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α: calibrated so average coauthorship-adjusted count equals average raw count
This study tests the hypothesis that the research and development activity that is taking place in medical schools will influence the research and development activity that is occurring in hospitals, and vice-versa. To do so, we present a game in which the flow (short run) and level (long run) of research and development activities in medical schools determines the flow and level of research and development endeavors in hospitals (and vice-versa). The division of labor that occurs in our game entails the specialization in basic research by medical schools that leads to application and refinement of the results from that work by hospital practitioners. In turn, the refinements made by hospital practitioners informs further medical school research. Empirical support for our hypothesis is provided using data from the Association of American Medical Colleges, the Association for Healthcare Philanthropy and the National Science Foundation.