The Economic Effect of Jena University on the Regional Economy – Knowledge Transfer and Knowledge Capital Reassessed
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Master programme in Economic Growth, Innovation and Spatial Dynamics The Economic Effect of Jena University on the Regional Economy – Knowledge Transfer and Knowledge Capital Reassessed Maximilian Weis [email protected] Abstract: Universities are essential components for regional economic growth; through their research, teaching and entrepreneurial activities, they contribute to the regional economy in terms of knowledge, human capital and firm formation. This thesis not just accounts for and quantifies the overall economic effect of Jena University on the regional economy, but also reveals and illustrates exemplarily how the effect emerges on the micro-level. Therefore, patent networks and joint patents act as a proxy for the economic impact. First, the macro-economic effect of Jena University´s research and teaching activities is quantified by estimating a knowledge capital stock. Second, based on a patent data analysis covering patenting activity since 1999, knowledge transfer from the university to the regional economy is analyzed. The findings suggest that Jena University has an economic impact on the regional economy in terms of knowledge creation and transfer, but also in terms of the effects from human and research capital generated at the university. When quantifying the economic effect of Jena University on the regional economy, it is argued that an effect of 459.9 mil Euro in terms of knowledge capital is operative in the region in 2013, which corresponds to 1.2 percent of Jena region´s domestic product. This economic impact is reflected in Jena University´s predominately regional cooperation and research partners, its technological focus that reflects the regional clusters and its role as promoter of entrepreneurship. Key words: university, regional economics, academic patenting, knowledge capital, knowledge transfer EKHM51 Master thesis (15 credits ECTS) July 2016 Supervisor: Jonas Ljungberg and Johan Miörner Examiner: Faustine Perrin Word Count: 14,951 Acknowledgement While this completed thesis bears a single name, the process that led to its completion has been the effort and contribution of many people. Therefore, I want to express my appreciation to certain individuals. First of all, I would like to thank both of my supervisors Professor Jonas Ljungberg and Johan Miörner for their precious feedback and comments, but also for keeping me motivated to work on this thesis during the full-time internship. Next, I would like to thank DIW Econ Berlin for providing the data applied in this thesis. Without this contribution, the present thesis would not have been able to come up with an as comprehensive empirical body and findings as it does now. In particular, I want to express my appreciation to Dr. Anselm Mattes, who guided me through this project during the internship at DIW Econ Berlin. Moreover, I would also like to thank Michael Arnold for his advice in dealing with the relational databases and SQL. Last, but not least, I would like to thank all the people who I was accompanied by during the writing process. All the lunch sessions, afternoon coffees and diverse disturbances made this journey a lot more enjoyable. Maximilian Weis Berlin July 2016 i Content Acknowledgement i List of Figures iv List of Tables v 1. Introduction ................................................................................................................... 1 1.1. Objective of the Study .............................................................................................. 2 1.2. Method and Sample ................................................................................................. 3 1.3. Outline of the Thesis ................................................................................................ 3 1.4. Supporting Information ............................................................................................ 3 2. Theory and Context ...................................................................................................... 4 2.1. Knowledge and the Regional Economy ................................................................... 4 2.2. Tasks of Universities ................................................................................................ 4 2.3. Regional Effect of Universities ................................................................................ 5 2.4. Jena University ......................................................................................................... 8 2.5. Jena Region ............................................................................................................ 10 3. Knowledge Capital Stock and its Effect .................................................................... 11 3.1. Methodology and Assumptions.............................................................................. 12 3.1.1. Parameters....................................................................................................... 12 3.1.2. Regional Impact .............................................................................................. 13 3.2. Calculation of the Knowledge Capital Stock ......................................................... 15 4. Results and Discussion: Quantifying the Economic Effect ..................................... 17 4.1. Knowledge Capital Stock ....................................................................................... 17 4.2. Regional Growth Effects ........................................................................................ 18 4.3. Bridging the Gap: From Macro- to Micro-Perspective .......................................... 20 5. Patenting Activities and Research Cooperation ....................................................... 21 5.1. Patents in the Literature ......................................................................................... 21 5.1.1. Patents as Indicator for Knowledge Transfer .................................................. 21 5.1.2. Measuring and Analysing Academic Patent Activity ..................................... 23 5.1.3. Approaches to Identify University-invented Patents ...................................... 24 5.2. Data ........................................................................................................................ 25 5.3. Methodology .......................................................................................................... 26 5.3.1. Identification of University-owned Patents .................................................... 26 5.3.2. Identification of University-invented Patents ................................................. 27 ii 6. Results and Discussion: Patents and Knowledge Transfer ..................................... 30 6.1. Patterns and Intensity ............................................................................................. 30 6.2. Regional Linkages .................................................................................................. 32 6.3. Technology Fields .................................................................................................. 36 6.4. Jena University – An Entrepreneurial University? ................................................ 37 7. Conclusion .................................................................................................................... 40 7.1. Summary ................................................................................................................ 40 7.2. Limitation of the Study and Further Research ....................................................... 41 7.3. Concluding Remarks .............................................................................................. 42 Bibliography ........................................................................................................................... 43 Appendices .............................................................................................................................. 53 Appendix A ........................................................................................................................... 53 Appendix B ........................................................................................................................... 54 Appendix C ........................................................................................................................... 56 Appendix D ........................................................................................................................... 57 List of Figures Figure 1: Research and Cooperation in the Different Research Areas at Jena University 8 Figure 2: Display of a 50km-range around Jena 14 Figure 3: Allocation of Economic Effect to Geographical Scales (regional, transregional, abroad) 18 Figure 4: Knowledge Capital Stock and Regional Growth Effects in 2013 (in 2013 Euro) 19 Figure 5: Network Diagram of Joint Patent Applications 30 Figure 6: Allocation of Research Institutes at Beutenberg Campus Jena 35 Figure 7: Joint Patent Applications as Classified by IPC Subclasses 36 iv List of Tables Table 1: Jena University’s Contribution to Thuringia´s Scientific Landscape in 2013 9 Table 2: Expenditures and Capital Stocks from 2000 - 2013 (in 2013 Euros) 17 Table 3: Jena University’s Cooperation Partners in Business and Research 32 v 1. Introduction The economic effect of universities on the surrounding regional economy has been object to a magnitude of research (e.g. Jaffe, 1989; Acs et al. 1992, 2002; Feldman, 1994; Anselin