Events

Mr. Hongyuan Xia
Ph.D. candidate in Economics
Cornell University

Firms rely on academic science and actively participate in the production of scientific knowledge. However, the impact of industry on academic science remains unclear. This study utilizes the site selection decisions of “Million Dollar Plants” (MDPs) to estimate the causal effects of industry on academic science. I compare the responses of scientists in counties that successfully attracted MDPs (“winners”) with those in counties that narrowly missed out on these MDPs (“runners-up”). The arrival of an MDP in a “winner” county shifts research of local scientists toward topics relevant to the firm, but not at the expense of either the quantity or quality of their work. This shift in research direction is not primarily driven by direct funding or collaboration. Instead, it occurs immediately after the announcement but before the physical establishment of these plants and is more likely to affect scientists without prior experience in commercialization. These findings indicate that scientists are refocusing their attention toward more applied and firm-relevant research.