Advanced Drug Candidates |
Highly Cited | Same Area | Different Area | Large Assignee | Small Assignee | |
|---|---|---|---|---|---|---|---|
|
Mean=24.8; SD=28.0 |
Mean=0.546; SD=0.864 |
Mean=1.28; SD=1.76 |
Mean=18.9; SD=23.8 |
Mean=15.9; SD=19.0 |
Mean=17.5; SD=20.7 |
Mean=3.47; SD=4.18 |
|
| −1 | (2) | (3) | (4) | (5) | (6) | (7) | |
| OLS | |||||||
| DST Funding (×$10 mln.) Mean=4.06; SD=4.36 | 3.615*** (0.817) |
0.081*** (0.014) |
0.175*** (0.052) |
2.699*** (0.450) |
2.297*** (0.711) |
2.562*** (0.620) |
0.506*** (0.102) |
| Elasticity | 0.592 | 0.602 | 0.555 | 0.580 | 0.587 | 0.594 | 0.592 |
| IV | |||||||
| DST Funding (×$10 mln.) Mean=4.06; SD=4.36 | 2.329** (1.159) |
0.053 (0.040) |
0.111** (0.067) |
1.202* (0.731) |
1.894** (0.939) |
1.658** (0.778) |
0.362 (0.230) |
| Elasticity | 0.381 | 0.394 | 0.352 | 0.258 | 0.484 | 0.385 | 0.424 |
| Observations | 14,085 | 14,085 | 14,085 | 14,085 | 14,085 | 14,085 | 14,085 |
Note: See notes to Tables 6 and 7 for sample details. The outcome variables are fractional patent counts. All specifications include disease-science FEs, disease-year FEs, science by year linear time trends, FEs for the number of applications to the DST, cubics in the average raw score and average science rank received by applications in the 25-grant radius window around the IC payline, and FEs for number of DST applicants in a 25-grant window around an IC’s funding cutoff. A patent is labelled “Private Sector” if it is assigned to a domestic US or foreign corporation (NBER assignee categories 1 and 2 minus foundations, universities, and hospitals). A patent is labeled an advanced drug candidate if it is included in IMS Patent Focus, which has information on patents on drugs in Phase III trials or further. A patent is in the same disease area as a DST if the majority of NIH research areas that it is linked are also associated with that same “D” disease area. A patent is associated with a large assignee if its first assignee employs more than 500 employees; it is considered small otherwise.
Standard errors in parentheses, two-way clustered at the disease and science level (*p < 0.10, **p < 0.05, ***p < 0.01).