NIH Spends More Funding Dollars in Massachusetts

Boston_University_School_of_Education,_Boston_MAA recent MIT study found Massachusetts receives $351 in funding from the National Institutes of Health (NIH) compared to the $88 received by California. The Economist theorized that the high concentration of research institutions and ‘density of intellectuals’ in Massachusetts might be responsible for the discrepancy. Boston’s close-knit research community was another potential explanation.

Zintro expert Jyotsna Pandya, Ph.D., M.B.A., is a biomedical scientist. She shares her thoughts about the study’s results. “The reason [for the discrepancy] could be because of the phenomenon similar to the ‘Eclectic Paradigm’ described by John Dunning. According to Dunning, in addition to several other factors, investors are looking for location-specific advantages, which a company finds useful when combined with its own technological, marketing or management competencies.

Boston being a close-knit community and epicenter of research institutions is home to a high concentration of intellectual talent, and cutting-edge knowledge is being generated there. So, Boston and nearby areas have location-specific advantages. It makes sense for funding agencies like NIH to invest in areas where the costs and skills of human resources are easily available. An added advantage could be ‘knowledge-spillover’ (or externalities) which results from informal networking experiences.

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