Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
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Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
Capturing Knowledge: The Location Decision of New PhDs Working in IndustryAlbert J. Sumell*, Paula E. Stephan** and James D. Adams***♦Youngstown Stale Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCe University**Andrew Young School of Policy Studies, Georgia State University and ***Department of Economics, Rensselaer Polytechnic InstituteRevised January 2006The authors wish to thank Grant Black for comments and the provision of certain MSA data. Financial support for this project was provided Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCby the Andrew w. Mellon Foundation, the Science and Engineering Workforce Project, National Bureau of Economic Research, and the National Science FounStephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
dation, grant number 0244268. We have benefited from the comments of participants at the REER conference, Georgia Institute of Technology. November 20Capturing Knowledge: The Location Decision of New PhDs Working in IndustryAlbert J. Sumell*, Paula E. Stephan** and James D. Adams***♦Youngstown Stale Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC. We have also benefited from comments of seminar participants at Universite Jean Monnet, St. Etienne, France. Universite Pierre Mendes France, Grenoble, France. Katholieke Universiteit Leuven. Leuven. Belgium, The European Forum, Robert Shuman Center, San Domenico, Italy, and the Universitat Pompeu Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC Fabra, Barcelona. Mary Beth Walker, Rene Belderbos, and Bill Amis made helpful comments on an earlier draft. The use of NSF data does not imply NSF eStephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
ndorsement of the research methods or conclusions contained in this chapter.https://khothuvien.cori!AbstractCapturing Knowledge: The Location DecisionCapturing Knowledge: The Location Decision of New PhDs Working in IndustryAlbert J. Sumell*, Paula E. Stephan** and James D. Adams***♦Youngstown Stale Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCnowledge is transferred from the university. This means of knowledge transfer is especially important in facilitating the movement of tacit knowledge. Despite the role that new PhDs play in this university-industry interface, we know very little about industrial placements. One dimension of ignoranc Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCe involves the extent to which students stay in close geographic proximity to where they received training. This paper examines factors that influenceStephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
the probability that a newly-trained PhD will remain “local” or stay in-state. Specifically, we measure how various individual, institutional and geoCapturing Knowledge: The Location Decision of New PhDs Working in IndustryAlbert J. Sumell*, Paula E. Stephan** and James D. Adams***♦Youngstown Stale Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCOur study focuses on PhDs who received their degree in one of ten fields of science and engineering during the period 1997-1999. Data for the study come from the Survey of Earned Doctorates, administered by Science Resources Statistics, National Science Foundation. We find that state and local areas Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC capture knowledge embodied in newly minted PhDs headed to industry, but not at an overwhelming rate. Certain states and metropolitan areas have an esStephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
pecially high attrition rate. We also find that in certain instances attrition is higher from top-rated PhD programs than from lower-rated programs anCapturing Knowledge: The Location Decision of New PhDs Working in IndustryAlbert J. Sumell*, Paula E. Stephan** and James D. Adams***♦Youngstown Stale Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCrelated to personal characteristics such as level of debt, previous work experience and visa status. Retention is also related to the local technological infrastructure.2Section I. IntroductionThe placement of newly-minted science and engineering PhDs provides one means by which knowledge is transfe Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCrred from the university to industry. 1 he placement of PhDs with industry can be esf>ecially important in facilitating the movement of tacit knowledgStephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
e. Despite tills role, we know very little about industrial placements. One dimension OÍ ignorance involves the extent to which students slay where trCapturing Knowledge: The Location Decision of New PhDs Working in IndustryAlbert J. Sumell*, Paula E. Stephan** and James D. Adams***♦Youngstown Stale Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCne ol several ways universities contribute to economic growth (Stephan Ct al. 2004). rhe mobility of the highly educated affects the extent to which knowledge created in universities is absorbed by the local economy.1 Having graduates work for neighboring firms strengthens the interface between the Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCuniversity and firms at the local or state level, and makes it easier for future graduates to find jobs with employers near the university. Moreover,Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
