The dynamism of the U.S. economy has been fueled with continued advances in basic and applied science, conducted within both academic and industry boundaries. Underlying these critical macro (institutional and national policy) level factors are individual decisions made by the scientists themselves, as they choose among careers options that relate to what they do: basic or applied science; and where they do it: academia or industry. An understanding of these micro level factors is necessary to formulate an individual career strategy, to strengthen the competitiveness of both firms and universities and to design sound economic policies
This proposal examines the micro factors related to scientific labor markets that influence institutional and policy issues. It is based on the premise that societal goals related to achieving an optimal level of basic and applied research can be best achieved by creating the appropriate incentive structure that provides for an optimal matching of scientists to careers in basic and/or applied science, within academic or industry settings. The research develops new theoretical models that build on matching, human capital and endogenous growth theory, and new empirical evidence using panel data on baccalaureate and doctoral graduates in science and engineering fields from Scientists and Engineers Statistical Data System (SESTAT) developed by the NSF.
Intellectual merit: The research provides a new framework to identify roles of preference, ability, job characteristics, and institutional settings in career choices and the career trajectory of scientists by combining a matching model and a human capital model. The interaction of individual and institutional characteristics is explicitly entered into a model and empirically tested to understand its impacts on individual choices and performances as well as on the entire market or economy. The research also offers new perspectives and a new micro-foundation for endogenous economic growth models by emphasizing interactions and synergies between basic and applied science. In particular, the framework in the research helps identify sources of economic growth that the linear model has failed to recognize.
Broader impacts: The research informs existing and prospective scientists embarking on alternative careers and seeking collaborations with others or acquiring their own complementary skills. It informs universities and firms of sources of synergies between basic and applied science, and helps them design an incentive scheme and an institutional arrangement for attracting and retaining innovative personnel, as well as extracting the benefits of science.
