11. Reconsidering the Bayh-Dole Act and the Current University Technology Licensing Regime
- Author:
- Martin Kenney and Donald Patton
- Publication Date:
- 05-2008
- Content Type:
- Working Paper
- Institution:
- Berkeley Roundtable on the International Economy
- Abstract:
- The Bayh-Dole Act of 1980 has been hailed by policy-makers and scholars as a critical policy innovation for ensuring the commercialization of inventions resulting from results of federally-funded research. This paper suggests that the current implementation of Bayh-Dole through university ownership of all researchers' inventions is not an optimal system in terms of economic efficiency and social interests regarding the rapid commercialization of technology. The current regime, within which the university owns researcher inventions, is plagued by ineffective incentives, information asymmetries, and contradictory goals for the university, the inventors, potential licensees, and university technology licensing offices (TLOs). These structural uncertainties lead to licensing delays, misaligned incentives among parties, and delays in the flow of scientific information and the materials necessary for scientific progress. For the very best TLOs these difficulties can be overcome, but for the average TLO this misalignment of incentives creates suboptimal outcomes in terms of technology transfer. The institutional arrangements within which TLOs are embedded are so perverse that it has encouraged a number of them to become income maximizers and operate in a manner similar to what pejoratively have been termed patent “trolls.”
- Topic:
- Economics, Education, Government, and Science and Technology