The real options investment theory shows that greater uncertainty about market revenues reduces current R&D investment by increasing the value of waiting. This paper presents empirical evidence that patent protection mitigates the effect market uncertainty on R&D investment.

The viability of modern open science norms and practices depend on public disclosure of new knowledge, methods, and materials. Aggregate data from the OECD show a broad shift in the institutional financing structure that supports academic research from public to private sponsorship. This paper...