Abstract
This paper examines the evolving relationship in science between the reward structure and entrepreneurial activity. We draw a distinction between two types of property rights. Basic science is fostered by a mechanism of reputational rights; technological advances-and the products and processes they produce - are fostered by a mechanism of proprietary rights. The two forms of property rights differ markedly in terms of the incentives they provide to share information in a timely fashion. We argue that because of a host of factors university-based scientists in certain fields are more likely to “privatize” knowledge today than in the past, trading reputational rights for proprietary rights. Events in the life sciences serve as a case study. A discussion of how privatization affects basic science follows. Although the evidence is far from complete, we conclude that the movement towards privatization may be more beneficial to product development and the scientists engaged in the activity than to basic science.
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Stephan, P.E., Levin, S.G. Property rights and entrepreneurship in science. Small Bus Econ 8, 177–188 (1996). https://doi.org/10.1007/BF00388646
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DOI: https://doi.org/10.1007/BF00388646