Does Scientific Innovation Lead to Entrepreneurship? A Comparison of Academic and Industry Sectors

This paper contributes to the literature on innovation and entrepreneurship by providing sector-specific definitions of entrepreneurial activity and linking these measures to innovation. Using three waves of the Survey of Doctorate Recipients, the analysis begins by investigating the demographic, employer, and productivity characteristics associated with publications and patents in both sectors by US Ph.D. scientists. Descriptive regressions show the factors associated with patenting by US scientists are very similar across the academic and industry sectors. I also find that innovation, measured by patents granted and patents commercialized, is positively associated with academic entrepreneurship measured by having a second job. Similarly, patents commercialized are positively correlated with incorporated self-employment and patents granted are positively associated with employment in a new business in the industry sector. After controlling for individual fixed-effects, these relationships change. The commercialization of patents has a positive causal effect on academic entrepreneurship measured by having a second job, whereas patents granted have n