Cost-Saving Insights: Uncovering Economies of Scale and Scope in Spanish University Innovation

ABSTRACT

This study conducts an empirical investigation into the efficiencies of scale and scope in generating research and technology transfer outcomes within Spains public university system. Employing a flexible fixed-cost quadratic model, we establish a correlation between overall university research and development expenditures, technology transfer office (TTO) budgets, as well as other research and TTO results. This correlation facilitates the computation of ray economies of scale, specific economies of scale, and economies of scope. Our discoveries reveal that economies of scale, whether in terms of rays or research, have the potential to reduce mean annual costs by up to 100%. Depending on the products nature, the economies of scale induced by technology transfer could hold a value of up to 150% of the current average research and development budget. Furthermore, we identify cost subadditivity as a positive constraint, indicative of the existence of economies of scale.

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