Bridging the innovation gap through funding : the case of MIT Deshpande Center

The idea of gap-funding program, in which academic scientists are given research funding for developing proof-of-concept and prototype, has recently attracted attention as a policy measure of commercializing academic science. While the earliest programs of its kind were initiated about a decade ago, we still lack empirical evidence on its effectiveness. Using the detailed dataset of the gap-funding program at MIT, the Deshpande Center for Technological Innovation, I observe two mechanisms that gap-funding program can facilitate academic commercialization. First, by providing research funding that allows academic freedom of problem selection and mode of disclosure, gap-funding program attracts applications from junior faculty members with commercialization interests. Second, providing research funding for prototype development and networking opportunities with industry practitioners increases the likelihood that an academic invention results in start-up founding. Moreover, its positive impact is larger for inventions without intellectual property rights protection, partly because of the reduced level of uncertainty after prototype development. However, awarding gap-funding does not increase the likelihood of technology licensing to incumbent firms. Together, I argue that gap-funding program can be a useful policy toolkit for regional economic development by fostering academic entrepreneurship.

Department dc:contributor.department

Massachusetts Institute of Technology. Engineering Systems Division

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2013

Author dc:creator

• Kwon, Ohchan

Advisor dc:contributor.advisor

• Charles L. Cooney and Fiona E. Murray.

• Engineering Systems Division.
• Technology and Policy Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/85920

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/85920