The Impact of Intellectual Property Rights on Commercialization of University Research

One of the foundational assumptions of patent law is that imbuing inventions with intellectual property rights (IPR) is necessary to bring forth innovation. We test this foundational assumption by examining the impact of IPR on commercialization of university research. Using the full set of US public firms who patented and conducted research over the period 1976 to 2007, we find little evidence that university research protected by IPR had higher commercialization relative to university research in the public domain. Indeed, if anything, university research in the public domain appears to have slightly greater commercialization