the availability of a highly-trained work force attracts new businesses to the local area.To the extent that students “fly the coop.” one rationale foCapturing Knowledge: The Location Decision of New PhDs Working in IndustryAlbert J. Sumell*, Paula E. Stephan** and James D. Adams***♦Youngstown Stale Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCto attract resources, herald the role they playin local economic development, mindlul of Stanford’s role in the I realion ol Silicon Valley, M.l. 1. and Harvard's role in Route 128, and Duke and the University of North Carolina’s role in lhe Research Triangle Park (Link, 1995)?’PhDs working in indus Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCtry dearly contribute more dun knowledge transfer. Stern (1999) discusses industrial scientists' interest in" Science” which, to continue Stern’s typoStephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
logy, leads to “Productivity” for the firm. The ability to engage in" Science" provides psychic rewards for rhe scientist. The productivity effects exCapturing Knowledge: The Location Decision of New PhDs Working in IndustryAlbert J. Sumell*, Paula E. Stephan** and James D. Adams***♦Youngstown Stale Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCy (Stern 1999, p. 11). We focus on die knowledgetransfer role here because of our interest in the interface between industry and academe and die geographical dimensions of this interface.2 There is a culture in universities of expecting PhDs going into academe to seek the hest available positions, r Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCegardless of locale. Attitudes tow ards industrial placements are less clear-cut. Stephan and1The migration behavior of the highly educated thus not oStephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
nly has long-term implications for the economic health of a region, but also may affect the amount policymakers are willing to invest in higher educatCapturing Knowledge: The Location Decision of New PhDs Working in IndustryAlbert J. Sumell*, Paula E. Stephan** and James D. Adams***♦Youngstown Stale Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCs essential that private institutions demonstrate a local economic impact. Nonetheless, private institutions receive a number of benefits from the state and local area, not the least of which is tax-exempt status.This is not to say that universities are solely focused on keeping their graduates clos Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCe at hand. Placements outside the local area are an indication of success, signaling that the university has the necessary connections and reputationStephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
to warrant more distant placements.3 Moreover, strong industrial placements, regardless of whether or not they are local, can enhance future funding oCapturing Knowledge: The Location Decision of New PhDs Working in IndustryAlbert J. Sumell*, Paula E. Stephan** and James D. Adams***♦Youngstown Stale Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCine factors that influence the probability that a highly skilled worker will remain ‘local’ or stay in the state. Specifically, we measure how various individual, institutional, and geographic attributes affect the probability that new PhDs going to industry stay in the metropolitan area or state wh Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCere they trained. Our study focuses on PhDs who received their degree in one of ten fields in science and engineering (S&E) during the period 1997-199Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
9. Data come from the Survey of Earned Doctorates, administered by Science Resources Statistics National Science Foundation.Black (1999) find that in Capturing Knowledge: The Location Decision of New PhDs Working in IndustryAlbert J. Sumell*, Paula E. Stephan** and James D. Adams***♦Youngstown Stale Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCindustry, when looking for academic consultants, is likely to use local talent for applied research, but focuses on gening the "best" regardless of distance when basic research is involved.2The paper proceeds as follows. Section II provides a discussion of (he role new PhDs play in knowledge transfe Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCr. Section III briefly discusses the role of geographic proximity in promoting knowledge transfer. Section IV offers a conceptual model of the individStephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
ual decision to migrate. Section V discusses the data used for this study and provides some descriptive statistics on the migration of industrial PhDsCapturing Knowledge: The Location Decision of New PhDs Working in IndustryAlbert J. Sumell*, Paula E. Stephan** and James D. Adams***♦Youngstown Stale Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCom other regions. Section VI gives the results from our empirical analyses and discusses the policy implications. Section VII concludes by summarizing and discussing the key findings.Section II: The Role of New PhDs in Knowledge TransferThe transmission mechanism by which knowledge flows from univer Stephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOCsities to firms is varied, involving formal means, such as publications, as well as less formal mechanisms, such as discussions between faculty and inStephan-Sumell-Adams_Capturing.Knowledge.NBER-2-06.DOC
dustrial scientists at professional meetings. Graduate students are one component of the formal means by which knowledge is transferred. Much of graduGọi ngay
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