Science, Innovations and Institutions: Comments Paula Stephan, Georgia State University June 2005

To Begin Won’t talk about death of linear model; or what the arc implies with regard to IP Former has been resoundingly documented by Rosenberg Latter I’ll leave for Paul David

Three Observations Scientists and engineers working in industry The role of knowledge flows Bayh-Dole angst

Scientists and Engineers Working in Industry Both papers stress importance to economic growth of scientists and engineers working in industry Ironically, policy lever that created much of this work force in the U.S. owes its existence to the belief in the linear model— faulty as it is. Lever was subsidization of production of trained science and engineering workforce

The Workings of the Lever Fundamental research was to occur in the university and receive (after WWII) federal funding Research grants included funds to staff labs with graduate research assistants and postdocs. Major source of financial support for graduate study although some fellowships also awarded; Format continues when funds come from industry rather than federal government.

Implications of the Model University labs were staffed by “temporary” workers who had to move on after being trained Created a supply greater than that needed for replacement and growth in academe Has meant that increasingly in U.S. new PhDs work outside academe, primarily in industry.

All Is Not Well: Model Could be in Danger Supply side: evidence of disenchantment with career outcomes and training process; discourages exceptional talent from entering S&E. Demand side: supply is not sufficient to stimulate demand; scientists and engineers in many countries (including Europe) appear to be underappreciated by industry.

Role of Knowledge Flows Both Romer’s and Rosenberg’s presentations emphasize the importance of knowledge flows from technology to the abstract Usual research question of economists is exactly the opposite: tracing the flow of “public” knowledge to the private (and more grounded) sector. Of course…public is not synonymous with abstract; nor is private synonymous with technology, but

Equally Important Question How knowledge moves from practical to abstract? Mansfield is one of the few to do a survey related to this; suggests faculty consulting contributes greatly to the flow. Clearly new PhDs working in industry provide another means by which knowledge flows up the arc Need a better understanding of these flows

Bayh-Dole Much angst in U.S. concerning how Bayh- Dole affects the mix of research occurring in the university. Much of this asks whether applied research is crowding out basic research. Both papers—and Donald Stokes’ work— remind us that such questions are overly simple and can lead to flawed analysis.