Productivity Differences in Fundamental Life-Sciences Discovery

Abstract

Fundamental knowledge in the life sciences is generally discovered in universities and hospitals, and has profound implications for welfare by its effect on clinical medicine, new medical innovations, and subsequent scientific knowledge. To assess whether the institution where research is produced causally increases the productivity of scientists, we employ a scientist-mover design and find that 40−50% of the variation in research productivity between institutions is causally attributable to institutions. A significant share, 20−25% of the institutional effect reflects star researchers, with a small role for research expenditures. Institution effects are highly localized– a scientist’s productivity is unaffected by the productivity of scientists outside the institution but in the same city. The magnitude of these effects has not decreased in the wake of technologies that make cross-institutional collaborations easier.