The Economic Contribution of University/Nonprofit Inventions in the United States: 1996 – 2017
Posted: 9 Mar 2021
Date Written: June 2, 2019
Using an updated, more complex, and most current input-output “I-O” approach to estimating the economic impact of academic licensing, assuming no detrimental product substitution effects, and summing that impact over 22 years of available data for academic U.S. AUTM Survey respondents,
total contribution of these academic licensors to industry gross output ranges from $723 billion to $1.7 trillion, in 2012 U.S. dollars;
contributions to gross domestic product (GDP) range from $374 billion to $865 billion, in 2012 U.S. dollars; and
estimates of the total number of person years of employment supported by these academic licensors’ licensed-product sales range from 2.676 million to 5.883 million over the 22-year period.
The high end of the range, in particular the $1.7 trillion contribution to gross output, $865 billion contribution to GDP, and providing support for 5.883 million jobs over the 22-year period, is based on an assumption of a 2% earned royalty rate on licensees’ product sales.
The low end of the range, in particular the $723 billion contribution to gross output, $374 billion contribution to GDP, and providing support for 2.676 million jobs over the 22-year period, is based on an assumption of a 5% earned royalty rate on licensees’ product sales.
A history of using the I-O approach to estimate the economic impact of academic licensing is provided, along with reasons for evolving to the current implementation.
An explanation of the I-O approach is provided, and the assumptions used and the potential effects of the assumptions on the estimates are discussed.
AUTM associated contributions to GDP, calculated using the I-O approach, are compared with U.S. GDP as a whole and with selected industry, as defined by North American Industry Classification System (NAICS) codes, contributions to GDP
Keywords: Economic Impact, University/Nonprofit Technology Transfer, Leontief Input Output
JEL Classification: O011,O032, O033, O034,O047
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