University regulations, regional development and technology transfer: The case of Brazil

Abstract

In this study, we explore how the interplay of the quality of university regulations and regional economic development impacts new patent applications and licensing agreements in the context of Brazilian universities. To do that, we rely on data from a recent survey conducted by the Brazilian Innovation and Technology Transfer Managers National Forum (FORTEC Innovation Survey). Employing negative binomial models, we find that the quality of technology-transfer-related regulations has a positive impact on both patenting and licensing activities, whereas the mere existence of those regulations has no (or only little) effect on technology transfer outcomes. This suggests that the presence of regulations per se may not provide (i) the incentive necessary to outweighing the opportunity costs and motivate academics to engage in technology transfer; and/or (ii) the necessary level of clarity, flexibility and consistency to mitigate uncertainties and transaction costs for both firms and university inventors. We also find a negative relationship between regional economic development and patenting outcomes. In contrast, we determine that universities located in regions with higher levels of economic and innovative activity generate more licensing agreements. Finally, our results suggest that the marginal effects of the quality of both IP protection and licensing regulations are higher in more developed regions.